Frazier–Lemke Farm Bankruptcy Act
- Farm Mortgage Moratorium Act
- Federal Farm Bankruptcy Act of 1934
- Frazier-Lemke Act
- Frazier-Lemke Farm-Mortgage Act
- Introduced in the House as S. 3580 on 1 June 1934
- Passed the Senate on 13 June 1934 (passed)
- Passed the House on 15 June 1934 (passed, in lieu of H.R. 9865) with amendment
- Reported by the joint conference committee on 16 June 1934; agreed to by the House on 18 June 1934 (agreed)
- Senate agreed to House amendment on 18 June 1934 (agreed)
- Signed into law by President Franklin D. Roosevelt on 28 June 1934
The Frazier–Lemke Farm Bankruptcy Act was an Act of Congress passed in the United States in 1934 that restricted the ability of banks to repossess farms.[1]
The U.S. 73rd Congressional Senate bill S. 3580 was signed into law by the 32nd President of the United States Franklin Roosevelt.[2]
Background
Between 1933 and 1936, the US Congress in conjunction with US President Franklin D. Roosevelt, passed several economic programs with the goals of giving work (relief) to the unemployed, reforming business and financial practices, and causing economic recovery during the Great Depression.
Roosevelt was interested in farm issues and believed that general prosperity would not return until farming was prosperous. Many different programs were directed at farmers. The first 100 days of his presidency produced a federal program to raise farm incomes by raising the prices farmers received, which was achieved by reducing total farm output. The Agricultural Adjustment Act created the Agricultural Adjustment Administration (AAA) in May 1933 and reflected the demands of leaders of major farm organizations, especially the Farm Bureau and debates among Roosevelt's farm advisers such as Secretary of Agriculture Henry A. Wallace, Rexford Tugwell, Lewis C. Gray and George Peek.
Content
The Frazier–Lemke Farm Bankruptcy Act restricted the ability of banks to repossess farms,[1] amended the previously voluntary Section 75, and added subsection (s),[3] which delayed foreclosure of a bankrupt farmer's property for five years during which the farmer made rental payments. The farmer could then buy back the property at its currently-appraised value over six years at 1% interest or remain in possession as a paying tenant.[4]
The S. 3580 bill was named for North Dakota Senator Lynn Frazier and North Dakota Representative William Lemke.[5]
Amendments to U.S. Bankruptcy Law
The 73rd Congress passed legislation in June 1934 to amend the Bankruptcy Act of 1898.[2]
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Court case
The law was challenged by secured creditors, and by May 1935, the US Supreme Court reviewed the law in Louisville Joint Stock Land Bank v. Radford.[4][8] The Act was ruled unconstitutional because it deprived secured creditors of their property rights, in violation of the Fifth Amendment.[9]
Modification and renewal
Congress responded by enacting the revised Frazier–Lemke Act and naming it the "Farm Mortgage Moratorium Act" in 1935.[4][9] The terms were modified to limit the moratorium to a three-year period.[5] The revision also gave secured creditors the opportunity to force a public sale, but the farmer could redeem the sale by paying the same amount.
The law was challenged, but the Supreme Court upheld the law in Wright v. Vinton Branch of Mountain Trust Bank of Roanoke.[3][5][9]
After expiring in 1938, the act was renewed four times until 1949, when it expired.[1][3]
See also
- 1933 Banking Act
- Chapter 12 of the Bankruptcy Code
- Dust Bowl
- Federal Declaration of Taking Act of 1931
- Great Depression
References
- ^ a b c "Surviving the Dust Bowl". PBS. Retrieved 19 December 2008.
- ^ a b Roosevelt, Franklin D. (30 June 1934). "Statement by the President Approving Amendments to Bankruptcy Law – June 30, 1934". Internet Archive. Washington, D.C.: National Archives and Records Service. pp. 331–333.
- ^ a b c Collier on Bankruptcy, 8-1200, P 1 b.
- ^ a b c (no login required to see necessary information)"Frazier–Lemke Farm Bankruptcy Act: A Dictionary of American History". Blackwell Reference Online. Archived from the original on 3 October 2011. Retrieved 19 December 2008.
- ^ a b c "Frazier–Lemke Farm Bankruptcy Act". US History Encyclopedia. Jeremy Bonner. Published on About.com.
- ^ "H.R. 5884: Provisions for the Relief of Debtors, Additional Jurisdiction, Corporate Reorganizations" (PDF). William McChesney Martin, Jr., Papers. Federal Reserve Archival System for Economic Research (FRASER). 7 June 1934. Retrieved 28 July 2013.
- ^ "S. 3580: Agricultural Compositions and Extensions" (PDF). William McChesney Martin, Jr., Papers. Federal Reserve Archival System for Economic Research (FRASER). 28 June 1934. Retrieved 28 July 2013.
- ^ 295 U.S. 555 (1935)
- ^ a b c "Chapter 12: Bankruptcy Relief for Family Farmers". National Bankruptcy Review Commission. Retrieved 19 December 2008.
External links
- Public Law 73-486, 73d Congress, S. 3580, An Act to amend an Act entitled "An Act to establish a uniform system of bankruptcy throughout the United States", approved July 1, 1898, and Acts amendatory thereof and supplementary thereto. Amending section 75, entitled "Agricultural Compositions and Extensions" [Frazier–Lemke Farm Bankruptcy Act of 1934]
- v
- t
- e
- Federal Farm Loan Act (1916)
- Agricultural Adjustment Act (1933)
- Agricultural Adjustment Act Amendment of 1935
- Soil Conservation and Domestic Allotment Act of 1936
- Agricultural Adjustment Act of 1938
- Agricultural Act of 1948
- Agricultural Act of 1949
- Agricultural Act of 1954
- Agricultural Act of 1956
- Agricultural Act of 1961
- Food and Agriculture Act of 1965
- Agricultural Act of 1970
- Agriculture and Consumer Protection Act of 1973
- Food and Agriculture Act of 1977
- Agriculture and Food Act of 1981
- Food Security Act of 1985
- Food, Agriculture, Conservation, and Trade Act of 1990
- Federal Agriculture Improvement and Reform Act of 1996
- Farm Security and Rural Investment Act of 2002
- Food, Conservation, and Energy Act of 2008
- Agricultural Act of 2014
- Agriculture Improvement Act of 2018
agricultural
legislation
- Hatch Act of 1887
- Agricultural Experiment Stations Act of 1887
- Agriculture Appropriation Act of 1905
- Agricultural Appropriations Act of 1922
- Cotton Futures Act (1914)
- Cotton Futures Act (1916)
- Grain Standards Act (1916)
- Wheat Price Guarantee Act (1919)
- Future Trading Act (1921)
- Grain Futures Act (1922)
- Capper–Volstead Act (1922)
- Agricultural Marketing Act (1929)
- Farm Credit Act of 1933
- Frazier–Lemke Farm Bankruptcy Act (1934)
- Bankhead–Jones Act of 1935
- Commodity Exchange Act (1936)
- Bankhead-Jones Farm Tenant Act (1937)
- Agricultural Marketing Agreement Act of 1937
- Federal Seed Act of 1939
- Agricultural Trade Development and Assistance Act of 1954
- National Wool Act of 1954
- Federal Plant Pest Act of 1957
- Agricultural Fair Practices Act of 1967
- Farm Credit Act of 1971
- Consolidated Farm and Rural Development Act of 1972
- Commodity Futures Trading Commission Act of 1974
- Agricultural Trade Act of 1978
- Agricultural Adjustment Act of 1980
- National Aquaculture Act of 1980
- Caribbean Basin Economic Recovery Act of 1983
- Extra-Long Staple Cotton Act of 1983
- Agricultural Credit Act of 1987
- Hunger Prevention Act of 1988
- Alien Species Prevention and Enforcement Act of 1992
- National Wool Act Amendments of 1993
- Federal Crop Insurance Reform and Department of Agriculture Reorganization Act of 1994
- Agricultural Research, Extension, and Education Reform Act of 1998
- Agriculture Risk Protection Act of 2000