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and shall be issued in series of not less than $50,000,
the amount and terms to be fixed by the Farm
Credit Administration. They shall bear a rate of
interest not to exceed 52 per centum per annum,
but no bonds issued or sold after June 30, 1923, shall
bear a rate of interest to exceed 5 per centum per
annum. (July 17, 1916, c. 245, § 20, 39 Stat. 377;
Apr. 20, 1920, c. 154, § 5, 41 Stat. 571; Mar. 4, 1921,
c. 151, 41 Stat. 1362; Aug. 13, 1921, c. 63, 42 Stat.
159; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was sub-
stituted for "Federal Farm Loan Board" pursuant to the Execu-
tive Order cited thereto, which is set out in full at the beginning
of this chapter.

Rules and regulations as to payment. The Farm Credit Administration shall prescribe rules and regulations concerning the circumstances and manner in which farm loan bonds shall be paid and retired under the provisions of this chapter. (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.

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.)

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

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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.)

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"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.

Effective July 1, 1935, the permanent appropriation provided for in this section was repealed by Act June 26, 1934, c. 756, 8 1, 48 Stat. 1224. See section 725 (b) of Title 31, U. S. Code.

SPECIAL PROVISIONS OF FARM LOAN BONDS Land banks as bound by acts of officers and Farm Credit Administration in issue of bonds.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.

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 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; action of directors respecting bond liability.-Every Federal land bank shall by appropriate action of its board of di

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rectors, 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.)

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 that all Federal land banks are liable for the payment of each bond. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Apr. 20, 1920, c. 154, § 6, 41 Stat. 571; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, §§ 75 (b), 80 (a), 48 Stat. 271, 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.

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.)

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

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be either written or engraved thereon and shall re-
cite 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.)

Consolidated bonds; where 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.)

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.)

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, 89 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.)

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

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FARM MORTGAGE LOANS

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 (b), 80 (a) 48 Stat. 271, 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.

Farm loan bonds, special provisions of; con-
solidated bonds; participation of Federal land
bank in issue; collateral.-

(a) Approval of issue requisite; collateral to be
held separate from collective security for indi-
vidual 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 be-
half of such issue and tender to the registrar ap-
proved 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 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 previously issued or assumed
individually by the Federal land bank of his dis-
trict. Amortization and other payments on the
principal of first mortgages held by a farm loan
registrar as collateral security for the issue of con-
solidated farm loan bonds shall constitute 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, 89

F. F. L. Act

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