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Title 7 — AgricultureRelease 119-73not60

§1032 Transfer of Rights and Duties of Reconstruction Finance Corporation Arising Out of Rehabilitation and Farm Tenancy Loans to Secretary of the Treasury

Title 7 › Chapter 33— FARM TENANCY › Subchapter IV— GENERAL PROVISIONS › § 1032

Last updated Apr 3, 2026|Official source

Summary

As of June 30, 1947, the Secretary of the Treasury took over all loans, rights, and duties that the Reconstruction Finance Corporation (RFC) had from loans made or allowed to the Secretary of Agriculture under the Department of Agriculture Appropriation Act of 1947 and the Farmers Home Administration Act of 1946. The RFC must transfer to the Secretary of the Treasury all loans outstanding on that date, with unpaid interest, the notes and paperwork for them, and any security. The Secretary of the Treasury must cancel RFC notes and related amounts equal to the unpaid loan principal plus accrued unpaid interest through June 30, 1947. After June 30, 1947, the RFC must make no more loans or advances to the Secretary of Agriculture. Instead, the Secretary of the Treasury will make any remaining loans or advances the RFC had been allowed to make under those Acts. To do this, the Secretary of the Treasury may use money from selling securities under chapter 31 of title 31, and loan repayments will be handled as public-debt transactions.

Full Legal Text

Title 7, §1032

Agriculture — Source: USLM XML via OLRC

All rights, interests, obligations, and duties of the Reconstruction Finance Corporation arising out of loans made or authorized to be made to the Secretary of Agriculture for the purpose of making rural rehabilitation and farm tenancy loans in accordance with the Department of Agriculture Appropriation Act of 1947 and prior appropriations and loans under the Farmers Home Administration Act of 1946 are, as of the close of June 30, 1947, vested in the Secretary of the Treasury; the Reconstruction Finance Corporation is authorized and directed to transfer, as of the close of June 30, 1947, to the Secretary of the Treasury and the Secretary of the Treasury is authorized and directed to receive all loans outstanding on that date, plus accrued unpaid interest, theretofore made to the Secretary under the provisions of the Acts named above, and all notes and other evidences thereof and all obligations constituting the security therefor. The Secretary of the Treasury shall cancel notes of the Reconstruction Finance Corporation, and sums due and unpaid upon or in connection with such notes at the time of such cancellation, in an amount equal to the unpaid principal of the loans so transferred, plus accrued unpaid interest through June 30, 1947. Subsequent to June 30, 1947, the Reconstruction Finance Corporation shall make no further loans or advances to the Secretary and the Secretary of the Treasury is authorized and directed, in lieu of the Reconstruction Finance Corporation, to lend or advance to the Secretary, in accordance with the provisions of said Acts to any unobligated or unadvanced balances of the sums which the Reconstruction Finance Corporation has theretofore been authorized and directed to lend to the Secretary. For the purpose of making such loans or advances, the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter are extended to include such loans or advances to the Secretary of Agriculture. Repayments to the Secretary of Treasury on such loans or advances shall be treated as a public-debt transaction of the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Department of Agriculture Appropriation Act of 1947, referred to in text, is act June 22, 1946, ch. 445, 60 Stat. 270. For complete classification of this Act to the Code, see Tables. The Farmers Home Administration Act of 1946, referred to in text, is act Aug. 14, 1946, ch. 964, 60 Stat. 1062. For complete classification of this Act to the Code, see Tables. Codification “Chapter 31 of title 31” and “that chapter” substituted in text for “the Second Liberty Bond Act, as amended” and “that Act”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. Section was not enacted as part of the Bankhead-Jones Farm Tenant Act which constitutes a major part of this chapter.

Executive Documents

Abolition of Re

Construction

Finance Corporation section 6(a) of 1957 Reorg. Plan No. 1, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out in the Appendix to Title 5, Government Organization and Employees, abolished Re

Construction

Finance Corporation.

Reference

Citations & Metadata

Citation

7 U.S.C. § 1032

Title 7 — Agriculture

Last Updated

Apr 3, 2026

Release point: 119-73not60