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At least one month before the election of a local director the Land Bank Commissioner shall mail to each person or organization entitled to elect the local director the list of the ten candidates nominated in accordance with the tenth paragraph of this section. In the case of an election of a director to represent national farm loan associations and borrowers through agencies, the directors of each farm loan association shall cast the vote of such association for one of the candidates on the list. In voting under this section each such association shall be entitled to cast a number of votes equal to the number of stockholders of such association and each borrower through agencies shall be entitled to cast one vote. In voting under this section each Production Credit Association shall be entitled to cast a number of votes equal to the number of the class B stockholders of such associations. In voting under this section each cooperative which is a holder of stock in a Bank for Cooperatives (except the Governor of the Farm Credit Administration) shall be entitled to cast one vote. The votes shall be forwarded to the Land Bank Commissioner and no vote shall be counted unless forwarded to him within ten days after the list of candidates is received. 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 voters, as counted, shall be tabulated and preserved and shall be subject to examination by any candidate for at least one year after the results of the election is announced. (July 17, 1916, c. 245, $ 4, 39 Stat. 363; Mar. 4, 1923, c. 252, $ 304, 42 Stat. 1475; June 16, 1933, c. 98, $$ 70(a-3) and 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this section should be read as follows: The first paragraph remains in effect until June 16, 1934, on which date it is superseded by the second paragraph; the effective date of the second paragraph is June 16, 1934. See also $ 678a.

§ 681

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District directors; directors at large; appointment and election; vacancies.-The Farm Credit Administration shall designate one of the district directors to serve until December 31, 1924, one to serve till December 31, 1925, and one to serve till December 31, 1926. After their first appointment each district director shall be appointed for a term of three years. At the first regular meeting of the board of directors of each Federal land bank the local directors shall designate one of their members to serve till December 31, 1924, one to serve till

December 31, 1925, and one to serve till December
31, 1926. Thereafter each local director shall be
chosen as hereinbefore provided and shall hold
office for a term of three years. Any vacancies that
may occur in the board of directors shall be filled
for the unexpired term in the manner provided
herein for the original selection of such directors.

At the same time that the associations and
borrowers through agencies nominate the candi-
dates for the local directors, each association and
each borrower through agencies shall also nomi-
nate one candidate for director at large for the entire
district, and from the three persons having the
greatest number of votes for nominee for director
at large, the Farm Credit Administration shall
select a director at large, whose term of office shall
terminate on the 31st day of December, 1925, and
every three years thereafter. Such seventh direc-
tor may be removed by the Farm Credit Adminis-
tration for neglect of duty, incapacity for the work,
or malfeasance in office, after charges duly preferred
and a hearing had thereon, and in such cases the
associations of the district shall in like manner
nominate candidates for another director at large,
to fill the vacancy, for whom the Farm Credit
Administration shall in same manner select a
successor, but any person who is removed cannot be
nominated to succeed himself.

The Governor of the Farm Credit Administration shall select a director at large for the district who shall hold his office during a term of three years. Such seventh director may be removed by the Governor of the Farm Credit Administration at any time.

The board of directors thus selected shall, upon qualification, immediately take over the management of each bank. (July 17, 1916, c. 245, S4, 39 Stat. 363; Mar. 4, 1923, c. 252, § 304, 42 Stat. 1475; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, § 70 (a-4), 48 Stat. 269.)

The second and third paragraphs of this section should be read as follows: The second paragraph remains in effect until June 16, 1934, on which date it is superseded by the third paragraph; the effective date of the third 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,

8 682

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Qualifications of directors; limitation on engagement in other business.—Directors of Federal land banks shall have been, for at least two years, residents of the district for which they are appointed or elected, and a local director shall be a resident of his division when elected. No district director of

a Federal land bank shall, during his continuance in
office, act as an officer, director, or employee of any
other institution, association, or partnership en-
gaged in banking or in the business of making or
selling land mortgage loans. (July 17, 1916, c.
245, Š 4, 39 Stat. 363; Mar. 4, 1923, c. 252, 8 304,
42 Stat. 1476.)

$ 683

84

Directors, officers and employees; compensation and allowances.—Directors of the Federal land bank shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their boards, to be paid by the respective Federal land banks. Not more than one director of a Federal land bank may serve the bank or the Farm Credit Administration as an officer or employee. Except with the approval of the Land Bank Commissioner, no director (other than the director who may be an officer or employee) shall receive compensation or allowances for any services rendered any Federal land bank in his capacity as director for more than thirty days in any one calendar year exclusive of the period for which compensation is paid for attendance at directors' meetings. Any compensation that may be provided by boards of directors of the Federal land banks for directors, officers, or employees shall be subject to the approval of the Farm Credit Administration. (July 17, 1916, c. 245, § 4, 39 Stat. 363; Mar. 4, 1923, c. 252, & 304, 42 Stat. 1476; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, 88 70-80 (a), 48 Stat. 269, 273.)

The second and third sentences of this section become effective Jan. 1,

“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.

1934.

$ 691

$ 5

CAPITAL STOCK OF FEDERAL LAND BANKS

Capital stock; minimum amount of original capital; regulation of subscriptions. Every Federal land bank shall have, before beginning business, a subscribed capital of not less than $750,000. The Farm Credit Administration is authorized to prescribe the times and conditions of the payment of subscriptions to (original] capital stock, to reject any subscription in its discretion, and to require subscribers to furnish adequate security for the payment thereof. (July 17, 1916, c. 245, § 5, 39 Stat. 364; 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.

8 692

Capital stock; shares; value; who may subscribe to original stock.-The capital stock of each Federal land bank shall be divided into shares of $5 each, and may be subscribed for and held by any individual, firm, or corporation, or by the Government of any State or of the United States. (July 17, 1916, c. 245, § 5, 39 Stat. 364.)

The provision for subscriptions by any individual, firm, or corporation applies only to original stock. See § 695, of this chapter.

$ 693

$ 5

Capital stock; transfer of stock held by national farm loan associations. Stock held by national farm loan associations shall not be transferred or hypothecated, and the certificates therefor shall so state. (July 17, 1916, c. 245, § 5, 39 Stat. 364.)

$ 694

Capital stock; dividends; voting stock.- Stock owned by the Government of the United States in Federal land banks shall receive no dividends, but all other stock shall share in dividend distributions without preference. Each national farm loan association and the Government of the United States shall be entitled to one vote for each share of stock held by it in deciding all questions at meetings of shareholders, and no other shareholder shall be permitted to vote. Stock owned by the United States shall be voted by the Land Bank Commissioner, as directed by the Farm Credit Administration. (July 17, 1916, c. 245, § 5, 39 Stat. 364; Mar. 17, 1933, Ex. Or. 6084; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273.)

Stock issued to the United States under the provisions of $ 698 is nonvota ing. See that section. For vot privileges of borrowers through agencies in election of directors of Federal land banks, see $8 678-680.

“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.

$ 695

8

Subscriptions to original stock; subscriptions by United States for unsubscribed balance of original capital stock. It shall be the duty of the Farm Credit Administration, as soon as practicable after July 17, 1916, to open_books of subscription for the capital stock of a Federal land bank in each Federal land bank district. If within thirty days after the opening of said books any part of the minimum capitalization of $750,000, herein proscribed for Federal land banks shall remain unsub, scribed, it shall be the duty of the Secretary of the Treasury to subscribe the balance thereof on behall

of the United States, said subscription to be subject
to call in whole or in part by the board of directors
of said land bank upon thirty days' notice with the
approval of the Farm Credit Administration; and
the Secretary of the Treasury is hereby authorized
and directed to take out shares corresponding to
the unsubscribed balance as called, and to pay for
the same out of any moneys in the Treasury not
otherwise appropriated. Thereafter no stock shall
be issued except as hereinafter provided. · (July 17,
1916, c. 245, § 5, 39 Stat. 364; 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.

$ 696

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Retirement of original stock.--- After the subscriptions to capital stock by national farm loan associations shall amount to $750,000 in any Federal land bank, said bank shall apply semiannually to the payment and retirement of the shares of stock which were issued to represent the subscriptions to the original capital twenty-five per centum of all sums thereafter subscribed by national farm loan associations, by borrowers through agencies, and by borrowers through branch banks to capital stock until all such original capital stock is retired at par. (July 17, 1916, C. 245, § 5, 39 Stat. 364; Jan. 23, 1932, c. 9, § 1, 47 Stat. 12.)

8 697

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Proportion held in quick assets.-At least twentyfive per centum of that part of the capital of any Federal land bank for which stock is outstanding in the name of national farm loan associations shall be held in quick assets, and may consist of cash in the vaults of said land bank, or in deposits in member banks of the Federal reserve system, or in readily marketable securities which are approved under rules and regulations of the Farm Credit Administration: Provided, That not less than five per centum of such capital shall be invested in United States Government bonds. (July 17, 1916, c. 245, § 5, 39 Stat. 364; 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.

$ 698

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Subscriptions to additional stock by United States; terms; amount; retirement.-It shall be the duty of the Secretary of the Treasury on behalf of the United States, upon the request of the

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