Public Law 74–2

That until February

Reconstruction Finance Corporation.

Authority to function continued.

Vol. 47, p. 5; Vol. 48, p. 318.

1, 1937, or such earlier date as the President may fix by proclamation, the Reconstruction Finance Corporation is hereby authorized to continue to perform all functions which it is authorized to perform under law, and the liquidation and winding up of its affairs as provided for by section 13 of the Reconstruction

Vol. 47, p. 10; U. S. C., p. 580.

Finance Corporation Act, as amended, are hereby postponed during the period that the functions of the Corporation are continued pursuant to this Act: Provided, That no officer or employee of the

Proviso.

Salaries, officers and employees.

Reconstruction Finance Corporation shall receive salary at a rate in excess of $10,000 per annum, except that in the case of any position the salary of which at the date of the enactment of this Act is at the rate of $12,500 per annum such salary may continue at such rate.

Sec. 2.

Sec. 3.

Notwithstanding any other provision of law limiting the maturity of obligations taken by it to shorter periods, the

Renewals or extensions.

Reconstruction Finance Corporation may make loans or advances or renewals or extensions thereof to authorized borrowers or by other

Final maturity date.

suitable agreement permit them to run so as to mature at such time or times as the Corporation may determine, not later than January

Proviso.

Railroad loans, etc.

Vol. 47, pp. 6, 714.

U. S. C., p. 573.

31, 1945: Provided, That in respect of loans or renewals or extensions of loans or purchases of obligations under section 5 of the Reconstruction Finance Corporation Act, as heretofore and herein amended (U. S. C., Supp. VII, title 15, ch. 14), to or of railroads, the Corporation may require as a condition or making any such loan or renewal or extension for a period longer than five years, or purchasing any such obligation maturing later than five years

Amortization provision.

from the date of purchase by the Corporation, that such arrangements be made for the reduction or amortization of the indebtedness of the railroad, either in whole or in part, as may be approved by the Corporation after the prior approval of the Interstate Commerce Commission.

Sec. 4.

Sec. 5.

The Reconstruction Finance Corporation Act, as amended

Vol. 48, p. 1109.

(U. S. C., Supp. VII, title 15, ch. 14), is further amended by inserting after section 5b thereof the following new section:

“Sec. 5c.

To assist in the reestablishment of a normal mortgage

Loans to mortgage associations upon nonassessable stock.

market, the Reconstruction Finance Corporation may, with the approval of the President, subscribe for or make loans upon the nonassessable stock of any class of any national mortgage association organized under Title III of the National Housing Act and of any

Vol. 48, p. 1252.

mortgage loan company, trust company, savings and loan association, or other similar financial institution, now or hereafter incorporated

To other loan companies.

under the laws of the United States, or of any State, or of the District of Columbia, the principal business of which institution is that of making loans upon mortgages, deeds of trust, or other instruments conveying, or constituting a lien upon, real estate or

Purchase of capital notes or debentures.

any interest therein. In any case in which, under the laws of its incorporation, such financial institution is not permitted to issue nonassessable stock, the Reconstruction Finance Corporation is authorized, for the purposes of this section, to purchase the legally issued capital notes or debentures of such financial institutions. The total

Aggregate amount of loans.

face amount of loans outstanding, nonassessable stock subscribed for, and capital notes and debentures purchased and held by the Reconstruction Finance Corporation, under this section, shall not exceed at any one time $100,000,000. Notwithstanding any other

Disposal of securities acquired.

provision of law, the Reconstruction Finance Corporation may, under such rules and regulations as it may prescribe (which regulations shall include at least sixty days’ notice of any proposed sale to the issuer or maker), sell, at public or private sale, the whole or any part of the stock, capital notes, or debentures acquired by the Corporation pursuant to this section, and the preferred stock, capital notes, or debentures acquired pursuant to any other provision of law. The

Amount of outstanding obligations increased.

amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount sufficient to carry out the provisions of this section.”

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Sec. 6.

Section 5e (a) of the Reconstruction Finance Corporation

Loans or purchases of assets of closed banks.

Vol. 48, p. 971.

Act, as amended, is amended (1) by inserting in the first sentence thereof after the words “the assets” and before the words “of any bank”, the following: “, or any portion thereof,”; and (2) by inserting in the second sentence thereof after the words “such assets” and before the words “held for the benefit” the following: “, or any portion thereof,”.

Sec. 7.

Notwithstanding any other provision of law, Commodity Credit Corporation, a corporation organized under the laws of the State of Delaware as an agency of the United States pursuant to the Executive order of the President of October 16, 1933, shall continue, until April 1, 1937, or such earlier date as may be fixed by the President by Executive order, to be an agency of the United States.

Investment in capital stock.

During the continuance of such agency, the Secretary of Agriculture and the Governor of the Farm Credit Administration are authorized and directed to continue, for the use and benefit of the United States, the present investment in the capital stock of Commodity Credit

Assets, use of.

Corporation, and the corporation is hereby authorized to use all its assets, including capital and net earnings therefrom, and all moneys which have been or may hereafter be allocated to or borrowed by it, in the exercise of its functions as such agency, including the making of loans on agricultural commodities.

Sec. 8.

Section 1 of the Act entitled “An Act to authorize the Reconstruction Finance Corporation to subscribe for preferred stock and purchase the capital notes of insurance companies, and for other purposes”, approved June 10, 1933, as amended (U. S. C., Supp. VII, title 15, ch. 14, sec. 605e), is amended by striking from the last sentence thereof “$50,000,000” and inserting in lieu thereof “$75,000,000”.

Sec. 9.

Notwithstanding any other provision of law, the Export-Import Bank of Washington, and the Second Export-Import Bank of Washington, District of Columbia, banking corporations organized under the laws of the District of Columbia as agencies of the United States, pursuant to Executive orders of the President, shall continue, until June 16, 1937, or such earlier date as may be fixed by the President by Executive order, to be agencies of the United States, and in

Powers.

addition to existing charter powers, and without limitation as to the total amount of obligations thereto of any borrower, endorser, acceptor, obligor, or guarantor at any time outstanding, said banking corporations are hereby authorized and empowered to discount notes, drafts, bills of exchange, and other evidences of debt for the purpose of aiding in the financing and facilitating exports and imports and the exchange of commodities between the United States and any of its territories and insular possessions and any foreign country or the agencies or nationals thereof, and, with the approval of the Secretary of the Treasury, to borrow money and rediscount notes, drafts, bills of exchange, and other evidences of debt for the purposes aforesaid.

Investments.

During the continuance of such agencies, the Secretary of State and the Secretary of Commerce are authorized and directed to continue, for the use and benefit of the United States, the present investment in the capital stock of said banking corporations, and they are hereby

Assets, use of.

authorized to use all of their assets, including capital and net earnings therefrom, except such earnings as may be required from time to time to pay dividends upon their preferred capital stock, and to use all moneys which have been or may hereafter be allocated to or borrowed by them, in the exercise of their functions as such agencies.

Sec. 10.

Section 5d of the Reconstruction Finance Corporation Act, as amended (U. S. C., Supp. VII, title 15, ch. 14), is amended (1) by striking out all of the first sentence thereof after the word “industry” and the remainder of the first paragraph, and inserting in lieu thereof the following:

Financing sale of electrical, plumbing, etc., appliances.

“, and to any institution, now or hereafter established, financing principally the sale of electrical, plumbing or air conditioning appliances or equipment or other household appliances, both urban and rural. Such loans shall, in the opinion of the board of directors

Security.

of the Corporation, be so secured as reasonably to assure repayment of the loans, may be made directly, or in cooperation with banks or other lending institutions, or by the purchase of participations, shall mature not later than January 31, 1945, shall be made

Conditions.

only when deemed to offer reasonable assurance of continued or increased employment of labor, shall be made only when, in the opinion of the board of directors of the Corporation, the borrower is solvent, shall not exceed $300,000,000 in aggregate amount at any one time outstanding, and shall be subject to such terms, conditions, and restrictions as the board of directors of the Corporation may determine.”;

and (2) by striking out from the second paragraph thereof the figures

Loan-making power extended to 1937.

Vol. 48, p. 1109.

“1935” wherever they appear herein, and inserting in lieu thereof the figures “1937”.

Sec. 11.

In all cases where the Reconstruction Finance Corporation

Emergency Relief and Construction Act.

Vol. 47, p. 711.

Substitution of bonds.

shall hold any bonds or other evidences of indebtedness of any borrower under section 201 (a) of the Emergency Relief and Construction Act of 1932, whether heretofore or hereafter acquired, and such borrower shall be able and willing to substitute or cause to be substituted therefor any other bonds or other evidences of indebtedness, whether of the same or longer maturities or otherwise differing, which, in the judgment of said Reconstruction Finance Corporation, are more desirable than those so held, the said Reconstruction Finance Corporation is authorized to accept such bonds or other evidences of indebtedness, in exchange and substitution for such bonds or other

Terms and conditions.

evidences of indebtedness so held by it, upon such terms and conditions as may be agreed upon with such borrower at the time of, or in contemplation of, such exchange and substitution.

Sec. 12.

Section 14 of an Act entitled “An Act relating to direct

Vol. 48, p. 1112.

loans for industrial purposes by Federal Reserve banks, and for other purposes”, approved June 19, 1934 (Public, Numbered 417, Seventy-third Congress), is amended to read as follows:

“Sec. 14.

The Reconstruction Finance Corporation is authorized

Loans to milling and smelting industries.

Security.

and empowered to make loans upon sufficient security to recognized and established corporations, individuals, and partnerships engaged in the business of mining, milling, or smelting ores. The Reconstruction

Developing ore, etc., bodies.

Finance Corporation is authorized and empowered also to make loans to corporations, individuals, and partnerships engaged in the development of a quartz ledge, or vein, or other ore body, or placer deposit, containing gold, silver, or tin, or gold and silver, when, in the opinion of the Reconstruction Finance Corporation, there is sufficient reason to believe that, through the use of such loan in the development of a lode, ledge, or vein, or mineral deposit, or placer gravel deposit, there will be developed a sufficient quantity of ore, or placer deposits of a sufficient value to pay a profit upon mining operations: Provided, That not to exceed $20,000 shall be loaned to

Proviso.

Maximum loan.

any corporation, individual, or partnership, for such development purposes: Provided further, That there shall not be allocated or made

Aggregate amount.

available for such development loans a sum in excess of $10,000,000.”

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Sec. 13.

Notwithstanding any other provision of law, the Reconstruction

Use as general funds, sale receipts, etc.

Finance Corporation is authorized and empowered to use as general funds all receipts arising from the sale or retirement of any of the stock, notes, bonds, or other securities acquired by it pursuant to any provision of law.