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$ 781

§ 13

semiannual installment is due, one-twentieth of the
postponed payment, until the amount of such post-
poned payment has been paid. In any case in which
the number of remaining installments due on the
mortgage is less than ten, in the case of annual in-
stallments, or less than twenty, in the case of semi-
annual installments, the amount of the postponed
payment shall be distributed proportionately over
the remaining number of installment payments.
(July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4,
1933, c. 270, $ 4, 47 Stat. 1548.)

Twelfth. Interest rate; on extended payments; on
taxes, liens, etc., paid by mortgagee.-For the period
of five years after March 4, 1933, every borrower
shall pay simple interest on extended payments at
the same rate of interest as stipulated in the mort-
gage securing the loan as to payments not in default
and by express covenant in his mortgage deed shall
undertake to pay when due all taxes, liens, judg-
ments, or assessments which may be lawfully as-
sessed against the land mortgaged. Taxes, liens,
judgments, or assessments not paid when due, and
paid by the mortgagee, shall become a part of the
mortgage debt and shall bear interest at the rate
provided in the mortgage. (July 17, 1916, C. 245, $
13, 39 Stat. 372; Mar. 4, 1933, c. 270, $ 4, 47 Stat.
1548.)

Thirteenth. Reamortization of mortgages.-When in the judgment of the directors conditions justify it, and with the approval of the Farm Credit Administration, to reamortize, in whole or in part, the aggregate amount remaining unpaid under the terms of any mortgage, and to accept payment of such aggregate amount on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable on the mortgage, and in addition thereto such amounts to be applied upon the principal as will extinguish the debt within an agreed period of not more than forty years from the date of the reamortization; to deposit such mortgages with the farm loan registrar as collateral security for farm loan bonds at an amount not exceeding the principal of the original loan remaining unpaid at the date of such amortization; and with the approval of the Farm Credit Administration to charge the borrower an amount not to exceed the actual cost incurred in connection with such reamortization. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Mar. 4, 1933, c. 270, $ 4, 47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.)

§ 781

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Fourteenth. Agreements to share gains and losses with associations.—To enter into agreements with national farm loan associations of the district under the terms of which losses incurred and gains realized on account of the disposition of lands covered by a defaulted mortgage indorsed by such association will be shared equally by the bank and the association. (July 17, 1916, c. 245, $ 13, 39 Stat. 372, June 16, 1933, c. 98, $ 79, 48 Stat. 272.)

Fifteenth. Exchange for Federal Farm Mortgage Corporation bonds.--Tó exchange farm loan bonds for Federal Farm Mortgage Corporation bonds of equal face value. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Jan. 31, 1934, c. 7, § 8 (a), 48 Stat. 347; Aug. 19, 1937, c. 704, § 15 (b), 50 Stat. 708.)

Sixteenth. Exchange of Federal Farm Mortgage Corporation bonds for farm loan bonds.To exchange Federal Farm Mortgage Corporation bonds for farm loan bonds of equal face value. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Jan. 31, 1934, c. 7, § 8. (a), 48 Stat. 347.)

Seventeenth. Loans to other Federal land banks.To make loans to other Federal land banks upon such terms and conditions as may be approved by the Farm Credit Administration. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Aug. 19, 1937, c. 704, $ 16, 50 Stat. 708.)

Eighteenth. Accepting conditional_payments for subsequent credit on indebtedness.—To accept conditional payments from borrowers for subsequent credit upon their indebtedness to the land bank; and to allow interest on such payments. All conditional payments so accepted shall be subject to such terms and conditions, not inconsistent with the provisions of this paragraph and with any rules or regulations prescribed for its efficient execution by the Farm Credit Administration, as may be agreed upon at the time of their acceptance. "If a conditional payment is accepted for subsequent credit upon a first mortgage which is at the time or is thereafter pledged as collateral security for an issue of farm-loan bonds, all requirements, conditions, and limitations set forth in sections 897– 899 of this title shall apply to such payment the same as though it were a present payment on the principal of the mortgage pledged as collateral security, and the land bank shall forth with notify the farm loan registrar of its receipt of such payment and account to him therefor. Every conditional payment accepted by a land bank for subsequent

credit upon indebtedness of a borrower shall be credited upon such indebtedness as the borrower may from time to time direct in accordance with the terms and conditions upon which the payment has been accepted, and at the option of the bank may in any event be credited upon such indebtedness as and when it matures if it is not otherwise paid by the borrower at or before maturity. If at any time after five years from the date on which a borrower's loan was made, the aggregate of the borrower's conditional payments accepted on account of his indebtedness under such loan and not yet credited thereon equals or exceeds his total indebtedness under the loan, all unmatured indebtedness under such loan shall become due and payable at once, and the payments so accepted shall forth with be credited upon the borrower's indebtedness under the loan so far as may be necessary to pay it in full. Any balances of conditional payments remaining uncredited when the indebtedness on account of which they have been accepted has been paid in full shall be refunded to the borrower by the land bank. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Aug. 19, 1937, c. 701, 17, 50 Stat. 708.)

“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.

Federal land banks authorized to make their services and facilities available to Land Bank Commissioner to aid in administering subchapter II of this chapter. See $ 1018 of this title.

RESTRICTIONS ON FEDERAL LAND BANKS

$ 791

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Enumeration of restrictions.- No Federal land bank shall have power

First. Limiting deposits. To accept deposits of current funds payable upon demand except from its own stockholders, or to transact any banking or other business not expressly authorized by the provisions of this subchapter. (July 17, 1916, c. 245, § 14, 39 Stat. 372.)

Second. Loaning on first mortgages except through associations. To loan on first mortgage except through national farm loan associations as provided in sections 711-722 and sections 731-734 of this title [secs. 7 and 8 of the Federal Farm Loan Act, as amended], or through agents as provided in sections 801-808 of this title, or direct to borrowers as provided in section 723. (July 17, 1916, c. 245, $ 14, 39 Stat, 372; Mar. 4, 1933, c. 270, $ 5 (a), 47 Stat. 1549.)

Third. Accepting other than first mortgages.-
To accept any mortgages on real estate except first
mortgages created subject to all limitations im-
posed by sections 771–773 of this title, and those
taken as additional security for existing loans.
(July 17, 1916, c. 245, § 14, 39 Stat. 372.)
Fourth. Issuing excess of bonds,

receiving excess
of mortgages from associations. To issue or obli-
gate itself for outstanding farm loan bonds (includ-
ing consolidated bonds issued on its behalf) in ex-
cess of twenty times the amount of its capital and
surplus, or to receive from any national farm loan
association additional mortgages when the princi-
pal remaining unpaid upon mortgages already re-
ceived from such association shall exceed twenty
times the amount of its capital stock owned by such
association. (July 17, 1916, c. 245, § 14,39 Stat. 372;
June 16, 1933, c. 98, $75 (a), 48 Stat. 271.)

Fifth. Demanding unauthorized commissions.To demand or receive, under any form or pretense, any commission or charge not specifically authorized in this subchapter. (July 17, 1916, c. 245, § 14, 39 Stat. 372.)

Sixth. Accepting mortgages on personal property exempt from execution.To accept as additional security for any loan to any borrower under this subchapter, or any installment on any such loan, any personal property which is exempt from execution upon judgment under the laws of the State in which the land with respect to which the mortgage is given is situated. (July 17, 1916, c. 245, $ 14, 39. Stat. 372; Mar. 4, 1933, c. 270, § 5 (b), 47 Stat. 1549; June 16, 1933, c. 98, § 71, 48 Stat. 271.)

LOANS BY FEDERAL LAND BANKS THROUGH

AGENTS

$ 801

8 15

Loans; when authorized.—Whenever it shall appear to the Farm Credit Administration that national farm loan associations have not been formed, and are not likely to be formed; in any locality, because of peculiar local conditions, said administration may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said administration. (July 17, 1916, c. 245, $ 15, 39 Stat. 373; Mar. 27, 1933, Ex. Or. 6084.)

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

§ 802

§ 15

Manner of making.–Loans authorized by section 801 of this title shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute 5 per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 803

§ 15

Who may be employed as agent.-No agent other than a duly incorporated bank, trust company, mortgage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of sections 801-808 hereof. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 804

8 15

Expenses of and commissions to agents.-Fed-. eral land banks may pay to such agents the actual expense of appraising the land offered as security for a loan, examining and certifying the title thereof, and making, executing, and recording the mortgage papers; and in addition may allow said agents not to exceed one-half of 1 per centum per annum upon the unpaid principal of said loan, such commission to be deducted from dividends payable to the borrower on his stock in the Federal land bank. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 805

$ 15

Expenses of agents added to loans. Actual expenses paid to agents under the provisions of sections 801-808 hereof shall be added to the face of the loan and paid off in amortization payments subject to the limitations provided in paragraph “Ninth” of section 781 of this title. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 806

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Collection of loan payments.—Said agents, when required by the Federal land banks, shall collect and forward to such banks without charge all interest and amortization payments on loans indorsed by them. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

§ 807

§ 15

Indorsement of loans; liability thereon.-Any agent negotiating any such loan shall indorse the

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