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corporation (A) unless all the stock of the corporation is owned by individuals themselves personally actually engaged in the raising of livestock on the land to be mortgaged as security for the loan, except in a case where the Land Bank Commissioner permits the loan if at least 75 per centum in value and number of shares of the stock of the corporation is owned by the individuals personally actually so engaged, and (B) unless the owners of at least 75 per centum in value and number of shares of the stock of the corporation assume personal liability for the loan. No loan shall be made to any corporation which is a subsidiary of, or affiliated (either directly or through substantial identity of stock ownership) with, a corporation ineligible to procure a loan in the amount applied for. (May 12, 1933, c. 25, $ 32, Ā8 Stat. 48; June 3, 1935, c. 164, § 2 (c), 49 Stat. 313.)

(g) Loans by Commissioner on behalf of Federal Farm Mortgage Corporation; loans in cash or bonds; amount available.Until July 1, 1947, the Land Bank Commissioner shall, in his name, make loans under this section on behalf of the Federal Farm Mortgage Corporation, and may make such loans in cash or in bonds of the corporation, or if acceptable to the borrower, in consolidated farm loan bonds; but no such loans shall be made by him after July 1, 1947, except for the purpose of refinancing loans previously made by him under this section. As much as may be necessary of the assets of the corporation, including the bonds (and proceeds thereof) issued under section 1020c of this title, may be used for the purposes of this section. (May 12, 1933, c. 25, $ 32, 48 Ştat. 48; Jan. 31, 1934, c. 7, § 9, 48 Stat. 347, June 3, 1935, c. 164, § 2 (d), 49 Stat. 314; Feb. 1, 1940, c. 19, 54 Stat. 19; June 3, 1942, c. 321, 56 Stat. 306; June 26, 1943, c. 146, 57 Stat. 196; July 12, 1946, c. 570, $ 1,60 Stat. 532.)

(h) Execution of instruments by Federal land banks; presumption of authority.-Any Federal land bank, when duly authorized by the Land Bank Commissioner and the Federal Farm Mortgage Corporation, shall have the power to execute any instrument relating to any mortgage taken to secure a loan made or to be made under this section, or relating to any property included in any such mortgage, or relating to any property acquired by the Land Bank Commissioner and/or the Federal Farm Mortgage Corporation. Any such instrument heretofore or hereafter executed on behalf of the Land Bank Commissioner and/or the Federal Farm Mortgage Corporation by a Federal land bank, through its duly authorized officers, shall be conclusively presumed to have been duly authorized by the Land Bank Commissioner and the Federal Farm Mortgage Corporation. (May 12, 1933, c. 25, $ 32, 48 Stat. 48; June 3, 1935, c. 164, § 2 (e), 49 Stat. 314.)

(i) Rate of interest payable on certain installment dates.—Notwithstanding the foregoing provisions of this section, the rate of interest on loans made under this section shall not exceed 4

per centum per annum' for all interest payable on installment dates occurring on or after July 22, 1937, and prior to July 1, 1940, and shall not exceed 31/2 per centum per annum for all interest payable on installment dates occurring on or after July 1, 1940, and prior to July 1, 1944, and shall not exceed 4 per centum per annum for all interest payable on installment dates oerurring on or after July 1, 1944, and

for in so-called purchase-money mortgages and real estate sales contracts taken by the Federal Farm Mortgage Corporation, the rate of interest payable on such mortgages and contracts shall not exceed 4 per centum per annum for all interest payable on installment dates occurring on and after July 1, 1942, and prior to July 1, 1944. (May 12, 1933, c. 25, § 32, 48 Stat. 48; July 22, 1937, c. $16, § 2, 50 Stat. 521; June 16, 1938, c. 462, $ 2, 52 Stat. 709; Feb. 1, 1940, c. 19, 54 Stat. 19; June 29, 1940, c. 441, § 1, 54 Stat. 684; June 27, 1942, c. 449, § 2, 56 Stat. 392; June 26, 1943, c. 146, 57 Stat. 196; June 30, 1944, c. 329, 58 Stat. 646.)

Transfer of funds and proceeds thereof made available to Land Bank Commissioner under this section, and mortgages and credit instruments taken by Commissioner, to Federal Farm Mortgage Corporation, see section 1020 (b) of this title.

In connection with Commissioner's loans in Puerto Rico, see note * to § 672 of this title. Commissioner loans on lands in drainage, irrigation, or conservancy districts, see § 773a

of this title.

12 U.S.C., § 1017

Rules and regulations; appointment, employment, and compensation of officers, employees, and agents. The Land Bank Commissioner is authorized to make such rules and regulations, and to appoint, employ, and fix the compensation of such officers, employees, attorneys, and agents as may be necessary to carry cut the purposes of this subchapter and to make the relief contemplated by this subchapter immediately available, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States: Provided, That no salary or compensation in excess of $10,000 shall be paid to any person employed under the terms of the foregoing section. (May 12, 1933, c. 25, $ 33, 48 Stat. 49; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273.)

12 U.S. C., $ 1018

Facilities of Federal land banks and national farm loan associations available to Commissioner.--The Federal land banks and the national farm loan associations are authorized, upon request of the Land Bank Commissioner, to make available to him their services and facilities to aid in administering the provisions of this subchapter. (May 12, 1933, c. 25, $ 34, 48 Stat. 49; June 16, 1933, c. 98, $ 80 (a), 48 Stat. 273.)

12 U.S.C., § 1019

Penalties for false representation in obtaining loan.-Any person who shall knowingly make any material false representation for the purpose of obtaining any loan under sections 1016-1019 of this title, or in assisting in obtaining any such loan, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than six months, or both. (May 12, 1933, c. 25, $ 35, 48 Stat. 49.).

CON ceoi

SUBCHAPTER II-A.-FEDERAL FARM MORTGAGE

CORPORATION

Rates Dlar stat 2,34

Farm Credit Administration, Federal Farm Mortgage Corporation, and Commodity Credit Corporation, and their functions and activities, together with their respective personnel, records, and property were transferred to Department of Agriculture by 1939 Reorg. Plan No. I, sec. 401, effective July 1, 1939, set out in note under section 133t of Title 5, Executive Departments and Government Officers and Employees.

Financial control of corporations, see Chap. 14 of Title 31, Money and Finance.

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12 U.S.C., § 1020

Establishment of corporation; directors; bylaws; regulations; officers and employees.-There is established a corporation to be known as the "Federal Farm Mortgage Corporation”, in this subchapter referred to as the “corporation. The principal office of the corporation shall be located in the District of Columbia and the management of the corporation shall be vested in a board of directors consisting of the Secretary of the Treasury, or an officer of the Treasury designated by him, the Governor of the Farm Credit Administration, in this subchapter referred to as the "Governor”, and the Land Bank Commissioner. The directors shall receive no additional compensation for their services as directors of the corporation, but may be allowed actual necessary traveling and subsistence expenses when engaged in the business of the corporation outside of the District of Columbia. The Governor shall be the chairman of the board of directors. The directors shall have power to adopt such bylaws, rules, regulations, and amendments thereto as they deem necessary for the conduct of the business of the corporation authorized under this subchapter. The directors shall have power, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States to employ and fix the compensation and duties of such agents, officers, and employees of the corporation as may be necessary to carry out the powers and duties conferred upon the corporation by this subchapter, to require bonds of them and fix the penalties thereof and dismiss them at pleasure, and to prescribe the manner in which the obligations of the corporation shall be incurred and its expenses allowed and paid, but the rates of compensation of such agents, officers, and employees of the corporation shall not exceed the rates of compensation prescribed for comparable duties by sections 661–663, 661–669, 670–672, 673, and 674 of Title 5. (Jan. 31, 1934, c. 7, § 1, 48 Stat. 344.)

Federal Farm Mortgage Corporation was transferred to the Department of Agriculture.
See note preceding this section.

United States obligations issued after February 28, 1941, subject to Federal taxation.
See section 742a of Title 31, Money and Finance.
12 U.S.C., § 1020a

Period of succession; powers; free use of mails; use of Government facilities. The corporation shall have succession until dissolved by Act of Congress; shall have power to sue and be sued in any court, to adopt and use a corporate seal, to make contracts, and to acquire, hold, and dispose of real and personal property necessary and

powers as may be necessary and incident to carrying out its powers and duties under this subchapter. The corporation shall be entitled to the free use of the United States mails in the same manner as the executive departments of the Government. The corporation, with the consent of any board, commission, independent establishment, or executive department of the Government, may avail itself of the use of information, services, facilities, officers, agents, and employees thereof, in carrying out the provisions of this subchapter. (Jan. 31, 1934, c. 7, § 2, 48 Stat. 345.)

Authorization of Federal Farm Mortgage Corporation to act as fiscal agent of the United States, see $ 1138b of this title.

12 U.S.C., & 1020a-1

Capital investment expenditures as nonadministrative expenses.-All expenditures which under the accounting system prescribed for the Federal Farm Mortgage Corporation by the General Accounting Office are to be treated as capital investments, increasing the book value of acquired fixed property (real estate and chattel), shall be considered as nonadministrative expenses for the purposes of section 712a of title 15. (September 21, 1944, c. 412, title VI, $ 603, 58 Stat. 741.)

12 U.S. C., & 1020b

Capital; amount; subscription by United States.—The capital of the corporation shall be in the sum of $200,000,000, which shall be subscribed by the Governor on behalf of the United States in such amounts and at such times as he deems necessary for the purposes of the corporation. For the purpose of such capital subscription, the funds and proceeds thereof made available to the Land Bank Commissioner under section 1016 of this title and the mortgages taken by the Commissioner and the credit instruments secured thereby are transferred to the Corporation. The Federal Farm Mortgage Corporation is authorized to repay to the Secretary of the Treasury on behalf of the United States from time to time such portions of the amounts subscribed to the capital stock of the Corporation as are found by the board of directors to be in excess of the capital necessary to enable the Corporation to carry out its functions as authorized by law. The proceeds of such repayments shall be held in the Treasury of the United States as a fund available for subscription, by the Governor on behalf of the United States with the approval of the Secretary of the Treasury, to the capital of the Corporation when, in the judgment of the directors of the Corporation, additional subscriptions to its capital are necessary. (Jan. 31, 1934, c. 7, § 3, 48 Stat. 345, June 25, 1940, c. 427, $ 4, 54 Stat. 573; June 30, 1945, c. 204, § 14, 59 Stat. 269; July 12, 1946, c. 570, $ 2,60 Stat. 532.)

Cancellation of notes, indebtedness, etc, of Reconstruction Finance Corporation. See Section 611a of Title 15,'Commerce and Trade.

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12 U.S.C., § 1020c

Bonds, aggregate amount; guaranty by United States; purchase and sale of by United States; exchange of for consolidated farm loan bonds.-With the approval of the Secretary of the Treasury, the corporation is authorized to issue and have outstanding at any one time bonds in an aggregate amount not exceeding $2,000,000,000. Such bonds shall be in such forms and denominations, shall have such maturities, shall bear such rates of interest, shall be subject to such terms and conditions, and shall be issued in such manner and sold at such prices, as may be prescribed by the corporation, with the approval of the Secretary of the Treasury. Such bonds shall be fully and unconditionally guaranteed both as to interest and principal by the United States and such guaranty shall be expressed on the face thereof, and such bonds shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. In the event that the corporation shall be unable to pay upon demand, when due, the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to the holder the amount thereof which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeeed to all the rights of the holders of such bonds. The Secretary of the Treasury, in his discretion, is authorized to purchase any bonds of the corporation issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities hereafter issued under sections 745, 747, 752–754b, 757, 757b, 757c, 758, 760, 764–766, 769, 771, 773, 774 (2), and 801 of Title 31 (U. S. Codé], and the purposes for which securities may

be issued under such sections are extended to include any purchases of the corporation's bonds hereunder. The Secretary of the Treasury

at any time, sell any of the bonds of the corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of the bonds of the corporation shall be treated as public debt transactions of the United States. No such bonds shall be issued in excess of the assets of the corporation, including the assets to be obtained from the proceeds of such bonds, but a failure to comply with this provision shall not invalidate the bonds or the guaranty of the same. The corporation shall have power to purchase such bonds in the open market at any time and at any price. On such terms and conditions as may be agreed upon, the corporation may exchange such bonds, upon application of any Federal land bank for consolidated farm loan bonds of equal face value issued under subchapter I of this chapter, and may exchange such consolidated farm loan bonds held by it for bonds of the corporation of equal face value. (Jan. 31, 1934, c. 7, 84 (a), 48 Stat. 345; April 27, 1934, c. 168, § 14, 48 Stat. 647.)

The Government Corporations Appropriation Act, 1949, provides that “the aggregate amount of bonds the Corporation may issue and have outstanding at any one time shall not exceed $500,000,000.”

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