Public Law 74–702

That the first two sentences of section 36 of the Emergency Farm Mortgage Act of 1933, as amended, are amended to read as follows:

Drainage, irrigation, etc., districts.

Loans by Reconstruction Finance Corporation for benefit of, authorized.

“The Reconstruction Finance Corporation is authorized and empowered to make loans as hereinafter provided, in an aggregate amount not exceeding $125,000,000, including commitments and disbursements heretofore made, to or for the benefit of drainage districts, levee districts, levee and drainage districts, irrigation districts, and similar districts, mutual nonprofit companies and incorporated water-users’ associations duly organized under the laws of any State or Territory, and to or for the benefit of political subdivisions

State subdivision projects included.

of States and Territories which have or propose to purchase or otherwise acquire projects or portions thereof devoted chiefly to the improvement of lands for agricultural purposes. Such loans

Purposes.

Reduction and refinancing of outstanding indebtedness.

shall be made for the purpose of enabling any such district, political subdivision, company, or association (hereafter referred to as the “borrower”) to reduce and refinance its outstanding indebtedness incurred in connection with any such project; or, whether or not it

Completion, etc., of projects.

has any such indebtedness, to purchase, acquire, construct, or complete such a project or any part thereof, or to purchase or acquire

Acquisition of additional drainage, levee, or irrigation rights, etc.

additional drainage, levee, or irrigation works, or property, rights, or appurtenances in connection therewith, and to repair, extend, or improve any such project or make such additions thereto as are

Repair, extension, etc., of projects.

consonant with or necessary or desirable for the proper functioning thereof or for the further assurance of the ability of the borrower to repay its loan: Provided, That the terms of this Act shall not

Proviso.

Limitation.

permit additional or new land to be brought into production outside of the present boundaries of any established or reorganized irrigation district.”

Sec. 2.

Such section is further amended by striking out the sentence

Additional loans for repairs, etc.; provision repealed.

Vol. 48, p. 1111.

therein which reads as follows: “When any loan is authorized pursuant to the provisions of this section and it shall then or thereafter appear that repairs and necessary extensions or improvements to the project of such district, political subdivision, company, or association are necessary or desirable for the proper functioning of its project or for the further assurance of its ability to repay such loan, and if it shall also appear that such repairs and necessary extensions or improvements are not designed to bring new lands into production, the Corporation, within the limitation as to total amount provided in this section, may make an additional loan or loans to such district, political subdivision, company, or association for such purpose or purposes.”