agencies, such notice shall be sent to all national farm loan associations and borrowers through agencies in the district; in the case of an election by production credit associations, such notice shall be sent to all production credit associations in the district; and in the case of an election by cooperatives which are stockholders or subscribers to the guaranty fund of the bank for cooperatives of the district, such notice shall be sent to all cooperatives which are stockholders or subscribers to the guaranty fund at the time of sending notice. After receipt of such notice those entitled to nominate the director shall forward nominations of residents of the district to the Farm Credit Administration. The Farm Credit Administration shall, from the nominations received within thirty days after the sending of such notice, prepare a list of candidates for such elected director consisting of the ten nominees receiving the highest number of votes.

Same; election of elected directors. (f) At least one month before the election of an elected director the Farm Credit Administration shall mail to each person or organization entitled to elect the elected director the list of the ten candidates nominated in accordance with the preceding paragraph of this section. In the case of an election of a director by national farm loan associations and borrowers through agencies, the directors of each farm loan association shall cast the vote of such association for one of the candidates on the list. In voting under this section each such association shall be entitled to cast a number of votes equal to the number of stockholders of such association and each borrower through agencies shall be entitled to cast one vote. In voting under this section each production credit association shall be entitled to cast a number of votes equal to the number of class B stockholders of such association. In voting under this section each. cooperative which is a holder of stock in, or a subscriber to the guaranty fund of, the bank for cooperatives shall be entitled to cast one vote. The votes shall be forwarded to the Farm Credit Administration and no vote shall be counted unless received by it within thirty days after the sending of such list of candidates. In case of a tie the Farm Credit Administration shall determine the choice. The nominations from which the list of candidates is prepared, and the votes of the respective voters, as counted, shall be tabulated and preserved and shall be subject to examination by any candidate for at least one year after the result of the election is announced.

Same; term of office; vacancies. (g) The terms of office of all directors shall be three years. Any vacancies that may occur in the farm credit board shall be filled for the unexpired term in the manner provided herein for the original selection of such directors.

Same; general qualifications of members. (h) Members of each farm credit board shall have been, for at least two years, residents of the district for which they are appointed or elected. From and after the date of enactment of this Act, no person shall be eligible for election or appointment as a member of any district farm credit board, and no person hereafter elected or appointed as a member of any district farm credit board shall be eligible to continue to serve as such, if in either case said person is an officer or employee of any Federal land bank, Federal intermediate credit bank, production credit corporation, or bank for cooperatives. No district director, excepting any third district director selected as hereinabove specified, shall, during

his continuance in office, be a director, officer, or employee of any institution, association, or partnership engaged in the business of lending money or of making or selling land mortgage loans, except an institution or association under the supervision of the Farm Credit Administration.

Same; felons and defrauders ineligible. (i) No person shall be eligible for appointment or election as an administrative or executive official of a Federal land bank, Federal intermediate credit bank, or of any corporation or bank organized pursuant to the Farm Credit Act of 1933, or as a member of any farm credit board, or shall continue to hold office as such member, if such person has been finally adjudged guilty of a felony, or finally adjudged liable in damages in any civil proceeding for fraud, in any State or Federal court.

Same; compensation of members. (j) Subject to the approval of the Farm Credit Administration members of each farm credit board shall receive such compensation as may be authorized by the board, including a reasonable allowance for necessary expenses in attending meetings of said board and directors' meetings. Such compensation shall be paid by the Federal land bank of the district, and such bank shall be reimbursed therefor by the Federal intermediate credit bank, production credit corporation and bank for cooperatives of the district in such proportion and in such manner as may be fixed by the farm credit board subject to the approval of the Farm Credit Administration. Except with the approval of the Farm Credit Administration, no member of any farm credit board shall receive compensation or allowances for any services rendered such institutions, in his capacity as director or otherwise, for more than thirty days in any one calendar year, exclusive of the period for which compensation is paid for attendance at meetings of said board and at directors' meetings.

Laws unaffected. (k) Nothing contained in this section shall be construed to abrogate or repeal the second paragraph of section 4 of the Federal Farm Loan Act, as amended, or to affect the applicability of any other Act of Congress under which agricultural credit laws of the United States may be made applicable to territories or insular possessions of the United States. (Aug. 19, 1937, sec. 5 (a) to sec. 5 (k), 50 Stat. 704 to 706; 12 U. S. C., sec. 640.

638-7. Powers of farm credit board.-Each farm credit board provided for in this Act shall have power, subject to the approval of the Farm Credit Administration

Employment of joint officers and employees for certain organizations. (a) To employ joint officers and employees for the Federal land bank, Federal intermediate credit bank, production credit corporation, and regional bank for cooperatives in its district. The salaries or other compensation of all such joint officers and employees shall be fixed by the district farm credit board and shall be paid by the Federal land bank of the district. Such bank shall be reimbursed therefor by the other three institutions in the district, in such amounts and upon such conditions as the board shall determine. Officers and employees appointed by the district farm credit board shall be officers and employees of the district institutions served by them.

Authorization of acquisition and disposal of property. (b) To authorize the acquisition and disposal of such property, real or personal, as may be necessary or convenient for the transaction of the business of the

638-17. Salaries and expenses; provision for payment.-The amount of the salaries and expenses of the employees engaged in the work of the division of examinations of the Federal Farm Loan Bureau as estimated by the Farm Credit Administration shall be paid by the Federal land banks, joint-stock land banks, and the Federal intermediate credit banks, as follows:

The Farm Credit Administration shall, prior to the first days of January and July of each year, estimate the expenses and salaries of the employees engaged as aforesaid, and apportion the same among the Federal land banks, joint-stock land banks, and the Federal intermediate credit banks on such equitable basis as the Farm Credit Administration shall determine, giving due consideration to time and expense necessarily incident to the supervision of the operation of each type of bank, and making assessment on each of such banks, pursuant to such apportionment, payable on the first days of January and July next ensuing. The funds collected pursuant to such assessments shall be deposited with the Treasurer of the United States under the miscellaneous receipts title "Assessments on Federal and joint-stock land banks and Federal intermediate credit banks, salaries and expenses, Farm Credit Administration," such expenses and salaries, together with all other expenses and salaries of the said administration, to be disbursed on appropriations duly made by the Congress. If any deficiency shall occur in such fund during the half-year period for which it was estimated, the Farm Credit Administration shall have authority to make immediate assessment covering such deficiency against the Federal land banks, joint-stock land banks, and Federal intermediate credit banks upon the same basis as the original assessment. If at the end of the six months' period there shall remain a surplus in such fund, it shall be deducted from the estimated expenses of the next six months' period when assessment is made for such period. (July 17, 1916, sec. 3, 39 Stat. 361; Mar. 4, 1923, sec. 302, 42 Stat. 1473; Mar. 4, 1925, sec. 3, 43 Stat. 1262; June 26, 1930, 46 Stat. 815; 12 U. S. C., sec. 657.) [The language of the foregoing paragraph is that which appears in the United States Code. This departure from the rule of using statutory language is necessary in this instance because the act of June 26, 1930 (46 Stat. 815), cited to text, amended the original statute in such a way as to make insertion of a correlated statutory context impossible.]

638-18. Appraisers and inspectors; compensation; manner of payment.— Federal land bank appraisers, and appraisers or inspectors of Federal intermediate credit banks, shall receive such compensation as the Federal Farm Loan Board [now Farm Credit Administration]* shall fix and shall be paid by the Federal land banks, joint-stock land banks, and the Federal intermediate credit banks they serve, in such proportion and in such manner as the Federal Farm Loan Board now Farm Credit Administration]* shall order. (July 17, 1916, sec. 3, 39 Stat. 361; Mar. 4, 1923, sec. 302, 42 Stat. 1473; Mar. 4, 1925, sec. 3, 43 Stat. 1262; 12 U. S. C., sec. 658.)

638-19. Attorneys, experts, and other employees; employment; salaries and fees.-The Federal Farm Loan Board [now Farm Credit Administration]* shall be authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as it may deem necessary to conduct the business of said board [now

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

*

administration].* All salaries and fees authorized in this section and not otherwise provided for shall be fixed in advance by said board [now administration]* and shall be paid in the same manner as the salaries of the Federal Farm Loan Board [now Farm Credit Administration]. All such attorneys, experts, assistants, clerks, laborers, and other employees, and all registrars, examiners, and appraisers shall be appointed without regard to the provisions of the Act of January 16, 1883 (22 Stat., 403), and amendments thereto, or any rule or regulation made in pursuance thereof and may be classified without regard to the Classification Act of 1923: Provided, That nothing herein shalal prevent the President from placing said employees in the classified service. (July 17, 1916, sec. 3, 39 Stat. 361; Mar. 4, 1925, sec. 4, 43 Stat. 1263; June 16, 1933, sec. 80 (a), 48 Stat. 273; 12 U. S. C., sec. 659.)

638-20. Statements of salaries paid by land banks.-Every Federal land bank shall semiannually submit to the Federal Farm Loan Board [now Farm Credit Administration]* a schedule showing the salaries or rates of compensation paid to its officers and employees. (July 17, 1916, sec. 3, 39 Stat. 361; 12 U. S. C., sec. 660.)

638-21. Annual report. The Federal Farm Loan Board [now Farm Credit Administration]* shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress. (July 17, 1916, sec. 3, 39 Stat. 361; 12 U. S. C., sec. 661.)

638-22. Examinations and reports by land banks; appraisals of farm land; amortization tables.-The Federal Farm Loan Board [now Farm Credit Administration]* shall from time to time require examinations and reports of condition of all land banks established under the provisions of this Act and shall publish consolidated statements of the results thereof. It shall cause to be made appraisals of farm lands as provided by this Act, and shall prepare and publish amortization tables which shall be used by national farm loan associations and land banks organized under this Act. (July 17, 1916, sec. 3, 39 Stat. 361; 12 U. S. C., sec. 662.)

638-23. Statements of condition of loan associations and lank banks.The Federal Farm Loan Board [now Farm Credit Administration]* shall prescribe a form for the statement of condition of national farm loan associations and land banks under its supervision, which shall be filled out quarterly by each such association or bank and transmitted to said board [now administration]*. (July 17, 1916, sec. 3, 39 Stat. 361; 12 U. S. C., sec. 663.)

638-24. Bulletins and circulars. It shall be the duty of the Federal Farm Loan Board [now Farm Credit Administration]* to prepare from time to time bulletins setting forth the principal features of this Act and through the Department of Agriculture or otherwise to distribute the same, particularly to the press, to agricultural journals, and to farmers' organizations; to prepare and distribute in the same 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 loan bonds; and to disseminate in its discretion information for the fur*Sec Ex. Or. 6084, p. 254, this volume.

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 112 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.