59 STAT.] 79TH CONG., 1ST SESS.-CH. 204-JUNE 30, 1945 SEC. 3 . The last sentence of the first paragraph of section 4 of the Federal Farm Loan Act, as amended (title 12, U. S . C. 672), is further amended to read as follows: "Loans made by each such branch bank shall be subject to the restrictions and provisions of this Act, except that each such branch bank may loan direct to borrowers, and, subject to such regulations as the Farm Credit Administration may prescribe, the rate charged borrowers may be 1/2 per centum in excess of the rate borne by the last preceding issue of farm loan bonds of the Federal land bank with which such branch bank is connected: Provided, That no loan shall be made in Puerto Rico or Alaska by such branch bank for a longer term than twenty years." SEC. 4 . Section 12 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 771), is further amended as follows: (a) Paragraph "Second" thereof is amended by inserting imme- diately after the second colon the following: "And provided further, That under the rules and regulations of the Farm Credit Adminis- tration any land bank may agree, at the time a loan is made or thereafter, that the mortgagor may make such payments or portions of payments in advance or pay the entire principal of such loan dur- ing the first five years the loan is in effect:". (b) Subparagraph (d) of paragraph "Fourth" thereof is amended by striking out "incurred prior to January 1, 1937" and inserting in lieu thereof "incurred at least two years prior to the date of the application for the loan". (c) The first paragraph of subparagraph "Fifth" thereof is amended to read as follows: "No such loan shall exceed 65 per centum of the normal value of the farm mortgaged, said value to be ascertained by appraisal, as provided in section 10 of this Act. In making said appraisal the value of the farm for agricultural purposes shall be the basis of appraisal and the normal earning power of said farm shall be a principal factor." (d) Paragraph "Ninth" thereof is amended by striking out "the rate of 8 per centum per annum" in the first and second sentences of said paragraph and inserting in lieu thereof "a rate not exceeding 6 per centum per annum". SEC. 5. Paragraph "Seventh" of section 13 of the Federal Farm Loan Act, as amended (title 12, U. S . C. 781), is further amended to read as follows: "To borrow money severally, or jointly and severally with one or more other Federal land banks, to give security therefor, and to pay interest thereon." SEC. 6. Paragraph "Eighth" of section 13 of the Federal Farm Loan Act, as amended (title 12, U. S. C. 781), is amended to read as follows: "To buy and sell United States Government obligations direct or fully guaranteed; and to purchase and acquire from the Federal Farm Mortgage Corporation notes and mortgages representing loans made by the Land Bank Commissioner pursuant to section 32 of the Emergency Farm Mortgage Act of 1933, as amended (title 12, U. S . C. 1016), upon farm property situated in the farm credit dis- trict in which said bank is located, and purchase money mortgages and contracts for the sale of farms held by the Federal Farm Mort- gage Corporation in connection with the sale of farm property situ- ated in such district: Provided, That no such note and mortgage, purchase-money mortgage, or contract shall be purchased pursuant hereto unless (1) the unpaid balance of the indebtedness represented or secured thereby, together with any indebtedness to the Federal 267 39 Stat. 362 . Loans by branch banks, restrictions. 39 Stat. 370. 12 U. S. C., Supp. IV, § 771. Advance payments. 39 Stat. 370. 39 Stat. 371 . Limitation. Ante, p. 266 . Interest upon items in default. 39 Stat. 372. Borrowing of money. 39 Stat. 372 . Buying and selling of U.S . Government obligations, etc. 48 Stat. 48. 12 U. S. C. Supp. IV, i 1016. Pot p. 289. Preequsites o pur- chase.
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