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72 Stat. 478.

"(C) if consigned to a seed cleaning or processing establishment, to be cleaned or processed for seeding purposes: Provided, That (i) this fact is so stated in the invoice or other records accompanying and pertaining to such seed if the seed is in bulk or if the seed is in containers and in quantities of twenty thousand pounds or more, (ii) this fact is so stated on attached labels if the seed is in containers and in quantities less than twenty thousand pounds, and (iii) any such seed later to be labeled as to origin and/or variety shall be labeled as to origin and/or variety in accordance with rules and regulations prescribed under section 402 of this Act."

SEC. 11. Section 204 of said Act (7 U. S. C. 1574) is amended to read: 53 Stat. 1282. "SEC. 204. The use of a disclaimer, limited warranty, or nonwarranty Disclaimers, clause in any invoice, advertising, labeling, or written, printed, or nonwarranties, graphic matter, pertaining to any seed shall not constitute a defense, etc. or be used as a defense in any way, in any prosecution or other proceeding brought under the provisions of this Act, or the rules and regulations made and promulgated thereunder. Nothing in this section is intended to preclude the use of a disclaimer, limited warranty, or nonwarranty clause as a defense in any proceeding not brought

under this Act."

SEC. 12. Section 301 (a) of said Act (7 U. S. C. 1581 (a)) is amended 53 Stat. 1282. by adding at the end thereof a new paragraph (4) to read as follows: Importation. “(4) any seed containing 10 per centum or more of any vege- Prohibition. table seeds unless the invoice pertaining to such seed and any

other labeling of such seed bear the name of each kind and variety

of vegetable seed present."

SEC. 13. Section 302 (a) of said Act (7 U. S. C. 1582 (a)) is 53 Stat. 1283. amended by inserting the words "owner or" before the word "con- Procedure. signee" wherever the latter appears except in the two provisos therein; and by deleting said provisos and substituting therefor, respectively, the following: "Provided, That the Secretary of the Treasury may Bond. authorize the delivery of seed or screenings which are being imported or offered for import to the owner or consignee thereof, pending decision as to the admission of such seed or screenings and for staining, cleaning, labeling, or other reconditioning if required to bring such seed or screenings into compliance with the provisions of this Act, upon the execution by such owner or consignee of a good and sufficient bond conditioned upon redelivery of the seed or screenings upon demand unless redelivery is waived because the seed is reconditioned to bring it into compliance with this Act or is destroyed under Government supervision under this Act, and providing for the payment of such liquidated damages in the event of default as may be required pursuant to regulations of the Secretary of the Treasury: And provided further. That all expenses incurred by the United Expenses. States (including travel, per diem or subsistence, and salaries of officers or employees of the United States) in connection with the supervision of staining, cleaning, labeling, other reconditioning, or destruction, of seed or screenings under this title shall be reimbursed to the United States by the owner or consignee of the seed or screenings, and such reimbursements shall be recredited to the appropriation from which the expenses were paid, the amount of such expenses to be determined in accordance with joint regulations under section 402 of this Act, and all expenses in connection with the storage, cartage, and labor on the seed or screenings which are refused admission or delivery, shall be paid by the owner or consignee, and in default of such payment shall constitute a lien against future importations made by such owner or consignee."

53 Stat. 1283.

72 Stat. 479.

SEC. 14. Section 302 of said Act (7 U. S. C. 1582) is further amended by adding at the end thereof a new subsection (d) to read as follows:

Nonapplicability. "(d) The provisions of this title prohibiting the importation of seed that is adulterated or unfit for seeding purposes shall not apply

53 Stat. 1285.

Unlawful act.

Effective date.

"(1) when seed grown in the United States is returned from a foreign country without having been admitted into the commerce of any foreign country: Provided, That there is satisfactory proof as provided for in the joint rules and regulations prescribed under section 402 of this Act, that the seed was grown in the United States and was not admitted into the commerce of a foreign country and was not commingled with other seed, or

"(2) when seed is imported for sowing for experimental or breeding purposes and not for sale: Provided, That declarations are filed, and importations are limited in quantity, as provided for in the rules and regulations prescribed under section 402 of this Act, to assure that the importations are for experimental or breeding purposes."

SEC. 15. Section 306 of said Act (7 U. S. C. 1586) is amended by adding at the end thereof a new subsection (c) to read as follows:

(c) To make any false or misleading representation with respect to any seed subject to this title being imported into the United States or offered for import: Provided. That this subsection shall not be deemed violated by any person if the false or misleading representation is the name of a variety indistinguishable in appearance from the seed being imported or offered for import and the records and other pertinent facts reveal that such person relied in good faith upon representations with respect to the name of the indistinguishable variety made by the shipper of the seed."

SEC. 16. This Act, and the amendments made hereby, shall take effect upon the date of enactment.

Approved August 1, 1958.

85th Congress, H. R. 13268

August 19, 1958

AN ACT

72 Stat. 635.

Authorizing Commodity Credit Corporation to purchase flour and cornmeal and donating same for certain domestic and foreign purposes.

458, 70 Stat.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That at any time Agriculture. Commodity Credit Corporation has wheat or corn available for dona- Flour and tion pursuant to clauses (3) or (4) of section 416 of the Agricultural cornmeal Act of 1949, as amended, section 210 of the Agricultural Act of 1956, donations. or title II of the Agricultural Trade Development and Assistance 68 Stat. 457, Act, as amended, the Corporation, in lieu of processing all or any 202. part of such wheat or corn into flour or meal, may purchase flour or meal in quantities not to exceed the equivalent of such wheat or corn so available on the date of purchase and donate such flour and meal pursuant to clauses (3) or (4) of said section 416 and to said section 210 and make such flour or meal available to the President, pursuant to said title II and may sell, without regard to the provisions of section 407 of the Agricultural Act of 1949, as amended, a quantity of wheat and corn not to exceed that which is equivalent to the quantity of flour and meal so purchased.

Approved August 19, 1958.

7 USC 1431, 1859, 1727.

85th Congress, S. 3333
August 25, 1958

AN ACT

72 Stat. 840.

To facilitate the insurance of loans under title I of the Bankhead-Jones Farm Tenant Act, as amended, and the Act of August 28, 1937, as amended (relating to the conservation of water resources), and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, title I of the Bankhead-Jones Bankhead-Jones Farm Tenant Act, as amended (7 U. Š. C. 1000 and Farm Tenant the following), is further amended as follows:

(a) The following new section 18 is added:

"SEC. 18. (a) The Secretary of Agriculture is authorized:

"(1) To make loans complying with the requirements of title I of this Act for the purpose of insuring and selling such loans to lenders other than the United States. Any security instrument taken in connection with such loan shall create a lien running to the United States, not withstanding the fact that the note may be held by such lender or his assignee;

"(2) To insure and make commitments to insure such loans, which, when endorsed for insurance, shall be covered by the insurance provisions of this title;

"(3) To sell such loans at an annual charge, at a rate to be determined by the Secretary, of not less than 1 per centum of the unpaid principal obligation from time to time outstanding on the loan, such charge to be retained by the Secretary out of interest payments made by the borrower: Provided, That the total of the rate of such charge plus the rate of return to the holder of the, note shall not exceed the interest rate specified in the note. Out of the charges so collected an amount not in excess of one-half of 1 per centum of such unpaid principal obligations shall be deposited in and become a part of the fund. The remainder of such charges collected shall be deposited in the Treasury to the credit of the Secretary and may be transferred annually to the administrative expense account of the Farmers Home Administration and become merged therewith. Each such loan shall be sold at the full amount of the unpaid balance thereof at the time of sale, but no loan shall be sold if such balance exceeds 90 per centum of the amount certified by the county committee to be the value of the farm, less any prior lien indebtedness at the time the loan was made or upon a determination of such fact by the Secretary at the time of sale;

Act, amendment. Farm loans, insurance.

50 Stat. 522.

"(4) To make loans out of moneys in the fund for the purpose of insuring and selling the same under this section: Provided, however, That no loan made under this item (4) shall be in excess of 90 per centum of the amount certified by the county committee to be the value of the farm less any prior lien indebtedness: And provided further, That no loan shall be made under this item (4) unless the Secretary has reasonable assurance that it can be sold without undue delay. The Secretary may, at his discretion, utilize the provisions of subsections 13 (b) and 13 (c) of this title to borrow from the Secretary of the Treasury an additional sum not in excess of $5,000,000 for deposit in the fund for this purpose and said subsections are hereby extended to cover such borrowings for the purpose of making loans under this item (4) and under item (4) of subsection 11 (a) of the Act of August 28, 1937, as amended (relating to the con- Post, p. 342. servation of water resources). The amount of the principal obligations on loans made under this item (4) and not disposed of under this section, plus the amount of the principal obligations on loans made out of moneys in the fund under said item (4) of subsection 11 (a) of the Act of August 28, 1937, as amended, and not disposed

72 Stat. 841.

60 Stat. 1072. 7 USC 1005c.

60 Stat. 1079.

7 USC 1000 et seq.

16 USC 590r590x-3.

50 Stat. 869;

68 Stat. 734.

of under such section 11, shall not exceed the aggregate sum of $5,000,000 at any one time.

(b) The interest rate shall be as provided in section 3 (b) (2) of this title and the borrower shall not be required to pay any additional charges for insurance of the loan, but the Secretary may require the payment of such appraisal and delinquency charges as he deems proper.

"(c) The amount of the principal obligations on loans made under item (a) (4) of this section shall be included in computing the aggregate amount of the principal obligations which may be insured in any one fiscal year, as provided in section 12 (b) of this title, at the time such loans are made. The amount of the principal obligations on any other loans made by the Secretary and insured under this section shall not be included in computing said aggregate amount.

“(d) Loans made from funds advanced by lenders other than the United States may be insured by the Secretary upon terms and conditions consistent with the provisions of this section. Loans made or insured under this section shall be subject to all the provisions of this title except as otherwise provided in this section.

"(e) Any loan heretofore or hereafter made or insured under this title may be converted to an insured loan under this section at the discretion of the Secretary, and any expenses in connection with such conversion may be paid out of funds available for administrative

expenses.

(f) The Secretary is further authorized to sell any loan heretofore or hereafter made or insured under this title without insurance thereof upon the written consent of the borrower, or without such consent when the borrower has failed to comply with his agreement to refinance the indebtedness at the request of the Secretary. Such loan shall be sold at the full amount of the unpaid balance thereof, and upon such sale the Secretary is authorized to assign the security instrument and evidence of debt in such manner that the United States shall have no further right or obligation with respect to the loan."

(b) The third sentence of section 13 (b) is amended to read: "Such notes shall have such maturities as the Secretary may determine with the approval of the Secretary of the Treasury, and shall bear interest at a rate fixed by the Secretary of the Treasury, taking into consideration the current average market yields of outstanding marketable obligations of the United States having maturities comparable to the loans made or insured by the Secretary."

(c) Section 15 (a) is amended to add the following sentence: "Section 5200 of the Revised Statutes (12 U. S. C. 84) is hereby amended to add a new paragraph bearing the next number after that of the last paragraph of the present section 5200 of the Revised Statutes and reading as follows: 'Obligations insured by the Secretary of Agriculture pursuant to the Bankhead-Jones Farm Tenant Act, as amended, or the Act of August 28, 1937, as amended (relating to the conservation of water resources), shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus."

SEC. 2. The Act entitled "An Act to promote conservation in the arid and semiarid areas of the United States by aiding in the development of facilities for water storage and utilization, and for other purposes", approved August 28, 1937, as amended (16 U. S. C. 590r590x-3), is further amended by inserting at the end of said Act the following new section:

"SEC. 11. (a) The Secretary of Agriculture is authorized:

"(1) To make loans complying with the requirements of this Act for the purpose of insuring and selling such loans to lenders other

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