12 U. S. C. § 732 Voting privileges F. F. L. Act § 8 Effective thirty days after August 19, 1937, every shareholder shall be entitled to one vote, and no more, at all elections of directors and in deciding all questions at meetings of shareholders. (July 17, 1916, ch. 245, § 8, 39 Stat. 367; Aug. 9, 1937, ch. 704, § 23, 50 Stat. 710.) 12 U. S. C. § 733 Borrowers only to be members; application for membership; subscription to stock in association; F. F. L. Act § 8 No persons but borrowers on farm land mortgages shall be members or shareholders of national farm loan associations. Any person desiring to borrow on farm land mortgage through a national farm loan association shall make application for membership and shall subscribe for shares of stock in such farm loan association to an amount equal to 5 per centum of the face of the desired loan, said subscription to be paid in cash upon the granting of the loan. If the application for membership is accepted and the loan is granted, the applicant shall, upon full payment therefor, become the owner of one share of capital stock in said loan association for each $100 of the face of his loan, or any major fractional part thereof. Said capital stock shall be paid off at par and retired upon full payment of said loan. Said capital stock shall be held by said association as collateral security for the payment of said loan, but said borrower shall be paid any dividends accruing and payable on said capital stock while it is outstanding. (July 17, 1916, ch. 245, § 8, 39 Stat. 367.) 12 U. S. C. § 734 Increase of stock F. F. L. Act § 8 Every national farm loan association formed under this chapter shall by its articles of association provide for an increase of its capital stock from time to time for the purpose of securing additional loans for its members and providing for the issue of shares to borrowers in accordance with the provisions of this chapter. (July 17, 1916, ch. 245, § 8, 39 Stat. 367; Ex. Ord. No. 6084, Mar. 27, 1933; Aug. 11, 1955, ch. 785, title III, § 301 (c), 69 Stat. 664.) National Farm Loan Associations; Special Provisions 12 U. S. C. § 741 Right of members to loans F. F. L. Act § 9 Any person whose application for membership is accepted by a national farm loan association shall be entitled to borrow money on farm land mortgage upon filing his application in accordance with section 733 of this title and otherwise complying with the terms of this chapter whenever the Federal land bank of the district has funds available for that purpose, unless said land bank or the Farm Credit Administration shall, in its discretion, otherwise determine. (July 17, 1916, ch. 245, § 9, 39 Stat. 368; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 742 Payment for stock from proceeds of member's mortgage loan F. F. L. Act § 9 Any person desiring to secure a loan through a national farm loan association under the provisions of this chapter may, at his option, borrow from the Federal land bank through such association the sum necessary to pay for shares of stock subscribed for by him in the national farm loan association, such sum to be made a part of the face of the loan and paid off in amortization payments: Provided, however, That such addition to the loan shall not be permitted to increase said loan above the limitation imposed in subsection fifth of section 771 of this title. (July 17, 1916, ch. 245, § 9, 39 Stat. 368.) 12 U. S. C. § 743 Commissions on interest payments; deduction from dividends; loans by land banks to associations; rate of interest F. F. L. Act § 9 Subject to rules and regulations prescribed by the Farm Credit Administration, any national farm loan association shall be entitled to retain as a commission from each interest payment on any loan indorsed by it an amount to be determined by said administration not to exceed one-eighth of 1 per centum semiannually upon the unpaid principal of said loan, any amounts so retained as commissions to be deducted from dividends payable to such farm loan association by the Federal land bank, and to make application to the land bank of the district for loans not exceeding in the aggregate one-fourth of its total stockholdings in said land bank. The Federal land banks shall have power to make such loans to associations applying therefor and to charge interest at a rate not exceeding 6 per centum per annum. (July 17, 1916, ch. 245, § 9, 39 Stat. 368; Ex. Ord. No. 6084, Mar. 27, 1933.) 12 U. S. C. § 744 Individual liability of shareholders F. F. L. Act § 9 Shareholders of every national farm loan association shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such association to the extent of the amount of stock owned by them at the par value thereof, in addition to the amount paid in and represented by their shares. (July 17, 1916, ch. 245, § 9, 39 Stat. 368.) 12 U. S. C. § 744a Same; contract liability after June 16, 1933 F. C. Act 1933 § 72 Notwithstanding the provisions of section 744 of this title, the shareholders of national farm loan associations shall not be held individually responsible for any contract, debt, or engagement of such association entered into after June 16, 1933, but this section shall not be construed to relieve any other liability with respect to stock held by such shareholders. (June 16, 1933, ch. 98, title VII, § 72, 48 Stat. 271.) 12 U. S. C. § 745 New members F. F. L. Act § 9 After a charter has been granted to a national farm loan association, any person who is the owner, or about to become the owner, of farm land qualified under section 771 of this title as the basis of a mortgage loan, and who desires to borrow on a mortgage of such farm land, may become a member of the association by a majority vote of the directors, or by the loan committee where said committee has been empowered to elect applicants to membership, and upon subscribing for one share of the capital stock of such association for each $100 of the face of his proposed loan or any major fractional part thereof. He shall at the same time file with the secretary-treasurer his application for a mortgage loan, giving the particulars required by section 771 of this title. As used in this section, the term "person" includes an individual, an incorporated association, and a corporation which is eligible for a loan under section 771 of this title. (July 17, 1916, ch. 245, § 9, 39 Stat. 368; June 3, 1935, ch. 164, § 20, 49 Stat. 319; Aug. 19, 1937, ch. 704, § 24, 50 Stat. 710; June 30, 1945, ch. 204, § 1 (b), 59 Stat. 266.) 12 U. S. C. § 746 Common board of directors for two or more associations F. F. L. Act § 9 Any other provisions of law to the contrary notwithstanding, two or more national farm loan associations may with the approval of the Farm Credit Administration, and by an agreement not inconsistent with any rules and regulations prescribed by the said Administration, provide for a common board of directors to be elected by the shareholders of the associations that are parties to the agreement: Provided, however, That each member of any such board shall be a shareholder in an association that is a party to the agreement and shall be a bona fide resident of the territory within which such association is authorized to do business: And provided further, That no such agreement shall provide for a term of office in excess of three years for any member of such board. The number of members of the common board of directors shall be specified in the agreement and shall be five or more. The agreement may provide that any director may be elected by the shareholders of one or more of the associations which are parties to the agreement; that in the balloting for any director an association may vote at a separate meeting of its shareholders or at a joint meeting with the shareholders of any other association or associations participating in the election of the director; and that the candidate receiving the highest aggregate number of votes at such meeting or meetings shall be declared elected. Whenever two or more national farm loan associations have entered into such an agreement, the members of the common board of directors provided for in the agreement shall be ex officio the members of the board of directors of each association that is a party to the agreement, any provisions of this chapter to the contrary notwithstanding. (July 17, 1916, ch. 245, § 9 (par.), as added Aug. 19, 1937, ch. 704, § 25 (a), 50 Stat. 710.) 12 U. S. C. § 747 Same; transfer of powers to loan committee F. F. L. Act § 9 Whenever a national farm loan association has entered into such an agreement, the power of approving applications for loans through the association and the power of admitting persons to membership in the association shall be vested in the loan committee of the association in lieu of being vested in its board of directors. The loan committee of any such association shall be elected annually by the shareholders of the association, instead of by its board of directors, and the shareholders shall in addition annually elect two alternates to serve as members of the loan committee at such times as regular members may be absent or disqualified. (July 17, 1916, ch. 245, § 9 (par.), as added Aug. 19, 1937, ch. 704, § 25 (a), 50 Stat. 711.) 12 U. S. C. § 751 Appraisal for Farm Loans Investigation by loan committee; report by appraiser; report and approval by committee; notification to applicant F. F. L. Act § 10 Whenever an application for a mortgage loan is made to a national farm loan association, the loan committee provided for in section 712 of this title shall forthwith make, or cause to be made, such investigation as it may deem necessary as to the character and solvency of the applicant, and the sufficiency of the security offered. The committee may request a report on the value of the security by a land bank appraiser appointed under the authority of section 656 of this title, in which event such an appraiser shall investigate and make a written report to the association upon the security offered. The committee shall cause written report to be made of the results of such investigation or investigations as it has required to be made and shall, if it concurs in such report, approve the same in writing. No loan shall be made unless the report of the committee is favorable. After the investigation required in this section has been made, the association has requested and received a report upon the value of the security by a land bank appraiser, and the loan committee has reached an agreement as to the amount and terms of the loan which may be offered to the applicant, if such amount is not in excess of 65 per centum of the normal value of the security offered as determined by said appraiser the secretary-treasurer may notify the applicant of the amount and terms of the loan approved by the loan committee: Provided, That any such notice shall contain a statement that the amount and terms of the loan offered to the applicant are subject to and conditioned upon subsequent approval or disapproval by the Federal land bank. (July 17, 1916, ch. 245, § 10, 39 Stat. 369; Apr. 20, 1920, ch. 154, § 2, 41 Stat. 570; June 30, 1945, ch. 204, § 2, 59 Stat. 266.) 12 U. S. C. § 752 Submission of loan application and required reports to land bank; consideration by bank F. F. L. Act § 10 The written report required in section 751 of this title, together with any report made by a land bank appraiser, shall be submitted to the Federal land bank with the application for the loan, and the land bank shall examine said written report when it passes on the loan application which it accompanies, but it shall not be bound by the value placed upon the property by the loan committee. (July 17, 1916, ch. 245, § 10, 39 Stat. 369; Apr. 20, 1920, ch. 154, § 2, 41 Stat. 570; June 30, 1945, ch. 204, § 2, 59 Stat. 266.) 12 U. S. C. § 753 Requirement for appraisal of land offered as security before making land bank loan F. F. L. Act § 10 Before any mortgage loan is made by any Federal land bank, or joint stock land bank, it shall refer the application to one or more of the land bank appraisers appointed under the authority of section 656 of this title, and such appraiser or appraisers shall investigate and make a written report on the security offered for said loan: Provided, That if |