§ 891 8 892 § 893 APPLICATION OF AMORTIZATION AND INTEREST Payments upon mortgages pledged as collateral for bond issue; notice to registrar; cancellation of mortgage and discharge of lien upon full payment.-Whenever any Federal land bank, or joint stock land bank, shall receive any interest, amortization, or other payments upon any first mortgage or bond pledged as collateral security for the issue of farm loan bonds, it shall forthwith notify the farm loan registrar of the items so received. Said registrar shall forthwith cause such payment to be duly credited upon the mortgage entitled to such credit. Whenever any such mortgage is paid in full, said registrar shall cause the same to be canceled and delivered to the proper land bank, which shall promptly satisfy and discharge the lien of record and transmit such canceled mortgage to the original maker thereof, or his heirs, administrators, executors, or assigns. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Withdrawal of collateral and substitution of other security.-Upon written application by any Federal land bank, or joint stock land bank, to the farm loan registrar, it may be permitted, in the discretion of said registrar, to withdraw any mortgages or bonds pledged as collateral security under this chapter, and to substitute therefor other similar mortgages or United States Government bonds not less in amount than the mortgages or bonds desired to be withdrawn. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Place and mode of payment of bonds or interest thereon; cancellation on payment.-Whenever any farm loan bonds, or coupons or interest payments of such bonds, are due under their terms, they shall be payable at the land bank by which they were issued, in gold or lawful money, and upon payment shall be duly canceled by said bank. At the discretion of the Farm Credit Administrattion, payment of any farm loan bond or coupon or interest payment may, however, be authorized to be made at any Federal land bank, any joint stock land bank, or any other bank, under rules and regula § 22 $22 8 22 tions to be prescribed by the Farm Credit Admin- "Farm Credit Administration" mentioned in the text was sub- § 894 § 895 § 896 $ 897 Withdrawal of collateral security on surrender of bonds. When any land bank shall surrender to the proper farm loan registrar any farm loan bonds of any series, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds pledged as collateral security for any of said series of farm loan bonds to an amount equal to the farm loan bonds so surrendered, and it shall be the duty of said registrar to permit and direct the delivery of such mortgages and bonds to such land bank. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Interest payments on pledged_mortgages.— Interest payments on hypothecated first mortgages shall be at the disposal of the land bank pledging the same, and shall be available for the payment of coupons and the interest of farm loan bonds as they become due. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Payment of bonds, coupons and interest at maturity. Whenever any bond matures, or the interest on any registered bond is due or the coupon on any coupon bond matures, and the same shall be presented for payment as provided in this subchapter, the full face value thereof shall be paid to the holder. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Payment of bonds, coupons and interest at maturity; trust fund from payments on mortgages held as collateral.-Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of farm loan bonds shall constitute a trust fund in the hands of the Federal land bank or joint stock land bank receiving the same, and shall be applied or employed as follows: 8 22 8 22 § 22 § 22 In the case of a Federal land bank (a) To pay off farm loan bonds issued by or in behalf of said bank as they mature. (b) To purchase at or below par Federal Farm loan bonds. (c) To loan on first mortgages on farm lands within the farm credit district, qualified under this chapter as collateral security for an issue of farm loan bonds. (d) To purchase United States Government bonds. (e) To purchase Federal Farm Mortgage Corporation bonds. In the case of a joint stock land bank (a) To pay off farm loan bonds issued by said bank as they mature. 8 (b) To purchase at or below par farm loan bonds. (d) To purchase United States Government (e) To purchase Federal Farm Mortgage Corporation bonds. (July 17, 1916, c. 245, § 22, 39 Stat. 378; Mar. 4, 1923, c. 252, § 309, 42 Stat. 1477; Jan. 31, 1934, c. 7, § 8 (b), 48 Stat. 347; Aug. 19, 1937, c. 704, §§ 5 (a), 15 (c), 50 Stat. 704, 708.) New loans by joint stock land banks prohibited after May 12, 1933, except in circumstances permitted under 810 of this title. § 898 $ 899 Payment of bonds, coupons and interest at maturity; deposit of trust funds with registrars as substituted collateral security.-The farm loan bonds, first mortgages, United States Government bonds, or cash constituting the trust funds aforesaid, shall be forthwith deposited with the farm loan registrar as substituted collateral security in place of the sums paid on the principal of indorsed mortgages held by him in trust. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) Payment of bonds, coupons and interest at maturity; notice to registrar of disposition of principal payments on mortgages held as collateral; transfer to registrar on demand.-Every Federal land bank, or joint stock land bank, shall notify the farm loan registrar of the disposition of all payments made on the principal of mortgages held as collateral security for an issue of farm loan bonds, and said registrar is authorized, at his dis § 22 § 22 § 902 § 901 cretion, to order any of such payments, or the pro- RESERVES AND DIVIDENDS OF LAND BANKS Amount carried to reserve account; making good impairment; debit to reserve account. (a) Federal land banks; amount carried to re- (b) Joint stock land banks; amount carried to (c) Debit to reserve account. For the period of Dividends on balance of net earnings; investment of reserves. (a) Federal land bank dividends.-After deducting the 50 per centum or the 10 per centum 8 23 § 23 directed to be deducted for credit to reserve account (b) Joint stock land bank dividends.-After (c) Investment of reserves.-The reserves of land banks shall be invested in accordance with rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, c. 245, § 23, 39 Stat. 379; 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. 8 911 8 912 RESERVES AND DIVIDENDS OF NATIONAL FARM Amount carried to reserve account.-Every national farm loan association shall, out of its net earnings, semiannually carry to reserve account a sum not less than 10 per centum of such net earnings until said reserve account shall show a credit balance equal to 25 per centum of the outstanding capital stock of said association. After said reserve has reached the sum of 25 per centum of the outstanding capital stock, 5 per centum of the net earnings shall be semiannually added thereto. (July 17, 1916, c. 245, § 24, 39 Stat. 379; Jan. 23, 1932, c. 9, § 4, 47 Stat. 13.) Making good impairment of reserve. Whenever the reserve shall have been impaired it shall be fully restored before any dividends are paid. (July 17, 1916, c. 245, § 24, 39 Stat. 379; Jan. 23, 1932, c. 9, § 4, 47 Stat. 13.) 8 24 § 24 |