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EXTENSION OF THE TERMS AND PROVISIONS OF PRES

ENT RIO GRANDE COMPACT

MAY 20, 1935.-- Referred to the House Calendar and ordered to be printed

Mr. KNUTE HILL, from the Committee on Irrigation and Reclamation,

submitted the following

REPORT

[To accompany H. R. 7873]

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The Committee on Irrigation and Reclamation, to whom was referred the bill (H. R. 7873) to give the consent and approval of Congress to the extension of the terms and provisions of the present Rio Grande compact signed at Santa Fe, N. Mex., on February 12, 1929, and heretofore approved by act of Congress dated June 17 1930 (Public, No. 370, 71st Cong., 46 Stat. 767), having considered the same, report thereon with a recommendation that it do pass.

This bill was referred to the Secretary of the Interior and his favorable report is attached hereto and made a part of this report.

DEPARTMENT OF THE INTERIOR,

Washington, May 10, 1935. Hon. COMPTON I. WHITE, Chairman Committee on Irrigation and Reclamation,

House of Representatives. MY DEAR MR. WHITE: I have received your letter of May 4, enclosing for report by me a copy of H. R. 7873, to give the consent and approval of Congress to a 2-year extension from June 1, 1935, of the provisions of the existing Rio Grande compact, approved by Congress June 17, 1930 (46 Stat. 767).

The files do not contain å showing that the proposed extension has been adopted by Texas or by Colorado. Section 1 of the bill recites that the extension was ratified by Colorado by act approved April 13, 1935, and by Texas by act approved April 18, 1935. "On the assumption that such recital corresponds to the facts, there is no objection on the part of the Department to the enactment of the bill. Sincerely yours,

HAROLD L. ICKES,

Secretary of the Interior. O

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FARM CREDIT ACT OF 1935

May 20, 1935.-Ordered to be printed

Mr. JONES, from the committee of conference, submitted the

following

CONFERENCE REPORT

[To accompany S. 1384)

The committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 1384) to amend the Emergency Farm Mortgage Act of 1933, to amend the Federal Farm Loan_Act, to amend the Agricultural Marketing Act, and to amend the Farm Credit Act of 1933, and for other purposes, having met, after full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the Senate recede from its disagreement to the amendment of the House and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the amendment of the House, insert the following:

That this Act may be cited as the Farm Credit Act of 1935."

Sec. 2. (a) Section 32 of the Emergency Farm Mortgage Act of 1933, as amended (U.S.C., Supp. VII, title 12, sec. 1016), is further amended by striking out of the third sentence the following: "and made for the purpose of reducing and refinancing an existing mortgage".

(6) Such section 32, as amended, is further amended by striking out the fifth sentence and inserting in lieu thereof the following: Loans may be made under this section for any of the purposes for which Federal land banks are authorized by law to make loans, and for the following additional purpose, and none other: Refinancing, either in connection with proceedings under chapter VIII of the Bankruptcy Act of July 1, 1898, as amended, or otherwise, any indebtedness, secured or unsecured, of the farmer, or which is secured by a lien on all or any part of the farm property accepted as security for the loan.

(c) Such section 32, as amended, is further amended by striking out the seventh sentence and inserting in lieu thereof the following: "As used in this section, (1) the term "farmer' means any person who is at the time, or shortly to become, bona fide engaged in farming operations, either personally or through an agent or tenant, or the principal part of whose income is derived from farming operations or livestock raising, and includes a personal representative of a deceased farmer; (?) the term 'personincludes an individual or a corporation engaged in the raising of livestock; and (3) the term 'corporation includes any incorporated association, but no such loan shall be made to a corporation (A)

; unless all the stock of the corporation is owned by individuals themselves personally actually engaged in the raising of livestock on the land to be mortgaged as security for the loan, except in a case where the Land Bank Commissioner permits the loan if at least 75 per centum in value and number of shares of the stock of the corporation is owned by the individuals personally actually so engaged, and (B) unless the owners of at least 75 per centum in value and number of shares of the stock of the corporation assume personal liability for the loan. No loan shall be made to any corporation which is a subsidiary of, or affiliated (either directly or through substantial identity of stock ownership) with, a corporation ineligible to procure a loan in the amount applied for."

(d) Such section 32, as amended, is further amended by striking out the eighth and ninth sentences and inserting in lieu thereof the following: "Until February 1, 1940, the Land Bank Commissioner shall, in his name, make loans under this section on behalf of the Federal Farm Mortgage Corporation, and may make such loans in cash or in bonds of the corporation, or if acceptable to the borrower, in consolidated farm loan bonds; but no such loans shall be made by him after February 1, 1940, except for the purpose of refinancing loans previously made by him under this section. As much as may be necessary of the assets of the corporation, including the bonds (and proceeds thereof) issued under section 4 of the Federal Farm Mortgage Corporation Act, may be used for the purposes of this section.

(e) Such section 32, as amended, is further amended by inserting at the end thereof the following: Any Federal land bank, when duly authorized by the Land Bank Commissioner and the Federal Farm Mortgage Corporation, shall have the power to erecute any instrument relating to any mortgage taken to secure a loan made or to be made under this section, or relating to any property included in any such mortgage, or relating to any property acquired by the Land Bank Commissioner and/or the Federal Farm Mortgage Corporation. Any such instrument heretofore or hereafter executed on behalf of the Land Bank Commissioner and 'or the Federal Farm Mortgage Corporation by a Federal land bank, through its duly authorized officers, shall be conclusively presumed to have been duly authorized by the Land Bank Commissioner and the Federal Farm Mortgage Corporation."

Sec. 3. (a) Effective July 1, 1935, the first sentence of paragraph Twelfth" of section 12 of the Federal Farm Loan Act, as amended, is amended by striking out the following: within two years after such date, shall not exceed 492 per centum per annum for all interest payable on installment dates occurring within a period of five years commencing sirty days after the date this paragraph takes effect; and no payment of the principal portion of any installment of any such loan shall be required during such five-year period if the borrower shall not be in default with respect to any other condition or covenant of his mortgage", and inserting in lieu thereof the following: after such date, shall not exceed 3% per centum per annum for all interest payable on installment dates occurring within a period of one year commencing July 1, 1935, and shall not exceed 4 per centum per annum for all interest payable on installment dates occurring within a period of two years commencing July 1, 1936; and no payment of the principal portion of any installment of any such loan outstanding on the date of the enactment of the Farm Credit Act of 1935 shall be required prior to July 11, 1938, if the borrower shall not be in default with respect to any other condition or covenant of his mortgage."

(b) Effective July 1, 1935, the second sentence of such paragraph Twelfth" is amended by striking out the following: "the rate of interest on such loans for such five-year period shall be 5 per centum in lieu of 4% per centum", and inserting in lieu thereof: "the rates of interest paid for the respective periods above specified shall be one-half of 1 per centum per annum in excess of the rates of interest paid during the corresponding periods by borrowers on mortgage loans made through national farm loan associations

Sec. 4. The fourth sentence of section 24 of the Federal Farm Loan Act, as amended (U. S. C., Supp. VII, title 12, sec. 913), is further amended by striking out the period at the end thereof and inserting in lieu thereof a colon and the following: "Provided, that the declaration and payment of any such dividend shall be subject to the approval of the Land Bank Commissioner."

Sec. 5. (a) Paragraph (1) of subsection (a) of section 202 of the Federal Farm Loan Act, as amended (U. S. C., Supp. VII, title 12, sec. 1031), is further amended by striking out that portion of the paragraph which follows the second semicolon and inserting in lieu thereof the following: "and to discount for, or purchase from, any production credit association or bank for cooperatives organized under the Farm Credit Act of 1933, or any production credit association in which a Production Credit Corporation organized under such Act holds stock, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation presented by such association or bank, and to make loans and advances direct to any such association or bank secured by such collateral as may be approved by the Governor of the Farm Credit Administration;"'.

(6) Paragraph (3) of subsection (a) of such section 202, as amended, is further amended by striking out the period at the end thereof and inserting in lieu thereof a comma and the following: "at such rates of commission as may be approved by the Governor of the Farm Credit Administration."

(c) Subsection (d) of such section 202, as amended (U. S. C., Supp. VII, title 12, sec. 1034), is hereby repealed.

Sec. 6. (a) Subsection (a) of section 203 of the Federal Farm Loan Act (U. S. C., title 12, sec. 1041) is amended by striking out the proviso

. and inserting in lieu thereof the following: Provided, That the aggregate amount of the outstanding debentures and similar obligations issued individually by any Federal intermediate credit bank, together with the amount of outstanding consolidated debentures issued for its benefit and account, shall not exceed ten times the surplus and paid-in capital of such bank.

(6) Such section 203 (U. S. C., title 12, secs. 1041-1043) is further amended by adding at the end thereof the following new subsections:

'(d) Whenever it shall appear desirable to issue consolidated debentures of the twelve Federal intermediate credit banks and to sell them through a common selling agency, and the Federal intermediate credit banks shall, by resolutions, consent to the same, the banks may issue and

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