1366 



74th congress. SESS. II. CH. 432. MAY 20, 1936. 



Sale. 



Disposal of encum- 

 bered property, etc., 

 by borrower. 



Prior loans and con- 

 tracts; administration 

 may be vested in Ad- 

 ministrator. 



Transfer of records, 

 property, and person- 

 nel. 



Nonpartisan admin- 

 istration of Act. 



Merit system of ap- 

 pointments, etc. 



Removal of officials, 

 etc., for violation. 



Annual reports to 

 Congress. 



Utilization of volun- 

 tary, etc., services. 



Attorneys, engineers, 

 and experts; appoint- 

 ment, compensation, 

 etc. 



Expenditures author- 

 ized. 

 Ante, p. 1365. 



Time extension on 

 payments, authorized. 



Provisos. 



Loans on plants, 

 lines, etc. 



advisable to protect the investment therein, but not to exceed five 

 3'ears after the acquisition thereof; and to sell such property so 

 2ourchased or acquired, upon such terms and for such consideration 

 as the Administrator shall determine to be reasonable. 



No borrower of funds under section 4 shall, without the approval 

 of the Administrator, sell or dispose of its property, rights, or 

 franchises, acquired under the provisions of this Act, until any loan 

 obtained from the Rural Electrification Administration, including 

 all interest and charges, shall have been repaid. 



Sec. 8. The administration of loans and contracts entered into by 

 the Rural Electrification Administration established by Executive 

 Order Numbered 7037, dated ISIay 11, 1935, may be vested by the 

 President in the xVdministrator authorized to be appointed by this 

 Act; and in such event the provisions of this Act shall apply to said 

 loans and contracts to the extent that said provisions are not incon- 

 sistent therewith. The President may transfer to the Rural Elec- 

 trification Administration created by this Act the jurisdiction and 

 control of the records, property (including office equipment), and 

 personnel used or emploj'ed in the exercise and performance of the 

 functions of the Rural Electrification Administration established 

 by such Executive order. 



Sec. 9. This Act shall be administered entirely on a nonpartisan 

 basis, and in the appointment of officials, the selection of employees, 

 and in the ))romotion of any such officials or employees, no political 

 test or qualification shall be permitted or given consideration, but 

 all such appointments and promotions shall be given and made on 

 the basis of merit and efficiency. If the Administrator herein pro- 

 vided for is found by the President of the United States to be guilty 

 of a violation of this section, he shall be removed from office by the 

 President, and any appointee or selection of officials or employees 

 made by the Administrator who is found guilty of a violation of this 

 Act shall be removed by the Administrator. 



Sec. 10. The Administrator shall present annually to the Congress 

 not later than the 20th day of January in each year a full report of 

 his activities under this Act. 



Sec. 11. In order to carry out the provisions of this Act the 

 Administrator may accept and utilize such voluntary and uncom- 

 pensated services of Federal, State, and local officers and employees 

 as are available, and he may without regard to the provisions of civil- 

 service laws applicable to officers and employees of the United States 

 appomt and fix the compensation of attorneys, engineers, and experts, 

 and he may, subject to the civil-service laws, appoint such other 

 officers and employees as he may find necessary and prescribe their 

 duties. The Administrator is authorized, from sums appropriated 

 pursuant to section 6, to make such expenditures (including expendi- 

 tures for personal services; supplies and equipment; lawbooks and 

 books of reference; directories and periodicals; travel expenses; 

 rental at the seat of government and elsewhere ; the purchase, opera- 

 tion, or maintenance of passenger-carrying vehicles; and printing 

 and binding) as are appropriate and necessary to carry out the 

 provisions of this Act. 



Sec. 12. The Administrator is authorized and empowered to extend 

 the time of payment of interest or principal of any loans made by the 

 Administrator pur.suant to this Act: Provided, however, That with 

 respect to any loan made under section 4, the payment of interest or 

 principal shall not be extended more than five years after such pay- 

 ment shall have become due, and with respect to any loan made 

 under section 5, the payment of principal or interest shall not be 

 extended more than two years after such payment shall have become 



