Page:United States Statutes at Large Volume 68 Part 1.djvu/767

 68 S T A T. ]

PUBLIC LAW 597-AUG. 17, 1954

(2) By deleting the phrase "in the arid and semiarid areas of the United States" in the last sentence of the first section and inserting in lieu thereof the following: "in the United States, including the Territories of Alaska and Hawaii, and Puerto Rico and the Virgin Islands". (3) By deleting the phrase "in the said areas" wherever it appears in section 2. (4) By inserting at the end of said Act the following new sections: "SEC. 8. No aid shall be extended under the provisions of this Act which wdll result in any individual, partnership, trust, estate, corporation engaged in farming, or unincorporated association becoming indebted to the United States in a principal amount outstanding at any time in excess of $25,000, or which will result in any other corporation or agency becoming indebted in a principal amount outstanding at any time in excess of $250,000, or which after January 1, 1954, shall provide for construction work, other than technical assistance, being done by the Secretary. "SEC. 9. The Secretary of Agriculture is authorized, upon such terms and conditions as he shall prescribe, to make loans for the purposes of financing the improvement of farm land by soil or water conserving or drainage facilities, structures or practices, improvement of soil fertility, establishment of improved permanent pasture, sustained yield afforestation or reforestation, or other erosion preventatives, and such other related measures as may be determined from time to time by the Secretary. "SEC. 10. (a) I n order to establish a program of insuring loans made by lenders other than the United States which comply with the requirements of this Act and are in furtherance of its objectives, the Secretary of Agriculture— "(1) is authorized to insure and make commitments to insure such loans on such terms and conditions as he may prescribe; "(2) is authorized to include in insurance contracts agreements to service loans insured thereunder and to purchase such loans which are not in default on such terms and conditions as he may prescribe; "(3) shall utilize the insurance fund (hereinafter called the Fund) created by section 11 of the Bankhead-Jones Farm Tenant Act, as amended, and the provisions of sections 13(b) and (c) of the said Bankhead-Jones Farm Tenant Act to discharge obligations under insurance contracts made pursuant to this Act; "(4) shall require the borrower to pay such insurance charges as he deems proper, taking into account the amount of the loan and prior liens: Provided, however, That the charge shall be payable in advance at intervals of one year or less and shall be at a rate equal to at least 1 per centum per annum of the principal outstanding on the loan insured on the due date of the charge; "(5) may utilize the Fund to pay taxes, insurance, prior liens, and other expenses to protect the security for loans which have been insured hereunder, and to acquire such security property at foreclosure sale or otherwise; "(6) shall liquidate acquired security property in such manner and on such terms as he deems will best preserve the F u n d; and "(7) shall have authority to make such rules and regulations and such delegations of authority as he deems appropriate in order to carry out the provisions of this Act. "(b) Notes and the security therefor acquired by the Secretary under insurance contracts shall become a part of the Fund. The notes may be held in the Fund and collected according to their terms or

735

16 USC 590s. Limitations.

Farm l and improvement.

Lo an s by other than U, S. Insurance program.

60 Stat. 1072. 7 USC 1005a, 1005c.

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