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12 U. S. C., § 1022 F. F. L. Act, § 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 § 640i 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, § 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, § 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, § 201 (f)
Application for charter.-The charters to such Federal inter-
mediate credit banks shall be granted upon application of the directors
of the Federal land banks, which application shall be in such form

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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.

12 U. S. C., § 1031

DISCOUNTS AND LOANS

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

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*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 a Production Credit Corporation organized under such sections *

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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), 49 Stat. 315.)

(b),

"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, § 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, 8202 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1455; June 26, 1930, c. 616, § 2, 46 Stat. 816.)

12 U. S. C., § 1040

ISSUE OF DEBENTURES

"Debentures" defined.-The terms "debenture" and "debentures", when used in any Act of Congress, whenever enacted, except the Federal Farm Loan Act [July 17, 1916, c. 245, 39 Stat. 360]*, relating to the purchase, sale, or use as security, of debentures issued by or for the benefit and account of any Federal intermediate credit bank or banks, shall be deemed to mean debentures issued by any such bank individually and consolidated debentures issued by such banks acting together. (Aug. 19, 1937, c. 704, § 39, 50 Stat. 718.)

Definition of debentures as used in Federal Farm Loan Act, see section 1044 of this title.

12 U.S. C., § 1041

F. F. L. Act, § 203 (a)

Collateral trust debentures or similar obligations; security for; maturity; limitation respecting amount.-Federal intermediate credit banks shall have power, subject to the approval of the Farm Credit Administration, to borrow money and to issue and to sell collateral trust debentures or other similar obligations with a maturity at the time of issue of not more than five years, which shall be secured by at least a like face amount of cash, United States Government bonds, Federal Farm Mortgage Corporation bonds, or notes or other such obligations discounted or purchased or representing loans made under sections 1031-1033 of this title: Provided, That the aggregate amount of the outstanding debentures and similar obligations issued individually by any Federal intermediate credit bank, together with the amount of outstanding consolidated debentures issued for its benefit and account, shall not exceed ten times the surplus and paid-in capital of such bank. (July 17, 1916, c. 245, § 203 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084; June 3, 1935, c. 164, § 6 (a), 49 Stat. 315; Aug. 19, 1937, c. 704, § 27, 50 Stat. 715.)

"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.

12 U. S. C., § 1042

F. F. L. Act, § 203 (b)

Applicability of provisions of subchapter I; regulations governing collateral and handling thereof; interest rates.-The provisions of subchapter I of this chapter relating to the preparation and issue of farm loan bonds shall, so far as applicable, govern the preparation and issue of debentures or other such obligations issued under section 1041 of this title; but the Farm Credit Administration shall prescribe rules and regulations governing the receipt, custody, substitution, and release of the cash, obligations of the United States Government, and notes or other obligations securing such debentures, the right of substitution being hereby granted, and in the event such notes or other obligations are secured by warehouse receipts, shipping documents, or other similar credit instruments, may permit the substitution of trust receipts therefor in such manner and subject to such

*See Subchapter I of this chapter.

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conditions as may be approved by the said Administration. Rates of interest upon debentures and other such obligations issued under said section shall, subject to the approval of the Farm Credit Administration, be fixed by the Federal intermediate credit bank making the issue, not exceeding 6 per centum per annum. (July 17, 1916, c. 245, § 203 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 28, 50 Stat. 715.)

12 U.S. C., § 1043

F. F. L. Act, § 203 (c)

Assumption of liability by Government prohibited; recital necessary to be included.-The United States Government shall assume no liability, direct or indirect, for any debentures or other obligations issued under section 1041 of this title, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form and substance by the Farm Credit Administration and approved by the Secretary of the Treasury, clearly indicating that no such liability is assumed. (July 17, 1916, c. 245, § 203 (c); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1456; 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.

12 U. S. C., § 1044

F. F. L. Act, § 203 (d)

Consolidated debentures; authority of intermediate credit banks to issue and sell.-Whenever it shall appear desirable to issue consolidated debentures of the twelve Federal intermediate credit banks and to sell them through a common selling agency, and the Federal intermediate credit banks shall, by resolutions, consent to the same, the banks may issue and sell said debentures subject to the provisions of sections 1041-1045 of this title, and the provisions of sections 871-886 of this title, insofar as applicable. As used in this subchapter, the term "debentures" includes such consolidated debentures. (July 17, 1916, c. 245, § 203 (d); June 3, 1935, c. 164, § 6 (b), 49 Stat. 315.)

The United States Code contains the words "this act" instead of "this subchapter."
Definition of debentures as used in other acts of Congress, see section 1040 of this title.

12 U.S. C., § 1045

F. F. L. Act, § 203 (e)

Investment of fiduciary and trust funds in debentures of intermediate credit banks; security for public deposits. All debentures issued by Federal intermediate credit banks 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 of any officer or officers thereof. (July 17, 1916, c. 245, § 203 (e); June 3, 1935, c. 164, § 6 (b), 49 Stat. 316.)

DISCOUNT RATES

12 U. S. C., § 1051

F. F. L. Act, § 204 (a) Establishment of and approval of; limitations on.-Any Federal intermediate credit bank may, with the approval of the Intermediate

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