association may thereupon be required, within 30 days after such notice, to make good such default, either by payment of the amount unpaid thereon in cash or by the substitution of an equal amount of Federal farm loan bonds, with all unmatured coupons attached. (July 17, 1916, ch. 245, § 25, 39 Stat. 380; Mar. 4, 1923, ch. 252, title III, § 310, 42 Stat. 1477.) 12 U. S. C. § 931 Exemption from Taxation Federal land banks; national farm loan as instrumentalities of Government F. F. L. Act § 26 Every Federal land bank and every national farm loan association, including the capital and reserve or surplus therein and the income derived therefrom, shall be exempt from Federal, State, municipal, and local taxation, except taxes upon real estate held, purchased, or taken by said bank or association under the provisions of sections 761 and 781 of this title. First mortgages executed to Federal land banks, or to joint stock land banks, and farm loan bonds issued under the provisions of this chapter, shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation. (July 17, 1916, ch. 245, § 26, 39 Stat. 380.) All income (except interest) derived from mortgages made, or obligations issued, after May 28, 1938, by a joint stock land bank shall (notwithstanding section 26 of the Federal Farm Loan Act; 12 U. S. C. 931-3) be included in gross income. (26 U. S. C. 76.) Interest upon obligations, and dividends, earnings, or other income from shares, certificates, stock, or other evidences of ownership, and gain from the sale or other disposition of such obligations and evidences of ownership issued on or after March 28, 1942, by the United States or any agency or instrumentality thereof have no exemption, as such, and loss from the sale or other disposition of such obligations or evidences of ownership shall not have any special treatment, as such, under the Internal Revenue Code, or laws amendatory or supplementary thereto. (31 U. Š. C. 742a.) 12 U. S. C. § 932 Joint stock land banks; State taxation of shareholder, limitations on F. F. L. Act § 26 Nothing in sections 931-933 of this title shall prevent the shares in any joint stock land bank from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the bank is located; but such assessment and taxation shall be in manner and subject to the conditions and limitations contained in section 548 of this title with reference to the shares of national banking associations. (July 12 U. S. C. § 933 Federal and joint stock land banks; real property not exempt F. F. L. Act § 26 Nothing in sections 931-933 of this title shall be construed to exempt the real property of Federal and joint stock land banks and national farm loan associations from either State, county, or municipal taxes, to the same extent, according to its value, as other real property is taxed. (July 17, 1916, ch. 245, § 26, 39 Stat. 380.) Investment in Farm Loan Bonds 12 U. S. C. § 941 F. F. L. Act § 27 Fiduciary and trust funds; security for public deposits Farm loan bonds issued under the provisions of this chapter by Federal land banks or joint stock land banks shall be a lawful investment for all fiduciary and trust funds, and may be accepted as security for all public deposits. (July 17, 1916, ch. 245, § 27, 39 Stat. 380.) 12 U. S. C. § 942 Buying and selling by member banks of Federal Reserve System F. F. L. Act § 27 Any member bank of the Federal Reserve System may buy and sell farm loan bonds issued under the authority of this chapter. (July 17, 1916, ch. 245, § 27, 39 Stat. 380.) 12 U. S. C. § 943 Buying and selling by reserve banks F. F. L. Act § 27 Any Federal reserve bank may buy and sell farm loan bonds issued under this chapter to the same extent and subject to the same limitations placed upon the purchase and sale by said banks of State, county, district, and municipal bonds under section 355 of this title. (July 17, 1916, ch. 245, § 27, 39 Stat. 380.) 12 U. S. C. § 951 Examinations F. F. L. Act § 28 Farm credit examiners; appointment; number The Farm Credit Administration shall appoint as many farm credit examiners as in its judgment may be required to make careful examinations of the banks and associations permitted to do business under this subchapter and subchapter III of this chapter. (July 17, 1916, ch. 245, § 28, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933; Aug. 19, 1937, ch. 704, § 20, 50 Stat. 710.) 12 U. S. C. § 952 Requirements, responsibilities, and penalties applicable to examiners; examinations; reports F. F. L. Act § 28 Farm credit examiners shall be subject to the same requirements, responsibilities, and penalties as are applicable to national bank examiners under chapters 2 and 3 of this title and other provisions of law. Whenever directed by the Farm Credit Administration, said examiners shall examine the condition of any national farm loan association and report the same to the Land Bank Commissioner. They shall examine and report the condition of every Federal land bank and joint stock land bank at least once each year. (July 17, 1916, ch. 245, § 28, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933; June 16, 1933, ch. 98, title VIII, § 80 (a), 48 Stat. 273; Aug. 19, 1937, ch. 704, § 20, 50 Stat. 710; July 12, 1943, ch. 215, § 1, 57 Stat. 424.) Abolishment of office of Land Bank Commissioner, see section 636f (a) of this title. 12 U. S. C. § 953 Salaries of examiners F. F. L. Act § 28 Farm credit examiners shall receive salaries to be fixed by the Farm Credit Administration. (July 17, 1916, ch. 245, § 28, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933; Aug. 19, 1937, ch. 704, § 20, 50 Stat. 710.) 12 U. S. C. § 961 Receivers and Conservators National farm loan associations; institution and conduct of receivership; duties and powers of receivers F. F. L. Act § 29 Upon receiving satisfactory evidence that any national farm loan association has failed to meet its outstanding obligations of any description the Farm Credit Administration may forthwith declare such association insolvent and appoint a receiver and require of him such bond and security as it deems proper: Provided, That no national farm loan association shall be declared insolvent by said administration until the total amount of defaults of current interest and amortization installments on loans indorsed by national farm loan associations shall amount to at least $150,000 in the farm credit district, unless such association shall have been in default for a period of two years. Such receiver, under the direction of the Farm Credit Administration, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, with the approval of the Farm Credit Administration, or upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like approval or order, may sell all the real and personal property of such association, on such terms as the Farm Credit Administration or said court shall direct. (July 17, 1916, ch. 245, § 29, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933; Aug. 19, 1937, ch. 704, § 5 (a), 50 Stat. 704.) 12 U. S. C. § 962 Disposition of moneys F. F. L. Act § 29 Such receiver shall pay over all money so collected to the Treasurer of the United States, subject to the order of the Farm Credit Administration, and also make report to said administration of all his acts and proceedings. The Secretary of the Treasury shall have authority to deposit at interest any money so received. (July 17, 1916, ch. 245, § 29, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 963 Federal and joint stock land banks; institution and conduct of receivership F. F. L. Act § 29 Upon default of any obligation, Federal land banks and joint stock land banks may be declared insolvent and placed in the hands of a receiver by the Farm Credit Administration, and proceedings shall thereupon be had in accordance with the provisions of sections 961-963 and 964-967 of this title regarding national farm loan associations. (July 17, 1916, ch. 245, § 29, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 964 National farm loan associations; disposition of stock in Federal land bank 12 No of F. F. L. Act § 29 If any national farm loan association shall be declared insolvent and a receiver shall be appointed therefor by the Farm Credit Administration, the stock held by it in the Federal land bank of its district shall be canceled without impairment of its liability and all payments on such stock, with accrued dividends, if any, since the date of the last dividend shall be first applied to all debts of the insolvent farm loan association to the Federal land bank and the balance, if any, shall be paid to the receiver of said farm loan association: Provided, That in estimating said debts contingent liabilities incurred by national farm loan associations under the ar ST provisions of this chapter on account of default of principal or interest of indorsed mortgages shall be estimated and included as a debt, and said contingent liabilities shall be determined by agreement between the receiver and the Federal land bank of the district, subject to the approval of the Farm Credit Administration, and if said receiver and said land bank cannot agree, then by the decision of the Land Bank Commissioner, and the amount thus ascertained shall be deducted in accordance with the provisions of sections 961-963 and 964-967 of this title from the amount otherwise due said national farm loan association for said canceled stock. Whenever the capital stock of a Federal land bank shall be reduced, the board of directors shall cause to be executed a certificate to the Farm Credit Administration, showing such reduction of capital stock, and, if said reduction shall be due to the insolvency of a national farm loan association, the amount repaid to such association. (July 17, 1916, ch. 245, § 29, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933; June 16, 1933, ch. 98, title VIII, § 80 (a), 48 Stat. 273.) Abolishment of office of Land Bank Commissioner, see section, 636f (a) of this title. 12 U. S. C. § 965 Voluntary liquidation; consolidation of farm loan associations F. F. L. Act § 29 No national farm loan association, Federal land bank or joint stock land bank shall go into voluntary liquidation without the written consent of the Farm Credit Administration, but national farm loan associations may consolidate under rules and regulations promulgated by the Farm Credit Administration. (July 17, 1916, ch. 245, § 29, 39 Stat. 381; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 966 National farm loan associations; disposition F. F. L. Act § 29 Upon liquidation of any national farm loan association, the stock in the Federal land bank held by such association shall be canceled and the Federal land bank shall thereupon issue to the borrowers through such association an amount of stock in the Federal land bank equal to the amount of stock held by such borrowers in the liquidated association, such stock to be held by the bank as collateral to the loans of such borrowers and to be paid off and retired at par in the same manner as stock held by borrowers in farm loan associations, and the Federal land bank shall pay to the borrowers holding such stock the same dividends as are paid to national farm loan associations by such bank. The personal liability of the stockholders in such liquidated association to the association shall survive such liquidation and shall be vested |