Page images
PDF
EPUB
[ocr errors]

(2) For the purpose of fallowing, or for the planting, production, or harvesting of any crops on, any land other than that described in his application for such loan.

(b) It shall be unlawful for any person to make any material false representation for the purpose of obtaining, or assisting another to obtain, a loan under the provisions of this Act; or willfully to dispose of, or assist in disposing of, except for the account of the Governor, any crops or other property upon which there exists a lien securing a loan made under the provisions of this Act.

(c) It shall be unlawful for any person to charge or accept a fee for preparing or assisting in the preparation of any papers of an applicant for a loan under the provisions of this Act.

(d) Any person violating any provision of this section of this Act shall, upon conviction thereof, be punished by a fine of not more than $1,000, or by imprisonment for not more than six months, or both. (Jan. 29, 1937, sec. 6, 50 Stat. 7; 12 U. S. C., sec. 1020n.)

638-207. Fraudulently obtained loans; personal liability of Federal employees. That no employee of the United States on whose certificate or approval loans under said Act of January 29, 1937, as amended, or other acts of the same general character, are or have been made, shall be held personally liable for any loss or deficiency occasioned by the fraud or misrepresentation of applicants or borrowers, if the Governor of the Farm Credit Administration shall determine that such employee has exercised reasonable care in the circumstances, and has complied with the regulations of the Farm Credit Administration in executing such certificate or giving such approval. Notwithstanding any such determination by the Governor of the Farm Credit Administration, this provision shall not be construed to prevent any criminal process against any person who was a party to or had guilty knowledge of such fraud or misrepresentation. (June 30, 1939, Title II, 53 Stat. 979; 12 U. S. C., sec. 1020n-1.)

638,208. Appropriation; expenditures for printing and binding.—(a) There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $50,000,000 for the purpose of enabling the Governor to carry out the provisions of this Act.

(b) The moneys appropriated in pursuance of subsection (a) of this section, any amounts collected for services rendered under section 5 (b), and all collections of principal and interest of loans made under this Act may be used by the Governor for making loans under this Act, and for all necessary administrative expenses incurred in connection with the making and collection of such loans.

(c) Expenditures for printing and binding necessary in carrying out the provisions of this Act may be made without regard to the provisions of section 3709 of the Revised Statutes. (Jan. 29, 1937, sec. 7, 50 Stat. 7; 12 U. S. C., sec. 10200.)

FEDERAL INTERMEDIATE CREDIT BANKS

638–209. Federal Intermediate Credit Banks; organization; number, names, and charters of banks.--That the Federal Farm Loan Board [now Farm Credit Administration]* shall have power to grant

*See Ex. Or. 6084, p. 254, this volume.

charters for 12 institutions to be known and styled as “Federal Intermediate Credit Banks.” (July 17, 1916, sec. 201 (a); Mar. 4, 1923, sec. 2, 42 Stat. 1454; 12 U.S.C., sec. 1021.)

638-210. 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 the Farm Credit Act of 1937 shall be ex officio the directors of the several Federal intermediate credit banks herein provided for 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 title. (July 17, 1916, sec. 201 (b); Mar. 4, 1923, sec. 2, 42 Stat. 1454; June 16, 1933, sec. 76 (a), 48 Stat. 271; Aug. 19, 1937, sec. 10, 50 Stat. 707; 12 U. S. C., sec. 1022.)

638-211. 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, sec. 201 (c), Mar. 4, 1923, sec. 2, 42 Stat. 1454; Aug. 19, 1937, sec. 26, 50 Stat. 715; 12 U.S. C., sec. 1023.)

638-212. 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, sec. 201 (d), Mar. 4, 1923, sec. 2, 42 Stat. 1454; 12 U.S. C., sec. 1024.)

638-213. 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 Federal Farm Loan Board [now Farm Credit Administration]*, and proceedings shall thereupon be had in accordance with the provisions of section 29 of this Act regarding National Farm Loan Associations. (July 17, 1916, sec. 201 (e); Mar. 4, 1923, sec. 2, 42 Stat. 1454; 12 U. S. C., sec. 1025.)

638–214. Application for charter.—The charters to such Federal Intermediate Credit Banks shall be granted upon application of the directors of the Federal Land Banks which application shall be in such form as the Federal Farm Loan Board (now Farm Credit Administration]* shall prescribe. (July 17, 1916, sec. 201 (f); Mar. 4, 1923, sec. 2, 42 Stat. 1454; 12 U.S. C., sec. 1026.)

638–215. Discounts and loans; lending powers; purchase and sale of debentures of intermediate credit banks; loans to cooperative associations.—That 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 Federal Farm

*See Ex. Or. 6084, p. 254, this volume.

а

Loan Board (now Farm Credit Administration]* not inconsistent with the provisions of this Act,

(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 endorsement, 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 the Farm Credit Act of 1933, or any production credit association in which a Production Credit Corporation organized under such Act 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 mortgages; 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 herein provided, at such rates of commission as may be approved by the Governor of the Farm Credit Administration. (July 17, 1916, sec. 202 (a); Mar. 4, 1923, sec. 2, 42 Stat. 1455; Mar. 4, 1925, sec, 7, 43 Stat. 1264, June 26, 1930, sec. 1, 46 Stat. 816; May 19, 1932, sec. 1, 47 Stat. 159, June 16, 1933, sec. 76 (b), (c), 48 Stat. 271; June 3, 1935, sec. 5 (a), (b), 49 Stat. 315; 12 U.S. C., sec. 1031.)

638-216. 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 this section, if the amount of such paper added to the aggregate liabilities of such national bank, State bank, trust company or savings institution,

>

*See Ex, Or. 6084, p. 254, this volume.

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 this section 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 this section 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, sec. 202 (b); Mar. 4, 1923, sec. 2, 42 Stat. 1455; 12 U. S. C., sec. 1032.)

638-217. Maturity and sale of loans, advances, or discounts.-Loans, advances, or discounts made under this section 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 this section, with or without its indorsement. (July 17, 1916, sec. 202 (c); Mar. 4, 1923, sec. 2, 42 Stat. 1455; June 26, 1930, sec. 2, 46 Stat. 816; 12 U.S. C., sec. 1033.)

638-218. "Debentures" defined.The terms "debenture" and "debentures", when used in any Act of Congress, whenever enacted, except the Federal Farm Loan Act, 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, sec. 39, 50 Stat. 718; 12 U.S.C., sec. 1040.)

638-219. Issue of debentures; collateral trust debentures or similar obligations; security for; maturity;_limitation respecting amount. That Federal Intermediate Credit Banks shall have power, subject to the approval of the Federal Farm Loan Board (now 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 section 202: 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, sec. 203 (a); Mar. 4, 1923, sec. 2, 42 Stat. 1456; June 3, 1935, sec. 6 (a), 49 Stat. 315; Aug. 19, 1937, sec. 27, 50 Stat. 715:12 U. S. C., sec. 1041.)

*See Ex. Or. 6084, p. 254, tbis volume.

638–220. Applicability of provisions of title I; regulations governing collateral and handling thereof; interest rates. The provisions of title I of this Act 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 the preceding section; 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 conditions as may be approved by the said Administration. Rates of interest upon debentures and other such obligations issued under the preceding 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,

6 1916, sec. 203 (b); Mar. 4, 1923, sec. 2, 42 Stat. 1456; Aug. 19, 1937, sec. 28, 50 Stat. 715; 12 U.S. C., sec. 1042.)

638–221. 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 this section, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form and substance by the Federal Farm Loan Board [now Farm Credit Administration]* and approved by the Secretary of the Treasury, clearly indicating that no such liability is assumed. (July 17, 1916, sec. 203 (c); Mar. 4, 1923, sec. 2, 42 Stat. 1456; 12 U.S.C., sec. 1043.)

638_222. 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 this section and the provisions of section 21 of Title I of this Act, insofar as applicable. As used in this Act, the term "debentures" includes such consolidated debentures. (July 17, 1916, sec. 203 (d); June 3, 1935, sec. 6 (b), 49 Stat. 315; 12 U. S. C. sec. 1044.)

638-223. 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, sec. 203 (e); June 3, 1935, sec. 6 (b), 49 Stat. 316; 12 U. S. C., sec. 1045.)

638-224. Discount rates, establishment of and approval of; limitations on.-Any Federal intermediate credit bank may, with the approval of the Intermediate Credit Commissioner, from time to time

[ocr errors]
[ocr errors]

*See Ex. Or. 6084, p. 254, tbis volume.

« PreviousContinue »