8952 & 953 of the banks and associations permitted to do busi- "Farm Credit Administration" mentioned in the text was sub- Requirements, responsibilities, and penalties applicable to examiners; examinations; reports.-Land bank examiners shall be subject to the same requirements, responsibilities, and penalties as are applicable to national bank examiners under chapters 2 and 3 of Title 12 [U. S. Code] and other provisions of law. Whenever directed by the Farm Credit Administration, said examiners shall examine the condition of any national farm loan association and report the same to the Land Bank Commissioner. They shall examine and report the condition of every Federal land bank and joint stock land bank at least twice each year. (July 17, 1916, c. 245, § 28, 39 Stat. 881; 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. Salaries of examiners.-Land bank examiners "Farm Credit Administration" mentioned in the text was substi- § 28 8 28 8 961 DISSOLUTION AND APPOINTMENT OF RECEIVERS National farm loan associations; institution and conduct of receivership; duties and powers of receivers. Upon receiving satisfactory evidence that any national farm loan association has failed to meet its outstanding obligations of any description the Farm Credit Administration may forthwith declare such association insolvent and appoint a receiver and require of him such bond and security as it deems proper: Provided, That no national farm loan association shall be declared insolvent by 8 29 said administration until the total amount of de- "Farm Credit Administration" and "administration" mentioned $ 962 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. 8 29 § 963 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 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 29 § 963a 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 Corporation 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" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. $ 964 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 8 29 canceled stock. Whenever the capital stock of a "Farm Credit Administration" mentioned in the text was sub- 8 965 Voluntary 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. Ór. 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. § 29 § 966 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, § 29 8 971 § 972 which may enforce the same as fully as the associa- STATE LEGISLATION IMPAIRING SECURITY OF 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 as 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 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, § 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 for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. 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. 8 30 8 30 |