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Governor on behalf of the United States shall make
payment for stock and paid-in surplus of such bank
and such payment shall be subject to call in whole
or in part by the board of directors of the bank,
with the approval of the Governor (July 17, 1916,
c. 245, $ 205; Mar. 4, 1923, c. 252, § 2, 42 Stat.
1457; May 19, 1932, c. 191, $ 2, 47 Stat. 159; Mar.
27, 1933, Ex. Or. 6084; Jan. 31, 1934, c. 7, § 15,
48 Stat. 344).

§ 1062

APPLICATION OF EARNINGS Salaries and expenses of Federal Farm Loan $ 206 (a) Bureau; assessment against banks for proportionate share.—The Farm Credit Administration shall equitably apportion the joint salaries and expenses incurred in behalf of Federal land banks, joint stock land banks, and Federal intermediate credit banks, and shall assess against each Federal intermediate credit bank its proportionate share of the salaries and expenses of the Federal Farm Loan Bureau made necessary in connection with the operation of this provision (July 17, 1916, c. 245, $ 206 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1457; Mar. 4, 1925, c. 524, § 1, 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.

For salaries and expenses to be included in assessments, see $ 657, of this chapter. See also $ 1094, below, for assessment of examination costs.

$ 1072

Net earnings; surplus fund; franchise tax; dis- $ 206 (b) position by United States of sums received from net earnings of banks and from surplus remaining after liquidation of banks. After all necessary expenses of a Federal intermediate credit bank have been paid or provided for, the net earnings shall be paid into a surplus fund until it shall amount to 100 per centum of the subscribed capital stock of such bank, and thereafter 50 per centum of such earnings shall be paid into the surplus. Whenever the surplus thus paid in shall have been impaired it shall be fully restored before payment of the franchise tax herein prescribed. After the aforesaid requirements of this section have been fully met and, except as otherwise provided in this subchapter, 50 per centum of the net earnings shall be paid to the United States as a franchise tax. The net earnings derived by the United States from Federal intermediate credit banks shall, in the discretion of the Secretary of the Treasury, be used to supplement the gold reserve

held against outstanding United States notes, or
shall be applied to the reduction of the outstanding
bonded indebtedness of the United States under
regulations to be prescribed by the Secretary of the
Treasury. Should a Federal intermediate credit
bank be dissolved or go into liquidation, after the
payment of all debts and other obligations as
hereinbefore provided, any surplus remaining shall
be paid to and become the property of the United
States and shall be similarly applied (July 17, 1916,
c. 245, $ 206 (b); Mar. 4, 1923, c. 252, 82, 42 Stat.
1457; May 19, 1932, c. 191, § 3, 47 Stat. 159).

LIABILITY ON DEBENTURES OR OTHER SUCH

OBLIGATIONS

$ 1081

207

Liability of one bank for debentures issued by other banks; agreements by banks for transfer of funds for debenture payments.—Any Federal intermediate credit bank issuing debentures or other such obligations under this subchapter shall be primarily liable therefor, and shall also be liable, upon presentation of the coupons for interest payments due upon any such debentures or obligations issued by any other Federal intermediate credit bank and remaining unpaid in consequence of the default of the other Federal intermediate credit bank. Any Federal intermediate credit bank shall likewise be liable for such portion of the principal of debentures or obligations so issued as are not paid after the assets of such other Federal intermediate credit bank have been liquidated and distributed. Such losses, if any, either of interest or of principal, shall be assessed by the Farm Credit Administration against solvent Federal intermediate credit banks liable therefor in proportion to the amount of capital stock, surplus, and debentures or other such obligations which each may have outstanding at the time of such assessment. Every Federal intermediate credit bank shall, by appropriate action of its board of directors duly recorded in its minutes, obligate itself to become liable on debentures and other such obligations as provided in this section: Provided, That in view of the liability of all Federal intermediate credit banks for the debentures and other such obligations of each bank under this chapter, the banks shall, in accordance with rules, regulations, and orders of the Farm Credit Administration, enter into adequate agreements and arrangements among themselves by which funds shall be transferred

and/or made available from time to time for the
payment of all such debentures and other such
obligations and the interest thereon when due in
accordance with the terms thereof (July 17, 1916,
c. 245, 8 207; Mar. 4, 1923, c. 252, § 2, 42 Stat.
1458; May 19, 1932, c. 191, § 4, 47 Stat. 159; 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.

EXAMINATIONS AND REPORTS

§ 1091

Reports of condition of banks and other lending $ 208 (a) institutions rediscounting with credit banks; examinations and audits of credit banks. In order to enable each Federal intermediate credit bank to carry out the purpose of this subchapter, the Comptroller of the Currency is hereby authorized and directed, upon the request of any Federal intermediate credit bank, (1) to furnish for the confidential use of such bank such reports, records, and other information, as he may have available, relating to the financial condition of national banks through or for which the Federal intermediate credit bank has made or contemplates making discounts, and (2) to make through his examiners, for the confidential use of the Federal intermediate credit bank, examinations of organizations through or for which the Federal intermediate credit bank has made or contemplates making discounts or loans: Provided, That no such examination shall be made without the consent of such organization except where such examination is required by law: Provided, That any organization, except State banks, trust companies and savings associations, shall, as a condition precedent to securing rediscount privileges with the Federal intermediate credit bank of its district, file with such bank its written consent to its examination as may be directed by the Farm Credit Administration by land bank examiners; and State banks, trust companies and savings associations may be in like manner required to file their written consent that reports of their examination by constituted authorities may be furnished by such authorities upon request to the Federal intermediate credit bank of their district. Each Federal intermediate credit bank shall be examined and audited at least once each year by the Farm Credit Administration, and the results of such examination and audit shali

be made public by the administration (July 17,
1916, c. 245, $ 208 (a); Mar. 4, 1923, c. 252, § 2,42
Stat. 1458; Mar. 27, 1933, Ex. Or. 6084).

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

8 1092

Submission and publication of reports of condi- $ 208 (b) tion by banks.-Every Federal intermediate credit bank shall make to the Farm Credit Administration not less than three reports during each year as requested by the administration and according to the form which may be prescribed by the administration, verified by the oath or affirmation of the president, or secretary, or treasurer, of each Federal Intermediate credit bank and attested by the signature of at least three of the directors. Each report shall exhibit, in detail and under appropriate heads, the resources and liabilites of the Federal intermediate credit bank at the close of business on any past day specified by the Farm Credit Administration, within five days from the receipt of a request or requisition therefor from the administration, and in the same form in which it is made to the Farm Credit Administration shall be published in a newspaper published in the place where such Federal intermediate credit bank is established, or if there is no newspaper in the place, then in the one published nearest thereto, in the same county, at the expense of the bank; and such proof of publication shall be furnished as may be required by the Farm Credit Administration. The Farm Credit Administration shall also have power to call for special reports from any particular Federal intermediate credit bank whenever in its judgment the same are necessary for a full and complete knowledge of its condition (July 17, 1916, c. 245, § 208 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084).

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

$ 1093

Investigations and reports by land bank ap- $ 208 (c) praisers and examiners for credit banks.—Land bank appraisers are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to investigate and make a written report upon the products covered by warehouse receipts or shipping

documents, and the livestock covered by mortgages, which are security for notes or other such obligations representing any loan to any organization, under this subchapter. Land bank examiners are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to examine and make a written report upon the condition of any organization, except national banks, to which the Federal intermediate credit bank contemplates making any such loan (July 17, 1916, c. 245, $ 208 (c); Mar.4, 1923, c. 252, § 2, 42 Stat. 1459; 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.

§ 1094

Cost of examinations; assessments against or- § 208 (d) ganizations investigated. The Farm Credit Administration shall assess the cost of all examinations made by the examiners of the administration under the provisions of this subchapter upon the bank, trust company, savings institution, or organization investigated, in accordance with the regulations to be prescribed by the administration. (July 17, 1916, c. 245, § 208(d); Mar. 4, 192 0. 252, $ 2, 42 Stat. 1459; Mar.27,1933, Ex. Or. 6084.)

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

$ 1101

8 209

RULES AND REGULATIONS
Authority of Farm Credit Administration. The
Farm Credit Administration is authorized to make
such rules and regulations, not inconsistent with
law, as it deems necessary for the efficient execution
of the provisions of this subchapter. (July 17,
1916, c. 245, $ 209; Mar. 4, 1923, c. 252, $ 2, 42
Stat. 1459; 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.

$ 1111

§ 210

TAX EXEMPTION
Capital and income; debentures instrumentali-
ties of Government.—The privileges of tax ex-
emption accorded under section 931 of this chapter
shall apply also to each Federal intermediate credit
bank including its capital, reserve, or surplus, and
the income derived therefrom, and the debentures
issued under this subchapter shall be deemed and
held to be instrumentalities of the Government and

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