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shall exceed 75 per centum of the market value of
the products covered by said warehouse receipts
and/or shipping documents, or of the livestock
covered by said mortgages; and to accept drafts or
bills of exchange issued or drawn by any such asso-
ciation when secured by warehouse receipts and/or
shipping documents covering staple agricultural
products as herein provided (July 17, 1916, c. 245,

202 (a); Mar. 4, 1923 c. 252, § 2, 42 Stat. 1455;
June 26, 1930, c. 616, § 1, 46 Stat. 816; May 19,
1932, c. 191, § 1, 47 Stat. 159; June 16, 1933, c. 98,
$ 76 (b), (c), 48 Stat. 271; Mar. 27, 1933, Ex. Or.
6084).

“Farm Credit Administration" mentioned in the text was substituted for “Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

8 1032

Purchase or discount of paper from or for g 202 (b) national banks, State banks, trust companies, savings institutions, or corporations making loans for agricultural or livestock purposes; limitations upon amount.-No paper shall be purchased from or discounted for any national bank, State bank, trust company, or savings institution under section 1031, if the amount of such paper added to the aggregate liabilities of such national bank, State bank, trust company, or savings institution, whether direct or contingent (other than bona fide deposit liabilities), exceeds the amount of such liability permitted under the laws of the jurisdiction creating the same; or exceeds twice the paid in and unimpaired capital and surplus of such national bank, State bank, trust company, or savings institution. No paper shall under section 1031 be purchased from or discounted for any other corporation engaged in making loans for agricultural purposes or for the raising, breeding, fattening, or marketing of livestock, if the amount of such paper added to the aggregate liabilities of such corporation exceeds the amount of such liabilities permitted under the laws of the jurisdiction creating the same; or exceeds ten times the paid in and unimpaired capital and surplus of such corporation. It shall be unlawful for any national bank which is indebted to any Federal intermediate credit bank upon paper discounted or purchased under section 1031, to incur any additional indebtedness, if by virtue of such additional indebtedness its aggregate liabilities, direct or contingent, will exceed the limitations herein contained (July 17, 1916, c. 245, § 202 (b); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1455).

§ 1033

Maturity and sale of loans, advances, or dis- $ 202 (c) counts.--Loans, advances, or discounts made under section 1031 shall have a maturity at the time they are made or discounted by the Federal intermediate credit bank of not more than three years. Any Federal intermediate credit bank may in its discretion sell loans or discounts made under section 1031, with or without its indorsement (July 17, 1916, c. 245, $ 202 (c); Mar. 4, 1923, c. 252, Š 2, 42 Stat. 1456; June 26, 1930, c. 616, $ 2, 46 Stat. 816).

§ 1034

$ 1041

Interest rates or discount charges; rediscount $ 202 (d) of paper of other intermediate credit banks. Rates of interest or discount charged by the Federal intermediate credit banks upon such loans and discounts shall be subject to the approval of the Farm Credit Administration. On the majority vote of the members of the Federal Farm Loan Board any Federal intermediate credit bank shall be required to rediscount the discounted paper of any other Federal intermediate credit bank at rates of interest to be fixed by the Federal Farm Loan Board (July 17, 1916, c. 245, 8202 (d); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration" mentioned in the text was substituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

The offices of the appointed members of the Federal Farm Loan Board were abolished by subdivision 4 of Executive Order No. 6084, set out at the beginning of this chapter, and the powers and duties of the Board transferred to the jurisdiction and control of the Farm Credit Administration by subdivision (5a) of said order.

ISSUE OF DEBENTURES Collateral trust debentures or similar obliga - 8 203 (a) tions; security for; maturity; limitation respecting amount.--Federal intermediate credit banks, when chartered and established, shall have power, subject to the approval of the Farm Credit Administration, to borrow money and to issue and to sell collateral trust debentures or other similar obligations with a maturity at the time of issue of not more than five years, which shall be secured by at least a like face amount of cash, or notes or other such obligations discounted or purchased or representing loans made under section 1031: Provided, That no Federal intermediate credit bank shall have power to issue or obligate itself for debentures or other obligations under the provisions of this section in excess of ten times the amount of the paid-up capital and surplus of such bank (July 17, 1916, c. 245, $ 203 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration” mentioned in the text was substituted for “Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

$ 1042

Applicability of provisions of subchapter I; regu- $ 203 (b) lations governing collateral and handling thereof; interest rates.—The provisions of subchapter I of this chapter relating to the preparation and issue of farm loan bonds shall, so far as applicable, govern the preparation and issue of debentures or other such obligations issued under the preceding section; but the Farm Credit Administration shall prescribe rules and regulations governing the receipt, custody, substitution, and release of collateral instruments securing such debentures or other obligations, the right of substitution being hereby granted. Rates of interest upon debentures and other such obligations issued under the preceding section shall, subject to the approval of the Farm Credit Administration, be fixed by the Federal intermediate credit bank making the issue, not exceeding 6 per centum per annum (July 17, 1916, c. 245, $ 203 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration” mentioned in the text was substituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

8 1043

Assumption of liability by Government prohib- $ 203 (c) ited; recital necessary to be included.—The United States Government shall assume no liability, direct or indirect, for any debentures or other obligations issued under section 1041, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form and substance by the Farm Credit Administration and approved by the Secretary of the Treasury, clearly indicating that no such liability is assumed (July 17, 1916, č. 245, § 203 (c); Mar. 4, 1923, c. 252, 8 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration" mentioned in the text was substituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

DISCOUNT RATES

$1051

Establishment and approval of; limitation on.-- $204 (a) Before making any discounts under the provisions of this chapter, each Federal intermediate credit bank shall establish and promulgate a rate of discount to be approved by the Farm Credit Administration. Any Federal intermediate credit bank which has made an issue of debentures under the provision of this chapter may thereafter establish, with the approval of the Farm Credit Administration, a rate of discount not exceeding by more than 1 per centum per annum the rate borne by its last preceding issue of debentures: Provided, That the

Farm Credit Administration may classify loans and
debentures according to maturity, and if deben-
tures of different classes sell at a different rate the
Federal Intermediate Credit Banks may differenti-
ate in rates on like classes of loans in the same ratio
(July 17, 1916, c. 245, $ 204(a); Mar. 4, 1923, c. 252,
$ 2, 42 Stat. 1456; Mar. 4, 1925, c. 524, § 2,43 Stat.
1262; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration” mentioned in the text was substituted
for Federal Farm Loan Board” pursuant to the Executive Order cited
thereto, which is set out in full at the beginning of this chapter.

$ 1052

Limitation on interest rate charged original bor- $ 204 (b) rower on paper discounted with bank.—No organization entitled to the privileges of this subchapter, shall, without the approval of the Farm Credit Administration, be allowed to discount with any Federal intermediate credit bank any note or other obligation, upon which the original borrower has been charged a rate of interest exceeding by more than 172 per centum per annum the discount rate of the Federal intermediate credit bank at the time such loan was made (July 17, 1916, c. 245, $ 204(b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration” mentioned in the text was substituted

Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

for

$ 1053

$ 1061

Purchase by bank of debentures issued by it.— $ 204 (c) A Federal intermediate credit bank may, subject to the approval of the Farm Credit Administration, buy in the open market at or below par for its own account and retire at or before maturity any such debentures or obligations issued by it (July 17, 1916, c. 245, $ 204 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084).

“Farm Credit Administration” mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

CAPITAL STOCK Amount, shares; subscriptions to by United 205 States; assessments against other banks to restore capital impairment of one bank; subscriptions to capital and surplus by Governor of Farm Credit Administration.—a) For the purpose of exercising the powers conferred by this subchapter, each Federal intermediate credit bank shall have a subscribed capital stock of $5,000,000, which amount may be increased from time to time with the approval of the Governor of the Farm Credit Administration. Capital stock of such amount shall be divided into shares of $5 each and shall be subscribed, held, and paid by the Government of the United States.

It shall be the duty of the Secretary of the Treasury to subscribe to such capital stock on behalf of the United States, such subscription to be subject to call in whole or in part by directors of the said banks upon thirty days' notice to the Secretary of the Treasury and with the approval of the Farm Credit Administration. The Secretary of the Treasury is authorized and directed to take out shares as called and to pay for the same out of any money in the Treasury not otherwise appropriated.

“Farm Credit Administration” mentioned in the text was substituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

(b) In the event that there shall be an impairment of the paid-in capital of any Federal intermediate credit bank, the Farm Credit Administration, at such time or times as it deems advisable, may determine and assess the amount thereof against the other Federal intermediate credit banks on such equitable basis of apportionment as it shall prescribe. Each bank against which such an assessment is made shall, out of its surplus and/or to an extent up to 50 per centum of its net earnings, in accordance with the terms of such assessment, pay the amount thereof as soon as possible to the bank having the impairment. In such event payments into the surplus fund and payments of the franchise tax prescribed by this chapter shall be determined on the basis of the net earnings remaining after providing for the payment of any such assessment.

“Farm Credit Administration" mentioned in the text was substituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

(c) With the approval of the Secretary of the Treasury, the Governor of the Farm Credit Administration is hereby authorized to subscribe from time to time to the capital stock and/or paid-in surplus of any

Federal intermediate credit bank on behalf of the United States, in such amounts as he may determine are necessary for the purpose of meeting the credit needs of eligible borrowers from the bank, and the amount of the capital stock and paid-in surplus of such bank may be increased or decreased from time to time by the Governor, in accordance with such needs. Such stock shall be divided into shares of $100 each and subscriptions to such paidin surplus shall be made in multiples of $100 out of the revolving fund created under subsection (e) of section 1131i of this chapter, as amended. The

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