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(c) The committee shall meet on the call of the committee chairman, or on the call of such other person as the Secretary may designate. Two members of the committee shall constitute a quorum. The Secretary shall prescribe rules governing the procedure of the committees, furnish forms and equipment necessary for the performance of their duties, and authorize and provide for the compensation of such clerical assistants as he deems may be required by any committee.

(d) Committees established under this chapter shall, in addition to the duties specifically imposed under this chapter, perform such other duties under this chapter as the Secretary may require of them, or as may be delegated to them by the Secretary. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1064.)

Act Aug. 14, 1916, cited to text, amended section generally to provide for the appointment of three individuals residing in the county, two of whom must be bona fide farmers, as a county committee, and to provide for their terms of office, compensation, and election of a chairman.

§1017. Resettlement projects—(a) Liquidation. The Secretary shall do all things necessary to complete the liquidation as expeditiously as possible of all resettlement projects and rural rehabilitation projects for resettlement purposes including, but not limited to, defense relocation corporations, land-leasing and land-purchasing associations, all properties retransferred from the National Housing Agency by section 2 (a) (3) of the Farmers' Home Administration Act of 1946, and all other corporations or associations organized for similar purposes and financed, in whole or in part, with funds made available to the Secretary, the War Food Administrator, the Farm Security Administration, the Resettlement Administration, or the Federal Emergency Relief Administration.

(b) Determination of lands suitable for farm management units; report to Congress; sale of lands.-Within six months after August 14, 1946, the Secretary shall determine which of the lands comprising the projects described in subsection (a) of this section are suitable for use, either with or without subdivision, as farms of sufficient size to constitute efficient farm management units and to enable diligent farm families to carry on farming of a type which the Secretary deems can be carried on successfully in the localities in which the lands are situated. The Secretary shall file with the Congress, promptly after making such determination, a complete report of the determination, with full information as to the location of all lands comprising such projects, and of the facts taken into account by the Secretary in making the determination. All lands which the Secretary determines are suitable for farming and all personal property incident to or comprising such projects and usable in farming operations shall, wherever practicable, be sold by the Secretary as expeditiously as possible to individuals eligible to receive the benefits of sections 1001-1006d of this title and in a manner consistent with the provisions of said sections. The Secretary, if appropriations are made therefor by Congress, may make loans to such purchasers to enable them to improve such lands or repair such property, which loans shall be made only after certification of the county committees and otherwise in a manner consistent with the provisions of sections 1001-1005d of this title: Provided, That all sales of project lands in economic units shall

be in accordance with the terms, conditions, and limitations of sections 436-439 of Title 40.

(c) Disposition of public facilities; conditions.-Public facilities, such as electric light, water and sewage systems, buildings and lands for schools and churches, and land for public roads, streets, and alleys, may be granted or dedicated to public or semipublic institutions or granted to public or private organizations where (1) such facilities or lands cannot be sold at reasonable prices, (2) similar facilities or land are not available at reasonable rates and terms to the inhabitants of the particular area and (3) the recipients of such facilities will agree to operate and maintain them and shall relieve the Government of all responsibility in connection therewith. In making grants or dedications of such facilities, the Secretary shall give due consideration to all applications for such grants or dedications and shall award the facilities to the organization or institution found by the Secretary to be most capable of maintaining and operating such properties. In all sales, grants, or dedications of such facilities, the Secretary shall take reasonable precautions to provide that they will not be used in competition with companies or organizations in the area furnishing adequate services to the inhabitants upon reasonable rates and terms. (d) Disposition of surplus property. Real and personal property comprising such projects which is not determined by the Secretary to be suitable for sale as family-size farms as provided in subsection (b) of this section, or which is not granted or dedicated as provided in subsection (c) of this section, shall, within eighteen months after August 14, 1946, either be transferred by the Secretary to appropriate agencies of the United States for disposition as surplus property of the United States or be sold by the Secretary at public or private sale to any individual or corporation at the best price obtainable, after public notice, for cash or on secured credit, without regard to the laws governing the disposition of surplus real or personal property of the United States: Provided, however, That in the case of all sales on credit under this subsection the Secretary shall obtain an initial cash payment of at least 20 per centum of the sales price and the remainder shall be paid in equal annual installments within a term not in excess of five years: Provided further, That whenever it is found by the Secretary that it is not practicable to dispose of lands reserved for sale pursuant to subsection (b) of this section under the provisions of sections 1001-1005d of this title, such lands may be sold by the Secretary under the authority of this subsection.

(e) Sale of properties of defense relocation corporations, etc.The Secretary shall cause the defense relocation corporations, landleasing and land-purchasing associations, and other similar corporations or associations to sell properties to which they hold title in accordance with the limitations and procedures prescribed in this section.

(f) Application to labor supply centers, labor homes, etc.-The provisions of this section shall apply to all labor supply centers, labor homes, labor camps, and facilities upon their transfer to the Secretary as provided in section 1002 (d) of this title. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

References in text.-Words "section 2 (a) (3) of the Farmers' Home Administration act of 1946" referred to in subsec. (a) of this section are set out as a note under section 1001 of this title.

Amendments.-Act Aug. 14, 1946, cited to text, amended section generally by dividing it into subsections, providing for the liquidation of all resettlement projects, and by providing for the sale of all land suitable to farm management units.

§ 1018. Special conditions and limitations on loans.-The Secretary, under this chapter

(a) Shall make no loan

(1) to any corporation or cooperative association;

(2) unless the appropriate county committee certifies in writing that the applicant is eligible to obtain such loan and that, in the opinion of such committee, he will honestly endeavor to carry out undertakings and obligations required of him under a loan which may be made by the Secretary;


(3) to any person, unless the applicant represents in writing, and it administratively determined by the Secretary, after a certification to such effect by the appropriate county committee, that credit sufficient in amount to finance the actual needs of the applicant is not available to him at the rates (but not exceeding the rate of 5 per centum per annum) and terms prevailing in the community in or near which the applicant resides for loans of similar size and character from commercial banks, cooperative lending agencies, or from any other responsible source;

(4) for the carrying on of any land-purchase or land-leasing program, or for the purpose of carrying on any operations in collective farming, or cooperative farming, or for the organization, promotion, or management of homestead associations, land-leasing associations, land-purchasing associations, or cooperative land-purchasing for colonies of rehabilitants and tenant purchasers, except for the liquidation as expeditiously as possible of any such projects initiated prior to August 14, 1946.

(b) Shall, except as otherwise specifically provided by the Congress, make all loans at the interest rate of 5 per centum per annum evidenced by notes requiring full liability of the maker and upon such security and such other terms and conditions as the Secretary may prescribe, including such provisions for the supervision of the borrower as the Secretary shall deem necessary to protect his interests.

(c) Shall, in the case of every loan, require in the loan and security instruments that if at any time it shall appear to the Secretary that the borrower may be able to obtain a loan from a production credit association, Federal land bank, or other responsible cooperative or private credit source at rates (but not exceeding the rate of 5 per centum per annum) and terms for loans for similar periods of time and purposes prevailing in the area in which the loan is to be made, the borrower shall, upon request of the Secretary, apply for and accept such loan in sufficient amount to repay the Secretary and to pay for any stock necessary to be purchased in the cooperative lending agency in connection with the loan. (As amended Aug. 14, 1946, ch. 964. $3,60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, amended section generally to provide conditions under which loans may be made and to impose certain limitations on said loans.

Transfer of functions.-The functions of the Secretary of Agriculture with respect to the uses of mineral deposits in lands under this section and section 1011 (c) of this title were transferred to the Secretary of the Interior by 1946 Reorg.


Plan No. 3, § 402, eff. July 16, 1946, 11 F. R. 7876, 60 Stat. 1099, set out in note under section 133y-16 of title 5. For provisions concerning exercise of those functions, see text of said Reorg. Plan.

§ 1019. Transfer of lands to Secretary. The President may at any time in his discretion transfer to the Secretary any right, interest or title held by the United States in any lands acquired in the program of national defense and no longer needed therefor, which the President shall find suitable for the purposes of this chapter, and the Secretary shall dispose of such lands in the manner and subject to the terms and conditions of this chapter. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, amended section to limit the transfer of lands to lands acquired under the national defense program.

§ 1020. Transactions with private corporations.-Nothing in this chapter shall authorize the making of any loan or the sale or other disposition of real property or any interest therein, other than interests in coal, oil, gas, or other minerals, to any private corporation, except in furtherance of liquidation pursuant to section 1017 of this title, or the leasing of mineral interests to corporations or individuals from time to time in accordance with policies established by the Secretary of Agriculture. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, amended section by adding exceptions to permit transactions in furtherance of liquidation or the leasing of mineral interests.

§ 1021. Surveys and investigations.-The Secretary is authorized to conduct surveys and investigations relating to the conditions and factors affecting, and the methods of accomplishing most effectively, the purposes of this chapter, and may, when funds are specifically appropriated therefor by the Congress, publish and disseminate information pertinent to the various aspects of its activities. amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)


Act Aug. 14, 1946, cited to text, amended section by omitting "and research" following "investigations", and providing for the publication of information only when funds have been specifically provided for it.

§ 1022. Variable payments on obligations.-The Secretary shall require annual payments in installments sufficient to pay any obligations or indebtedness to him under this chapter within the term of such obligation or indebtedness. The Secretary shall provide a method whereby a borrower may pay any obligation or indebtedness by a system of variable payments under which a surplus above the required installment for any year may be paid in periods of above-normal income and employed to reduce payments below the required annual payment in subsequent periods of subnormal income. Any advance payments to the Secretary shall not affect the obligation to pay the required annual installment during periods of normal or above-normal income. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, amended section to provide for annual payments amortized over the term of the obligation, and to authorize the Secretary to set up a system of variable payments.

§ 1023. Set-off.-No set-off shall be made against any payment to be made by the Secretary to any person under the provisions of this

chapter, by reason of any indebtedness of such person to the United States, and no debt due to the Secretary under the provisions of this chapter shall be set off against any payments owing by the United States, unless the Secretary shall find that such set-off will not adversely affect the objectives of this chapter. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, reenacted section in toto.

§ 1024. Taxation.-(a) All property which is being utilized to carry out the purposes of sections 1001-1005d of this title (other than property used solely for administrative purposes) shall, notwithstanding that legal title to such property remains in the Secretary, be subject to taxation by the State, Territory, district, dependency, and political subdivision concerned, in the same manner and to the same extent as other similar property is taxed.

(b) All property to which subsection (a) of this section is inapplicable which is held by the Secretary pursuant to this chapter shall be exempt from all taxation now or after August 14, 1946 imposed by the United States or any State, Territory, district, dependency, or political subdivision, but the Secretary shall make payments in respect of any such property in lieu of taxes. (As amended Aug. 14, 1946, ch. 964, § 3, 60 Stat. 1062.)

Subsec. (a) amended by Aet Aug. 14, 1946, cited to text, which omitted references to "sections 1007 to 1009 of this title" following "sections 1001-1005d" and to "Corporation".

Subsec. (b) amended by Act Aug. 14, 1946, cited to text, which omitted reference to "Corporation" following "secretary".

§ 1025. Purchase at foreclosure sale.-The Secretary is authorized and empowered to bid for and purchase at any foreclosure or other sale, or otherwise to acquire property pledged or mortgaged or conveyed to secure any loan or other indebtedness owing to or acquired by the Secretary under this chapter; to accept title to any property so purchased or acquired; to operate for a period not in excess of one year from the date of acquisition, or lease such property for such period as may be deemed necessary to protect the investment therein; and to sell or otherwise dispose of such property in a manner consistent with the provisions of section 1017 of this title. (As amended Aug. 14, 1946, ch. 964, §3, 60 Stat. 1062.)

Act Aug. 14, 1946, cited to text, amended section by inserting clause "to accept title to any property so purchased or acquired."

§ 1026. Penalties. (a) Whoever makes any material representation, knowing it to be false, for the purpose of influencing in any way the action of the Secretary upon any application, discount, purchase, or repurchase agreement, contract of sale, lease or loan, or any change or extension of any of the same by renewal, compromise, adjustment, deferment of action or otherwise, or the acceptance, release or substitution or security therefor, shall, upon conviction thereof, be punished by a fine of not more than $2,000 or by imprisonment for not more than two years, or both.

(b) Whoever, being employed in any capacity by the Secretary, (1) embezzles, abstracts, purloins or willfully misapplies any moneys, funds, securities or other things of value, whether belonging to the

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