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§ 1021

81022

(c) Expenditures for printing and binding necessary in carrying out the provisions of this subchapter may be made without regard to the provisions of section 5 of title 41 [U. S. Code]. (Jan. 29, 1937, c. 7, § 7, 50 Stat. 7.)

SUBCHAPTER III-FEDERAL INTERMEDI-
ATE CREDIT BANKS

HISTORICAL NOTE

The provisions of this subchapter relative to Federal intermediate credit banks constitute Title II of the "Federal Farm Loan Act" (July 17, 1916, chapter 245, Thirty-ninth Statutes, page 360). See section 641 of this chapter. This Act was amended on March 4, 1923 (chapter 252, Forty-second Statutes, page 1454), by the addition of a second title relative to Federal intermediate credit banks, the provisions of which, as amended, are included in this subchapter. The office of Intermediate Credit Commissioner was created by the act of June 16, 1933. (See section 638, under "Introductory," at the beginning of this chapter.)

ORGANIZATION

Number, names, and charters of banks.-The § 201 (a) Farm Credit Administration shall have power to grant charters for twelve institutions to be known and styled as "Federal Intermediate Credit Banks." (July 17, 1916, c. 245, § 201 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; 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.

Location; directors; officers and employees.- § 201 (b) One such institution shall be established in each farm credit district in the same city as the Federal land bank of the district. The members of the several farm credit boards of the farm credit districts provided for in section 640a of this title shall be ex officio the directors of the several Federal intermediate credit banks provided for in this subchapter and shall have power, subject to the approval of the Farm Credit Administration, to employ and fix the compensation of such officers and employees of such Federal intermediate credit banks as may be necessary to carry on the business authorized by this subchapter. (July 17, 1916, c. 245, § 201 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; June 16, 1933, c. 98, § 76 (a), 48 Stat. 271; Aug. 19, 1937, c. 704, § 10, 50 Stat. 707.)

Person convicted of felony or adjudged liable in damages for fraud ineligible to be administrative or executive official of Federal intermediate credit bank, see 8 640i of this title.

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§ 1024

§ 1025

Corporate powers; suits by or against. Each § 201(c) Federal intermediate credit bank shall have all the usual powers of corporations, and shall have power to sue and be sued both in law and equity, and for purposes of jurisdiction shall be deemed a citizen of the State where it is located. Each Federal intermediate credit bank shall have power to acquire and dispose of such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be leased to others for revenue purposes. (July 17, 1916, c. 245, § 201 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; Aug. 19, 1937, c. 704, § 26, 50 Stat. 715.)

Fiscal agents for United States.-Federal in- § 201 (d) termediate credit banks, when designated for that purpose by the Secretary of the Treasury, shall act as fiscal agents of the United States Government and perform such duties as shall be prescribed by the Secretary of the Treasury. (July 17, 1916, c. 245, § 201 (d); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454.)

Insolvency; receivership. Upon default of any § 201(e) obligation any Federal intermediate credit bank may be declared insolvent and placed in the hands. of a receiver by the Farm Credit Administration, and proceedings shall thereupon be had in accordance with the provisions of sections 961-966 of this title regarding national farm loan associations. (July 17, 1916, c. 245, § 201 (e); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; 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.

§ 1026

Application for charter. The charters to such § 201(f) Federal intermediate credit banks shall be granted upon application of the directors of the Federal land banks, which application shall be in such form as the Farm Credit Administration shall prescribe. (July 17, 1916, c. 245, § 201 (f); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; 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 1031

DISCOUNTS AND LOANS

Lending powers; purchase and sale of deben- § 202 (a) tures of intermediate credit banks; loans to cooperative associations. Federal intermediate credit banks, when chartered and established, shall have power, subject solely to such restrictions, limitations, and conditions as may be imposed by the Farm Credit Administration not inconsistent with the provisions of this subchapter

(1) To discount for, or purchase from, any national bank, and/or any State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, cooperative bank, credit union, cooperative association of agricultural producers, organized under the laws of any State or of the Government of the United States, and/or any other Federal intermediate credit bank, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation the proceeds of which have been advanced or used in the first instance for any agricultural purpose or for the raising, breeding, fattening, or marketing of livestock; and to make loans or advances direct to any such organization, secured by such obligations; and to discount for, or purchase from, any production credit association or bank for cooperatives organized under subchapters IV and V of this chapter, or any production credit association in which a Production Credit Corporation organized under such subchapter IV holds stock, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation presented by such association or bank, and to make loans and advances direct to any such association or bank secured by such collateral as may be approved by the Governor of the Farm Credit Administration;

(2) To buy or sell, with or without recourse, debentures issued by any other Federal intermediate credit bank: and

(3) To make loans or advances direct to any cooperative association organized under the laws of any State and composed of persons engaged in producing, or producing and marketing, staple agricultural products, or livestock, if the notes or other such obligations representing such loans are secured by warehouse receipts, and/or shipping documents covering such products, and/or mortgages on livestock, and/or such other collateral as may be approved by the Governor of the Farm Credit Administration: Provided, That no such loan or advance, when secured only by warehouse receipts and/or

shipping documents, and/or mortgages on livestock,
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, at such rates of com-
mission as may be approved by the Governor of the
Farm Credit Administration. (July 17, 1916, c. 245,
§ 202 (a); Mar. 4 1923, c. 252, § 2, 42 Stat. 1455;
Mar. 4, 1925, c. 524, § 7, 43 Stat. 1264; 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; June 3, 1935, c.
164, § 5 (a), (b), 49 Stat. 315.)

"Farm Credit Administration," mentioned in the text the first
and third times, 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.

$ 1032

Purchase or discount of paper from or for § 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

§ 1033

1031, to incur any additional indebtedness, if by vir-
tue of such additional indebtedness its aggregate
liabilities, direct or contingent, will exceed the limi-
tations herein contained. (July 17, 1916, c. 245, §
202 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1455.)

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, § 2, 42 Stat. 1455; June 26, 1930, c. 616, § 2, 46 Stat. 816.)

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§ 1040

§ 1041

ISSUE OF DEBENTURES

"Debentures" defined.-The terms "debenture"
and "debentures", when used in any Act of Congress,
whenever enacted, except the Federal Farm Loan Act
[July 17, 1916, c. 245, 39 Stat. 360]*, relating to
the purchase, sale, or use as security, of debentures
issued by or for the benefit and account of any Fed-
eral intermediate credit bank or banks, shall be
deemed to mean debentures issued by any such bank
individually and consolidated debentures issued by
such banks acting together. (Aug. 19, 1937, c. 704,
§ 39, 50 Stat. 718.)

Collateral trust debentures or similar obliga- § 203 (a) tions; security for; maturity; limitation respecting amount.-Federal intermediate credit banks 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, United States Government bonds, Federal Farm Mortgage Corporation bonds, or notes or other such obligations discounted or purchased or representing loans made under section 1031: Provided, That the aggregate amount of the outstanding debentures and similar obligations issued individually by any

*See Subchapter I of this chapter.

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