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standing at the time of such assessment. Every Federal intermediate credit bank shall, by appropriate action of its board of directors duly recorded in its minutes, obligate itself to become liable on debentures and other such obligations as provided in this section: Provided, That in view of the liability of all Federal intermediate credit banks for the debentures and other such obligations of each bank under this chapter, the banks shall, in accordance with rules, regulations, and orders of the Farm Credit Administration, enter into adequate agreements and arrangements among themselves by which funds shall be transferred and/or made available from time to time for the payment of all such debentures and other such obligations and the interest thereon when due in accordance with the terms thereof. (July 17, 1916, c. 245, $ 207; Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1458; May 19, 1932, c. 191, § 4, 41 Stat. 159; Mar. 27, 1933, Ex. Or. 6084.)

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12 U.S.C., & 1091

F.F.L. Act, $ 208 (a) Reports of condition of banks and other lending institutions rediscounting with credit banks; examinations and audits of credit banks.-In order to enable each Federal intermediate credit bank to carry out the purpose of this subchapter, the Comptroller of the Currency is hereby authorized and directed, upon the request of any Federal intermediate credit bank, (1) to furnish for the confidential use of such bank such reports, records, and other information, as he may have available, relating to the financial condition of national banks through or for which the Federal intermediate credit bank has made or contemplates making discounts, and (2) to make through his examiners, for the confidential use of the Federal intermediate credit bank, examinations of organizations through or for which the Federal intermediate credit bank has made or contemplates making discounts or loans: Provided, That no such examination shall be made without the consent of such organization except where such examination is required by law:Provided, That any organization, except State banks, trust companies, and savings associations, shall, as a condition precedent to securing rediscount privileges with the Federal intermediate credit bank of its district, file with such bank its written consent to its examination as may be directed by the Farm Credit Administration by farm credit examiners; and State banks, trust companies, and savings associations may be in like manner required to file their written consent that reports of their.examination by constituted authorities may be furnished by such authorities upon request to the Federal intermediate credit bank of their district. Each Federal intermediate credit bank shall be examined and audited at least once each year by the Farm Credit Administration, and the results of such examination and audit shall be made public by the administration. (July 17, 1916, c. 245, $ 208 (a); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Már. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, $20, 50 Stat. 710.)

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12 U.S.C., & 1092

F.F. L. Act, 8 208 (b) Submission and publication of reports of condition by banks. Every Federal intermediate credit bank shall make to the Farm Credit Administration not less than three reports during each year as requested by the administration and according to the form which may be prescribed by the administration, verified by the oath or affirmation of the president, or secretary, or treasurer, of each Federal intermediate credit bank and attested by the signature of at least three of the directors. Each report shall exhibit, in detail and under appropriate heads, the resources and liabilities of the Federal intermediate credit bank at the close of business on any past day specified by the Farm Credit Administration within five days from the receipt of a request or requisition therefor from the administration, and in the same form in which it is made to the Farm Credit Administration shall be published in a newspaper published in the place where such Federal intermediate credit bank is established, or if there is no paper in the place, then in the one published nearest thereto, in the same county, at the expense of the bank; and such proof of publication shall be furnished as may be required by the Farm Credit Administration. The Farm Credit Administration shall also have power to call for special reports from any particular Federal intermediate credit bank whenever in its judgment the same are necessary for a full and complete knowledge of its condition. (July 17, 1916, c. 245, 8 208 (b); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084.)

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12 U.S.C., $ 1093

F.F.L. Act, 8 208 (c) Investigations and reports by land bank appraisers and examiners for credit banks.- Land bank appraisers are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to investigate and make a written report upon the products covered by warehouse receipts or shipping documents, and the livestock covered by mortgages, which are security for notes or other such obligations representing any loan to any organization, under this subchapter. Farm credit examiners are authorized, upon the request of any Federal intermediate credit bank and with the approval of the Farm Credit Administration, to examine and make a written report upon the condition of any organization, except national banks, to which the Federal intermediate credit bank contemplates making any such loan. (July 17, 1916, c. 245, $ 208 (c); Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1458; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, $ 20, 50 Ştat. 710.) 12 U.S.C., $ 1094

F.F. L. Act, 8 208 (d) Cost of examinations; assessments against organizations investigated.—The Farm Credit Administration shall assess the cost of all examinations made by the examiners of the administration under the provisions of this subchapter upon the bank, trust company, savings institution, or organization investigated, in accordance with the regulations to be prescribed by the administration. (July 17, 1916, c. 245, 8 208 (d); Mar. 4, 1923, c. 252, § 2, 42 Stat. 1458; Mar. 27, 1933, Ex.

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12 U.S.C., $ 1095

F.F. L. Act, $ 208 (e) Reports on condition of institutions receiving loans or deposits.--The executive departments, boards, commissions, and independent establishments of the Government, the Reconstruction Finance Corporation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Reserve banks are severally authorized under such conditions as they may prescribe, upon the request of the Farm Credit Administration to make available to the Farm Credit Administration or any district bank or district corporation operating under its supervision, in confidence, all reports, records or other information they may have relating to the condition of any institution to which the Administration, such district bank; or corporation has made or contemplates making loans or for which it has discounted or contemplates discounting paper, or which it is using or contemplates using as a custodian of securities or other credit instruments, or as a depositary. (July 17, 1916, c. 245, $ 208 (e); June 3, 1935, c. 164, § 8, 49 Stat. 316; Aug. 23, 1935, c. 614, $ 203 (a), 49 Stat. 704; Aug. 19, 1937, c. 704, § 31, 50 Stat. 716.)

8 203 (a) of the Act of Aug. 23, 1935, cited to the text, changed the name of the Federal Reserve Board to Board of Governors of the Federal Reserve System."

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RULES AND REGULATIONS

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12 U.S.C., $ 1101

F.F. L. Act, $ 209 Authority of Farm Credit Administration.--The Farm Credit Administration is authorized to make such rules and regulations, not inconsistent with law, as it deems necessary for the efficient execution of the provisions of this subchapter. (July 17, 1916, c. 245, $ 209; Mar. 4, 1923, c. 252, § 2, 42 Stat. 1459; Mar. 27, 1933, Ex. Or. 6084.)

TAX EXEMPTION

12 U.S.C., 81111

F.F.L. Act, $ 210 Capital and income; debentures instrumentalities of Government.-The privileges of tax exemption accorded under section 931 of this title shall apply also to each Federal intermediate credit bank, including its capital, reserve, or surplus, and the income derived therefrom, and the debentures issued under this subchapter shall be deemed and held to be instrumentalities of the Government and shall enjoy the same tax exemptions as are accorded farm loan bonds in said section. (July 17, 1916, c. 245, § 210; Mar. 4, 1923, c. 252, § 2, 42 Stat. 1459.)

United States obligations and evidences of ownership issued after_ March 27, 1942, as subject to Federal Taxation, See Sec. 742a of Title 31, Money and Finance.

12 U.S.C., 8 1129

F.F.L. Act, $ 212 Charging of unauthorized fees or commissions by banks.--No Federal intermediate credit bank shall charge or receive any fee, commission, bonus, gift, or other consideration not herein specifically authorized. (July 17, 1916, c. 245, $ 212; Mar. 4, 1923, c. 252, $ 2, 42 Stat. 1461.)

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SUBCHAPTER IV.-PRODUCTION CREDIT CORPORATIONS

AND PRODUCTION CREDIT ASSOCIATIONS*

PRODUCTION CREDIT CORPORATIONS

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12 U.S.C., 8 1131

Establishment; number; location. The Governor of the Farm Credit Administration, hereinafter in this subchapter and subchapter VI referred to as the “governor”, is authorized and directed to organize and charter twelve corporations to be known as “Production Credit Corporations." One such corporation shall be established in each farm credit district in the city in which there is located a Federal land bank. 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 respective Production Credit Corporations. Such directors shall have power, subject to the approval of the governor, to employ and fix the compensation of such officers and employees of such corporations as may be necessary to carry out the powers and duties conferred upon such corporations under this subchapter and subchapter VI of this chapter. June 16, 1933, c. 98, § 2, 48 Stat. 257; Aug. 19, 1937, c. 704, § 11, 50 Stat. 708.)

*See also subchapter VI.
Financial control of corporations, see Chap. 14, Title 31, Money and Finance.
Organization of Banks for Cooperatives, see 8 1134.

Person convicted of felony or adjudged liable in damages for fraud ineligible to be administrative or executive official of Production Credit Corporation, see § 640i of this title. 12 U.S. C., & 1131a

Charters and bylaws. The charters of the Production Credit Corporations shall be granted by the governor upon application of the directors of the Federal land bank of the proper district, and applications and charters shall be in such form as the governor shall prescribe. The directors shall have power, subject to the approval of the governor, to adopt such bylaws as may be necessary for the conduct of the business of the corporations. (June 16, 1933, c. 98, $ 3, 48 Stat. 257.)

Charters of Banks for Cooperatives, see § 1134a. 12 U.S.C., 8 1131b

Capital stock; amount; value of shares; amount and subscription for initial stock; payments for stock subscribed on behalf of United States. The capital stock of each Production Credit Corporation shall be in such amount as the governor determines is required for the purpose of meeting the credit needs of the district to be served by such corporation, and such amount may be increased or decreased from time to time by the governor in accordance with such credit needs. Such capital stock shall be divided into shares of $100 each. The initial capital stock of each such corporation shall be $7,500,000, which shall be subscribed for by the governor and held by him on behalf of the United States. Payments on subscriptions to stock by the governor shall be subject to call in whole or in part by the board of directors of the corporation with the approval of the

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governor. The governor shall make such payments out of the revolving fund created in section 1131i of this title. The stock ownership of the United States in such corporation shall be evidenced by such means as the governor shall determine. (June 16, 1933, c. 98, § 4, 48 Stat. 257.)

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12 U.S.C., & 1131c

Purchase of stock in production credit associations; class of stock to be purchased and held; amount of stock; retirement of stock held by corporations; application of earnings on stock held by corporations-(a) Stock in associations organized under this subchapter.- Each Production Credit Corporation shall have power to invest its funds in stock of production credit associations as provided in this section. Such corporation is authorized to subscribe and pay for class A stock in each Production Credit Association located in the district served by such corporation in amounts sufficient to maintain the amount of class A stock held by it and other holders of class A stock equal, as nearly as may be, to 20 per centum of the volume of loans made or to be made by such association, as estimated by the corporation, but at no time shall the amount of class A stock outstanding be less than $5,000 except with the consent of the association. Notwithstanding the provisions of the preceding sentence, (1) the governor, under rules and regulations prescribed by him, may permit a Production Credit Corporation to maintain the class A holdings of stock by the corporation and other investors at such amount; in excess of 20 per centum of such loans, as may be necessary, and (2) the corporation may at any time require the association to retire and cancel stock held by the corporation in such association, if, in the judgment of the corporation, the association has resources available therefor. (June 16, 1933, c. 98, 8 6 (a), 48 Stat. 259.)

(b) Stock in associations not organized under this subchapter; restrictions and limitations.-Under such rules and regulations as may be prescribed by the governor and subject to such restrictions and limitations as he may prescribe, each Production Credit Corporation is authorized to subscribe and pay for stock in production credit associations not organized under this subchapter if such associations are controlled by cooperative associations as defined in section 1141j (a) of this title. Only stock which is preferred as to assets on liquidation and is entitled to participate in dividend distributions without discrimination may be subscribed for. The amount of the stock subscribed for by any Production Credit Corporation in any such association shall not at any one time exceed 75 per centum of the total paid-in capital of such association. (June 16, 1933, c. 98, § 6 (b), 48 Stat. 259.)

(c) Earnings on stock in associations; application of; establishment and investment of surplus.—The amount of the excess of earnings on stock held by the corporation above amounts necessary to pay operating expenses and restore losses and impairment of capital, if any, of the corporation shall be devoted to the creation and maintenance of a surplus equal to at least 25 per centum of the paid-in capital of the corporation. The amount of the surplus shall be invested as

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