$ 876 8877 8 878 & 879 common selling agency, and the Federal land banks Consolidated bonds; signature and attestation; joint and several obligations; recitals.Every bond so issued shall be signed by the Land Bank Commissioner and attested by any deputy land bank commissioner, and their signatures may be either written or engraved thereon and shall recite in the face of the bond the fact that it is the joint and several obligation of the twelve Federal land banks, and shall in all respects be governed by the provisions of the Federal Farm Loan Act not inconsistent herewith. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.) Consolidated bonds; where payable. The consolidated bonds issued under this provision shall be made payable at any Federal land bank, and may be made payable at any Federal reserve bank or banks designated in the face of the bond. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) Consolidated bonds; act of Commissioner binding on banks.-Each Federal land bank on whose behalf consolidated bonds shall be issued under this provision shall in all respects be bound by the act of the Land Bank Commissioner and the [attesting] deputy land bank commissioner. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, 308, 42 Stat. 1476; Mar. 4, 1925, c. 524, § 6, 43 Stat. 1264; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.) Consolidated bonds; action of directors respecting bond liability.-Every Federal land bank, before participation in a consolidated issue, as herein provided, shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on Federal farm loan bonds as provided in sections 871-886, and be bound by the action of the Land Bank Commissioner and any deputy land bank commissioner in § 21 8 21 § 21 § 21 § 880 executing the same. (July 17, 1916, c. 245, § 21, Certificate of Land Bank Commissioner.Every farm loan bond issued hereunder shall contain on the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of Title I of the Federal Farm Loan Act, has the approval in form and issue of the Farm Credit Administration, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security consisting of obligations of the United States Government, or first mortgages on farm lands, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, §§ 75 (b), 80 (a), 48 Stat. 271, 273.) "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. § 21 $881 Farm loan bonds, special provisions of; consolidated bonds; participation of Federal land bank in issue; collateral. (a) Approval of issue requisite; collateral to be held separate from collective security for individual bonds; payments on pledged mortgages as trust funds.-When any Federal land bank shall desire to participate in a consolidated issue of farm loan bonds it shall make application to the Farm Credit Administration for the approval on its behalf of such issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and no banks shall participate in such consolidated issue until such application has been approved by the Farm Credit Administration. Such approved farm mortgages or obligations of the United States Government shall be held by each farm loan registrar as collateral security for consolidated bonds, separate and apart from the mortgages and/or Government bonds held by him as collective security for the bonds previously issued or assumed § 21 § 881 individually by the Federal land bank of his district. Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of consolidated farm loan bonds shall constitute a trust fund in the hands of the Federal land bank receiving the same and shall be applied or employed in the manner provided in sections 891-899 with respect to payments on principal of first mortgages held as collateral for farm loan bonds of individual banks. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 4, 1933, c. 270, § 7, 47 Stat. 1550; Mar. 27, 1933, Ex. Or. 6084.) (b) Notice to registrar of disposition of payments on mortgages held as collateral; maintenance of collateral by banks. Every Federal land bank shall notify the farm loan registrar of the disposition of all payments made on the principal of mortgages held as collateral security for the issue of consolidated farm loan bonds, and said registrar is authorized, at his discretion to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. Each bank shall maintain with the farm loan registrar of its district collateral security for the issue of consolidated farm loan bonds in an amount at least equal to the face amount of such bonds issued on its behalf. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 4, 1933, c. 270, § 7, 47 Stat. 1550) (c) Withdrawal of collateral on surrender of bonds. When any Federal land bank shall surrender to the farm loan registrar of its district any consolidated Federal farm loan bonds, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds previously pledged as collateral in connection with any issue of consolidated farm loan bonds to an amount equal to the consolidated farm loan bonds so surrendered and it shall be the duty of such registrar to permit and direct the delivery of such mortgages and bonds to such land bank. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 4, 1933, c. 270, § 7, 47 Stat. 1550.) (d) Additional collateral; payment of bonds and coupons.-The Farm Credit Administration may at any time call upon any Federal land bank for additional security to protect the consolidated bonds issued under the provisions of this section. Each bank shall pay when due, without notice, all "Farm Credit Administration" mentioned in the text was sub- $ 882 & 883 Consolidated bonds; failure of participating bank to pay interest or principal; liability of other banks. If any Federal land bank shall fail to pay its proportion of interest or principal as prescribed in section 881 (d) of this title, the Farm Credit Administration shall immediately call upon the other Federal land banks for the amount necessary to make said payment, the assessments to be made in proportion to the capital stock of each, which assessments shall be forthwith paid by said banks. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; 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. Bond committee and subcommittee. The presi- § 21 & 21 8 884 members of the subcommittee or any of them. The Consolidated bonds; duties of bond commit- "Farm Credit Administration" mentioned in the text was sub- § 21 § 885 8 886 Consolidated bonds; expenses.-The expenses of the bond committee and of the sale of bonds shall be charged against the several land banks in proportion to their participation in the proceeds. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) Compensation of members of bond committee. The presidents of the Federal land banks shall receive no additional compensation for their serv-. ices as members of the bond committee, but shall be paid necessary traveling expenses. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) 8 21 § 21 |