"(3) If the mortgagor fails to pay any amounts due for taxes, special assessments, water rates, and other amounts which may become liens prior to the mortgage, and any amounts due for property insurance premiums, such amounts may be paid by the Secretary, either before or after assignment of the insured mortgage to the Secretary, for he account of the mortgagor as provided in paragraph (4) below.

"(4) Payments by the Secretary under paragraphs (2) and (3) shall be advanced out of the fund for the account of the mortgagor. Such advances shall be repaid to the fund out of the first available collections received from the mortgagor. Such advances shall bear interest at the rate fixed in the insured mortgage payable out of any subsequent collections, and, until repaid, the advance and interest thereon shall be added to subsequent installments."

SEC. 5. Amend section 12 by adding at the end thereof the following new subsection (j).

"(j) The Secretary is authorized to enter into agreements from time to time with the holder of a mortgage heretofore or hereafter insured under this title that any holder thereof, at the holder's option, shall be entitled, upon assignment of such mortgage to the Secretary within one year after the expiration of a period fixed by such agreement, to have the mortgage purchased by the Secretary even though the mortgage is not then in default, provided the initial fixed period shall be not less than five years from the date of the insured mortgage. Such assignment shall be accomplished in the same manner and the value of such mortgage shall be determined on the same basis as provided by section 13 for mortgages in default. The Secretary may purchase any such mortgage with moneys in the fund and may sell it at its value likewise determined in accordance with section 13 at the time he sells it, and reinsure it, if necessary, or he may retain it for the account of the fund until the indebtedness is discharged through refinancing by the mortgagor, by foreclosure, or otherwise. The value of all such mortgages retained for the fund as herein provided shall not be included in computing the aggregate amount of mortgage obligations that may be insured in any one fiscal year, as provided in section 12 (b). If there should not be sufficient cash in the fund to enable the Secretary to make payments to purchase mortgages as provided in this subsection, in order to obtain funds to make such payments notes may be issued and purchased in the same manner as provided in section 13."

SEC. 6. Amend subsection (a) of section 14 by adding at the end thereof the following sentence: "Expenses and fees incident to foreclosure may be advanced out of the fund for the account of the mortgagor."

SEC. 7. Amend subsection (b) of section 14 to read:

"(b) Amounts realized under section 51 on account of property which was subject to an insured mortgage shall be deposited in the fund. Amounts payable by the Secretary under section 50 with respect to such property, and any necessary costs and expenditures for the operation, preservation, and protection of such property, shall be paid out of the fund."

Approved June 19, 1948.

[CHAPTER 548-2D SESSION]

[H. R. 6073]

AN ACT

To provide for the acquisition of lands for grazing and related purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph the of section 8 of the Act of June 28, 1934 (48 Stat. 1269, 1272), as amended by the Act of June 26, 1936 (49 Stat. 1976; 43 U. S. C., sec. 315g), is hereby amended to read as follows: "That where such action will promote the purposes of a district or facilitate the administration of the public lands, the Secretary is authorized to accept on behalf of the United States any lands within or without the exterior boundaries of a grazing district as a gift."

SEC. 2. The last sentence of section 9 of the Act of June 28, 1934 (48 Stat. 1269, 1273), is hereby amended by substituting for the words "the district" the following: "lands within or without the exterior boundaries of a grazing district".

Approved June 19, 1948.

[CHAPTER 539-2D SESSION]

[H. R. 5174]

AN ACT

To authorize Commodity Credit Corporation to make adjustment payments to certain producers of raw cane sugar in Puerto Rico and Hawaii.

Whereas Commodity Credit Corporation. entered into contracts with producers of 1945-1946 crop Puerto Rican raw cane sugar and 1946 crop Hawaiian raw cane sugar, and subsequently entered into a contract for the purchase of the 1946 and 1947 crops of Cuban raw cane sugar which required payments for 1946 crop Cuban raw cane sugar in excess of those made to the producers of Puerto Rican and Hawaiian sugar of the same crop, after making allowance for the duty and freight advantages of such producers; and

Whereas in connection with its contracts with Puerto Rican and Hawaiian producers for control of the succeeding crop of raw cane sugar from each of such areas, Commodity Credit Corporation made adjustment payments to producers in amounts designed to equalize the prices paid for Puerto Rican and Hawaiian raw cane sugar of the 1946 and 1947 crop years with those paid for Cuban raw cane sugar of the same crop years, but such adjustment payments were denied to the Honolulu Plantation Company, the Plazuela Sugar Company, Godreau, Godreau and Compania (Central Caribe), and Wirshing and Cia, S. en C. (Central Boca Chica), since each of such companies were not engaged in the production of raw cane sugar in the crop year 1947 and were unable to contract with respect to sugar of the 1947 crop year: Therefore

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Commodity Credit Corporation is authorized and directed to make adjustment payments to the Plazuela Sugar Company, to Godreau, Godreau and Compania (Central Caribe) to Wirshing and Cia, S. en C. (Central Boca Chica) on each company's production of 1945-1946 crop Puerto Rican raw cane sugar, and to the Honolulu Plantation Company on its production of 1916 crop Hawaiian raw cane sugar, each of such payments to be made at the same rate and subject to the same conditions as adjustment payments made to other Puerto Rican and Hawaiian producers of raw cane sugar of such crops, irrespective of the failure of such producers (1) to produce raw cane sugar in any succeeding crop year, or (2) to enter into contracts with Commodity Credit Corporation with respect to such raw cane sugar. Commodity Credit Corporation may require such evidence as it may deem necessary in support of applications for payment made pursuant to the authorization herein contained.

Approved June 19, 1948.

[CHAPTER 613-2D SESSION]

[H. R. 4071]

AN ACT

To amend sections 301 (k) and 304 (a) of the Federal Food, Drug, and Cosmetic Act, as amended.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (k) of section 301 of the Federal Food, Drug, and Cosmetic Act, as amended (21 U. S. C. 331 (k)), is amended to read as follows:

"(k) The alteration, mutilation, destruction, obliteration, or removal of the whole or any part of the labeling of, or the doing of any other act with respect to, a food, drug, device, or cosmetic, if such act is done while such article is held for sale (whether or not the first sale) after shipment in interstate commerce and results in such article being adulterated or misbranded."

SEC. 2. Subsection (a) of section 304 of such Act, as amended (21 U. S. C. 334 (a)), is amended by inserting immediately after the words "when introduced into or while in interstate commerce" the following: "or while held for sale (whether or not the first sale) after shipment in interstate commerce".

Approved June 24, 1948.

[CHAPTER 658-2D SESSION]

[H. R. 6935]

AN ACT

Making appropriations to supply deficiencies in certain appropriations for the fiscal year ending June 30, 1948, and for other purposes.

DISASTER RELIEF

Disaster relief: To enable the President, through such agency or agencies as he may designate, and in such manner as he shall determine, to supplement the efforts and available resources of State and local governments or other agencies, whenever he finds that any flood, fire, hurricane, earthquake, or other catastrophe in any part of the United States is of sufficient severity and magnitude to warrant emergency assistance by the Federal Government in alleviating hardship, or suffering caused thereby, and if the governor of any State in which such catastrophe shall occur shall certify that such assistance is required, $500,000, to remain available until June 30, 1949, and to be expended without regard to such provisions regulating the expenditure of Government funds or the employment of persons in the Government service as he shall specify: Provided, That no expenditures shall be made with respect to any such catastrophe in any State until the governor of such State shall have entered into an agreement with such agency of the Government as the President may designate giving assurance of expenditure of a reasonable amount of the funds of the government of such State, local governments therein, or other agencies, for the same or similar purposes with respect to such catastrophe: Provided further, That no part of this appropriation shall be expended for departmental personal services: Provided further, That no part of this appropriation shall be expended for permanent construction: Provided further, That within any affected area Federal agencies are authorized to participate in any such emergency assistance.

Approved June 25, 1948.