ther instruction of farmers regarding the methods and principles of cooperative credit and organization. Said board [now administration] is hereby authorized to use a reasonable portion of the organization fund provided in section thirty-three of this Act for the objects specified in this paragraph, and is instructed to lay before the Congress at each session its recommendations for further appropriations to carry out said objects. (July 17, 1916, sec. 3, 39 Stat. 361; 12 U. S. C., sec. 664.)

638-25. Rules and regulations.-The Federal Farm Loan Board [now Farm Credit Administration]* is authorized to make such rules and regulations, not inconsistent with law, as it deems necessary or requisite for the efficient execution of the provisions of the Federal Farm Loan Act, and/or any Act or Acts amendatory thereof or supplementary thereto. (Jan. 23, 1932, sec. 6, 47 Stat. 14; 12 U. S. C., sec. 665.) 638-26. Federal land bank districts.—

This section was repealed by Act of Aug. 19, 1937, sec. 7 (a), 50 Stat. 707. (July 17, 1916, sec. 4, 39 Stat. 362; Mar. 27, 1933, Executive Order 6084; 12 U. S. C., sec. 671, 671 note.)

638-27. Organization of Federal Land Banks; establishments; titles; branches; Puerto Rico and Alaska; Hawaii; loans by branches.-The Federal Farm Loan Board [now Farm Credit Administration]* shall establish in each farm credit district a Federal land bank, with its principal office located in such city within the district as said board [now administration]* shall designate. Each Federal land bank shall include in its title the name of the city in which it is located. Subject to the approval of the Federal Farm Loan Board [now Farm Credit Administration]*, any Federal land bank may establish branches within the farm credit district. Subject to the approval of the Federal Farm Loan Board [now Farm Credit Administration]* and under such conditions as it may prescribe, the provisions of this Act are extended to the island of Puerto Rico and the Territory of Alaska; and the Federal Farm Loan Board [now Farm Credit Administration]* shall designate a Federal land bank which is hereby authorized to establish a branch bank in Puerto Rico and a Federal land bank which is hereby authorized to establish a branch bank in the Territory of Alaska. The provisions of the Federal Farm Loan Act, and any Act amendatory thereof or supplementary thereto are extended to the Territory of Hawaii. The Federal Farm Loan Board [now Farm Credit Administration]* shall include the Territory in a farm credit district, and such Federal land bank as the board [now administration]* may designate is authorized to establish branch banks in the Territory. Loans made by each such branch bank shall not exceed the sum of $25,000 to any one borrower and shall be subject to the restrictions and provisions of this Act (U. S. C., Title 12, ch. 7), except that each such branch bank may loan direct to borrowers, and, subject to such regulations as the Federal Farm Loan Board [now Farm Credit Administration]* may prescribe, the rate charged borrowers may be 12 per centum in excess of the rate borne by the last preceding issue of farm-loan bonds of the Federal land bank with which such branch bank is connected: Provided, That no loan shall be made in Puerto Rico or Alaska by such branch bank for a longer term than twenty years.

*See Ex. Or. 6084, p. 254, this volume.

Each borrower through such branch bank shall subscribe and pay for stock in the Federal land bank with which it is connected in the sum of $5 for each $100 or fraction thereof borrowed; such stock shall be held by such Federal land bank as collateral security for the loan of the borrower; shall participate in all dividends; and upon full payment of the loan shall be canceled at par and proceeds paid to borrower, or the borrower may apply the same to the final payments on his loan. (July 17, 1916, sec. 4, 39 Stat. 362; Feb. 27, 1921, 41 Stat. 1148; Mar. 4, 1923, sec. 303, 42 Stat. 1474; Mar. 10, 1924, sec. 2, 43 Stat. 17; Mar. 4, 1929, 45 Stat. 1558; May 17, 1932, 47 Stat. 158; Aug. 19, 1937, sec. 5 (a), 50 Stat. 704; 12 U. S. C., sec. 672.)

638-28. Temporary management.-Each Federal land bank shall be temporarily managed by five directors appointed by the Federal Farm Loan Board [now Farm Credit Administration].* Said directors shall be citizens of the United States and residents of the district. They shall each give a surety bond, the premium on which shall be paid from the funds of the bank. They shall receive such compensation as the Federal Farm Loan Board [now Farm Credit Administration]* shall fix. They shall choose from their number, by majority vote, a president, a vice president, a secretary and a treasurer. They are further authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as they may deem necessary, and to fix their compensation, subject to the approval of the Federal Farm Loan Board [now Farm Credit Administration].* (July 17, 1916, sec. 4, 39 Stat. 362; 12 U. S. C., sec. 673.) 638-29. Organization certificates; contents.-Said temporary directors shall, under their hands, forthwith make an organization certificate, which shall specifically state:

First. The name assumed by such bank.

Second. The district within which its operations are to be carried on, and the particular city in which its principal office is to be located. Third. The amount of capital stock and the number of shares into which the same is to be divided: Provided, That every Federal land bank organized under this Act shall by its articles of association permit an increase of its capital stock from time to time for the purpose of providing for the issue of shares to national farm loan associations and stockholders who may secure loans through agents of Federal land banks in accordance with the provisions of this Act.

Fourth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Act. The organization certificate shall be acknowledged before a judge or clerk of some court of record or notary public, and shall be, together with the acknowledgment thereof, authenticated by the seal of such court or notary, transmitted to the Land Bank Commissioner, who shall record and carefully preserve the same in his office, where it shall be at all times open to public inspection. (July 17, 1916, sec. 4, 39 Stat. 362; June 16, 1933, sec. 80 (a), 48 Stat. 273; 12 U. S. C., sec. 674.)

638-30. Changes in organization certificate.-The Federal Farm Loan Board [now Farm Credit Administration]* is authorized to direct such changes in or additions to any such organization certificate, not inconsistent with this Act, as it may deem necessary or expedient. (July 17, 1916, sec. 4, 39 Stat. 363; 12 Ú. S. C., sec. 675.)

*See Ex. Or. 6084, p. 254, this volume.

240136-41--18

638-31. Time of commencement of corporate existence; powers enumer ated.-Upon duly making and filing such organization certificate the bank shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power— First. To adopt and use a corporate seal.

Second. To have succession until it is dissolved by Act of Congress or under the provisions of this Act.

Third. To make contracts.

Fourth. To sue and be sued, complain, interplead, and defend, in any court of law or equity, as fully as natural persons.

Fifth. To elect or appoint directors, and by its board of directors to elect a president and a vice president, appoint a secretary and a treasurer and other officers and employees, define their duties, require bonds of them, and fix the penalty thereof; by action of its board of directors dismiss such officers and employees, or any of them, at pleasure and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, subject to the supervision and regulation of the Federal Farm Loan Board [now Farm Credit Administration],* by-laws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected, its officers elected or appointed, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

Seventh. To exercise, by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business herein described. (July 17, 1916, sec. 4, 39 Stat. 363; 12 U. S. C., sec. 676.)

638-32. Time of termination of temporary management.-After the subscriptions to stock in any Federal land bank by national farm loan associations, hereinafter authorized, shall have reached the sum of $100,000, the officers and directors of said land bank shall be chosen as herein provided and shall, upon becoming duly qualified, take over the management of said land bank from the temporary officers selected under this section. (July 17, 1916, sec. 4, 39 Stat. 363; 12 U. S. C., sec. 677.)

638-33. Directors; compensation of officers and employees.-The members of the farm credit board of each farm credit district provided for in the Farm Credit Act of 1937 shall be ex officio the directors of the Federal land bank located in that district. Any compensation that may be provided by the board of directors of any Federal land bank for officers or employees shall be subject to the approval of the Farm Credit Administration. (July 17, 1916, sec. 4, 39 Stat. 363; Aug. 19, 1937, sec. 7 (b), 50 Stat. 707; 12 U. S. C., sec. 677a.)

638-34. Capital stock of Federal land banks; minimum amount of original capital; regulation of subscriptions.-That every Federal land bank shall have, before beginning business, a subscribed capital of not less than $750,000. The Federal Farm Loan Board [now Farm Credit Administration] is authorized to prescribe the times and conditions of the payment of subscriptions to capital stock, to reject any subscription in its discretion, and to require subscribers to furnish adequate secu

*See Ex. Or. 6084, p. 254, this volume.

(July 17, 1916, sec. 5, 39 Stat. 364;

rity for the payment thereof. 12 U. S. C., sec. 691.)

638-35. Shares; value; who may subscribe to original stock. The capital stock of each Federal land bank shall be divided into shares of $5 each, and may be subscribed for and held by any individual, firm, or corporation, or by the Government of any State or of the United States. (July 17, 1916, sec. 5, 39 Stat. 364; 12 U. S. C., sec. 692.)

638-36. Transfer of stock held by national farm loan associations.Stock held by national farm loan associations shall not be transferred or hypothecated, and the certificates therefor shall so state. (July 17, 1916, sec. 5, 39 Stat. 364; 12 U. S. C., sec. 693.)

638-37. Dividends; voting stock.-Stock owned by the Government of the United States in Federal land banks shall receive no dividends, but all other stock shall share in dividend distributions without preference. Each national farm loan association and the Government of the United States shall be entitled to one vote for each share of stock held by it in deciding all questions at meetings of shareholders, and no other shareholder shall be permitted to vote. Stock owned by the United States shall be voted by the Land Bank Commissioner, as directed by the Federal Farm Loan Board [now Farm Credit Ádministration]." (July 17, 1916, sec. 5, 39 Stat. 364; June 16, 1933, sec. 80 (a), 48 Stat. 273; 12 U. S. C., sec. 694.)

638-38. Subscriptions to original stock; subscriptions by United States for unsubscribed balance of original capital stock.-It shall be the duty of the Federal Farm Loan Board [now Farm Credit Administration], as soon as practicable after the passage of this act, to open books of subscription for the capital stock of a Federal land bank in each farm credit district. If within thirty days after the opening of said books any part of the minimum capitalization of $750,000 herein prescribed for Federal land banks shall remain unsubscribed, it shall be the duty of the Secretary of the Treasury to subscribe the balance thereof on behalf of the United States, said subscription to be subject to call in whole or in part by the board of directors of said land bank upon thirty days' notice with the approval of the Federal Farm Loan Board [now Farm Credit Administration]*; and the Secretary of the Treasury is hereby authorized and directed to take out shares corresponding to the unsubscribed balance as called, and to pay for the same out of any moneys in the Treasury not otherwise appropriated. Thereafter no stock shall be issued except as hereinafter provided. (July 17, 1916, sec. 5, 39 Stat. 364; Aug. 19, 1937, sec. 5 (a), 50 Stat. 704; 12 U. S. C., sec. 695.)

638-39. Retirement of original stock.-After the subscriptions to capital stock by national farm loan associations shall amount to $750,000 in any Federal land bank, said bank shall apply semiannually to the payment and retirement of the shares of stock which were issued to represent the subscriptions to the original capital twentyfive per centum of all sums thereafter subscribed by national farm loan associations, by borrowers through agencies, and by borrowers through branch banks to capital stock until all such original capital stock is retired at par. (July 17, 1916, sec. 5, 39 Stat. 364; Jan. 23, 1932, sec. 1, 47 Stat. 12; 12 U. S. C., sec. 696.)

*See Ex. Or. 6084, p. 254, this volume.

638-40. Proportion held in quick assets. At least twenty-five per centum of that part of the capital of any Federal land bank for which stock is outstanding in the name of national farm loan associations shall be held in quick assets, and may consist of cash in the vaults of said land bank, or in deposits in member banks of the Federal reserve system, or in readily marketable securities which are approved under rules and regulations of the Federal Farm Loan Board [now Farm Credit Administration]*: Provided, That not less than five per centum of such capital shall be invested in United States Government bonds. (July 17, 1916, sec. 5, 39 Stat. 364; 12 U. S. C., sec. 697.)

638-41. Subscriptions by United States; terms; amount; retirement.It shall be the duty of the Secretary of the Treasury on behalf of the United States, upon the request of the board of directors of any Federal land bank made with the approval of the Federal Farm Loan Board [now Farm Credit Administration],* to subscribe from time to time for capital stock of such bank in an amount or amounts specified in such approval or approvals, such subscriptions to be subject to call in whole or in part by the board of directors of said bank upon thirty days' notice with the approval of the Federal Farm Loan Board [now Farm Credit Administration].* The Secretary of the Treasury is hereby authorized and directed to take out and pay for shares having an aggregate par value equal to the amounts so called; and to enable the Secretary of the Treasury to pay for stock issued hereunder there is hereby authorized to be appropriated the sum of $125,000,000 such stock to be nonvoting. Shares of stock issued pursuant to this paragraph shall be paid off at par and retired in the same manner as the original capital stock of said bank after said. original stock outstanding, if any, has been paid off and retired: Provided, however, That stock issued pursuant to this paragraph may at any time, in the discretion of the directors and with the approval of the Federal Farm Loan Board [now Farm Credit Administration], be paid off at par and retired in whole or in part; and that said board [now administration]* may at any time require such stock to be paid off at par and retired in whole or in part if in the opinion of the board [now administration]* the bank has resources available therefor. The proceeds of all repayments on account of stock issued pursuant to this paragraph shall be held in the Treasury of the United States and shall be available for the purpose of paying for other stock thereafter issued pursuant to this paragraph. (July 17, 1916, sec. 5, 39 Stat. 364; Jan. 23, 1932, sec. 2, 47 Stat. 12; 12 U. S. C., sec. 698.)

638-42. Federal and joint stock land banks as Government depositaries and financial agents; surety bonds; investment of funds.--That all Federal land banks and joint stock land banks organized under this Act, when designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be

*Sec Ex. Or. 6084, p. 254, this volume.