PUBLIC LAWS--CH. 964-AUG. 14 , 1946 other responsible source; and that the farm with respect to which the application is made is of such character that there is a reasonable likelihood that the making or insuring of the loan with respect thereto will carry out the purposes of this title, it shall so certify to the Secretary. The committee shall also certify to the Secretary the amount which the committee finds is the fair and reasonable value of Availability of ap- the farm based upon its normal earning capacity. The farm shall be appraised by competent employees of the Secretary thoroughly trained in appraisal techniques and the appraisal shall be made avail- able to the county committee and the Secretary for their guidance in determining the value of the farm as specified above. Nonparticipation of () No member of the committee shall participate in any certifi- tion. cation under his section with respect to any application or farm in which such member, or any person related to such member within the third degree of consanguinity or affinity has any pecuniary interest, direct of indirect, or in which any of them had such interest within one year prior to the date of certification. eloification or "(d) No loan shall be made for any purpose under this Act and no mortgage shall be insured under this Act, unless certification by the committee, as required under this section, has been made with respect to the applicant applying for the loan and with respect to the farm which is to be taken as security either for an insured or an uninsured mortgage. "T ERMS OF LOANS Amounts. "SEC. 3 . (a) Loans made under this title shall be in such amount (not in excess of the amount certified by the county committee to be the value of the farm) as may be necessary to enable the borrower to acquire the farm and for necessary repairs and improvements thereon, and shall be secured by a first mortgage or deed of trust on the farm. Loans may not be made for the acquisition or enlargement of farms which have a value, as acquired, enlarged, or improved, in excess of the average value of efficient family-type farm-management units, as determined by the Secretary, in the county, parish, or locality where the farm is located. Provisions of instru- (b) The instruments under which the loan is made and security given therefor shall- " (1) provide for the repayment of the loan within an agreed period of not more than forty years from the making of the loan; "(2) provide for the payment of interest on the unpaid balance of the loan at the rate of 31/2 per centum per annum; "(3) provide for the repayment of the unpaid balance of the loan, together with interest thereon, in installments in accordance with amortization schedules prescribed by the Secretary; "(4) be in such form and contain such covenants as the Secretary shall prescribe to secure the payment of the unpaid balance of the loan, together with interest thereon, to protect the security, and to assure that the farm will be maintained in repair, and waste and exhaustion of the farm prevented, and that such proper farming con- servation practices as the Secretary shall prescribe will be carried out; "(5) provide that the borrower shall pay taxes and assessments on the farm to the proper taxing authorities, and insure and pay for insurance on farm buildings; "(6) provide that upon the borrower's assigning, selling, or other- wise transferring the farm, or any interest therein, without the con- sent of the Secretary, or upon default in the performance of, or upon any failure to comply with, any covenant or condition contained in such instruments, or upon involuntary transfer or sale, the Secretary 1074 [60 STAT.