Federal intermediate credit bank, together with the "Farm Credit Administration" mentioned in the text was sub- § 1042 § 1043 Applicability of provisions of subchapter I; § 203 (b) regulations governing collateral and handling thereof; interest rates. The provisions of subchapter I of this chapter relating to the preparation and issue of farm loan bonds shall, so far as applicable, govern the preparation and issue of debentures or other such obligations issued under section 1041 of this title; but the Farm Credit Administration shall prescribe rules and regulations governing the receipt, custody, substitution, and release of the cash, obligations of the United States Government, and notes or other obligations securing such debentures, the right of substitution being hereby granted, and in the event such notes or other obligations are secured by warehouse receipts, shipping documents, or other similar credit instruments, may permit the substitution of trust receipts therefor in such manner and subject to such conditions as may be approved by the said Administration. Rates of interest upon debentures and other such obligations issued under section 1041 of this title shall, subject to the approval of the Farm Credit Administration, be fixed by the Federal intermediate credit bank making the issue, not exceeding 6 per centum per annum. (July 17, 1916, c. 245, § 203 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 28, 50 Stat. 715.) Assumption of liability by Government pro- § 203 (c) hibited; recital necessary to be included. The United States Government shall assume no liability, direct or indirect, for any debentures or other obligations issued under section 1041 of this title, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form and substance by the Farm Credit Administration and approved by the Secre tary of the Treasury, clearly indicating that no such "Farm Credit Administration" mentioned in the text was sub- § 1044 § 1045 § 1051 Consolidated debentures; authority of inter- § 203 (d) mediate credit banks to issue and sell. Whenever it shall appear desirable to issue consolidated debentures of the twelve Federal intermediate credit banks and to sell them through a common selling agency, and the Federal intermediate credit banks shall, by resolutions, consent to the same, the banks may issue and sell said debentures subject to the provisions of sections 1041-1045 of this title, and the provisions of sections 871-886 of this title, insofar as applicable. As used in this subchapter, the term "debentures" includes such consolidated debentures. (July 17, 1916, c. 245, § 203 (d); June 3, 1935, c. 164, § 6 (b), 49 Stat. 315.) Investment of fiduciary and trust funds in de- § 203(e) bentures of intermediate credit banks; security for public deposits.-All debentures issued by Federal intermediate credit banks 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 of any officer or officers thereof. (July 17, 1916, c. 245, § 203 (e); June 3, 1935, c. 164, § 6 (b), 49 Stat. 316.) DISCOUNT RATES Establishment of and approval of; limitations § 204 (a) on.-Any Federal intermediate credit bank may, with the approval of the Intermediate Credit Commissioner, from time to time establish rates of discount and interest which, except with the approval of the Governor of the Farm Credit Administration, shall not exceed by more than 1 per centum per annum the rate borne by the last preceding issue of debentures which it issued or in which it participated. Any Federal intermediate credit bank may be required by the Governor of the Farm Credit Administration to acquire, upon such terms as he § 1052 may approve, loans and/or discounts of any other Limitation on interest rate charged original § 204 (b) borrower on paper discounted with bank. No organization entitled to the privileges of this subchapter, shall, without the approval of the Farm Credit Administration, be allowed to discount with any Federal intermediate credit bank any note or other obligation, upon which the original borrower has been charged a rate of interest exceeding by more than 12 per centum per annum the discount rate of the Federal intermediate credit bank at the time such loan was made. (July 17, 1916, c. 245, § 204 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; 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. § 1053 Purchase by bank of debentures issued by it.—§ 204 (c) Subject to the approval of the Farm Credit Administration, a Federal intermediate credit bank may buy for its own account any debentures or similar obligations issued by or for the benefit and account of such bank or other Federal intermediate credit bank or banks, and (1) hold until maturity any such debentures or similar obligations or (2) retire before maturity any such debentures or similar obligations issued by it or for its benefit and account. (July 17, 1916, c. 245, § 204 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 29, 50 Stat. 715.) 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. § 1061 CAPITAL STOCK Amount, shares; subscriptions to by United States; assessments against other banks to restore capital impairment of one bank.-(a) For the purpose of exercising the powers conferred by this subchapter, each Federal intermediate credit bank shall have a subscribed capital stock of $5, § 205 § 1061 000,000, which amount may be increased from time (b) In the event that there shall be an impairment of the paid-in capital of any Federal intermediate credit bank, the Farm Credit Administration, at such time or times as it deems advisable, may determine and assess the amount thereof against the other Federal intermediate credit banks on such equitable basis of apportionment as it shall prescribe. Each bank against which such an assessment is made shall, out of its surplus and/or to an extent up to 50 per centum of its net earnings, in accordance with the terms of such assessment, pay the amount thereof as soon as possible to the bank having the impairment. In such event payments into the surplus fund and payments of the franchise tax prescribed by this chapter shall be determined on the basis of the net earnings remaining after providing for the payment of any such assessment. (c) With the approval of the Secretary of the Treasury, the Governor of the Farm Credit Administration is hereby authorized to subscribe from time to time to the capital stock and/or paid-in surplus of any Federal intermediate credit bank on behalf of the United States, in such amounts as he may determine are necessary for the purpose of meeting the credit needs of eligible borrowers from the bank, and the amount of the capital stock and paid-in surplus of such bank 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 and subscriptions to such paid-in surplus shall be made in multiples of $100 out of the revolving fund created under subsection (e) of section 1131i of this title. The Governor on behalf of the United States shall make § 205 payment for stock and paid-in surplus of such "Farm Credit Administration" mentioned in the text was sub- § 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 title. See also § 1094, below, for assessment of examination costs. § 1072 Net earnings; surplus fund; franchise tax; § 206 (b) disposition by United States of sums received from net earnings of banks and from surplus remaining after liquidation of banks. Subject only to review and approval by the Farm Credit Administration, each Federal intermediate credit bank, at the end of its fiscal year, after all its necessary expenses and costs of operation for such fiscal year have been paid or provided for, shall apply its net earnings then remaining, first, to making up any losses in excess of its reserves against unforeseen losses and assets of doubtful value; second, to the elimination of any impairment of its paid-in capital and paid-in surplus; third, to the creation and maintenance of reserves against unforeseen losses and assets of doubtful value in such amount as its board |