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An Act “To provide capital for agricultural development, to create a standard
the United States, and for other purposes."
PERSONNEL OF THE SEVERAL COMMITTEES OF THE SIXTY-FOURTH
CONGRESS WHICH CONSIDERED THE BILL.
JOINT COMMITTEE ON RURAL CREDITS.
CARTER GLASS, Virginia, Chairman.
MICIIA EL F. PIELAN, Massachusetts.
ASBURY F. LEVER, South Carolina.
RALPH W. MOSS, Indiana.
EVERIS A. HAYES, California.
WILLIS C. HAWLEY, Oregon.
W. W. FLANNAGAN, Secretary.
SENATE COMMITTEE ON BANKING AND CURRENCY.
ROBERT L. OWEN, Oklahoma, Chairman.
KNUTE NELSON, Minnesota.
GEO, P. MCLEAN, Connecticut.
JOHN W. WEEKS, Massachusetts.
CARROLL S. PAGE, Vermont.
ASLE J. GRONNA, North Dakota.
GEO. W. NORRIS, Nebraska.
J. W, BELLER, Clerk.
HOUSE COMMITTEE ON BANKING AND CURRENCY.
CARTER GLASS, Virginia, Chairman.
EVERIS A. HAYES, California,
F. E. GUERNSEY, Maine.
F. P. WOODS, Iowa.
EDMUND PLATT, New York.
GEO. R. SMITH, Minnesota.
CHAS. A. LINDBERGH, Minnesota.
A. L. KEISTER, Pennsylvania.
L. T. MCFADDEN, Pennsylvania.
C. D. HAMNER, Clerk.
THE FEDERAL FARM LOAN ACT.
AN ACT To provide capital for agricultural development, to create standard forms Purposes
Be it enacted by the Senate and House of Representatives of the United
Loan be under the direction and control of the Federal Farm Loan Board Board. hereinafter created.
SEO. 2. That wherever the term “first mortgage" is used in this Act it shall be held to include such classes of first liens on farm lands. First mortgage de
fined. as shall be approved by the Federal Farm Loan Board, and the credit instruments secured thereby. The term "farm loan bonds" shall be held to include all bonds secured by collateral deposited with a farm loan registrar under the terms of this Act; they shall be defined. distinguished by the addition of the words "Federal," or "joint stock," as the case may be.
FEDERAL FARM LOAN BOARD.
Federal Farm Loan
SEO. 3. That there shall be established at the seat of government in the Department of the Treasury a bureau charged with the execution of this Act and of all Acts amendatory thereof, to be known as Bureau established. the Federal Farm Loan Bureau, under the general supervision of a Federal Farm Loan Board.
Said Federal Farm Loan Board shall consist of five members, to consist of five including the Secretary of the Treasury, who shall be a member and Secretary of Treasury chairman ex officio, and four members to be appointed by the Presi- (er officio), to be apa
pointed by the Presi. dent of the United States, by and with the advice and consent of the dent. Senate. Of the four members to be appointed by the President, not more than two shall be appointed from one political party, and all Bipartisan; must bo four of said members shall be citizens of the United States and shall citizens mand devote their entire time to the business of the Federal Farm Loan Board; they shall receive an annual salary of $10,000 payable Salaries and expenses. monthly, together with actual necessary traveling expenses.
One of the members to be appointed by the President shall be designated by him to serve for two years, one for four years, one for Terms of office. six years, and one for eight years, and thereafter each member so appointed shall serve for a term of eight years, unless sooner removed for cause by the President. One of the members shall be designated Designate by the President as the Farm Loan Commissioner, who shall be the active executive officer of said board. Each member of the Federal Farm Loan Board shall within fifteen days after notice of his appoint- Oath of omice to be ment take and subscribe to the oath of office.
taken within 15 days. The first meeting of the Federal Farm Loan Board shall be held First meeting must in Washington as soon as may be after the passage of this Act, at a bo held in Washington. date and place to be fixed by the Secretary of the Treasury.
Farm Loan Commissioner.
Members can not be associated with other
filled by the President.
Board to appoint farm loan registrar for
paid by United States.
Board to tix comper
No member of the Federal Farm Loan Board shall, during his banking or mortgage continuance in office, be an officer or director of any other institution,
association, or partnership engaged in banking, or in the business of making land mortgage loans or selling land mortgages. Before
entering upon his duties as a member of the Federal Farm Loan Oath taken. Board each member shall certify under oath to the President that he
is eligible under this section. Vacancios in board The President shall have the power, by and with the advice and
consent of the Senate, to fill any vacancy occurring in the membership of the Federal Farm Loan Board; if such vacancy shall be filled during the recess of the Senate a commission shall be granted which shall expire at the end of the next session.
The Federal Farm Loan Board shall appoint a farm loan registrar each district, kanel-bank in each land bank district to receive applications for issues of farm
loan bonds and to perform such other services as are prescribed by this Act. It shall also appoint one or more land bank appraisers for each
land bank district and as many land bank examiners as it shall deem All to be public oli. cials, not interested in necessary. Farm loan registrars, land bank appraisers, and land other institutions, dos bank examiners appointed under this section shall be public officials
and shall, during their continuance in office, have no connection with or interest in any other institution, association, or partnership en
gaged in banking or in the business of making land mortgage loans Temporary emplor: or selling land mortgages: Provided, That this limitation shall not
apply to persons employed by the board temporarily to do special
work. Salaries and expenses The salaries and expenses of the Federal Farm Loan Board, and
of farm loan registrars and examiners authorized under this section, sation et land bank ap: shall be paid by the United States. Land bank appraisers shall respective land banks. receive such compensation as the Federal Farm Loan Board shall fix,
and shall be paid by the Federal land banks and the joint stock land banks which they serve, in such proportion and in such manner as the Federal Farm Loan Board shall order.
The Federal Farm Loan Board shall be authorized and empowered necessary administra.
to employ such attorneys, experts, assistants, clerks, laborers, and
other employees as it may deem necessary to conduct the business Salaries and sees fixed of said board. All salaries and fees authorized in this section and
not otherwise provided for shall be fixed in advance by said board
and shall be paid in the same manner as the salaries of the Federal Administrative force Farm Loan Board. All such attorneys, experts, assistants, clerks, visious ol civil-service laborers, and other employees, and all registrars, examiners, and
appraisers shall be appointed without regard to the provisions of the Act of January sixteenth, eighteen hundred and eighty-three (volume twenty-two, United States Statutes at Large, page four hundred and
three), and amendments thereto, or any rule or regulation made in President may place pursuance thereof: Provided, That nothing herein shall prevent the employees in classified
President from placing said employees in the classified service.
Every Federal land bank shall semiannually submit to the Federal 10 board semiannually Farm Loan Board a schedule showing the salaries or rates of comSlagwing compensatsoá pensation paid to its officers and employees. employees.
The Federal Farm Loan Board shall annually make a full report of annual report to Speak
its operations to the Speaker of the House of Representatives, who
shall cause the same to be printed for the information of the Congress. Examinations
The Federal Farm Loan Board shall from time to time require land banks to be made examinations and reports of condition of all land banks established board and pub. under the provisions of this Act, and shall publish consolidated state
Bor:red must require ments of the results thereof. It shall cause to be made appraisals appraisal of larin hund; of farm lands as provided by this Act,
and publish lion tables to be pub amortization tables which shall be used by national farm loan asso
ciations and land banks organized under this Act.
Board may employ
in a Ivance; paid by United States.
Federal land banks
er of the House
and reports of condition of
Sec. 4. FEDERAL LAND BANKS.
The Federal Farm Loan Board shall prescribe a form for the state-Must prescribe forms ment of condition of national farm loan associations and land banks tion; require quarterly under its supervision, which shall be filled out quarterly by each reports. such association or bank and transmitted to said board.
It shall be the duty of the Federal Farm Loan Board to prepare tion must we prepared from time to time bulletins setting forth the principal features of this and distributed showAct and through the Department of Agriculture or otherwise to dis-lization and giving in tribute the same, particularly to the press, to agricultural journals, structions for moreariz: and to farmers' organizations; to prepare and distribute in the same farm-loan associations. manner circulars setting forth the principles and advantages of amortized farm loans and the protection afforded debtors under this Act, instructing farmers how to organize and conduct farm loan associations, and advising investors of the merits and advantages of farm Investors to te adloan bonds; and to disseminate in its discretion information for the pastges or farm loan further instruction of farmers regarding the methods and principles hocthods ui cooperative of cooperative credit and organization. Said board is hereby author- credit to be oxplained. ized to use a reasonable portion of the organization fund provided in more anization. rund 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 tions tess los asesored from objects.
FEDERAL LAND BANKS,
Sec. 4. That as soon as practicable the Federal Farm Loan Board United Statesto bedi-" shall divide the continental United States, excluding Alaska, into none to include a fractwelve districts, which shall be known as Federal land bank districts,
part of a State. and may be designated by number. Said districts shall be appor-reference to farm-hoan tioned with due regard to the farm loan needs of the country, but no needs. such district shall contain a fractional part of any State. The boundaries thereof may be readjusted from time to time in the discretion of said board.
The Federal Farm Loan Board shall establish in each Federal land bank in each district. bank district a Federal land bank, with its principal office located in such city within the district assaid board shall designate. Each Federal of Citje tiene ljude namo 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, any Federal land bank may establish branches within the land bank Branches. district.
Each Federal land bank shall be temporarily managed by five Temporary, manacedirectors appointed by the Federal Farm Loan Board. Said directors resident bonded" direcshall be citizens of the United States and residents of the district, tors. They shall each give a surety bond, the premium on which shall be paid from the funds of the bank. They shall receive such compen- sation and choose the fisation as the Federal Farm Loan Board shall fix. They shall choose cers. 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 May, employ adecompensation, subject to the approval of the Federal Farm Loan quato force fix comBoard.
Said temporary directors shall, under their hands, forthwith_make Must make organian organization certificate, which shall specifically state:
First. The name assumed by such bank.
Second. The district within which its opérations are to be carried District and city of 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 Capital stock; numwhich 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. Increase of stock for of providing for the issue of shares to national farm loan associations borrowers:
ber of shares.