pensation or allowances for any services rendered "Farm Credit Administration" mentioned in the text was sub- 8 691 CAPITAL STOCK OF FEDERAL LAND BANKS 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 5 § 692 § 693 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. 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.) 8 5 8 5 § 694 8 695 § 696 Dividends; voting stock.-Stock owned by the Stock issued to the United States under the provisions of § 698 "Farm Credit Administration" mentioned in the text was sub- Subscriptions to original stock; subscriptions "Farm Credit Administration" mentioned in the text was sub- Retirement of original stock.-After the subscriptions to capital stock by national farm loan associations shall amount to $750,000 in any Federal 8 5 § 697 8 698 land bank, said bank shall apply semiannually to Proportion held in quick assets. At least twenty-five 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 Ünited 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. Subscriptions 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 board of directors. of any Federal land bank made with the approval of the Farm Credit Administration, to subscribe from time to time for capital stock of such bank in an amount or amounts specified in such approval or approvals, such subscriptions to be subject to call in whole or in part by the board of directors of said bank upon thirty days' notice with the approval of the Farm Credit Administration. The Secretary of the Treasury is hereby authorized and directed to take out and pay for shares having an aggregate par value equal to the amounts so called; and to enable the Secretary of the Treasury to pay for stock issued hereunder there is hereby authorized to be appropriated the sum of $125,000,000, such stock to be nonvoting. Shares of stock issued pursuant to this section shall be paid off at 8 5 8 5 par and retired in the same manner as the original capital stock of said bank after said original stock outstanding, if any, has been paid off and retired: Provided, however, That stock issued pursuant to this section may at any time, in the discretion of the directors and with the approval of the Farm Credit Administration, be paid off at par and retired in whole or in part; and that said Administration may at any time require such stock to be paid off at par and retired in whole or in part if in the opinion of the Administration the bank has resources available therefor. The proceeds of all repayments on account of stock issued pursuant to this section shall be held in the Treasury of the United States and shall be available for the purpose of paying for other stock thereafter issued pursuant to this section. (July 17, 1916, c. 245, 5, 39 Stat. 364; Jan. 23, 1932, c. 9, § 2, 47 Stat. 12; 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. § 701 LAND BANKS AS GOVERNMENT DEPOSITARIES Federal and joint stock land banks as Gov- Special deposits for temporary use, see § 991 of this chapter. 8 6 8 711 § 712 NATIONAL FARM LOAN ASSOCIATIONS GENERALLY Organization; articles of association; signature; copies for land banks.-Corporations, to be known as national farm loan associations, may be organized by persons desiring to borrow money on farm mortgage security under the terms of this subchapter. Such persons shall enter into articles. of association which shall specify in general terms the object for which the association is formed and the territory within which its operations are to be carried on, and which may contain any other provision, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. Said articles shall be signed by the persons uniting to form the association, and a copy thereof shall be forwarded to the Federal land bank for the district, to be filed and preserved in its office. (July 17, 1916, c. 245, § 7, 39 Stat. 365.) Directors; officers; loan committee.-Every national farm loan association shall elect, in the manner prescribed for the election of directors of national banking associations, a board of not less than five directors, who shall hold office for the same period as directors of national banking associations. It shall be the duty of said board of directors to choose in such manner as they may prefer a secretary-treasurer, who shall receive such compensation as said board of directors shall determine. The board of directors shall elect a president, a vice president, and a loan committee of three members. (July 17, 1916, c. 245, § 7, 39 Stat. 365.) The National Banking Act provides, with respect to the term of office of directors of national banking associations, that they "shall hold office for one year, and until their successors are elected and have qualified." & 7 87 § 713 Compensation and qualifications of directors. The directors and all officers except the secretary-treasurer shall serve without compensation, unless the payment of salaries to them shall be approved by the Farm Credit Administration. All officers and directors except the secretary-treasurer shall, during their term of office, be bona fide residents of the territory within which the association is 8 7 |