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Sixth. Accepting mortgages on personal property exempt from execution. To accept as additional security for any loan to any borrower under this subchapter, or any installment on any such loan, any personal property which is exempt from execution upon judgment under the laws of the State in which the land with respect to which the mortgage is given is situated. (July 17, 1916, c. 245, § 14, 39 Stat. 372; Mar. 4, 1933, c. 270, § 5 (b), 47 Stat. 1549; June 16, 1933, c. 98, § 71, 48 Stat. 271).

LOANS BY FEDERAL LAND BANKS THROUGH

AGENTS

§ 801

$ 15

Loans when authorized.-Whenever it shall appear to the Farm Credit Administration that national farm loan associations have not been formed, and are not likely to be formed, in any locality, because of peculiar local conditions, said administration may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said administration, (July 17, 1916, c. 245, § 15, 39 Stat. 373; Mar. 27, 1933, Ex. Or. 6084.)

“Farm Credit Administration and "administration" mentioned in tho 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.

§ 802

$ 15

Manner of making.-Loans authorized by section 801 of this chapter shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute 5 per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

$ 803

815

Who may be employed as agent.-No agent other than a duly incorporated bank, trust company, mortgage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of sections 801-808 hereof. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

$ 804

$ 15

Expenses of and commissions to agents.Federal land banks may pay to such agents the actual expense of appraising the land offered as security for a loan, examining and certifying the

title thereof, and making, executing, and recording
the mortgage papers; and in addition may allow
said agents not to exceed one half of 1 per centum
per annum upon the unpaid principal of said loan,
such commission to be deducted from dividends
payable to the borrower on his stock in the Federal
land bank. (July 17, 1916, c. 245, § 15, 39 Stat.
373.)

$ 805

$ 15

Expenses of agents added to loans.- Actual expenses paid to agents under the provisions of sections 801-808 hereof shall be added to the face of the loan and paid off in amortization payments subject to the limitations provided in subsection ninth of section 781 of this chapter. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

$ 806

$ 15

Collection of loan payments.—Said agents, when required by the Federal land banks, shall collect and forward to such banks without charge all interest and amortization payments on loans indorsed by them. (July 17, 1916, c. 245, § 15, 39 Stat. 373.)

$ 807

$ 15

Indorsement of loans; liability thereon.--Any agent negotiating any such loan shall indorse the same and become liable for the payment thereof, and for any default by the mortgagor, on the same terms and under the same penalties as if the loan had been originally made by said agent as principal and sold by said agent to said land bank, but the aggregate of the unpaid principal of mortgage loans received from any such agent shall not exceed 10 times its capital and surplus. (July 17, 1916, c. 245, $ 15, 39 Stat. 373.)

$ 808

8 15

When loans to cease.--If at any time the district represented by any agent under the provisions of sections 801-808 of this chapter shall, in the judgment of the Farm Credit Administration, be adequately served by national farm loan associations, no further loans shall be negiotated 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 thereto, which is set out in full at the beginning of this chapter.

for “Federal Farm Loan Board” pursuant to the Executive Order cited

JOINT STOCK LAND BANKS

$ 810

§ 16

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. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; 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 chapter.

$ 811

§ 16

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 chapter, 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 chapter. See that

section.

8 812

§ 16

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.)

$ 813

$ 16

Powers, duties, and liabilities; stock.-Except as otherwise provided, joint stock land banks shall have the powers of, and be subject to all the restrictions and conditions imposed on, Federal land banks by this chapter, so far as such restrictions and conditions are applicable: Provided, however, That the Government of the United States shall not purchase or subscribe for any of the capital stock of any such bank, and each shareholder of

16

any such bank shall have the same voting privileges
as holders of shares in national banking associations.
(July 17, 1916, c. 245, § 16, 39 Stat. 374.)

“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 chapter. See that section.

8 814

§ 16

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, č. 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 chapter. See that section.

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§ 16

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 Farın Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

§ 816

§ 16

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 chapter. See that section.

$ 817

§ 16

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 chapter. See that section,

§ 818

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Interest rates; restrictions on mortgage loans.Joint stock land banks shall not be subject to the provisions of subsection (6) of section 831 of this chapter as to interest rates on mortgage loans or farm loan bonds, nor to the provisions of subsections 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 chapter. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; Mar. 4, 1931, c. 518, § 1,46 Stat. 1458.)

Making loans or issuing tax-exempt bonds probibited after May 12, 1933, except in circumstances permitted under $ 810 of this chapter. See that

section.

$ 819

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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 chapter. See that section.

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.)

$ 820

$ 16

$ 821

16

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 chapter), 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 chapter. See that

section.

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