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73d C ONGRESS . SESS. II . CH. 23. FEBRU ARY 23, 1934 . [CHAPTER 23 .] February 23, 1934 .
AN ACT [5. 1975.] To provide for loans to farmers for crop production and harvesting during the [Public, No . 97.]
year 1934, and for other purposes . Be it enacte d by the Sena te and House of Representat ives of the United States o f America in Congress assembled, That the Governor of the Farm Credit Administration, hereinafter in this Act referred to as the " Governor ", is hereby authorized to make loans to farmers during the year 1934 for crop production, planting, fallowing, and cultivation and, to the extent of not exceeding $1,000,000, for feed for livestock in drought- and storm-stricken areas . SEC . 2. (a) A first lien on all crops growing or to be planted or grown or harvested during the year 1934, or on livestock, shall be required as security for any such loan : Provided, however, That in the case of a loan for the purpose of summer fallowing or the pro- duction of winter wheat, a first lien, or an agreement to give a first lien, on crops to be harvested in 1935 may, in the discretion of the Governor, be deemed sufficient security . Except as hereinafter pro- vided, such loans shall be made through such agencies, upon such terms and conditions, and subject to such regulations as the Governor shall prescribe . Recording and other fees in connection with such loans shall not exceed $1 in any case, which shall be paid by the Farm Credit Administration . Loans made pursuant to the provisions of this Act shall bear interest at the rate of not to exceed 51/2 per centum per annum . For the purpose of collecting loans made under this Act and under prior Acts of the same general character, the Gov- ernor may use the facilities and services of the Farm Credit Admin- istration or of any officer or officers thereof and may pay for such services and the use of such facilities from the funds made available under section 5 hereof for the payment of necessary administrative expenses ; and such institutions are hereby expressly empowered to enter into agreements with the Governor for such purposes . (b) The a mount which may b e loan ed to any b orrowe r purs uant to this Act shall not exceed $250 unless, in the opinion of the Gov- ernor, the circumstances surrounding the loan are such as to warrant a lar ger amount, i n which event the borrower shall be enti tled to a loan not in excess of $400 : Provided, however, That in any area certified by the President of the United States to the Governor as a distressed emergency area, the Governor may make loans without regard to the foregoing limitations, under such regulations and for such time as he may prescribe therefor . (c) No loan shall be made under this Act to any applicant who shall not have first established to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such regu- lations as the Governor may prescribe (1) that such applicant is unable to procure from other sources a loan in an amount reasonably adequate to meet his needs for the purposes for which loans may be made under this Act ; and (2) that such applicant is cooperating directly in the crop production control program of the Agricultural Adjustment Administration or is not proposing to increase his 1934 production of basic agricultural commodities in a manner detrimental to the success of such program . SEC . 3 . (a) The moneys authorized to be loaned by the Governor under this Act are declared to be impressed with a trust to accomplish the purposes provided for by this Act, namely, the production, planting, fallowing, cultivation of crops, and feed for farm livestock, which trust shall continue until the moneys loaned pursuant to this Loans t o farmers authorized for crop pro- duction during 1934 . Post, p . 402. Vol.47. p.795 . Fee d for live stoc k . Liens required . Proviso . Summer fallowing, etc ., security . Loans m ade under rules, etc., of Governor . Recording, etc ., fees . Interest rate . Collecting loans . Past, p. 355. Limit on individual loans . Proviso. Distressed emergen- cy areas. Conditions of loan. Applicant unable to procure elsewhere . Applicant to cooper- ate under Agricultural Adjus tment Act pro- gram. Ante, p. 31. Loans declared to be impressed with a trust for designated pur- poses .
