relating to any property acquired by the Land Bank Commissioner and/or the Federal Farm Mortgage Corporation. Any such instrument heretofore or hereafter executed on behalf of the Land Bank Commissioner and/or the Federal Farm Mortgage Corporation by a Federal land bank, through its duly authorized officers, shall be conclusively presumed to have been duly authorized by the Land Bank Commissioner and the Federal Farm Mortgage Corporation. (May 12, 1933, c. 25, § 32, 48 Stat. 48; June 3, 1935, c. 164, § 2 (e), 49 Stat. 314.) (i) Rate of interest payable on certain installment dates. Notwithstanding the foregoing provisions of this section, the rate of interest on loans made under this section shall not exceed 4 per centum per annum for all interest payable on installment dates occurring on or after July 22, 1937, and prior to July 1, 1940. (May 12, 1933, c. 25, § 32, 48 Stat. 48; July 22, 1937, c. 516, § 2, 50 Stat. 521; June 16, 1938, c. 462, § 2, 52 Stat. 709.) Amount of capital subscribed by United States, see § 1020b of this title. In connection with Commissioner's loans in Puerto Rico, see note to § 672 of this title. Commissioner loans on lands in drainage, irrigation, or conservancy districts, see § 773a of this title. § 1017 § 1018 Rules and regulations; appointment, employment, and compensation of officers, employees, and agents.-The Land Bank Commissioner is authorized to make such rules and regulations, and to appoint, employ, and fix the compensation of such officers, employees, attorneys, and agents as may be necessary to carry out the purposes of this subchapter and to make the relief contemplated by this subchapter immediately available, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States: Provided, That no salary or compensation in excess of $10,000 shall be paid to any person employed under the terms of the foregoing section. (May 12, 1933, c. 25, § 33, 48 Stat. 49; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273.) Facilities of Federal land banks and national farm loan associations available to Commissioner. The Federal land banks and the national farm loan associations are authorized, upon request of the Land Bank Commissioner, to make available to him their services and facilities to aid in adminis 1019 81020 tering the provisions of this subchapter. (May 12, 1933, c. 25, § 34, 48 Stat. 49; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273.) Penalties for false representation in obtaining loan. Any person who shall knowingly make any material false representation for the purpose of obtaining any loan under this subchapter, or in assisting in obtaining any such loan, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than six months, or both. (May 12, 1933, c. 25, § 35, 48 Stat. 49.) SUBCHAPTER II-A.-FEDERAL FARM Establishment of corporation; directors; bylaws; regulations; officers and employees. There is hereby established a corporation to be known as the "Federal Farm Mortgage Corporation", in this subchapter referred to as the "corporation." The principal office of the corporation shall be located in the District of Columbia and the management of the corporation shall be vested in a board of directors consisting of the Secretary of the Treasury, or an officer of the Treasury designated by him, the Governor of the Farm Credit Administration, in this subchapter referred to as the "Governor", and the Land Bank Commissioner. The directors shall receive no additional compensation for their services as directors of the corporation, but may be allowed actual necessary traveling and subsistence expenses when engaged in the business of the corporation outside of the District of Columbia. The Governor shall be the chairman of the board of directors. The directors shall have power to adopt such bylaws, rules, regulations, and amendments thereto as they deem necessary for the conduct of the business of the corporation authorized under this subchapter. The directors shall have power, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States, to employ and fix the compensation and duties of such agents, officers, and employees of the corporation as may be necessary to carry out the powers and duties conferred upon the corporation by this subchapter, to require § 1020a § 1020b bonds of them and fix the penalties thereof and dismiss them at pleasure, and to prescribe the manner in which the obligations of the corporation shall be incurred and its expenses allowed and paid, but the rates of compensation of such agents, officers, and employees of the corporation shall not exceed the rates of compensation prescribed for comparable duties by chapter 13 of Title 5 [U. S. Code]. (Jan. 31, 1934, c. 7, § 1, 48 Stat. 344.) Period of succession; powers; free use of Authorization of Federal Farm Mortgage Corporation to act as Capital; amount; subscription by United § 1020c Bonds, aggregate amount; guaranty by United States; purchase and sale of by United States; exchange of for consolidated farm loan bonds.— With the approval of the Secretary of the Treasury, the corporation is authorized to issue and have outstanding at any one time bonds in an aggregate amount not exceeding $2,000,000,000. Such bonds shall be in such forms and denominations, shall have such maturities, shall bear such rates of interest, shall be subject to such terms and conditions, and shall be issued in such manner and sold at such prices, as may be prescribed by the corporation, with the approval of the Secretary of the Treasury. Such bonds shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof, and such bonds shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. In the event that the corporation shall be unable to pay upon demand, when due, the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to the holder the amount thereof which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such bonds. The Secretary of the Treasury, in his discretion, is authorized to purchase any bonds of the corporation issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities hereafter issued under sections 747, 752-754, 757, 758, 760, 764-766, 769, 771, 773, 774 (2), and 801 of Title 31 [U. S. Code], and the purposes for which securities may be issued under such sections are extended to include any purchases of the corporation's bonds hereunder. The Secretary of the Treasury may, at any time, sell any of the bonds of the corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of the bonds of the corporation shall be treated as public debt transactions of the United States. No such bonds, shall be issued in excess of the assets of the corporation, including the assets to be obtained from the proceeds of such bonds, but a failure to comply with this provision shall not invalidate the bonds or the guaranty of the § 1020d § 1020e same. The corporation shall have power to purchase such bonds in the open market at any time and at any price. On such terms and conditions as may be agreed upon, the corporation may exchange such bonds, upon application of any Federal land bank for consolidated farm loan bonds of equal face value issued under subchapter I of this chapter, and may exchange such consolidated farm loan bonds held by it for bonds of the corporation of equal face value. (Jan. 31, 1934, c. 7, § 4 (a), 48 Stat. 345; April 27, 1934, c. 168, § 14, 48 Stat. 647.) Purchase of consolidated farm loan bonds; loans to Federal and joint stock land banks; investment in mortgages; extensions.-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. (Jan. 31, 1934, c. 7, § 4 (b), 48 Stat. 346; Aug. 19, 1937, c. 704, §§ 2, 4, 50 Stat. 703.) Preparation of bonds.-In order to furnish bonds for delivery by the Federal Farm Mortgage Corporation, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provisions of this subchapter, as the board of directors may approve, such bonds when prepared to be held in the Treasury subject to |