October 3, 1945

EXECUTIVE ORDER NO. 78

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

    WHEREAS, in the emergency occasioned thereby it becomes neces-
sary that our banks extend to our industries every financial assist-
ance 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 corpo-
ration 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 Recon-
struction Finance Corporation; provided, that such guaranties, agree-
ments 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 pro-
vided further that for the performance of such guaranties, commit-
ments 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