Page images
PDF
EPUB

$ 863

§ 20

Delivery to bank.-Farm loan bonds shall be delivered through the registrar of the district to the bank applying for the same. (July 17, 1916, c. 245, $ 20, 39 Stat. 377.)

§ 864

§ 20

Preparation; custody of plates and dies; exchange for registered bonds; reexchange for coupons.-In order to furnish farm loan bonds for delivery at the Federal land banks and joint stock land banks, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provisions of this chapter, as the Farm Credit Administration may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the Farm Credit Administration. The engraved plates, dies, bed-pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. Any expenses incurred in the preparation, custody and delivery of such farm loan bonds shall be paid by the Secretary of the Treasury from any funds in the Treasury not otherwise appropriated: Provided, however, That the Secretary shall be reimbursed for such expenditures by the Farm Credit Administration through assessment upon the farm land banks in proportion to the work executed. They may be exchanged into registered bonds of any amount, and reexchanged into coupon bonds, at the option of the holder, under rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, c. 245, $ 20, 39 Stat. 377; 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.

SPECIAL PROVISIONS OF FARM LOAN BONDS

$ 21

Land banks as bound by acts of officers and Credit Administration in issue of bonds.-That each land bank shall be bound in all respects by the acts of its officers in signing and issuing farm loan bonds and by the acts of the Farm Credit Administration in authorizing their issue. (July 17, 1916, c. 245, $ 21, 39 Stat. 377; 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.

§ 872

[merged small][ocr errors]

Liability of each Federal land bank for bonds issued by it and by other Federal land banks.-Every Federal land bank issuing farm loan bonds shall be primarily liable therefor, and shall also be liable, upon presentation of farm loan bond coupons, for interest payments due upon any farm loan 'bonds issued by other Federal land banks and remaining unpaid in consequence of the default of such other land banks; and every such bank shall likewise be liable for such portion of the principal of farm loan bonds so issued as shall not be paid after the assets of any such other land banks shall have been liquidated and distributed: Provided, That such losses, if any, either of interest or of principal, shall be assessed by the Farm Credit Administration against solvent land banks liable therefor in proportion to the amount of farm loan bonds which each may have outstanding at the time of such assessment. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 27, 1933, Ex. Or. 6084.)

“Farm Credit Administration" mentioned in the text was subsituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

$87

§ 873

$ 21

Federal land banks; action of directors respecting bond liability. Every Federal land bank shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on farm loan bonds as provided in sections 871-886 of this chapter. (July 17, 1916, c. 245, $ 21, 39 Stat. 377.)

§ 874

[blocks in formation]

Signing and attesting bonds; certificate of Land Bank Commissioner.-Every farm loan bond issued by a Federal land bank shall be signed by its president or vice president and attested by its secretary or assistant secretary. For the purpose of signing such bonds the board of directors of any Federal land bank is authorized to select a vice president who need not be a member of the board of directors; such bonds shall also contain in the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority 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 of United States Government bonds, or first mortgages on farm lands at least equal in amount to the bonds issued; and

[ocr errors]

that all Federal land banks are liable for the pay-
ment of each bond. (July 17, 1916, c. 245, $ 21,
39 Stat. 377; Apr. 20, 1920, c. 154, 96, 41 Stat. 571;
Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98,
$$ 75, 80 (a), 48 Stat. 271 and 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.

$ 875

§ 21

Consolidated bonds; authority of Federal land banks to issue and sell.—Whenever it shall appear desirable to issue consolidated bonds of the twelve Federal land banks and to sell them through a common selling agency, and the Federal land banks shall, by resolution, consent to the same, the banks may issue and sell said bonds as hereinafter provided. (July 17, 1916, c. 245, $ 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.)

$ 876

$ 21

21

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.)

[blocks in formation]

§ 21

Consolidated bonds; when 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.)

§ 878

$ 21

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.)

$ 879

[blocks in formation]

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 executing the same. (July 17, 1916, c. 245, $ 21, 39 Stat. 377; Mar. 4, 1923, c. 252, $ 308, 42 Stat. 1476; June 16, 1933, c. 98, $S 80 (a), 81, 48 Stat. 272, 273.)

$ 880

§ 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, 80 (a), 48 Stat. 272, 273.

“Farm Credit Administration” mentioned in the text was sugstituted for “Federal Farm Loan Board” pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

§ 881

$ 21

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

8881

§ 21

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 previ-
ously issued or assumed 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.consti-
tute 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 consoli-
dated farm loan bonds, and said registrar is author-
ized, at his discretion to order any of such pay-
ments, 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 consoli-
dated farm loan bonds in an amount at least equal
to the face amount of such bonds issued on its be-
half. (July 17, 1916, c. 245, $ 21, 39 Stat. 377; Mar.
4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 4, 1933,
c. 270, 87, 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.)

« PreviousContinue »