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Show 224 Likewise, corporations were later permitted to purchase land with appurtenant water rights where an application had already been made by a properly qualified person.435 But when Con- gress in 1926 made contracts with irrigation districts the medium for repayment, the enabling legislation in effect de- fined excess land as "irrigable land held in private ownership by any one owner" in excess of 160 irrigable acres.438 This provision has been construed to permit corporate holdings within that limit.437 Difficulties in obtaining credit were encountered prior to 1912 by private landowners and entrymen.438 A purchaser of private land for which a water-right application had been made was required to execute a supplemental water-right ap- plication, and his application would not be accepted unless he qualified as a nonexcess landowner.439 Any loan secured by land, the productivity of which depended upon project water, was accordingly hazardous since, on foreclosure, the lender might become an excess landowner and therefore ineligible to receive water.440 The situation was even more difficult for an entryman. In addition to the foregoing difficulty, the land itself could not be offered as security since the 1902 Act per- mitted patent to issue only after payment of the construction charges against the land.441 Partial remedies for these conditions were provided by a 1912 statute.442 Among other things, it permitted re- tention for two years of excess land acquired in good faith by descent, by will, or by foreclosure of any lien.448 This provided 485 Unpublished Departmental Decision, Re Santaquin Lime & Quarry Co., Department of the Interior, December 6,1916. 488 Act of May 25, 1926, § 46, 44 Stat. 636, 649, 43 U. S. 0. 423e. 487 Landownebship Survey on Federal Reclamation Pbojects, Depart- ment of the Interior, p. 38 (1946). 488 Ibid. 489 Departmental Regulation No. 50, May 31,1910,38 L. D. 638. 440 Departmental Regulation No. 35, 40 L. D. 660 (1912). 441 Act of June 17,1902, § 5, 32 Stat. 388, 389. 443 Act of August 9, 1912, 37 Stat. 265, as amended, 43 U. S. C. 541-546. 448 § 3, 37 Stat. 266, 43 U. S. C. 544. Irrigation districts and water-users' associations have been held not to come within the limitation imposed by that part of Section 3 requiring disposition of excess land within two years after acquisition. They may receive project water for the excess land |