sue; notice to registrar; cancellation of mortgage and discharge of lien upon full payment.

Whenever any Federal land bank, or joint-stock land bank, shall receive any principal payments upon any first mortgage or bond pledged as collateral security for the issue of farm-loan bonds, it shall forthwith notify the farm-loan registrar thereof as may be required by the Farm Credit Administration. Said registrar shall reflect such payment on his records in such manner as may be prescribed by the Farm Credit Administration. Upon notice from the bank that any such mortgage is paid in full, said registrar shall cause the same to be delivered to the proper land bank, which shall promptly cancel said mortgage and transmit such canceled mortgage, together with a release or satisfaction thereof as may be required to satisfy and discharge the lien of record, to the original maker thereof, or his heirs, administrators, executors, or assigns. (As amended Oct. 29, 1949, ch. 786, § 4, 63 Stat. -.)

1949 amendment. Act Oct. 29, 1949, cited to text, amended section by simplifying the bookkeeping of the land banks by changing the requirement that the registrar record cach payment on the mortgage entitled to credit, to a requirement providing for the keeping of records by the registrar as prescribed by the Farm Credit Administration, by providing for cancellation of mortgages by the land banks instead of the registrar, and by the elimination of the requirement that the banks must discharge the lien of record when a mortgage is paid in full. § 963a. Repealed. (June 30, 1947, ch. 166, Title II, § 206(c), 61 Stat. 208.)

PENALTIES

§§ 981-987. Repealed. (June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948.)

Section 981, relating to false statements in applications for loans, is covered by sections 218, 221, 1014, and 1909 of new Title 18, Crimes and Criminal Procedure. Section 982, relating to counterfeiting bonds or coupons, is covered by section 493 of new Title 18, Crimes and Criminal Procedure.

Section 983, relating to charging or receiving unauthorized fees or commissions, is covered by sections 221 and 1907 of new Title 18, Crimes and Criminal Procedure.

Section 984, relating to fraud and embezzlement, is covered by sections 657 and 1006 of new Title 18, Crimes and Criminal Procedure.

Section 985, relating to false pretenses as to character of bonds or coupons, is covered by section 1013 of new Title 18, Crimes and Criminal Procedure.

Section 986, relating to detection and arrest of violators, is covered by section 3056 of new Title 18, Crimes and Criminal Procedure.

Section 987, relating to false statements by mortgagee, is covered by section 1011 of new Title 18, Crimes and Criminal Procedure.

SUBCHAPTER II.-LÓANS TO FARMERS BY LAND BANK COMMISSIONER 81016. Loans to farmers by Land Bank Commissioner; provisions governing.-(a) Repealed. June 30, 1947, ch. 166, Title II, § 206(h), 61 Stat. 208.

(c) Provisions to be included in mortgage; interest rate; repayment of principal in installments; maximum terms of loans as affected by character of security; privilege of deferring principal payments during first 3 years of loan.-Every mortgage made under this section shall contain an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of annual or semiannual installments, sufficient to cover (1) interest on unpaid

principal at a rate of 1 per centum per annum higher than the rate on loans through national farm loan associations made at the same time by the Federal land bank in the farm credit district in which the security for the loan under this section is located: Provided, however, That loans guaranteed under sections 694-694e of Title 38 may be made at such lower rate as may be necessary to qualify them for such guaranty and (2) such payments equal in amount to be applied on principal as will extinguish the debt within an agreed period of not more than ten years or, in the case of a first or second mortgage secured wholly by real property within an agreed period no greater than that for which loans may be made under the preceding subchapter, from the date the first payment on principal is due: Provided, That when in the judgment of the Land Bank Commissioner conditions justify it, any mortgage made under this section may provide that during the first three years the loan is in effect payments of interest only may be required if the borrower shall not be in default with respect to any other condition or covenant of his mortgage.

(1) Substitution of Federal land bank loan.-The instruments under which each loan under this section is made and security given therefor shall provide that if at any time it shall appear to the lender that the borrower may be able to obtain a Federal land bank loan on the mortgaged property, the borrower shall, on request of the lender, apply for a Federal land bank loan to pay off the loan under this section, and shall accept such loan as may be offered to him by the Federal land bank, if sufficient in amount to pay the loan under this section and pay for any stock which it is necessary for him to purchase in obtaining the loan from the Federal land bank.

(g) Loans by Commissioner on behalf of Federal Farm Mortgage Corporation; loans in cash or bonds; amount available.-Until July 1, 1947, the Land Bank Commissioner shall, in his name, make loans under this section on behalf of the Federal Farm Mortgage Corporation, and may make such loans in cash or in bonds of the corporation, or if acceptable to the borrower, in consolidated farm loan bonds; but no such loans shall be made by him after July 1, 1947, except for the purpose of refinancing loans previously made by him under this section. As much as may be necessary of the assets of the corporation, including the bonds (and proceeds thereof) issued under section 1020c of this title, may be used for the purposes of this section. (As amended June 30, 1945, ch. 204, § § 11-13, 59 Stat. 269; July 12, 1946, ch. 570, § 1, 60 Stat. 532; June 30, 1947, ch. 166, Title II, § 206(h), 61 Stat. 208.)

Subsec. (a) repealed by Act June 30, 1947, cited to text.

Subsec. (c) amended by Act June 30, 1945, cited to text, which struck out "interest on unpaid principal at a rate not to exceed 5 per centum per annum" and inserted in lieu thereof "interest on unpaid principal guaranty" in subd. (1).

Subsec. (c) (1) added by Act June 30, 1945, cited to text.

for such

Subsec. (g) amended by Acts June 30, 1945, and July 12, 1946, both cited to text. Act June 30, 1945, substituted "July 1, 1946" for July 1, 1945" wherever appearing. Act July 12, 1946, substituted July 1, 1947" for "July 1, 1946** wherever appearing.

Repeal of authority of the Farm Credit Administration to make emergency crop production, feed, seed, drought, and rehabilitation loans on Aug. 14, 1946, see note set out under section 1001 of Title 7, Agriculture.

Saving clause and effective date of amendment by Act June 30, 1945, cited to text, see notes set out under section 712 of this title.

SUBCHAPTER II-A.-FEDERAL FARM MORTGAGE CORPORATION

§ 1020. Establishment of corporation; directors; bylaws; regulations; officers and employees.

Repeal of authority of the Farm Credit Administration to make emergency crop production, feed, secd, drought, and rehabilitation loans on Aug. 14, 1946, see note set out under section 1001 of Title 7, Agriculture.

Financial control of Corporation, see chapter 14 of Title 31, Money and Finance. § 1020a-2. Authority to make expenditures; exceptions.-The Federal Farm Mortgage Corporation is authorized to make such expenditures, within the limits of funds and borrowing authority available to such corporation and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 849 of Title 31, as may be necessary in carrying out the program set forth in the Budget for the fiscal year 1950 for such corporation except as hereinafter provided:

Not to exceed $1,500,000 (to be computed on an accrual basis) of the funds of the Corporation shall be available for administrative expenses, including employment on a contract or fee basis of persons, firms, and corporations for the performance of special services, includ ing legal services, and the use of the services and facilities of Federal land banks, national farm loan associations, Federal Reserve Banks, and agencies of the Government as authorized by sections 1020-1020h of this title; and said total sum shall be exclusive of services and facilities furnished and examinations made by the Farm Credit Administration central office, interest expense, and expenses in connection with the acquisition, operation, maintenance, improvement, pro, tection, or disposition of real or personal property belonging to the Corporation or in which it has an interest: Provided, That promptly after June 30 of each fiscal year all cash funds in excess of the estimated operating requirements for the current fiscal year shall be declared as dividends and paid into the general fund of the Treasury. (June 29, 1949, ch. 280, Title II, § 201, 63 Stat. 346.)

Codification. This section was enacted as a part of the Department of Agriculture Appropriation Act, 1950, and not as a part of the Federal Farm Mortgage Act of 1934, which comprises this subchapter.

§ 1020b. Capital; amount; subscription by United States; repay. ment by corporation.-The capital of the corporation shall be in the sum of $200,000,000, which shall be subscribed by the Governor on behalf of the United States in such amounts and at such times as he deems necessary for the purposes of the corporation. For the purpose of such capital subscription, the funds and proceeds thereof made available to the Land Bank Commissioner under section 1016 of this title and the mortgages taken by the Commissioner and the credit instruments secured thereby are hereby transferred to the corporation. The Federal Farm Mortgage Corporation is authorized to repay to the Secretary of the Treasury on behalf of the United States from time to time such portions of the amounts subscribed to the capital stock of the Corporation as are found by the board of directors to be

in excess of the capital necessary to enable the Corporation to carry out its functions as authorized by law. The proceeds of such repay-ments shall be held in the Treasury of the United States as a fund available for subscription, by the Governor on behalf of the United States with the approval of the Secretary of the Treasury, to the capital of the Corporation when, in the judgment of the directors of the Corporation, additional subscriptions to its capital are necessary. (As amended June 30, 1945, ch. 204, § 14, 59 Stat. 269; July 12, 1946, ch. 570, § 2, 60 Stat. 532.)

Act July 12, 1946, cited to text, amended last two sentences of section to authorize the return of the $50,000,000 held by the Corporation, or such portion of it as in excess of the necessary amount to enable the Corporation to carry out its functions, to the Treasury, where it will be held subject to the call of the Governor at any time the directors of the Corporation deem additional subscription to its capital are necessary.

Act June 30, 1945, cited to text, amended section by omitting on or before June 30, 1941" and substituting $50,000,000" for "$100,000,000" in third sentence, and by capitalizing "Corporation" wherever appearing in last senSaving clause and effective date of amendment by Act June 30, 1945, cited to text, see notes set out under section 712 of this title.

tence.

§ 1020c-1. Same; limitation on aggregate bond amount.-The aggregate amount of bonds the Corporation may issue and have outstanding at any one time shall not exceed $500,000,000. (June 30, 1948, ch. 773, Title II, § 201, 62 Stat. 1191; June 29, 1949, ch. 280, Title II, § 201, 63 Stat. 346.)

Codification. This section was enacted as a part of the Government Corporations Appropriation Act, 1949, Act June 30, 1948, cited to text, and not as a part of the Federal Farm Mortgage Corporation Act which comprises this chapter.

§ 1020d. Purchase of consolidated farm loan bonds; loans to Federal and joint-stock land banks; investment in mortgages; extensions; sale and assignment of notes and mortgages.-The corporation is further authorized to purchase from time to time, for cash, such consolidated farm loan bonds at such prices and upon such terms as may be approved by the board of directors of the corporation; to make loans to Federal land banks and joint-stock land banks on the security of real estate mortgages, sheriff's certificates, sales contracts and real estate, upon such terms and conditions as shall be prescribed by the board of directors of the corporation: Provided, however, That loans outstanding to joint-stock land banks under this section shall not at any one time exceed in the aggregate $10,000,000; to make loans to Federal land banks on the security of consolidated farm loan bonds; and to invest its funds in mortgage loans made under section 1016 of this title.

When in the judgment of the directors conditions justify it, the corporation shall have power to extend, in whole or in part, any unpaid obligation under the terms of any mortgage, and to accept payment of any such obligation together with interest thereon, at a rate not exceeding 5 per centum per annum, during such period and in such amounts as may be agreed upon at the date of making such extension. The Corporation is authorized and empowered to sell and assign, without recourse and without warranty, its notes and mortgages representing loans made by the Land Bank Commissioner pursuant to section 1016 of this title, to the Federal land bank lo

cated in the farm credit district in which the mortgaged farm properties are situated and to sell and assign in like manner purchase money mortgages and contracts for the sale of farms held by the Federal Farm Mortgage Corporation in connection with the sale of farm property situated in such district. (As amended June 30, 1945, ch. 204, § 15, 59 Stat. 269.)

Act June 30, 1945, cited to text, amended section by adding last sentence. Saving clause and effective date of amendment by Act June 30, 1945, cited to text, see notes set out under section 712 of this title.

SUBCHAPTER II-B.-LOANS TO FARMERS BY GOVERNOR OF FARM CREDIT ADMINISTRATION

§§ 10201-1020n. Repealed. Aug. 14, 1946, ch. 964, § 2(a) (2), 60 Stat. 1062.

§ 1020n-1. Fraudulently obtained loans; personal liability of federal employees.

Section omitted from the Code as its provisions regarding the personal liabil ity of federal employees approving loans fraudulently obtained under former sections 10201-1020n and 10200 of this title are obsolete due to the repeal of said sections 10201-1020n and 10200 by Act Aug. 14, 1946, ch. 964, § 2 (a) (2), 60 Stat. 1062.

§ 10200. Repealed. Aug. 14, 1946, ch. 964, § 2(a) (2), 60 Stat. 1062.

SUBCHAPTER III.-FEDERAL INTERMEDIATE CREDIT BANKS

ORGANIZATIONS

§1023a. Authority to make expenditures; exceptions.-Federal Intermediate credit banks are authorized to make such expenditures, within the limits of funds and borrowing authority available to such agencies and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 849 of Title 31, as may be necessary in carrying out the program set forth in the Budget for the fiscal year 1950 for such agencies except as hereinafter provided.

Not to exceed $1,398,000 (to be computed on an accrual basis), of the funds of the banks shall be available for administrative expenses, including the purchase of not to exceed two passenger motor vehicles for replacement only, services performed for the banks by other Government agencies (except services and facilities furnished and examinations made by the Farm Credit Administration central office, and services performed by any Federal Reserve bank and by the United States Treasury in connection with the financial transactions of the banks); and said total sum shall be exclusive of interest expense, legal and special services performed on a contract or fee basis, and expenses in connection with the acquisition, operation, maintenance, improvement, protection, or disposition of real or personal property belonging to the banks or in which they have an interest. (June 29, 1949, ch. 280, Title II, § 201, 63 Stat. 346.)

PENALTY PROVISIONS

881121-1128. Repealed. June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948.

Section 1121, relating to offenses by officers, employees, or agents, is covered by sections 657 and 1006 of new Title 18, Crimes and Criminal Procedure.

Section 1122, relating to false statements to banks, is covered by section 1014 of new Title 18, Crimes and Criminal Procedure.