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which rates shall not be greater than 5 percent or less than 3 percent per annum, and need not be uniform (1) throughout the United States or (2) on loans of different classes. Where circumstances so require, the Administrator may reduce the rate at which unaccrued interest shall be payable on outstanding loans, but in no case to a rate less than 3 percent per annum.
(d) All loans shall be for such a period, not to exceed 40 years, as the Administrator shall prescribe. The period for any loan or class of loans shall be fixed by the Administrator upon the basis of (1) the use to which the proceeds thereof are to be put, (2) the financial resources and earning capacity of the borrower, and (3) in the case of loans to finance the purchase of specific property, the probable rate of depreciation, the estimated life thereof, and the amount of the loan as compared with the total purchase price.
(e) Unless otherwise authorized by the President, all loans for a period of 2 years or more shall provide for repayment in equal annual instalments, which may include interest in the discretion of the Administrator, except that when the loan is for a period of 5 years or more, and in the opinion of the Administrator the financial condition of the borrower so justifies, there need be no requirement that any payment be made on the principal during the first 3 years after the loan is made.
(f) Upon default in the repayment of any loan or payment of interest, the Farm Security Administration may (1) enforce payment by realizing upon the security and by legal proceedings, (2) extend the time of payment where the circumstances so justify, or (3) refinance such loan upon terms and conditions not inconsistent with the provisions of this section.
(g) In the case of any person who has entered into a contract for a loan from any State rural rehabilitation corporation operating, in whole or in part, with funds directly or indirectly granted by the United States, and who is unable to receive the full amount of the loan from the corporation, the Farm Security Administration, upon receiving an assignment of such contract from the corporation, may complete such loan according to its terms, and enforce such contract to the extent of the interest of the Farm Security Administration therein.* [E.O. 7143, Aug. 19, 1935]
301.4 Transfer of the functions, funds, property, and so forth, of the Resettlement Administration to the Secretary of Agriculture. Effective January 1, 1937, all the powers, functions, and duties heretofore vested in the Resettlement Administration by Executive Order 7027, April 30, 1935 (as amended by Executive Order 7200, September 26, 1935), Executive Order 7028, April 30, 1935, and Executive Order 7041, May 15, 1935, are hereby transferred to the Secretary of Agriculture, to be exercised and performed by him; and all funds, personnel
, property, records, and equipment of the Resettlement Administration are hereby transferred to the United States Department of Agriculture, to be under the supervision, control, and direction of the Secretary of Agriculture.* *(Sec. 41 (i), 50 Stat. 529; 7 U.S.C., Sup., 1015 (i)) [E.O. 7530, Dec. 31, 1936, 2 F.R. 7, as amended by E.O. 7557, Feb. 19, 1937, 2 F.R. 343]
*For statutory citation, see note to § 301.1.
301.5 Resettlement Administration changed to Farm Security Administration. Effective September 1, 1937, the Resettlement Administration is changed to Farm Security Administration. The Administrator of the Resettlement Administration shall continue to perform the same functions and be subject to the same limitations as have heretofore been prescribed, but shall, pursuant to the foregoing change, be hereafter known as the Administrator of the Farm Security Administration.* [Sec. Memo. 732, Sept. 1, 1937, 2 F.R. 1800]
301.6 Additional functions. The Administrator of the Farm Security Administration shall perform such of the functions vested in the Secretary of Agriculture under Titles I and II, and related sections of Title IV, of the Bankhead-Jones Farm Tenant Act, as may from time to time be hereafter prescribed.* (50 Stat. 522; 7 U.S.C., Sup., 1000–1029) [Sec. Memo. 732, Sept. 1, 1937, 2 F.R. 1800]
SUBPART—CLAIMS OF DECEASED OR INCOMPETENT EMPLOYEES AND
CREDITORS OF THE FARM SECURITY ADMINISTRATION
301.25 Presentation of claims for deceased employees or creditors. Amounts due from the Farm Security Administration, in excess of five hundred dollars ($500), will be paid only to the legally appointed executor or administrator of the estate of the decedent, or as may be ordered by the court. If an executor or administrator has not and will not be appointed, amounts due from the Farm Security Administration, not in excess of five hundred dollars ($500), may be paid to the person or persons who, under the laws of the domicile of the decedent, or an applicable Federal statute, would be entitled to receive the money if administration were had.* [Par. 3a, A.O. 156, Mar. 31, 1936]
301.26 Presentation of claims for incompetent employees or creditors. In making claims for amounts due an employee or creditor who has been duly adjudged incompetent, the guardian or committee of the estate of such incompetent will submit a certificate showing the appointment and qualification as guardian or committee, whether bond, if required, has been given, and whether appointment is still in force and effect. [Par. 3b, A.O. 156, Mar. 31, 1936]
301.50 Preferential handling of veterans' applications. Preferential consideration will be given applications of veterans of armed forces of the United States who have applied for benefits of the program of the Farm Security Administration. Applications coming to the Farm Security Administration from the Veterans Administration without approval will be referred to the appropriate public welfare agency authorized to determine need for public aid, with the request that they be given prompt consideration.* [Pars. 2b, 3a IV, A.O. 102, rev. 1, Mar. 30, 1936, 1 F.R. 91]
Page 5 PART 302_RESETTLEMENT
Sec. 302.1 Agreements respecting payments 302.6 Same; conditions for use of Conin lieu of taxes.
tract. 302.2 Selection of families for reset. 302.7 Same; major provisions of Farm tlement type projects; eligibil
Purchase Contract. ity.
SUBPART-Tenure agreements 302.3 Same; general selection criteria.
and leases for resettlement type 302.4 Same; minimizing costs.
projects. 302.5 Sale and lease of land to reset- 302.25 Limitations in use of Tenure tlement clients.
Section 302.1 Agreements respecting payments in lieu of taxes. It is the policy of the Farm Security Administration to enter into agreements for the making of payments in lieu of taxes upon the request of the State or political subdivision thereof or other local public taxing unit within whose territorial limits a resettlement type project or rural rehabilitation project for resettlement purposes is located, only when it is contemplated that the title to such project will remain in the United States either temporarily or indefinitely.* (Sec. 2, 49 Stat. 2036; 40 U.S.C., Sup., 432) [Par. 2a, A.O. 213, Nov. 28, 1936]
*88 302.1 to 302.25, inclusive, issued under the authority contained in the Emergency Relief Appropriation Act in effect at the time of issuance, sec. 6, 49 Stat. 118, 49 Stat. 1609, sec. 2 (a), 50 Stat. 354; 15 U.S.C., Sup. 728. More specific authority and statutory provisions interpreted or applied are cited in parentheses at the end of the sections affected. The authority delegated to the President by these statutes has been redelegated by him in the Executive orders listed in note to 8 301.1.
302.2 Selection of families for resettlement type projects; eligibility. The following groups of families are eligible for resettlement on rural community or infiltration projects:
Families required to be resettled in connection with land use type projects. If such families satisfy the criteria of selection set up for the particular project, they will be given preference.
Destitute and low-income farm families of the following types: Farm owners, farm tenants, croppers, farm laborers or persons who were recently in any of the foregoing classes; other persons with farming experience who are or were recently on relief rolls; other persons with farming experience who are or were recently registered as borrowers or receivers of public aid from a state rural rehabilitation corporation or from the Farm Security Administration; other persons with farming experience who are in default in payments to a Federal Land Bank and are in danger of foreclosure and eviction; other persons with farming experience who are in default to or have been denied credit by the Farm Credit Administration or any agency thereof; and other persons with farming experience, including ex-service men and young married men just entering upon the enterprise of farming, who are found to be similarly in need of public aid. On the subsistence homesteads type projects the following groups
of families are eligible for resettlement:
Low-income, self-supporting families from rural and urban areas desirous of relocating in satisfactory homes outside of or near industrial centers.
Destitute or low-income stranded workers' families who have in the past exhibited a capacity for self-support. (Families required to be resettled in connection with land use type projects are to be considered on their merits as are all applicants for projects of this type.)
The following statements define eligibility for obtaining farms in the farm tenant security projects. (These projects have no connection with tenant purchase or farm tenancy loans to be made under the Bankhead-Jones Farm Tenant Act, 50 Stat. 522; 7 U.S.C., Sup., 1000_ 1029.) All candidates for such homes will be referred to the projects by approved referral agencies which will nominate as candidates only families meeting the following requirements:
They must be farm tenants residing in the State in which the project is located.
Their principal occupation during the past 5 years must have been in connection with agriculture.
In general, no families should be considered whose selection would involve moving them a long distance from their present places of residence.
Families already residing on land obtained or purchased for a farm tenant security project are eligible and will be given preference provided they satisfy the criteria of selection for the particular projects.
Families required to be resettled in connection with land use type projects of the Farm Security Administration are eligible for resettlement on farm tenant security projects and will be given preference, provided they satisfy the criteria of selection for the particular project.
It is not necessary that any candidate be on the rehabilitation or relief rolls.* [Par. 3, A.O. 105, rev. 3, Sept. 25, 1936] CBOBS REFERENCE: For Farm Credit Administration, see Chapter I.
302.3 Same; general selection criteria. Families satisfying the above-mentioned eligibility requirements may be accepted for resettlement, and licensing or other necessary agreements may be executed with them, prior to occupancy, as far as available home or farm units permit, if:
Each family as a whole desires the opportunity being made available.
They evidence an acceptable initiative and resourcefulness.
They show promise of ability to enter into community life and profit from instruction and guidance.
They give reasonable assurance of attaining, economic stability sufficient to enable them to meet the rental and other payments on the homes or farms for which they are proposing to obligate themselves. For families approved for rural community or infiltration projects, there must be a reasonable probability of the successful outcome of an acceptable Farm and Home Management Plan. Candidates for farms in farm tenant security projects should have demonstrated in the past successful farm ability and managerial capacity.
Each family has a reputation for paying its debts and meeting its responsibilities.
They have shown sufficient stability of residence. It is desirable for rural community and infiltration projects, and it is highly important in farm tenant security projects, that the families have some *For statutory citation, see note to 8 302.1.
previous knowledge of or connection with the land they wish to occupy.
They are free from infectious diseases and disabilities that are likely to obstruct the fulfillment of obligations. For rural projects, families must pass, before final acceptance, a medical examination.
On all projects, the head of each family is at least 21 years of age. In subsistence homesteads type projects, preference will be given to heads of families under 55 years of age; in rural community and infiltration type projects, preference will be given to heads of families under 50 years of age; and in farm tenant security projects, preference will be given to heads of families who are under 55 years of age.
The applicants are married couples with one or more children or other dependents; in special cases, young married couples without children and families consisting of one spouse and older children may be accepted. For farm tenant security projects, it is preferable that the size of each family be such as to furnish an adequate labor supply without requiring hired labor.
They have occupational, agricultural, or other special experience or training required by the particular project. Such special requirements, if necessary, will be prepared by the regional director as special criteria for that project.
For farm tenant security projects, the applicants have the necessary assets in stock and equipment; that is, it is desirable that they possess, reasonably free from indebtedness, part or all of the work stock, subsistence livestock (such as cows, pigs and chickens), farming equipment, and foodstuffs needed to run them during the next season. As this may not always be practicable, this criterion may, in the discretion of the regional director, be altered and the necessary modification set up as a special criterion for each project.
They are unable to obtain the necessary loans for homes from other Government agencies or private business concerns.
There will be no discrimination based on nationality, race or creed, but consideration will be given to the homogeneity required, in the families accepted for successful community life.* (Pars. 4a, 4b, A.O.
[ 105, rev. 3, Sept. 25, 1936]
302.4 Same; minimizing costs. To minimize costs, the families to be examined should be assembled on definite dates and at their own expense at central points where they can be met by the physician.* (Par. 4a, A.O. 157, rev. 1, Sept. 21, 1936]
302.5 Sale and lease of land to resettlement clients. Farm Security Administration resettlement and State rural rehabilitation corporation (managed or transferred in trust) land and improvements thereon may be sold to heads of eligible farm families (as prescribed in § 302.2) for resettlement purposes where loans under $$ 303.116–303.121 for repairs and improvements are not made. The purpose of Form FSA-LE 207, Farm Purchase Contract, is to provide for all of the following: (a) Permit a client to purchase a farm. (b) Provide sufficient rental to pay all operating expenses. (c) Permit the client, as he is able, to make deposits toward the purchase price over and above the rental otherwise payable; the deposits toward the pur
*For statutory citation, see note to $ 302.1.