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by it for bonds of the corporation of equal face value. (Jan. 31, 1934, ch. 7, § 4 (a), 48 Stat. 345; Apr. 27, 1934, ch. 168, § 14, 48 Stat. 647.)

12 U. S. C. § 1020c-1

Same; limitation on aggregate bond amount

The aggregate amount of bonds the Corporation may issue and have outstanding at any one time shall not exceed $500,000,000. (June 4, 1956, ch. 355, title IV, § 401, 70 Stat. 240.)

Section is from Department of Agriculture and Farm Credit Administration Appropriation Act, 1957. A similar limitation was contained in appropriation acts for prior years, beginning with 1949.

12 U. S. C. §1020d

Purchase of consolidated farm loan bonds; loans to Federal and joint stock land banks; investment in mortgages; extensions; sale and assignment of notes and mortgages

F. F. M. C. Act § 4 (b)

The corporation is further authorized to purchase from time to time, for cash, such consolidated farm loan bonds at such prices and upon such terms as may be approved by the board of directors of the corporation; to make loans to Federal land banks and joint stock land banks on the security of real estate mortgages, sheriff's certificates, sales contracts and real estate, upon such terms and conditions as shall be prescribed by the board of directors of the corporation: Provided, however, That loans outstanding to joint stock land banks under this section shall not at any one time exceed in the aggregate $10,000,000; to make loans to Federal land banks on the security of consolidated farm loan bonds; and to invest its funds in mortgage loans made under section 1016 of this title.

When in the judgment of the directors conditions justify it, the corporation shall have power to extend, in whole or in part, any unpaid obligation under the terms of any mortgage, and to accept payment of any such obligation together with interest thereon, at a rate not exceeding 5 per centum per annum, during such period and in such amounts as may be agreed upon at the date of making such extension. The Corporation is authorized and empowered to sell and assign, without recourse and without warranty, its notes and mortgages representing loans made by the Land Bank Commissioner pursuant to section 1016 of this title, to the Federal land bank located in the farm credit district in which the mortgaged farm properties are situated and to sell and assign in like manner purchase money mortgages and contracts for the sale of farms held by the Federal Farm Mortgage Corporation in connection with the sale of farm property situated in such district. (Jan. 31, 1934, ch. 7, § 4 (b), 48 Stat. 346; Aug. 19, 1937, ch. 704, §§ 2, 4, 50 Stat.703; June 30, 1945, ch. 204, § 15, 59 Stat. 269.)

Abolishment of office of Land Bank Commissioner, see section 636f (a) of this

12 U. S. C. § 1020e

Preparation of bonds

F. F. M. C. Act § 4 (c)

In order to furnish bonds for delivery by the Federal Farm Mortgage Corporation, the Secretary of the Treasury is authorized to prepare suitable bonds in such form, subject to the provisions of this subchapter, as the board of directors may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the corporation. The engraved plates, dies, bed-pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The corporation shall reimburse the Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such bonds. (Jan. 31, 1934, ch. 7, § 4 (c), 48 Stat. 346.)

12 U. S. C. § 1020f

Exemptions from taxation

F. F. M. C. Act § 12

(a) The corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.

(b) Mortgages executed to the Land Bank Commissioner and mortgages held by the Corporation, and the credit instruments secured thereby, and bonds issued by the Corporation under the provisions of this subchapter, 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 (except surtaxes, estate, inheritance, and gift taxes). (Jan. 31, 1934, ch. 7, § 12, 48 Stat. 347; Feb. 26, 1934, ch. 33, 48 Stat. 360.)

Abolishment of office of Land Bank Commissioner, see section 636f (a) of this

title.

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. S. C. 742a.)

12 U. S. C. § 1020g

Severability clause;

reservation of right to amend

F. F. M. C. Act § 17

(a) If any provision of this subchapter, or the application thereof to any person or circumstances, is held invalid, the remainder of the

subchapter, and the application of such provision to other persons or circumstances, shall not be affected thereby.

(b) The right to alter, amend, or repeal this subchapter is expressly reserved. (Jan. 31, 1934, ch. 7, § 17, 48 Stat. 348.)

12 U. S. C. § 1020h

Citation of subchapter

F. F. M. C. Act § 18

This subchapter may be cited as the "Federal Farm Mortgage Corporation Act." (Jan. 31, 1934, ch. 7, § 18, 48 Stat. 349.)

Subchapter III-FEDERAL INTERMEDIATE CREDIT BANKS

Provisions of this subchapter concerning Federal intermediate credit banks constitute title II of the Federal Farm Loan Act, act July 17, 1916, ch. 245, 39 Stat. 360, as added to that act by act Mar. 4, 1923, ch. 252, title I, 42 Stat. 1454. For complete distribution of the Federal Farm Loan Act in this code, see note under section 641 of this title.

Organization

F. F. L. Act § 201 (a)

12 U. S. C. § 1021

Number, names, and charters of banks

The Farm Credit Administration shall have power to grant charters for twelve institutions to be known and styled as "Federal intermediate credit banks." (July 17, 1916, ch. 245, title II, § 201 (a), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454, and amended Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 1022

Location; directors; officers

and employees; bylaws

F. F. L. Act § 201 (b)

One such institution shall be established in each farm credit district in the same city as the Federal land bank of the district. The members of the several farm credit boards of the farm credit districts provided for in section 640a of this title shall be ex officio the directors of the several Federal intermediate credit banks provided for in this subchapter and shall have power, subject to the approval of the Farm Credit Administration, to employ and fix the compensation of such officers and employees of such Federal intermediate credit banks as may be necessary to carry on the business authorized by this subchapter. The directors shall have power, subject to the approval of the Farm Credit Administration, to adopt such bylaws as may be necessary for the conduct

of the business of the banks. (July 17, 1916, ch. 245, title II, § 201 (b), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454, and amended June 16, 1933, ch. 98, title VII, § 76 (a), 48 Stat. 271; Aug. 19, 1937, ch. 704, § 10, 50 Stat. 707; July 26, 1956, ch. 741, title I, § 104 (a), 70 Stat. 663.)

12 U. S. C. § 1023

Corporate powers; suits by or against

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Each Federal intermediate credit bank shall have all the usual powers of corporations, and shall have power to sue and be sued both in law and equity, and for purposes of jurisdiction shall be deemed a citizen of the State where it is located.

Each Federal intermediate credit bank shall have power to acquire and dispose of such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be leased to others for revenue purposes. (July 17, 1916, ch. 245, title II, § 201 (c), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454, and amended Aug. 19, 1937, ch. 704, § 26, 50 Stat. 715.)

12 U. S. C. § 1023a

Maximum amount for administrative expenses; exclusions

Not to exceed $1,932,000 (to be computed on an accrual basis) of the funds of the banks shall be available for administrative expenses, including the purchase of not to exceed two passenger motor vehicles for replacement only, and services performed for the banks by other Government agencies (except services and facilities furnished and examinations made by the Farm Credit Administration, and services performed by any Federal Reserve bank and by the United States Treasury in connection with the financial transactions of the banks); and said total sum shall be exclusive of interest expense, legal and special services performed on a contract or fee basis, and expenses in connection with the acquisition, operation, maintenance, improvement, protection, or disposition of real or personal property belonging to the banks or in which they have an interest. (June 4, 1956, ch. 355, title IV, § 401, 70 Stat. 240.)

Section was enacted as a part of the Department of Agriculture and Farm Credit Administration Appropriation Act, 1957.

12 U. S. C. § 1023b

Utilization of funds

for administrative expenses

F. C. Act 1956 § 201 (b)

After January 1, 1959, the Federal intermediate credit banks may utilize their funds for administrative expenses without regard to the

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limitations contained in any other Act of Congress governing the expenditure of appropriated funds. (July 26, 1956, ch. 741, title II, § 201 (b), 70 Stat. 667.)

12 U. S. C. § 1024

Fiscal agents for United States

F. F. L. Act § 201 (d)

Federal intermediate credit banks, when designated for that purpose by the Secretary of the Treasury, shall act as fiscal agents of the United States Government and perform such duties as shall be prescribed by the Secretary of the Treasury. (July 17, 1916, ch. 245, title II, § 201 (d), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454.)

12 U. S. C. § 1025

Insolvency; receivership

F. F. L. Act § 201 (e)

Upon default of any obligation any Federal intermediate credit bank 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, title II, § 201 (e), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454, and amended Ex. Ord. No. 6084, Mar 27, 1933.)

12 U. S. C. § 1026

Application for charter

F. F. L. Act § 201 (f)

The charters to such Federal intermediate credit banks shall be granted upon application of the directors of the Federal land banks, which application shall be in such form as the Farm Credit Administration shall prescribe. (July 17, 1916, ch. 245, title II, § 201 (f), as added Mar. 4, 1923, ch. 252, title I, § 2, 42 Stat. 1454, and amended Ex. Ord. No. 6084, Mar. 27, 1933.)

12 U. S. C. § 1027

Merger of production credit corporations
in Federal intermediate credit banks-
(a) Transfer of assets

F. C. Act 1956 § 101

The production credit corporation in each farm credit district is merged in the Federal intermediate credit bank of the district and all assets, funds, contracts, property, and records belonging to such corporation, except stock in production credit associations, are transferred to and vested in such bank. All obligations and liabilities of the production credit corporation shall be assumed by the Federal intermediate credit bank of the district. Stock held by each production credit cor

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