PUBLIC LAWS-CH. 204-JUNE 30, 1945 39 Stat. 360 . 12U.S..c. 641note; Supp. IV, § 657 et seg. Ante, p. 265 et seq. 39 Stat. 372. Ante, p. 267. Deferred payments. 39 Stat. 376. Collateral security for farm-loan bonds. Supra. 39 Stat. 377. Farm loan bonds. Amounts, denomi- nations, maturity, etc. Certificate of Land Bank Commissioner. Collateral security. 39 Stat. 377. land bank secured by a prior mortgage on the property, does not exceed 65 per centum of the normal value of the farm as determined upon appraisal made pursuant to the Federal Farm Loan Act; (2) the borrower acquires such stock in a national farm loan association, in addition to any available stock which he may already own, as may be necessary to constitute an amount equal to one share of stock for each $100 of the unpaid balance of the indebtedness represented or secured by the note and mortgage, purchase-money mortgage, or contract being purchased and acquired, together with the indebted- ness secured by any prior lien on the property in favor of the Federal land bank; (3) the national farm loan association in which such stock is held elects the borrower to membership, if not already a member, and agrees to be liable for the indebtedness secured by the note and mortgage, purchase-money mortgage, or contract being pur- chased and acquired; and (4) the land bank takes such action, if any, as may be necessary to reduce the rate of interest on the indebtedness secured by the mortgage, purchase-money mortgage, or contract acquired or purchased to the same rate of interest the bank is charg- ing on first-mortgage loans which it is then making." SEC. 7. Section 13 of the Federal Farm Loan Act, as amended (title 12, U. S. C . 781), is further amended by adding at the end thereof the following new paragraph: "Nineteenth. To permit any borrower to defer payment of the principal portions of installments on his loan in order that he may pay, in whole or in part, any indebtedness which is secured by a lien junior to the lien of the bank upon the farm land mortgaged to secure his loan." SEC. 8. Section 19 of the Federal Farm Loan Act, as amended (title 12, U. S . C. 851-857), is further amended by striking out the last paragraph and substituting in lieu thereof the following: "Notwithstanding any other provisions of this Act to the contrary, on and after the effective date of this paragraph, subject to the approval of the Farm Credit Administration, any Federal land bank may deposit with the farm-loan registrar of the district, and it shall be the duty of said registrar to accept, as collateral security for farm- loan bonds, either originally or by substitution, (a) United States Government obligations direct or fully guaranteed, and (b) notes secured by mortgages or purchase money mortgages on farms, or contracts for the sale of farms; provided any such mortgage, purchase money mortgage, or contract constitutes a first lien on the farm, or its equivalent from a security standpoint as determined by the Farm Credit Administration, and the unpaid balance thereof at the time of acceptance is not in excess of 65 per centum of the normal value of the farm, as determined upon appraisal made pursuant to the Federal Farm Loan Act." SEC. 9. The first paragraph of section 20 of the Federal Farm Loan Act, as amended (title 12, U. S . C . 861), is further amended by strik- ing out the first two sentences thereof and substituting in lieu thereof the following: "Bonds provided for in this Act shall be issued in such amounts, denominations, and bear such terms as the Farm Credit Administra- tion may authorize; they shall have a specified maturity, but may, in addition, when stated in the bonds, be redeemable, at the option of the land bank, at an earlier specified date or dates." SEc. 10. (a) The fourth paragraph of section 21 of the Federal Farm Loan Act, as amended (title 12, U. S. C . 874), is further amended by striking out the following: "of United States Govern- ment bonds, or first mortgages on farm lands" and substituting in lieu thereof the following: "prescribed by the Federal Farm Loan Act, as mended". [59 STAT.
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