Page:United States Statutes at Large Volume 72 Part 1.djvu/883

 72 S T A T. ]

841

PUBLIC LAW 85-748-AUG. 25, 1958

of under such section 11, shall not exceed the aggregate sum of $5,000,000 at any one time. "(b) The interest rate shall be as provided in section 3(b)(2) of this title and the borrower shall not be required to pay any additional charges for insurance of the loan, but the Secretary may require the payment of such appraisal and delinquency charges as he deems proper. "(c) The amount of the principal obligations on loans made under item (a)(4) of this section shall be included in computing the aggregate amount of the principal obligations which may be insured in any one fiscal year, as provided in section 12(b) of this title, at the time such loans are made. The amount of the principal obligations on any other loans made by the Secretary and insured under this section shall not be included in computing said aggregate amount. " (d) Loans made from funds advanced by lenders other than the United States may be insured by the Secretary upon terms and conditions consistent with the provisions of this section. Loans miide or insured under this section shall be subject to all the provisions of this title except as otherwise provided in this section. "(e) Any loan heretofore or hereafter made or insured under this title may be converted to an insured loan under this section at the discretion of the Secretary, and any expenses in connection with such conversion may be paid out of funds available for administrative expenses. "(f) The Secretary is further authorized to sell any loan heretofore or hereafter made or insured under this title without insurance thereof upon the written consent of the borrower*, or without such consent when the borrower has failed to comply with his agreement to refinance the indebtedness at the request of the Secretary. Such loan shall be sold at the full amount of the unpaid balance thereof, and upon such sale the Secretary is authorized to assign the security instrument and evidence of debt in such manner that the United States shall have no further right or obligation with respect to the loan." (b) The third sentence of section 13(b) is amended to read: "Such notes shall have such maturities as thie Secretary may determine with the approval of the Secretary of the Treasury, and shall bear interest at a rate fixed by the Secretary of the Treasury, taking into consideration the current average market yields of outstanding, marketable obligations of the United States having maturities comparable to the loans made or insured by the Secretary." (c) Section 15(a) is amended to add the following sentence: "Section 5200 of the Revised Statutes (12 U.S.C. 84) is herebyamended to add a new paragraph bearing the next number after that of the last paragraph of the present section 5200 of the Revised Statutes and reading as follows: 'Obligations insured by the Secretary of Agriculture pursuant to the Bankhead-Jones F a r m Tenant Act, as amended, or the Act of August 28, 1937, as amended (relating to the conservation of water resources), shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus.' SEC. 2. The Act entitled "An Act to promote conservation in the arid and semiarid areas of the United States by aiding in the development of facilities for water storage and utilization, and for other purposes", approved August 28, 1937, as amended (16 U.S.C. 590r590x-3), is further amended by inserting at the end of said Act the following new section: "SEC. 11. (a) The Secretary of Agriculture is authorized: " (1) To make loans complying with the requirements of this Act for the purpose of insuring and selling such loans to lenders other

60 Stat. 1072. 7 USC 1005c.

60 Stat. 1079.

7 USC seqr. 16 U 590X-3.

1000

et

C 590r-

50 Stat. 869; 68 Stat. 734.

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