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sec. 4 (a), 48 Stat. 345; Apr. 27, 1934, sec. 14, 48 Stat. 647; 12 U. S. C., sec, 1020c.)
638–196. Purchase of consolidated farm loan bonds; loans to Federal and joint stock land banks; investment in mortgages; extensions.—(b) The corporation is further authorized to purchase from time to time, for cash, such consolidated farm loan bonds at such prices and upon such terms as may be approved by the board of directors of the corporation; to make loans to Federal land banks and joint stock land banks on the security of real estate mortgages, sheriff's certificates, sales contracts and real estate, upon such terms and conditions as shall be prescribed by the board of directors of the corporation: Provided, however, shat loans outstanding to joint-stock land banks under this subsection shall not at any one time exceed in the aggregate $10,000,000; to make loans to Federal land banks on the security of consolidated farm loan bonds; and to invest its funds in mortgage loans made under section 32 of the Emergency Farm Mortgage Act of 1933, as amended.
When in the judgment of the directors conditions justify it, the corporation shall have power to extend, in whole or in part, any unpaid obligation under the terms of any mortgage, and to accept payment of any such obligation together with interest thereon, at a rate not exceeding 5 per centum per annum, during such period and in such amounts as may be agreed upon at the date of making such extension. (Jan. 31, 1934, sec. 4 (b), 48 Stat. 346; Aug. 19, 1937, secs. 2, 4, 50 Stat. 703; 12 V. S. C., sec, 1020d)
638–197. Preparation of bonds.-(c) In order to furnish bonds for delivery by the Federal Farm Mortgage Corporation, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provisions of this Act, as the board of directors may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the corporation. The engraved plates, dies, bedpieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The corporation shall reimburse the Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such bonds. (Jan. 31, 1934, sec. 4 (c), 48 Stat. 346; 12 U. S. C., sec. 1020e.)
638–198. Exemptions from taxation.—(a) The corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed.
(b) Mortgages executed to the Land Bank Commissioner and mortgages held by the Corporation, and the credit instruments secured thereby, and bonds issued by the Corporation under the provisions of this Act, shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, muni. cipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). (Jan. 31, 1934, sec. 12, 48 Stat. 347; Feb. 26, 1934, 48 Stat. 360; 12 U. S. C., sec. 1020f.)
638–199. Severability clause; reservation of right to amend.—(a) If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.
(b) The right to alter, amend, or repeal this Act is hereby expressly reserved. (Jan. 31, 1934, sec. 17, 48 Stat. 348; 12 U. S. C., sec. 1020g.)
638–200. Citation of Act.—This Act may be cited as the “Federal Farm Mortgage Corporation Act”. (Jan. 31, 1934, sec. 18, 48 Stat. 349; 12 U. Š. C., sec. 1020h.)
638–201. Loans to farmers by Governor of Farm Credit Administration; purposes.—That the Governor of the Farm Credit Administration, hereinafter in this Act referred to as the Governor, is hereby authorized to make loans to farmers in the United States (including Hawaii and Puerto Rico), for fallowing, for planting, for cultivation, for production of crops, for harvesting of crops, for supplies incident and necessary to such production or harvesting, and for feed for livestock, or for any of such purposes. Such loans shall be made and collected through such agencies, upon such terms and conditions, and subject to such regulations, as the Governor may prescribe. (Jan. 29, 1937, sec. 1, 50 Stat. 5; 12 U. S. C., sec. 1020i.)
638–202. Persons entitled; security; limitation on amount; interest.(a) No loan shall be made under this Act to any applicant who shall not have first established to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such regulations as the Governor may prescribe, that such applicant is unable to procure from other sources a loan in an amount reasonably adequate to meet his needs for the purposes for which loans may be made under this Act; and preference shall be given to the applications of farmers whose cash requirements are small.
(b) There shall be required as security for any such loan a first lien, or an agreement to give a first lien, upon all crops of which the production or harvesting, or both, is to be financed, in whole or in part, with the proceeds of such loan; or, in case of any loan, for the purchase or production of feed for livestock, a first lien upon the livestock to be fed.
(c) No loan made under the provisions of this Act to any borrower shall exceed $400, nor shall a loan be so made in any calendar year which, together with the unpaid principal of prior loans so made to such borrower in that year, shall exceed $400 in amount: Provided, however, That in any area certified by the President of the United States to the Governor as a distressed emergency area, the Governor may make loans without regard to the foregoing limitations as to amount, under such regulations, with such maturities, and in such amounts as he may prescribe.
(d) Each loan shall bear interest at the rate of 4 per centum per annum. (Jan. 29, 1937, sec. 2, 50 Stat. 6; 12 U. S. C., sec. 1020j.)
638-203. Use of loan, purposes; exemption from execution, etc. The proceeds of each loan made by the Governor under the provisions of this Act shall be impressed with a trust for the purposes for which loans may be made under this Act, and may be used only for the purposes stated in the application therefor, and such trust shall continue, and the proceeds shall be free from garnishment, attachment,
or the levy of an execution, until such proceeds have been used by the borrower for such purposes. (Jan. 29, 1937, sec. 3, 50 Stat. 6; 12 U. S. C., sec. 1020k.)
638_204. Fees for making loans and releasing liens.--(a) Fees for recording, filing, registration, and examination of records (including certificates) shall not exceed 75 cents per loan, and may be paid from the proceeds of the loan.
(b) No fees for releasing liens given to secure loans made pursuant to this Act, nor any other fee not specified herein, shall be paid from the funds herein authorized to be appropriated. (Jan. 29, 1937, sec. 4, 50 Stat. 6; 12 U. S. C., sec. 10201.)
638–205. Officers and employees; appointment and compensation; use by other institutions; use of employees of other institutions.-(a) The Governor shall have power, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States, to employ and fix the compensation and duties of such agents, officers, and employees as may be necessary to carry out the purposes of this Act; but the compensation of such officers and employees shall correspond, so far as the Governor deems practicable, to the rates established by the Classification Act of 1923, as amended.
(b) Such agents, officers, and employees, or any of them, and the agents, officers, employees, and facilities of the Farm Credit Administration available for use in connection with loans made under the provisions of this Act or of prior crop production, seed, and feed loan Acts of the same general character, may be used by the Governor to perform services for any institution operating under the supervision of the Farm Credit Administration, upon such terms and conditions as the Governor may determine; and such institutions are hereby expressly empowered to enter into agreements with the Governor for such purpose.
(c) For the purpose of carrying out the provisions of this Act, and for collecting loans made under other Acts of the same general character, including loans made by the Governor with funds appropriated by the Emergency Appropriation Act, fiscal year 1935, or the Emergency Relief Appropriation Act of 1935, the Governor is authorized also to use the facilities and services of any agency or corporation operating under the supervision of the Farm Credit Administration, and of any officer or employee of any such agency or institution, or of the Farm Credit Administration, and may pay for such services and the use of such facilities from the funds made available for the payment of necessary administrative expenses, and such agencies and institutions are hereby expressly empowered to enter into agreements with the Governor for the accomplishment of such purposes and to perform the services provided for therein. (Jan. 29, 1937, sec. 5, 50 Stat. 6; 12 U.S. C., sec. 1020m.)
638–206. Unlawful use of loans; false representations; accepting fee for securing loans; penalties.—(a) Escept with the written permission of the Governor or his duly authorized representative, it shall be unlawful for any borrower to willfully use the proceeds of any loan:
(1) For any purpose other than those specified in the application therefor; or
(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 knowl. edge 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 Ú. 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. 1954; 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 V. 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. 1754; 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.