LAND BANK COMMISSIONER LOANS

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

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.)

§ 1018

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

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.)

$ 1019

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

MORTGAGE CORPORATION

% 1020

tion.'

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 "corpora

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

bonds of them and fix the penalties thereof and
dismiss them at pleasure, and to prescribe the man-
ner 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.)

$ 1020a Period of succession; powers; free use of

mails; use of Government facilities. The cor-
poration shall have succession until dissolved by
Act of Congress; shall have power to sue and be
sued in any court, to adopt and use a corporate seal,
to make contracts, and to acquire, hold, and dispose
of real and personal property necessary and inci-
dent to the conduct of its business; and shall have
such other powers as may be necessary and inci-
dent to carrying out its powers and duties under
this subchapter. The corporation shall be entitled
to the free use of the United States mails in the
same manner as the executive departments of the
Government. The corporation, with the consent of
any board, commission, independent establishment,
or executive department of the Government, may
avail itself of the use of information, services, fa-
cilities, officers, agents, and employees thereof, in
carrying out the provisions of this subchapter.
(Jan. 31, 1934, c. 7, § 2, 48 Stat. 345.)

Authorization of Federal Farm Mortgage Corporation to act as
fiscal agent of the United States, see 1138b of this title.

Penalty provisions applicable to transa' tions of Federal Farm
Mortgage Corporation, see § 1138d of this title.

§ 1020b

Capital; amount; subscription by United States. 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, th 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. (Jan. 31, 1934, c. 1, § 3, 48 Stat. 345.)

8 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 out-
standing 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 in-
terest, 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 princi-
pal of, or interest on, sich bonds, the Secretary of :
the Treasury shall pay to the holder the amount
thereof which is hereby authorized to be appropri-
ated, out of any moneys in the Treasury not other-
wise 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 dis-
cretion, 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 sec-
tions 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 sec-
tion. All redemptions, purchases, and sales by the
Secretary of the Treasury of the bonds of the corpo-
ration 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

same. The corporation shall have power to pur, chase 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.)

§ 1020d

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.)

§ 1020e 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