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SUBCHAPTER VI.-PROVISIONS COMMON TO PRODUCTION CREDIT CORPORATIONS, PRODUCTION CREDIT ASSOCIATIONS, REGIONAL AND CENTRAL BANKS FOR COOPERATIVES
12 U.S.C., & 1138
General corporate powers. The Central Bank for Cooperatives, and the Production Credit Corporations, the Production Credit Associations, and the Banks for Cooperatives, organized under subchapters IV and V of this chapter shall have succession, until dissolved in accordance with this subchapter or any other Act of Congress; shall have power to sue and be sued in any court, to adopt and use a corporate seal, to make contracts, to acquire, hold, and dispose of real and personal property necessary and incident to the conduct of their business, to prescribe fees and charges (which in any case shall be subject to the rules and regulations prescribed by the governor) for loans and other services; and shall have such other powers necessary and incident to carrying out their powers and duties under this subchapter or any other Act of Congress as may be provided by the governor in their charters or in any amendments thereto. Each such bank, association, or corporation shall, for the purposes of jurisdiction, be deemed a citizen of the State or District within which its principal office is located. No district court of the United States shall have jurisdiction of any action or suit by or against any Production Credit Corporation or Production Credit Association upon the ground that it was incorporated under this chapter or that the United States owns a majority of the stock in it, nor shall any district court of the United States within the farm credit district served by such association or corporation have jurisdiction by removal or otherwise of any suit by or against any such association or corporation except in cases by or against the United States or by or against any officer of the United States and except in cases by or against any receiver of any such corporation or association appointed in accordance with section 11380 of this title. (June 16, 1933, c. 98, $ 60, 48 Stat. 266; Aug. 19, 1937, c. 704, $ 5 (a), 50 Stat. 704.)
Financial control of corporations, see Chap. 14, Title 31, Money and Finance.
12 U.S.C., $ 1138a
Examinations; assessments against corporations for cost of examinations. At least once each year and at such other times as the governor deems necessary, the Central Bank for Cooperatives, and each Production Credit Corporation, Production Credit Association, and Bank for Cooperatives, organized under this chapter, shall be examined by examiners designated by the governor. The governor shall assess the cost of such examinations against the bank, association, or corporation examined, which shall pay such costs to the governor. The amount so assessed and unpaid shall be a prior lien on all assets of the bank, association, or corporation examined except on assets pledged to secure loans. (June 16, 1933, c. 98, § 61, 48 Stat. 267).
Auditing procedures and costs, see sections 850, 857, 858, and 866 of Title 31, Money and
12 U.S.C., § 1138b
Fiscal agents of United States.-The Central Bank for Cooperatives, the Production Credit Corporations, Production Credit Associations, the Federal Farm Mortgage Corporation, and Banks for Cooperatives, organized under this chapter, when designated for that purpose by the Secretary of the Treasury, shall act as fiscal agents of the United States Government and when acting as such shall perform such duties as shall be prescribed by the Secretary of the Treasury. (June 16, 1933, c. 98, $ 62, 48 Stat. 267; Jan. 31, 1934, c. 7, § 11, 48 Stat. 347.)
12 U.S.C, 81138c
Tax exemption; realty and tangible personalty as subject to taxation; termination of tax exemption after retirement of Government-owned stock.-The Central Bank for Cooperatives, and the Production Credit Corporations, Production Credit Associations, and Banks for Cooperatives, organized under this chapter, and their obligations, shall be deemed to be instrumentalities of the United States, and as such, any and all notes, debentures, bonds, and other such obligations issued by such banks, associations, or corporations shall be exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or by any State, Territorial, or local taxing authority. Such banks, associations, and corporations, their property, their franchises, capital, reserves, surplus, and other funds, and their income, shall be exempt from all taxation now or hereafter imposed by the United States or by any State, Territorial, or local taxing authority; except that any real property and any tangible personal property of such banks, associations, and corporations shall be subject to Federal, State, Territorial, and local taxation to the same extent as other similar property is taxed. The exemption provided herein shall not apply with respect to any Production Credit Association or its property or income after the stock held in it by the Production Credit Corporation has been retired, or with respect to the Central Bank for Cooperatives, or any Production Credit Corporation or Bank for Cooperatives, or its property or income after the stock held in it by the United States has been retired. (June 16, 1933, c. 98, $ 63, 48 Stat. 267.)
United States obligations and evidences of ownership issued after March 27, 1942, as
subject to Federal taxation,
See section 742a of Title 31, Money and Finance.
12 U.S. C., § 1138e
Receivership; voluntary liquidation.-Upon default of any obligation of any Production Credit Corporation, Production Credit Association, or regional Bank for Cooperatives, such bank, association, or corporation may be declared insolvent and placed in the hands of a receiver by the governor and proceedings shall thereupon be had in accordance with the provisions of law relating to the insolvency of national farm loan associations. Any such bank, association, or corporation may, with the consent of the governor, liquidate voluntarily, but only in accordance with such rules and regulations as the governor may prescribe. (June 16, 1933, c. 98, $ 65, 48 Stat. 269.)
Insolvency of national farm loan associations, see sections 961 et seq. of this title.
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ts of orm UIT.
12 U.S.C., § 1138f
Limitation on compensation payable to director, officer, or employee.
No director, officer, or employee of the Central Bank for Cooperatives, or of any Production Credit Corporation, Production Credit Association, or Bank for Coperatives shall
be paid compensation at a rate in excess of $10,000 per annum. No officer or employee of the Farm Credit Administration engaged in carrying out the provisions of this subchapter and subchapters IV and V of this chapter shall be paid compensation at a rate in excess of $10,000 per annum. (June 16, 1933, c. 98, $ 66, 48 Stat. 269.)
SUBCHAPTER VII.-AGRICULTURAL MARKETING
This subchapter contains the Agricultural Marketing Act (approved June 15, 1929), as amended.
In view of the amendments to the Agricultural Marketing Act made by the Farm Credit Act of 1933 (approved June 16, 1933) and by the Farm Credit Act of 1935 (approved June 3, 1935), and of the transfer of its administration to the Governor of the Farm Credit Administration by Executive Order No. 6084, set forth at the beginning of this chapter under "Introductory,” the provisions of the Act as amended have been transferred to this chapter from Title 7.
From the provisions of subchapter V of this chapter, it will be noted that many of the functions defined in this subchapter may now be exercised through regional banks for cooperatives and a central bank for cooperatives. Subchapter V provides for the establishment of banks for cooperatives with capital stock purchased from the revolving fund created under section 1141d of this subchapter; and the loaning powers of the banks for cooperatives, under subchapter V, are similar to those originally created under this subchapter and not rescinded by amendments thereto.
The Agricultural Marketing Act was entitled “An Act to establish a Federal Farm Board to promote the effective merchandising of agricultural commodities in interstate and foreign commerce, and to place agriculture on a basis of economic equality with other industries."
12 U.S.C., 81141
Declaration of policy; effective merchandising of agricultural commodities; speculation; cooperative marketing; surpluses; administration of subchapter.-(a) It is declared to be the policy of Congress to promote the effective merchandising of agricultural commodities in interstate and foreign commerce, so that the industry of agriculture will be placed on a basis of economic equality with other industries, and to that end to protect, control, and stabilize the currents of interstate and foreign commerce in the marketing of agricultural commodities and their food products
(1) by minimizing speculation.
(3) by encouraging the organization of producers into effective associations or corporations under their own control for greater unity of effort in marketing and by promoting the establishment and financing of a farm marketing system of producer-owned and producercontrolled cooperative associations and other agencies.
(4) by aiding in preventing and controlling surpluses in any agricultural commodity, through orderly production and distribution, so as to maintain advantageous domestic markets and prevent such surpluses from causing undue and excessive fluctuations or depressions in prices for the commodity.
ib) There shall be considered as a surplus for the purposes of this subchapter any seasonal or year's total surplus, produced in the United States and either local or national in extent, that is in excess of the requirements for the orderly distribution of the agricultural commodity or is in excess of the domestic requirements for such commodity.
(c) The Farm Credit Administration shall execute the powers vested in it by this subchapter only in such manner as will, in the judgment of the administration, aid to the fullest practicable extent in carrying out the policy above declared. (June 15, 1929, c. 24, § 1, 46 Stat. 11; Mar. 27, 1933, Ex. Or. 6084.)
"Farm Credit Administration” and “administration” mentioned in the text were substituted for "Federal Farm Board", and "board,” respectively, pursuant to the ExecutiveOrder cited thereto, which is set out in full at the beginning of this chapter. 12 U.S. C., § 1141a
Governor of the Farm Credit Administration. The Governor of the Farm Credit Administration shall be appointed by the President, by and with the advice and consent of the Senate. A successor to a Governor of the Farm Credit Administration shall have a term of office expiring six years from the date of the expiration of the term for which his predecessor was appointed, except that any person appointed to fill a vacancy in the office occurring prior to the expiration of the term for which his predecessor was appointed, shall be appointed for the remainder of such term. The Governor of the Farm Credit Administration shall be a citizen of the United States and shall not actively engage in any other business, vocation, or employment than that of serving as Governor; nor shall he during his term of office engage in the business (except such business as is necessary to the operation of his own farm or farms) of buying and selling, or otherwise be financially interested in any agricultural commodity or product thereof. He shall receive a salary of $12,000 a year, together with necessary traveling and subsistence expenses, or per diem allowance in lieu thereof, within the limitations prescribed by law, while away from his official station upon official business. (June 15, 1929, c. 24, $ 2, 46 Stat. 11; Ex. Ord. No. 6084, Mar. 27, 1933.)
References to the Federal Farm Board were changed to Governor of the Farm Credit Administration and provisions relating to the creation and number of members of the Federal Farm Boara, membership of Secretary of Agriculture, representation of the major agricultural commodities upon the Board, terms of office of its original members, designation of chairman and vice chairman, effect of vacancies, and quorum of the Board, were omitted on authority of Ex. Ord. No. 6084, cited to text, and set out in note preceding section 636 of this title, which changed the name of the Federal Farm Board to Farm Credit Administration, abolished the offices of its appointed members, except that of the chairman, and the functions of the Secretary of Agriculture as a member, changed the name of the chairman to Governor of the Farm Credit Administration, and' vested him with all the powers and duties of the Federal Farm Board. 12 U.S.C., § 1141b
General powers of Farm Credit Administration. The Farm Credit Administration
(1) shall maintain its principal office in the District of Columbia, and such other offices in the United States as in its judgment are necessary.
(2) shall have an official seal which shall be judicially noticed.
(3) shall make an annual report to Congress upon the administration of this subchapter and any other matter relating to the better effectuation of the policy declared in section 1141 of this title, including recommendations for legislation.
(4) may make such regulations as are necessary to execute the functions vested in it by this subchapter.
(5) may appoint and fix the salaries of a secretary and such experts, and, in accordance with sections 661–663, 664669, 670–672, 673 and 674 of Title 5, and subject to the provisions of the civil service laws, such other officers and employees, as are necessary to execute such functions.
(6) may make such expenditures (including expenditures for rent and personal services at the seat of government and elsewhere, for law books, periodicals, and books of reference, and for printing and binding) as are necessary to execute such functions. Expenditures by the administration shall be allowed and paid upon the presentation of itemized vouchers therefor approved by the governor of the administration.
(7) may sell at public or private sale to the highest responsible bidder, upon such terms and after such public advertisement as the Farm Credit Administration may deem in the public interest, any property, real or personal, or any interest therein, acquired by the United States on account of or as a result of any loans made from the revolving fund authorized by section 1141d of this title; may lease any such property, pending its sale, on such terms and for such period, not in excess of five years, as the Farm Credit Administration may deem in the public interest; and may incur and pay, from the said revolving fund, obligations and expenses for the operation, upkeep, maintenance, repair, disposition, insurance, and protection of any such property:Provided, That section 5 of Title 41 shall not be construed to apply to any purchase or service on account of such property. (June 15, 1929, c. 24, S4, 46 Stat. 13; Mar. 27, 1933, Ex, . Or. 6084; Aug. 19, 1937, c. 704, $ 37,50 Stat. 717.)
"Farm Credit Administration" and "administration" mentioned in the text were substituted for "Federal Farm Board" and "board,” respectively, and "governor” was substituted for "chairman" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter, 12 U. S. C., & 1141c
Special powers of administration.—The administration is authorized and directed
(1) to promote education in the principles and practices of cooperative marketing of agricultural commodities and food products thereof.
(2) to encourage the organization, improvement in methods, and development of effective cooperative associations.
(3) to keep advised from any available sources and make reports as to crop prices, experiences, prospects, supply, and demand, at home and abroad. (June 15, 1929, c. 24, 85, 46 Stat. 13; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, $ 50 (a), 48 Stat. 265.)
"Administration” mentioned in the text was substituted for "board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.
Act of June 16, 1933, c. 98, § 50 (a), 48 Stat. 265, repealed paragraph (4) relating to investigations of overproduction and paragraph (5) relating to miscellaneous investigations.