Page:United States Statutes at Large Volume 72 Part 1.djvu/882

 840

PUBLIC LAW 8 5 - 7 4 8 - A U G. 25, 1958

[72 S T A T,

Public Law 85-748 August 25, 1958 [S.3333]

Bankhead-Jones Farm Tenant Act, amendment. Farm loans, insurance. 50 Stat. 522.

Post,

p. 842.

AN ACT To facilitate the insr.rance of loans uiiflcr title I of the Bankhead-Jones Farm Tenant Act, as amended, and the Act of August 28, 1937, as amended (relating to the conservation of water resources), and for other purposes.

Be it enacted by the Senate and House of Representativefi of the ignited Statef< of Ameiica in Congre.sH asHemhled^ That, title I of the Bankhead-Jones Farm Tenant Act, as amended (7 U.S.C. 1000 and the followinjr), is furtlier amended as follows: (a) The following new section 18 is added: "SP:C. 18. (a) The Secretary of Agriculture is authorized: "(1) To make loans complying; with the requirements of title I of this Act for the purpose of insuring and selling such loans to lenders other than the Ignited States. Any security instrument taken in connection with such loan shall create a lien running to the Ignited States, notwithstanding the fact that the note may be held by such lender or his assignee; "(2) To insure and make commitments to insure such loans, which, when endorsed for insurance, shall be covered by the insurance provisions of this title; "(8) To sell such loans at an annual charge, at a rate to be determined by the Secretary, of not less than 1 per centum of the unpaid principal obligation from time to time outstanding on the loan, such charge to be retained by the Secretary out of interest payments made by the borrower: Provided, That the total of the rate of such charge plus the rate of return to the holder of the note shall not exceed the interest rate specified in the note. Out of the charges so collected an amount not in excess of one-half of 1 per centum of such unpaid principal obligations shall be deposited in and become a part of the fund. The remainder of such charges collected shall be deposited in the Treasury to the credit of the Secretary and may be transferred annually to the administrative expense account of the P'armers Home Administration and become merged therewith. Each such loan shall be sold at the full amount of the unpaid balance thereof at the time of sale, but no loan shall be sold if such balance exceeds 90 per centum of the amount certified by the county committee to be the value of the farm, less any prior lien indebtedness at the time the loan was made or upon a determination of such fact by the Secretary at the time of sale; "(4) To make loans out of moneys in the fund for the purpose of insuring and selling the same under this section: Provided, however, That no loan made under this item (4) shall 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: And 'provided further, That no loan shall be made under this item (4) unless the Secretary has reasonable assurance that it can be sold without undue delay. The Secretary may, at his discretion, utilize the provisions of subsections 13(b) and 18 (c) of this title to borrow from the Secretary of the Treasury an additional sum not in excess of $5,000,000 for deposit in the fund for this purpose and said subsections are hereby extended to cover such borrowings for the purpose of making loans under this item (4) and under item (4) of subsection 11 (a) of the Act of August 28, 1987, as amended (relating to the conservation of water resources). The amount of the principal obligations on loans made under this item (4) and not disposed of under this section, plus the amount of the principal obligations on loans made out of moneys in the fund under said item (4) of subsection 11 (a) of the Act of August 28, 1987, as amended, and not disposed

�