Page images
PDF
EPUB

§ 913

8 914

§ 915

Dividends on balance of net earnings.-After deducting the 10 per centum or the 5 per centum hereinbefore directed to be credited to reserve account, said association may at its discretion declare a dividend to shareholders of the whole or any part of the balance of said net earnings: Provided, That the declaration and payment of any such dividend shall be subject to the approval of the Land Bank Commissioner. (July 17, 1916, c. 245, § 24, 39 Stat. 379; Jan. 23, 1932, c. 9, § 4, 47 Stat. 13; June 3, 1935, c. 164, § 4, 49 Stat. 315.)

Investment of reserves.-The reserves of farm loan associations shall be invested in accordance with rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, c. 245, § 24, 39 Stat. 379; 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.

Disposition of reserve on liquidation.—Whenever any farm loan association shall be voluntarily liquidated a sum equal to its reserve account as herein required shall be paid to and become the property of the Federal land bank in which such loan association may be a shareholder. (July 17, 1916, c. 245, § 24, 39 Stat. 379.)

§ 24

§ 24

$ 24

§ 921

DEFAULTED FARM LOANS

Mortgage held by Federal land bank; notice to indorsing association; making good default.-If there shall be default under the terms of any indorsed first mortgage held by a Federal land bank under the provisions of this chapter the national farm loan association through which said mortgage was received by said Federal land bank shall be notified of said default. Said association may thereupon be required, within 30 days after such notice, to make good such default, either by payment of the amount unpaid thereon in cash or by the substitution of an equal amount of Federal farm loan bonds, with all unmatured coupons attached. (July 17, 1916, c. 245, § 25, 39 Stat. 380; Mar. 4, 1923, c. 252, § 310, 42 Stat. 1477.)

§ 25

§ 931

§ 932

§ 933

§ 941

EXEMPTION FROM TAXATION

Federal land banks; national farm loan associations; mortgages and bonds as instrumentalities of Government.-Every Federal land bank and every national farm loan association, including the capital and reserve or surplus therein and the income derived therefrom, shall be exempt from Federal, State, municipal, and local taxation, except taxes upon real estate held, purchased, or taken by said bank or association under the provisions of sections 761 and 781 of this title. First mortgages executed to Federal land banks, or to joint stock land banks, and farm loan bonds issued under the provisions of this chapter, shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation. (July 17, 1916, c. 245, § 26, 39 Stat. 380.)

Joint stock land banks; State taxation of shareholder, limitations on.-Nothing herein shall prevent the shares in any joint stock land bank from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the bank is located; but such assessment and taxation shall be in manner and subject to the conditions and limitations contained in section 548 of Title 12 [U. S. Code] with reference to the shares of national banking associations. (July 17, 1916, c. 245, § 26, 39 Stat. 380.)

Federal and joint stock land banks; real property not exempt.-Nothing herein shall be construed to exempt the real property of Federal and joint stock land banks and national farm loan associations from either State, county, or municipal taxes, to the same extent, according to its value, as other real property is taxed.. (July 17, 1916, c. 245, § 26, 39 Stat. 380.)

INVESTMENT IN FARM LOAN BONDS Fiduciary and trust funds; security for puplic deposits.-Farm loan bonds issued under the provisions of this chapter by Federal land banks or joint stock land banks shall be a lawful investment for all fiduciary and trust funds, and may be ac

§ 26

§ 26

§ 26

§ 27

§ 942

& 943

§ 951

8 952

cepted as security for all public deposits. (July 17,
1916, c. 245, § 27, 39 Stat. 380.)

Buying and selling by member banks of Federal reserve system.-Any member bank of the Federal reserve system may buy and sell farm loan bonds issued under the authority of this chapter. (July 17, 1916, c. 245, § 27, 39 Stat. 380.)

Buying and selling by reserve banks.-Any Federal reserve bank may buy and sell farm loan bonds issued under this chapter to the same extent and subject to the same limitations placed upon the purchase and sale by said banks of State, county, district, and municipal bonds under section 14 (b) of the Federal Reserve Act of December 23, 1913 [section 355 of chapter 3 of Title 12, U. S. Code]. (July 17, 1916, c. 245, § 27, 39 Stat. 380.)

EXAMINATIONS

Farm credit examiners; appointment; number. The Farm Credit Administration shall appoint as many farm credit examiners as in its judgment may be required to make careful examinations of the banks and associations permitted to do business under this subchapter and subchapter III of this chapter. (July 17, 1916, c. 245, § 28, 39 Stat. 381; Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 20, 50 Stat. 710.)

"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.

re

Requirements, responsibilities, and penalties applicable to examiners; examinations; ports.-Farm credit examiners shall be subject to the same requirements, responsibilities, and penalties as are applicable to national bank examiners. under chapters 2 and 3 of Title 12 [U. S. Code] and other provisions of law. Whenever directed by the Farm Credit Administration, said examiners shall examine the condition of any national farm loan association and report the same to the Land Bank Commissioner. They shall examine and report the condition of every Federal land bank and joint stock land bank at least twice each year. (July 17,

8 27

§ 27

§ 28

8 28

& 953

§ 961

1916, c. 245, § 28, 39 Stat. 381; Mar. 27, 1933, Ex.
Or. 6084; June 16, 1933, c. 98, § 80 (a), 48 Stat.
273; Aug. 19, 1937, c. 704, § 20, 50 Stat. 710.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

Salaries of examiners.-Farm credit examiners
shall receive salaries to be fixed by the Farm Credit
Administration. (July 17, 1916, c. 245, § 28, 39
Stat. 381; Mar. 27, 1933, Ex. Or. 6084; Aug. 19,
1937, c. 704, § 20, 50 Stat. 710.)

"Farm Credit Administration" mentioned in the text was substi-
tuted for "Federal Farm Loan Board" pursuant to the Executive
Order cited thereto, which is set out in full at the beginning of
this chapter.
For assessments on banks for amount of salaries

an expenses, see § 657 of this title.

RECEIVERS AND CONSERVATORS

National farm loan associations; institution and conduct of receivership; duties and powers of receivers. Upon receiving satisfactory evidence that any national farm loan association has failed to meet its outstanding obligations of any description the Farm Credit Administration may forthwith declare such association insolvent and appoint a receiver and require of him such bond and security as it deems proper: Provided, That no national farm loan association shall be declared insolvent by said administration until the total amount of defaults of current interest and amortization installments on loans indorsed by national farm loan associations shall amount to at least $150,000 in the farm credit district, unless such association shall have been in default for a period of two years. Such receiver, under the direction of the Farm Credit Administration, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, with the approval of the Farm Credit Administration, or upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like approval or order, may sell all the real and personal property of such association, on such terms as the Farm Credit Administration or said court shall direct. (July 17, 1916, c. 245, § 29, 39 Stat. 381; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 5 (a), 50 Stat. 704.)

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

§ 28

§ 29

[ocr errors]

12 U. S. C.

§ 962

LAND BANK SYSTEM

Disposition of moneys collected by receiver;
reports. Such receiver shall pay over all money
so collected to the Treasurer of the United States,
subject to the order of the Farm Credit Administra-
tion, and also make report to said administration
of all his acts and proceedings. The Secretary of
the Treasury shall have authority to deposit at in-
terest any money so received. (July 17, 1916, c. 245,
§ 29, 39 Stat. 381; Mar. 27, 1933, Ex. Or. 6084.)

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

F. F. L. Act

§ 29

§ 963

Federal and joint stock land banks; institution and conduct of receivership.-Upon default of any obligation, Federal land banks and joint stock land banks may be declared insolvent and placed in the hands of a receiver by the Farm Credit Administration, and proceedings shall thereupon be had in accordance with the provisions of sections 961-967 regarding national farm loan associations. (July 17, 1916, c. 245, § 29, 39 Stat. 381; 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.

§ 29

§ 963a

Authorization to receiver to borrow money for
paying taxes on real estate. Any receiver ap-
pointed by the Farm Credit Administration pur-
suant sections 961-967 of this title, as
amended, or any receiver appointed by a district
court of the United States, is authorized, for the
purpose of paying taxes on farm real estate owned
by the bank or securing the mortgages held by it,
with the approval of the Land Bank Commissioner,
to borrow from the Reconstruction Finance Cor-
poration and to issue receiver's certificates against
the assets of such bank as security for any loan
received from the Corporation under this section,
and such certificates shall constitute a prior lien on
such assets. The Reconstruction Finance Corpo-
ration is authorized to make loans to such receivers
for the purposes of this section. (Mar. 27, 1933,
Ex. Or. 6084; May 12, 1933, c. 25, § 27, 48 Stat.
45; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

« PreviousContinue »