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DISTRICTS UNEINT EDS TH AED TE R DEPAR FT GT LU OL LOGTO ICA LA URZERC Y SERVED BY SEATFLE SROKANE P. PORTLAND SALT LAKE CITY SAN FRANCISCO OMAH DENVER KANSA ( LOS ANGELES OKLAHOMA D'AL N SAN ANTONIO BY RFC LOAN AGENCIES wh en BOSTON MINNEAPOLTS ** DETROIT CLEVELAND CHICAGO KASS CITY St. Louis NEW YORK PHILADELPHIA LOUISVILLE RICHMOND CHARLO NASHVILLE AHOMACITY OLUMBIA LITTLE ROCK ATLANTA BIRMINGHAM N JAGKSONVILLE HOUSTON NEW ORLEANS G U L F 0 F M E X I C O a going business or for purchasing an interest in such business. (4 ) Except in the cases of loans for the construction of military and d e fense housing and housing in critical areas, no loans shall be m ad e for acquiring, constructing or improving real property which is to be held for investment. (5 ) N o loan shall be mad e for speculative investments or purchases. (6) N o loan shall be m ad e to an eleemosynary institution. (7) N o loan shall be m a d e to any newspaper, magazine , radio b ro ad casting companies or other similar organizations. (8) N o loan shall be ma d e for providing capital to an enterprise e n gaged in the business of lending. (9) N o loan shall be m ad e for operating an establishment whose income is derived in whole or in part from gambling or from rental of the premises for gambling or from rental of the premises for gambling purposes. (10) N o loan shall be m a d e for operating an establishment whose income is derived predominately from the sale of alcoholic beverages . P A R T II. L O A N P O L I C Y I N P R E S E N T E M E R G E N C Y In addition to the loan policies prescribed in Part I hereof, the following principles shall be effective during the present period of defense mobilization and rearmament : (1) All loans by the R F C must assist, expedite, increase or maintain the production of goods or services necessary to meet either military r e quirements or essential civilian requirements. (a ) T he receipt of a “certificate of necessity ” for accelerated tax amortization or the receipt of a defense contract (either a prime contract or subcontract) or a purchase order by the Borrower or the existence of a n a tional shortage of a commodity or service or proof of a regional (normal market area ) shortage so great that m i n i m u m needs cannot be met at reasonable prices m a y be considered as evidence that the loan is for a defense purpose or an essential civilian requirement. (b ) Loans for the maintenance of existing production ,processing, and orderly distribution of goods and services which are customarily recognized as necessities as distinguished from luxuries, m a y be considered loans for essential civilian requirements. (c) Loans for conversion to essential production m a y be considered in the interest of national defense. (2) In each instance it should be determined as far as possible whether granting a loan will or will not be inflationary. For a loan to be considered non -inflationary, the finding should indicate that the loan will produce either an increased supply of essential goods or services or the prevention of a decrease. e le on LEO NIELSON Secretary 7
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