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12 U.S.C.

FARM MORTGAGE LOANS

F.F, L. Act

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(July 17, 1916, c. 245, § 30, 39 Stat. 382; Mar. 27,
1933, Ex. Or. 6084; June 16, 1933, c. 98, 8 80 (a),
48 Stat. 273.)

“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.

8 973

8 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, § 30, 39 Stat. 382; 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,

PENALTIES

8 981

8 31

8

False statements in applications for loans; willful overvaluation of land; acceptance of loan or gratuity by examiners.-Any applicant for a loan under this subchapter, or officer or representative of any such applicant, who shall knowingly make any false statement in the application for such loan, and any member of a loan committee or any appraiser provided for in this subchapter who shåll 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; June 3, 1935, c. 164, $ 21, 49 Stat. 319.)

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8 982

$ 31

30

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 paper issued, or purporting to have been issued, by any such bank or association, knowing the same to be falsely altered or spurious, shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both. (July 17, 1916, c. 245, $ 31, 39 Stat. 382.)

31

8 983

$ 31,

Charging or receiving unauthorized fee or
commission; disclosing names of borrowers.-
Other than the usual salary or director's fee paid to
any officer, director, or employee of a national farm
loan association, a Federal land bank, or a joint
stock land bank, and other than a reasonable fee
paid by such association or bank to any officer,
director, attorney, or employee for services
dered, no officer, director, attorney, or employee
of an association or bank organized under this sub-
chapter shall be a beneficiary of or receive, directly
or indirectly, any fee, commission, gift, or other
consideration for or in connection with any trans-
action or business of such association or bank. No
land bank or national farm loan association organ-
ized under this subchapter shall charge or receive
any fee, commission, bonus, gift, or other considera-
tion not herein specifically authorized. No exam-
iner, public or private, shall disclose the names of
borrowers to other than the proper officers of a
national farm loan association or land bank without

first having obtained express permission in writing
from the Lank Bank Commissioner or from the
board of directors of such association or bank,
except when ordered to do so by a court of compe-
tent jurisdiction or by direction of the Congress of
the United States, or of either House thereof, or
any committee of Congress or of either House duly
authorized. Any person violating any provision
of this paragraph shall be punished by å fine of not
exceeding $5,000 or by imprisonment not exceeding
one year, or both. (July 17, 1916, c. 245, § 31, 39
Stat. 382; June 16, 1933, c. 98, § 80 (a), 48 Stat.
273.)

§ 984

§ 31

Fraud and embezzlement.--Any person connected in any capacity with any national farm loan association, Federal land bank, or joint stock land bank, who embezzles, abstracts, or willfully misapplies any moneys, funds, or credits thereof, or who without authority from the directors draws any order, assigns any note, bond, draft, mortgage, judgment, or decree thereof, or who makes any false entry, in any book, report, or statement of such association or land bank with intent in either case to defraud such institution or any other company, body politic or corporate, or any individual person, or to deceive any officer of a national farm loan association or land bank or any agent appointed to examine into the affairs of any such association or bank, and every person who with like intent aids or abets any officer, clerk, or agent in any violation of this section, shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both. (July 17, 1916, c. 245, § 31, 39 Stat. 382.)

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$ 985

8 31

False pretenses as to character of bonds or coupons.--Any person who shall deceive, defraud, or impose upon, or who shall attempt to deceive, defraud, or impose upon, any person, firm, or corporation by making any false pretense or representation regarding the character, issue, security, or terms of any farm loan bond, or coupon, issued under the terms of this subchapter; or by falsely pretending or representing that any farm loan bond, or coupon, issued under the terms of this subchapter by one class of land banks is a farm loan bond, or coupon, issued by another class of banks ; or by falsely pretending or representing that any farm loan bond, or coupon, issued under the terms

of this subchapter, or anything contained in said
farm loan bond, or coupon, is anything other than,
or different from, what it purports to be on the face
of said bond or coupon, shall be fined not exceeding
$500 or imprisoned not exceeding one year, or both.
(July 17, 1916, c. 245, § 31, 39 Stat. 382.)

The following acts constitute misdemeanors, and the commis-
sion of any such acts subjects any person to fine or imprison-
ment, under the provisions of an Act of May 24, 1926, which are
included in 8 § 583-588 of chapter 5 of Title 12 [U. S. Code] :
For any bank, banking association, trust company, corporation,
association, firm, partnership, or person not organized under the
provisions of chapter 7 of Title 12 [U. S. Code] to advertise or
represent that it_makes Federal farm loans or advertise or
offer for sale as Federal farm loan bonds any bond not issued
under the provisions of chapter_7 of Title 12 [U. S. Code), or
make any use of the word “Federal" or the words "United
States", or any other word or words implying governmental
ownership, obligation or supervision in advertising, or offering
for sale any bond, note, mortgage, or other security not issued by
the Government of the United States or under the provisions
of said chapter 7, or some other act of Congress,

31

$ 986

Detection and arrest of violators. The Secretary of the Treasury is hereby authorized to direct and use the Secret Service Division of the Treasury Department to detect, arrest, and deliver into custody of the United States marshal having jurisdiction, any person or persons violating any of the provisions of sections 981–987. (July 17, 1916, C. 245, $ 31, 39 Stat. 382.)

8 987

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False statements by mortgagee relating to sale of mortgage to Federal land bank; overvaluation of land securing such mortgage.--Any mortgagee who shall knowingly make any false statement in any paper, proposal, or letter, relating to the sale of any mortgage, to any Federal land bank under the provisions of section 781 of this chapter, or any appraiser provided for in this subchapter who shall willfully overvalue any land securing such mortgage, shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding one year, or both. (July 17, 1916, c. 245, $ 31, 39 Stat. 382, June 16, 1933, c. 98, '$ 78, 48 Stat. 272.)

GOVERNMENT DEPOSITS IN LAND BANKS

§ 991

8 32

Interest rate; security; maximum amount.The Secretary of the Treasury is authorized, in his discretion, upon the request of the Farm Credit Administration, to make deposits for the temporary use of any Federal land bank, out of any money in the Treasury not otherwise appropriated. Such Federal land bank shall issue to the Secretary of the

Treasury a certificate of indebtedness for any such
deposit, bearing a rate of interest not to exceed the
current rate charged for other Government de-
posits, to be secured by farm loan bonds or other
collateral, to the satisfaction of the Secretary of the
Treasury. Any such certificate shall be redeemed
and paid by such land bank at the discretion of the
Secretary of the Treasury. The aggregate of all
sums so deposited by the Secretary of the Treasury
shall not exceed the sum of $6,000,000 at any one
time. (July 17, 1916, c. 245, 8 32, 39 Stat. 384; 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.

Federal land banks as depositaries of public money, see § 701 of this chapter.

8 992

§ 32

Government guaranty of interest on qualified Federal land bank bonds issued during limited period; use of proceeds of such bonds; limitation on aggregate amount of such bonds; payment of interest by Government upon inability of issuing bank; rights of Government after such payment.—Until such time as the Land Bank Commissioner determines that Federal farm loan bonds (other than those issued under this paragraph) are readily salable in the open market at a yield not in excess of 4 per centum per annum,

but in no case more than two years after May 12, 1933, Federal land banks may issue farm loan bonds as authorized under this subchapter, for the purpose of making new loans, or for purchasing mortgages or exchanging bonds for mortgages as provided in paragraph "Second” of section 781 of this chapter. The aggregate amount of the bonds issued under this paragraph shall not exceed $2,000,000,000, and such bonds shall be issued in such denominations as the Land Bank Commissioner shall prescribe, shall bear interest at a rate not in excess of 4 per centum per annum, and shall be fully and unconditionally guaranteed as to interest by the United States, and such guaranty shall be expressed on the face thereof. In the event that it shall appear to the Land Bank Commissioner that the issuing bank or banks will be unable to pay upon demand, when due, the interest on any such bonds, the Secretary of the Treasury shall, upon the request of the Commissioner, pay the amount thereof, which is hereby authorized to be appropriated out of any money in the Treasury, not otherwise appropriated. Upon the payment of such interest by the Secretary of

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