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§ 673

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Temporary management.-Each Federal land bank shall be temporarily managed by five directors appointed by the Farm Credit Administration. Said directors shall be citizens of the United States and residents of the district. They shall each give a surety bond, the premium on which shall be paid from the funds of the bank. They shall receive such compensation as the Farm Credit Administration shall fix. They shall choose from their number, by majority vote, a president, a vice president, à secretary, and a treasurer. They are further authorized and empowered to employ such attorneys, experts, assistants, clerks, laborers, and other employees as they may deem necessary, and to fix their compensation, subject to the approval of the Farm Credit Administration. (July 17, 1916, c. 245, $4,39 Stat. 362; 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.

8 674

8 4

Organization certificates; contents.-Said temporary directors shall, under their hands, forthwith make an organization certificate, which shall specifically state:

First. The name assumed by such bank.

Second. The district within which its operations are to be carried on, and the particular city in which its principal office is to be located.

Third. The amount of capital stock and the number of shares into which the same is to be divided: Provided, That every Federal land bank organized under this subchapter shall by its articles of association permit an increase of its capital stock from time to time for the purpose of providing for the issue of shares to national farm loan associations and stockholders who may secure loans through agents of Federal land banks in accordance with the provisions of this subchapter.

Fourth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this subchapter. The organization certificate shall be acknowledged before a judge or clerk of some court of record or notary public, and shall be, together with the acknowledgment thereof, authenticated by the seal of such court or notary, transmitted to the Land Bank Commissioner, who shall record and carefully preserve the same in his office, where it shall be at all times open to public inspection. (July 17, 1916, c. 245, § 4, 39 Stat. 362; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273.)

§ 675

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Changes in organization certificate.-The Farm Credit Administration is authorized to direct such changes in or additions to any such organization certificate, not inconsistent with this subchapter, as it may deem necessary or expedient. (July 17, 1916, c. 245, $ 4, 39 Stat. 363; 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.

§ 676

84

Time of commencement of corporate existence; powers enumerated.—Upon duly making and filing such organization certificate the bank shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power

First. To adopt and use a corporate seal.

Second. To have succession until it is dissolved by Act of Congress or under the provisions of this chapter

Third. To make contracts.

Fourth. To sue and be sued, complain, interplead, and defend, in any court of law or equity, as fully as natural persons.

Fifth. To elect or appoint directors, and by its board of directors to elect a president and a vice president, appoint a secretary and a treasurer and other officers and employees, define their duties, require bonds of them, and fix the penalty thereof; by action of its board of directors dismiss such officers and employees, or any of them, at pleasure and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, subject to the supervision and regulation of the Farm Credit Administration, bylaws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected, its officers elected or appointed, its property transferred, its general business conducted and the privileges granted to it by law exercised and enjoyed.

Seventh. To exercise, by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business herein described. (July 17, 1916, c. 245, § 4, 39 Stat. 363; 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.

8 677

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Time of termination of temporary management.--After the subscriptions to stock in any Federal land bank by national farm loan associations, hereinafter authorized, shall have reached the sum of $100,000, the officers and directors of said land bank shall be chosen as herein provided and shall, upon becoming duly qualified, take over the management of said land bank from the temporary officers selected under this section. (July 17, 1916, c. 245, S4, 39 Stat. 363.)

§ 678

Directors; number and qualifications; local and district directors.—The board of directors of every Federal land bank shall be selected as hereinafter specified and shall consist of seven members, Three of said directors shall be known as local directors and shall be chosen by and be representative of national farm loan associations and borrowers through agencies; three shall be known as district directors and shall be appointed by the Farm Credit Administration and represent the public interest. The term of office of local and district directors shall be three years.

The board of directors of every Federal land bank shall be selected as hereinafter specified and shall consist of seven members. Three of said directors shall be known as local directors of whom one shall be chosen by and be representative of national farm loan associations and borrowers through agencies, one shall be chosen by and be representative of Production Credit Associations organized under subchapter IV of this chapter, and one shall be chosen by and be representative of borrowers from regional Banks for Cooperatives organized under subchapter V of this chapter. Three of the seven directors shall be known as district directors and shall be appointed by the Governor of the Farm Credit Administration of whom two shall represent the public interest and one shall represent national farm loan associations and borrowers through agencies and such director shall be a borrower from a Federal land bank. The terms of office of local and district directors shall be three years. (July 17, 1916, c. 245, § 4, 39 Stat. 363; Mar. 4, 1923, c. 252, $ 304, 42 Stat. 1474; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, $ 70 (a-1), 48 Stat. 271.)

The two paragraphs of this section should be read as follows: The first paragraph rentains in effect until June 16, 1934, on which date it is superseded by the second paragraph; the effective date of the second paragraph is June 16, 1934. See also $ 678a.

"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.

$ 678a

Directors; limitation on effect of amendments of 1933.—The second paragraphs of sections 678, 679, and 680, respectively, and the third paragraph of section 681 shall apply only to the appointment or election of the successors of directors of land banks whose regular terms expire after the effective date of such paragraphs (June 16, 1934). The successors of the first local director whose regular term so expires shall be elected by and be representative of Production Credit Associations and the successors of the second local director whose regular term so expires shall be elected by and be representative of borrowers from Banks for Cooperatives. The successors of the third local director whose regular term so expires shall be elected by and be representative of national farm loan associations and borrowers through agencies. (June 16, 1933, c. 98, $ 70 (b), 48 Stat, 269.)

$ 679

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Local directors; nomination of candidates.At least two months before each election, the Farm Credit Administration shall divide each land bank district into three divisions, as nearly equal as possible according to number of borrowers and the voting strength of national farm loan associations and borrowers through agencies, and the Land Bank Commissioner shall thereupon notify each association and agency in writing that an election is to be held for one local director from each of said divisions and requesting each association and agency to nominate one candidate for each division. Within ten days of receipt of such notice each national farm loan association and borrower through agencies shall forward nominations of residents of their respective divisions for one director for such division to said Land Bank Commissioner. The Land Bank Commissioner shall then prepare a list of candidates for local directors, consisting of the ten persons receiving the highest number of votes from national farm loan associations and borrowers through agencies for each division.

At least two months before an election of a local director the Land Bank Commissioner shall cause notice in writing to be sent to those entitled to nominate candidates for such local director. In the case of an election of a director to represent national farm loan associations and borrowers through agencies, such notice shall be sent to all national farm loan associations and borrowers through agencies in the district; in the case of an election to represent Production Credit Associations, such notice shall be

sent to all Production Credit Associations in the
district; and in the case of a director to represent
borrowers from Banks for Cooperatives, such notice
shall be sent to all cooperatives which are borrowers
at the time of sending notice. Within ten days of
receipt of such notice those entitled to nominate
the director shall forward nominations of residents
of the district to the Land Bank Commissioner.

The Land Bank Commissioner shall, from such
nominations, then prepare a list of candidates for
such local director consisting of the ten nominees
receiving the highest number of votes. (July 17,
1916, c. 245, $ 4, 39 Stat. 363; Mar. 4, 1923, c. 252,
$ 304, 42 Stat. 1474; June 16, 1933, c. 98, $$70 (a-2),
80 (a), 48 Stat. 269, 273.)

The two paragraphs of this section should be read as follows: The first
paragraph remains in effect until June 16, 1934, on which date it is super-
seded by the second paragraph; the effective date of the second paragraph
is June 16, 1934. See also g 078a.

"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

8680

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Local directors; election.-At least one month before said election the Land Bank Commissioner shall mail to each national farm loan association and to each borrower through agencies the list of candidates for their respective divisions. The directors of each national farm loan association shall cast the vote of said association for one of the candidates on said list and shall forward said vote to the said Land Bank Commissioner within ten days after said list of candidates is received. In voting under this section each association shall be entitled to cast a number of votes equal to the total voting strength of the stockholders in association meetings, and each borrower through agencies shall be entitled to cast one vote for each share of stock held by him in the Federal land bank not exceeding twenty shares, and shall forward said vote to the said Land Bank Commissioner within ten days after said list of candidates is received. The candidate receiving the highest number of votes in his division shall be declared elected as local director of the Federal land bank district from his division. In case of a tie, the Land Bank Commissioner shall determine the choice. The nominations from which the list of candidates is prepared, and the votes of the respective associations and borrowers through agencies for such candidates, as counted, shall be tabulated and preserved, subject to examination by any candidate, for at least one year after the result of the election is announced.

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