65 STAT.
197
PUBLIC LAW 123—AUG. 23, 1951
pay to purchase required clothing and equipment shall be required to turn in to the Academy all clothing and equipment of a distinctively military nature to the extent required to discharge such indebtedness; and, if the value of such clothing and equipment so turned in does not cover the indebtedness incurred, then such indebtedness shall be canceled." Approved August 22, 1951.
Public Law 123
CHAPTER
344
AN ACT To amend the Bankhead-Jones Farm Tenant Act so as to provide a more effective distribution of mortgage loans insured under title I, to give holders of such mortgage loans preference in the refinancing of loans on a noninsured basis, to adjust the loan limitations governing title II loans so as to provide more effective assistance to production and subsistence loan borrowers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sections of the Bankhead-Jones Farm Tenant Act, as amended (60 Stat. 1062), are hereby amended as follows: Amend section 4 by striking out the words "and insuring mortgages" and "insure mortgages or" where they occur in said section and amend the last sentence of section 12(b) to read as follows: "With respect to any fiscal year, one-quarter of the amount available for insurance, commitments and acceptance of mortgages under this title shall be distributed \mong the several States and Territories on the basis of bona fide applications and the availability of farms with respect to which loans may be insured and the balance shall be distributed on the basis provided in section 4, and preferences shall be given to mortgages executed by veterans qualified under section 1." SEC. 2. Amend section 21 to read: "SEC. 21. (a) The Secretary may make loans to farmers and stockmen 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. "(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 initial loan to any one borrower under this section shall exceed $7,000 and no further loan may be made under this section to a borrower so long as the total amount outstanding, including accrued interest, taxes, and other obligations properly chargeable to the account of the borrower, exceeds $10,000. "(c) The terms of loans under this section, including any renewal or extension of any such loan, shall not exceed seven years from the date the^riginal loan was made. " (d) No person who has failed to liquidate his indebtedness under this section for seven consecutive years shall be eligible for loans hereunder until he has paid such indebtedness in full, except that the indebtedness on loans made prior to November 1, 1946, which are being serviced and collected by the Farmers Home Administration, shall not be subject to the limitations of this section until November 1, 1953."
August 23, 1951 [S. 684]
Bankhead-Jones F a r m T e n a n t Act, amendment. 50 Stat. 522. 7 U.S.C. § 1000. 7 U.S.C. § 1004. 7 U. S. C; § 1005b. D i s t r i b u t i o n of mortgage insurance.
7 U.S.C. § 1007. Eligible borrowers.
Restrictions.
Terms of loans.
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