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12 U. S. C. § 876

Same; signature and attestation;

joint and several obligations; recitals

F. F. L. Act § 21

Every bond so issued shall be signed by the Land Bank Commissioner and attested by any deputy land bank commissioner, and their signatures may be either written or engraved thereon and shall recite in the face of the bond the fact that it is the joint and several obligation of the twelve Federal land banks, and shall in all respects be governed by the provisions of the Federal Farm Loan Act not inconsistent herewith. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended June 16, 1933, ch. 98, title VIII, §§ 80 (a), 81, 48 Stat. 273.)

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

title.

12 U. S. C. § 877

Same; where payable

F. F. L. Act § 21

The consolidated bonds issued under sections 874-886 of this title shall be made payable at any Federal land bank, and may be made payable at any Federal reserve bank or banks designated in the face of the bond. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476.)

12 U. S. C. § 878

Same; act of Commissioner binding on banks

F. F. L. Act § 21

Each Federal land bank on whose behalf consolidated bonds shall be issued under sections 874-886 of this title shall in all respects be bound by the act of the Land Bank Commissioner and any deputy land bank commissioner. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended Mar. 4, 1925, ch. 524, § 6, 43 Stat. 1264; June 16, 1933, ch. 98, title VIII, §§ 80 (a), 81, 48 Stat. 273.)

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

title.

12 U. S. C. § 879

Same; action of directors

respecting bond liability

F. F. L. Act § 21

Every Federal land bank, before participation in a consolidated issue, as herein provided, shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on Federal farm loan bonds as provided in sections 871-886 of this title, and be

bound by the action of the Land Bank Commissioner and any deputy land bank commissioner in executing the same. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended June 16, 1933, ch. 98, title VIII, §§ 80 (a), 81, 48 Stat. 273.)

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

title.

12 U. S. C. § 880

Certificate of Land Bank Commissioner

F. F. L. Act § 21

Every farm loan bond issued hereunder shall contain on the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of Title I of the Federal Farm Loan Act, has the approval in form and issue of the Farm Credit Administration, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security prescribed by the Federal Farm Loan Act, as amended, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended Ex. Ord. No. 6084, Mar. 27, 1933; June 16, 1933, ch. 98, title VII, § 75 (b), title VIII, § 80 (a), 48 Stat. 271, 273; June 30, 1945, ch. 204, § 10 (b), 59 Stat. 269.)

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

title.

As to taxability of farm loan bonds, see note under section 931 of this title.
F. F. L. Act § 21

12 U. S. C. § 881

Farm loan bonds, special provisions of;
consolidated bonds; participation of Federal land
bank in issue; collateral—(a) Approval of issue
requisite; collateral to be held separate
from collective security for individual bonds;
payments on pledged mortgages as trust funds

When any Federal land bank shall desire to participate in a consolidated issue of farm loan bonds it shall make application to the Farm Credit Administration for the approval on its behalf of such issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and no banks shall participate in such consolidated issue until such application has been approved by the Farm Credit Administration. Such approved farm mortgages or obligations of the United States Government shall be held by each farm loan registrar as collateral security for consolidated bonds, separate and apart from the mortgages and/or Government

bonds held by him as collective security for the bonds previously issued or assumed individually by the Federal land bank of his district. Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of consolidated farm loan bonds shall constitute a trust fund in the hands of the Federal land bank receiving the same and shall be applied or employed in the manner provided in sections 891-899 of this title with respect to payments on principal of first mortgages held as collateral for farm loan bonds of individual banks.

(b) Notice to registrar of disposition

of payments on mortgages held as collateral; maintenance of collateral by banks

Every Federal land bank shall notify the farm loan registrar of the disposition of all payments made on the principal of mortgages held as collateral security for the issue of consolidated farm loan bonds, and said registrar is authorized, at his discretion to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. Each bank shall maintain with the farm loan registrar of its district collateral security for the issue of consolidated farm loan bonds in an amount at least equal to the face amount of such bonds issued on its behalf.

(c) Withdrawal of collateral on surrender of bonds

When any Federal land bank shall surrender to the farm loan registrar of its district any consolidated Federal farm loan bonds, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds previously pledged as collateral in connection with any issue of consolidated farm loan bonds to an amount equal to the consolidated farm loan bonds so surrendered and it shall be the duty of such registrar to permit and direct the delivery of such mortgages and bonds to such land bank.

(d) Additional collateral; payment

of bonds and coupons

The Farm Credit Administration may at any time call upon any Federal land bank for additional security to protect the consolidated bonds issued under the provisions of sections 874-886 of this title. Each bank shall pay when due, without notice, all bonds and coupons issued on its behalf hereunder.

(e) Power of Federal land bank to exchange consolidated bonds for individual bonds

Every Federal land bank shall have power to exchange consolidated farm loan bonds for farm loan bonds previously issued or assumed by it individually, with the approval of and under rules and regulations pro

mulgated by the Farm Credit Administration. (July 17, 1916, ch. 245, § 21, 39 Stat. 377; Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476; Mar. 4, 1933, ch. 270, § 7, 47 Stat. 1550; Ex. Ord. No. 6084, Mar. 21, 1933.)

12 U. S. C. § 882

Consolidated bonds; failure

of participating bank to pay interest or principal; liability of other banks

F. F. L. Act § 21

If any Federal land bank shall fail to pay its proportion of interest or principal as prescribed in section 881 (d) of this title, the Farm Credit Administration shall immediately call upon the other Federal land banks for the amount necessary to make said payment, the assessments to be made in proportion to the capital stock of each, which assessments shall be forthwith paid by said banks. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 883

Bond committee and subcommittee

F. F. L. Act § 21

The presidents of the twelve Federal land banks shall constitute the bond committee of the Federal land banks and shall select a chairman from among their number. The vice president may act in place of the president on the president's request or in case he fails to act. The bond committee may appoint from among their number a subcommittee consisting of three members, to hold office for a period of one year or until their successors have been appointed, may from among their number fill any vacancies on the subcommittee and may dismiss at pleasure the members of the subcommittee or any of them. The subcommittee, if appointed, shall have such authority to exercise the powers and to perform the functions of the bond committee as the bond committee may authorize and shall be subject to all provisions of law relating to the duties and expenses of the bond committee. The committee shall select one of the members of the subcommittee to be chairman and one of the members of the subcommittee to be secretary of the subcommittee. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended Aug. 19, 1937, ch. 704, § 18, 50 Stat. 709.)

12 U. S. C. § 884

Consolidated bonds; duties of bond committee

F. F. L. Act § 21

When an issue of consolidated bonds is contemplated, the bond committee shall determine the amount of such issue, the rate of interest which

it is to bear, and the participation of the several banks therein, and submit their recommendations to the Farm Credit Administration for approval. When approved by the Farm Credit Administration the bonds shall be executed by the Land Bank Commissioner and any Deputy Land Bank Commissioner, as provided in sections 871-886 of this title. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476, and amended Ex. Ord. No. 6084, Mar. 27, 1933; June 16, 1933, ch. 98, title VIII, §§ 80 (a), 81, 48 Stat. 273.)

Abolishment of office of Land Bank Commisioner, see section 636f (a) of this title. 12 U. S. C. § 885 F. F. L. Act § 21

Same; expenses

The expenses of the bond committee and of the sale of bonds shall be charged against the several land banks in proportion to their participation in the proceeds. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308, 42 Stat. 1476.)

12 U. S. C. § 886

Compensation of members of bond committee

F. F. L. Act § 21

The presidents of the Federal land banks shall receive no additional compensation for their services as members of the bond committee, but shall be paid necessary traveling expenses. (July 17, 1916, ch. 245, § 21 (par.), as added Mar. 4, 1923, ch. 252, title III, § 308. 42 Stat. 1476.)

Application of Amortization and Interest Payments

12 U. S. C. § 891

Payments upon mortgages pledged as collateral for bond issue; notice to registrar; cancellation

F. F. L. Act § 22

of mortgage and discharge of lien upon full payment

Whenever any Federal land bank, or joint stock land bank, shall receive any principal payments upon any first mortgage or bond pledged as collateral security for the issue of farm loan bonds, it shall forthwith notify the farm loan registrar thereof as may be required by the Farm Credit Administration. Said registrar shall reflect such payment on his records in such manner as may be prescribed by the Farm Credit Administration. Upon notice from the bank that any such mortgage is paid in full, said registrar shall cause the same to be delivered to the proper land bank, which shall promptly cancel said mortgage and transmit such canceled mortgage, together with a release or satisfaction thereof as may be required to satisfy and discharge the lien of record, to the original maker thereof, or his heirs, administrators, executors, or assigns. (July 17, 1916, ch. 245, § 22, 39 Stat. 378; Oct. 29, 1949, ch. 786, § 4,

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