Page images
PDF
EPUB
[ocr errors][ocr errors][ocr errors][ocr errors]

for other purposes for a period not exceeding five years under regulations prescribed by the Farm Credit Administration.

Twentieth. Purchasing assets of Federal Farm Mortgage Corporation.-Without regard to any limitations or restrictions of this subchapter, to purchase all assets, except cash, accounts receivable, and reserved mineral interests, held by the Federal Farm Mortgage Corporation as a result of loans made on or before July 1, 1947, in the farm credit district in which said bank is situated and to assume the liabilities of said Corporation for future payment funds of borrowers and trust accounts applicable to said assets. The purchase price of notes and mortgages, purchase money mortgages, and real estate sales contracts shall be equal to the total of the unpaid balances on such items and accrued interest thereon at the date as of which purchase is made, less the total of the liabilities of the Corporation being assumed by the bank as herein provided. The purchase price of real estate, sheriffs' certificates, loans called for foreclosure, loans in suspense, judgments, and any other assets eligible for purchase under this paragraph but not specifically identified herein shall be equal to the fair market value of the assets as determined by agreement. The total consideration for the purchase shall be payable over a period of not more than ten years from the date as of which purchase is made, and upon such terms as shall be agreed upon through negotiation with the Board of Directors of the Corporation. (July 17, 1916, ch. 245, § 13,39 Stat. 372; Jan. 23, 1932, ch. 9, § 5, 47 Stat. 14; Mar. 4, 1933, ch. 270, $$ 3, 4, 47 Stat. 1548; Ex. Ord. No. 6084, Mar. 27, 1933; May 12, 1933, ch. 25, title II, $$ 22, 23, 48 Stat. 42, 43; June 16, 1933, ch. 98, title VII, § 79, title VIII, § 80 (a), Stat. 272, 273; Jan. 31, 1934, ch. 7, § 8 (a), 48 Stat. 347; Aug. 19, 1937, ch. 704, SS 5 (a), 15 (a), (b), 16, 17, 19,50 Stat. 704, 708, 709; June 30, 1945, ch. 204, $$ 5–7,59 Stat. 267; Oct. 29, 1949, ch. 786, § 3, 63 Stat. 986; June 1, 1955, ch. 117,69 Stat. 81; Aug. 11, 1955, ch. 785, title III, § 305, 69 Stat. 665; July 26, 1956, ch. 741, title I, § 104 (e), 70 Stat. 664.)

Abolishment of office of Land Bank Commissioner, see section 636f (a) of this title.

48

Restrictions on Federal Land Banks

12 U. S. C. $ 791

F. F. L. Act § 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 bank

[ocr errors][merged small]
[ocr errors]

rtgagé пе еді? interas

of the in pra

loans other ically

ets as chase

date Eredd tion. 5,47 No. tat.

48 37 NE 3, 5,

ing or other business not expressly authorized by the provisions of this
subchapter.

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 731—734 of this title, or through
agents as provided in sections 801-808 of this title, or direct to
borrowers as provided in section 723 of this title.

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 and 772 of this title, and those taken as additional security for existing loans.

Fourth. Issuing excess of bonds; receiving excess of mortgages from associations.—To issue or obligate itself for outstanding farm loan bonds (including consolidated bonds issued on its behalf) in excess of twenty times the amount of its capital and surplus, or to receive from any national farm loan association additional mortgages when the principal remaining unpaid upon mortgages already received from such association shall exceed twenty times the amount of its capital stock owned by such association.

Fifth. Demanding unauthorized commissions.—To demand or receive, under any form or pretense, any commission or charge not specifically authorized in this subchapter.

Sixth. Accepting mortgages on personal property exempt from execution.—To accept as additional security for any loan to any borrower under this subchapter, or any installment on any such loan, any personal property which is exempt from execution upon judgment under the laws of the State in which the land with respect to which the mortgage is given is situated. (July 17, 1916, ch. 245, § 14,39 Stat. 372; Mar. 4, 1933, ch. 270, $ 5 (a), (b), 47 Stat. 1549; June 16, 1933, ch. 98, title VII, $$ 71, 75 (a), 48 Stat. 271.)

Loans by Federal Land Banks Through Agents

12 U. S, C. $ 801

F. F. L. Act § 15

Loans; when authorized

Whenever it shall appear to the Farm Credit Administration that national farm loan associations have not been formed, and are not likely to be formed, in any locality, because of peculiar local conditions, said administration may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said administration. (July 17, 1916, ch. 245, § 15, 39 Stat. 373; Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. $ 802

F. F. L. Act $ 15

Manner of making

Loans authorized by section 801 of this title shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute 5 per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. (July 17, 1916, ch. 245, § 15,39 Stat. 373.)

12 U. S. C. $ 803

F. F. L. Act $ 15

Who may be employed as agent

No agent other than a duly incorporated bank, trust company, mortgage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of sections 801-808 of this title. (July 17, 1916, ch. 245, § 15, 39 Stat. 373.)

[ocr errors]

12 U. S. C. $ 804

F. F. L. Act $ 15

Expenses of and commissions to agents

Federal land banks may pay to such agents the actual expense of appraising the land offered as security for a loan, examining and certifying the title thereof, and making, executing, and recording the mortgage papers; and in addition may allow said agents not to exceed one-half of 1 per centum per annum upon the unpaid principal of said loan, such commission to be deducted from dividends payable to the borrower on his stock in the Federal land bank. (July 17, 1916, ch. 245, § 15, 39 Stat. 373.)

12 U. S. C. $ 805

F. F. L. Act § 15 Expenses of agents added to loans

Actual expenses paid to agents under the provisions of sections 801808 of this title shall be added to the face of the loan and paid off in amortization payments subject to the limitations provided in subsection ninth of section 781 of this title. (July 17, 1916, ch. 245, $ 15,39 Stat. 373.)

12 U. S. C. $ 806

F. F. L. Act § 15

Collection of loan payments

Said agents, when required by the Federal land banks, shall collect and forward to such banks without charge all interest and amortization payments on loans indorsed by them. (July 17, 1916, ch. 245, $ 15,39 Stat. 373.)

12 U. S. C. $ 807

F. F. L. Act $ 15

ct to ugh: te 5 id ba banka 39 Sta

Indorsement of loans; liability thereon

Any agent negotiating any such loan shall indorse the same and become liable for the payment thereof, and for any default by the mortgagor, on the same terms and under the same penalties as if the loan had been originally made by said agent as principal and sold by said agent to said land bank, but the aggregate of the unpaid principal of mortgage loans received from any such agent shall not exceed 10 times its capital and surplus. (July 17, 1916, ch. 245, § 15, 39 Stat. 373.)

12 U. S. C. $ 808

F. F. L. Act $ 15

mort hich i 'ction :)

When loans to cease

If at any time the district represented by any agent under the provisions of sections 801—808 of this title shall, in the judgment of the Farm Credit Administration, be adequately served by national farm loan associations, no further loans shall be negotiated therein by agents under said sections. (July 17, 1916, ch. 245, § 15, 39 Stat. 373; Ex Ord. No. 6084, Mar. 27, 1933.)

$ 15

Joint Stock Land Banks

fapo

12 U. $. C. $ 810

E. F. M. Act 1933 $ 29

ying gage f of uch

On 39

Restriction against making loans
or issuing bonds after May 12, 1933

After May 12, 1933, no joint stock land bank shall issue any taxexempt bonds or make any farm loans except such as are necessary and incidental to the refinancing of existing loans or bond issues or to the sale of any real estate now owned or hereafter acquired by such bank. (May 12, 1933, ch. 25, title II, § 29, 48 Stat. 46.)

5

12 U. S. C. $ 811

F. F. L. Act § 16

Organization; directors

Corporations, to be known as joint stock land banks, for carrying on the business of lending on farm mortgage security and issuing farm loan bonds, may be formed by any number of natural persons not less than ten. They shall be organized subject to the requirements and under the conditions set forth in sections 672 and 673–677a of this title, so far as the same may be applicable: Provided, That the board of directors of every joint stock land bank shall consist of not less than five mem

12 U. S. C. $ 812

F. F. L. Act $ 16

Individual liability of shareholders

Shareholders of every joint stock land bank organized under this chapter shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of stock owned by them at the par value thereof, in addition to the amount paid in and represented by their shares. (July 17, 1916, ch. 245, § 16, 39 Stat. 374.)

12 U. S. C. $ 813

F. F. L. Act $ 16

Powers, duties, and liabilities; stock

Except as otherwise provided, joint stock land banks shall have the powers of, and be subject to all the restrictions and conditions imposed on, Federal land banks by this chapter, so far as such restrictions and conditions are applicable: Provided, however, That the Government of the United States shall not purchase or subscribe for any of the capital stock of any such bank; and each shareholder of any such bank shall have the same voting privileges as holders of shares in national banking associations. (July 17, 1916, ch. 245, § 16, 39 Stat. 374.)

12 U. S. C. $ 814

F. F. 1. Act $ 16

Limitation on amount of issue of bonds; transacting unauthorized business

No joint stock land bank shall have power to issue or obligate itself for outstanding farm loan bonds in excess of fifteen times the amount of its capital and surplus, or to receive deposits or to transact any banking or other business not expressly authorized by the provisions of this chapter. (July 17, 1916, ch. 245, $ 16,39 Stat. 374.)

12 U. S. C. $ 815

F. F. L. Act § 16

Minimum capital stock

No joint stock land bank shall be authorized to do business until capital stock to the amount of at least $250,000 has been subscribed, one-half thereof paid in cash, and the balance subject to call by the board of directors, and a charter has been issued to it by the Farm Credit Administration. (July 17, 1916, ch. 245, § 16,39 Stat. 374; Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. $ 816

F. F. L. Act § 16

Issuing bonds before payment of stock

No joint stock land bank shall issue any bonds until after the capital stock is entirely paid up. (July 17, 1916, ch. 245, § 16, 39 Stat. 374.)

« PreviousContinue »