HEARINGS BEFORE THE !! 5. Congr622 SUBCOMMITTEE OF THE EIGHTIETH CONGRESS FIRST SESSION ON S. 925 A BILL TO AMEND THE FEDERAL FARM LOAN ACT, AS 47-31678 OTHER PURPOSES MAY 12, 13, 14, AND 15, 1947 10 47 62086 Printed for the use of the Committee on Agriculture and Forestry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1947 45A5 51 Avery, M. D., president, Federal land bank of St. Paul, Minn Crocker, John H., vice president, Citizen's National Bank, Decatur, Ill., representing the American Bankers Association___ Droste, Walter, president, Federal land bank of St. Louis, Mo.- Duggan, I. W., Governor, Farm Credit Administration, USDA. Farrington, Robert L. Associate Solicitor, USDA.. Isleib, J. R., Land Bank Commissioner, Farm Credit Administration, Martin, W. W., director and chairman, Farm Credit Board, St. Louis, Mo.- Ogg, W. R., American Farm Bureau Federation, Washington, D. C.......... Riggle, John J., secretary agricultural credit committee, National Council of Farmer Cooperatives, Washington, D. C...- Robinson, Walter J., director, Federal Land Bank of Spokane, Wash., Schwyn, Carl, director, Federal Land Bank of Louisville, representing the Page 141 123 107 LAND BANK COMMISSIONER LOANS MONDAY, MAY 12, 1947 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON AGRICULTURE AND FORESTRY, Washington, D. C. The committee met at 10 a. m., pursuant to notice in room 324, Senate Office Building, Senator George D. Aiken (chairman of the subcommittee) presiding. Present: Senators Aiken (chairman of the subcommittee), Young, Thye, and Ellender. Senator AIKEN. The subcommittee will come to order. The bill we have under consideration is S. 925, and we will insert a copy of this bill at this point in the record. (The bill is as follows:) A BILL To amend the Federal Farm Loan Act, as amended, and the Federal Farm Mortgage Corporation Act, as amended, to make available to farmers through the Federal land-bank system loans similar to those made by the Land Bank Commissioner on behalf of the Federal Farm Mortgage Corporation; to transfer the existing Land Bank Commissioner loan and related assets of the Federal Farm Mortgage Corporation to the Federal land banks; to provide for the Federal Farm Mortgage Corporation to repay its Governent capital with interest; to authorize the Federal land banks to establish a Federal landbank system reserve fund; and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Farm Credit Act of 1947" and shall become effective July 1, 1947. SEC. 2. (a) The following provisions of the Federal Farm Loan Act, as amended, are further amended by striking out "65" and inserting in lieu thereof "75": (1) Paragraph "Fifth" of section 12 (title 12, U. S. Č. 771); (2) The last paragraph of section 19 (title 12, U. S. C. 857); and (3) The fifth sentence of the first paragraph of section 10 (title 12, U. S. C. 751). (b) Paragraph "Fifth" of section 12 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 771), is further amended by inserting the following new sentence after the second sentence thereof: "Subject to rules and regulations to be issued by the Farm Credit Administration established, opportunity to supplement the earnings from the farm with income from other sources may be considered." (c) Paragraph "Seventh" of section 12 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 771), is amended to read as follows: "Seventh. The amount of special loans to any one borrower shall in no case exceed a maximum of $7,500 and the amount of all loans to any one borrower shall in no case exceed a maximum of $57,500, but regular loans to any one borrower shall not exceed $25,000 unless approved by the Land Bank Commissioner. No loan shall be made for a less sum than $100, but preference shall be given to applications for loans of $10,000 and under." SEC. 3. (a) Paragraph "First" of section 12 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 771), is further amended by adding at the end thereof: "Said loans may be of two types: 'Regular' loans and 'special' loans. Special loans may be made (1) where the land-bank appraiser finds that the security is not adequate for a regular loan but is adequate for a special loan, and (2) where a national farm-loan association determines that it will approve only a special loan even though the security is found by a land-bank appraiser to be adequate for a regular loan. Any other loan made shall be a regular loan. A special loan may be converted into a regular loan at any time upon favorable action 1 |