80TH CONG. , 2D SESS.-CH. 334-MAY 25, 1948 available to the United States pursuant to section 3466 of the Revised Statutes (U. S . C., title 31, sec. 191) except that the Corporation shall be entitled to such priority with respect to debts arising from any transaction pursuant to any of the following Acts or provisions in effect at any time: Sections 5d (1) and 5d (2) of the Reconstruction Finance Corporation Act added by section 5 of the Act entitled 'An Act to authorize the purchase by the Reconstruction Finance Corpo- ration of stock of Federal home-loan banks; to amend the Recon- struction Finance Corporation Act, as amended, and for other purposes', approved June 25, 1940 (54 Stat. 573); sections 4 (f) and 9 of the Act entitled 'An Act to mobilize the productive facilities of small business in the interests of successful prosecution of the war, and for other purposes', approved June 11, 1942 (56 Stat. 354, 356); section 2 (e) of the Emergency Price Control Act of 1942 (56 Stat. 26); the Surplus Property Act of 1944 (58 Stat. 765 and the follow- ing); sections 11 and 12 of the Veterans' Emergency Housing Act of 1946 (60 Stat. 214, 215); and section 403 of the Sixth Supplemental National Defense Appropriation Act (56 Stat. 245)." SEC. 4 . Section 4 of the Reconstruction Finance Corporation Act, as amended, is amended to read as follows: "SEC. 4. (a) To aid in financing agriculture, commerce, and industry, to encourage small business, to help in maintaining the economic stabil- ity of the country, and to assist in promoting maximum employment and production, the Corporation, within the limitations hereinafter provided, is authorized-- "(1) To purchase the obligations of and to make loans to any business enterprise organized or operating under the laws of any State or the United States: Provided, That the purchase of obli- gations (including equipment trust certificates) of, or the making of loans to, railroads engaged in interstate commerce or air carriers engaged in air transportation as defined in the Civil Aeronautics Act of 1938, as amended, or receivers or trustees thereof, shall be with the approval of the Interstate Commerce Commission or the Civil Aeronautics Board, respectively: Providedfurther, That in the case of such railroads or air carriers which are not in receiver- ship or trusteeship, the Commission or the Board, as the case may be, in connection with its approval of such purchases or loans shall also certify that such railroad or air carrier, on the basis of present and prospective earnings, may be expected to meet its fixed charges without a reduction thereof through judicial reor- ganization except that such certificates shall not be required in the case of loans or purchases made for the acquisition of equip- ment or for maintenance. "(2) To make loans to any financial institution organized under the laws of any State or of the United States. If the Secretary of the Treasury certifies to the Corporation that any insurance company is in need of funds for capital purposes, the Corpora- tion may subscribe for or make loans upon nonassessable pre- ferred stock in such insurance company. In any case in which, under the laws of the State in which it is located, any such insur- ance company so certified is not permitted to issue nonassessable preferred stock, or if such laws permit such issue of preferred stock only by unanimous consent of stockholders, the Corporation is authorized to purchase the legally issued capital notes or deben- tures of such insurance company. "(3) In order to aid in financing projects authorized under Federal, State, or municipal law, to purchase the securities and obligations of, or make loans to, (A) States, municipalities, and political subdivisions of States, (B) public agencies and instru- mentalities of one or more States, municipalities, and political 15U.S.C. § 606b (1) (2). 50U.S.C.app. §§1104 note, 1109. 50U.S.C.app. §902 (e). 50U.S.0. app. §§1611-1646; Supp. I, § 1612 et seq. Post, pp. 350, 1103 . 50U.S.C.app. 99 1831, 1832; Supp. I, §§1831 1832. 50 U.. S. . app. §1191; Supp. I , § 119J. 47Stat. 6. 15U. S. C., Supp.I, § 604. Post,p. 1209. Purchase of obliga- tions of business en- terprises. 52 Stat. 977. 49 U.S . C. §401. Loans to financial institutions. Financing of proj. ects. 62 STAT.] 263
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