(b) Parcels of land acquired in satisfaction of debts or purchased at sales under judgments, decrees, or mortgages held by it. But no such bank shall hold title and possession of any real estate purchased or acquired to secure any debt due to it, for a longer period than 5 years, except with the special approval of the Farm Credit Administration in writing. Every such bank may carry real estate as an asset, for a period of not exceeding 5 years, at its normal value but not to exceed the amount of the bank's investment therein at the time of acquirement of such real estate. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 3, 47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.) Fifth. Depositing securities and funds with reserve banks.-To deposit its securities and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed. (July 17, 1916, c. 245, § 13, 39 Stat. 372.) Sixth. Receiving deposits from associations. To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits. (July 17, 1916, c. 245, § 13, 39 Stat. 372.)

Seventh. Borrowing money.-To borrow money severally, or jointly and severally with one or more other Federal land banks, to give security therefor, and to pay interest thereon. (July 17, 1916, c. 245, § 13, 39 Stat. 372; June 30, 1945, c. 204, § 5, 59 Stat. 267.)

Eighth. Buying and selling obligations of United States; purchas- · ing notes and mortgages of Federal Farm Mortgage Corporation.To buy and sell United States Government obligations direct or fully guaranteed; and to purchase and acquire from the Federal Farm Mortgage Corporation notes and mortgages representing loans made by the Land Bank Commissioner pursuant to section 1016 of this title, upon farm property situated in the farm credit district in which said bank is located, and 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: Provided, That no such note and mortgage, purchase-money mortgage, or contract shall be purchased pursuant hereto unless (1) the unpaid balance of the indebtedness represented or secured thereby, together with any indebtedness to the Federal land bank secured by a prior mortgage on the property, does not exceed 65 per centum of the normal value of the farm as determined upon appraisal made pursuant to this subchapter; (2) the borrower acquires such stock in a national farm loan association, in addition to any available stock which he may already own, as may be necessary to constitute an amount equal to one share of stock for each $100 of the unpaid balance of the indebtedness represented or secured by the note and mortgage, purchase-money mortgage, or contract being purchased and acquired, together with the indebtedness secured by any prior lien on the property in favor of the Federal land bank; (3) the national farm loan association in which such stock is held elects the borrower to membership, if not already a member, and agrees to be liable for the indebtedness secured by the note and mortgage, purchase-money mortgage, or contract being purchased and acquired; and (4) the land bank takes such action, if any, as may be necessary to reduce the rate of interest on the indebtedness secured by the mortgage, purchase-money mortgage, or contract acquired or purchased to the same rate of interest the bank is charging on first-mortgage loans which it is then making. (July 17, 1916, c. 245,

§ 13, 39 Stat. 372; Aug. 19, 1937, c. 704, § 15 (a), 50 Stat. 708; June 30, 1945, c. 204, § 6, 59 Stat. 267.)

Ninth. Charging fees for loans.-To charge applicants for loans and borrowers, under rules and regulations promulgated by the Farm Credit Administration, reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by law in the State where the land to be mortgaged is located may also be included in the preliminary costs of negotiating mortgage loans. The borrower may pay such fees and charges or he may arrange with the Federal land bank making the loan to advance the same, in which case said expenses shall be made a part of the face of the loan and paid off in amortization payments. Such addition to the loan shall not be permitted to increase said loan above the limitations provided in section 771 of this title. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 27, 1933, Ex. Or. 6084.)

Tenth. Extension of obligation unpaid under terms of mortgages.When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. The sum of $25,000,000 of the amount authorized to be appropriated under section 698 of this title shall be used exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this paragraph. The terms of any such extension shall be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension, or in the case of any deferment of principal as provided in paragraph "Twelfth" of section 771 of this title, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such subscriptions shall be subject to call, in whole or in part, by the bank with the approval of the Commissioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscriptions to the paid-in surplus of the Federal land banks, there is authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Land Bank Commissioner. The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Land Bank Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion

the bank has resources available therefor. The unexpended balances of the funds appropriated by the Fourth Deficiency Act, fiscal year 1933, approved June 16, 1933 (48 Stat. 279), the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Stat. 1060), the Second Deficiency Appropriation Act, fiscal year 1935, approved August 12, 1935 (49 Stat. 592), the First Deficiency Appropriation Act, fiscal year 1936, approved June 22, 1936 [49 Stat. 1597], the Treasury Department Appropriation Act, 1937, approved June 23, 1936 [49 Stat. 1827], and the Treasury Department Appropriation Act, 1938, approved May 14, 1937 [50 Stat. 137], for the purpose of enabling the Secretary of the Treasury to make subscriptions to the paid-in surplus of the Federal land banks, as provided for in this paragraph, and the proceeds of all repayments on account of such paid-in surplus, shall be held in the Treasury of the United States as a revolving fund and shall be available for subscriptions to paid-in surplus made pursuant to this paragraph. (July 17, 1916, c. 245 § 13, 39 Stat. 372; Jan. 23, 1932, c. 9, § 5, 47 Stat. 14; May 12, 1933, c. 25, § 23, 48 Stat. 43; June 16, 1933, c. 98, § 80, (a), 48 Stat. 273; Aug. 19, 1937, c. 704, § 19, 50 Stat. 709.)

For interest rate on extended payments, see paragraph "Twelfth" of this section.

Eleventh. Postponement of payment of installments of loans.-At any time within five years after March 4, 1933, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approval of such application by the directors of the bank postpone the payment of any unpaid installment or installments in the manner herein provided in this section. Such postponed payment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed payment, and in the case of semiannual installments, by paying at the time each succeeding semiannual installment is due, one-twentieth of the postponed payment, until the amount of such postponed payment has been paid. In any case in which the number of remaining installments due on the mortgage is less than ten, in the case of annual installments, or less than twenty, in the case of semiannual installments, the amount of the postponed payment shall be distributed proportionately over the remaining number of installment payments. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 4, 47 Stat. 1548.)

Twelfth. Interest rate; on extended payments; on taxes, liens, etc., paid by mortgagee. For the period of five years after March 4, 1933, every borrower shall pay simple interest on extended payments at the same rate of interest as stipulated in the mortgage securing the loan as to payments not in default and by express covenant in his mortgage deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear interest at the rate provided in the mortgage. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 4, 47 Stat. 1548.)

Thirteenth. Reamortization of mortgages. When in the judgment of the directors conditions justify it, and with the approval of the Farm Credit Administration, to reamortize, in whole or in part, the aggregate amount remaining unpaid under the terms of any mortgage, and to accept payment of such aggregate amount on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable on the mortgage, and in addition thereto such amounts to be applied upon the principal as will extinguish the debt within an agreed period of not more than forty years from the date of the reamortization; to deposit such mortgages with the farm loan registrar as collateral security for farm loan bonds at an amount not exceeding the principal of the original loan remaining unpaid at the date of such amortization; and with the approval of the Farm Credit Administration to charge the borrower an amount not to exceed the actual cost incurred in connection with such reamortization. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Mar. 4, 1933, c. 270, § 4, 47 Stat. 1548; Mar. 27, 1933, Ex. Or. 6084.) Fourteenth. Agreements to share gains and losses with associations. To enter into agreements with national farm loan associations of the district under the terms of which losses incurred and gains realized on account of the disposition of lands covered by a defaulted mortgage indorsed by such association will be shared equally by the bank and the association. (July 17, 1916, c. 245, § 13, 39 Stat. 372; June 16, 1933, c. 98, § 79, 48 Stat. 272.)

Fifteenth. Exchange farm loan bonds for Federal Farm Mortgage Corporation bonds. To exchange farm loan bonds for Federal Farm Mortgage Corporation bonds of equal face value. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Jan. 31, 1934, c. 7, § 8 (a), 48 Stat. 347; Aug. 19, 1937, c. 704, § 15 (b), 50 Stat. 708.)

Sixteenth. Exchange of Federal Farm Mortgage Corporation bonds for farm loan bonds.-To exchange Federal Farm Mortgage Corporation bonds for farm loan bonds of equal face value. (July 17, 1916, c. 245, § 13, 39 Stat. 372; Jan. 31, 1934, c. 7, §8 (a), 48 Stat. 347.)

Seventeenth. Loans to other Federal land banks. To make loans to other Federal land banks upon such terms and conditions as may be approved by the Farm Credit Administration. (July 17, 1916, c. 245, §13, 39 Stat. 372; Aug. 19, 1937, c. 704, § 16, 50 Stat. 708.)

Eighteenth. Accepting conditional payments for subsequent credit on indebtedness. To accept conditional payments from borrowers for subsequent credit upon their indebtedness to the land bank; and to allow interest on such payments. All conditional payments so accepted shall be subject to such terms and conditions, not inconsistent with the provisions of this paragraph and with any rules or regulations prescribed for its efficient execution by the Farm Credit Administration, as may be agreed upon at the time of their acceptance. If a conditional payment is accepted for subsequent credit upon a first mortgage which is at the time or is thereafter pledged as collateral security for an issue of farm-loan bonds, all requirements, conditions, and limitations set forth in sections 897-899 of this title shall apply to such payment the same as though it were a present payment on the principal of the mortgage pledged as collateral security, and the land bank shall forthwith notify the farm loan registrar of its receipt of

such payment and account to him therefor. Every conditional payment accepted by a land bank for subsequent credit upon indebtedness of a borrower shall be credited upon such indebtedness as the borrower may from time to time direct in accordance with the terms and conditions upon which the payment has been accepted, and at the option of the bank may in any event be credited upon such indebtedness as and when it matures if it is not otherwise paid by the borrower at or before maturity. If at any time after five years from the date on which a borrower's loan was made, the aggregate of the borrower's conditional payments accepted on account of his indebtedness under such loan and not yet credited thereon equals or exceeds his total indebtedness under the loan, all unmatured indebtedness under such loan shall become due and payable at once, and the payments so accepted shall forthwith be credited upon the borrower's indebtedness under the loan so far as may be necessary to pay it in full. Any balances of conditional payments remaining uncredited when the indebtedness on account of which they have been accepted has been paid in full shall be refunded to the borrower by the land bank., (July 17, 1916, c. 245, § 13, 39 Stat. 372; Aug. 19, 1937, c. 704, § 17, 50 Stat. 708; June 30, 1945, c. 204, § 7, 59 Stat. 268.)

Nineteenth. Deferment of installment payments.-To permit any borrower to defer payment of the principal portions of installments on his loan in order that he may pay, in whole or in part, any indebtedness which is secured by a lien junior to the lien of the bank upon the farm land mortgaged to secure his loan.

Federal land banks authorized to make their services and facilities available to Land Bank Commissioner to aid in administering subchapter II of this chapter. See 1018 of this title.

RESTRICTIONS ON FEDERAL LAND BANKS

12 U. S. C., § 791 F. F. L. Act, § 14 Enumeration of restrictions.-No Federal land bank shall have

power

First. Limiting deposits. To accept deposits of current funds payable upon demand except from its own stockholders, or to transact any banking or other business not expressly authorized by the provisions of this subchapter. (July 17, 1916, c. 245, § 14, 39 Stat. 372.)

Second. Loaning on first mortgages except through associations.To loan on first mortgage except through national farm loan associations as provided in sections 711-722 and sections 731-734 of this title [secs. 7 and 8 of the Federal Farm Loan Act, as amended], or through agents as provided in sections 801-808 of this title, or direct to borrowers as provided in section 723 of this title. (July 17, 1916, c. 245, § 14, 39 Stat. 372; Mar. 4, 1933, c. 270, § 5 (a), 47 Stat. 1549.)

Third. Accepting other than first mortgages.-To accept any mortgages on real estate except first mortgages created subject to all limitations imposed by sections 771 and 772 of this title, and those taken as additional security for existing loans. (July 17, 1916, c. 245, § 14, 39 Stat. 372.)

Fourth. Issuing excess of bonds; receiving excess of mortgages from associations. To issue or obligate itself for outstanding farm loan