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of directors may prescribe; fourth, to the payment
of 25 per centum of the amount then remaining
to the United States as a franchise tax; and, fifth,
to the payment of the remaining net earnings into
its surplus account. The amounts paid as franchise
taxes to the United States by Federal intermediate
credit banks shall, in the discretion of the Secre-
tary of the Treasury, be used to supplement the gold
reserve held against outstanding United States
notes, or shall be applied to the reduction of the
outstanding bonded indebtedness of the United
States under regulations to be prescribed by the
Secretary of the Treasury. Should a Federal in-
termediate credit bank be dissolved or go into liqui-
dation, after the payment of all debts and other ob-
ligations as hereinbefore provided, any surplus
remaining shall be paid to and become the property
of the United States and shall be similarly applied.
(July 17, 1916, c. 245, $ 206 (b); Mar. 4, 1923, c.
252, $ 2, 42 Stat. 1457; May 19, 1932, c. 191, § 3,
47 Stat. 159; Aug. 19, 1937, c. 704, 8 30, 50 Stat.
715.)

LIABILITY ON DEBENTURES OR OTHER SUCH

OBLIGATIONS

8 1081

§ 207

Liability of one bank for debentures issued by other banks; agreements by banks for transfer of funds for debenture payments.-Any Federal intermediate credit bank issuing debentures or other such obligations under this subchapter shall be primarily liable therefor, and shall also be liable, upon presentation of the coupons for interest payments due upon any such debentures or obligations issued by any other Federal intermediate credit bank and remaining unpaid in consequence of the default of the other Federal intermediate credit bank. Any Federal intermediate credit bank shall likewise be liable for such portion of the principal of debentures or obligations so issued as are not paid after the assets of such other Federal intermediate credit bank have been liquidated and distributed. Such losses, if any, either of interest or of principal, shall be assessed by the Farm Credit Administration against solvent Federal intermediate credit banks liable therefor in proportion to the amount of capital stock, surplus, and debentures or other such obligations which each may have outstanding at the time of such assessment. Every Federal intermediate credit bank shall, by appropriate action of its board of directors duly recorded in its minutes, obli

12 U. S.C.

FEDERAL INTERMEDIATE CREDIT BANKS

F. F, L. Act

gate itself to become liable on debentures and other
such obligations as provided in this section: Pro-
vided, That in view of the liability of all Federal in-
termediate credit banks for the debentures and other
such obligations of each bank under this chapter,
the banks shall, in accordance with rules, regula-
tions, and orders of the Farm Credit Administra-
tion, enter into adequate agreements and arrange-
ments among themselves by which funds shall be
transferred and/or made available from time to time
for the payment of all such debentures and other
such obligations and the interest thereon when due
in accordance with the terms thereof. (July 17,
1916, c. 245, 8 207; Mar. 4, 1923, c. 252, $ 2, 42 Stat.
1458; May 19, 1932, c. 191, § 4, 47 Stat. 159; Mar. 27,
1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board” pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

EXAMINATIONS AND REPORTS

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Reports of condition of banks and other lend- $ 208(a) ing institutions rediscounting with credit banks; examinations and audits of credit banks.-In order to enable each Federal intermediate credit bank to carry out the purpose of this subchapter, the Comptroller of the Currency is hereby authorized and directed, upon the request of any Federal intermediate credit bank, (1) to furnish for the confidential use of such bank such reports, records, and other information, as he may have available, relating to the financial condition of national banks through or for which the Federal intermediate credit bank has made or contemplates making discounts, and (2) to make through his examiners, for the confidential use of the Federal intermediate credit bank, examinations of organizations through or for which the Federal intermediate credit bank has made or contemplates making discounts or loans: Provided, That no such examination shall be made without the consent of such organization except where such examination is required by law: Provided, That any organization, except State banks, trust companies, and savings associations, shall, as a condition precedent to securing rediscount privileges with the Federal intermediate credit bank of its district, file with such bank its written consent to its examination as may be directed by the Farm Credit Administration by farm credit examiners; and State banks, trust companies, and savings associations may be in like manner re

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quired to file their written consent that reports of
their examination by constituted authorities may be
furnished by such authorities upon request to the
Federal intermediate credit bank of their district.
Each Federal intermediate credit bank shall be ex-
amined and audited at least once each year by the
Farm Credit Administration, and the results of
such examination and audit shall be made public
by the administration. (July 17, 1916, c. 245, § 208
(a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Mar.
27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 20,
50 Stat. 710.)

"Farm Credit Administration" and "administration" mentioned
in the text were substituted for "Federal Farm Loan Board" and
"board," respectively, pursuant to the Executive Order cited
thereto, which is set out in full at the beginning of this chapter.

8 1092

Submission and publication of reports of con- 8 208(b) dition by banks. Every Federal intermediate credit bank shall make to the Farm Credit Administration not less than three reports during each year as requested by the administration and according to the form which may be prescribed by the administration, verified by the oath or affirmation of the president, or secretary, or treasurer, of each Federal intermediate credit bank and attested by the signature of at least three of the directors. Each report shall exhibit, in detail and under appropriate heads, the resources and liabilities of the Federal intermediate credit bank at the close of business on any past day specified by the Farm Credit Administration within five days from the receipt of a request or requisition therefor from the administration, and in the same form in which it is made to the Farm Credit Administration shall be published in a newspaper published in the place where such Federal intermediate credit bank is established, or if there is no newspaper in the place, then in the one published nearest thereto, in the same county, at the expense of the bank; and such proof of publication shall be furnished as may be required by the Farm Credit Administration. The Farm Credit Administration shall also have power to call for special reports from any particular Federal intermediate credit bank whenever in its judgment the same are necessary for a full and complete knowledge of its condition. (July 17, 1916, c. 245, $ 208 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration” and “administration" mentioned in the text were substituted for "Federal Farm Loan Board" and “poard,” respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

$ 1093

Investigations and reports by land bank ap- 8 208(c) praisers and examiners for credit banks.- Land bank appraisers are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to investigate and make a written report upon the products covered by warehouse receipts or shipping documents, and the livestock covered by mortgages, which are security for notes or other such obligations representing any loan to any organization, under this subchapter. Farm credit examiners are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to examine and make a written report upon the condition of any organization, except national banks, to which the Federal intermediate credit bank contemplates making any such loan. (July 17, 1916, c. 245, $ 208 (c); Mar. 4, 1923, c. 252, 8 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 20, 50 Stat. 710.)

“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(b)

$ 1094

Cost of examinations; assessments against or- $ 208(d) ganizations investigated.The Farm Credit Administration shall assess the cost of all examinations made by the examiners of the administration under the provisions of this subchapter upon the bank, trust company, savings institution, or organization investigated, in accordance with the regulations to be prescribed by the administration. (July 17, 1916, C. 245, § 208 (d); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration” and “administration” mentioned in the text were substituted for "Federal Farm Loan Board” and "board," respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

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Reports on condition of institutions receiving $ 208(e) loans or deposits.--The executive departments, boards, commissions, and independent establishments of the Government, the Reconstruction Finance Corporation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Reserve banks are severally authorized under such conditions as they may prescribe, upon the request of the Farm Credit Administration to make available to the Farm Credit Administration or any district bank or district

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corporation operating under its supervision, in con-
fidence, all reports, records or other information
they may have relating to the condition of any in-
stitution to which the Administration, such district
bank, or corporation has made or contemplates mak-
ing loans or for which it has discounted or con-
templates discounting paper, or which it is using or
contemplates using as a custodian of securities or
other credit instruments, or as a depositary. (July
17, 1916, c. 245, § 208 (e); June 3, 1935, c. 164,
$ 8, 49 Stat. 316; Aug. 23, 1935, c. 614, $ 203 (a),
49 Štat. 704; Aug. 19, 1937, c. 704, § 31, 50 Stat. 716.)

§ 203(a) of the Act of Aug. 23, 1935, cited to the text,
changed the name of the Federal Reserve Board to "Board of
Governors of the Federal Reserve System."

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$ 1101

Authority of Farm Credit Administration.- $ 209 The Farm Credit Administration is authorized to make such rules and regulations, not inconsistent with law, as it deems necessary for the efficient execution of the provisions of this subchapter. (July 17, 1916, c. 245, $ 209; Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1459; 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.

TAX EXEMPTION

8 1111

$ 210

Capital and income; debentures instrumentalities of Government. The privileges of tax exemption accorded under section 931 of this title shall apply also to each Federal intermediate credit bank, including its capital, reserve, or surplus, and the income derived therefrom, and the debentures issued under this subchapter shall be deemed and held to be instrumentalities of the Government and shall enjoy the same tax exemptions as are accorded farm loan bonds in said section. (July 17, 1916, c. 245, $ 210; Mar. 4, 1923, c. 252, § 2, 42 Stat. 1459.)

PENALTY PROVISIONS

$ 1121

Offenses by officers, employees, or agents; em- $ 211(a) bezzlement; misapplication of funds; unauthorized making, issuing, or assigning instruments; false entries.-Any officer, director, agent, or em

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