payable to the Governor, bearing interest at the rate of 4 percent per annum from maturity until paid.

(c) Lien instruments (including waivers) in the form prescribed, conveying a first lien, properly executed and filed, registered, or recorded in the proper office, as required by law.

(d) A voucher for the amount of the loan in the form prescribed, signed by the applicant.*+ [Par. 9]

111.19 Fees. Fees for recording, filing, registration, and examination of records (including certificates) shall be paid by the borrower; Provided, however, That such fees aggregating not to exceed 75 cents per loan may be paid by him from the proceeds of the loan. No fees for releasing liens given to secure loans shall be paid from the proceeds of a loan.*t [Par. 10]

111.20 Changing regulations. The right is reserved to revoke, alter, or amend the regulations in this part at any time and without notice.*t [Par. 11]

Sec.

PART 112-LOANS IN PUERTO RICO

Sec.

112.1 Loans in Puerto Rico during 112.11 Amount loaned limited to needs.

Section 112.1 Loans in Puerto Rico during 1938. Loans for the production of crops, for planting, cultivating, and harvesting of crops, for supplies incident and necessary to such production, planting, cultivating, and harvesting, or for any of such purposes, will be made during the year 1938, by the Governor of the Farm Credit Administration to farmers in Puerto Rico.*** [Par. 1]

*§§ 112.1 to 112.22, 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 §§ 112.1 to 112.22, inclusive, is FCA Order 222, Apr. 9, 1938. 112.2 Eligibility; general. Such loans may be made to farmers who have acreage fit for cultivation, the necessary equipment for farming operations, 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]

112.3 Security. Such loans shall be secured by 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.** [Par. 3]

**For statutory and source citations, see note to § 111.1. **For statutory and source citations, see note to § 112.1.

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112.4 Applicants agreements. Applicants must agree (a) to use seed and methods approved by the Department of Agriculture; and (b) to plant and cultivate a garden for home use.* [Par. 4]

112.5 Loan limitation and interest rate. The total amount of loans made to any one borrower during the calendar year 1938 shall not exceed $400. No loan will be made for an amount less than $25. 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]

112.6 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.*t [Par. 6 (a)]

112.7 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 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)]

112.8 Production credit applicants. No such loan will be made to any applicant who has an application for a 1938 crop loan pending with a production credit association.*t [Par. 6 (c)]

112.9 Marketing agreements, etc. No such loan will be made to any applicant who is a tobacco, coffee, fruit, or vegetable grower, or grower of any other crops, unless he signs a marketing agreement satisfactory to the representative of the Emergency Crop and Feed Loan Office in Puerto Rico, nor to any cane grower unless he signs or agrees to sign a grinding contract with an approved central or mill.* [Par. 6 (d)]

112.10 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 willfully 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 lands other than those described in the application; has willfully 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 a payment on his loan; has willfully 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 (e)]

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**For statutory and source citations, see note to $112.1.

112.11 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 or harvesting of crops and for supplies incident and necessary to such production and harvesting.* [Par. 6 (f)]

112.12 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 (with the exception of tenants on land the title of which is vested directly in the United States or in the Insular Government of Puerto Rico) in an aggregate amount during the calendar year 1938 which (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., 1020i, and the Joint Resolution of Congress approved February 4, 1938, 52 Stat. 26) exceeds the sum of $2,000. [Par. 6 (g)]

112.13 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)]

112.14 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)] 112.15 Husband and wife. No such loan will be made to either a husband or a wife, if living together, unless both join in the application, note, and lien instrument (s).*+ [Par. 6 (j)]

112.16 Members of family units. No such loan will be made to more than one member of a family unit nor to any person living and/or farming with an applicant whose application for a loan hereunder has been disapproved.*+ [Par. 6 (k)]

112.17 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 (1)]

112.18 Installments. Loans may be made, subject to the limitations specified herein, in such amounts and in such installments as the Puerto Rican representative of the Emergency Crop and Feed Loan Section may approve.*t [Par. 7]

112.19 Per cuerda 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 cuerda 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 cro

*For statutory and source citations, see note to § 112.1.

production purposes exceed the following maximum allowances per cuerda:

1 A harvesting allowance of $5.00 per cuerda may be made for stalk-cut tobacco, and $15.00 per cuerda for prime tobacco.

? When fertilizer is not used, loans shall be limited to $4.00 per thousand estimated yield of cocoanuts and not exceeding 20¢ per tree. When fertilizer is used, loans shall be limited to $10.00 per thousand estimated yield of cocoanuts, not exceeding 50¢ per tree, and not exceeding $20.00 per cuerda in any

case.

Not exceeding 30¢ per box estimated crop on tree.

Not exceeding $5.00 per cuerda additional where harvesting advance is made (whether with or without fertilizer).

NOTE: In addition to the $7.00 allowance provided where fertilizer is not used, $15.00 may be allowed for fertilizer and $5.00 for applying the same.

The use of fertilizer is optional with the borrower, but if an allowance is made for such purpose the following table indicates, for varying acreage in coffee, the number of acres which in each instance is the minimum that must be fertilized and the maximum for which an allowance will be approved:

The application of fertilizer must be in accordance with the best methods advocated by the Extension Service, and must be under the supervision of the Extension Service field force.*t [Par. 8]

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*For statutory and source citations, see note to § 112.1.

112.20 Forms. The amount approved for a loan by the Governor or his representative under the regulations in this part will be paid to the applicant by a disbursing officer upon receipt and approval by the Governor or his representative of the following documents:

(a) Application in the form prescribed, signed by the applicant. (b) Promissory note in the form prescribed, executed by the applicant for the amount approved by the Governor or his representative, payable to the Governor, bearing interest at the rate of 4 percent per annum from maturity until paid.

(c) Lien instruments (including waivers) in the form prescribed, conveying a first lien, properly executed and filed, registered, or recorded in the proper office, as required by law.

(d) A voucher for the amount of the loan in the form prescribed, signed by the applicant.*t [Par. 9]

112.21 Fees. Fees for recording, filing, registration, and examination of records (including certificates) shall be paid by the borrower; Provided, however, That such fees aggregating not to exceed 75 cents per loan may be paid by him from the proceeds of the loan. No fees for releasing liens given to secure loans shall be paid from the proceeds of a loan.*t [Par. 10]

112.22 Changing regulations. The right is reserved to revoke, alter, or amend the regulations in this part at any time and without notice.*t [Par. 11]

*For statutory and source citations, see note to § 112.1.

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