willingness to pay on the part of the debtor, or mere financial disadvantage to him, but should find that the settlement is the most advantageous arrangement possible from the standpoint of the Government under the findings herein prescribed. In no event shall cancellation be made unless, in addition to the foregoing requirements, there is an advantage in removing the indebtedness from the accounts.

(3) That the debtor has acted in good faith in an effort to meet his obligation; and

(4) That the principal amount of said indebtedness is not in excess of $1,000.

(b) Indebtedness may also be cancelled when any one of the following circumstances is found:

(1) The amount of said indebtedness, including interest, is less than $10; such efforts of collection have been made as are warranted under the circumstances, and the cost of collection or of continued maintenance of accounts is deemed greater than the amount of the indebtedness;

(2) The debtor is deceased and there is no reasonable prospect of recovering from his estate;

(3) The debtor's whereabouts has remained unknown for two years and there is no reasonable prospect of obtaining collection; heads of agencies designated in § 01.5 hereof will prescribe procedures which will assure that cancellations on this ground will be made only after a diligent effort has been made to locate the debtor, including such contact with other agencies of the Department or otherwise as the amount of the indebtedness and the circumstances warrant;

(4) The debtor has been discharged of the indebtedness in any proceeding under "An act to establish a uniform system of bankruptcy throughout the United States." (11 U.S.C., sec. 1, et seq.)

designated by each agency for assistance in its regular program, or otherwise. The file relating to each debtor shall contain the formal findings required by § 01.3, together with such evidence as has been obtained in support of such findings.

In order to effect uniformity in settlements, agency procedures should also provide that, where it appears from the application of the debtor or from investigation that the debtor is otherwise indebted to the United States, to the extent practicable consultation should be had (other than in cases under §§ 01.3 (b) (1) and 01.3 (b) (4)) with any other creditor agencies, to ascertain pertinent information as to the status of such other obligation or obligations. Such information shall be considered in connection with the settlement and for inclusion in the findings.

The head of each agency shall provide for review of proposed indebtedness settlements within his agency by officers or employees designated for that purpose under such conditions as he shall determine to be adequate to insure the protection of the interests of the United States.

§ 01.5 Delegation of authority. The heads of the Agricultural Adjustment Agency, the Commodity Credit Corporation, the Farm Credit Administration, the Farm Security Administration and the Federal Crop Insurance Corporation and any other agency of the Department charged with the administration of any of the acts or programs listed in § 01.10, are hereby authorized within their respective jurisdictions, to exercise any or all of the functions prescribed by the regulations in this part. The head of each of said agencies may delegate and authorize the redelegation of any or all functions vested in him by the regulations in this part, except that the determination of any settlement shall not be delegated beyond the head of the highest field office having jurisdiction.

§ 01.6 Forms and records. The Office of Budget and Finance shall prescribe a uniform form or forms for application for settlement of indebtedness under the regulations in this part; and shall require each agency to establish records to insure the immediate availability of necessary information of operations under the regulations in this part.

Each agency shall furnish to the Office of Budget and Finance a report of operations under the regulations in this part

quarterly, or for such other periods as the Director of Finance may designate.

§ 01.7 Departmental Review Committee. There is established a committee to consist of representatives designated by the head of each of the agencies named in § 01.5 above, by the Solicitor and the Director of Finance, with the designee of the Director of Finance as Chairman, to review the information furnished to the Office of Budget and Finance for the purposes of reporting, when necessary, to the Secretary and the War Food Administrator, and to recommend appropriate amendments to the regulations in this part. For the purpose of assuring uniformity in the administration of the regulations in this part, the committee shall be furnished promptly for review and comment, copies of instructions and procedures prescribed by the interested agencies.

§ 01.8 Penalties. The act prescribes the punishment by a fine of not more than $1,000 or imprisonment for not more than one year, or both, upon conviction, for anyone making any material representation, knowing it to be false, for the purpose of influencing in any way the action of the Secretary or of any person acting under his authority in connection with any compromise, adjustment, or cancellation of indebtedness provided for in the act. The act also prohibits the acceptance by any officer, employee, or other person to whom is delegated any power or function under the act, of any fee, commission, gift, or other consideration, directly or indirectly, for or in connection with any transaction or business relating to the compromise, adjustment, or cancellation of indebtedness under the act.

§ 01.9 Indebtedness referred to Secretary of the Treasury or the Attorney General. No settlement shall be effected under the regulations in this part if the indebtedness is pending before the Secretary of the Treasury for compromise, or the Attorney General for collection.

§ 01.10 Scope of the act. The authorities herein prescribed are applicable to indebtedness arising from loans or payments made or credit extended pursuant to the following acts and programs:

1. Act of July 1, 1918 (40 Stat. 635), Loans for seed.

2. Act of March 3, 1921 (41 Stat. 1347), Loans for seed.

3. Act of March 20, 1922 (42 Stat. 467), Loans for seed.

4. Act of April 26, 1924 (43 Stat. 110), Loans for seed and feed.

5. Act of February 25, 1927 (44 Stat. 1245), Loans for seed, feed and fertilizer.

6. Act of February 28, 1927 (44 Stat. 1251), Hurricane damage loans.

7. Act of February 25, 1929 (45 Stat. 1306), as amended May 17, 1929 (46 Stat. 3), Loans for seed, feed and fertilizer and to vegetable and fruit growers.

8. Act of March 3, 1930 (46 Stat. 78-79), as amended April 24, 1930 (46 Stat. 254), Loans for seed, feed, fertilizer, fuel and oil.

9. Act of December 20, 1930 (46 Stat. 1032), as amended February 14, 1931 (46 Stat. 1160), Loans for seed, feed, fertilizer, fuel and oil and crop production, and for assisting in forming local agricultural credit corporations, livestock loan companies, or like organizations.

10. Act of February 23, 1931 (46 Stat. 1276), Loans for seed, feed, fertilizer, fuel and oil. 11. Act of January 22, 1932 (47 Stat. 5), Loans for crop production.

12. Act of March 3, 1932 (47 Stat. 60), Loans for agricultural credit corporations, livestock loan companies, or like organizations.

13. Act of February 4, 1933 (47 Stat. 795), Loans for crop production and harvesting. 14. Act of February 23, 1934 (48 Stat. 354), Loans for crop production and harvesting.

15. Act of June 19, 1934 (48 Stat. 1056), Loans for emergency relief and for seed, feed, freight, summer fallowing and similar purposes.

16. Act of February 20, 1935 (49 Stat. 28), Loans for crop production and harvesting. 17. Act of March 21, 1935 (49 Stat. 50), appropriation to effectuate Act of February 20, 1935.

18. Act of April 8, 1935 (49 Stat. 115), E. O. 7305, Loans for crop production and harvesting.

19. Act of January 29, 1937 (50 Stat. 5), Loans for crop production and harvesting.

20. Act of February 4, 1938 (52 Stat. 27), Loans for crop production and harvesting. 21. Agricultural Adjustment Act (of 1933), as heretofore amended.

22. Bankhead Cotton Act of April 21, 1934, as heretofore amended, on account of the several cotton tax-exemption certificate pools.

23. Jones-Connally Cattle Act of April 7, 1934, as heretofore amended.

24. Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Stat. 1056), as heretofore amended, (amendment to Agricultural Adjustment Act of 1933, relating to cotton option contracts.)

25. Kerr Tobacco Act of June 28, 1934 and Public Resolution No. 76 of March 14, 1936 as heretofore amended.

26. Section 32 of the Act of August 24, 1935 and related legislation, as heretofore amended.

27. Supplemental Appropriation Act, fiscal year 1936, as heretofore amended, (rental

30. Sections 303 and 381 (a) of the Agricultural Adjustment Act of 1938 and related or subsequent legislation as heretofore amended, authorizing parity or adjustment payments.

31. Title IV and Title V of the Agricultural Adjustment Act of 1938 and related legislation, as heretofore amended, (Cotton Pool Participation Trust Certificates (Title IV), and crop insurance (Title V)).

32. Any other Act of Congress heretofore enacted authorizing payments to farmers under programs administered through the Agricultural Adjustment Agency.

33. Act of April 8, 1935 (49 Stat. 115), Loans for rural rehabilitation and relief.

34. Act of June 22, 1936 (49 Stat. 1608), Loans for rural rehabilitation and relief.

35. Act of February 9, 1937 (50 Stat. 8), Loans for rural rehabilitation and relief.

36. Act of June 29, 1937 (50 Stat. 352), Loans for rural rehabilitation and relief. 37. The Bankhead-Jones Farm Tenant Act (50 Stat. 522 et seq.).

38. The Water Facilities Act of August 28, 1937 (50 Stat. 869 et seq.).

39. Act of March 2, 1938 (52 Stat. 83, Pub. Res. 80), Loans for rural rehabilitation and relief.

40. Act of June 21, 1938 (52 Stat. 809), Loans for rural rehabilitation and relief.

41. Act of June 30, 1939 (53 Stat. 927), Loans for rural rehabilitation and relief.

42. Act of June 26, 1940 (54 Stat. 611), Loans for rural rehabilitation and relief. 43. Act of July 1, 1941 (55 Stat. 408), Loans for rural rehabilitation.

44. Act of July 22, 1942 (56 Stat. 664), Loans for rural rehabilitation.

45. Act of July 12, 1943 (57 Stat. 392), Loans for rural rehabilitation.

46. Act of June 28, 1944 (58 Stat. 425), Loans for rural rehabilitation.

47. Flood restoration loans, Second Deficiency Appropriation Act, 1943 (57 Stat. 537, 542).

48. Subsequent legislation appropriating or making available funds for such loans as those listed under numbers 33 through 47, made by or through Resettlement Administration or the Farm Security Administration.

49. Commodity loan, purchase, sale and other programs of the Commodity Credit Corporation;

50. Crop-insurance programs formulated pursuant to Title V of the Agricultural Adjustment Act of 1938 (the Federal Crop Insurance Act), and any amendment or supplement thereto heretofore or hereafter enacted.

51. Any indebtedness of farmers evidenced by notes or accounts receivable, title to which has been acquired in the liquidation of loans to cooperative associations made under the provisions of the Act of June 15, 1929 (46 Stat. 11).

Sec. 3.79

3.86

Emergency Crop and Feed Loan Division; functions, powers, authority, and duties of Director, Assistant Director, and Chief of Credits and Collections. [Revised]

Delegation of authority to regional managers. [Revised]

§ 3.6 Authority, and designation of order of precedence, of certain officers to act as Land Bank Commissioner in the absence of the latter. J. R. Isleib, Depuuty Land Bank Commissioner, is authorized and empowered to execute and perform any and all functions, powers, authority, and duties which the Land Bank Commissioner is authorized and empowered to execute or perform in the event the Land Bank Commissioner is absent or unable to serve for any reason.

Carl Colvin, Assistant Deputy Land Bank Commissioner, is authorized and empowered to execute and perform any and all functions, powers, authority, and duties which the Land Bank Commissioner is authorized and empowered to execute or perform in the event the Land Bank Commissioner and Deputy Land Bank Commissioner Isleib are absent or unable to serve for any reason.

H. N. Thomas, Acting Chief, Appraisal Subdivision, is authorized and empowered to execute and perform any and all functions, powers, authority, and duties which the Land Bank Commissioner is authorized and empowered to execute or perform in the event the Land Bank Commissioner, Deputy Land Bank Commissioner Isleib, and Assistant Deputy Land Bank Commissioner Colvin are absent or unable to serve for any reason.

Ernest Diebel, Chief, National Farm Loan Association Section, is authorized and empowered to execute and perform any and all functions, powers, authority, and duties which the Land Bank Commissioner is authorized and empowered to execute or perform in the event the Land Bank Commissioner, Deputy Land Bank Commissioner Isleib, Assistant Deputy Land Bank Commissioner Colvin, and H. N. Thomas, Acting Chief, Appraisal Subdivision, are absent or unable to serve for any reason.

James B. Davis, Assistant Deputy Land Bank Commissioner, is authorized and empowered to execute and perform any and all functions, powers, authority, and duties which the Land Bank Commissioner is authorized and empowered to execute or perform in the event the Land Bank Commissioner, Deputy Land Bank

Commissioner Isleib, Assistant Deputy Land Bank Commissioner Colvin, H. N. Thomas, Acting Chief, Appraisal Subdivision, and Ernest Diebel, Chief, National Farm Loan Association Section, are absent or unable to serve for any reason. (Secs. 39, 40, 48 Stat. 50, 51; 12 U.S.C. 637, 636. E.O. 6084, Mar. 27, 1933; 6 CFR 1.1 (m). Sec. Memo. 846, Jan. 6, 1940) [FCA Order 426, Sept. 25, 1945,

10 F.R. 12475]

§ 3.6-50 Authority and designation of certain officers to act as Deputy Land Bank Commissioner in the absence of the latter. Carl Colvin, Assistant Deputy Land Bank Commissioner, H. N. Thomas, Acting Chief, Appraisal Subdivision, Ernest Diebel, Chief, National Farm Loan Association Section, and James B. Davis, Assistant Deputy Land Bank Commissioner, severally and not jointly and in the order named, are authorized to execute and perform any and all functions, powers, authority, and duties which the Deputy Land Bank Commissioner is now or hereafter authorized and empowered to execute or perform in the event that the Deputy Land Bank Commissioner is absent or unable to act for any reason. (Secs. 39, 40, 48 Stat. 50, 51; 12 U.S.C. 637, 636. E.O. 6084, Mar. 27, 1933; 6 CFR 1.1 (m)) [FCA Order 426, Sept. 25, 1945, 10 F.R. 12477]

§ 3.41

Authority, and designation of order of precedence, of Deputy Production Credit Commissioner, Assistant Production Credit Commissioner, and Assistant Deputy Production Credit Commissioners to act as Production Credit Commissioner in the absence of the latter. A. T. Esgate, Deputy Production Credit Commissioner, is authorized to execute and perform all functions, powers, authority, and duties pertaining to the office of Production Credit Commissioner in the event that the Production Credit Commissioner is unavailable to act by reason of absence from the central office of the Farm Credit Administration or for any other cause.

K. L. Scott, Assistant Production Credit Commissioner, is authorized to execute and perform all functions, powers, authority, and duties pertaining to the office of Production Credit Commissioner in the event that the Production Credit Commissioner and Deputy Production Credit Commissioner Esgate are both unavailable to act by reason of absence from the central office of the Farm Credit Administration or for any other cause.