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12 U.S.C., & 815

F.F.L. Act, § 16 Minimum capital stock.—No joint stock land bank shall be authorized to do business until capital stock to the amount of at least $250,000 has been subscribed, one-half thereof paid in cash and the balance subject to call by the board of directors, and a charter has been issued to it by the Farm Credit Administration. (July 17, 1916, c. 245, § 16, 39 Stat. 374; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this title. See that section.

12 U.S. C., § 816

F.F.L. Act, & 16 Issuing bonds before payment of stock.—No joint stock land bank shall issue any bonds until after the capital stock is entirely paid up. (July 17, 1916, c. 245, $ 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this title. See that section.

12 U.S.C., & 817

F. F. L. Act, § 16 Form of bonds.-Farm loan bonds issued by joint stock land banks shall be so engraved as to be readily distinguished in form and color from farm loan bonds issued by Federal land banks, and shall otherwise bear such distinguishing marks as the Farm Credit Administration shall direct. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; Mar. 27, 1933, Ex. Or. 6084.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this title.

See that section.

12 U.S. C., $ 818

F.F. L. Act, 8 16 Interest rates; restrictions on mortgage loans.—Joint stock land banks shall not be subject to the provisions of subsection (6) of section 831 of this title as to interest rates on mortgage loans or farm loan bonds, nor to the provisions of paragraphs "First”, “Fourth”, “Sixth”, "Seventh", and "Tenth" of section 771 of this title as to restrictions on mortgage loans: Provided, however, That no loans shall be made which are not secured by first mortgages on farm lands within the State in which such joint stock land bank has its principal office, or within some one State contiguous to such State, except as hereinafter provided. Such joint stock land banks shall be subject to all other restrictions on mortgage loans imposed on Federal land banks in section 771 of this title. (July 17, 1916, c. 245, § 16, 39 Stat. 374; Mar. 4, 1931, c. 518, § 1, 46 Stat. 1548.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this title.

See that section.

12 U. S. C., § 819

F.F. L. Act, § 16 Limitation on interest rates.-Joint stock land banks shall in no case charge a rate of interest on farm loans exceeding by more than 1 per centum the rate of interest established for the last series of farm loan bonds issued by them. (July 17, 1916, c. 245, $ 16, 39 Stat. 374.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in cir

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12 U.S. C., § 820

F.F.L. Act, 8 16 Unauthorized commissions or charges.-Joint stock land banks shall in no case demand or receive, under any form or pretense, any commission or charge not specifically authorized in this chapter. (July 17, 1916, c. 245, § 16, 39 Štat. 374.) 12 U.S.C., $ 821

F. F. L. Act, $ 16 Bonds; form and contents. Each joint stock land bank organized under this chapter shall have authority to issue bonds based upon mortgages taken by it in accordance with the terms of this chapter, Such bonds shall be in form prescribed by the Farm Credit Administration, and it shall be stated in such bonds that such bank is organized under sections 811–823 of this title, is under Federal supervision, and operates under the provisions of this chapter. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; Mar. 27, 1933, Ex. Or. 6084.)

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title.

See that section.

12 U.S.C., 8 822

F.F. L. Act, 8 16 Voluntary liquidation.--Any joint stock land bank organized and doing business under the provisions of this chapter may go into voluntary liquidation by making provision, to be approved by the Farm Credit Administration, for the payment of its liabilities: Provided, That such method of liquidation shall have been duly authorized by a vote of at least two-thirds of the shareholders of such joint stock land bank at.a regular meeting, or at a special meeting called for that purpose, of which at least ten days' notice in writing shall have been given to stockholders. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; May 29, 1920, c. 215, 41 Stat. 691; Mar. 27, 1933, Ex. Or. 6084.)

See 823 (note), and $ 965. 12 U.S.C., § 823

F.F.L. Act, § 16 Assets of liquidating bank; purchase by Federal or joint stock land bank; assumption of liabilities. For the purpose of assisting in any such liquidation authorized as in section 822 of this title provided, any Federal land bank or joint stock land bank may, with the approval of the Farm Credit Administration, acquire the assets and assume the liabilities of any joint stock land bank, and in such transaction any Federal land bank may waive the provisions of this chapter requiring such bank to acquire its loans only through national farm loan associations or agents, and those relating to status of borrower, purposes of loan, and also the limitation as to the amount of individual loans. No Federal land bank shall assume the obligations of any joint stock land bank in such manner as to make its outstanding obligations more than twenty times its capital stock except by creation of a special reserve equal to one-twentieth of the amount of such additional obligations assumed. No joint stock land bank shall assume the obligations of any other joint stock land bank in such manner as to make its outstanding obligations more than fifteen times the amount of its capital and surplus except by creation of a special reserve equal to one-fifteenth of the amount of such additional

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obligations assumed. (July 17, 1916, c. 245, § 16, 39 Stat. 374; May
29, 1920, c. 215, 41 Stat. 691; Mar. 4, 1925, c. 524, 85, 43 Stat. '1263;
Mar. 27, 1933, Ex. Or. 6084.)

Cancellation of notes of Reconstruction Finance Corporation for loans made to Joint
Stock Land Banks, see section 611a of Title 15, Commerce and Trade.

HISTORICAL NOTE

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Joint stock land banks are now prohibited from making loans or issuing tax. exempt bonds, except in circumstances permitted under $ 810 of this title. This prohibition constituted Section 29 of Part 2 of "The Emergency Farm Mortgage Act of 1933." Section 31 of that Act, as amended by Section 3 of the Farm Credit Act of 1937, made provision for loans to joint-stock land banks during a limited period of time to enable them to grant certain emergency relief to their bor

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12 U. S. C., § 824

F.F.L. Act, § 16 Insolvency; receivership; acquisition of assets by other banks; loans by acquiring bank in additional States.—In any case where a joint stock land bank has been, or may be, declared insolvent and placed in the hands of a receiver by the Farm Credit Administration, any Federal land bank or joint stock land bank may, in the manner as may be prescribed by the Farm Credit Administration and with the approval of the Farm Credit Administration, acquire the assets and assume the liabilities of said joint stock land bank in the hands of a receiver. Any joint stock land bank which has acquired or may hereafter acquire the assets and which has assumed or may hereafter assume the liabilities of another joint stock land bank may, if authorized by the Farm Credit Administration, make loans secured by first mortgages on farm lands within the States in which the other joint stock land bank was authorized to make loans at the time of such acquisition, and the acquiring bank may, with the approval of the Farm Credit Administration, continue to make loans in the States where it was authorized to make loans at the time of such acquisition: Provided, however, That the acquiring bank shall not be authorized to make loans at any one time in more than five States, of which one shall be the State in which the bank has its principal office, one shall be contiguous to such State, the other shall be the states in which the acquired joint stock land banks were authorized to make loans at the time of such acquisition, and all of said five States shall be situated in contiguous territory. (July 17, 1916, c. 245, $ 16, 39 Stat. 374; Mar. 4, 1931, c. 518, § 2, 46 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.)

"Farm Credit Administration” mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under $ 810 of this title.

For receivers of joint stock land banks, see also § 963 of this title.

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See that section.

POWERS OF FARM CREDIT ADMINISTRATION

12 U. S. C., & 831

F. F. L. Act, § 17 Enumeration.—The Farm Credit Administration shall have power

(a) Organizing and chartering banks and loan associations; authorizing increase of stock.—To organize and charter Federal'land

banks, and to charter national farm loan associations and joint stock land banks subject to the provisions of this subchapter, and in its discretion to authorize them to increase their capital stock.

(6) Reviewing and altering interest rates.-To review and alter at its discretion the rate of interest to be charged by Federal land banks for loans made by them under the provisions of this subchapter, said rates to be uniform so far as practicable.

(c) Granting or refusing authority to issue bonds.—To grant or refuse to Federal land banks, or joint stock land banks, authority to make any specific issue of farm loan bonds.

(d) Making rules and regulations as to charges on loans. To make rules and regulations respecting the charges made to borrowers on loans under this subchapter for expenses in appraisal, determination of title, and recording.

(e) Requiring reports, etc.; examining banks and associations. To require reports and statements of condition and to make examinations of all banks or associations doing business under the provisions of this subchapter.

(f) Prescribing form and terms of bonds and surety bonds.—To prescribe the form and terms of farm loan bonds, and the form, terms, and penal sums of all surety bonds required under this subchapter and of such other surety bonds as they shall deem necessary, such surety bonds to cover financial loss as well as faithful performance of duty.

(9) Regulating payments between banks.—To require Federal land banks to pay forthwith to any Federal land bank their equitable proportion of any sums advanced by said land bank to pay the coupons of any other land bank, basing said required payments on the amount of farm loan bonds issued by each land bank and actually outstanding at the time of such requirement.

(h) Suspending or removal of directors, registrars, appraisers, and examiners.—To suspend or to remove for cause any district director or director at large, or any registrar, appraiser, examiner, or other official appointed by the Farm Credit Administration under authority of sections 651–656, 659-664* of this title, as amended, the cause of such suspension or removal to be communicated forthwith in writing by said Administration to the person suspended or removed, and in case of a district director or director at large to the proper Federal land bank, Federal intermediate credit bank, production credit corporation and regional bank for cooperatives.

(i) Exercising supervisory authority over banks. To exercise general supervisory authority over the Federal land banks, the national farm loan associations, and the joint stock land banks herein provided for.

(i) Incidental powers.—To exercise such incidental powers as shall be necessary or requisite to fulfill its duties and carry out the purposes of this subchapter. (July 17, 1916, c. 245, $ 17, 39 Stat. 375; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 9, 50 Stat. 707.)

Authorization to make rules and regulations, see & 665 of this title.

Farm Credit Administration was transferred to the Department of Agriculture. See note preceding section 636 of this title.

*In the United States Code this appears as "658–664" although section 658 was repealed in 1944.

12 U.S. C., $ 832

Allocation of expenses of administrative services rendered each year by Farm Credit Administration to certain banking institutions; disposition of moneys.-(a) The Farm Credit Administration shall, prior to the first day of each fiscal year commencing after June 30, 1944, estimate for the ensuing fiscal year the cost of examinations of the joint-stock land banks, Federal land banks, national farmloan associations, banks for cooperatives, Central Bank for Cooperatives, Federal intermediate credit banks, production credit corporations, and production credit associations; shall apportion the amount so determined among the joint-stock land banks, Federal land banks, banks for cooperatives, Central Bank for Cooperatives, Federal intermediate credit banks, production credit corporations, and production credit associations on such equitable basis as said Administration shall determine; and shall assess against and collect in advance the amount so apportioned from the banks, corporations, and other organizations among which the apportionment is made.

(6) The Farm Credit Administration shall prior to the first day of each fiscal year commencing after June 30, 1944, estimate the cost to it for the ensuing fiscal year of the administrative supervision of the Federal land bank system, the banks for cooperatives, the Central Bank for Cooperatives, the Federal intermediate credit banks, and the production credit system; shall apportion the amount so determined among the Federal land banks, the banks for cooperatives, the Central Bank for Cooperatives, the Federal intermediate credit banks, and the production credit corporations on such equitable basis as said Administration shall determine; and shall assess against and collect in advance from such banks and corporations the amount so apportioned.

(c) The amounts collected pursuant to subsections (a) and (b) of this section shall be covered into the Treasury, and credited to a special fund, which fund is authorized to be appropriated to said Administration for expenditure during each fiscal year for salaries and expenses applicable to examination and administrative supervision as set forth in the annual appropriation made for the same fiscal year for salaries and expenses of said Administration. As soon as practicable after the end of each such fiscal year, said Administration shall determine on a fair and reasonable basis (1) the cost of the examination services rendered during the fiscal year to each said bank, corporation, or other organization; and (2) the amount which fairly and equitably should be allocated to each bank and corporation as the cost during the fiscal year of such administrative supervision, and if the sum of these two items in any case is greater than the total amount collected from the bank, corporation, or other organization, the difference shall be collected from such bank, corporation, or other organization, and, if less, shall be refunded from said special fund to the bank, corporation, or other organization entitled thereto. (Sept. 21, 1944, c. 412, title VI, 8 601 (a-c), 58 Stat. 740.)

This section was enacted as a part of the Department of Agriculture Organic Act of 1944.

Provisions similar to this section were contained in the Department of Agriculture Appropriation Act for the following year:

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