Volume 47 · 60
Public Law 72–70
To authorize the Secretary of Agriculture to aid in the establishment of agricultural-credit corporations, and for other purposes.
Approved March 3, 1932
Statutory text
JOINT RESOLUTION
To authorize the Secretary of Agriculture to aid in the establishment of agricultural-credit corporations, and for other purposes.
Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,
That the Secretary of Agriculture
Agricultural-credit corporations.
Advances authorized to assist in organizing, etc.
is hereby authorized to make advances or loans to individuals, under such regulations as he may prescribe, for the purpose of assisting in forming local agricultural-credit corporations, livestock-loan companies, or like organizations, or of increasing the capital stock of such corporations, companies, or organizations qualified to do business with Federal intermediate credit banks, or to which such privileges may be extended.
Sec. 2.
No loans shall be made to individual stockholders on the capital stock of, or to create or increase the capital stock of such corporation, company, or organization in an amount in excess of 75 per centum of the par value of the capital stock of such corporation, company, or organization owned by or proposed to be subscribed to by such individual.
No loan shall be made upon the capital stock of any corporation until the Secretary of Agriculture shall find that the financial structure of such corporation is sound and unimpaired and by him
Approval of management.
approved, nor shall any loan be made upon the capital stock of such corporation until the management of such company shall be made
Due date of indebtedness.
known to and approved by the Secretary, and the Secretary shall have the right at any time to declare the indebtedness to the Government that may be created hereunder due whenever in his judgment the financial structure of the corporation shall become so impaired or the management become so unsatisfactory as to jeopardize the interests of the Government.
Sec. 3.
No loan or advance shall be made to any individual upon the capital stock of or to create or increase the capital stock of any corporation, unless the paid in capital stock of such corporation shall be at least $10,000.
Sec. 4.
To carry out the provisions of this resolution, including all expenses incurred thereunder, there are authorized to be appropriated, out of the unexpended balances of appropriations made to
Vol. 46, pp. 1032, 1160, 1167.
carry out the provisions of Public Resolution Numbered 112, Seventy- first Congress (46 Stat. 1032), as amended by the Interior Department Appropriation Act for the fiscal year ending June 30, 1932, and as amended by Public Resolution Numbered 120 (46 Stat. 1167), and out of the collections from loans made under Public Resolution Numbered 112, as so amended, a sum not exceeding $10,000,000,
To constitute revolving fund.
Administration expenses.
Payments.
which sum shall be paid into a revolving fund. Not to exceed 2 per centum of such fund may be used for expenses of administration. All moneys received from time to time upon the repayment of any advance or loan made pursuant to this Act, together with the interest, shall be paid into the revolving fund and shall thereafter be available for the purposes and in the manner hereinbefore provided.
Approved, March 3, 1932.