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included in standard nurseries, as well as other products having "utilitarian value" such as fruit trees and evergreens are eligible for loans which are required to be within amounts which will be paid from expected sales to be made within one year from the date the loan is made.* [RACC Bull. 1, Oct. 1, 1932, RACC Bull. 99, Oct. 13, 1933]
92.6 Indians. Loans to Indians should be made only upon the security of the so-called "unrestricted" property, located on a Government Indian reservation.* [RACC Bull. 2, Oct. 1, 1932, RACC Bull. 17, Nov. 26, 1932, RACC Bull. 46, Apr. 6, 1933]
92.7 Corporations. A corporation is considered to be a "farmer" or "stockman" only if its principal business is that of farming and/or raising, breeding, fattening and marketing of livestock.* [RACC Bull. 69, June 22, 1933]
PART 93—APPLICATION OF PROCEEDS OF SALE
Section 93.1 Disposition of proceeds of sale. All proceeds of sale should be applied on the loan affected and the borrower permitted, when desired, to make application for an additional loan under the additional advance clause contained in the mortgage. (Sec. 201 (e), 47 Stat. 713; 12 U.S.C. 1148) [RACC Bull. 1, Oct. 1, 1932, as modified by RACC Bull. 33, Mar. 10, 1933]
PART 94-SECURITY REQUIREMENTS
Section 94.1 Security requirements. All loans made by the regional agricultural credit corporations shall be fully and adequately secured. Primary security to be acceptable must consist of first and paramount liens on personal property. It is not the intention that loans shall be secured primarily by mortgages or other liens on real estate, either farms or ranches; and while this class of security is acceptable as additional collateral, it is only to be so considered. (Sec. 201 (f), 47 Stat. 713; 15 U.S.C. 605b (f)) [RACC Bull. 1, Oct. 1, 1932]
Subchapter H-Emergency Crop and Feed Loan Section
PART 110-LOANS IN THE UNITED STATES
110.1 Loans in the United States dur- 110.12 Landlord limitation.
Section 110.1 Loans in the United States during 1938. Loans for fallowing, for the production of crops, for planting, cultivating, and harvesting crops, for supplies incident and necessary to such production, planting, cultivating, and harvesting, and for feed for livestock, or for any of such purposes, will be made during the year 1938 by the Governor of the Farm Credit Administration to farmers in the Continental United States.*t [Par. 1]
*88 110.1 to 110.24, inclusive, issued under the authority contained in sec. 1, 50 Stat. 5; 12 U.S.C., Sup., 10201. See also 52 Stat. 26.
†The source of §§ 110.1 to 110.24, inclusive, (except for amendments noted in the text,) is FCA Order 211, Feb. 4, 1938.
110.2 Eligibility; general. Such loans may be made to farmers who have acreage suitable for cultivation, the necessary equipment for farming operations, and livestock for which feed is required, and who are unable to obtain a loan from other sources, and, further, such loans will be limited to the amount necessary to meet the immediate and actual cash needs, and preference shall be given to the applications of farmers whose cash requirements are small.*† [Par. 2]
110.3 Security. Such loans shall be secured by a first lien, or by an agreement to give a first lien, upon all crops of which the planting, cultivation, production, or harvesting is to be financed, in whole or in part, with the proceeds of such loan; or, in case of any loan for the purchase and/or production of feed for livestock, a first lien upon the livestock to be fed.** [Par. 3]
110.4 Applicants agreements. Applicants must agree (a) to use seed and methods approved by the Department of Agriculture; (b) to plant a garden for home use; and (c) to plant a sufficient acreage of feed crops to supply feed for their workstock and subsistence cattle.t [Par. 4]
110.5 Loan limitation and interest rate. The total amount of loans made to any one borrower during the calendar year 1938 shall not exceed $400. Nc loan will be made for an amount less than $10. All loans will be made in multiples of $5. Notes will bear interest, from maturity until paid, at the rate of 4 percent per annum; and interest to the maturity date at the same rate will be deducted at the time the loan is made.*† [Par. 5]
110.6 Farm Security Administration borrowers. No such loan will be made to any applicant who is a standard rehabilitation client of the Farm Security Administration or who has an application pending which is in process of approval, as indicated on lists furnished by the Farm Security Administration.*† [Par. 6 (a)]
110.7 Available credit. No such loan will be made to any applicant who can obtain a loan from other sources, including production credit associations, in an amount reasonably adequate to meet his needs for the purposes for which such loans may be made. An applicant for a loan in an amount in excess of a minimum fixed by
**For statutory and source citations, see note to § 110.1.
the Governor, or his representative, for the territory in which the applicant resides, must first submit written evidence from a production credit association that his application for a loan of the same or less amount has been rejected.***[Par. 6 (b)]
110.8 Production credit applicants. No such loan will be made to any applicant who has an application for a 1938 crop or feed loan pending with a production credit association.*+ [Par. 6 (c)]
110.9 Good faith. No such loan will be made to any applicant who has not undertaken in good faith to meet his obligations in connection with any previous crop, feed, or seed loans as follows: has wilfully misused the proceeds of a loan check for any purpose other than those specified in his application; has failed to plant a crop or has planted crops on land other than those described in the application; has wilfully disposed of crops mortgaged to the Governor, or failed to account satisfactorily therefor without applying the proceeds of the sale or the value thereof as payment on his loan; has wilfully used the crops mortgaged to the Governor for any purpose other than that stated in his application or applications; or has failed to pay all or part of such loan or loans when able to do so.** [Par. 6 (d)] 110.10 Amount loaned limited to needs. No such loan will be made to any applicant in an amount greater than his immediate cash needs for the production of crops, for supplies incident and necessary to such production, and for feeding livestock.*+ [Par. 6 (e)]
110.11 Members of family units. No such loan will be made to more than one member of a family unit or to any person living and/or farming with an applicant whose application for a loan hereunder has been disapproved.*† [Par. 6 (f)]
110.12 Landlord limitation. No such loan will be made to applicants who are occupants of the same farm or plantation, or are tenants of the same landlord in any one county (with the exception of tenants on land the title of which is vested directly in the United States, or in any State or municipal government, or in any drainage district), in an aggregate amount which during the calendar year 1938 (inclusive of all emergency loans theretofore made to them, or any of them, during the calendar year 1938, pursuant to the Act of Congress approved January 29, 1937, 50 Stat. 5; 12 U.S.C., Sup., 10201, and the Joint Resolution of Congress approved February 4, 1938, 52 Stat. 26) exceeds the sum of $1,000.00; Provided, however, That in the area hereinafter designated no such loan will be made to applicants such as are described in this section in an aggregate amount which (inclusive of all emergency loans aforesaid) exceeds the sum of $2,500.00: North Dakota; South Dakota; Nebraska; Kansas, counties as follows: Clark, Cheyenne, Decatur, Finney, Ford, Gove, Graham, Gray, Greeley, Grant, Hamilton, Haskell, Hodgeman, Kearney, Lane, Logan, Meade, Morton, Ness, Norton, Rawlings, Sherman, Sheridan, Scott, Stanton, Stevens, Seward, Thomas, Trego, Wallace, Wichita;
**For statutory and source citations, see note to § 110.1.
Oklahoma, counties as follows: Beaver, Cimarron, Ellis, Harper, Roger Mills, Texas, Woods, Woodward; Montana, counties as follows: Big Horn, Blaine, Carter, Cascade, Chouteau, Custer, Daniels, Dawson, Fallon, Fergus, Garfield, Glacier, Golden Valley, Hill, Judith Basin, Liberty, McCone, Musselshell, Park, Petroleum, Phillips, Pondera, Powder River, Prairie, Richland, Roosevelt, Rosebud, Sheridan, Stillwater, Sweet Grass, Teton, Toole, Treasure, Valley, Wheatland, Wibaux, Yellowstone; Texas, counties as follows: Armstrong, Bailey, Carson, Castro, Cochran, Collingsworth, Dallam, Deaf Smith, Donley, Gray, Hansford, Hartley, Hutchinson, Hemphill, Lipscomb, Moore, Ochiltree, Oldham, Parmer, Potter, Randall, Roberts, Sherman, Wheeler, Yoakum.* [Par. 6 (g), FCA Order 211, Feb. 4, 1938, as amended by FCA Order 214, Feb. 16, 1938]
110.13 Other means of livelihood. No such loan will be made to any applicant who has a means of livelihood other than farming.*† [Par. 6 (h)]
110.14 Partnerships, corporations, etc. No such loan will be made to partnerships, corporations, minors, guardians, agents, executors, or administrators; or, to receivers or trustees.** [Par. 6 (i)]
110.15 Husband and wife. No such loan will be made to a wife living with her husband unless the husband joins in the application, note, and mortgage or lien.** [Par. 6 (j)]
110.16 Purchase of machinery, etc. No such loan will be made for the purchase of machinery or livestock, or for the payment of taxes, rent, debts, or interest or for any purpose other than as specified herein.** [Par. 6 (k)]
110.17 Installments. Loans may be disbursed in one payment or in installments at the discretion of the regional manager.* [Par. 7] 110.18 Per acre allowances, etc. No loan for the production of crops will be made in an amount greater than the immediate and actual cash needs in the particular case to plant the crop in a manner approved by the Extension Service of the Department of Agriculture. The immediate and actual cash needs in a particular case must not exceed the actual costs per acre in such case as determined by individual consideration of the various factors involved, e. g., whether it is necessary to purchase seed, feed, fertilizer, spraying material and/or fuel for tractors; the cost thereof; and any other incidental expenses currently incurred in that community in connection with the particular crop to be produced. In no event may loans for crop production purposes exceed the following maximum allowances per
**For statutory and source citations, see note to § 110.1.
1 Where spray material, including dust, is used without commercial fertilizer, the allowance for such spray material and dust will be the difference, if any, between the allowances in column 2 and column 3.
2 Of the grain allowances shown in the table not more than $1 shall be used for summer fallowing.
These figures include allowances for fuel, oil, and feed for workstock for crop production purposes and incidental expenses, for which no additional allowances will be made.
An additional allowance not to exceed $3 per acre will be made for water charges (including maintenance, electric power, and fuel) for crops other than rice grown on irrigated land.
Allowances for commercial fertilizer will be made only in areas where commercial fertilizer is customarily used.
The following exceptions are made to the foregoing table of maximum allowances per acre:
(a) The maximum allowance per acre for the purpose of producing and harvesting Irish potatoes (where commercial fertilizer and spray material, including dust, are used) in that section known as the "Eastern Shore", which comprises the State of Delaware and the eastern shore of the States of Maryland and Virginia, shall be $35 per acre.
(6) The maximum allowance per acre to be loaned to tobacco growers in the States of Connecticut and Massachusetts shall not exceed the following:
Without commercial fertilizer_.
Where commercial fertilizer is used___
Where spray material, including dust, is also used, add___.