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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.)

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

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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 Administration, and also make report to said administration of all his acts and proceedings. The Secretary of the Treasury shall have authority to deposit at interest 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 "board,” respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

$ 963

§ 29

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 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.

8 963a

$ 29

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Authorization to receiver to borrow money for paying taxes on real estate.-- Any receiver appointed by the Farm Credit Administration pursuant to sections 961-967 of this chapter, 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 Corporation 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 substituted
for “Federal Farm Loan Board
thereto, which is set out in full at the beginning of this chapter.

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pursuant to the Executive Order cited

$ 964

$ 29

National farm loan associations; disposition of stock in Federal land bank.-If any national farm loan association shall be declared insolvent and a receiver shall be appointed therefor by the Farm Credit Administration, the stock held by it in the Federal land bank of its district shall be canceled without impairment of its liability and all payments on such stock, with accrued dividends, if any, since the date of the last dividend shall be first applied to all debts of the insolvent farm loan association to the Federal land bank and the balance, if any, shall be paid to the receiver of said farm loan association: Provided, That in estimating said debts contingent liabilities incurred by national farm loan associations under the provisions of this chapter on account of default of principal or interest of indorsed mortgages shall be estimated and included as a debt, and said contingent liabilities shall be determined by agreement between the receiver and the Federal land bank of the district, subject to the approval of the Farm Credit Administration, and if said receiver and said land bank cannot agree, then by the decision of the Land Bank Commissioner, and the amount thus ascertained shall be deducted in accordance with the provisions of this section from the amount otherwise due said national farm loan association for said canceled stock. Wheneyer the capital stock of a Federal land bank shall be reduced, the board of directors shall cause to be executed a certificate to the Farm Credit Administration, showing such reduction of capital stock, and, if said reduction shall be due to the insolvency of a national farm loan association, the amount repaid to such association. (July 17, 1916, c. 245, $ 29, 39 Stat. 381; Mar. 27, 1933, Ex. Or. 6084, June 16, 1933, c. 98, $ 80 (a), 48 Stat. 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.

$ 965

§ 29

Vo untary liquidation; consolidation of farm loan associations.--No national farm loan association, Federal land bank, or joint stock land bank shall go into voluntary liquidation without the written consent of the Farm Credit Administration, but national farm loan associations may consolidate under rules and regulations promulgated by the Farm Credit Administration. (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.

For limitations on new business of joint stock land banks, and provisions for assisting in their orderly liquidation, see § 810 and § 823 (note), of this chapter.

§ 966

§ 29

National farm loan associations; disposition of stock in Federal land bank upon voluntary liquidation; personal liability of members.-Upon liquidation of any national farm loan association, the stock in the Federal land bank held by such association shall be canceled and the Federal land bank shall thereupon issue to the borrowers through such association an amount of stock in the Federal land bank equal to the amount of stock held by such borrowers in the liquidated association, such stock to be held by the bank as collateral to the loans of such borrowers and to be paid off and retired at par

in the same manner as stock held by borrowers in farm loan associations, and the Federal land bank shall pay to the borrowers holding such stock the same dividends as are paid to national farm loan associations by such bank. The personal liability of the stockholders in such liquidated association to the association shall survive such liquidation and shall be vested in the bank in that district, which may enforce the same as fully as the association could if in existence. (July 17, 1916, c. 245, § 29, 39 Stat. 381; Mar. 4, 1923, c. 252, § 311, 42 Stat. 1478.)

STATE LEGISLATION IMPAIRING SECURITY OF

FARM LOANS

$ 971

§ 30

Examination to ascertain adequacy of safeguards to mortgagee.-It shall be the duty of the Land Bank Commissioner to make examination of the laws of every State of the United States and to inform the Farm Credit Administration rapidly as may be whether in his judgment the laws of each State relating to the conveying and recording of land titles, and the foreclosure of

as

mortgages or other instruments securing loans, as
well as providing homestead and other exemptions
and granting the power to waive such exemptions
as respects first mortgages, are such as to assure
the holder thereof adequate safeguards against loss
in the event of default on loans secured by any such
mortgages. (July 17, 1916, c. 245, § 37, 39 Stat.
382; Mar. 27, 1933, Éx. Or. 6084; June 16, 1933,
c. 98, § 80 (a), 48 Stat. 273.)

“Farm Credit Administration" mentioned in the test 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,

$ 972

$ 30

Effect of insufficient protection on mortgages covering land in State; assistance in examining laws.-Pending the making of such examination in the case of any State, the Farm Credit Administration may declare first mortgages on farm lands situated within such State ineligible as the basis for an issue of farm loan bonds; and if said examination shall show that the laws of any such State afford insufficient protection to the holder of first mortgages of the kinds provided in this subchapter, said Farm Credit Administration may declare said first mortgages on land situated in such State ineligible during the continuance of the laws in question. In making his examination of the laws of the several States and forming his conclusions thereon said Land Bank Commissioner may call upon the office of the Attorney General of the United States for any needed legal advice or assistance, or may employ special counsel in any State where he considers such action necessary. (July 17, 1916, c. 245, $ 30, 39 Stat. 382; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273.)

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

8 973

§ 30

Statement to State Executive.-At_the request of the Executive of any State the Farm Credit Administration shall prepare a statement setting forth in what respects the requirements of said administration cannot be complied with under the existing laws of such State. (July 17, 1916, c. 245, 8 30, 39 Stat. 382; 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.

PENALTIES

$ 981

$ 31

False statements in applications for loans; willful overvaluation of land; acceptance of loan or gratuity by examiners.—Any applicant for a loan under this subschapter who shall knowingly make any false statement in his application for such loan, and any member of a loan committee or any appraiser provided for in this subchapter who shall willfully overvalue any land offered as security for loans under this subchapter, shall be punished by a fine of not exceeding $5,000, or by imprisonment not exceeding one year, or both. Any examiner appointed under this subchapter who shall accept a loan or gratuity from any land bank or national farm loan association examined by him, or from any person connected with any such bank or association in any capacity, shall be punished by a fine of not exceeding $5,000, or by imprisonment not exceeding one year, or both, and may be fined a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as an examiner under the provisions of this subchapter. No examiner, while holding such office, shall perform any other service for compensation for any bank or banking or loan association, or for any person connected therewith in any capacity. (July 17, 1916, c. 245, § 31, 39 Stat. 382.)

$ 982

$ 31

Falsely making, forging, or counterfeiting bonds or coupons; passing false bonds or coupons; falsely altering.–Any person who shall falsely make, forge, or counterfeit, or cause or procure to be falsely made, forged, or counterfeited, or willingly aid or assist in falsely making, forging, or counterfeiting any bond, coupon, or paper in imitation of, or purporting to be in imitation of, the bonds or coupons issued by any land bank or national farm loan association, now or hereafter authorized and acting under the laws of the United States; or any person who shall pass, utter, or publish, or attempt to pass, utter, or publish any false, forged, or counterfeited bond, coupon, or paper purporting to be issued by any such bank or association, knowing the same to be falsely made, forged, or counterfeited; or whoever shall falsely alter, or cause or procure to be falsely altered, or shall willingly aid or assist in falsely altering any such bond, coupon, or paper, or shall pass, utter, or publish as true any falsely altered or spurious bond, coupon, or

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