12 U. S. C. § 892 Withdrawal of collateral and substitution of other security F. F. L. Act § 22 Upon written application by any Federal land bank, or joint stock land bank, to the farm loan registrar, it may be permitted, in the discretion of said registrar, to withdraw any mortgages or bonds pledged as collateral security under this chapter, and to substitute therefor other similar mortgages or United States Government bonds not less in amount than the mortgages or bonds desired to be withdrawn. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) 12 U. S. C. § 893 Place and mode of payment of bonds or interest thereon; cancellation on payment F. F. L. Act § 22 Whenever any farm loan bonds, or coupons or interest payments of such bonds, are due under their terms, they shall be payable at the land bank by which they were issued, in gold or lawful money, and upon payment shall be duly canceled by said bank. At the discretion of the Farm Credit Administration, payment of any farm loan bond or coupon or interest payment may, however, be authorized to be made at any Federal land bank, any joint stock land bank, or any other bank, under rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, ch. 245, § 22, 39 Stat. 378; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 894 Withdrawal of collateral security on surrender of bonds F. F. L. Act § 22 When any land bank shall surrender to the proper farm loan registrar any farm loan bonds of any series, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds pledged as collateral security for any of said series of farm loan bonds to an amount equal to the farm loan bonds so surrendered, and it shall be the duty of said registrar to permit and direct the delivery of such mortgages and bonds to such land bank. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) 12 U. S. C. § 895 Interest payments on pledged mortgages F. F. L. Act § 22 Interest payments on hypothecated first mortgages shall be at the disposal of the land bank pledging the same, and shall be available for the payment of coupons and the interest of farm loan bonds as they become due. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) 12 U. S. C. § 896 F. F. L. Act § 22 Payment of bonds, coupons, and interest at maturity Whenever any bond matures, or the interest on any registered bond is due, or the coupon on any coupon bond matures, and the same shall be presented for payment as provided in this subchapter, the full face value thereof shall be paid to the holder. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) 12 U. S. C. § 897 Same; trust fund from payments on mortgages held as collateral F. F. L. Act § 22 Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of farm loan bonds shall constitute a trust fund in the hands of the Federal land bank or joint stock land bank receiving the same, and shall be applied or employed as follows: In the case of a Federal land bank (a) To pay off farm loan bonds issued by or in behalf of said bank as they mature. (b) To purchase at or below par Federal farm loan bonds. (c) To loan on first mortgages on farm lands within the farm credit district, qualified under this chapter as collateral security for an issue of farm loan bonds. (d) To purchase United States Government bonds. (e) To purchase Federal Farm Mortgage Corporation bonds. In the case of a joint stock land bank— (a) To pay off farm loan bonds issued by said bank as they mature. (b) To purchase at or below par farm loan bonds. (c) To loan on first mortgages qualified under sections 811-824 of this title. (d) To purchase United States Government bonds. (e) To purchase Federal Farm Mortgage Corporation bonds. (July 17, 1916, ch. 245, § 22, 39 Stat. 378; Mar. 4, 1923, ch. 252, title III, § 309, 42 Stat. 1477; Jan. 31, 1934, ch. 7, § 8 (b), 48 Stat. 347; Aug. 19, 1937, ch. 704, §§ 5 (a), 15 (c), 50 Stat. 704, 708.) 12 U. S. C. § 898 Same; deposit of trust funds with registrars as substituted collateral security F. F. L. Act § 22 The farm loan bonds, first mortgages, United States Government bonds, or cash constituting the trust funds aforesaid, shall be forthwith deposited with the farm loan registrar as substituted collateral security in place of the sums paid on the principal of indorsed mortgages held by him in trust. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) 12 U. S. C. § 899 Same; notice to registrar of disposition of principal payments on mortgages held as collateral; transfer to registrar on demand F. F. L. Act § 22 Every Federal land bank, or joint stock 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 an issue of 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. (July 17, 1916, ch. 245, § 22, 39 Stat. 378.) Reserves and Dividends of Land Banks 12 U. S. C. § 901 Amount carried to reserve account; withdrawal of excess; restoration of impairment. F. F. L. Act § 23 Every Federal land bank shall semiannually carry to reserve account a sum not less than 50 per centum of its net earnings until said reserve account shall show a credit balance equal to the outstanding capital stock of said land bank. After said reserve is equal to the outstanding capital stock 10 per centum of the net earnings shall be added thereto semiannually until said reserve account shall show a credit balance equal to 150 per centum of the outstanding capital stock of said land bank, and any land bank having a credit balance in said reserve account in excess of 150 per centum of its outstanding capital stock may withdraw such excess from said reserve account with the approval of the Farm Credit Administration. Whenever said reserve shall have been impaired it shall be fully restored before any dividends are paid. (July 17, 1916, ch. 245, § 23, 39 Stat. 379; Jan. 23, 1932, ch. 9, § 3 (a), 47 Stat. 13; Aug. 11, 1955, ch. 785, title III, § 306 (a), 69 Stat. 665.) 12 U. S. C. § 902 Dividends on balance of net earnings; investment of reserves F. F. L. Act § 23 After deducting the 50 per centum or the 10 per centum directed to be deducted for credit to reserve account by section 901 of this title, any Federal land bank may declare a dividend or dividends to shareholders of the whole or any part of the balance of its net earnings, but only with the approval of the Farm Credit Administration. The reserves of land banks shall be invested in accordance with rules and regulations prescribed by the Farm Credit Administration. (July 17, 1916, ch. 245, § 23, 39 Stat. 379; Jan. 23, 1932, ch. 9, § 3 (a), (b), 47 Stat. 13; Aug. 11, 1955, ch. 785, title III, § 306 (a), 69 Stat. 665.) 12 U. S. C. § 903 Payment of franchise tax before dividends; rate F. F. L. Act § 23 Nothwithstanding any other provision of this subchapter and subchapter III of this chapter, in the case of a Federal land bank having outstanding capital stock held by the United States during the whole or any part of a fiscal year, said bank shall, after complying with the reserve requirements of sections 901 and 902 of this title and before declaring any dividends to shareholders, pay to the United States a franchise tax equal to 25 per centum of its net earnings then remaining, not to exceed, however, a rate of return of such Government capital calculated at a rate equal to the computed average annual rate of interest on all public issues of public debt obligations of the United States issued during the fiscal year ending next before such tax is due, as certified to the Farm Credit Administration by the Secretary of the Treasury. (July 17, 1916, ch. 245, § 23, 39 Stat. 379; Aug. 6, 1953, ch. 335, § 10, 67 Stat. 395.) Reserves and Dividends of National Farm Loan Associations 12 U. S. C. § 911 F. F. L. Act § 24 Amount carried to reserve account Every national farm loan association shall, out of its net earnings, semiannually carry to reserve account a sum not less than 10 per centum of such net earnings until said reserve account shall show a credit balance equal to 25 per centum of the outstanding capital stock of said association. After said reserve has reached the sum of 25 per centum of the outstanding capital stock, 5 per centum of the net earnings shall be semiannually added thereto until said reserve account shall show a credit balance equal to 50 per centum of the outstanding capital stock of said association, and any association having a credit balance in said reserve account in excess of 50 per centum of its outstanding capital stock may withdraw such excess from said reserve account with the approval of the Farm Credit Administration. (July 17, 1916, ch. 245, § 24, 39 Stat. 379; Jan. 23, 1932, ch. 9, § 4, 47 Stat. 13; Aug. 11, 1955, ch. 785, title 12 U. S. C. § 912 FARM CREDIT SYSTEM LAWS F. F. L. Act § 24 Making good impairment of reserve Whenever the reserve shall have been impaired it shall be fully restored before any dividends are paid. (July 17, 1916, ch. 245, § 24, 39 Stat. 379; Jan. 23, 1932, ch. 9, § 4, 47 Stat. 13.) 12 U. S. C. § 913 Dividends on balance of net earnings F. F. L. Act § 24 After deducting the 10 per centum or the 5 per centum hereinbefore directed to be credited to reserve account, said association may at its discretion declare a dividend to shareholders of the whole or any part of the balance of said net earnings: Provided, That the declaration and payment of any such dividend shall be subject to the approval of the Land Bank Commissioner. (July 17, 1916, ch. 245, § 24, 39 Stat. 379; Jan. 23, 1932, ch. 9, § 4, 47 Stat. 13; June 3, 1935, ch. 164, § 4, 49 Stat. 315.) Abolishment of office of Land Bank Commissioner, see section 636f (a) of this title. 12 U. S. C. § 914 Investment of reserves F. F. L. Act § 24 The reserves of farm loan associations shall be invested in accordance with rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, ch. 245, § 24, 39 Stat. 379; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 915 Disposition of reserve on liquidation F. F. L. Act § 24 Whenever any farm loan association shall be voluntarily liquidated a sum equal to its reserve account as herein required shall be paid to and become the property of the Federal land bank in which such loan association may be a shareholder. (July 17, 1916, ch. 245, § 24, 39 Stat. 379.) 12 U. S. C. § 921 Defaulted Farm Loans Mortgage held by Federal land bank; notice to indorsing association; making good default F. F. L. Act § 25 If there shall be default under the terms of any indorsed first mortgage held by a Federal land bank under the provisions of this chapter the national farm loan association through which said mortgage was received by said Federal land bank shall be notified of said default. Said |