§ 1131i REVOLVING FUND Revolving fund.-(a) There is hereby created a revolving fund of not to exceed $120,000,000 which shall be made up as follows: (1) The Reconstruction Finance Corporation is authorized and directed to make available to the Governor of the Farm Credit Administration all unobligated balances of the following funds and all sums heretofore returned or released to the corporation from such funds: (A) Any balances of funds for, and all collections on loans by, the Secretary of Agriculture pursuant to section 602 of Title 15; (B) All collections on loans made or to be made pursuant to the Act of February 4, 1933 (Public Numbered 327, Seventy-second Congress); (C) All balances of funds authorized and directed to be made available to the Secretary of Agriculture by such act and not used for loans pursuant thereto; and (D) Any balances of the funds originally directed to be allocated and made available to the Secretary of Agriculture by such acts except as expended pursuant to section 1148 of this title. (2) There are hereby made available to the Governor of the Farm Credit Administration all unobligated balances of appropriations and funds available thereunder to enable the Secretary of Agriculture to make advances or loans under the following Acts and resolutions, and all repayments of such advances and loans: March 3, 1921 (41 Stat. 1347), March 20, 1922 (42 Stat. 467), April 26, 1924 (43 Stat. 110), February 28, 1927 (44 Stat. 1251), February 25, 1929 (45 Stat. 1306), as amended May 17, 1929 (46 Stat. 3), March 3, 1930 (46 Stat. 78, 79), December 20, 1930 (46 Stat. 1032), as amended February 14, 1931 (46 Stat. 1160), and February 23, 1931 (46 Stat. 1276), and Public Resolution Numbered 11, Seventy-second Congress, approved March 3, 1932, and the notes or other obligations evidencing such advances and loans and the security therefor are hereby transferred to the Governor of the Farm Credit Administration. (3) There is hereby authorized to be appropriated the sum of $40,000,000 out of any money in the Treasury not otherwise appropriated. (b) There is hereby authorized to be appropriated the sum of $2,000,000, which shall remain available until expended, for all necessary administrative expenses in connection with the establishment and § 1131j supervision of the Production Credit Corporations and the Production Credit Associations. (c) The authority of the Governor of the Farm Credit Administration to allocate and expend out of the funds covered by subsection (a) of this section such amounts as he shall deem necessary for salaries, expenses, and all other administrative expenditures in the execution of the functions for which such funds have hitherto been available shall not be deemed to be restricted by this section. (d) The authority to make loans during the calendar year 1933 pursuant to the Act of February 4, 1933 (Public Numbered 327, Seventy-second Congress), as amended, out of funds made available by that Act shall not be deemed to be restricted by this section. (e) The amount of all balances, collections, and appropriations allocated under subsection (a) to the revolving fund created thereunder, which is in excess of $120,000,000, is hereby made available to the Governor of the Farm Credit Administration for the establishment of a revolving fund of not to exceed $40,000,000. Out of such revolving fund, the Governor is authorized to allocate and, with the approval of the Secretary of the Treasury, to expend such amounts as he deems necessary for subscriptions to the capital stock and/or paid-in surplus of Federal Intermediate Credit Banks. (June 16, 1933, c. 98, § 5, 48 Stat. 258; Jan. 31, 1934, c. 7, §§ 14, 15 (a), 48 Stat. 348.) Loans to oyster planters; purchase and discounting paper by Federal intermediate credit banks. Subject to the approval of the Governor of the Farm Credit Administration and under rules and regulations to be prescribed by the Production Credit Commissioner, production credit associations organized under this subchapter are authorized to make loans to oyster planters; to sell, discount, assign, or otherwise dispose of any loans made by them under the provisions of this section; and to do any and all other things necessary to carry these provisions into effect. With the approval of the Governor of the Farm Credit Administration and under rules and regulations to be prescribed by the Intermediate Credit Commissioner, the Federal Intermediate Credit Banks are authorized and empowered to discount for or purchase from any production credit association any note, draft, or other such obligation representing a loan or loans made § 1134 under the provisions of this section; and to make loans or advances direct to any such organization secured by such obligations. (June 18, 1934, c. 574, 48 Stat. 983; June 3, 1935, c. 164, § 17 (c), 49 Stat. 318.) SUBCHAPTER V.-REGIONAL BANKS FOR FOR COOPERATIVES* REGIONAL BANKS Establishment; number; location.-The Governor of the Farm Credit Administration, hereinafter in this subchapter and in subchapter VI referred to as the "governor", is authorized and directed to organize and charter twelve banks to be known as "Banks for Cooperatives." One such bank shall be established in each farm credit district in the city in which there is located a Federal land bank. 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 respective banks for cooperatives. 'Such directors shall have power, subject to the approval of the governor, to employ and fix the compensation of such officers and employees of such banks as may be necessary to carry out the powers and duties conferred upon such banks under this subchapter and subchapter VI. (June 16, 1933, c. 98, § 2, 48 Stat. 257; Aug. 19, 1937, c. 704, § 11, 50 Stat. 708.) Organization of Production Credit Corporations, see § 1131. Person convicted of felony or adjudged liable in damages for fraud ineligible to be administrative or executive official of Bank for Cooperatives, see § 640i of this title. § 1134a Charters and bylaws. The charters of the Banks for Cooperatives shall be granted by the governor upon application of the directors of the Federal land bank of the proper district, and applications and charters shall be in such form as the governor shall prescribe. The directors shall have power, subject to the approval of the governor, to adopt such bylaws as may be necessary for the conduct of the business of the banks. (June 16, 1933, c. 98, § 3, 48 Stat. 257.) Charters of Production Credit Corporations, see § 1131a. *See also subchapter VI. § 1134b § 1134c Capital stock; amount; value of shares; payments from revolving fund for stock purchased by Government.-The capital stock of each Bank for Cooperatives established under section 1134 shall be in such amount as the governor determines is required for the purpose of meeting the credit needs of eligible borrowers from the bank under this subchapter, and such amount 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. Out of the revolving fund created under section 1141d of this title, the governor, on behalf of the United States, shall make payments for stock in the banks and such payments shall be subject to call in whole or in part by the board of directors of the bank with the approval of the governor. (June 16, 1933, c. 98, § 40, 48 Stat. 264.) Lending power.-Subject to such terms and conditions as may be prescribed by the Farm Credit Administration, the banks for cooperatives are authorized (a) to make loans to cooperative associations as defined in subchapter VII of this chapter, for any of the purposes and subject to the conditions and limitations set forth in such subchapter; (b) to make loans (by way of discount or otherwise) to any bank organized under this subchapter; (c) to buy from, and sell to, any such bank or any Federal intermediate credit bank any note, draft, bill of exchange, debenture, or other obligation, or any interest therein; and (d) to borrow from, and discount or rediscount paper with, any and all such banks and commercial banks. (June 16, 1933, c. 98, § 41, 48 Stat. 264; June 3, 1935, c. 164, § 14, 49 Stat. 316; Aug. 19, 1937, c. 704, § 36, 50 Stat. 717.) Lending power of Central Bank, see $1134j. Loans on lands in drainage, irrigation, or conservancy districts, see § 773a of this title. § 1134d Ownership of stock in banks by borrowing associations; earnings and reserves of banks. The provisions of sections 1134k and 11341 of this title shall apply in the case of Banks for Cooperatives in the same manner and to the same extent as such provisions are applicable to the Central Bank for Cooperatives, except that powers conferred on the chairman of the board of the Central Bank shall be exercised by the boards of directors of the Banks for Cooperatives, subject to the approval of the governor. (June 16, 1933, c. 98, § 42, 48 Stat. 264.) § 1134e Retirement of stock held by Government.-The governor may at any time require any such bank to retire and cancel stock held by the governor in such bank, if, in the judgment of the governor, the bank has resources available therefor, and amounts received by the governor in any such case shall be credited to the revolving fund created under section 1141d of this title. (June 16, 1933, c. 98, § 43, 48 Stat. 265.) § 1134f § 1134g CENTRAL BANK Establishment; location.-The governor is authorized and directed to organize and charter a corporation to be known as the "Central Bank for Cooperatives" with its principal office in the District of Columbia and such other offices as in the opinion of the governor may be necessary. (June 16, 1933, c. 98, § 30, 48 Stat. 261.) Board of directors.-(a) The board of directors of the Central Bank for Cooperatives shall consist of seven members, one of whom shall be the Cooperative Bank Commissioner of the Farm Credit Administration, who shall be chairman of the board of directors. The other six directors shall be appointed by the governor, of whom the successors of three first appointed shall be appointed from nominees selected by borrowers as provided in subsection (b). The terms of the directors first appointed shall be for one, two, and three years as designated by the governor at the time of appointment and their successors shall hold their offices during a term of three years, but a director appointed to fill a vacancy shall hold his office for the unexpired term of the director whose place he is selected to fill. Any appointed director may at any time be removed for cause by the governor. No compensation shall be paid any director as a director of the corporation but the corporation, subject to the approval of the governor, may allow directors a reasonable per diem and expenses. (b) The successors of three of the directors first appointed shall be selected one each year by the governor from among individuals nominated by borrowers (except Banks for Cooperatives). The governor shall, not less than sixty days prior to the end of the term of any director whose successor is to be appointed from among nominees as herein provided, |