Page:United States Statutes at Large Volume 59 Part 1.djvu/647

 59 STAT.] 79TH CONG., 18T SESS.-CH. 588 -DEC. 28, 1945 pursuing a gainful occupation, or for the cost of acquiring for such purpose land, buildings, supplies, equipment, machinery, tools, inven- tory, stock in trade, or for the cost of the construction, repair, alter- ation or improvement of any realty or personalty used for such purpose, or to provide the funds needed for working capital, is auto- matically guaranteed if made pursuant to the provisions of this title, including the following: "(1) That the proceeds of such loan will be used for any of the specified purposes in connection with bona fide pursuit of gainful occupation by the veteran; "(2) That such property will be useful in and reasonably necessary for the efficient and successful pursuit of such business or occupation; "(3) That the ability and experience of the veteran, and the conditions under which he proposes to pursue such business or occupation, are such that there is a reasonable likelihood that he will be successful in the pursuit of such business or occupation; and "(4) That the purchase price paid or to be paid by the veteran for such property, or the cost of such construction, alterations, or improvements, does not exceed the reasonable value thereof as determined by proper appraisal made by an appraiser designated by the Administrator. "R EGULATIONS "SEC. 504. The Administrator is authorized to promulgate such rules and regulations not inconsistent with this title, as amended, as are necessary and appropriate for carrying out the provisions of this title, and may delegate to subordinate employees authority to issue certificates, or other evidence, of guaranty of loans guaranteed under the provisions of this title, and to exercise other administrative functions hereunder. "SECONDARY LOANS "SEC. 505. (a) In any case wherein a principal loan, for an of the purposes stated in section 501, 502, or 503, is approved by a Federal agency to be made or guaranteed or insured by it pursuant to applic- able law and regulations, and the veteran is in need of a second loan to cover the remainder of the purchase price or cost, or a part thereof, the Administrator, subject otherwise to the provisions of this title, may guarantee the full amount of the second loan: Provided, That such second loan shall not exceed 20 per centum of the purchase price or cost: And provided further, That regulations to be promulgated jointly by the Administrator and the head of such agency may pro- vide for servicing of both loans by such agency and for refinancing of the principal loan to include any unpaid portion of the secondary loan with accrued interest, if any, after the curtailment thereon equals twice the amount of the secondary loan. "(b) Any person who is a veteran eligible for the benefits of this title, as provided in section 500 hereof, and who is found by the Secretary of Agriculture, by reason of his ability and experience, including training as a vocational trainee, to be likely to carry out successfully undertakings required of him under a loan which may be made under the Bankhead-Jones Farm Tenant Act, shall be eligible for the benefits of such Act to the same extent as if he were a farm tenant. 629 Requirements. Guaranty provions. Limitation. Servicing and re- financing. Eligibility under BankheadJones Farm Tenant Act. I0 Stat. 6 7..C.. 1000- 1oa; 8upp. IV. i 11. Asce, p. 161.

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