12 U. S. C. § 802

Manner of making

F. F. L. Act § 15

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

Who may be employed as agent

F. F. L. Act § 15

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.)

12 U. S. C. § 804

Expenses of and commissions to agents

F. F. L. Act § 15

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

Expenses of agents added to loans

F. F. L. Act § 15

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

Collection of loan payments

F. F. L. Act § 15

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

Indorsement of loans; liability thereon

F. F. L. Act § 15

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thereof, and for any default by the mortgagor, on the same terms and under the same penalties as if the loan had been originally made by said agent as principal and sold by said agent to said land bank, but the aggregate of the unpaid principal of mortgage loans received from any such agent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

When loans to cease

F. F. L. Act § 15

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.)

12 U. S. C. § 810

Joint Stock Land Banks

Restriction against making loans

or issuing bonds after May 12, 1933

E. F. M. Act 1933 § 29

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.)

12 U. S. C. § 811

Organization; directors

F. F. L. Act § 16

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

Individual liability of shareholders

F. F. L. Act § 16

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

Powers, duties, and liabilities; stock

F. F. L. Act § 16

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

Limitation on amount of issue of bonds; transacting unauthorized business

F. F. L. Act § 16

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

Minimum capital stock

F. F. L. Act § 16

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

Issuing bonds before payment of stock

F. F. L. Act § 16

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.)

U

12 U. S. C. § 817

Form of bonds

F. F. L. Act § 16

Farm loan bonds issued by joint stock land banks shall be so engraved as to be readily distinguished in form and color from farm loan bonds issued by Federal land banks, and shall otherwise bear such distinguishing marks as the Farm Credit Administration shall direct. (July 17, 1916, ch. 245, § 16, 39 Stat. 374; Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 818

Interest rates; restrictions on mortgage loans

F. F. L. Act § 16

Joint stock land banks shall not be subject to the provisions of subsection (b) of section 831 of this title as to interest rates on mortgage loans or farm loan bonds, nor to the provisions of subsections first, fourth, sixth, seventh, and tenth of section 771 of this title as to restrictions on mortgage loans: Provided, however, That no loans shall be made which are not secured by first mortgages on farm lands within the State in which such joint stock land bank has its principal office, or within some one State contiguous to such State, except as hereinafter provided. Such joint stock land banks shall be subject to all other restrictions on mortgage loans imposed on Federal land banks in section 771 of this title. (July 17, 1916, ch. 245, § 16, 39 Stat. 374; Mar. 4, 1931, ch. 518, § 1, 46 Stat. 1548.)

12 U. S. C. § 819

Limitation on interest rates

F. F. L. Act § 16

Joint stock land banks shall in no case charge a rate of interest on farm loans exceeding by more than 1 per centum the rate of interest established for the last series of farm loan bonds issued by them. (July 17, 1916, ch. 245, § 16, 39 Stat. 374.)

12 U. S. C. § 820

Unauthorized commissions or charges

F. F. L. Act § 16

Joint stock land banks shall in no case demand or receive, under any form or pretense, any commission or charge not specifically authorized in this chapter. (July 17, 1916, ch. 245, § 16, 39 Stat. 374.)

12 U. S. C. § 821

F. F. L. Act § 16

Bonds; form and contents

Each joint stock land bank organized under this chapter shall have authority to issue bonds based upon mortgages taken by it in accordance with the terms of this chapter. Such bonds shall be in form prescribed

bonds that such bank is organized under sections 811-824 of this title, is under Federal supervision, and operates under the provisions of this chapter. (July 17, 1916, ch. 245, § 16, 39 Stat. 374; Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 822

Voluntary liquidation

F. F. L. Act § 16

Any joint stock land bank organized and doing business under the provisions of this chapter may go into voluntary liquidation by making provision, to be approved by the Farm Credit Administration, for the payment of its liabilities: Provided, That such method of liquidation shall have been duly authorized by a vote of at least two-thirds of the shareholders of such joint stock land bank at a regular meeting, or at a special meeting called for that purpose, of which at least ten days' notice in writing shall have been given to stockholders. (July 17, 1916, ch. 245, § 16 (par.), as added May 29, 1920, ch. 215, 41 Stat. 691, and amended Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 823

Assets of liquidating bank; purchase by Federal or joint stock land bank; assumption of liabilities

F. F. L. Act § 16

For the purpose of assisting in any such liquidation authorized as in section 822 of this title provided, any Federal land bank or joint stock land bank may, with the approval of the Farm Credit Administration, acquire the assets and assume the liabilities of any joint stock land bank, and in such transaction any Federal land bank may waive the provisions of this chapter requiring such bank to acquire its loans only through national farm loan associations or agents, and those relating to status of borrower, purposes of loan, and also the limitation as to the amount of individual loans. No Federal land bank shall assume the obligations of any joint stock land bank in such manner as to make its outstanding obligations more than twenty times its capital stock except by creation of a special reserve equal to one-twentieth of the amount of such additional obligations assumed. No joint stock land bank shall assume the obligations of any other joint stock land bank in such manner as to make its outstanding obligations more than fifteen times the amount of its capital and surplus except by creation of a special reserve equal to one-fifteenth of the amount of such additional obligations assumed. (July 17, 1916, ch. 245, § 16 (pars.), as added May 29, 1920, ch. 215, 41 Stat. 691, and amended Mar. 4, 1925, ch. 524, § 5, 43 Stat. 1263; Ex. Ord. No. 6084, Mar. 27, 1933.)