Executive Order  No. 78: (1st Series) Implementing federal loan guaranty program for reconversion of businesses to peacetime production

WHEREAS, the cessation of hostilities requires our industries to convert with all possible speed to a peace-time basis of operations, in order that unemployment may be minimized and that necessary consumer goods be again made available; and

WHEREAS, in the emergency occasioned thereby it becomes necessary that our banks extend to our industries every financial assistance reasonably necessary for the expedition of such reconversion; and

WHEREAS, the Government of the United States is continuing available for conversion purposes those facilities of its agencies and instrumentalities that assisted, through guaranties of and participations in loans by banks to industry, the financing of the war program; and

WHEREAS, a statute which excepted from the limits upon the amounts that might lawfully be loaned by a bank to one borrower that portion of a loan which was guaranteed or underwritten by the United States and certain of its agencies is now inoperative:

NOW, THEREFORE, I, Maurice J. Tobin, Governor of the Commonwealth of Massachusetts, acting under the authority of Acts of 1942, chapter 13, section 2 (14), and all other authority vested in me, do hereby issue this order as a measure necessary and expedient for meeting the emergency of the existing need for industrial reconversions.

The limitations upon the liability of one borrower to a corporation subject to chapter 172 of the General Laws, prescribed by section forty or section forty A of said chapter, shall not apply to any loan or loans made prior to July first, 1946, to the extent that they are secured or covered by guaranties, or by commitments or agreements to take over or to purchase the same, made by the United States, the war department, the navy department, or the maritime commission thereof, or by any federal reserve bank or the Reconstruction Finance Corporation; provided, that such guaranties, agreements or commitments are subject to no condition beyond the control of the corporation making the loan, and must be performed by payment of cash or its equivalent within sixty days after demand; and provided further that for the performance of such guaranties, commitments or agreements the faith of the United States or of such federal reserve bank or of said Reconstruction Finance Corporation is pledged.

Given at the Executive Chamber in Boston, this third day of October, in the year of our Lord, one thousand and nine hundred and forty-five, and of the Independence of the United States of America, the one hundred and seventieth.

By His Excellency the Governor,
MAURICE J. TOBIN

FREDERIC W. COOK
Secretary of the Commonwealth