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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. 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, c. 7, § 4(b), 48 Stat. 346; Aug. 19, 1937, C. 704, SS 2, 4, 50 Stat. 703; June 30, 1945, c. 204, § 15, 59 Stat. 264.)

12 U.S.C., § 1020e

Preparation of bonds. 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, bedpieces, 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, c. 7, § 4 (c), 48 Stat. 346.)

12 U.S. C., § 1020f

Exemptions from taxation.—(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

and Ons; on is CONmay lake rity " ceal the ins at to ls; of

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 corporaton 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, c. 7, § 12, 48 Stat. 347; Feb. 26, 1934, c. 33, 48 Stat. 360.)

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.)

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12 U.S.C., & 1020g

Severability clause; reservation of right to amend.-(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 hereby expressly reserved. (Jan. 31, 1934, c. 7, § 17, 48 Stat. 348.) 12 U.S. C., § 1020h

Citation of subchapter.—This subchapter may be cited as the "Federal Farm Mortgage Corporation Act.” (Jan. 31, 1934, c. 7, $ 18,48 Stat. 349.)

SUBCHAPTER III-FEDERAL INTERMEDIATE

CREDIT BANKS

HISTORICAL NOTE The provisions of this subchapter relative to Federal intermediate credit banks constitute Title II of the “Federal Farm Loan Act” (July 17, 1916, c. 245, 39 Stat. 360). See section 641 of this chapter. This Act was amended on March 4, 1923 (c. 252, 42 Stat. 1454), by the addition of a second title relative to Federal intermediate credit banks, the provisions of which, as amended, are included in this subchapter. The office of Intermediate Credit Commissioner was created by the act of June 16, 1933. (See section 638 at the beginning of this chapter.)

ORGANIZATION 12 U. S.C., § 1021

F.F. L. Act, 8 201 (a) 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, c. 245, § 201 (a); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1454; Mar. 27, 1933, Ex. Or. 6084.)

Financial Control of Corporations, see Chap. 14, Title 31, Money and Finance.

12 U.S. C., & 1022

F.F. L. Act, 8 201 (b) Location; directors; officers and employees. 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. (July 17, 1916, c. 245, § 201 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454; June 16, 1933, c. 98,

76 (a), 48 Stat. 271; Aug. 19, 1937, c. 704, $ 10, 50 Stat. 707.) Person convicted of felony or adjudged liable in damages for fraud ineligible to be administrative or executive official of Federal intermediate credit bank, see &

of this

title.

12 U.S.C., § 1023

F. F. L. Act, § 201 (c) Corporate powers; suits by or against.–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, c. 245, § 201 (c); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1454; Aug. 19, 1937, c. 704, $ 26, 50 Stat. 715.)

12 U.S. C., 1024

F. F. L. Act, 8 201 (d) Fiscal agents for United States.-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, c. 245, § 201 (d); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1454.)

12 U.S. C., & 1025

F.F.L. Act, 8 201 (e) Insolvency; receivership. 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, 964–966 of this title regarding national farm loan associations. (July 17, 1916, c. 245, § 201 (e); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1454; Mar. 27, 1933, Ex. Or. 6084.)

The sections referred to in the text appear as "961-963, 964-967" in the United States Code.

12 U.S. C., § 1026

F.F. L. Act, 8 201 (f) Application for charter. 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

201 (b)

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as the Farm Credit Administration shall prescribe. (July 17, 1916, c. 245, $ 201 (f); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1454; 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.

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DISCOUNTS AND LOANS

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12 U. S. C., 8 1031

F.F. L. Act, $ 202 (a) Lending powers; purchase and sale of debentures of intermediate credit banks; loans to cooperative associations.-Federal intermediate credit banks, when chartered and established, shall have power, subject solely to such restrictions, limitations, and conditions as may be imposed by the Farm Credit Administration not inconsistent with the provisions of this subchapter

(1) To discount for, or purchase from, any national bank, and/or any State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, cooperative bank, credit union, cooperative association of agricultural producers, organized under the laws of any State or of the Government of the United States, and/or any other Federal intermediate credit bank, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation the proceeds of which have been advanced or used in the first instance for any agricultural purpose or for the raising, breeding, fattening, or marketing of livestock; and to make loans or advances direct to any such organization, secured by such obligations; and to discount for, or purchase from, any production credit association or bank for cooperatives organized under subchapters IV, V, and VI of this chapter, or any production credit association in which a Production Credit Corporation organized under such subchapter IV* holds stock, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation presented by such association or bank, and to make loans and advances direct to any such association or bank secured by such collateral as may be approved by the Governor of the Farm Credit Administration;

(2) To buy or sell, with or without recourse, debentures issued by any other Federal intermediate credit bank; and

(3) To make loans or advances direct to any cooperative association organized under the laws of any State and composed of persons engaged in producing, or producing and marketing, staple agricultural products, or livestock, if the notes or other such obligations representing such loans are secured by warehouse receipts, and/or shipping documents covering such products, and/or mortgages on livestock, and/or such other collateral as may be approved by the Governor of the Farm Credit Administration: Provided, That no such loan or advance, when secured only by warehouse receipts and/or shipping documents, and/or mortgages on livestock, shall exceed 75 per centum of the market value of the products covered by said warehouse receipts and/or shipping documents, or of the livestock covered by said mort

*

*

*The comparable text in the United States Code reads: "*

organized under sections 1131d, 1134 and 1134a of this title, or any production credit association in which

gages; and to accept drafts or bills of exchange issued or drawn by any such association when secured by warehouse receipts and/or shipping documents covering staple agricultural products as provided in this section, at such rates of commission as may be approved by the Governor of the Farm Credit Administration. (July 17, 1916, c. 245, $ 202 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1455; Mar. 4, 1925, c. 524, § 7, 43 Stat. 1264, June 26, 1930, c. 616, § 1, 46 Stat. 816; May 19, 1932, c. 191, § 1, 47 Stat. 159; June 16, 1933, c. 98, $ 76 (b), (c), 48 Stat. 271; Mar 27, 1933, Ex. Or. 6084; June 3, 1935, c. 164, $ 5 (a), (b), 49 Stat. 315.)

"Farm Credit Administration," mentioned in the text the first and third times, 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.

12 U.S. C., 1032

F. F. L. Act, $ 202 (b) Purchase or discount of paper from or for national banks, State banks, trust companies, savings institutions, or corporations making loans for agricultural or livestock purposes; limitations upon amount.—No paper shall be purchased from or discounted for any national bank, State bank, trust company, or savings institution under sections 1031-1033 of this title, if the amount of such paper added to the aggregate liabilities of such national bank, State bank, trust company, or savings institution, whether direct or contingent (other than bona fide deposit liabilities), exceeds the amount of such liability permitted under the laws of the jurisdiction creating the same; or exceeds twice the paid in and unimpaired capital and surplus of such national bank, State bank, trust company, or savings institution. No paper shall under sections 1031-1033 of this title be purchased from or discounted for any other corporation engaged in making loans for agricultural purposes or for the raising, breeding, fattening, or marketing of livestock, if the amount of such paper added to the aggregate liabilities of such corporation exceeds the amount of such liabilities permitted under the laws of the jurisdiction creating the same; or exceeds ten times the paid in and unimpaired capital and surplus of such corporation. It shall be unlawful for any national bank which is indebted to any Federal intermediate credit bank upon paper discounted or purchased under sections 1031–1033 of this title, to incur any additional indebtedness, if by virtue of such additional indebtedness its aggregate liabilities, direct or contingent, will exceed the limitations herein contained.

(July 17, 1916, c. 245, $ 202 (b); Mar. 4, 1923, c. 252, $ 2,42 Stat. 1455.)

12 U.S.C., & 1033

F.F. L. Act, 8 202 (c) Maturity and sale of loans, advances, or discounts.-Loans, advances, or discounts made under sections 1031–1033 of this title shall have a maturity at the time they are made or discounted by the Federal intermediate credit bank of not more than three years. Any Federal intermediate credit bank may in its discretion sell loans or discounts made under said sections with or without its indorsement. (July 17, 1916, c. 245, $ 202 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1455; June 26, 1930, c. 616, § 2, 46 Stat. 816.)

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