Page images
PDF
EPUB

$ 781

[ocr errors]

or duly authorized agents, to collect and im-
mediately pay over to said land banks the dues,
interest, amortization installments, and other sums
payable under the terms, conditions, and cove-
nants of the mortgages and of the bonds secured
thereby. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)

Fourth. Acquiring and disposing of property-
To acquire and dispose of

(a). Such property, real or personal, as may
be necessary or convenient for the transaction
of its business, which, however, may be in part
leased to others for revenue purposes.

(6) Parcels of land acquired in satisfaction of debts or purchased at sales under judgments, decrees, or mortgages held by it. But no such bank shall hold title and possession of any real estate purchased or acquired to secure any debt due to it, for a longer period than 5 years, except with the special approval of the farm Credit Administration in writing. Every such bank may carry real estate as an asset, for a period of not exceeding 5 years, at its normal value but not to exceed the amount of the bank's investment therein at the time of acquirement of such real estate. (July 17, 1916, c. 245, § 13, 39 Stat. 872; Mar. 4, 1933, c. 270, § 3, 47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.)

Fifth Depositing securities and funds with reserve banks.-To deposit its securities and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed. (July 17, 1916, c. 245, $ 13, 39 Stat. 372.)

Sixth. Receiving deposits from associations.-To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits. (July 17, 1916, c. 245, $ 13, 39 Stat. 372.)

Seventh. Borrowing money.-To borrow money, to give security therefor, and to pay interest thereon. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)

Eighth. Buying and selling United States bonds.-To buy and sell United States bonds. (July 17, 1916, c. 245, $ 13, 39 Stat. 372.)

Ninth. Charging fees for loans.—To charge ap. plicants for loans and borrowers, under rules and regulations promulgated by the Farm Credit Administration, reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by law in

8 781

8 13

[ocr errors]

the State where the land to be mortgaged is located
may also be included in the preliminary costs of
negotiating mortgage loans. The borrower may
pay such fees and charges or he may arrange with
the Federal land bank making the loan to advance
the
same,

in which case said expenses shall be made
a part of the face of the loan and paid off in amor-
tization payments. Such addition to the loan
shall not be permitted to increase said loan above
the limitations provided in section 771 of this
chapter. (July 17, 1916, c. 245, $ 13, 39 Stat. 372;
Mar. 27, 1933, Ex. Or. 6084.)

Tenth. Extension of obligations unpaid under terms of mortgages.When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. The sum of $25,000,000 of the amount authorized to be appropriated under section 698 of this chapter shall be used exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this paragraph. The terms of any such extension shall be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension made prior to the expiration of five years from May 12, 1933 or in the case of any deferment of principal as provided in paragraph “Twelfth” of section 771 of this chapter, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by the bank with the approval of the Commissioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscriptions to the paidin surplus of the Federal land banks, there is

[ocr errors][merged small]

on

For interest rate
"Twelfth" of this section.

may

8 781 hereby authorized to be appropriated the sum of

$50,000,000, to be immediately available and re-
main available until expended. Upon payment
to any Federal land bank of the amount of any
such subscription, such bank shall execute and
deliver a receipt therefor to the Secretary of the
Treasury in form to be prescribed by the Land Bank
Commissioner. The amount of any subscriptions
to the paid-in surplus of any such bank may be
repaid in whole or in part at any time in the discre-
tion of the bank and with the approval of the Land
Bank Commissioner, and the Commissioner
at any time require such subscriptions to be repaid
in whole or in part if in his opinion the bank has

available therefor. (July 17, 1916,
c. 245, $ 13, 39 Stat. 372; Jan. 23, 1932, c. 9,
8 5, 47 Stat. 14; May 12, 1933, c. 25, § 23, 48 Stat.
43; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273.)

extended payments, see paragraph Eleventh. Postponement of payment of installments of loans.-At any time within five years after March 4, 1933, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approval of such application by the directors of the bank postpone the payment of any unpaid installment or installments in the manner herein provided in this section. Such postponed payment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed payment, and, in the case of semiannual installments, by paying at the time each succeeding semiannual installment is due, one-twentieth of the postponed payment, until the amount of such postponed payment has been paid. In any case in which the number of remaining installments due on the mortgage is less than ten, in the case of annual installments, or less than twenty, in the case of semiannual installments, the amount of the postponed payment shall be distributed proportionately over the remaining number of installment payments. (July 17, 1916, c. 245, $ 13, 39 Stat. 372; Mar. 4, 1933, c. 270, $4, 47 Stat. 1548.)

Twelfth. Interest rate; on extended payments, on taxes, liens, etc., paid by mortgagee. For the period of five years after March 4, 1933, every borrower shall pay simple interest on extended payments at the same rate of interest as stipulated in the mort

8 781

13

gage securing the loan as to payments not in default
and by express covenant in his mortgage deed shall
undertake to pay when due all taxes, liens, judg-
ments, or assessments which may be lawfully as-
sessed' against the land mortgaged. Taxes, liens,
judgments, or assessments not paid when due, and
paid by the mortgagee, shall become a part of the
mortgage debt and shall bear interest at the rate
provided in the mortgage. (July 17, 1916, c. 245, $
13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 4, 47 Stat.
1548.)

Thirteenth. Reamortization of mortgages.-When
in the judgment of the directors conditions justify
it, and with the approval of the Farm Credit
Administration, to reamortize, in whole or in part,
the aggregate amount remaining unpaid under the
terms of any mortgage, and to accept payment of
such aggregate amount on an amortization plan by
means of a fixed number of annual or semiannual
installments sufficient to cover the interest payable
on the mortgage, and in addition thereto such
amounts to be applied upon the principal as will
extinguish the debt within an agreed period of not
more than forty years from the date of the reamor-
tization; to deposit such mortgages with the farm
loan registrar as collateral security for farm loan
bonds at an amount not exceeding the principal of
the original loan remaining unpaid at the date of
such amortization; and with the approval of the
Farm Credit Administration to charge the bor-
rower an amount not to exceed the actual cost
incurred in connection with such reamortization.
(July 17, 1916, c. 245, $ 13, 39 Stat. 372; Mar. 4,
1933, c. 270, 84, 47 Stat. 1548; Mar. 27, 1933, Ex.
Or. 6084.)

Fourteenth. Agreements to share gains and losses with associations. To enter into agreements with national farm loan associations of the district under the terms of which losses incurred and gains realized on account of the disposition of lands covered by a defaulted mortgage indorsed by such association will be shared equally by the bank and the association. (July 17, 1916, c. 245, § 13, 39 Stat. 372; June 16, 1933, c. 98, 8 79, 48 Stat. 272.)

Fifteenth. 'Exchange for and purchase of Federal Farm Mortgage Corporation bonds.—To exchange farm loan bonds for Federal Farm Mortgage Corporation bonds of equal face value, and to purchase Federal Farm Mortgage Corporation bonds at or below par. (July 17, 1916, c. 245, 8 13, 39 Stat. 872; Jan. 31, 1934, c. 7, § 8 (a), 48 Śtat. 347.)

Sixteenth. Exchange of Federal Farm Mortgage Corporation bonds for farm loan bonds. To exchange Federal Farm Mortgage Corporation bonds for farm loan bonds of equal face value. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Jan. 31, 1934, c. 7, 8 8 (a), 48 Stat. 347.)

"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,

Federal land banks authorized to make their services and facilities available to Land Bank Commissioner to aid in adminiştering subchapter II of this chapter. See § 1018 of this chapter.

RESTRICTIONS ON FEDERAL LAND BANKS

[ocr errors][merged small]

§ 14

Enumeration of restrictions.-No Federal land bank shall have power

First. Limiting deposits.—To accept deposits of current funds payable upon demand except from its own stockholders, or to transact any banking or other business not expressly authorized by the provisions of this subchapter. (July 17, 1916, c. 245, $ 14, 39 Stat. 372.)

Second. Loaning on first mortgages except through associations. To loan on first mortgage except through national farm loan associations as provided in sections 711-722 and sections 731-734 of this chapter [secs. 7 and 8 of the Federal Farm Loan Act, as amended), or through agents as provided in sections 801-808 of this chapter, or direct to borrowers as provided in section 723. (July 17, 1916, c. 245, $ 14, 39 Stat. 372; Mar. 4, 1933, c. 270, 8 5 (a), 47 Stat. 1549.)

Third. Accepting other than first mortgages.To accept any mortgages on real estate except first mortgages created subject to all limitations imposed by sections 771-773 of this chapter, and those taken as additional security for existing loans. (July 17, 1916, c. 245, $ 14, 39 Stat. 372.)

Fourth. Issuing excess of bonds; receiving excess
of mortgages from associations.To issue or obli-
gate itself for outstanding farm loan bonds (includ-
ing consolidated bonds issued on is behalf) in ex-
cess of twenty times the amount of its capital and
surplus, or to receive from any national farm loan
association additional mortgages when the princi-
pal remaining unpaid upon mortgages already re-
ceived from such association shall exceed twenty
times the amount of its capital stock owned by such
association. (July 17, 1916, c. 245, § 14, 39 Stat. 372;
June 16, 1933, c. 98, § 75 (a), 48 Stat. 271.)

Fifth. Demanding unauthorized commissions.-
To demand or receive, under any form or pretense,

« PreviousContinue »