§ 808 same and become liable for the payment thereof, When loans to cease. If at any time the district represented by any agent under the provisions of sections 801-808 of this title shall, in the judgment of the Farm Credit Administration, be adequately served by national farm loan associations, no further loans shall be negotiated therein by agents under said sections. (July 17, 1916, c. 245, § 15, 39 Stat. 373; 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. 8 15 $810 JOINT STOCK LAND BANKS Restriction against making loans or issuing bonds after May 12, 1933.-After May 12, 1933, no joint stock land bank shall issue any tax-exempt bonds or make any farm loans except such as are necessary and incidental to the refinancing of existing loans or bond issues or to the sale of any real estate now owned or hereafter acquired by such bank. (May 12, 1933, c. 25, § 29, 48 Stat. 46.) For loans to joint stock land banks to provide for orderly liquidation and for emergency purposes, see § 823 (note) of this title. & 811 Organization; directors.-Corporations, to be known as joint stock land banks, for carrying on the business of lending on farm mortgage security and issuing farm loan bonds, may be formed by any number of natural persons not less than ten. They shall be organized subject to the requirements and under the conditions set forth in sections 671-683 of this title, so far as the same may be applicable: Provided, That the board of directors of every joint stock land bank shall consist of not less than five members. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under 810 of this title. See that section. 816 § 812 § 813 § 814 § 815 Individual liability of shareholders.-Shareholders of every joint stock land bank organized under this chapter shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of stock owned by them at the par value thereof, in addition to the amount paid in and represented by their shares. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Powers, duties, and liabilities; stock.-Except Making loans or issuing tax-exempt bonds prohibited after May Limitation on amount of issue of bonds; transacting unauthorized business.-No joint stock land bank shall have power to issue or obligate itself for outstanding farm loan bonds in excess of fifteen times the amount of its capital and surplus, or to receive deposits or to transact any banking or other business not expressly authorized by the provisions of this chapter. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. Minimum capital stock. No joint stock land bank shall be authorized to do business until capital stock to the amount of at least $250,000 has been subscribed, one-half thereof paid in cash and the balance subject to call by the board of directors, and a charter has been issued to it by the Farm Credit Administration. (July 17, 1916, c. 245, § 16, 39 Stat. 374; 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. Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. § 16 § 16 § 16 § 16 § 816 § 817 § 818 § 819 Issuing bonds before payment of stock.-No joint stock land bank shall issue any bonds until after the capital stock is entirely paid up. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. Form of bonds.-Farm loan bonds issued by joint stock land banks shall be so engraved as to be readily distinguished in form and color from farm loan bonds issued by Federal land banks, and shall otherwise bear such distinguishing marks as the Farm Credit Administration shall direct. (July 17, 1916, c. 245, § 16, 39 Stat. 374; 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. Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. Interest rates; restrictions on mortgage loans.-Joint stock land banks shall not be subject to the provisions of subsection (b) of section 831 of this title as to interest rates on mortgage loans or farm loan bonds, nor to the provisions of paragraphs "First", "Fourth", "Sixth", "Seventh", and "Tenth" of section 771 as to restrictions on mortgage loans: Provided, however, That no loans shall be made which are not secured by first mortgages on farm lands within the State in which such joint stock land bank has its principal office, or within some one State contiguous to such State, except as hereinafter provided. Such joint stock land banks shall be subject to all other restrictions on mortgage loans imposed on Federal land banks in section 771 of this title. (July 17, 1916, c. 245, § 16, 39 Stat. 374; Mar. 4, 1931, c. 518, § 1, 46 Stat. 1548.) Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. Limitation on interest rates.-Joint stock land banks shall in no case charge a rate of interest on farm loans exceeding by more than 1 per centum the rate of interest established for the last series of farm loan bonds issued by them. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. § 16 § 16 § 16 § 16 8820 § 821 Unauthorized commissions or charges.-Joint stock land banks shall in no case demand or receive, under any form or pretense, any commission or charge not specifically authorized in this chapter. (July 17, 1916, c. 245, § 16, 39 Stat. 374.) Bonds; form and contents.-Each joint stock land bank organized under this chapter shall have authority to issue bonds based upon mortgages taken by it in accordance with the terms of this chapter. Such bonds shall be in form prescribed by the Farm Credit Administration, and it shall be stated in such bonds that such bank is organized under section sixteen of the Federal Farm Loan Act [sections 811-823 of this title], is under Federal supervision, and operates under the provisions of said Act. (July 17, 1916, c. 245, § 16, 39 Stat. 374; 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. Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. See that section. § 16 § 16 § 822 Voluntary liquidation.-Any joint stock land bank organized and doing business under the provisions of this chapter may go into voluntary liquidation by making provision, to be approved by the Farm Credit Administration, for the payment of its liabilities: Provided, That such method of liquidation shall have been duly authorized by a vote of at least two-thirds of the shareholders of such joint stock land bank at a regular meeting, or at a special meeting called for that purpose, of which at least ten days' notice in writing shall have been given to stockholders. (July 17, 1916, c. 245, § 16, 39 Stat. 374; May 29, 1920, c. 215, 41 Stat. 691; 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. See also 823 (note), and § 965. 816 § 823 Assets of liquidating bank; purchase by Federal or joint stock land bank; assumption of liabilities. For the purpose of assisting in any such liquidation authorized as in section 822 of this title provided, any Federal land bank or joint stock land bank may, with the approval of the Farm 8 16 8 823 Credit Administration, acquire the assets and as- "Farm Credit Administration" mentioned in the text was_sub- HISTORICAL NOTE Joint stock land banks are now prohibited from making loans or issuing tax-exempt bonds, except in circumstances permitted under § 810 of this title. This prohibition constituted Section 29 of Part 2 of "The Emergency Farm Mortgage Act of 1933." Section 31 of that Act, as amended by Section 3 of the Farm Credit Act of 1937, made provision for loans to joint-stock land banks during a limited period of time to enable them to grant certain emergency relief to their borrowers. Section 31, as amended, reads as follows: SEC. 31. (a) The Federal Farm Mortgage Corporation is authorized and directed to make available to the Land Bank Commissioner until July 1, 1938, out of the funds of the Corporation, the sum of $2,000,000, to be used for the purpose of making loans to the joint-stock land banks organized and doing business under the Federal Farm Loan Act, as amended. Loans made by the Land Bank Commissioner under this section shall be made in the name and on behalf of the Corporation and shall bear interest at a rate not to exceed 4 per centum per annum. No loan shall be made under this section to any joint-stock land bank except for the purpose of obtaining, for a period of one year from the date on which the loan is made, postponement of the foreclosure of first mortgages held by such bank on account of (1) default in the payment of interest and principal due under the terms of the mortgage, and (2) unpaid delinquent taxes, excluding interest and penalties, which may be secured by the lien of said mortgage: Provided, 8 16 |