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moneys pursuant to any insurance agreement, shall be for the sole purpose of making a report to the Congress and to the Administration of expenditures and of loan and insurance agreements in violation of law, together with such recommendations thereon as the Comptroller General deems advisable. (June 15, 1929, c. 24, § 14, 46 Stat. 18; Mar. 27, 1933, Ex. Or. 6084.)

Insurance agreements, to which reference is made in this section, were authorized to be made by 11 of the Agricultural Marketing Act of June 15, 1929, which section was repealed by $ 50 (a) of the Farm Credit Act of June 16, 1933. The provision, as originally contained in the Agricultural Marketing Act, authorized the Federal Farm Board, upon application of cooperative associations, to enter into agreements, subject to specified conditions for the insurance of the associations against loss through price decline in the agricultural commodity handled by the associations and produced by the members thereof.

"Governor of the Farm Credit Administration" and "administration" mentioned in the text' were substituted for "chairman of the board" and "board,” respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

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12 U.S.C., 1141j

Miscellaneous provisions-(a) “Cooperative association" defined.-As used in this subchapter, the term "cooperative association” means any association in which farmers act together in processing, preparing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services: Provided, however, That such associations are operated for the mutual benefit of the members thereof as such producers or purchasers and conform to one or both of the following requirements:

First. That no member of the association is allowed more than one vote because of the amount of stock or membership capital he may own therein; and

Second. That the association does not pay dividends on stock or membership capital in excess of 8 per centum per anjum.

And in any case to the following:

Third. That the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers in an amount greater in value than the total amount of such business transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association. (June 15, 1929, c. 24, § 15 (a), 46 Stat. 18; June 16, 1933, c. 98, $ 55, 48 Stat. 266; June 3, 1935, c. 164, $ 12, 49 Stat. 317.)

(b) Speculation prohibited. It shall be unlawful for the governor, or any officer or employee of the Farm Credit Administration [engaged in the administration of this subchapter] to speculate, directly or indirectly, in any agricultural commodity or product thereof, or in contracts relating thereto, or in the stock or membership interests of any association or corporation engaged in handling, processing, or disposing of any such commodity or product. Any person violating this subdivision shall upon conviction thereof be fined not more than $10,000, or imprisoned not more than ten years, or both. (June 15, 1929, c. 24, § 15 (b), 46 Stat. 18; Mar. 27, 1933, Ex. Or. 6084.) The language in brackets does not appear in the United States Code.

The governorand “Farm Credit Administration" mentioned in the text were substi, tuted for “any member" and "board,” respectively, pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

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(c) Confidential information: disclosure prohibited. It shall be unlawful (1) for any cooperative association, stabilization corporation, clearing house association, or commodity committee, or (2) for any director, officer, employee, or member or person acting on behalf of any such association, corporation, or committee, to which or to whom information has been imparted in confidence by the administration, to disclose such information in violation of any regulation of the administration. Any such association, corporation, or committee, or director, officer, employee, or member thereof, violating this subdivision, shall be fined not more than $5,000, or imprisoned not more than five years, or both. (June 15, 1929, c. 24, § 15 (c), 46 Stat. 18; Mar. 27, 1933, Ex. Or. 6084.)

"Administration” mentioned in the test was substituted for “board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

(a) Governmental publications; predications as to cotton prices prohibited.

The inclusion in any governmental report, bulletin, or other such publication hereafter issued or published of any prediction with respect to cotton prices is prohibited. Any officer or employee of the United States who authorizes or is responsible for the inclusion in any such report, bulletin, or other publication of any such prediction, or who knowingly causes the issuance or publication of any such report, bulletin, or other publication containing any such prediction, shall, upon conviction thereof, be fined not less than $500 or more than $5,000, or imprisoned for not more than five years, or both: Provided, That this subdivision shall not apply to the Governor of the Farm Credit Administration when engaged in the performance of his duties herein provided. (June 15, 1929, c. 24, § 15 (d), 46 Stat. 18; Mar. 27, 1933, Ex. Or. 6084.)

Governor of the Farm Credit Administration" mentioned in the text was substituted for members of the board," pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter.

(e) Separability clause. If any provision of this subchapter is declared uncon-titutional, or the applicability thereof to any person, circumstance, commodity, or class of transactions with respect to any commodity is held invalid, the validity of the remainder of the subchapter and the applicability of such provision to other persons, circumstances, commodities, and classes of transactions shall not be affected thereby. (June 15, 1929, c. 24, $ 15 (e), 46 Stat. 18.)

(f) Citation of subchapter.-This subchapter may be cited as the “Agricultural Marketing Act.” (June 15, 1929, c. 24, § 15 (f), 46 Stat. 18.)

(g) "Agricultural commodity"; definition. As used in this subchapter, the term “agricultural commodity” includes, in addition to other agricultural commodities, crude gum (oleoresin) from a living tree, and the following products as processed by the original producer of the crude gum (oleoresin) from which derived: Gum spirits of turpentine and gum rosin, as defined in section 92 of Title 7 [U. S. Code). (June 15, 1929, c. 24. $ 15 (g), 46 Stat. 18: Mar. 4, 1931, c. 520.$ 3, 46 Stat. 1550.)

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SUBCHAPTER VIII.-REGIONAL AGRICULTURAL CREDIT

CORPORATIONS

HISTORICAL NOTE

1 of nitthis not 46

The Executive Order of March 27, 1933, set forth at th. beginning of this chapter under “Introductory," transferred to the jurisdiction and control of the Farm Credit Administration the functions defined in section 5 (e) of the Order, as follows: "The functions of the Reconstruction Finance Corporation and its Board of Directors relating to the appointment of officers and agents to manage regional agricultural credit corporations formed under section 201 (e) of the Emergency Relief and Construction Act of 1932; relating to the establishment of rules and regulations for such management; and relating to the approval of loans and advances made by such corporations and of the terms and conditions thereof."

The section of the Emergency Relief and Construction Act of July 21, 1932, to which reference is made in the above quoted paragraph of the Executive Order, is contained in section 605 (e) of Title 15, U. S. Code, and is also incorporated in this subch

The Regional Agricultural Credit Corporation of Washington, D, C., the last remaining regional agricultural credit corporation, was abolished and its functions transferred to the Secretary of Agriculture by Public Låw No. 38, 81st Congress, approved April 6, 1949.

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12 U. S. C., § 1148

Regional agricultural credit corporations; creation; capital; management; loans; rediscounts; supervision.—The Farm Credit Administration is authorized to create in any of the twelve farm credit districts where it may deem the same to be desirable a regional, agricultural credit corporation with a paid-up capital of not less than $3,000,000, to be subscribed for by the Farm Credit Administration and paid for out of the unexpended balance of the amounts allocated and made available to the Secretary of Agriculture under section 602 of Title 15. Such corporations shall be managed by officers and agents to be appointed by the Farm Credit Administration under such rules and regulations as it may prescribe. Such corporations are hereby authorized and empowered to make loans or advances to farmers and stockmen, the proceeds of which are to be used for an agricultural purpose (including crop production), or for the raising, breeding, fattening, or marketing of livestock, to charge such rates of interest or discount thereon as in their judgment are fair and equitable, subject to the approval of the Farm Credit Administration, and to rediscount with the Farm Credit Administration and the various Federal reserve banks and Federal intermediate credit banks any paper that they acquire which is eligible for such purpose. All expenses incurred in connection with the operation of such corporations shall be supervised and paid by the Farm Credit Administration under such rules and regulations as its board of directors may prescribe. (July 21, 1932, c. 520, $ 201, (e), 47 Stat. 713; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, 85 (a),50 Stat. 704; June 30, 1947, c. 166, title II, sec. 206, 61 Stat. 202.)

"Farm Credit Administration" mentioned in the text was substituted for "Reconstruction Finance Corporation" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this circular.

Pursuant to the Act of Feb. 24, 1938, 52 Stat. 79, the Act of March 8, 1938, 52 Stat. 107, and Executive Order No. 7848, dated March 22, 1938, the capital of the regional agricultural credit corporations is held by the Secretary of the Treasury, for and on behalf of the United States.

Act June 30, 1948, 62 Stat. 1192, authorized Regional Agricultural Credit Corporation of Washington, D. C., to make loans to fur farmers.

For restrictions on regional agricultural credit corporation loans, see Department of Agriculture appropriation acts, fiscal years 1944 et seq.

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

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12 U.S.C., 81148a

Reduction of capital stock of regional agricultural credit corporation; revolving fund from stock proceeds.—The Farm Credit Administration is authorized, with the approval of the Governor of the Farm Credit Administration, to reduce the capital of any Regional Agricultural Credit Corporation by such action as may be suitable for the purpose. The funds made available by any such reduction shall constitute a revolving fund, all or any part of which shall be available for use from time to time by the Farm Credit Administration for the purpose of increasing, with the approval of the Governor of the Farm Credit Administration, the capital of any Regional Agricultural Credit Corporation. (June 16, 1933, c. 98, $ 84, 48 Stat. 273; June 30, 1947, c. 166, title II, § 206, 61 Stat. 202.) 12 U.S.C. 8 1148b

Additional powers of regional agricultural credit corpo tions. Each regional agricultural credit corporation, created under the authority of section 1148 of this title [201 (e) of the Emergency Relief and Construction Act of 1932] in addition to the powers granted prior to Aug. 19, 1937, shall have and, upon order or approval of the Farm Credit Administration, shall exercise the following rights; powers, and authority:

(a) Places of transacting business. To conduct, transact, and operate its business in any State in the continental United States, in the District of Columbia, and in Puerto Rico.

(b) Borrow money.-To borrow money (other than by way of discount) from any other regional agricultural credit corporation, or any Federal intermediate credit bank, and to give security therefor.

(c) Loans.—To lend any of its available funds to any other regional agricultural credit corporation at such rates of interest and upon such terms and conditions as may be approved by the Farm Credit Administration.

(d) Sale to or purchase from other like corporations.-To sell to or purchase from any other regional agricultural credit corporation or any corporation formed by consolidation or merger as provided in section 1148c of this title, any part of or all the assets of any such corporation, upon such terms and conditions as may be approved by the Farm Credit Administration, including the assumption of the liabilities of any such corporation, in whole or in part. (Aug. 19, 1937, c. 704, $ 32,50 Stat. 716; June 30, 1947, c. 166, title II, $ 206 (s), 61 Stat. 209.)

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12 U.S.C., 81148c

Consolidation or merger-(a) Power of Farm Credit Administration. The Farm Credit Administration shall have the

power

and authority to order and effect the consolidation or merger of two or more regional agricultural credit corporations, on such terms and conditions as it shall direct.

(b) Status of corporations formed by consolidation.—The Farm Credit Administration is authorized to grant charters to, prescribe bylaws for, and fix the capital of, regional agricultural credit cor

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porations which may be formed by the consolidation of two or more regional agricultural credit corporations, and to approve or prescribe such amendments to the charter and bylaws of any regional agricultural credit corporation as it may from time to time deem necessary. Corporations formed by the consolidation of two or more regional agricultural credit corporations, as herein provided, shall have all the rights, powers, authority, and exemptions and shall be subject to the same supervision and control as provided by law in respect to regional agricultural credit corporations organized under section 1148 of this title. (Aug. 19, 1937, c. 704, § 33, 50 Stat. 717; June 30, 1947, c. 166, title II, 8 206 (s), 61 Stat. 209.)

The United States Code omits the last sentence of this section.

Capital of regional agricultural corporations formed by consolidation held by Secretary of the Treasury, see note to § 1148.

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12 U.S.C., & 1148d

Rights and powers unaffected by sections 1148b and 1148c.Nothing contained in sections 1148b and 1148c of this title shall be construed as limiting the rights, powers, and authority granted prior to August 19, 1937, to the regional agricultural credit corporations, the Farm Credit Administration, or the Governor thereof by any Acts. of Congress or Executive orders. (Aug. 19, 1937, c. 704, § 34, 50 Stat. 717.)

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Title 7.–Agriculture
CHAPTER 18.-COOPERATIVE MARKETING ACT

7 U.S.C., 8451

Agricultural products defined.—When used in this chapter the term "agricultural products" means agricultural, horticultural, viticultural, and dairy products, livestock and the products thereof, the products of poultry and bee raising, the edible products of forestry, and any and all products raised or produced on farms and processed or manufactured products thereof, transported or intended to be transported in interstate and/or foreign commerce. (July 2, 1926, c. 725, $ 1,44 Stat. 802.)

7 U.S.C., $ 452

Establishment of division of cooperative marketing.--The Governor of the Farm Credit Administration is hereby authorized and directed to establish a division of cooperative marketing with suitable personnel in the Farm Credit Administration. Such division shall be under the direction and supervision of the Governor of the Farm Credit Administration. (July 2, 1926, c. 725, $ 2, 44 Stat. 802; Oct. 1, 1929, Ex. Or. 5200; Mar. 27, 1933, Ex. Or. 6084.)

"Governor of Farm Credit Administration" and "Farm Credit Administration” mentioned in the text were substituted for "Secretary of Agriculture” and “Department of Agriculture,” respectively, pursuant to the Executive Orders cited thereto, which are set out in full at the beginning of this circular.

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