Loan to cooperatives.
Section 15
SEC. 15. Loan to cooperatives.—Loan shall be made to any cooperative association, if in the judgment of the board of directors of the association concerned, the loan is in furtherance of the policy declared in section one and the cooperative association applying for the loan has an organization and management, and business policies, of such character as to insure the reasonable safety of the loan and the furtherance of such policy. No cooperative association shall be entitled to apply for a loan unless it has been registered with the Securities and Exchange Commission. The provision of existing cooperative laws regarding minimum number of members shall apply to cooperative associations mentioned in this Act. Loans for the construction or acquisition by purchase of such facilities shall be subject to the following limitations: Loans for the construction or acquisition by purchase of such facilities may be made in an amount equivalent to one hundred per centum of the value of the facilities to be constructed: Provided, however, That the facilities meet the following requirements: All major parts must be completely of steel or concrete materials; If ten annual amortizations will fully pay back for the loans. Loans for facilities not meeting the above-mentioned requirements may be made, provided the amount is not in excess of eighty per centum of the value of the facilities, to be constructed or purchased. No loan for the purchase of facilities shall be made unless the board of directors of the association concerned finds that the purchase price to be paid is reasonable. No loan for the construction or purchase of such facilities shall be made unless the board of directors of the cooperative association finds that there are not available suitable existing facilities that will furnish their services to the cooperative association at reasonable rates, and in addition to the preceding limitations, no loan shall be made unless the said board finds that suitable facilities are not available for purchase or lease at a reasonable price or rent.