the comma in the second line thereof the following: "excepting that with the approval of the Federal Farm Loan Board loans to any one borrower may be in an amount not to exceed a maximum of $50,000."

SEC. 15. Section 15 of the Federal farm loan act, as amended, is amended by adding at the end thereof a new paragraph to read as follows:

"That whenever it shall appear to the Federal Farm Loan Board that applicants for farm loans can not procure loans through national farm loan associations or through agents, because of peculiar local conditions, said board may, in its discretion, authorize Federal land banks to make loans direct to borrowers. Such loans shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations or agents so far as such conditions and restrictions are applicable."

SEC. 16. This act shall not become effective until all of the Federal land banks shall have filed with the Secretary of the Treasury their consent in writing, duly authorized by their respective boards of directors, to be bound by the provisions thereof.

SEC. 17. The Federal farm loan act, as amended, so far as the same may be applicable and not in conflict with this act, shall remain operative and in full force and effect.

SEC. 18. If any clause, sentence, paragraph, or part of this act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered.

[S. 5391, Seventy-second Congress, second session]

A BILL To amend sections 13 and 19 of the Federal farm loan act

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subparagraph (b) of paragraph "Fourth" of section 13 of the Federal farm loan act, as amended, is further amended by adding at the end thereof a new sentence to read as follows: "Every such bank may carry such real estate as an asset, for a period not to exceed five years, at the amount of the bank's investment therein at the time of acquirement of such real estate."

SEC. 2. That section 19 of the Federal farm loan act, as amended, is amended by adding at the end thereof a new paragraph to read as follows:

"Such farm loan registrar shall accept as collateral security in place of mortgages withdrawn, real estate, purchase money mortgages and contracts to sell acquired real estate, for a period not to exceed five years, at the amount of the land bank's investment therein."

[S. 5450, Seventy-second Congress, second session]

A BILL Providing for loans or advances by the Reconstruction Finance Corporation for the purpose of securing the postponement of the foreclosure of farm mortgages for a period of two years, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That with a view to overcoming unprecedented panic conditions which seriously threaten the destruction of agriculture, the Reconstruction Finance Corporation is authorized and directed to make loans or advances in the amount of $1,000,000,000, or so much thereof as may be necessary, to farm mortgagees for the purpose of securing the postponement for two years of the foreclosure of farm mortgages on account of (1) default for more than six months in the payment of mortgage interest and installments accruing under the terms of the mortgage, and (2) unpaid delinquent taxes in arrears for more than 12 months, excluding interest and penalties.

SEC. 2. That before such advance or loan shall be made, the mortgagee shall have first been obliged to protect his mortgage rights by paying accrued delinquent taxes for the mortgagor, as aforesaid, and the mortgagor, after exercising ordinary diligence to meet accrued interest and installment payments, has defaulted thereon over a period of six months. If, in these circumstances and conditions, the mortgagor should execute and duly acknowledge a certificate setting out the facts as to such default in payment of interest and installments and delinquent taxes, his inability to pay the same, and the fact that the mortgagee had thereupon paid such delinquent taxes, in accordance with the terms of the

mortgage, and that the amount so paid had become a part of the mortgage debt, the mortagagee may thereupon apply to and secure from said Reconstruction Finance Corporation an advance or loan in the aggregate amount of delinquent taxes paid by such mortgagee and of the interest and installments due and unpaid on said mortgage for a period of more than six months. The mortgagee at the same time shall_transfer the certificate aforesaid of the mortgagor to the said Reconstruction Finance Corporation, carrying pro tanto the rights of the mortgagee, as security for the advance or loan for which application is made, and agree not to foreclose his mortgage for two years as aforesaid, and the Reconstruction Finance Corporation shall thereupon make the advance or loan in the aggregate amount of the delinquent taxes and the defaulted interest and installment payments as aforesaid, such loan or loans to extend over a period of two years from the date of the enactment of this act.

Such loans or advances shall be made on such terms and conditions as the Reconstruction Finance Corporation may prescribe, but no such loan or advance shall be made until the Reconstruction Finance Corporation is satisfied that all amounts so loaned shall be used solely for the purposes herein provided. No such loan or advance shall be made for the purpose of postponing such mortgage foreclosures as aforesaid in any State during any period within which the courts of such State are by law prohibited from taking jurisdiction over suits or proceedings for the foreclosure of such mortgages or deprived of their powers to sign foreclosure decrees on farm property.

SEC. 3. The Reconstruction Finance Corporation is authorized to make such rules and regulations as may be necessary to carry out the purposes of this act and to make the relief contemplated by this act immediately available.

SEC. 4. Any person who makes any material false representation for the pur pose of obtaining any loan or advance under this act, or in assisting in obtaining any such loan or advance, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than six months, or both.

[S. 5515, Seventy-second Congress Second Session]

A BILL TO provide emergency relief with respect to agricultural indebtedness, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act may be cited as the "Emergency Agricultural Finance Act."

TITLE I-EMERGENCY AGRICULTURAL LOANS

SEC. 2. (a) There is hereby created a body corporate to be known as the Emergency Agricultural Refinance Corporation, which shall be an agency in the Federal Farm Loan Bureau. The members of the Federal Farm Loan Board shall be the board of directors of the corporation. The principal office of the corporation shall be located in the office of the Federal Farm Loan Bureau, and there shall be established a branch office in the offices of each Federal land bank. (b) The corporation shall have a capital stock of $1,000,000,000 subscribed by the United States, payment of which shall be subject to call in whole or in part by the board of directors. There is hereby authorized to be appropriated the sum of $1,000,000,000 for the purpose of making payments upon such subscription when called. Receipts for payment by the United States for or on account of such stock shall be issued by the corporation to the Secretary of the Treasury, and shall be evidence of the stock ownership of the United States.

(c) The management of the corporation is hereby vested in the board of directors. The corporation shall have succession until dissolved by act of Congress. The corporation shall have the power to adopt, alter, and use a corporate seal; to make contracts; to sue and be sued; to appoint and fix the compensation of officers, employees, and agents, to dismiss them for cause, to define their authority and duties, and to require bonds of them and fix the penalties thereof; to prescribe, amend, and repeal rules and regulations governing conduct of its business; together with such incidental powers as may be necessary to carry out the purposes of this title. Land bank appraisers shall make examinations and appraisals for the corporation, and the personnel and facilities of the Federal land banks shall be made available to the corporation, for the purpose of this title, in accordance with arrangements to be made by the corporation and the Federal land banks. There are hereby authorized to be appropriated such sums as may be necessary for administrative expenses under this title.

(d) The corporation may, at any time within five years after the date of approval of this act, make loans to any farmer, secured by a first or second mortgage upon the whole or any part of the farm property, real or personal, including crops, of the farmer. The amount of the mortgage given by any farmer pursuant to this title, together with all prior mortgages or other evidences of indebtedness secured by such farm property of the farmer, shall not exceed 75 per centum of the value thereof, as appraised by the corporation; nor shall a loan in excess of $10,000 be made to any one farmer. Every mortgage made under this title shall contain an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of annual or semiannual installments, sufficient to cover (1) interest on unpaid principal at a rate not to exceed 3 per centum per annum and (2) such payments equal in amount to be applied on principal as will extinguish the debt within an agreed period of not more than ten years from the date the first payment on principal is due, provided that during the first three years the loan is in effect payments of interest only may be required. No loan shall be made under this title unless the holder of any prior mortgage or instrument of indebtedness secured by such farm property arranges to the satisfaction of the corporation to limit his right to proceed against the farmer and such farm property for default in payment of principal.

(e) Loans under this title shall be made for the purpose of refinancing, either in connection with proceedings under Chapter VIII of the bankruptcy act of July 1, 1889, as amended (relating to agricultural compositions and extensions) or otherwise, any indebtedness, secured and unsecured, of the farmer and of providing working capital for his farm operations, and for no other purpose.

(f) As used in this title, the term "farmer" means any individual who is bona fide engaged in farming operations, either personally or through an agent or tenant, or the principal part of whose income is derived from farming operations, and includes a personal representative of a deceased farmer.

TITLE II-AMENDMENTS TO FEDERAL FARM LOAN ACT

PURCHASE OF FEDERAL LAND-BANK BONDS BY THE TREASURY

SEC. 3. Section 27 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, secs. 941-943), is amended by adding at the end thereof the following new paragraphs:

"Until such time as the Secretary of the Treasury determines that Federal landbank bonds are readily salable in the open market at a yield not in excess of 4 per centum per annum, but in no case more than five years after this paragraph takes effect, the Secretary of the Treasury shall purchase at their par value any issue of Federal land-bank bonds bearing interest at the rate of 34 per centum per annum, payable semiannually, made after this paragraph takes effect and tendered to him by any Federal land bank, with the approval of the Federal Farm Loan Board. There are hereby authorized to be appropriated such funds as may be necessary to carry out the provisions of this paragraph. Bonds so purchased shall be delivered to the Secretary of the Treasury to be held by him on behalf of the United States. The Secretary of the Treasury may at any time sell bonds so held at public sale to the highest responsible bidder at not less than their par value, under regulations prescribed by the Secretary of the Treasury. "There is hereby authorized to be appropriated, to be credited to a revolving fund in the Treasury of the United States, the sum of $300,000,000, to be expended by the Federal Farm Loan Board for the purchase of Federal land-bank bonds in the open market at the market price, or for the purchase from Federal land banks at par value of Federal land-bank bonds that have been called for redemption. The Federal Farm Loan Board shall determine the particular issues of Federal land-bank bonds and the amounts thereof to be purchased. Bonds so purchased shall be delivered to and held by the Secretary of the Treasury on behalf of the United States. Bonds, while so held, shall not bear interest, but each Federal land bank shall pay to the Treasury interest at the rate of 31⁄2 per centum per annum, payable semiannually, on all amounts expended under this paragraph for the purchase of its bonds. All bonds of any Federal land bank so held by the Secretary of the Treasury shall be callable by the bank, and shall be retired by it at or before their due date at the price paid therefor under this paragraph."

EXTENSION OF LOANS

SEC. 4. Paragraph tenth of section 13 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, sec. 781), is amended to read as follows:

"Tenth. When in the judgment of the directors conditions justify, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to extend payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the time the extension is made.. The terms of any extension agreement shall be such as will not defer the collection of any portion of such payments of interest and principal as, after investigation by the bank of the situation of the individual borrower, are shown to be within his capacity to meet. In the case of any such extension made prior to the expiration of five years from the date of this paragraph as amended takes effect, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Federal Farm Loan Board, to subscribe at such periods as the board shall determine, to the paid-in surplus of such bank an amount equal to the amount of all extensions made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by the bank with the approval of the board upon thirty days' notice.

"To enable the Secretary of the Treasury to make such subscriptions to the paid-in surplus of the Federal land banks, there is hereby authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended, and such additional amounts as may thereafter be necessary.

"Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Federal Farm Loan Board.

"The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Federal Farm Loan Board, and the board may at any time require such subscriptions to be repaid in whole or in part if in the opinion of the board the bank has resources available therefor."

REAMORTIZATION OF EXISTING LOANS

SEC. 5. Section 13 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, sec. 781), is amended by adding at the end thereof the following new paragraph:

"Eleventh. When in the judgment of the directors conditions justify it, and with the approval of the Federal Farm Loan Board, to reamortize, in whole or in part, the aggregate amount remaining unpaid under the terms of any mortgage, and to accept payment of such aggregate amount on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable on the mortgage, and in addition thereto such amounts to be applied upon the principal as will extinguish the debt within an agreed period of not more than forty years from the date of the reamortization; to deposit such mortgage with the farm-loan registrar as collateral security for farm-loan bonds at an amount not exceeding the principal of the original loan remaining unpaid at the date of such amortization; and with the approval of the Federal Farm Loan Board to charge the borrower an amount not to exceed the actual cost incurred in connection with such reamortization."

SUBSCRIPTION TO FEDERAL LAND-BANK STOCK

SEC. 6. Section 5 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, secs. 691-697; and U. S. C. Supp. VI, title 12, ch. 7, sec. 698), is further amended by adding at the end thereof the following new paragraph:

"For the purposes of the preceding paragraph there is hereby authorized to be appropriated the additional sum of $100,000,000 for subscriptions to nonvoting stock of Federal land banks."

INTEREST RATE ON LOANS

SEC. 7. Section 12 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, secs. 771-772), is amended by adding at the end thereof the following new paragraph:

"Twelfth. Notwithstanding the provisions of paragraph second, the rate of interest on any loans on mortgage made through national farm-loan associations by any Federal land bank, outstanding on the date this paragraph takes effect, shall be 5 per centum per annum for all interest periods commencing after the first regular installment date under the mortgage that occurs more than sixty days after the date this paragraph takes effect; and the rate of interest on any loan or mortgage made through national farm-loan associations by any Federal land bank after the date this paragraph takes effect, and prior to such time is the Federal Farm Loan Board determines that the Federal land-bank bonds are readily salable in the open market at a yield not in excess of 4 per centum per annum, shall be 5 per centum per annum."

CHARGE FOR ADMINISTRATION AND PROFITS

SEC. 8. Paragraph second, clause second, of section 12 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, sec. 771), is amended to read as follows: "second, a charge for administration and profits at a rate not exceeding 11⁄2 per centum per annum on the unpaid principal, said two rates combined constituting the interest rate on the mortgage;”.

DIRECT LOANS

SEC. 9. Section 7 of the Federal farm loan act, as amended (U. S. C., title 12, ch. 7, secs. 711-722), is amended by adding at the end thereof the following new paragraph:

"Whenever it shail appear to the Federal Farm Loan Board that national farm loan associations have not been formed in any locality in the continental United States, or that the farmers residing in the territory covered by the charter of a national farm loan association are unable to apply to the Federal land bank of the district for loans on account of the inability of such association to indorse such loans, the Federal Farm Loan Board may, in its discretion, authorize said bank, at any time within five years after this paragraph takes effect to make direct loans to borrowers secured by first mortgages on farm lands situated within any such locality or territory. Except as herein otherwise specifically provided, all provisions of this act applicable with respect to loans made through national farm loan associations shall, in so far as practicable, apply with respect to such direct loans, and the Federal Farm Loan Board is authorized to make such rules and regulations as it may deem necessary with respect to such direct loans.

"The rate of interest on such direct loans made at any time by any Federal land bank shall be one-half per centum per annum in excess of the rate of interest charged to borrower for martgage loans made at such time by the bank through the national farm loan associations,

'Each borrower who obtains a direct loan from a Federal land bank shall subscribe and pay for stock in such bank in the sum of $5 for each $100 or fraction thereof borrowed. Such stock shall be held by such Federal land bank as collateral security for the loan of the borrower and shall participate in all dividends. Upon full payment of the loan such stock shall, if stili outstanding, be canceled at par, or, in the event that such stock shall have become impaired, at the estimated value thereof as approved by the Federal Farm Loan Board, and the proceeds thereof shall be paid to the borrower.

As

"Each such borrower shall covenant in his mortgage that whenever there are ten or more borrowers who have obtained from a Federal land bank loans under the provisions of this section aggregating not less than $20,000, and who reside in a ocality which may, in the opinion of the Federal Farm Loan Board, be conveniently covered by the charter of and served by a national farm loan association, he will unite with such other borrowers to form a national farm loan association. Such borrowers shall organize the association subject to the requirements and the conditions specified in this section, so far as the same may be applicable, and in accordance with rules and regulations of the Federal Farm Loan Board. soon as the organization of the association has been approved by the Federal Farm Loan Board, the stock in the Federal land bank held by each of the members of such association shall be canceled at par, and in lieu thereof the bank shall. issue in the name of the association an equal amount of stock in said bank, which stock shall be held by said bank as collateral security as provided in this section with respect to other loans through national farm loan associations. Thereupon there shall be issued to each such member an amount of capital stock in the association equal to the amount which he previously held in said bank, which stock shall be held by said association as collateral security as provided in section