An Act to amend the Public Buildings Act of 10,49 to authorize the Administrator of General Services to acquire title to rear property and to provide for the construction Of certain public buildings there on by executing purchase contracts to extend tile authorize
PL 83-519 (H.R.6342), enacted 07/22/1954

518 
PUBLIC LAW 519-JULY 22, 1954 
[68 S T A T . 
[illy 22,1954 
[H. R. 6342] 
Public Law 519 
CHAPTER 560 
AN ACT 
To amend the Public Buildings Act of 1949 to authorize the Administrator of 
General Services to acquire title to real property and to provide for the con-
struction of certain public buildings thereon by executing purchase contracts; 
to extend the authority of the Postmaster General to lease quarters for post-
oflBce purposes; and for other purposes. 
GSA a n d 
Post 
Office. 
P r o p e r t y conr 
tracts. 
PubUc 
B u i l d -
i n g s P u r e h a s e 
C o n t r a c t Act of 
1954. 
63 Stat. 200. 
40 u s e 352 note. 
S p a c e procure-
ment. 
P u r c h a s e con" 
tracts. 
Terns. 
Limitation* 
Existing prop< 
erty utilization. 
Agreements^ 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress oj^semhled, 
TITLE I—GENERAL SERVICES ADMINISTRATION 
SEC. 101. The Public Buildings Act of 1949 is amended by (1) 
redesignating section 411 thereof as section 412, and (2) inserting, 
immediately after section 410 thereof, the following new section: 
"SEC. 411. (a) Whenever the Administrator of General Services 
determines that (1) the needs for space for the permanent activities 
of the Federal Government in any particular area cannot be satisfied 
by utilization of any existing property suitable for the purpose then 
owned by the Government, and (2) the best interests of the United 
States will be served by taking action hereunder, he is hereby author-
ized to obtain and provide space for the accommodation of activities 
of the Government in the several States, the District of Columbia, 
and the Territories and possessions of the United States (including 
Guam), except for the accommodation of activities of the Post Office 
Department, by negotiating and entering into purchase contracts, the 
terms of which shall not be less than ten nor more than twenty-five 
years and which shall provide in each case that title to the property 
shall vest in the United States at or before the expiration of the con-
tract term and upon fulfillment of the terms and conditions stipulated 
in each of such purchase contracts. 
Such terms and conditions shall 
include provision for the application to the purchase price agreed 
upon therein of installment payments made thereunder including pro-
vision for the exchange of surplus real property or real property 
which may become surplus as a result of such agreement, where the 
Administrator determines that the best interests of the Government 
in economy and efficiency of operation will be served. 
Every pur-
chase contract entered into pursuant to this title shall provide for 
equal annual payments for the amortization of principal with interest 
thereon and the Administrator shall not enter into any such contract 
unless the amount of the annual payment required by such contract 
plus the aggregate of the annual payments required by all other pur-
chase contracts entered into during the same fiscal year do not exceed 
the specific limitations on such payments which shall be provided in 
appropriation acts: Provided^ That prior to July 1,1955, a limitation 
of not to exceed $5,000,000 is hereby established for such purpose. 
"(b) The Administrator of General Services is authorized to exer-
cise the powers granted in this section with respect to existing prop-
erties, including those for which conversions, additions, extensions, 
or remodeling may be required, and properties upon which construc-
tion is to be subsequently effected in pursuance of the terms of appli-
cable purchase contracts. 
"(c) The Administrator of General Services is authorized to enter 
into agreements with any person, copartnership, corporation, or other 
public or private entity, to effectuate any of the purposes of this sec-
tion; and is further authorized to bring about the development and 
improvement of any land owned by the United States and under the 
control of the General Services Administration including the demo-
68 
S T A T . ] 
PUBLIC LAW 519-JULY 22, 1954 
519 
lition of obsolete and outmoded structures situated thereon, by pro-
viding for the construction thereon by others of such structures and 
facilities as shall be the subject of the applicable purchase contracts. 
"(d) Each such purchase contract shall include such provisions as 
the Administrator of General Services, in his discretion, shall deem 
to be in the best interests of the United States and appropriate to secure 
the performance of the obligations imposed upon the party or parties 
that shall enter into such agreement with the United States: Provided, 
That no such agreement may provide for the payment by the United 
States in pursuance of the terms thereof of moneys in an aggregate 
annual amount in excess of 15 per centum of the appraised fair market 
value of the property at the date of the purchase contract, or in the 
case of property where construction shall not have been completed at 
that date in excess of 15 per centum of the fair market value at the 
date of completion of such construction. 
No such purchase contract 
shall provide for any payments to be made by the United States in 
excess of the amount necessary, as determined by the Administra-
tor, to— 
"(1) amortize— 
"(A) the cost of improvements to be constructed plus the 
fair market value, on the date of the agreement, of the site, 
if owned or acquired by the contractor; or 
"(B) the fair market value, on the date of the agreement, 
of completed improvements together with the site thereof; or 
" (C) a combination of the foregoing in the case of existing 
improvements to be remodeled by the contractor; and 
"(2) provide a reasonable rate of interest on the outstanding 
principal as determined under (1) above; and 
"(3) reimburse the contractor for the cost of any other obliga-
tions assumed by him under the contract, including (but not limi-
ted to) payment of taxes, costs of carrying appropriate insurance, 
and costs of repair and maintenance if so assumed by the 
contractor. 
"(e) No proposed purchase contract agreement shall be executed 
under this section unless such agreement has been approved by the 
Director of the Bureau of the Budget, as evidenced by a written state-
ment of such officer to the effect that the execution of such agreement is 
necessary and is in conformity with the policy of the President. 
No 
appropriations shall be made for purchase contract projects which have 
not been approved by resolutions adopted by the Committees on Public 
Works of the Senate and House of Representatives, respectively, within 
three years after the date of enactment of this Act. 
For the purpose 
of securing consideration of said approval the Administrator shall 
transmit to each such Committee a prospectus oi the proposed project, 
including (but not limited to)— 
" (1) a brief description of the building located or to be erected 
at a given location; 
"(2) an estimate of the maximum cost of site and building 
together with the term of years over which payments would run 
and the maximum rate of interest that would be acceptable for 
any deferred part of such cost; 
"(3) a certificate of need for the space signed by the head of 
the agency or agencies which will use the facility; 
"(4) a statement by the Administrator of the General Services 
Administration that suitable space owned by the Government is 
not available and that suitable rental space is not available at a 
price commensurate with that to be afforded through the contract 
proposed; 
"(5) a statement of the managerial, custodial, heat and utility 
services to be provided by the contractor, or an estimate of their 
Contract p r o v i -
sions* 
Limitations* 
Budget and Con-
g r e s s i o n a l 
ap-
proval. 
520 
PUBLIC LAW 519-JULY 22, 1954 
[68 STAT. 
probable cost if to be supplied in any part by the Government; 
"(6) a statement of the requirements for tax liability, upkeep 
and maintenance of the property by either the contractor or the 
Government during the period of the contract; 
"(7) a statement of rents and other housing costs currently 
being paid by the Government for any agencies to be housed in 
the building to be erected; and 
"(8) a statement in writing by the Director of the Bureau of 
the Budget that the project is necessary and in conformity with 
the policy of the President. 
Avaiilbil*funds. 
"(^) Fuuds now or hereafter available for the payment of rent 
and related charges for premises, whether appropriated directly to 
the General Services Administration or to any other agency of the 
Government and received by said Administration for such purpose, 
may be utilized by the Administrator of General Services to make 
payments becoming due from time to time from the United States 
as current charges in connection with agreements entered into under 
ti^*^^ ^*^'^"^^^" ^luthority of this section: Promded^ That no such funds may be 
expended for acquisition of title to the property covered by any such 
agreement prior to the expiration of the contract term specified therein 
(whether by exercise of option to purchase or otherwise) in the 
absence of specific appropriation of funds for such acquisition, which 
ex^tonM'"^*'*^ appropriations are hereby authorized: Provided 
further^ That the 
value of any Government real property to be exchanged under any 
such agreement may be credited at the time of exchange to the pay-
ments to be made by the United States thereunder: Provided 
further^ 
That Government real property to be exchanged may be credited in 
whole or in part to the purchase price of the property for which it 
is exchanged, except that where the amount of the credit for the real 
property to be exchanged exceeds the amount of the purchase price, 
the amount of the remaining proceeds shall, except as provided in 
Post, p. 524. 
section 205 of the Post Office Department Property Act of 1954, be 
covered into the miscellaneous receipts of the Treasury of the United 
States. 
Postal purposes. 
"(g) When requcsted by the Postmaster General, the Administrator 
of General Services is hereby authorized to exercise the authority 
vested in him by this section (1) to acquire property for postal pur-
poses, or (2) to provide space for postal purposes in buildings acquired 
under this section for other purposes. 
Taxes. 
"(h) With rcspect to any interest in real property acquired under 
the provisions of this section, the same shall be subject to State and 
local taxes until title to the same shall pass to the Government of the 
United States. 
Separability. 
"(i) If any provision of this section or the application thereof to 
any person or circumstance is held invalid, the remainder of this sec-
tion and the application thereof to other persons or circumstances shall 
not be affected thereby. 
^aS'^a'gl*. 
"(J) (^) Section 302 (c) of the Federal Property and Adminis-
41 use* 252.' 
trative Services Act of 1949 and section 355 of the Revised Statutes, 
as amended (50 U. S. C. 1T5), shall apply to purchase contract agree-
ments entered into under this section, except that any such agreement 
Attorney Gen- may be entered into and placed in effect after request for but prior 
erai's opinion. 
^^ receipt of an opinion of the Attorney General with respect to the 
validity of title to the property described therein. 
Non-appiicabii- 
"(2) Except as provided by paragraph (1) of this subsection, sec-
ity O
f statutes. 
^.^^^ ^^^^^ ^^^^^ ^^^ ^^^^ ^^ ^^^ Reviscd Statutes, as amended (40 
U. S. C. 259: 41 U. S. C. 12,14); section 1 of the Act of March 3,1877 
a 9 Stat. 370; 40 U. S. C. 34); section 3 of the Act of August 27,1935, 
as amended (60 Stat. 257; 40 U. S. C. 304c); section 407 of this Act; 
68 
S T A T . ] 
PUBLIC LAW 519-JULY 22, 1954 
521 
and any other provision of law (except applicable labor standards 
provisions) relating to the acquisition of real property, construction 
of buildings, or leasing of space, shall not apply to purchase contract 
agreements executed under this section." 
SEC. 102. It is not the intention of the Congress that the program 
authorized by this title shall constitute a substitute for or a replace-
ment of any program for the construction by the United States of such 
structures as may be required from time to time by the Federal 
Government. 
SEC. 103. This title may be cited as the "Public Buildings Purchase 
Contract Act of 1954". 
F e d e r a l 
c o n -
s true tion progratnEi* 
Citation of title« 
TITLE II—POST OFFICE DEPARTMENT 
SEC. 201. It is the purpose of this title to supplement existing pro-
visions of law for the leasing of space for postal purposes by providing 
authorization for the acquisition by the Postmaster General of such 
space through the execution of lease-purchase and other agreements 
under which the United States will obtain immediate use of such space 
and will make periodic payments, and in the case of lease-purchase 
agreements will obtain title to the property described therein at or 
prior to the end of the term prescribed therein. 
It is not the intention 
of the Congress that the program authorized by section 202 of this title 
shall constitute a substitute for or a replacement of any program for 
the construction by the United States of such structures as may be 
required from time to time by the postal service. 
SEC. 202. (a) Whenever the Postmaster General determines that 
(1) there is a substantial need for space for postal purposes in any 
particular area which cannot be satisfied by utilization of any existing 
property suitable for the purpose then owned by the Government, (2) 
the receipts of the post office serving such area exceed $10,000 per year, 
and (3) the best interests of the United States will be served by taking 
action hereunder, he is hereby authorized to obtain and provide space 
for postal purposes in suitable structures of permanent-type construc-
tion in the several States, the District of Columbia, and the Territories 
and possessions of the United States (including Guam), by negotiating 
and entering into lease-purchase agreements, the terms of which shall 
not be less than ten nor more than twenty-five years and which shall 
provide in each case that title to the property shall vest in the United 
States at or before the expiration of the leasehold term and upon 
fulfillment of the terms and conditions stipulated in each of such 
lease-purchase agreements. 
Such terms and conditions shall include 
provision for the application to the purchase price agreed upon therein 
of rental payments made thereunder. 
Such payments under any such 
agreement may include amounts for the amortization of the fair market 
value on the date of such agreement of the property described therein. 
The financial transactions of the Post Office Department with respect 
to such lease-purchase agreements shall be subject to the accounting 
and auditing requirements of the Post Office Department Financial 
Control Act of 1950 (Act of August 17, 1950, ch. 735, Eighty-first 
Congress, second session). 
(b) Except as provided in subsection (d) of this section, the Post-
master General is authorized to exercise the powers granted in this 
section with respect to existing properties, including those for which 
conversions, additions, extensions, or remodeling may be required, and 
properties upon which construction is to be subsequently effected in 
pursuance of the terms of applicable lease-purchase agreements. 
(c) Except as provided in subsection (d) of this section, the Post-
master General is authorized to enter into agreements with any person. 
Post Office De-
partment Property 
Act of 1954. 
Purpose. 
S p a c e procure-
ment. 
Lease-purchase 
agreements. 
Terms. 
Accounting a n d 
auditing. 
64 Stat. 460. 
3 9 u s e 794-794f. 
Existing p r o p -
erty utilization. 
Agreements. 
522 
PUBLIC LAW 519-JULY 22, 1954 
[68 S T A T . 
Land de v e l o p -
ment, etc* 
Restriction* 
Agreement provi-
sions. 
Use of 
funds • 
r e n t a l 
Title ac q u i s i-
tion. 
Budget and Con-
gr e s s io n a l ap-
proval* 
copartnership, corporation, or other public or private entity, to effec-
tuate any of the purposes of this section; and is further authorized 
to bring about the development and improvement of any land pur-
chased by the United States for postal purposes, including the demo-
lition of obsolete and outmoded structures situate thereon, by provid-
ing for the construction thereon by others of such structures and 
facilities as shall be the subject of the applicable lease-purchase 
agreement. 
(d) The authority conferred on the Postmaster General by sub-
sections (b) and (c) of this section to enter into lease-purchase agree-
ments with respect to property owned by the Government on the date 
of the enactment of this Act, is hereby restricted to exclude from such 
authority any site which has been acquired pursuant to law, prior to 
the enactment of this Act, on which there has been constructed a 
building to be used for postal purposes and which is presently being 
used for such purposes. 
(e) Each such lease-purchase agreement shall include such provi-
sions as the Postmaster General, in his discretion, shall deem to be 
in the best interest of the United States and appropriate to secure 
the performance of the obligations imposed upon the party or parties 
that shall enter into such agreement with the United States. 
No 
such agreement shall provide for any payment to be made by the 
United States in excess of the amount necessary, as determined by 
the Postmaster General, t o ^ 
(1) amortize— 
(A) the cost of improvements to be constructed plus the 
fair market value, on the date of the agreement, of the site, 
if owned or acquired by the contractor, or 
(B) the fair market value, on the date of the agreement, of 
completed improvements together with the site thereof, or 
(C) a combination of the foregoing in the case of existing 
improvements to be remodeled by the contractor; and 
(2) provide a reasonable rate of interest on the outstanding 
principal as determined under (1) above, and 
(3) reimburse the contractor for the cost of any other obliga-
tions assumed by him under the contract, including (but not 
limited to) payment of taxes, costs of carrying appropriate insur-
ance, and costs of repair and maintenance if so assumed by the 
contractor. 
(f) Funds available to the Post Office Department for the payment 
of rents are authorized to be utilized by the Postmaster General to 
make any payments becoming due from time to time from the United 
States in pursuance of lease-purchase agreements entered into under 
the authority of this title: Provided^ That no such funds may be 
expended for acquisition of title to the property covered by any lease-
purchase agreement prior to the expiration of the leasehold term speci-
fied therein (whether by exercise of option to purchase or otherwise) 
in the absence of specific appropriation of funds for such acquisition, 
which appropriations are hereby authorized. 
(g) No proposed lease-purchase agreement shall be executed under 
this section unless such agreement has been approved by the Director 
of the Bureau of the Budget, as evidenced by a written statement of 
such officer to the effect that the execution of such agreement is neces-
sary and is in conformity with the policy of the President. 
No appro-
priations shall be made for lease-purchase projects which have not 
been approved by resolutions adopted by the Committees on Public 
Works of the Senate and House of Kepresentatives, respectively, within 
three years after the date of enactment of this Act. 
For the purpose 
of securing consideration of said approval the Postmaster General 
68 STAT.] 
PUBLIC LAW 519-JULY 22, 1954 
523 
shall transmit to each such Committee a prospectus of the proposed 
project, including (but not limited to)— 
(1) a brief description of the building located or to be erected 
at a given location; 
(2) an estimate of the maximum cost of site and building 
together with the term of years over which payments would run 
and the maximum rate of interest that would be acceptable for 
any deferred part of such cost; 
(3) a certificate of need for the space signed by the head of the 
agency or agencies which will use the facility; 
(4) a statement by the Postmaster General that suitable space 
owned by the Government is not available and that suitable rental 
space is not available at a price commensurate with that to be 
afforded through the contract proposed; 
(5) a statement of the managerial, custodial, heat and utility 
services to be provided by the contractor, or an estimate of their 
probable cost if to be supplied in any part by the Government; 
(6) a statement of the requirements for tax liability, upkeep 
and maintenance of the property by either the contractor or the 
Government during the period of the contract; 
(7) a statement of rents and other housing costs currently 
being paid by the Government for any agencies to be housed in 
the building to be erected; and 
(8) a statement in writing by the Director of the Bureau of 
the Budget that the project is necessary and in conformity with 
the policy of the President. 
(h) With respect to any interest in real property acquired under 
Taxes, 
the provisions of this section, the same shall be subject to State and 
local taxes until title to the same shall pass to the Government of the 
United States. 
(i) Every lease-purchase agreement entered into pursuant to this pr^ipah"*^°" °* 
title shall provide for equal annual payments for the amortization 
Annual pay-
of principal with interest thereon and the Postmaster General shall *"*"**• 
not enter into any such contract unless the amount of the annual pay-
ment required by such contract plus the aggregate of the annual 
payments required by all other lease-purchase agreements entered into 
during the same fiscal year do not exceed the specific limitations on 
such payments which shall be provided in appropriation acts: Pro-
vided^ That prior to July 1, 1955, a limitation of not to exceed 
Limitation. 
$3,000,000 is hereby established for such purpose. 
SEC. 203. (a) The Postmaster General is authorized to— 
Authorization. 
(1) negotiate and enter into lease agreements with any person, 
copartnership, corporation, or other puulic or private entity, which 
do not bind the Government for periods exceeding thirty years 
for each such lease agreement, on such terms as the Postmaster 
General deems to be in the best interests of the United States, for 
the erection by such lessor of such buildings and improvements 
for postal purposes as the Postmaster General deems appropriate, 
on lands sold, leased, or otherwise disposed of by the Postmaster 
General to, or otherwise acquired by, such person, copartnership, 
corporation, or public or private entity; 
(2) for the purposes of paragraph (1) of this section, and 
without regard to the Federal Property and Administrative Serv-
ices Act of 1949 (Act of June 30, 1949, ch. 288, Eighty-first Con- 
" stat. 377. 
/-. 
, 
. ^ \ 
-, -, ' 
' 
7
0
.
/ 
40 Uot. 4 71 note. 
gress, first session), as amended— 
(A) acquire by purchase, condemnation, lease, donation, 
or otherwise, and on such terms as he shall deem appropriate 
to the best interests of the United States, real property and 
interests therein, for use for postal purposes; and 
524 
PUBLIC LAW 519-JULY 22, 1954 
[68 ST A T . 
40 u s e 352. 
U s e of r e n t a l 
funds* 
R e n t a l adjust-
ment* 
S a l e s receipts, 
etc. 
40USC341, 342, 
344-347, 352 note. 
Property title. 
Approval of At-
torney General. 
Ad 
ve rt is e me nt. 
(B) 
dispose of real property, and interests therein, 
acquired for use or used for postal purposes by sale, lease, or 
otherwise, on such terms as he shall deem appropriate to the 
best interests,of the United States: Provided^ That the Post-
master General shall not, for the purposes of this section, 
dispose of (1) any Government-owned property, or interests 
therein, acquired pursuant to section 101 of the Public Build-
ings Act of 1949 (63 Stat. 176) or (2) any Government-
owned property, or interests therein, which has been acquired 
pursuant to law, prior to the enactment of this Act, on which 
there has been constructed a building to be used for postal 
purposes and which is presently being used for such purposes, 
(b) Funds available to the Post Office Department for the payment 
of rents are authorized to be utilized by the Postmaster General for th^ 
purposes of this section. 
SEC. 204. The Postmaster General may, at the time he enters into 
any lease-purchase or lease agreement under authority of this title, 
include in such agreement a provision for adjustment of the rental 
paid to any lessor to compensate for any increase or decrease in taxes 
on the leased property. 
SEC. 205. (a) Amounts received by the Government from sales, 
leases, or other disposals of property acquired under authority of this 
title in the performance by the Postmaster General of the functions 
vested in him by this title shall be credited to the current applicable 
appropriation of the Post Office Department and shall be available 
for expenditure for the purposes of this title: Provided^ That any 
amount received by the Postmaster General from the sale of such 
property, under authority of this title, which exceeds the amount paid 
therefor from the appropriations for the Post Office Department, 
shall be covered into the Treasury as miscellaneous receipts. 
(b) Any amounts received by the Postmaster General from the 
sale, lease, or other disposal of real property acquired by the Govern-
ment under authority of the Public Buildings Act of May 25, 1926 
(44 Stat. 630), as amended, and the Public Buildings Act of 1949 (63 
Stat. 176), as amended, which may be transferred to the Postmaster 
General, shall be disposed of in accordance with the provisions of 
section 321 of the Act entitled "An Act making appropriations for 
the Legislative Branch of the Government for the fiscal year ending 
June 30,1933, and for other purposes" (47 Stat. 412; 40 U. S. C. 303b), 
section 5 of the Public Buildings Act of May 25, 1926, as amended 
(44 Stat. 633; 40 U. S. C. 345), or section 204 of the Federal Property 
and Administrative Services Act of 1949, as amended (63 Stat. 388; 
40 U. S. C. 485), whichever section may be applicable. 
SEC. 206. The Postmaster General shall take title, on behalf of the 
United States, to all real property purchased by him under authority 
of this title. 
SEC. 207. (a) Section 355 of the Revised Statutes, as amended (50 
U. S. C. 175), shall apply to the acquisition in fee simple of real 
property under this title, except that any lease-purchase agreement 
to acquire real property under this title may be entered into and placed 
in effect after request for but prior to receipt of an opinion of the 
Attorney General with respect to the validity of title to the real 
property described therein. 
(b) Section 3709 of the Eevised Statutes, as amended (41 U. S. C. 5), 
shall apply (1) to the acquisition of real property by lease-purchase 
agreements, under authority of section 202 of this title, and (2) to the 
lease agreements entered into under authority of paragraph (1) of 
section 203 (a) of this title. 
68 
S T A T . ] 
PUBLIC LAW 521-JULY 22, 1954 
525 
(c) Except as provided by subsections (a) and (b) of this section, 
sections 3733, 3734, and 3736 of the Revised Statutes, as amended (40 
U. S. C. 259; 41 U. S. C. 12,14); section 1 of the Act of March 3,1877 
(19 Stat. 370; 40 U. S. C. 34) ; and any other provision of law (except 
applicable labor standards provisions) relating to the acquisition or 
disposal of real property, construction of buildings, or leasing of space, 
shall not apply to any of the functions performed by the Postmaster 
General in effectuating the purposes of this title. 
SEC. 208. No agreement shall be entered into under this title later 
than a date ten years after the date of enactment of this title. 
SEC. 209. The Postmaster General shall include in his annual report 
an account of transactions conducted during the applicable year 
pursuant to the provisions of this title. 
SEC. 210. This title may be cited as the "Post Office Department 
Property Act of 1954". 
Approved July 22, 1954. 
N o n-applicabil-
ity of statutes. 
Time limitation. 
Annual report. 
Short title. 
Public Law 520 
CHAPTER 561 
AN ACT 
To amend section 24 of the Federal Reserve Act, as amended. 
July 22, 1954 
[S. 3480] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America im, Congress assembled^ That the fourth 
paragraph of section 24 of the Federal Reserve Act, as amended 
(U. S. C., 1952 edition, title 12, sec. 371), is amended by adding in 
clause (d) the words "or the Small Business Administration" after 
the words "the Housing and Home Finance Administrator"', and by 
adding the words "or of the Small Business Act of 1953," after the 
words "Housing Act of 1948, as amended,". 
Approved July 22, 1954. 
38 Stat. 
Stat. 312. 273; 65 
Public Law 521 
CHAPTER 562 
AN ACT 
To amend the Bankhead-Jones Farm Tenant Act, as amended, so as to provide 
for a variable interest rate, second mortgage security for loans under title I, 
and for other purposes. 
July 22, 1954 
[S. 1276] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That the Bankhead-
Jones Farm Tenant Act, as amended (7 U. S. C. 1001), is further 
amended as follows: 
(a) The words "less any prior lien indebtedness" shall be added at 
the end of and as a part of the parenthetical phrase of section 3 (a) 
(7 U. S. C. 1003 (a)), and the words "or second" shall be inserted after 
the word "first" where it appears in the first sentence of section 3 ( a ) . 
(b) The words "a rat© of interest not in excess of 5 per centum per 
annum as determined by the Secretary" shall be inserted in lieu of the 
words "the rate of 4 per centum per annum" in section 3 (b) (2) (7 
U. S. C. 1003 (b) (2)). 
(c) The words "shall not be in excess of 4 per centum per annum as 
determined by the Secretary" shall be inserted in lieu of the words 
"shall be 3 per centum per annum" in section 12 (c) (4) (7 U. S. C. 
1005b (c) (4)). 
(d) The words "pursuant to section 43" shall be deleted from sec-
tion 46 (7U. S. C. 1020). 
Bankhead*Jones 
Farm Tenant Act, 
amendments. 
50 Stat. 522 
7 u s e 1000. 
Loan terms. 
Interest rates. 
Direct loans. 
62 Stat. 534. 
M o r t g a g e 
in« 
surance. 
62 Stat. 534. 
7 u s e 1017.