banks to be loaned to its members shall, at the option of the bank, be in current funds or Federal Farm Mortgage Corporation bonds, or, at the option of the borrower, in farm loan bonds. (July 17, 1916, c. 245, § 12, 39 Stat. 370; Jan. 31, 1934, c. 7, § 7, 48 Stat. 346.)
Mortgages on farm lands under United States reclamation projects.-The term "first mortgages", as used in section 771 of this title, shall be construed to include mortgages on farm lands under United States reclamation projects, notwithstanding there may be against such lands a reserved or created lien in favor of the United States for construction or other charges as provided in sections 372, 381, 383, 391, 392, 411, 416, 419, 421, 431, 432, 434, 439, 461, 476, 491, 498 of Title 43 [U. S. Code], Public Lands, and acts amendatory thereof and supplementary thereto, known as the reclamation law: Provided, That such lands are otherwise eligible for loans under this subchapter: And provided further, That the amount and date of maturity of such lien shall be given due consideration in fixing the value of such lands for loan purposes. (May 15, 1922, c. 190, § 3, 42 Stat. 542.)
Loans on lands in drainage, irrigation, or conservancy districts.-The Farm Credit Administration, the Federal Farm Mortgage Corporation, the Federal land banks, the Land Bank Commissioner, and any lending or financing agency established by or under subchapters I, III, IV and V of this chapter, are authorized to make loans or acquire mortgages on lands in any drainage, irrigation, or conservancy district, notwithstanding the existence of any prior lien or charge arising out of an assessment for special benefits made by such district, in any case where (1) such land is otherwise eligible for a loan, (2) such assessment is payable over a period of years, and (3) reasonable security exists for the repayment of the loan, taking into consideration all facts and values, including the term and size of the loan, the integrity of the applicant, and the increased earning capacity of the lands arising from the improvements or benefits in respect of which the assessment was made. (June 4, 1936, c. 496, 49 Stat. 1461.)
POWERS OF FEDERAL LAND BANKS GENERALLY
Enumerated powers.-Every Federal land bank shall have power, subject to the limitations and requirements of this subchapter—
First. Issuing and selling farm loan bonds.-To issue, subject to the approval of the Farm Credit Administration, and to sell farm loan bonds of the kinds authorized in this subchapter, to buy the same for its own account, and to retire the same at or be- fore maturity. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 27, 1933, Ex. Or. 6084.)
Second. Investing funds in first farm mort- gages. To invest such funds as may be in its pos- session in the purchase of qualified first mortgages on farm lands situated within the farm credit dis- trict within which it is organized or for which it is acting. In order to reduce and/or refinance farm mortgages, to invest such funds as may be in its possession in the purchase of first mortgages on farm lands situated within the farm credit district within which it is organized or for which it is act- ing, or to exchange farm loan bonds for any duly re- corded first mortgages on farm lands executed prior to May 12, 1933, at a price which shall not exceed in each individual case the amount of the unpaid prin- cipal of the mortgage on the date of such purchase or exchange, or 50 per centum of the normal value of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined upon an appraisal made pursuant to this subchapter, whichever is the smaller: Provided, That any mortgagor whose mortgage is acquired by a Federal land bank under this paragraph shall be entitled to have his farm mortgage indebtedness re- financed in accordance with the provisions of sec- tions 711-723 and 731-734 of this title, on the basis of the amount paid by the bank for his mort- gage. (July 17, 1916, c. 245, § 13, 39 Stat. 372; May 12, 1933, c. 25, § 22, 48 Stat. 42; Aug. 19, 1937, c. 704, § 5 (a), 50 Stat. 704.)
Third. Receipt and deposit of mortgages as col- lateral for bonds; collection of moneys payable under mortgages and bonds.-To receive and to de- posit in trust with the farm loan registrar for the district, to be by him held as collateral security for farm loan bonds, first mortgages upon farm land qualified under section 771 of this title, and to em- power national farm loan associations, or duly au- thorized agents, to collect and immediately pay over to said land banks the dues, interest, amortization in-
stallments and other sums payable under the terms, conditions, and covenants of the mortgages and of the bonds secured thereby. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)
Fourth. Acquiring and disposing of property.- To acquire and dispose of—
(a) Such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be in part leased to others for revenue purposes.
(b) Parcels of land acquired in satisfaction of debts or purchased at sales under judgments, decrees, or mortgages held by it. But no such bank shall hold title and possession of any real estate purchased or acquired to secure any debt due to it, for a longer period than 5 years, except with the special approval of the Farm Credit Administration in writing. Every such bank may carry real estate as an asset, for a period of not exceeding 5 years, at its normal value but not to exceed the amount of the bank's investment therein at the time of acquirement of such real estate. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 3, 47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.)
Fifth. Depositing securities and funds with reserve banks. To deposit its securities and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)
Sixth. Receiving deposits from associations.-To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)
Seventh. Borrowing money.-To borrow money, to give security therefor, and to pay interest thereon. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)
Eighth. Buying and selling bonds of United States and Federal Farm Mortgage Corporation.To buy and sell United States bonds and Federal Farm Mortgage Corporation bonds. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Aug. 19, 1937, c. 704, § 15 (a), 50 Stat. 708.)
Ninth. Charging fees for loans.-To charge applicants for loans and borrowers, under rules and regulations promulgated by the Farm Credit Administration, reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by law in
the State where the land to be mortgaged is located may also be included in the preliminary costs of negotiating mortgage loans. The borrower may
pay such fees and charges or he may arrange with the Federal land bank making the loan to advance the same, in which case said expenses shall be made a part of the face of the loan and paid off in amor- tization payments. Such addition to the loan shall not be permitted to increase said loan above the limitations provided in section 771 of this title. (July 17, 1916. c. 245, § 13, 39 Stat. 372; Mar. 27, 1933, Ex. Or. 6084.)
Tenth. Extension of obligations unpaid under terms of mortgages.-When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. The sum of $25,000,000 of the amount authorized to be appro- priated under section 698 of this title shall be used exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this para- graph. The terms of any such extension shall be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension, or in the case of any deferment of principal as provided in paragraph "Twelfth" of section 771 of this title, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such peri- ods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by the bank with the approval of the Com- missioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscrip- tions to the paid-in surplus of the Federal land banks, there is hereby authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon pay-
ment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Land Bank Commissioner. The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Land Bank Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion the bank has resources available therefor. The unexpended balances of the funds appropriated by the Fourth Deficiency Act, fiscal year 1933, approved June 16, 1933 (48 Stat. 279), the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Stat. 1060), the Second Deficiency Appropriation Act, fiscal year 1935, approved August 12, 1935 (49 Stat. 592), the First Deficiency Appropriation Act, fiscal year 1936, approved June 22, 1936 [49 Stat. 1597], the Treasury Department Appropriation Act, 1937, approved June 23, 1936 [49 Stat. 1827], and the Treasury De- partment Appropriation Act, 1938, approved May 14, 1937 [50 Stat. 137], for the purpose of enabling the Secretary of the Treasury to make subscriptions to the paid-in surplus of the Federal land banks, as provided for in this paragraph, and the proceeds of all repayments on account of such paid-in surplus, shall be held in the Treasury of the United States as a revolving fund and shall be available for subscrip- tions to paid-in surplus made pursuant to this para- graph. (July 17, 1916, c. 245 § 13, 39 Stat. 372; Jan. 23, 1932, c. 9, § 5, 47 Stat. 14; May 12, 1933, c. 25, § 23, 48 Stat. 43; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273; Aug. 19, 1937, c. 704, § 19, 50 Stat. 709.) For interest rate on extended payments, see paragraph "Twelfth" of this section.
Eleventh. Postponement of payment of installments of loans. At any time within five years after March 4, 1933, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approval of such application by the directors of the bank postpone the payment of any unpaid installment or installments in the manner herein provided in this section. Such postponed payment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed payment, and, in the case of semiannual installments, by paying at the time each succeeding
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