Графични страници
PDF файл
ePub

Loans to finance the production, planting, cultivation, or harvesting of a crop or part thereof (loans pursuant to § 303.48 (d)) will be secured in the full amount of the loan by a first lien or an agreement to give a first lien upon such crop or such part thereof, Provided, however, That if the landlord of the applicant for such a loan has by local law or by the terms of his lease a first lien on such crop, and if a waiver and subordination of such lien is not obtainable, a lien subordinate to that of the landlord may be taken.

NOTE: In order to preserve the statutory priority of liens for seed loans made in South Dakota, Minnesota, and Montana, each applicant in these states who applies for a loan for the purchase of seed only will execute a note for the amount of such loan and secure the repayment of such loan by a seed lien. Each applicant in the above states who applies for a loan to be used in part for seed and in part for other purposes will execute a note for the total amount of such loan and secure the repayment of such loan by a crop mortgage, and, in addition thereto, will execute a seed lien to secure the repayment of that part of such loan which is proposed to be used for the purchase of seed.

Loans to finance in whole or in part the purchase of feed for livestock or to finance in whole or in part the production of feed for livestock (pursuant to § 303.48 (d)) will be secured in the full amount of the loan by a first lien on the livestock to be fed, Provided, however, That when such livestock is already subject to a first lien and a waiver and subordination agreement is not obtainable, a second lien may be taken upon such livestock.

No loans made pursuant to § 303.48 (d) (crop loan) will be made however if the security to be taken in connection therewith is not sufficient to secure adequately the repayment to the Farm Security Administration of such loans.*† [Par. 3e]

CROSS REFERENCE: For Federal Deposit Insurance Corporation, see 12 CFR Chapter III.

303.52 Recording and filing of securing documents. This procedure will be that which is outlined in § 303.27.* [Par. 5, A.O. 41, rev. 1, Dec. 21, 1935]

303.53 Limitations upon loans for crop production, pursuant to § 303.48 (d). No such loan will be made for more than the immediate and actual cash needs of the client, which in the particular case, must not exceed actual costs per acre as determined by individual consideration of the various factors involved, for example, whether it is necessary to purchase seed, feed, fertilizer, spraying material, and/or fuel for tractors; the cost thereof; any other incidental expenses currently incurred in that community in connection with the

*For statutory citation, see note to § 303.21.

Page 27

particular crop to be produced. No loan made for crop production purposes may exceed the following maximum allowances per acre:

[blocks in formation]

(a) These figures include allowances for fuel, oil, and feed for work stock for crop production purposes and incidental expenses, for which no additional allowances will be made.

(b) Where spray material, including dust is used without commercial fertilizer, the allowance for such spray material and dust will be the difference, if any, between the allowances in column (2) and column (3).

(c) Of the grain allowances shown in the table not more than one dollar ($1.00) will be used for summer fallowing.

(d) Allowances for commercial fertilizer will be allowed only in areas where commercial fertilizer is customarily used.

*†

** [Par. 5]

303.54 Administrative authorization. Regional directors are authorized to make loans as provided in this subpart, and to execute legal instruments and perform functions given in § 303.29 (b) (1), (2), (3), (4), and (7) in connection with making and discharging such loans on behalf of the Farm Security Administration. (A regional director in executing such legal instruments will sign the name

Page 28

*For statutory citation, see note to § 303.21.

of the Administrator of the Farm Security Administration and directly thereunder his own name preceded by the word "By", and followed by his title as "Regional Director" [Par. 7a, A.O. 166, rev. 1, July 18, 1936, and par. 7b, A.O. 41, rev. 1, Dec. 21, 1935]

*

303.55 Delegation of authority. Regional directors are authorized to delegate to assistant regional directors in charge of rural rehabilitation and to state rural rehabilitation directors the authority granted to them in § 303.54. State rural rehabilitation directors, in turn, may delegate to assistant State rural rehabilitation directors, rural rehabilitation loan officers, and State farm management supervisors all authority which may be delegated to them under this subpart. State rural rehabilitation directors may also redelegate to district and county rural rehabilitation supervisors the authority specified in § 303.29 (b) (1), (3), and (4). All such delegation and redelegation of authority must be made in writing, designating by name, title, and address the delegatee, and specifying the authority granted, and the same will be made a matter of record. When authority is delegated under this subpart to an assistant regional director in charge of rural rehabilitation, a signed copy of the same will be made available to the regional Finance and Control manager. When authority granted under this subpart is delegated to a state rural rehabilitation director, a signed copy of the same will be made available to the regional Finance and Control manager. When a state rural rehabilitation director redelegates the authority delegated to him under this subpart, a signed copy of the same will be available to the regional Finance and Control manager. When delegations of authority provided in this subpart have already been executed in carrying out the provisions of §§ 303.21-303.30 it will not be necessary to repeat these delegations of authority.

Rural rehabilitation supervisors are authorized to act as collection agents for the Farm Security Administration for the collection of loans made under the provisions of this subpart, and to issue and sign receipts there for on Form FSA-FI 37, Temporary Receipt. Rural rehabilitation supervisors are further authorized to delegate this authority to rural rehabilitation home supervisors, assistant rural rehabilitation supervisors, and to their office secretaries. Such delegations of authority must be made in writing, designating by name, title, and address the delegatee, and specifying the authority granted, and two signed copies thereof must be transmitted to the state rural rehabilitation director who will retain one copy and transmit the other to the regional Finance and Control manager. In the event that a collection is received by the state office directly from the client, a Temporary Receipt should be issued to the client by the state rural rehabilitation director or other state official authorized by him, one copy of this receipt should be transmitted to the regional Finance and Control manager, and the remaining copy to the rural rehabilitation supervisor.

All authority hereafter delegated, under the provisions of this subpart, by regional directors to state rural rehabilitation directors, and as may hereafter be redelegated by them to rural rehabilitation loan officers, state farm management supervisors, district and county

*For statutory citation, see note to § 303.21.

Page 29

rural rehabilitation supervisors, will be exercised by such delegatees, subject to the limitations and conditions contained in this subpart and in applicable orders and instructions of the Farm Security Administration.*t [Par. 7b]

SUBPART-LOANS TO INDIVIDUALS FOR PARTICIPATION IN COOPERATIVE AND GROUP SERVICE LOANS

303.71 Purposes. Loans may be made to individual rural rehabilitation clients, resettlement clients, and heads of destitute and lowincome farm families to enable them to purchase participation rights or memberships in community and cooperative associations, either now existing or to be established, or to acquire property or services jointly or individually for joint benefit. This class of loan is subdivided into three subclasses as follows: (a) Loans to individuals for the purpose of participation in an already existing cooperative, which participation may be in the form of a fee, a membership charge, or the purchase of a share of stock; (b) loans to individuals of a group for the purpose of providing a specific facility or service, in which instance the funds lent to each individual of the group will be pooled in order to provide the facility or service (This does not exclude other individuals from using their own funds to add to the pool.); and (c) loans to individuals for the purpose of providing a facility or service for the benefit of a group, in which instance the loan is made to an individual who must give adequate security and be responsible for the use and care of the facility or service purchased. Provision should be made in this type of loan to insure reasonable charges for the services to the group to be benefited and to prevent the borrower from making excessive profits from the operation of the service.

Loans to individuals to participate in approved community and cooperative associations which further rural rehabilitation or relief in stricken agricultural areas or which are organized in connection with approved resettlement community projects may be made for the purposes given in § 304.4.* [Pars. 2a II, 5a, A.O. 40, rev. 2, Sept. 26, 1936]

303.72 Security. An individual receiving a loan to participate in a community or cooperative service or to acquire property or services jointly or individually for joint benefit shall execute a note and furnish such other evidence of indebtedness and security as will be required under the terms of his loan agreement.* [Par. 7b, A.O. 40, rev. 2, Sept. 26, 1936]

303.73 Period of loan. Loans will be for the shortest period consistent with the purpose and policies of Administration Order 40 (Revision 2), September 26, 1936, considering the use to which the proceeds thereof are to be put, the financial resources and earning capacity of the borrower, and, in the case of loans to finance the purchase of specific property, the probable rate of depreciation, the estimated life thereof, and the amount of the loan as compared with the total purchase price, but in no case will the period exceed 40 years. When a loan is made for purposes which dictate different

Page 30

*For statutory citation, see note to § 303.21.

maximum periods of payment, repayment will be computed and will be required for each type of loan in accordance with the preceding sentence.* [Par. 8, A.Ö. 40, rev. 2, Sept. 26, 1936]

303.74 Amortization. Loans which have a maturity of less than 2 years will be repaid in such installments of principal and interest as the Administrator may determine. Efforts will be made, however, to have such loans repayable in quarterly, semiannual, or annual equal instalments of principal and interest. Loans which have a maturity in excess of 2 years will be repayable in equal annual instalments of principal with interest added or in equal annual instalments including interest. In the case of loans to individuals which have a maturity of 5 years or more, deferment of repayment of principal during the first 3 years may be made if the borrower is subject to either of the following conditions: The necessity of meeting during the first 3 years heavy repayments on old debts or Farm Security Administration loans; or the necessity of the cooperative association for building up reserves, thus deferring the payment of rebates and dividends to the participants during this period.* [Par. 9, A.O. 40, rev. 2, Sept. 26, 1936]

303.75 Rate of interest. In the case of loans to individuals wherein the proceeds of the loans will result in the acquisition of real or personal property or interest therein by such individuals, and when such property will be used jointly by two or more individuals, interest will be charged at the rate of 3 percent per annum on balances remaining unpaid from time to time, and such loans shall be known and reported as cooperative loans to individuals and shall be made in conformance with the provisions of Administration Order 40 (Revision 2), September 26, 1936. In this category will be included loans to individuals for the purpose of participating in medical, health and veterinary associations and loans to individuals for the purpose of participating in an already existing cooperative.

In the case of loans to individuals wherein the proceeds of the loans result merely in payment for the rental or use of property or for services made available under the provisions of Administration Order 40 (Revision 2), September 26, 1936, and when the borrowers do not acquire any interest in such property or in the source of such services, interest will be charged at the rate of 5 percent per annum on balances remaining unpaid from time to time. Such a loan may be a part of a standard rural rehabilitation loan or supplementary thereto in the cases of standard rural rehabilitation clients. In the case of destitute and low-income farm families who are not rural rehabilitation clients, such loans will be known and reported as emergency rural rehabilitation loans and they will be certified for payment out of any rehabilitation allocations which have not been fully encumbered.

In cases where two rates of interest are charged in the same loan, the rate or rates on the portion of the loan to which each applies must be clearly indicated in the loan agreement.* [Pars, 10b, 10c, 10d, A.O. 40, rev. 2, Sept. 26, 1936]

*For statutory citation, see note to § 303.21.

Page 31

« ПредишнаНапред »