pliances, or equipment. Such loans shall be for such terms, subject to such conditions, and so secured as reasonably to assure repayment thereof, and shall be at a rate of interest of 2 per centum per annum; interest rates on the unmatured and unpaid balance of any loans made pursuant to this section prior to the effective date of this amendment shall be adjusted to 2 per centum per annum. (May 20, 1936, ch. 432, Title I, § 5, 49 Stat. 1365, amended Sept. 21, 1944, ch. 412, Title V, § 502(b), 58 Stat. 739; Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948.)

Amendments.—Act Oct. 28, 1949, cited to text, inserted ""Title I' in credit. Act Sept. 21, 1944, cited to text, amended section by striking out "at a rate of interest such obligations were issued", and inserted in lieu thereof "at a rate of interest *** 2 per centum per annum.

8906. Appropriations authorized.

1949 amendment.-Act Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948, inserted "Title I" in credit.

8907. Acquisition of property pledged for loans; disposition; sale of pledged property by borrower.-The Administrator is authorized and empowered to bid for and purchase at any foreclosure or other sale, or otherwise to acquire, property pledged or mortgaged to secure any loan made pursuant to this chapter; to pay the purchase price and any costs and expenses incurred in connection therewith from the sums authorized in section 903 of this title; to accept title to any property so purchased or acquired in the name of the United States of America; to operate or lease such property for such period as may be deemed necessary or advisable to protect the investment therein, but not to exceed five years after the acquisition thereof; and to sell such property so purchased or acquired, upon such terms and for such consideration as the Administrator shall determine to be reasonable.

No borrower of funds under section 904 or section 922 of this title shall, without the approval of the Administrator, sell or dispose of its property, rights, or franchises, acquired under the provisions of this chapter, until any loan obtained from the Rural Electrification Administration, including all interest and charges, shall have been repaid. (May 20, 1936, ch. 432, Title I, § 7, 49 Stat. 1365, amended Oct. 28, 1949, ch. 776, § § 2, 4(f), 63 Stat. 948.)

1949 amendment.-Act Oct. 28, 1949, cited to text, inserted "or section 922" after "904" in second paragraph, and inserted "Title I" in the credit.

§§ 908-911.

1949 amendment.-Sections amended by Act Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948, which designated said sections as Title I of Rural Électrification Act of 1936.

§ 912. Extension of time for repayment of loans.-The Administrator is authorized and empowered to extend the time of payment of interest or principal of any loans made by the Administrator pursuant to this chapter: Provided, however, That with respect to any loan made under section 904 or section 922 of this title, the payment of interest or principal shall not be extended more than five years after such payment shall have become due, and with respect to any loan made under section 905 of this title, the payment of principal or interest shall not be extended more than two years after such payment shall have become due: And provided further, That the provisions of this section shall not apply to any obligations or the security therefor

which may be held by the Reconstruction Finance Corporation under the provisions of section 903 of this title. (May 20, 1936, ch. 432, Title I, § 12, 49 Stat. 1366, amended Oct. 28, 1949, ch. 776, §§ 2, 4(f), 63 Stat. 948.)

1949 amendment.-Act Oct. 28, 1949, cited to text, inserted "or section 922” after "904" in first proviso, and inserted "Title I" in the credit.

§§ 913, 914.

1949 amendment.-Act Oct. 28, 1949, ch. 776, § 2, 63 Stat. 948, inserted Title I' in credit.

SUBCHAPTER II.-RURAL TELEPHONE SERVICE

§ 921. Congressional declaration of policy.-It is declared to be the policy of the Congress that adequate telephone service be made generally available in rural areas through the improvement and expansion of existing telephone facilities and the construction and operation of such additional facilities as are required to assure the availability of adequate telephone service to the widest practicable number of rural users of such service. (Oct. 28, 1949, ch. 776, § 1, 63 Stat. 948.)

Codification.-Section is composed of the first sentence of section 1 of Act Oct. 28, 1949, cited to text. The second sentence of section 1 of said act, which provided that: "In order to effectuate this policy, the Rural Electrification Act of 1936 [sections 901-914 of this title] is amended as hereinafter provided.", was omitted.

Section was not enacted as part of Title II of the Rural Electrification Act of 1936, sections 922-924 of this title.

§ 922. Loans for rural telephone service. From such sums as are from time to time made available by the Congress to the Administrator for such purpose, pursuant to section 903 of this title, the Administrator is authorized and empowered to make loans to persons now providing or who may hereafter provide telephone service in rural areas and to cooperative, nonprofit, limited dividend, or mutual associations. Except as otherwise provided by this subchapter, such loans shall be made under the same terms and conditions as are provided in section 904 of this title, for the purpose of financing the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems to furnish and improve telephone service in rural areas: Provided, however, That the Administrator, in making such loans, shall give preference to persons providing telephone service in rural areas, and to cooperative, nonprofit, limited dividend, or mutual associations: And provided further, That for a period of one year from and after October 28, 1949 applications for loans received by the Administrator from persons who on October 28, 1949 are engaged in the operation of existing telephone service in rural areas shall be considered and acted upon before action is taken upon any application received from any other person for any loan to finance the furnishing or improvement of telephone service to substantially the same subscribers. The Administrator in making such loans shall, insofar as possible, obtain assurance that the telephone service to be furnished or improved thereby will be made available to the widest practical number of rural users. When it is determined by the Administrator to be necessary in order to furnish or improve telephone service in rural areas, such loans may be made for the improvement, expansion, construction, acquisition, and operation of telephone lines, facilities, or systems without regard to their geographical location. The Adminstrator is

further authorized and empowered to make loans for the purpose of refinancing outstanding indebtedness of persons furnishing telephone service in rural areas: Provided, That such refinancing shall be determined by the Administrator to be necessary in order to furnish and improve telephone service in rural areas: And provided further, That such refinancing shall constitute not more than 40 per centum of any loan made under this subchapter. Loans under this section shall not be made unless the Administrator finds and certifies that in his judgment the security therefor is reasonably adequate and such loan will be repaid within the time agreed, nor shall such loan be made in any State which now has or may hereafter have a State regulatory body having authority to regulate telephone service and to require certificates of convenience and necessity to the applicant unless such certificate from such agency is first obtained. In a State in which there is no such agency or regulatory body legally authorized to issue such certificates to the applicant, no loan shall be made under this section unless the Administrator shall determine (and set forth his reasons therefor in writing) that no duplication of lines, facilities, or systems, providing reasonably adequate services will result therefrom. (May 20, 1949, ch. 432, Title II, § 201, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948.)

§ 923. State regulation of telephone service.-Nothing contained in this chapter shall be construed to deprive any State commission, board, or other agency of jurisdiction, under any State law, now or hereafter effective, to regulate telephone service which is not subject to regulation by the Federal Communications Commission, under the Communications Act of 1934, including the rates for such service. (May 20, 1936, ch. 432, Title II, § 202, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948.) References in text.-The Communications Act of 1934, referred to in text, is set out as sections 151-609 of Title 47, Telegraphs, Telephones, and Radiotelegraphs.

§ 924. Definition of telephone service and rural area.-(a) As used in this subchapter the term "telephone service" shall be deemed to mean any communication service whereby voice communication through the use of electricity between the transmitting and receiving apparatus, is the principal intended use thereof, and shall include all telephone lines, facilities, or systems used in the rendition of such service; but shall not be deemed to mean telegraph services or facilities, or radio broadcasting services or facilities within the meaning of section 153 (o) of Title 47.

(b) As used in this subchapter the term "rural area" shall be deemed to mean any area of the United States not included within the boundaries of any incorporated or unincorporated city, village, or borough having a population in excess of one thousand five hundred inhabitants. (May 20, 1936, ch. 432, Title II, § 203, as added Oct. 28, 1949, ch. 776, § 5, 63 Stat. 948.)

Chapter 33.-FARM TENANCY

§1001. Power of Secretary; persons eligible; preferences; conditions for loan or mortgage.-(a) The Secretary of Agriculture (referred to in this chapter as the "Secretary") is authorized to make loans and to insure mortgages in the United States and in the Ter

ritories of Alaska and Hawaii and in Puerto Rico to persons eligible to receive the benefits of sections 1001-1005d of this title to enable such persons to acquire, repair or improve family-size farms, or to refinance indebtedness against undersized or underimproved units when loans are being made or insured by the Secretary to enlarge or improve such units. Loans may also be made to assist borrowers under said sections in making the improvements needed to adjust their farming operations to changing conditions.

(b) (1) Except with respect to veterans qualified under subsection (b) (2) of this section, only farm tenants, farm laborers, sharecroppers, and other individuals (including owners of inadequate or underimproved farm units) who obtain, or who recently obtained, the major portion of their income from farming operations, shall be eligible to receive the benefits of sections 1001-1005d of this title. In making available the benefits of said sections, the Secretary shall give preference to persons who are married, or who have dependent families, and wherever practicable, to persons who are able to make an initial down payment, or who are owners of livestock and farm implements necessary successfully to carry on farming operations. No person shall be eligible who is not a citizen of the United States. (2) Any veteran (defined herein as a person who served in the land or naval forces of the United States during any war between the United States and any other nation, and who shall have been discharged or released therefrom under conditions other than dishonorable) who intends to engage in farming as a principal occupation, and who meets the requirements of rules and regulations prescribed by the Secretary as to industry, experience, character, and other assurances of success as farmers, shall be eligible for the benefits of sections 1001-1005d of this title and their applications shall be entitled to preference over those of non-veterans.

(c) No loan shall be made, or mortgage insured for the acquisition, improvement, or enlargement of any farm unless it is of such size and type as the Secretary determines to be sufficient to constitute an efficient family-type farm-management unit and to enable a diligent farm family to carry on successful farming of a type which the Secretary deems can be carried on successfully in the locality in which the farm is situated: Provided, That loans may be made to veterans, or mortgages insured for veterans, as defined in subsection (b) (2) of this section, who have pensionable disabilities, to enable such veterans to acquire, enlarge, repair, or improve farm units of sufficient size to meet the farming capabilities of such veterans and afford them income which, together with their pensions, will enable them to meet living and operating expenses and the amounts due on their loans. (As amended Aug. 14, 1946, ch. 964, § 5, 60 Stat. 1072.)

Act Aug. 14, 1946, cited to text, amended section to authorize Secretary to insure mortgages and to exempt veterans from eligibility requirements as to loans.

Short title.-Congress in enacting amendments to this chapter, section 82h of Title 31, and amendments to section 371 of Title 12 and section 35-535 of the District of Columbia Code, provided by section 1 of Act Aug. 14, 1946, cited to text, that they should be popularly known as the "Farmers' Home Administration Act of 1946.''

Delay in liquidation of mineral rights reserved to the United States.-Act June 30, 1948, ch. 766, 62 Stat. 1166, provided: "That, notwithstanding any other pro

vision of law, no mineral interests reserved to the United States which are required to be liquidated under the terms of the Farmers' Home Administration Act of 1946 [sections 1001-1005d and 1008-1031 of this title, section 371 of Title 12, and section 82h of Title 31] shall be sold by the Secretary of Agriculture or transferred by him to appropriate agencies of the United States for disposition as surplus property of the United States until hereafter authorized by law. Nothing contained in this Act shall be construed to supersede or modify in any way the provisions of section 9 of the Farmers' Home Administration Act of 1946 [section 1031 of this title]."

Sale of reserved mineral interests, see sections 1033-1039 of this title.

Transfer and disposition of certain agencies and their assets, functions, and personnel.-Section 2 of Act Aug. 14, 1946, cited to text, as amended Apr. 28, 1947, ch. 43, § 1, 61 Stat. 55; Apr. 20, 1950, ch. 94, Title II, § 205 (a), 64 Stat. 73; May 3, 1950, ch. 152, § 7, 64 Stat. 100, provided that:

(a) The following agencies, functions, powers, and duties are hereby abolished and the following laws relating thereto repealed:

“(1) The Farm Security Administration and all of its functions, powers, and duties.

"(2) All functions, powers, and duties of the Governor of the Farm Credit Administration which relate to the making, administration, and liquidation of (a) all loans to farmers under the Act entitled 'An Act to provide for loans to farmers for crop production and harvesting during the year 1937, and for other purposes,' approved January 29, 1937 [former sections 1020i-1020n, and 10200 of Title 12]; (b) all loans identified or referred to in sections 5(b), 5(c), and 5(d) of Executive Order Numbered 6084, dated March 27, 1933 [set out as a note preceding section 636 of Title 12] and (c) all other emergency crop_production, feed, seed, drought, and rehabilitation loans, administered by the Farm Credit Administration on the effective date of this Act [Aug. 14, 1946]. "(3) All functions, powers, and duties of the National Housing Agency with respect to property, funds, and other assets which were formerly under the administration or supervision of the Farm Security Administration and were transferred to or consolidated with the National Housing Agency by Executive Order Numbered 9070 of February 24, 1942 [set out as a note under section 601 of Appendix to Title 50], except housing projects and except such other properties and assets as are now in the process of liquidation. [Functions of the National Housing Agency with respect to non-farm-housing projects and other properties remaining under its jurisdiction pursuant to this paragraph were transferred to the Public Housing Commissioner by 1947 Reorg. Plan No. 3, eff. July 27, 1947, 12 F. R. 4983, 61 Stat. 954, set out in note to section 133y-16 of Title 5, Executive Departments and Government Officers and Employees.]

"(b) All assets, funds, contracts, property, and records and all liabilities of the agencies abolished by this Act [this chapter, section 371 of Title 12, and section 82h of Title 31] and all assets, funds, contracts, property, and records which the Secretary of Agriculture, the Governor of the Farm Credit Administration, and the National Housing Administrator have been using or have acquired primarily in the administration of any function, power, or duty so abolished and all liabilities chargeable thereto shall be collected or liquidated, as the case may be, by the Secretary of Agriculture, in accordance with this Act [this chapter, section 371 of Title 12, and section 82h of Title 31] and the Bankhead-Jones Farm Tenant Act, as amended [sections 1001-1005d, 1007, and 10081029 of this title]. The Secretary shall promptly transmit to the Treasurer of the United States for appropriate credits all collections or other proceeds realized from the assets, funds, contracts and property, which are authorized to be administered, collected or liquidated by this Act [this chapter, section 371 of Title 12, and section 82h of Title 31], except that (1) the Secretary may retain so much of the personal property, such as office furniture, equipment, machines, automobiles, stationery, and office supplies, as he finds will be necessary in carrying out his duties under this Act [this chapter, section 371 of Title 12, and section 82h of Title 31] and the Bankhead-Jones Farm Tenant Act, as amended [sections 1001-1005d, 1007, and 1008-1029 of this title]; (2) until the loans obtained by the Secretary of Agriculture or the War Food Administrator from the Reconstruction Finance Corporation for carrying on the Farm Security programs have been paid, the Secretary shall pay to the Reconstruction Finance Corporation, as collected, in accordance with the terms of the applicable loan agreements, the proceeds of all assets transferred to him for administration and liquidation which are pledged as security for such loans; and (3) the proceeds