70 S T A T. ]
PUBLIC LAW 878-AUG. 1, 1956
Public Law 878
801
CHAPTER 829
AN ACT To improve and simplify the credit facilities available to farmers, to amend the Banlvhead-Jones Farm Tenant Act, 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 BankheadJones F a r m Tenant Act, as amended, is further amended as follows: (a) The following sections of title I of the Bankhead-Jones F a r m Tenant Act, as amended, are further amended as follows: Section 1(a) is amended by striking from the second sentence thereof the words "to assist borrowers under this title in making the" and inserting in lieu thereof the words "or insured for" and by striking the word "their" preceding the words "farming operations". (b) Section 1(b) is amended by inserting after the word "only" in the first sentence the words "farm owners", by striking the words "(including owners of inadequate or underimproved farm units)", and by inserting in lieu of the words "the major portion" the words "a substantial portion". (c) Section 1(c) is amended to read as follows: "No loan shall be made, or mortgage insured, unless the farm is a family-type unit of such size as the Secretary determines to be sufficient to enable the family to carry on successful farming of a type which the Secretary deems can be carried on successfully in the locality in which the farm is situated: Provided, however, That— " (1) loans may be made to veterans or mortgages insured for veterans, as defined in section 1(b)(2) hereof, who have pensionable disabilities, with respect to farm units of sufficient size to meet the farming capabilities of such veterans and afford them income which, together with their pensions, will enable them to meet living and operating expenses and the amounts to become due on their loans; and "(2) loans may be made or mortgages insured to owner-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, to repair or improve such farm units, and to refinance indebtedness of the owner incurred for agricultural purposes, if such farms are of sufficient size to produce income which, together with income from other sources, will enable them to meet living and operating expenses and the amounts to become due on their loans; and "(3) loans in amounts not exceeding $15,000 per farm for the construction, improvement, repair, or replacement of farm dwellings and other farm buildings on farms the operation of which require no more than three farm families or three farm dwellings may be insured under this Act." (d) The second sentence of section 2(b) is amended by striking the period at the end thereof and inserting a comma and the following: "except that, for loans under either part of the proviso in section 1 (c) of this title, the certification shall be based on the normal market value of the farm." (e) Section 3(a) is amended to read as follows: "SEC. 3. (a) Loans made under this title shall not be in excess of the amount certified by the county committee to be the value of the farm less any prior lien indebtedness, and shall be secured by a first or second mortgage or deed of trust on the farm. Loans may not be made for the acquisition or enlargement of farms which have a value, as acquired or enlarged, in excess of the average value of efficient 692Z5 O - 5 7 - 5 5 ( V o l. 70)
August 1, 195(5 [H. R. ti544]
Bankhead-Jones Farm Tenant Act, amendment.
Power of Secretary. 60 Stat. 1072. 7 USC 1001.
Certification. 60 Stat. 1074. 7 USC 1002.
Amounts. 60 Stat. 1074. 7 USC 1003.
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