Public Law 84–273

That the Bankhead-Jones Farm Tenant Act, as amended (7 U. S. C. 1000 and the following), is further amended as follows: Title I of the Act is amended by the addition of the following new section 16:

“Sec. 16.

(a)(a)

The Secretary is authorized to insure and to make commitments for the insurance of loans made for the purposes spec- ified in this title (including those made in accordance with the Act

63 Stat. 883.

7 USC 1006a, 1006b.

of October 19, 1949) and to take as security for the obligations entered into in connection with such loans first mortgages on the farms with respect to which such loans are made and such other security as may be required by the Secretary. Such mortgages shall create a lien running to the United States for the benefit of the fund, notwithstanding the fact that the note may be held by the lender or his assignee.

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“(b)“(b)

Loans insured under this section shall be subject to all the provisions of this title, except as otherwise provided in this section, and with respect to such loans, the terms used in this Act shall have the following meanings as the context requires:

“(1)“(1)

‘Mortgage’ shall mean ‘loan’ or ‘the instruments relating to a loan’;

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“(2)“(2)

‘Insured mortgage’ shall mean ‘note endorsed for insurance’;

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“(3)“(3)

‘Mortgagor’ shall mean ‘borrower’ or ‘obligor on the note’;

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“(4)“(4)

‘Mortgagee’ shall mean ‘lender’ or ‘holder of insured note..

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“(c)“(c)

Any mortgage insured or any loan made under this Act may be converted to an insured loan under this section at the discretion of the Secretary, and any expenses in connection with such conversion may be paid out of appropriations for administrative expenses.

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“(d)“(d)

In connection with loans insured or converted under this section (1) the holder of the insured note shall be entitled to receive the

7 USC 1005c.

benefits of the insurance as provided in section 13 (a) only in accordance

7 USC 1005b.

with an agreement pursuant to section 12 (j) or when the assignment of the note is required by the Secretary, and (2) notice of default to the lender under section 12 (f) shall not be required”.

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Sec. 2.

Section 12 (f) (1) is amended by striking the word

60 Stat. 1077.

7 USC 1005b.

“promptly” in both the first and second sentences, by inserting after the word “default” in the second sentence the words “in the payment of principal or interest.” and by striking the word “it” in the first sentence and inserting in lieu thereof the word “him”.

Sec. 3.

Section 12 (f) (2) is amended by striking the word

62 Stat. 535.

7 USC 1005b.

“promptly”.

Sec. 4.

Section 13 (a) is amended by striking the words

7 USC 1005c.

“section 12” in the first sentence, inserting in lieu thereof the words “tins title”, and by inserting the words “in the payment of principal or interest” after the word “default” where it first appears in the first sentence.