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FARM CREDIT ADMINISTRATION

Circular No. 20-A

LAWS

Pertaining to
Agricultural Short Term and Intermediate Credit, as
Compiled in Chapter 7, Title 12 of the

United States Code

As Amended to February 1, 1934

Farm Credit Administration
Federal Intermediate Credit Banks
Production Credit Corporations
Production Credit Associations
Banks for Cooperatives

Miscellaneous

ISSUED BY THE

FARM CREDIT ADMINISTRATION

FEBRUARY 1934

CREDI

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1934

UNITED STATES OF AMERICA

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This circular contains all general provisions, by acts of Congress and Executive Order, relating to the establishment and operation of the Farm Credit Administration.

This circular also contains all provisions of law relative to the organization and operation of the Federal intermediate credit banks, production credit corporations, production credit associations, and banks for cooperatives, together with certain miscellaneous provisions of law relative to short term and intermediate credit.

The provisions of the acts of Congress and of the Executive Order contained herein are set forth in accordance with the codification thereof in chapter 7 of Title 12 of the official Code of Laws of the United States of America in Force December 26, 1926, and supplements thereto. Through the courtesy of the editor in charge of the Code, it has been possible to include herein the provisions of an act of January 31, 1934, in the form which will be used in the supplement to Title 12 of the Code.

In the right margin of this circular, throughout Subchapter III, opposite each section which was incorporated in Title IÎ of the Federal Farm Loan Act, either originally or by amendment to that title, is printed the number of the Federal Farm Loan Act section in which the provisions are contained.

The sections and subchapters into which this circular is divided are numbered to correspond with the same material in the 7th chapter of Title 12 of the Code. At the end of each section is a parenthetical reference to the act of Congress from which the provisions were derived, and to any subsequent amendatory acts. Wherever a section has been affected by the Executive Order which is set forth at the beginning of this circular, reference to the Order is made in the parenthetical statement at the end of the section.

CONTENTS

Page

FEDERAL INTERMEDIATE CREDIT BANKS (SUBCHAPTER III, CHAPTER 7,

TITLE 12, U.S.C.)

Organization:

Number, names, and charters of banks..

Location; directors, officers, and employees.

Corporate powers; suits by or against-

Fiscal agents for United States.-

Insolvency; receivership--

Application for charter--

Discounts and Loans:

Lending powers; purchase and sale of debentures of intermediate

credit banks; loans to cooperative associations..

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..

Maturity and sale of loans, advances, or discounts-

Interest rates or discount charges; rediscount of paper of other inter-

mediate credit banks...

Issue of Debentures:

Collateral trust debentures or similar obligations; security for; matur-

ity; limitation respecting amount--

Applicability of provisions of subchapter 1; regulations governing

collateral and handling thereof; interest rates.-

Assumption of liability by Government prohibited; recital necessary

to be included...

Discount Rates:

Establishment and approval of; limitation on.

Limitation on interest rate charged original borrower on paper dis-

counted with bank..

Purchase by bank of debentures issued by it.

Capital Stock:

Amount, shares; subscriptions to by United States; assessments

against other banks to restore capital impairment of one bank;

subscriptions to capital and surplus by Governor of Farm Credit

Administration.

Application of Earnings:

Salaries and expenses of Federal Farm Loan Bureau; assessment

against banks for proportionate share.--

Net earnings; surplus fund; franchise tax; disposition by United

States of sums received from net earnings of banks and from sur-

plus remaining after liquidation of banks.

Liability on Debentures or Other Such Obligations:

Liability of one bank for debentures issued by other banks; agree-

ments by banks for transfer of funds for debenture payments---

Examinations and Reports:

Reports of condition of banks and other lending institutions redis-

counting with credit banks; examinations and audits of credit

banks..

Examinations and Reports—Continued.

Submission and publication of reports of condition by banks--

Investigations and reports by land bank appraisers and examiners for

credit banks

Cost of examinations; assessments against organizations investigated.

Rules and Regulations:

Authority of Farm Credit Administration.

Tax Exemption:

Capital and income; debentures instrumentalities of Government--

Penalty Provisions:

Offenses by officers, employees, or agents; embezzlement; misapplica-

tion of funds; unauthorized making, issuing, or assigning instru-

ments; false entries..

False statements to banks..

Overvaluation of property offered as security for loan..

Offenses by examiners..

Offenses by officers, employees, or agents of banks; receiving fees or

gifts.---

Forgery, counterfeiting, and like offenses relating to obligations of

banks.

False representations as to debentures or other obligations of banks.

Unlawful use of words “Federal intermediate credit bank”.

Charging of unauthorized fees or commissions by banks..

PRODUCTION CREDIT CORPORATIONS AND PRODUCTION CREDIT

ASSOCIATIONS (SUBCHAPTER IV, CHAPTER 7, TITLE 12, U.S.C.)

Production Credit Corporations:

Establishment; number; location..

Charters and by laws.-

Capital stock; amount; value of shares; amount and subscription for

initial stock; payments for stock subscribed on behalf of United

States.-

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 corpora-

tions.

Production Credit Associations:

Organization; articles of association; charters; by laws; powers of

governor respecting associations.--

Capital stock; value of shares; classes of stock; voting rights;

limitation of transfer of class B stock; exchange of class B stock

upon holder ceasing to be borrower; dividends; ownership of

stock as entitling credit corporation to approve or remove officers

of association --

Application of earnings; losses in excess of reserve account; restor-

ation of capital impairment; reserve account; guaranty fund;

dividends.--

Loans to farmers; terms and conditions..

Borrowing from and rediscounting paper with Federal intermediate

banks; limitation on power to borrow from or rediscount paper

with other institutions

Revolving Fund

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