Counties in Commercial Corn-producing Areas

of America in Congress assembled, That section 2 (c) of the Act of April 6, 1949,
as amended (12 U. S. C. 1148a-2 (c)), is further amended to read as follows:
"(c) In areas designated by the Secretary, where the production of livestock
and livestock products constitutes a substantial part of the farm economy of
the area and livestock operations in the area have been adversely affected by
drought continuing over at least two years, or other natural disaster particularly
affecting livestock production, loans may be made to established producers and
feeders of cattle, sheep, and goats (not including the operators of commercial
feed lots) who have good records of operations, but are unable temporarily to
get the credit they need for continuing sound operations from recognized lenders,
and who have a reasonable chance at working out their difficulties with supple-
mentary financing. No such loans shall be made after June 30, 1960, except
that supplementary advances to producers indebted for loans made under this
subsection may be made as authorized by the Secretary. Loans hereunder may
be made on such security as the borrower has available and for such period as the
Secretary may prescribe. The creditors of the applicant will not be asked to
subordinate their indebtedness but must be willing to work with the borrower

ministration or other responsible sources, at rates and terms which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secretary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

SEC. 2. There is hereby created a revolving fund for the purposes of this Act which shall be established as a separate fund available only for the purposes of this Act. Said fund shall be composed of not more than $200,000,000, such additional amounts as Congress may from time to time approve, and collections from repayments and liquidations of loans made under section 1 of this Act. Such sums shall be borrowed by the Secretary from the Secretary of the Treasury for such terms as may be determined by the Secretary of Agriculture with interest at the rate as determined by the Secretary of the Treasury equal to the current average market yield of outstanding marketable obligations of the United States having maturities comparable to such advances.

The Secretary of the Treasury is directed to purchase any notes issued by the Secretary pursuant to this section and any renewals thereof and for such purposes may use as a public transaction, the proceeds of the sale from any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which such securities may be issued under such Act, as amended, are hereby extended to include any such purchases. All redemptions, purchases and sales by the Secretary of the Treasury of such notes shall be treated as public debt transactions of the United States.

[H. R. 10356, 85th Cong., 2d sess.]

A BILL To authorize emergency refinancing loans to farmers in disaster areas Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of Agriculture is authorized to make loans, in any area heretofore or hereafter covered by a major disaster determined by the President under Public Law 875, Eighty-first Congress, or any area covered by a production disaster determination by the Secretary of Agriculture under section 2 (a) of Public Law 38, Eighty-first Congress, to bona fide farmers and stockmen who have a reasonable chance of continuing their farming operations but who are unable to secure necessary extensions, renewals, or refinancing of their existing indebtedness from their present creditors or from commercial banks, cooperative lending agencies, the Farmers' Home Administration or other responsible sources, at rates and terms at which they could reasonably be expected to fulfill. Such loans shall be repayable in not to exceed five years and at such rate of interest as the Secretary shall determine but not less than 1 per centum per annum above the rate determined by the Secretary of the Treasury at the beginning of the fiscal year in which the loan is made, equal to the current average yield of outstanding marketable obligations of the United States having maturities of five years. The loans shall be evidenced by the full liability of the maker and, in case of loans to corporations or other business organizations, by the personal obligation of each person holding as much as 10 per centum of the stock or interest in the corporation or organization. The Secretary shall provide by regulations for the taking of security for such loans only such available security as will permit the borrower when feasible to secure his current operating credit from his normal credit sources.

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Counties in Commercial Corn-producing Areas: Hearings Before the ...