Page:United States Statutes at Large Volume 70.djvu/858

 802

60 Stat. 1076. 7 USC 100 5b(b). 60 Stat. 1076. 7 USC 1005b(e).

69 Stat. 553. 7 USC 1006c.

60 Stat. 1072. 7 USC 1007.

B o r r o w e r s and terms.

Restrictions.

PUBLIC LAW 878-AUG. 1, 1956

[70

STAT.

family-type farm-management units, as determined by the Secretary, in the county, parish, or locality where the farm is located." (f) Section 12(b) is amended by striking the figure "$100,000,000" and inserting in lieu thereof the figure "$125,000,000". (g) Section 12(e) is amended by striking from the last sentence of item (2) the words "to carry out the provisions of this title, relating to mortgage insurance" and by inserting in lieu thereof the words "of the Farmers Home Administration and may be transferred annually to that administrative expense account and become merged therewith". (h) Section 16(a) is amended by inserting in the first sentence thereof before the word "mortgages" the words "or second" and by adding the following sentence at the end of said subsection: "I.K)ans insured under this section shall not be in excess of 90 per centum of the amount certified by the county committee to be the value of the farm, less any prior lien indebtedness." (i) The following new section 17 is added: "SEC. 17. Until June 30, 1959, the purposes for which loans may be made or insured under this title shall include the advance of funds for refinancing secured or unsecured indebtedness of eligible farmers on farms of not more than family size who are presently unable to meet the terms and conditions of their outstanding indebtedness and are unable to refinance such debts with commercial banks, cooperative lending agencies, or other responsible credit sources at rates and terms which they could reasonably be expected to fulfill. No such loans shall be made to an applicant whose total indebtedness is in excess of the amount certified by the county committee to be the value of the real estate and the reasonable value of the applicant's livestock and farm equipment, unless the aggregate of the outstanding indebtedness shall be adjusted so as to be within such values. The total amount of loans insured in any one fiscal year under this section shall not exceed $50,000,000.'' SEC. 6. Title II of the Bankhead-Jones F a r m Tenant Act, as amended, is further amended by striking the words "Production and Subsistence Loans" in the title and inserting in lieu thereof the words "Operating Loans", and by the amendment of section 21 to read as follows: "SEC. 21. (a) The Secretary may make loans to farmers and stockmen who are operators of family-type farms and who are citizens of the United States for the purchase of livestock, seed, feed, fertilizer, farm equipment, supplies, and other farm needs, the cost of reorganizing the farming enterprise or changing farming practices to accomplish more diversified or more profitable farming operations, the refinancing of existing indebtedness, and for family subsistence: Provided, however, That loans may be made to operators who are bona fide farmers who have historically resided on farms and depended on farm income for their livelihood, and who are conducting substantial farming operations on units which are less than family-type units, if the units are of sufficient size to produce income which, together with income from other sources, including pensions in the case of disabled veterans, will enable them to meet living and operating expenses and the amounts due on their loans. "(b) No loan shall be made under this section for the purchase or leasing of land or for the carrying on of any land-purchase or landleasing program. No loan may be made to any one borrower under this section which would cause the total principal amount outstanding to exceed $10,000: Provided, however, That an amount not to exceed 10 per centum of the sum made available by annual appropriation for loans under this title may be used for making loans to borrowers,

�