Public Law 74–234

That the Act entitled “An Act authorizing the Reconstruction Finance Corporation to make loans to nonprofit corporations for the repair of damages caused by floods or other catastrophes, and for other purposes”, approved April 13, 1934, as amended, is amended to read as follows:

Loans to municipalities, corporations, individuals, etc., authorized for rehabilitation purposes.

“That the Reconstruction Finance Corporation is authorized and empowered, through such existing agency or agencies as it may designate, to make loans to corporations, partnerships, or individuals, municipalities or political subdivisions of States or of their public agencies, including public school boards and public school districts, and water, irrigation, sewer, drainage, and flood control districts for the purpose of financing the repair, construction, reconstruction, or rehabilitation of structures or buildings, including such equipment, appliances, fixtures, machinery, and appurtenances as shall be deemed necessary or appropriate by the Reconstruction Finance

Repairs to public works, etc., damaged during 1935 or 1936.

Corporation, and for the purpose of financing the repair, construction, reconstruction, or rehabilitation of water, irrigation, gas, electric, sewer, drainage, flood-control, communication, or transportation systems, highways, and bridges damaged or destroyed by earthquake, conflagration, tornado, cyclone, hurricane, flood, or other catastrophe in the years 1935 or 1936, and for the purpose of financing the acquisition of structures, buildings, or property, real and

Replacements.

personal, in replacement of structures, buildings, groins, jetties, bulk-heads, or property, real and personal, destroyed or rendered unfit for use by reason of the catastrophe, when such repair, construction, reconstruction, rehabilitation, or acquisition is deemed by the Reconstruction

Security for loans.

Finance Corporation to be useful or necessary, said loans to be so secured as reasonably to assure repayment thereof.

Collateral requirements.

Private real property.

“Obligations accepted hereunder shall be collateraled—

“(a)“(a)

In the case of loans for the acquisition, repair, construction, reconstruction, or rehabilitation of private real property, by the obligations of the owner of such property, secured by a lien thereon;

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“(b)“(b)

In case of loans for the repair, construction, reconstruction, or rehabilitation of privately owned water, gas, electric, communication, or transportation systems, by the obligations of the owners ofsuch water, gas, electric, communication, or transportation systems, secured by a lien thereon; and

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“(c)“(c)

In case of loans for the repair, construction, reconstruction,

Municipal, etc., property.

or rehabilitation of property of municipalities or political subdivisions of States or of their public agencies, including public-school boards and public-school districts, and water, irrigation, sewer, drainage, and flood-control districts, by an obligation of such municipality, political subdivision, public agency, board, or district, payable from any source, including taxation or tax-anticipation warrants.

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“The collateral obligations shall have maturities not exceeding ten

Maturities.

years in case of loans made under paragraph (a) of this Act and not exceeding twenty years in case of loans under paragraphs (b) and (c) of this Act.

“The Corporation shall prescribe such regulations as will most

Regulations.

effectively expedite the repair, construction, reconstruction, and rehabilitation provided for by this Act and effectively carry out the emergency-relief purposes of this Act.

“Notwithstanding any other provision of law, disbursement may

Time limit for disbursement on commitments.

be made at any time prior to January 23, 1939, on any commitment made by the Corporation under the terms of this Act, as amended.

“The aggregate of loans made under this Act shall not exceed

Aggregate amount authorized.

$50,000,000.”

Sec. 2.

The title of the said Act is amended to read as follows:

Title amended.

“An Act authorizing the Reconstruction Finance Corporation to make loans for the repair of damages caused by floods or other catastrophies ¹¹So in original., and for other purposes.”

Sec. 3.

Title I of the National Housing Act, as amended, is

National Housing Act, amendment.

Vol. 48, p. 1247; U. S. C., p. 476.

amended by inserting after section 5 thereof the following new section:

“Sec. 6.

(a)(a)

The Administrator is authorized and empowered,

Insurance of financial institutions, eligible for credit insurance, against loss.

upon such terms and conditions as he may prescribe, to insure banks, trust companies, personal finance companies, mortgage companies, building and loan associations, installment lending companies, and other such financial institutions, heretofore or hereafter approved by the Administrator as eligible for credit insurance, against losses which they may sustain as a result of loans and advances of credit, and purchases of obligations representing loans and advances of credit, made by them subsequent to the date this section takes effect and prior to January 1, 1937, or such earlier date as the President may fix by proclamation upon his determination that the emergency no longer exists, for the purpose of financing, by the owners of real property or by lessees thereof under a lease for a period of not less than one year, the restoration, rehabilitation, rebuilding and replacement of improvements on such real property and equipment and machinery thereon which were damaged or destroyed by earthquake, conflagration, tornado, cyclone, hurricane, flood, or other catastrophe in the years 1935 or 1936, either on the same site or on a new site in the same locality where the damaged or destroyed property was located. The Administrator is authorized to grant insurance under

Maximum amount.

this section to any such financial institution up to 10 per centum of the total amount of loans, advances of credit, and purchases made by such financial institution for such purpose, and any insurance

Application of accumulated reserve to losses.

reserve accumulated by any such financial institution under section 2 of this title prior to April 1, 1936, shall be applicable to the payment of any losses sustained by it as a result of loans, advances of credit, or purchases insured under this section.

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“(b)“(b)

No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it (1) unless the loan bears such interest, has such maturity, and contains such other terms, conditions, and restrictions, as the Administrator shall prescribe in order to make credit available for the purposes of this section; and (2) unless the amount of such loan, advance of credit, or purchase is not in excess of $2,000, except that in the case of any such loan, advance of credit, or purchase made for the purpose of such financing with respect to apartment or multiple family houses, hotels, office, business or other commercial buildings, hospitals, orphanages, colleges, schools, churches, or manufacturing or industrial plants, such insurance may be granted if the amount of the loan, advance of credit, or purchase is not in excess of $50,000.”

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Sec. 4.