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(d) There is first to be deducted from said sums an "annual rental," which is to include:
(1) Three percent of the balance of the purchase price not covered by deposits thereto at the beginning of the year.
(2) A proportionate share of the taxes or payments in lieu of taxes which the Government may make in connection with the project. (3) Insurance.
(4) A sum necessary to cover the purchaser's share of the cost of management, and for reserves.
(5) A sum necessary for maintenance and repairs.
(e) The balance of the sums received from the agreed percentages is to be applied to making deposits towards payment of the purchase price, and is to be held by the Government in trust and not deposited into the United States Treasury as miscellaneous receipts.
(f) Annual rental is to be due and owing from the purchaser regardless of the value of the crops raised by him. The Government may, in its discretion, direct that any amount of annual rental which is unpaid, shall accrue and be added to the annual rental to be paid by the purchaser for the following year.
(g) The purchaser may make prepayments towards the purchase price, but the final payment may not be prepaid without the written consent of the Government.
(h) The purchaser is to plant such crops, conduct his farming operations in such manner, and keep the property in such condition, as are in accord with approved farm organization and good husbandry and with a Farm and Home Management Plan approved by the Government.
(i) The purchaser may not sell, lease, and so forth, the property or any interest under the Contract, without the written consent of the Government.
(j) The Government does not plan to take security, but may demand it on any chattels including crops at any time if circumstances so warrant.
(k) The law (of testacy or intestacy, as the case may be) of the state in which the property is situated, is to govern in determining the person who shall succeed to the interests of the purchaser in the event of his death.
(1) In the event the Contract is terminated, the purchaser is not to be obligated to pay annual rental and to make deposits towards the purchase price. Alternative methods are specified for compensating him for his interest in the property.
(m) Upon the payment by the purchaser of all sums due the Government under the Contract, the Government is to deliver to the purchaser a quitclaim deed conveying the property. The deed is to recite the reservation of mineral rights set forth in paragraph 1 of the Contract. That paragraph provides that all mineral rights are reserved to the Government, except that the purchaser is given the right to mine coal in an amount reasonable for his own use, but not for the purpose of selling the same.* [Pars. V, VI, and Exhibit A, Adm. Instr. 141, June 4, 1938]
*For statutory citation, see note to 8 302.1.
SUBPART TENURE AGREEMENTS AND LEASES FOR RESETTLEMENT TYPE PROJECTS
302.25 Limitations in use of Tenure Forms. (a) Form FSA-LE 161, Tenure Form D-1, will be executed between the Government and the lessee only after the United States has acquired title to the land, and:
(1) Where a farm management plan has not yet been evolved and it is necessary or desirable to have the farm operated in the meantime by a client who has been selected for permanent tenure; or
(2) Where a farm management plan has been evolved but no selected client is available and it is desirable to have the farm operated by a farmer who has not been selected for permanent tenure.
(3) Whether or not a farm management plan has been evolved but where construction plans or construction has not sufficiently progressed to permit the execution of Tenure Form D-2.
(b) Form FSA-LE 161, Tenure Form D-1, may be modified and used:
(1) Where the lessee is a client or a person otherwise entitled to rural rehabilitation and where the regional director finds that the rural rehabilitation of such lessee will be promoted by providing that the lessee shall clear, terrace, or otherwise perform minor improvements and repairs upon the leased lands and the buildings and structures thereon. In no case should the modification, hereinafter provided for, be used when the sole purpose is to avoid the expenditure of appropriated or allotted funds for the improvements in question. Where the modification provided for is used, the value of such repairs, clearing, terracing or other improvements shall be taken into account in fixing the rent. In this situation, the following paragraph will be substituted for paragraph 5, page 4, of Form FSA-LE 161: 5. The Lessee shall utilize the pasture and woodland, and plant, cultivate, and harvest such crops and conduct such livestock, dairy and poultry enterprises on said Property as are in accordance with approved farm organization, management and practices of good husbandry. In order to further the rehabilitation of the lessee and maintain the property for efficient farming operations, the lessee agrees to conduct such farming operations and make such improvements on said property in accordance with the provisions of such farm management plans as may be prescribed by the Government.
(c) Form FSA-LE 162, Tenure Form D-2, will be executed between the Government and the lessee only after the United States has acquired title to the land and for a term of approximately five years:
(1) Where a farm management plan has been evolved and an approved client has been selected; and
(2) Where construction plans or construction is sufficiently advanced to permit the execution of a lease for a term of approximately five years.
(d) Form FSA-LE 163, Tenure Form D-3, will be executed between the vendor and the lessee only where the United States has not yet acquired title to the land and for a term running to the end of the crop year, or until such time as title to the property is acquired by the United States, whichever period is the shorter, and:
(1) Where the United States is willing to permit the vendor to lease the land to a client, or a nonclient of the Farm Security Administration or a low-income farmer.
(e) Form FSA-LE 164, Tenure Form D-4, will be executed between the Government and the lessee prior to the date of acquisition of title to the land by the United States, will become operative upon acquisition of title, and:
(1) Where it appears desirable to insure continued occupancy of the tenant to the end of the crop year, after the tenancy under Tenure Form D-3 has terminated by reason of acquisition of title to the land by the United States.
(f) Form FSA-LE 165, Tenure Form D-5, will be executed between the Government and the vendor prior to the acquisition of title to the land by the United States and will become operative upon acquisition of title and will terminate on a date not later than the end of the crop year, and:
(1) Where it appears that title to the land may be acquired by the United States during a crop year and it has been administratively determined that developmental work thereon will not be undertaken during the crop year, and the United States is desirous of making such provision as will permit the present owner or his tenants to cultivate the land in order that the land will not remain idle for the entire crop year; or
(2) Where it appears desirable to insure continued occupancy of the land to the vendor to the end of the crop year in order that the land will not remain idle for the entire crop year.* [Par. 4, A.O. 233, Feb. 15, 1938, 3 F.R. 386]
SUBPART Loans to individuals
303.119 Application for purchase and
303.120 Performing construction.
SUBPART Collection of rural re-
303.136 General policies.
and surrender of rates. 303.140 Administrative authorization. 303.141 Delegation of authority. SUBPART-Release of property subject to a lien
303.155 Purpose. 303.156 Definition. 303.157 Conditions upon which property may be released. 303.116 Families eligible. Purposes for which property 303.117 Terms, conditions and purposes may be released. for which construction loans 303.159 Application for release. and lease and purchase of 303.160 Execution of release form and land may be made. delegation of authority to execute the same.
SUBPART-TENANT PURCHASE LOANS TO INDIVIDUALS
Section 303.1 State organization. Subject to the administrative authority of the regional director, or his designated assistant the State director of the Farm Security Administration shall be responsible for supervising the execution of the tenant purchase program in the respective states.
In each State there shall be a State Farm Security Advisory committee, which shall serve in an advisory capacity with respect to all phases of the Farm Security Program, except that such committees are not intended to replace existing state Farm-Debt Adjustment committees. These committees shall be appointed by the Secretary of Agriculture in the following manner:
Each regional director of the Farm Security Administration shall, in the manner indicated in special instructions to be issued, submit to the Administrator of the Farm Security Administration for transmittal to the Secretary of Agriculture, 15 nominees listed in order of preference with information regarding the qualifications of each nominee. The Secretary of Agriculture will consider the nominations submitted and, if acceptable, will select nine appointees and designate a committee chairman. If the nominees submitted are not acceptable, others shall be submitted in like manner. Nominees shall be selected from the standpoint of their qualifications for service without reference to political affiliation. Members of state committees shall serve without compensation but they shall be reimbursed for expenses incurred in attending committee meetings.
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Their terms of service shall be for 1 year or the period designated in the appointment.*t [Par. I 3]
*§§ 303.1 to 303.5, inclusive, issued under the authority contained in sec. 41 (i), 50 Stat. 529; 7 U.S.C., Sup. 1015 (i); Secretary's memorandum 758, Sept. 30, 1937, 2 F.R. 2077.
The source of §§ 303.1 to 303.5, inclusive, is Administration order 230, Oct. 5, 1937, 2 F.R. 2092.
303.2 County organization. Responsibility for carrying out the provisions of Title I of the Bankhead-Jones Farm Tenant Act, (50 Stat. 522; 7 U.S.C., Sup., 1000-1006) in the counties, except that imposed by the Act or by the Administrator upon county committees, shall be vested in the county rural rehabilitation supervisors and applications for tenant purchase loans shall be filed by such county rural rehabilitation supervisors. Without additional compensation, the county rural rehabilitation supervisors shall serve as executive secretaries of county committees and shall conduct such correspondence and maintain such files and records in behalf of such committees as may be required.
The land grant colleges and the agricultural experiment stations shall be recognized as authority within each State with respect to technical agricultural practices in that state and the advice of qualified representatives of these institutions shall be sought with respect to the Farm and Home Management Plans developed by the county farm and home supervisors in cooperation with borrowers as a basis for farm purchase loans. Such advice should be given in the county in which the plans are developed. The county agricultural agents of the respective counties will be requested to serve as advisers to county committees with respect to qualifications of applicants for tenant purchase loans, and local agricultural practices.
The county committees, consisting of three farmer members provided for in section 42 of Title IV of the Bankhead-Jones Farm Tenant Act (50 Stat. 529; 7 U.S.C., Sup., 1016), shall be selected in the following manner:
It is desired that the county rural rehabilitation supervisor (who shall be responsible for initiating the action) and the county agricultural agent jointly agree upon 12 nominees. These nominees, listed in the order of preference with appropriate information regarding each, shall be transmitted to the State Farm Security Advisory committee by the county rural rehabilitation supervisor. If the county agricultural agent does not find it possible to share in the nominations, the county rural rehabilitation supervisor shall proceed independently. The state Farm Security Advisory committee shall choose six acceptable nominees from the 12 submitted and endorse them for appointment to the Secretary of Agriculture. The names of the six persons endorsed, with appropriate information regarding each, shall be transmitted by the regional director to the Administrator of the Farm Security Administration who, in turn, shall transmit them to the Secretary of Agriculture.
If persons nominated by the county rural rehabilitation supervisor and the county agricultural agent are not acceptable to the state Farm Security Advisory committee, other names shall be submitted until six acceptable persons have been nominated and if persons endorsed Page 14