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12 U. S. C. $ 817

F. F. L. Act § 16

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Form of bonds

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

F. F. L. Act $ 16

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Interest rates; restrictions on mortgage loans

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.)

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12 U. S. C. $ 819

F. F. L. Act § 16

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Limitation on interest rates

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.)

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12 U. S. C. $ 820

F. F. L. Act § 16

Unauthorized commissions or charges

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

F. F. L. Act $ 16

Voluntary liquidation

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

F. F. L. Act § 16

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

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.)

12 U. S. C. $ 824

F. F. L. Act § 16

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Insolvency; receivership; acquisition
of assets by other banks; loans by acquiring
bank in additional States

In any case where a joint stock land bank has been, or may be, declared insolvent and placed in the hands of a receiver by the Farm Credit Administration, any Federal land bank or joint stock land bank may, in the manner as may be prescribed by the Farm Credit Administration and with the approval of the Farm Credit Administration, acquire the assets and assume the liabilities of said joint stock land bank in the hands of a receiver. Any joint stock land bank which has acquired or may hereafter acquire the assets and which has assumed or may hereafter assume the liabilities of another joint stock land bank may, if authorized by the Farm Credit Administration, make loans secured by first mortgages on farm lands within the States in which the other joint stock land bank was authorized to make loans at the time of such acquisition, and the acquiring bank may, with the approval of the Farm Credit Administration, continue to make loans in the States where it was authorized to make loans at the time of such acquisition: Provided, however, That the acquiring bank shall not be authorized to make loans at any one time in more than five States, of which one shall be the State in which the bank has its principal office, one shall be contiguous to such State, the other shall be the States in which the acquired joint stock land banks were authorized to make loans at the time of such acquisition, and all of said five States shall be situated in contiguous territory. (July 17, 1916, ch. 245, § 16 (par.), as added Mar. 4, 1931, ch. 518, § 2, 46 Stat. 1548, and amended Ex. Ord. No. 6084, Mar. 27, 1933.)

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Powers of Farm Credit Administration

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12 U. S. C. $ 831

F. F. L. Act $ 17

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Enumeration

The Farm Credit Administration shall have power--
la) Organizing and chartering banks and loan associations;
authorizing increase of stock

To organize and charter Federal land banks, and to charter national
farm loan associations and joint stock land banks subject to the provisions
of this subchapter, and in its discretion to authorize them to increase
their capital stock.
(b) Reviewing and altering interest rates

To review and alter at its discretion the rate of interest to be charged by Federal land banks for loans made by them under the provisions of

(c) Granting or refusing authority to issue bonds.

To grant or refuse to Federal land banks, or joint stock land banks, authority to make any specific issue of farm loan bonds. (d) Making rules and regulations as to charges on loans

To make rules and regulations respecting the charges made to borrowers on loans under this subchapter for expenses in appraisal, determination of title, and recording. (e) Requiring reports, etc.; examining banks and associations

To require reports and statements of condition and to make examinations of all banks or associations doing business under the provisions of this subchapter. (f) Prescribing form and terms of bonds and surety bonds

To prescribe the form and terms of farm loan bonds, and the form, terms, and penal sums of all surety bonds required under this subchapter and of such other surety bonds as they shall deem necessary, such surety bonds to cover financial loss as well as faithful performance of duty. (g) Regulating payments between banks

To require Federal land banks to pay forthwith to any Federal land bank their equitable proportion of any sums advanced by said land bank to pay the coupons of any other land bank, basing said required payments on the amount of farm loan bonds issued by each land bank and actually outstanding at the time of such requirement. (h) Suspending or removal of directors, registrars, appraisers, and examiners

To suspend or to remove for cause any district director or director at large, or any registrar, appraiser, examiner, or other official appointed by the Farm Credit Administration under authority of sections 651, 656, and 658–664 of this title, the cause of such suspension or removal to be communicated forthwith in writing by said Administration to the person suspended or removed, and in case of a district director or director at large to the proper Federal land bank, Federal intermediate credit bank, production credit corporation and regional bank for cooperatives. (i) Exercising supervisory authority over banks

To exercise general supervisory authority over the Federal land banks, the national farm loan associations, and the joint stock land banks herein provided for.

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(1) Incidental powers

To exercise such incidental powers as shall be necessary or requisite to fulfill its duties and carry out the purposes of this subchapter. (July 17, 1916, ch. 245, § 17,39 Stat. 375; Ex. Ord. No. 6084, Mar. 27, 1933; Aug. 19, 1937, ch. 704, $ 9,50 Stat. 707.)

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12 U. S. C. $ 832

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Allocation of expenses of administrative
services rendered each year by Farm Credit
Administration to certain banking institutions;
disposition of moneys

(a) The Farm Credit Administration shall, prior to the first day of each fiscal year commencing after June 30, 1944, estimate for the ensuing fiscal year the cost of examinations of the Federal land banks, national farm loan associations, banks for cooperatives, Central Bank for Cooperatives, Federal intermediate credit banks, and production credit associations; shall apportion the amount so determined among the Federal land banks, national farm loan associations, banks for cooperatives,

, Central Bank for Cooperatives, Federal intermediate credit banks, and production credit associations on such equitable basis as said Administration shall determine; and shall assess against and collect in advance the amount so apportioned from the banks, and other organizations among which the apportionment is made, except that the amounts apportioned to national farm loan associations shall be assessed against and collected from the Federal land bank of the district which may in turn collect such amounts from the associations in a manner approved by the Farm Credit Administration.

(b) The Farm Credit Administration shall, prior to the first day of each fiscal year commencing after June 30, 1944, estimate the cost to it for the ensuing fiscal year of the administrative supervision of the Federal land bank system, the banks for cooperatives, the Central Bank for Cooperatives, the Federal intermediate credit banks, and the production credit system; shall apportion the amount so determined among the Federal land banks, the banks for cooperatives, the Central Bank for Cooperatives, and the Federal intermediate credit banks on such equitable basis as said Administration shall determine; and shall assess against and collect in advance from such banks the amount so apportioned.

(c) The amounts collected pursuant to subsections (a) and (b) of this section shall be covered into the Treasury, and credited to a special fund, which fund is authorized to be appropriated to said Administration for expenditure during each fiscal year for salaries and expenses applicable to examination and administrative supervision as set forth in the annual appropriation made for the same fiscal year for salaries and expenses of said Administration. As soon as practicable after the end of each such fiscal year, said Administration shall determine on a fair and

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