1364 



74th congress. SESS. II. CH. 432. 



MAY 20, 1936. 



Reconstruction Fi- 

 nance Corporation. 



Loans to Administra- 

 tor by, authorized. 



Maximum, 1937. 



Interest. 



Provisos. 



Proportion to secu- 

 rity. 



Amortization of ob- 

 ligations. 



Maturity provisions. 



Assignment of obli- 

 gations to Reconstruc- 

 tion Finance Corpora- 

 tion. 



Appropriations au- 

 thorized. 



Allotments of por- 

 tion of annual sums for 

 loans; basis of. 



XTnallotted portion; 

 Ijasis of loans. 

 Post, p. 1365. 



Proviso. 

 Limitation, 



Availability of unex- 

 pended balances dur- 

 ing ensuing year. 



Provisos. 

 Limitation. 



Loans to Adminis- 

 trator to cease June 30, 

 1937. 



Payments covered 

 in; exception. 



Sec. 3. (a) The Keconstruction Finance Corporation is hereby 

 authorized and directed to make loans to tlie Administrator, upon liis 

 request approved by the President, not exceeding in aggregate 

 amount $50,000,000 for tlie fiscal year ending June 30, 1937, with 

 interest at 3 per centum per annum upon the security of the obliga- 

 tions of borrowers from the Administrator appointed pursuant to 

 the provisions of this Act or from the Administrator of the Rural 

 Electrification Administration established by Executive Order Num- 

 bered 7037: Provided, That no such loan shall be in an amount 

 exceeding 85 per centum of the principal amount outstanding of 

 the obligations con.stituting the security therefor: And provided 

 further, That such obligations incurred for the purpose of financing 

 tlie construction and ojjeration of generating plants, electric transmis- 

 sion and distribution lines, or systems shall be fully amortized over 

 a i^eriod not to exceed twenty-five years, and that the maturity of 

 such obligations incurred for the purpose of financing the wiring of 

 premises and the acquisition and installation of electrical and plumb- 

 ing appliances and equipment shall not exceed two-thirds of the 

 assured life thereof and not more than five years. The Administrator 

 is hereby authorized to make all such endorsements, to execute all 

 such instruments, and to do all such acts and things as shall be 

 necessary to effect the valid transfer and assignment to the Recon- 

 struction Finance Corporation of all such obligations. 



(b) There is hereby authorized to be appropriated, out of any 

 money in the Treasury not otherwise appropriated, for the fiscal year 

 ending June 30, 1938, and for each of the eight years thereafter, 

 the sum of $40,000,000 for the purposes of this Act as hereinafter 

 provided. 



(c) Fifty per centum of the annual sums hei-ein made available or 

 appropriated for the purposes of this Act shall be allotted yearly by 

 the Administrator for loans in the several States in the proportion 

 which the number of their farms not then receiving central station 

 electric service bears to the total number of farms of the United 

 States not then receiving such service. The Administrator shall, 

 •within ninety days after the beginning of each fiscal year, determine 

 for each State and for the United States the number of farms not 

 then receiving such service. 



(d) The remaining 50 per centum of such annual sums shall be 

 available for loans in the several States and in the Territories, with- 

 out allotment as hereinabove provided, in such amounts for each 

 State and Territory as, in the opinion of the Administrator, may be 

 effectively employed for the purposes of this Act, and to carry out 

 the provisions of section 7 : Provided, however, That not more than 

 10 per centum of said unallotted annual sums may be employed in 

 any one State, or in all of the Territories. 



(e) If any part of the annual sums made available for the purposes 

 of this Act shall not be loaned or obligated during the fiscal year for 

 which such smns are made available, such unexpended or unobligated 

 sums shall be available for loans by the Administrator in the follow- 

 ing year or years without allotment: Provided, however, That not 

 more than 10 j)er centum of said sums may be employed in any one 

 State or in all of the Territories: And provided further. That no 

 loans shall be made by the Reconstruction Finance Corporation to 

 the Administrator after June 30, 1937. 



(f) All moneys representing payments of principal and interest 

 on loans made by the Administrator under this Act shall be covered 

 into the Treasury as miscellaneous receipts, except that any such 

 moneys representing payments of principal and interest on obliga- 

 tions constituting the security for loans made by the Reconstruction 



