Page:United States Statutes at Large Volume 62 Part 1.djvu/294

 PUBLIC LAWS-CH. 334-MAY 25, 1948 Restriction. Floods, etc. Financial assistance. Time limitation on loans. Ante, p. 163. Loan for construc- tion of industrial facil- ities. Participation in loans, limitation. Total amount of loans, etc. Podt, p. 1209. Put, p. 1101. Restriction on pay- ment ffee. subdivisions of States, and (C) public corporations, boards, and commissions: Provided, That no such purchase or loan shall be made for payment of ordinary governmental or nonproject operating expenses as distinguished from purchases and loans to aid in financing specific public projects. "(4) To make such loans as it may determine to be necessary or appropriate because of floods or other catastrophes. "(b) The powers granted in section 4 (a) of this Act shall be subject to the following restrictions and limitations: "(1) No financial assistance shall be extended pursuant to paragraphs (1), (2), and (3) of subsection (a) of this section, unless the financial assistance applied for is not otherwise avail- able on reasonable terms. All securities and obligations pur- chased and all loans made under paragraphs (1), (2), and (3) of subsection (a) of this section shall be of such sound value or so secured as reasonably to assure retirement or repayment and such loans may be made either directly or in cooperation with banks or other lending institutions through agreements to participate or by the purchase of participations, or otherwise. "(2) No loan, including renewals or extensions thereof, may be made under sections 4 (a) (1), (2), and (4) for a period or periods exceeding ten years and no securities or obligations matur- ing more than ten years from date of purchase by the Corporation may be purchased thereunder: Provided, That the foregoing restriction on maturities shall not apply to securities or obligations received by the Corporation as a claimant in bankruptcy or equi- table reorganization or as a creditor in proceedings under section 20b of the Interstate Commerce Act, as amended: Provided further, That any loan made or securities and obligations pur- chased prior to July 1, 1947, may in aid of orderly liquidation thereof or the interest of national security, be renewed or the maturity extended for such period not in excess of ten years and upon such terms as the Corporation may determine: Provided further, That any loan made under section 4 (a) (1) for the purpose of constructing industrial facilities may have a maturity of ten years plus such additional period as is estimated may be required to complete such construction. The Corporation may, in carrying out the provisions of subsection 4 (a) (3), purchase securities and obligations, or make loans, including renewals or extensions thereof, with maturity dates not in excess of forty years, as the Corporation may determine. "(3) In agreements to participate in loans, wherein the Corpo- ration's disbursements are deferred, such participations by the Corporation shall be limited to 70 per centum of the balance of the loan outstanding at the time of the disbursement, in those cases where the total amount borrowed is $100,000 or less, and shall be limited to 60 per centum of the balance outstanding at the time of disbursement, in those cases where the total amount borrowed is over $100,000. "(c) The total amount of investments, loans, purchases, and com- mitments made subsequent to June 30, 1947, pursuant to section 4 shall not exceed $1,500,000,000 outstanding at any one time: Provided,That the aggregate amount outstanding at any one time shall not exceed (1) under subsection (a) (4) $25,000,000, (2) for construction purposes under subsection (a) (3) $200,000,000, and (3) under the last two sentences of subsection (a) (2) $15,000,000. "(d) No fee or commission shall be paid by any applicant for finan- cial assistance under the provisions of this Act in connection with any such application, and any agreement to pay or payment of any such fee or commission shall be unlawful. [62 STAT.

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