under section 640b of this title shall be first determined, and the person receiving the most votes for election under paragraph (2) of this section who is not a resident of the same State as the director elected under section 5 (b) shall be declared elected.

(4) As directed by the Farm Credit Administration, the election of a director under paragraph (2) of this section by any group may be begun any time within six months before the expiration of the term of office to which the director is to succeed, subject to the required determination being made as of the date six months before the expiration of such term of office that a director so elected by such group is to serve in lieu of a district director (or third district director). (Aug. 19, 1937, ch. 704, § 5 (d), 50 Stat. 704; Aug. 6, 1953, ch. 335, § 15, 67 Stat. 397; Aug. 11, 1955, ch. 785, title IV, § 401 (b), 69 Stat. 666; July 26, 1956, ch. 741, title I, § 106 (a) (1), 70 Stat. 666.)

12 U. S. C. § 640e

Same; nomination of elected directors

F. C. Act 1937 § 5 (e)

In

At least two months before an election of an elected director the Farm Credit Administration shall cause notice in writing to be sent to those entitled to nominate candidates for such elected director. the case of an election of a director by national farm loan associations and borrowers through agencies, such notice shall be sent to all national farm loan associations and borrowers through agencies in the district; in the case of an election by production credit associations, such notice shall be sent to all production credit associations in the district; and in the case of an election by cooperatives which are stockholders or subscribers to the guaranty fund of the bank for cooperatives of the district, such notice shall be sent to all cooperatives which are stockholders or subscribers to the guaranty fund at the time of sending notice. After receipt of such notice those entitled to nominate the director shall forward nominations of residents of the district to the Farm Credit Administration. The Farm Credit Administration shall, from the nominations received within thirty days after the sending of such notice, prepare a list of candidates for such elected director consisting of the ten nominees receiving the highest number of votes. (Aug. 19, 1937, ch. 704, § 5 (e), 50 Stat. 705.)

12 U. S. C. § 640f

Same; election of elected directors

F. C. Act 1937 § 5 (f)

At least one month before the election of an elected director the Farm Credit Administration shall mail to each person or organization entitled to elect the elected director the list of the ten candidates nominated in accordance with section 640e of this title. In the case of an election of a director by national farm loan associations and borrowers through

agencies, the directors of each farm loan association shall cast the vote of such association for one of the candidates on the list. In voting under sections 640a-640k of this title each such association shall be entitled to cast a number of votes equal to the number of stockholders of such association and each borrower through agencies shall be entitled to cast one vote. In voting under said sections each production credit association shall be entitled to cast a number of votes equal to the number of the class B stockholders of such association. In voting under said sections each cooperative which is a holder of stock in, or a subscriber to the guaranty fund of, the bank for cooperatives shall be entitled to cast one vote. The votes shall be forwarded to the Farm Credit Administration and no vote shall be counted unless received by it within thirty days after the sending of such list of candidates. In case of a tie the Farm Credit Administration shall determine the choice. The nominations from which the list of candidates is prepared, and the votes of the respective voters, as counted, shall be tabulated and preserved and shall be subject to examination by any candidate for at least one year after the result of the election is announced. (Aug. 19, 1937, ch. 704, § 5 (f), 50 Stat. 705.)

12 U. S. C. § 640g

Same; term of office; vacancies

F. C. Act 1937 § 5 (g)

The terms of office of all directors shall be three years. Any vacancies that may occur in the farm credit board shall be filled for the unexpired term in the manner provided in sections 640b-640f of this title for the original selection of such directors. (Aug. 19, 1937, ch. 704, § 5 (g), 50 Stat. 705.)

12 U. S. C. § 640h

Same; general qualifications of members

F. C. Act 1937 § 5 (h)

Members of each farm credit board shall have been, for at least two years, residents of the district for which they are appointed or elected. From and after August 19, 1937, no person shall be eligible for election or appointment as a member of any district farm credit board, and no person elected or appointed after August 19, 1937, as a member of any district farm credit board shall be eligible to continue to serve as such, if in either case said person is an officer or employee of any Federal land bank, Federal intermediate credit bank, or bank for cooperatives. No district director, excepting any third district director selected as specified in section 640d of this title, shall, during his continuance in office, be a director, officer, or employee of any institution, association, or partnership engaged in the business of lending money or of making or selling land mortgage loans, except an institution or association under the

supervision of the Farm Credit Administration. (Aug. 19, 1937, ch. 704, § 5 (h), 50 Stat. 705; July 26, 1956, ch. 741, title I, § 106 (a) (2), 70 Stat. 166.)

12 U. S. C. § 640i

Same; felons and defrauders ineligible

F. C. Act 1937 § 5 (i)

No person shall be eligible for appointment or election as an administrative or executive official of a Federal land bank, Federal intermediate credit bank, or of any corporation or bank organized pursuant to the Farm Credit Act of 1933, or as a member of any farm credit board, or shall continue to hold office as such member, if such person has been finally adjudged guilty of a felony, or finally adjudged liable in damages in any civil proceeding for fraud, in any State or Federal court. (Aug. 19, 1937, ch. 704, § 5 (i), 50 Stat. 706.)

12 U. S. C. § 640j

Same; compensation of members

F. C. Act 1937 § 5 (j)

Subject to the approval of the Farm Credit Administration members of each farm credit board shall receive such compensation as may be authorized by the board, including a reasonable allowance for necessary expenses in attending meetings of said board and directors' meetings. Such compensation shall be paid by the Federal land bank of the district, and such bank shall be reimbursed therefor by the Federal intermediate credit bank, production credit corporation and bank for cooperatives of the district in such proportion and in such manner as may be fixed by the farm credit board subject to the approval of the Farm Credit Administration. Except with the approval of the Farm Credit Administration, no member of any farm credit board shall receive compensation or allowances for any services rendered such institutions, in his capacity as director or otherwise, for more than thirty days in any one calendar year, exclusive of the period for which compensation is paid for attendance at meetings of said board and at directors' meetings. (Aug. 19, 1937, ch. 704, § 5 (j), 50 Stat. 706.)

12 U. S. C. § 640k

Laws unaffected

F. C. Act 1937 § 5 (k)

Nothing contained in sections 640a-640j of this title shall be construed to abrogate or repeal section 672 of this title, or to affect the applicability of any other Act of Congress under which agricultural credit laws of the United States may be made applicable to territories or insular possessions of the United States. (Aug. 19, 1937, ch. 704, § 5 (k), 50

12 U. S. C. § 640/

F. C. Act 1937 § 6

Powers of farm credit board

Each farm credit board provided for in sections 640b and 640c of this title shall have power, subject to the approval of the Farm Credit Administration

(a) Employment of joint officers

and employees for certain organizations

To employ joint officers and employees for the Federal land bank, Federal intermediate credit bank, and regional bank for cooperatives in its district. The salaries or other compensation of all such joint officers and employees shall be fixed by the district farm credit board and shall be paid by the Federal land bank of the district. Such bank shall be reimbursed therefor by the other institutions in the district, in such amounts and upon such conditions as the board shall determine. Officers and employees appointed by the district farm credit board shall be officers and employees of the district institutions served by them.

(b) Authorization of acquisition

and disposal of property

To authorize the acquisition and disposal of such property, real or personal, as may be necessary or convenient for the transaction of the business of the Federal land bank, the Federal intermediate credit bank, and the bank for cooperatives located in its district, upon such terms and conditions as it shall fix, and to prorate among such institutions the cost of purchases, rentals, construction, repairs, alterations, maintenance, and operation, in such amounts and in such manner as it shall determine. Any lease, or any contract for the purchase or sale of property, or any deed or conveyance of property, or any contract for the construction, repair, or alteration of buildings, authorized by a district farm credit board under this subsection shall be executed by the officers of the institution or institutions concerned pursuant to the direction of such board. No provision of law relative to the acquisition or disposal of property, real or personal, by or for the United States, or relative to the making of contracts or leases by or for the United States, including the provisions set out in Titles 40 and 41, and including provisions applicable to corporations wholly owned by the United States, shall be deemed or held applicable to any lease, purchase, sale, deed, conveyance, or contract authorized or made by a district farm credit board, Federal land bank, Federal intermediate credit bank, or bank for cooperatives under this subsection.

(c) Vacations and sick leaves

No corporation under the supervision of the Farm Credit Administration, of which corporation any member of the board of directors

is elected or appointed by private interests, shall be subject to the provisions of sections 29a, 30b, and 30c-30m of Title 5. (Aug. 19, 1937, ch. 704, § 6, 50 Stat. 706; July 26, 1956, ch. 741, title I, § 106 (b), 70 Stat. 666.)

Subchapter I-FEDERAL LAND BANKS, JOINT STOCK LAND BANKS, AND NATIONAL FARM LOAN ASSOCIATIONS

12 U. S. C. § 641

F. F. L. Act § 1

"Federal Farm Loan Act"; administration

The act of July 17, 1916 (ch. 245, 39 Stat. 360), as amended by act of March 4, 1923 (ch. 252, 42 Stat. 1454), to include Federal intermediate credit banks may be cited as the "Federal Farm Loan Act." Its administration shall be under the direction and control of the Farm Credit Administration, created pursuant to Executive Order. (July 17, 1916, ch. 245, § 1, 39 Stat. 360; Mar. 4, 1923, ch. 252, title I, §§ 1, 2, 42 Stat. 1454; Ex. Ord. No. 6084, Mar. 27, 1933.)

The Federal Farm Loan Act, referred to in the text, is classified to sections 641, 642, 651-656, 658-664, 672, 673–677a, 691-698, 701, 711-723, 731-734, 741–744, 745—747, 751-756, 761, 771, 772, 781, 791, 801-808, 810-824, 831, 841-844, 851-857, 861-864, 871-886, 891-899, 901, 902, 903, 911-915, 921, 931, 932, 933, 941-943, 951-953, 961-963, 964-967, 971-973, 991, 992, 993, 1001, 1011, 1012, 1021-1023, 1024-1026, 1031-1033, 1041-1045, 1051-1053, 1061, 1062, 1072, 1081, 1091-1095, 1101, 1111, and 1129 of this title.

12 U. S. C. § 642

"First mortgage"

and "farm loan bonds” defined

F. F. L. Act § 2

Wherever the term "first mortgage" is used in this subchapter it shall be held to include such classes of first liens on farm lands as shall be approved by the Farm Credit Administration, and the credit instruments secured thereby. The term "farm loan bonds" shall be held to include all bonds secured by collateral deposited with a farm loan registrar under the terms of this subchapter; they shall be distinguished by the addition of the words "Federal", or "joint stock" as the case may be. (July 17, 1916, ch. 245, § 2, 39 Stat. 360; Ex. Ord. No. 6084, Mar. 27, 1933.)