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$ 1131i 1930 (46 Stat. 78, 79), December 20, 1930 (46 Stat.

1032), as amended February 14, 1931 (46 Stat. 1160), and February 23, 1931 (46 Stat. 1276), and Public Resolution Numbered 11, Seventy-second Congress, approved March 3, 1932, and the notes or other obligations evidencing such advances and loans and the security therefor are hereby transferred to the Governor of the Farm Credit Administration

(3) There is hereby authorized to be appropriated the sum of $40,000,000 out of any money in the Treasury not otherwise appropriated.

(b) There is hereby authorized to be appropriated the sum of $2,000,000, which shall remain available until expended, for all necessary administrative expenses in connection with the establishment and supervision of the Production Credit Corporations and the Production Credit Associations.

(c) The authority of the Governor of the Farm Credit Administration to allocate and expend out of the funds covered by subsection (a) of this section such amounts as he shall deem necessary for salaries, expenses, and all other administrative expenditures in the execution of the functions for which such funds have hitherto been available shall not be deemed to be restricted by this section.

(d) The authority to make loans during the calendar year 1933 pursuant to the Act of February 4, 1933 (Public Numbered 327, Seventy-second Congress), as amended, out of funds made available by that Act shall not be deemed to be restricted by this section.

(e.) The amount of all balances, collections, and appropriations allocated under subsection (a) to the revolving fund created thereunder, which is in excess of $120,000,000, is hereby made available to the Governor of the Farm Credit Administration for the establishment of a revolving fund of not to exceed $40,000,000. Out of such revolving fund, the Governor is authorized to allocate and, with the approval of the Secretary of the Treasury, to expend such amounts as he deems necessary for subscriptions to the capital stock and/or paid-in surplus of Federal intermediate credit banks. (June 16, 1933, c. 98, § 5, 48 Stat. 258; Jan. 31, 1934, c. 7, § 15, 48 Stat. 344.)

SUBCHAPTER V.-REGIONAL BANKS FOR
COOPERATIVES AND CENTRAL BANK FOR
COOPERATIVES 2

$ 1134

REGIONAL BANKS Establishment; number; location. The Governor of the Farm Credit Administration, hereinafter in this subchapter and in subchapter VI referred to as the "governor”, is authorized and directed to organize and charter twelve banks to be known as “Banks for Cooperatives.” One such bank shall be established in each city in which there is located a Federal land bank. The directors of the several Federal land banks shall be ex officio the directors of the respective Banks for Cooperatives. Such directors shall have power, subject to the approval of the governor, to employ and fix the compensation of such officers and employees of such banks as may be necessary to carry out the powers and duties conferred upon such banks under this subchapter and subchapter VI (June 16, 1933, c. 98, § 2, 48 Stat. 257).

Organization of Production Credit Corporations, see $ 1131.

8 1134a

Charters and bylaws.-The charters of the Banks for Cooperatives shall be granted by the governor upon application of the directors of the Federal land bank of the proper district, and applications and charters shall be in such form as the governor shall prescribe. The directors shall have power, subject to the approval of the governor, to adopt such bylaws as may be necessary for the conduct of the business of the banks (June 16, 1933, c. 98, § 3, 48 Stat. 257).

Charters of Production Credit Corporations, see $ 1131a.

§ 1134b

Capital stock; amount; value of shares; payments from revolving fund for stock purchased by Government.--The capital stock of each Bank for Cooperatives established under section 1134 shall be in such amount as the governor determines is required for the purpose of meeting the credit needs

eligible borrowers from the bank under this subchapter, and such amount 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. Out of the revolving fund created under section 1141d of this chapter, as amended, the governor, on behalf of the ? See also subchapter VI.

United States, shall make payments for stock in the banks and such payments shall be subject to call in whole or in part by the board of directors of the bank with the approval of the governor (June 16, 1933, c. 98, $ 40, 48 Stat. 264).

8 1134c Lending power.—The Banks for Cooperatives

are authorized to make loans to cooperative associations for any of the purposes and subject to the conditions and limitations set forth in subchapter VII of this chapter, and subject to such terms and conditions as may be prescribed by the board of the bank with the approval of the governor (June 16, 1933, c. 98, § 41, 48 Stat. 264).

See also sec. 1134).

$ 1134d

Ownership of stock in banks by borrowing associations; earnings and reserves of banks.—The provisions of sections 1134k and 11341 of this chapter shall apply in the case of Banks for Cooperatives in the same manner and to the same extent as such provisions are applicable to the Central Bank for Cooperatives, except that powers conferred on the chairman of the board of the Central Bank shall be exercised by the boards of directors of the Banks for Cooperatives, subject to the approval of the governor (June 16, 1933, c. 98, 42, 48 Stat. 264).

8 11340

Retirement of stock held by Government.—The governor may at any time require any such bank to retire and cancel stock held by the governor in such bank, if, in the judgment of the governor, the bank has resources available therefor, and amounts received by the governor in any such case shall be credited to the revolving fund created under section 1141d of this chapter, as amended (June 16, 1933, c. 98, § 43, 48 Stat. 265).

CENTRAL BANK

§ 1134f

Establishment; location. The governor is authorized and directed to organize and charter a corporation to be known as the “Central Bank for Cooperatives" with its principal office in the District of Columbia and such other offices as in the opinion of the governor may be necessary (June 16, 1933, c. 98, § 30, 48 Stat. 261).

$ 1134g

Board of directors.-(a) The board of directors of the Central Bank for Cooperatives shall consist of seven members, one of whom shall be the Cooperative Bank Commissioner of the Farm Credit Administration, who shall be chairman of the board of directors. The other six directors shall be appointed by the governor, of whom the successors of three first appointed shall be appointed from nominees selected by borrowers as provided in subsection (b). The terms of the directors first appointed shall be for one, two, and three years as designated by the governor at the time of appointment and their successors shall hold their offices during a term of three years, but a director appointed to fill a vacancy shall hold his office for the unexpired term of the director whose place he is selected to fill. Any appointed director may at any time be removed for cause by the governor. No compensation shall be paid any director as a director of the corporation but the corporation, subject to the approval of the governor, may allow directors a reasonable per diem and expenses.

(b) The successors of three of the directors first appointed shall be selected one each year by the governor from among individuals nominated by borrowers (except Banks for Cooperatives). The governor shall, not less than sixty days prior to the end of the term of any director whose successor is to be appointed from among nominees as herein provided, or as soon as practicable after a vacancy occurs in the office of such director other than by the expiration of his term, cause notice of the vacancy to be sent to each borrower eligible to vote for nominees. Each such borrower shall be eligible to cast one vote. The governor shall not count any ballot received after the expiration of thirty days after the sending of notice. From those (not exceeding three) receiving the highest number of votes, as shown by his count, the governor shall appoint the director (June 16, 1933, c. 98, § 31, 48 Stat. 262).

8 1134h Powers of board of directors; chairman of

board.—The chairman of the board of the corporation shall be the executive officer of the corporation and the powers of the board of directors shall be such powers as may be prescribed in the charter and bylaws (June 16, 1933, c. 98, 9 32, 48 Stat. 262).

$ 11341

Capital stock.-- The capital stock of the central bank shall be in such amount as the governor determines is required for the purpose of meeting the credit needs of eligible borrowers from the bank under this subchapter, and the governor may from time to time increase or decrease such amount, subject to the limitations contained in sections 1134k and 1134m in accordance with such needs. The stock of such bank shall be divided into shares of $100 each. Out of the revolving fund created under section 1141d of this chapter, as amended, the governor, on behalf of the United States, shall subscribe for and make payments for stock in the Central Bank and such payments shall be subject to call in whole or in part by the chairman of the board of the Central Bank with the approval of the governor (June 16, 1933, c. 98, 833, 48 Stat. 262).

$ 1134j

Lending power; prevention of duplication of effort on the part of Central Bank and Banks for Cooperatives. --The Central Bank is authorized to make loans to cooperative associations, as defined in subchapter VII of this chapter, as amended, for any of the purposes and subject to the conditions and limitations set forth in such subchapter, as amended, and to make loans, by way of discount or otherwise and subject to such terms and conditions as may be prescribed by the chairman of the board of the Central Bank, to Banks for Cooperatives established under section 1134 of this subchapter.

The governor shall, by regulation or by prescribing the terms of the charters issued to the Central Bank for Cooperatives and the Banks for Cooperatives, or both, provide such limitations, as between the two types of banks, on the classes of borrowers to which loans may be made and the amount of the loans which may be made to individual borrowers, as will best insure the absence of duplication of effort by the two types of banks and will secure the greatest efficiency in extending the benefits of this subchapter to borrowers (June 16, 1933, c. 98, 98 34, 38, 48 Stat. 262, 264).

8 1134k Ownership of stock by associations borrowing

from bank; payment into bank's guaranty fund by associations not authorized to purchase stock.-(a) Cooperative associations borrowing from the Central Bank shall be required to own, at the time the loan is made, an amount of stock of the bank equal

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