Credit Administration, any Federal intermediate credit bank, or the Federal Farm Mortgage Corporation, its divisions, officers, and employees, and by the corporations referred to in subsection (a) of this section, which, for the purposes hereof, shall be held to include advances, loans, discounts, and purchase and repurchase agreements; extensions and renewals thereof; and acceptances, releases, and substitutions of security therefor.

Conspiracy. (f) Whoever conspires with another to accomplish any of the acts made unlawful by the preceding provisions of this section shall, on conviction thereof, be subject to the same fine or imprisonment, or both, as is applicable in the case of conviction for doing such unlawful act. (June 16, 1933, sec. 64 (a) to (f), 48 Stat. 267; Jan. 31, 1934, sec. 13, 48 Stat. 347; 12 U. S. C., sec. 1138d (a) to (f).)

638-278. Receivership; voluntary liquidation.-Upon default of any obligation of any Production Credit Corporation, Production Credit Association, or regional Bank for Cooperatives, such bank, association, or corporation may be declared insolvent and placed in the hands of a receiver by the governor and proceedings shall thereupon be had in accordance with the provisions of law relating to the insolvency of national farm-loan associations. Any such bank, association, or corporation may, with the consent of the governor, liquidate voluntarily, but only in accordance with such rules and regulations as the governor may prescribe. (June 16, 1933, sec. 65, 48 Stat. 269; 12 U. S. C., sec. 1138e.)

638-279. Limitation on compensation payable to director, officer, or employee. No director, officer, or employee of the Central Bank for Cooperatives, or of any Production Credit Corporation, Production Credit Association, or Bank for Cooperatives shall be paid compensation at a rate in excess of $10,000 per annum. No officer or employee of the Farm Credit Administration engaged in carrying out the provisions of titles I to VI, inclusive, of this Act shall be paid compensation at a rate in excess of $10,000 per annum. (June 16, 1933, sec. 66, 48 Stat. 269; 12 U. S. C., sec. 1138f.)

638-280. Agricultural Marketing Act; declaration of policy; effective merchandising of agricultural commodities; speculation; cooperative marketing; surpluses; administration of.-(a) That it is hereby declared to be the policy of Congress to promote the effective merchandising of agricultural commodities in interstate and foreign commerce, so that the industry of agriculture will be placed on a basis of economic equality with other industries, and to that end to protect, control, and stabilize the currents of interstate and foreign commerce in the marketing of agricultural commodities and their food products— (1) by minimizing speculation.

(2) by preventing inefficient and wasteful methods of distribution. (3) by encouraging the organization of producers into effective associations or corporations under their own control for greater unity of effort in marketing and by promoting the establishment and financing of a farm marketing system of producer-owned and producer-controlled cooperative associations and other agencies.

(4) By aiding in preventing and controlling surpluses in any agricultural commodity, through orderly production and distribution, so as to maintain advantageous domestic markets and prevent such surpluses from causing undue and excessive fluctuations or depressions in prices for the commodity.

(b) There shall be considered as a surplus for the purposes of this Act any seasonal or year's total surplus, produced in the United States and either local or national in extent, that is in excess of the requirements for the orderly distribution of the agricultural commodity or is in excess of the domestic requirements for such commodity.

(c) The Federal Farm Board [now Farm Credit Administration]* shall execute the powers vested in it by this Act only in such manner as will, in the judgment of the board [now administration]*, aid to the fullest practicable extent in carrying out the policy above declared. (June 15, 1929, sec. 1, 46 Stat. 11; U. S. C., sec. 1141.)

638-281. Federal Farm Board.-(June 15, 1929, sec. 2, 46 Stat. 11; 12 U. S. C., sec. 1141a.) [This section rendered obsolete by Executive Order 6084, set out on page 254 of this volume, except insofar as it affects the qualifications, appointment, business engagements, salary, and expenses of the Governor of the Farm Credit Administration, formerly known as chairman of the Federal Farm Board.]

638-282. General powers of Farm Credit Administration.-The board [now administration]*

(1) shall maintain its principal office in the District of Columbia, and such other offices in the United States as in its judgment are necessary.

(2) shall have an official seal which shall be judicially noticed.

(3) shall make an annual report to Congress upon the administration of this Act and any other matter relating to the better effectuation of the policy declared in section 1, including recommendations for legislation.

(4) may make such regulations as are necessary to execute the functions vested in it by this Act.

(5) may appoint and fix the salaries of a secretary and such experts, and, in accordance with the Classification Act of 1923, as amended, and subject to the provisions of the civil service laws, such other officers and employees, as are necessary to execute such functions.

(6) may make such expenditures (including expenditures for rent and personal services at the seat of government and elsewhere, for law books, periodicals, and books of reference, and for printing and binding) as are necessary to execute such functions. Expenditures by the board [now administration]* shall be allowed and paid upon the presentation of itemized vouchers therefor approved by the chairman [now governor]* of the board [now administration]*.

(7) may sell at public or private sale to the highest responsible bidder, upon such terms and after such public advertisement as the Farm Credit Administration may deem in the public interest, any property, real or personal, or any interest therein, acquired by the United States on account of or as a result of any loans made from the revolving fund authorized by section 6 of this Act, as amended; may lease any such property, pending its sale, on such terms and for such period, not in excess of five years, as the Farm Credit Administration may deem in the public interest; and may incur and pay, from the said revolving fund, obligations and expenses for the operation, upkeep, maintenance, repair, disposition, insurance, and protection of any such property: Provided, That section 3709 of the Revised Statutes shall not be construed to apply to any purchase or service on ac*See Ex. Or. 6084, p. 254, this volume.

count of such property. (June 15, 1929, sec. 4, 46 Stat. 13; Aug. 19, 1937, sec. 37, 50 Stat. 717; 12 U. S. C., sec. 1141b.)

638-283. Special powers of administration.-The board [now administration]* is authorized and directed

(1) to promote education in the principles and practices of cooperative marketing of agricultural commodities and food products thereof. (2) to encourage the organization, improvement in methods, and development of effective cooperative associations.

(3) to keep advised from any available sources and make reports as to crop prices, experiences, prospects, supply, and demand, at home and abroad. (June 15, 1929, sec. 5, 46 Stat. 13; June 16, 1933, sec. 50 (a), 48 Stat. 265; 12 U. S. C., sec. 1141c.)

638-284. Revolving fund.-There is hereby authorized to be appropriated the sum of $500,000,000 which shall be made available by the Congress as soon as practicable after the approval of this Act and shall constitute a revolving fund to be administered by the board [now administration]* as provided in this Act. Any and all funds derived from the sale, lease, operation, or other disposition of any property, real or personal, acquired by the United States on account of or as a result of any loan made pursuant to the provisions of this Act, shall be covered into and become a part of said revolving fund. (June 15, 1929, sec. 6, 46 Stat. 14; June 16, 1933, secs. 33, 34, 40, 41, 48 Stat. 262, 264; Aug. 19, 1937, sec. 38, 50 Stat. 718; 12 U. S. C., sec. 1141d.)

638-285. Interest rates on loans made from revolving fund.-That interest rates in excess of the rates set forth in notes or other obligations taken by the Federal Farm Board or the Farm Credit Administration for loans made from the revolving fund authorized by section 6 of the Agricultural Marketing Act, approved June 15, 1929 (46 Stat. 11), shall not be charged or collected on any of said loans, whether such loans have been heretofore or are hereafter paid in whole or in part, except that in those cases where a borrower by specific contract has agreed to pay a higher rate of interest, the contract rate shall be charged for the period agreed upon; and the amount of any interest collected in excess of the rates thus set forth or contracted for shall be refunded out of said fund or credited on the borrower's indebtedness. (June 22, 1939, 53 Stat. 853; 12 U. S. C., 1141d-1. This section is not a part of the Agricultural Marketing Act.)

638-286. Loans to cooperative associations. (a) Upon application by any cooperative association the board [now administration]* is authorized to make loans to it from the revolving fund to assist in(1) the effective merchandising of agricultural commodities and food products thereof and the financing of its operations;

(2) the construction or acquisition by purchase or lease, or refinancing the cost of such construction or acquisition, of physical facilities.

(b) No loan shall be made to any cooperative association unless, in the judgment of the board [now administration]*, the loan is in furtherance of the policy declared in section 1 and the cooperative association applying for the loan has an organization and

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

management, and business policies, of such character as to insure the reasonable safety of the loan and the furtherance of such policy. (c) Loans for the construction or acquisition by purchase or lease of physical facilities, or for refinancing the cost of such construction or acquisition, shall be subject to the following conditions: (1) No loan shall be made in an amount in excess of 60 per centum of the appraised value of the security therefor.

(2) No loan for the purchase or lease of such facilities shall be made unless the Governor of the Farm Credit Administration finds that the purchase price or rent to be paid is reasonable.

(d) Loans for the construction or purchase of physical facilities, together with interest on the loans, shall be repaid upon an amortization plan over a period not in excess of twenty years. (June 15, 1929, sec. 7, 46 Stat. 14; June 16, 1933, secs. 50-53, 48 Stat. 265; June 3, 1935, secs. 9, 10, 49 Stat. 316; 12 U. S. C., sec. 1141e.)

NOTE.-Subsection (a) of this section originally contained a third paragraph, relating to loans to assist in forming clearing house associations, which was repealed by section 50(a) of the Farm Credit Act of June 16, 1933.

Subsection (a) of this section originally contained a fourth paragraph, relating to loans for education in the advantages of cooperative marketing, which was repealed by section 50(a) of the Farm Credit Act of June 16, 1933.

Subsection (a) of this section originally contained a fifth paragraph, as follows: "(5) enabling the cooperative association applying for the loan to advance to its members a greater share of the market price of the commodity delivered to the association than is practicable under other credit facilities."

This paragraph was repealed by section 50(a) of the Farm Credit Act of June 16, 1933, subject to the following provision of section 50(b) of that Act:

"The repeal of section 7(a) (5) shall not be construed to prohibit the extension, renewal, or refinancing of any loan made thereunder and outstanding on the date of the enactment of this Act, but loans to extend, renew, or refinance any such loan shall bear interest rates as determined under section 8(a) of the Agricultural Marketing Act as amended by section 54 of this Act."

See paragraphs 638-261 and 638-268 of this volume for loans to cooperative associations by banks for cooperatives, established under the Farm Credit Act of June 16, 1933, and capitalized from the revolving fund provided for in paragraph 638-283 hereof.

638-287. Miscellaneous loan provisions.-(a) Loans to any cooperative association shall bear such rates of interest as the Governor of the Farm Credit Administration shall from time to time determine to be necessary for the needs of the lending agencies and shall by regulation prescribe (but in no case shall the rate of interest exceed 6 per centum per annum on the unpaid principal): Provided, however, That the rate of interest on any loan made under the provisions of section 7 (a) (1) hereof, other than upon the security of commodities, shall conform as nearly as may be practicable to a rate 1 per centum in excess of the prevailing interest rate paid by production credit associations to the Federal intermediate credit bank of the farm credit district in which the principal business office of the borrower is located; the rate of interest on any loan made upon the security of commodities shall conform, as nearly as may be practicable, to the prevailing interest rate on commodity loans charged borrowers from the Federal intermediate credit bank of the farm credit district in which the principal business office of the borrower is located; and that the rate of interest on any loan made under the provisions of section 7 (a) (2) hereof shall conform as nearly as may be practicable to the prevailing rate on mortgage loans made to members of national farm loan associations.

1So in original.

(b) Payments of principal or interest upon any such loan or advance shall be covered into the revolving fund.

(c) Loans to any cooperative association or stabilization corporation shall be made upon the terms specified in this Act and upon such other terms not inconsistent therewith and upon such security as the board [now administration]* deems necessary.

(d) No loan or insurance agreement shall be made by the board [now administration]* if in its judgment the agreement is likely to increase unduly the production of any agricultural commodity of which there is commonly produced a surplus in excess of the annual marketing requirements. (June 15, 1929, sec. 8, 46 Stat. 14; June 16, 1933, sec. 54, 48 Stat. 266; June 3, 1935, sec. 11, 49 Stat. 316; Aug. 19, 1937, sec. 5 (a), 50 Stat. 704; 12 U. S. C., sec. 1141f.)

638-288. Stabilization corporations.-(a) The board [now administration]* may, upon application of the advisory commodity committee for any commodity, recognize as a stabilization corporation for the commodity any corporation if

(1) The board [now administration]* finds that the marketing situation with respect to the agricultural commodity requires or may require the establishment of a stabilization corporation in order effectively to carry out the policy declared in section 1; and

(2) The board [now administration]* finds that the corporation is duly organized under the laws of a State or Territory; and

(3) The Board [now administration]* finds that all the outstanding voting stock or membership interests in the corporation are and may be owned only by cooperative associations handling the commodity;

and

(4) The corporation agrees with the board [now administration]* to adopt such by-laws as the board [now administration]* may from time to time require, which by-laws, among other matters, shall permit cooperative associations not stockholders or members of the corporation to become stockholders or members therein upon equitable terms. (b) Any stabilization corporation for an agricultural commodity (1) may act as a marketing agency for its stockholders or members in preparing, handling, storing, processing, and merchandising for their account any quantity of the agricultural commodity or its food products, and (2) for the purpose of controlling any surplus in the commodity in furtherance of the policy declared in section 1, may prepare, purchase, handle, store, process, and merchandise, otherwise than for the account of its stockholders or members, any quantity of the agricultural commodity or its food products whether or not such commodity or products are acquired from its stockholders or members. (c) Upon request of the advisory committee for any commodity the board [now administration]* is authorized to make loans from the revolving fund to the stabilization corporation for the commodity for working capital to enable the corporation to act as a marketing agency for its stockholders or members as hereinbefore provided. Not less than 75 per centum of all profits derived by a stabilization corporation each year from its operations as such a marketing agency shall be paid into a merchandising reserve fund to be established by the corporation. No such payment shall be required whenever the fund is in such amount as, in the judgment of the board [now ad

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