AMEND FEDERAL FARM LOAN ACT, EMERGENCY FARM MORT- THE COMMITTEE ON AGRICULTURE. SEVENTY-NINTH CONGRESS FIRST SESSION ON H. R. 2113 OF SERIAL CORD MAR 30 1245 GOVT. SOURCE A BILL TO AMEND THE FEDERAL FARM LOAN ACT, THE 70516 FEBRUARY 27-MARCH 13, 1945 Serial A Printed for the use of the Committee on Agriculture UNITED STATES WASHINGTON: 1945 73 CONTENTS 3 Page Droste, W. H., president, Federal land bank, St. Louis, Mo. Duggan, I. W., Governor, Farm Credit Administration, Kansas City, Evans, Sterling C., president, Federal land bank, Houston, Tex.. Goss, Albert S., master, the National Grange, Washington, D. C..... Ogg, W. R., representing American Farm Bureau Federation, Washing- AMEND FEDERAL FARM LOAN ACT, EMERGENCY FARM MORTGAGE ACT, FEDERAL FARM MORTGAGE CORPORATION ACT, AND SERVICEMEN'S READJUSTMENT ACT TUESDAY, FEBRUARY 27, 1945 HOUSE OF REPRESENTATIVES, (The committee met at 10 a. m. pursuant to notice, Hon. John W. Flannagan, Jr., chairman, presiding, for consideration of H. R. 2113, which is as follows:) [H. R. 2113, 79th Cong., 1st Sess.] A BILL To amend the Federal Farm Loan Act, the Emergency Farm Mortgage Act of 1933, the Federal Farm Mortgage Corporation Act, the Servicemen's Readjustment Act of 1944, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the second paragraph of section 7 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 712), is further amended by inserting between the words "three" and "members" in the last sentence thereof the words "or more", and by adding at the end thereof three new sentences as follows: "The secretary-treasurer shall be eligible for membership on the loan committee. The board of directors may empower (a) the loan committee to elect applicants to membership and (b) any two members of said committee to act as the loan committee in approving loans on behalf of the association and in electing applicants to membership in the association. No action by the loan committee shall be valid where the full committee is acting unless unanimously approved by all members or where any two of its members are acting as herein provided unless approved by both such members." (b) The first sentence of the fifth paragraph of section 9 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 745), is further amended by inserting after the words "by a majority vote of the directors" the following: ", or by the loan committee where said committee has been empowered to elect applicants to membership, and". SEC. 2. The first, second, and third paragraphs of section 10 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 751, 752, and 753), are further amended to read as follows: "Whenever an application for a mortgage loan is made to a national farm-loan association, the loan committee provided for in section 7 of this Act shall forthwith make, or cause to be made, such investigation as it may deem necessary as to the character and solvency of the applicant, and the sufficiency of the land offered as security. The committee may request a report on the value of the land by a land bank appraiser appointed under the authority of section 3 of this Act, in which event such an appraiser shall investigate and make a written report to the association upon the land offered as security. The committee shall cause written report to be made of the results of such investigation or investigations as it has required to be made and shall, if it concurs in such report, approve the same in writing. No loan shall be made unless the report is favorable. After the investigation required in this paragraph has been made, the association has requested and received a report upon the value of the land by a land bank appraiser, and the loan committee has reached an agreement as to the amount and terms of the loan which may be offered to the applicant, if such amount is not in excess of 65 per centum of the normal value of the farm offered as security as determined by said appraiser the secretary-treasurer may notify the applicant |