[P u b lic — N o . 503— 6 7 th C ongkb§5.]\

[S. 4280.]

An Act To provide additional credit facilities for the agricultural 

and live-stock industries of the United States; to amend the Federal Farm Loan Act; 

to amend the Federal Reserve Act; and for other purposes.”

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

TITLE I.—FEDERAL INTERMEDIATE CREDIT BANKS.

S e c t io n 1. That section 1 of the Federal Farm Loan Act is

amended to read as follows:

“TITLE I.— FEDERAL FARM LOANS.

“ S e c t io n 1. That this Act may be cited as the ‘ Federal Farm

Loan Act.’ Its administration shall be under the direction and control of the Federal Farm Loan Board hereinafter created.”

S ec. 2. That the Federal Farm Loan Act is amended by adding at

the end thereof a new title, to read as follows:

“TITLE II.—FEDERAL INTERMEDIATE CREDIT BANKS.

“ ORGANIZATION.

“ S e c . 2 01 . (a) That the Federal Farm Loan Board shall have

power to grant charters for 12 institutions to be known and styled as

4 Federal Intermediate Credit Banks.’

“ (b) Such institutions shall be established in the same cities as the

12 Federal Land Banks. The officers and directors of the several

Federal Land Banks shall be ex officio officers and directors of the

several Federal Intermediate Credit Banks hereby provided for and

shall have power to employ and pay all clerks, bookkeepers, accountants and other help necessary to carry on the business authorized by

this title.

“ (c) 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.

“ (d) 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.

“ (e) 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, and proceedings shall

thereupon be had in accordance with the provisions of section 29 of

this Act regarding National Farm Loan Associations.

u(f) The charters to such Federal Intermediate Credit Banks 

shall be granted upon application of the directors of the Federal

(l)

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[Pub. SOS.)

Land Banks which application shall be in such form as the Federal

Farm Loan Board shall prescribe.

DISCOUNTS AND LOANS.

“ S ec. 202. (a) 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 Loan Board 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 live-stock loan company, savings institution, cooperative bank, cooperative credit or marketing association of agricultural producers, organized under the laws of any State, and/or any

other Federal Intermediate Credit Bank, with its indorsement, any

note, draft, bill of exchange, debenture, or oth.er 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 live stock;

(2) To buy or sell, with or without recourse, debeqtures 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 live stock, 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

live stock: Provided, That no such loan or advance shall exceed 75

per centum of the market value of the products covered by said warehouse receipts and/or shipping documents, or of the live stock covered by said mortgages.

“ (b) 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, 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,

^o 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 live

stock, if the amount of such paper added to the aggregate liabilities

of such corporation exceeds the amount of stich 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.”

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(c) 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 less than six months nor 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.

(d) Rates of interest or discount charged by the Federal Intermediate Credit banks upon such loans and discounts shall be subject

to the approval of the Federal Farm Loan Board. On the majority

vote of the members of the Federal Farm Loan Board any Federal

Intermediate Credit Bank shall be required to rediscount the discounted paper of any other Federal Intermediate Credit Bank at

rates of interest to be fixed by the Federal Farm Loan Board.

ISSUE OF DEBENTURES.

“ S e c . 2 03. (a) That Federal Intermediate Credit Banks, when

chartered and established, shall have power, subject to the approval

of the Federal Farm Loan Board, 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, or notes or other

such obligations discounted or purchased or representing loans made

under section 2 0 2 : Provided, That no Federal Intermediate Credit

Bank shall have power to issue or obligate itself for debentures or

other obligations under the provisions of this section in excess of

ten times the amount of the paid-up capital and surplus of such bank.

(b) The provisions of Title I relating to the preparation and issuo

of farm loan bonds shall, so far as applicable, govern the preparation and issue of debentures or other such obligations issued under

this section; but the Federal Farm Loan Board shall prescribe rules

and regulations governing the receipt, custody, substitution, and release of collateral instruments securing such debentures or other obligations, the ri^ht of substitution being hereby granted. Rates of

interest upon debentures and other such obligations issued under this

section shall, subject to the approval of the Federal Farm Loan

Board, be fixed by the Federal Intermediate Credit Bank making

the issue, not exceeding 6 per centum per annum.

“ (c) 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 and approved by

the Secretary of the Treasury, clearly indicating that no such liability is assumed.

DISCOUNT RATES.

“ S ec. 204. (a) That before making any discounts under the provisions of this title, each Federal Intermediate Credit Bank snail

establish and promulgate a rate of discount to be approved bv the

Federal Farm Loan Board. Any Federal Intermediate Credit Bank

which has made an issue of debentures under the provision of this

title may thereafter establish, with the approval of tne Federal Farm

Loan Ekmrd, a rate of discount not exceeding by more than 1 per

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centum per annum the rate borne by its last preceding issue of

debentures.

“ (b) Xo organization entitled to the privileges of this title, shall,

without the approval of the Federal Farm Loan Board, be allowed

to discount with any Federal Intermediate Credit Bank any note or

other obligation, upon which the original borrower has been charged

a rate of interest exceeding by more than 1| per centum per annum

the discount rate of the Federal Intermediate Credit Bank at the

time such loan was made.

“ (c) A Federal Intermediate Credit Bank may, subject to the

approval of the Federal Farm Loan Boardt buy in the open market

at or below par for its own account and retire at or before maturity

any such debentures or obligations issued by it.

CAPITAL STOCK.

“ S ec. 205. That for the purpose of exercising the powers conferred by this title, each Federal Intermediate Credit Bank shall

have a subscribed capital stock of $5,000,000. Capital stock of such

amount shall be divided into shares of $5 each and shall be subscribed, held, and paid by the Government of the United States.

It shall be the duty of the Secretary of the Treasury to subscribe

to such capital stocK on behalf of the United States, such subscription to be subject to call in whole or in part by directors of the

said banks upon 30 days’ notice to the Secretary of the Treasury and

with the approval of the Federal Farm Loan Board. The Secretary

of the Treasury is authorized and directed to take out shares as

railed and to pay for the same out of any money in the Treasury

not otherwise appropriated.

APPLICATION OF EARNINGS.

“ S ec. 206. (a) That the Federal Farm Loan Board shall equitably

apportion the joint expenses incurred in behalf of Federal Land

Banks, Joint Stock Land Banks, and Federal Intermediate Credit

Banks, and shall assess against £ach Federal Intermediate Credit

Bank its proportionate share of the expenses of any additional personnel in the Federal Farm Loan Bureau made necessary in connection with the operation of this provision.

“ (b) After all necessary expenses of a Federal Intermediate 

Credit Bank have been paid or provided for, the net earnings shall 

be divided into equal parts and one-half thereof shall be paid to 

the United States and the balance shall be paid into a surplus 

fund until it shall amount to 100 per centum of the subscribed capital stock of such bank and that thereafter 10 per centum of such 

earnings shall be paid into the surplus. After the aforesaid requirements have been fully met, the then net earnings shall be paid to 

the United States as a franchise tax. The net earnings derived by 

the United States from Federal Intermediate Credit Banks shall, 

in the discretion of the Secretary of the Treasury, be used to supplement the gold reserve held against outstanding United States 

notes, or shall be applied to the reduction of the outstanding bonded 

indebtedness of the United States under regulations to be prescribed 

by the Secretary of the Treasury. Should a Federal Intermediate

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Credit Bank be dissolved or go into liquidation, after the payment 

of all debts and other obligations as hereinbefore provided, any 

surplus remaining shall be paid to and become the property of 

the United States and shall be similarly applied.

LIABILITY ON DEBENTURES.

“ S ec. 207. That any Federal Intermediate Credit Bank issuing

debentures or other such obligations under this title shall be primarily liable therefor, and shall also be liable, upon presentation of

the coupons for interest payments due upon any such debentures or

obligations issued by any other Federal Intermediate Credit Bank

and remaining unpaid in consequence of the default of the other

Federal Intermediate Credit Bank. Any Federal Intermediate

Credit Bank shall likewise be liable for such portion of the principal of debentures or obligations so issued as are not paid after

the assets of such other Federal Intermediate Credit Bank have

been liquidated and distributed. Such losses, if any, either of interest or of principal, shall be assessed by the Federal Farm Loan

Board against solvent Federal Intermediate Credit Banks liable

therefor in proportion to the amount of capital stock, surplus, and

debentures or other such obligations which each may have outstanding 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.

EXAMINATIONS AND REPORTS.

“ S e c. 208. (a) That in order to enable each Federal Intermediate 

Credit Bank to carry out the purpose of this title, 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 Federal Farm Loan Board by land bank 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 Federal Farm Loan

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B oard, and the results o f such exam ination and audit shall be made

public by the board.

(b) Every Federal Intermediate Credit Bank shall make to the

Federal Farm Loan Board not less than three rf-ports during each

year as requested by the board and according to the form which may

be prescribed by the board, 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 Federal Farm Loan Board within five days from the receipt of a request

or requisition therefor from the board, and in the same form in which

it is made to the Federal Farm Loan Board shall be published in a

newspaper published in the place where such Federal Intermediate

Credit Bank is established, or if there is no newspaper 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 Federal Farm Loan Board. The Federal

Farm Loan Board 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 is condition.

(c) Land bank appraisers are authorized, upon the request of any

Federal Intermediate Credit Bank and with the approval of the

Federal Farm Loan Board, to investigate and make a written report

upon the products covered by warehouse receipts or shipping documents, and the live stock covered by mortgages, which are security

for notes or other such obligations representing any loan to any organization, under this title. Land bank examiners are authorized,

upon the request of any Federal Intermediate Credit Bank and with

the approval of the Federal Farm Loan Board, 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.

“ (d) The Federal Farm Loan Board shall assess the cost of all

examinations made by the examiners of the board under the provisions of this title, upon the bank, trust company, savings institution,

or organization investigated, in accordance with the regulations to

be prescribed by the board.

RULES AND REGULATIONS.

“ S e c . 209. That the Federal Farm Loan Board 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

title.

TAX EXEMPTION.

w S e c. 210. That the privileges of tax exemption accorded under section 26 of this Act snail 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 title

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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.

“ PENALTY PROVISIONS.

“ S ec. 211. (a) That any officer, director, agent, or employee of a

Federal Intermediate Credit Bank who embezzles, abstracts, purloins, or willfully misapplies any of the moneys, funds, or credits of

such bank, or who, without authority from such bank, draws any

order or bill of exchange, makes any acceptance, issues, puts forth,

or assigns any note, debenture, bond, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry in any book,

report, or statement of such bank with intent in any case to injure

or defraud such bank or any other company or person, or to deceive

any officer of such bank or the Federal Farm Loan Board, or any

agent or examiner appointed to examine the affairs of such bank:

and every receiver or such bank who with like intent to defraud or

injure embezzles, abstracts, purloins, or willfully misapplies any of

the moneys, funds, or assets of such bank, and every person who

with like intent aids or abets any officer, director, agent, employee,

or receiver in any violation of this section, shall be deemed guilty

of a misdemeanor, and upon conviction thereof in any district court

of the United States, shall be fined not more than $5,000, or shall be

imprisoned for not more than five years, or both, at the discretion

of the court.

“ (b ) W h oever makes any statement, know ing it to be false, for

the purpose o f obtaining for h im self or fo r any other person, firm,

corporation, or association any advance, or extension or renewal o f

an advance, or any release or substitution o f security from such bank,

or fo r the purpose o f influencing in any other way the action o f such

bank, shall be punished by a fine o f not more than $10,000, or by

im prisonm ent fo r not more than five years, or both.

u(c) Whoever willfully overvalues any property offered as security for any such advance shall be punished by a fine of not more

than $5,000, or by imprisonment for not more than two years, or both.

“ (d) Any examiner appointed under this Act wrho shall accept a

loan or gratuity from any organization examined by him, or from

any person connected with any such organization in any capacity,

or who shall disclose the names of borrowers to other than the proper

officers of such organization, without first having obtained express

permission in writing from the Farm Loan Commissioner or from

the board of directors of such organization, except when ordered

to do so by a court of competent jurisdiction or by direction of the

Congress of the United States or of either House thereof, or any committee of Congress or of either House duly authorized, shall be punished by a fine of not exceeding $5,000 or by imprisonment of not

exceeding one year, or both, and may be fined a further sum equal

to the money so loaned or gratuity given, and shall forever thereafter bo, disqualified from holding office as an examiner under the

provisions or this Act. No examiner while holding such office shall 

perform any other service for compensation for any bank or banking or loan association or for any person connected therewith in 

any capacity.

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“ (e) Whoever, being an officer, director, employee, agent or

attorney of a Federal Intermediate Credit Bank, stipulates for or

receives or consents or agrees to receive any fee, commission, gift,

or thing of value, from any person, firm, or corporation for procuring or endeavoring to procure for such person, firm, or corporation,

or for any other person, firm, or corporation any loan from any such

corporation or extension or renewal of loan or substitution of security,

or the purchase or discount or acceptance of any paper, note, draft,

check, or bill of exchange by any such corporation, shall be deemed

guilty of a misdemeanor and shall upon conviction thereof be

imprisoned for not more than one year and fined not more than

$5,000, or both.

“ (f) Any person who shall falsely make, forge, or counterfeit

or cause or procure to be falsely made, forged, or counterfeited or

willingly aid or assist in falsely making, forging, or counterfeiting

any debenture, coupon, or other obligation in imitation of or purporting to be in imitation of the debenture, coupon, or other obligation issued by any Federal Intermediate Credit Bank, or any

person who shall pass, utter, or publish or attempt to pass, utter,

or publish any false, forged, or counterfeited, debenture, coupon,

or other obligation purporting to be issued by any such bank knowing the same to be falsely made, forged, or counterfeited, or any

person who shall falsely alter or cause or procure to be falsely

altered or shall willingly aid or assist in falsely altering any such

debenture, coupon, or other obligation or who shall pass, utter, or

publish as true any falsely altered or spurious debenture, coupon,

or other obligation issued or purporting to have been issued by any

such bank knowing the same to be falsely altered or spurious, shall

be punished by a fine of not exceeding $5,000 or by imprisonment

not to exceed five years, or both.

“ (g) Any person who shall deceive, defraud, or impose upon or

who shall attempt to deceive, defraud, or impose upon any person,

partnership, corporation, or association by making any false pretense or representation concerning the character, issue, security,

contents, conditions, or terms of any debenture, coupon, or other

obligation issued under the terms of this title, shall upon conviction

be fined not exceeding $500, or imprisoned not to exceed one year, or

both.

“ (h) All corporations not organized under the provisions of this

title are prohibited from using the words ‘ Federal Intermediate

Credit Bank’ as part of their corporate name, and any violation

of this prohibition shall subject the party charged therewith to a

civil penalty of $50 for each day during which the violation

continues.

“ S e c. 212. That no Federal Intermediate Credit Bank shall 

charge or receive any fee, commission, bonus, gift, or other consideration not herein specifically authorized.”

TITLE II.—NATIONAL AGRICULTURAL CREDIT CORPORATIONS.

FORMATION.

S ec. 201. That corporations for the purpose of providing credit

facilities for the agricultural and live-stock industries of the United

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States, to be known as National Agricultural Credit Corporations,

may be formed by an}' number of natural persons not less in any

case than five. Such persons shall enter into articles of association

which shall specify the object for which the corporation is formed.

Such articles of association shall be signed by the persons intending

to participate in the organization of the corporation and be forwarded to the Comptroller of the Currency to be filed and preserved

in his office.

REQUISITES OF ARTICLES AND CERTIFICATE.

S e c . 202. (a) That persons signing such articles of association shall

make an organization certificate which shall specifically state the

name of the corporation to be organized, the place where its office is

to be located, the State or States in which its operations are to be

carried on, the amount of its capital stock, and the number of shares

into which the same shall be divided, and that the certificate is made

to enable the subscribers to avail themselves of the advantages of

this title.

(b) The name of each corporation organized under this title shall

include the words “ National Agricultural Credit Corporation.”

(c) The organization certificate and articles of association shall

be acknowledged before some judge of a court of record or notary

public and shall, together with the acknowledgment thereof duly

authenticated by the seal of such court or notary, be transmitted to

the Comptroller of the Currency, who shall file, record, and carefully preserve the same in his office.

(а) Upon making and filing the articles of association and organization certificate with the Comptroller of the Currency, and when

the Comptroller of the Currency has approved the same and issued a

written permit to begin business, the corporation shall be and become

a body corporate, and shall have power—

(1) To adopt and use a corporate seal.

(2) To have succession for a period of 50 years unless sooner dissolved by the act of shareholders owning two-thirds of its stock or

by Act of Congress or unless its charter shall be forfeited for violation of law.

(3) To make contracts.

(4) To sue and be sued, complain and defend in any court of law

or equity, and for purposes of jurisdiction shall be deemed a citizen

of the State where it is located.

(5) To elect or appoint directors and by its board of directors to

appoint such officers and employees as may be deemed proper; to

define their authority and duties; to fix their salaries; in its discretion to require bonds of any of them and to fix the penalty thereof;

and to dismiss at pleasure any of such officers or employees.

(б) To prescribe by its board of directors by-laws not inconsistent

with law or the regulations of the Comptroller of the Currency defining the manner m which its general business may be conducted, its

shares of stock be transferred, its directors and officers be elected or

appointed, its property transferred, and the privileges granted to it

by law be exercised and enjoyed.

(T) To exercise by its board of directors or duly authorized

officers or agents all powers specifically granted by the provisions

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of this title, and such incidental powers as shall be necessary to

carry on the business for which it is incorporated, within the limitations prescribed by this title, but such corporation shall transact

no business except such as is incidental and necessarily preliminary

to its organization until authorized in writing by the Comptroller

of the Currency to commence business under the provisions of this

title.

(8) The affairs of each National Agricultural Credit Corporation

shall be managed by not less than five directors, who shall be

elected by the stockholders at a meeting to be held at any time

before the corporation is authorized by the Comptroller of the

Currency to commence business, and afterwards at meetings to be

held on such day in January of each year as may be provided in

the articles of association. The directors so elected shall hold office

for one year, and until their successors are elected and have qualified.

Every director and other officer of the corporation shall, before

entering upon the duties of his office, take and subscribe an oath

before a notary public or other official having a seal and authorized

to administer oaths, conditioned for the faithful performance of

the duties of his office. Such oath shall be in such form as may

be prescribed by the Comptroller of the Currency, and shall be

filed in the office of the Comptroller of the Currency. Any vacancy

in the board shall be filled by appointment bv the remaining directors. and any director so appointed shall hold his place until the next

election.

S e c . 2 0 3 . (a) That each National Agricultural Credit Corporation shall have power, under such rules and regulation as the Comptroller of the Currency may prescribe—

(1) To make advances upon, to discount, rediscount, or purchase,

and to sell or negotiate, with or without its indorsement or guaranty, notes, drafts, or bills of exchange, and to accept drafts or

bills of exchange, which—

(A) Are issued or drawn for an agricultural purpose, or the

proceeds of which have been or are to be used for an agricultural

purpose;

(B) Have a maturity, at the time of discount, purchase, or acceptance, not exceeding nine months; and

(C) Are secured at the time of discount, purchase, or acceptance by warehouse receipts or other like documents conveying or

securing title to nonperishable and readily marketable agricultural

products, or by chattel mortgages or other like instruments conferring a first and paramount lien upon live stock which is being

fattened for market.

(2) To make advances upon or to discount, rediscount, or purchase, and to sell or negotiate with or without its indorsement or

guaranty, notes secured by chattel mortgages conferring a first

and paramount lien upon maturing or breeding live stock or dairy

herds, and having a maturity at the time of discount, rediscount,

or purchase not exceeding three years.

(3) To subscribe for, acquire, own, buy, sell, and otherwise deal 

in Treasury certificates of indebtedness, bonds or other obligations 

of the United States to such extent as its board of directors may 

determine.

(4) To act, when requested by the Secretary of the Treasury, 

as fiscal agent of the United States, and to perform such services

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as the Secretary of the Treasury may require in connection with

the issue, sale, redemption or repurchase of bonds, notes, Treasury

certificates of indebtedness, or other obligations of the United

States.

(5) To purchase, hold, acquire, and dispose of shares of the capital stock of any corporation organized under the provisions of section 207, of this title, in an amount not to exceed at any time 20 per

centum of its paid in and unimpaired capital and surplus.

(6) To purchase, hold, and convey real estate for the following

purposes, and for no others:

(A) Such as shall be necessary for its accommodation in the transaction of its business.

(B) Such as shall be mortgaged to it in good faith by way of

security for debts previously contracted.

(C) Such as shall be conveyed to it in satisfaction of loans or

advances made or debts previously contracted in the course of its

dealings.

(D) Such as it shall purchase at sales under judgments, decrees, or

mortgages held by the corporation or shall purchase to secure debts

due to it.

(7) To act as custodian, trustee, or agent for holders of notes,

drafts, or bills of exchange sold or negotiated under paragraphs (1)

and (2) of subdivision (a) of this section or under section 207.

(8) To issue, subject to such regulations as the Comptroller of the

Currency may prescribe, collateral trust notes or debentures, with a

maturity not exceeding three years, and to pledge as security for

such notes or debentures any notes, drafts, bills of exchange, or other

securities held by the corporation under the terms of this title. The

regulations of the Comptroller of the Currency may prescribe the

form of notes or debentures, and of notes, drafts, bills of exchange,

warehouse receipts, chattel mortgages, or other instruments which

may be pledged as security therefor, the provisions which may be

made with regard to release, substitution, (ft* exchange of such securities, and with regard to protection, supervision, inspection, and

reinspection of the agricultural commodities or live stock pledged

or mortgaged as security therefor.

(b) 'fiie United States Government shall assume no liability, direct or indirect, for any debentures or other obligations issued under

this title, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form

and substance by the Comptroller of the Currency and approved

by the Secretary of the Treasury, clearly indicating that no such

liability is assumed.

(c) Any obligation referred to in paragraphs (1) or (2) of subdivision (a) of this section, which is secured by chattel mortgage

upon live stock of an estimated market value at least equal to the face

amount of such obligation, may be additionally secured by mortgage

or deed of trust upon real estate or by other securities, under such

regulations as may be made by the Comptroller of the Currency.

LIMITATIONS.

S ec. 204. Except as hereinafter provided in section 207 of this

title, no National Agricultural Credit Corporation shall incur IiaDigitized for FRASER 

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bilities, whether direct or contingent, in excess of ten times its paid

in and unimpaired capital and surplus; nor shall any such corporation make advances to or hold notes or other direct obligations of

any person or corporation, or have outstanding acceptances for any

person or corporation, in an amount exceeding 20 per centum of the

paid in and unimpaired capital and surplus of such corporation, unless such advances, notes, acceptances, or other obligations are adequately secured bv warehouse receipts representing readily marketable and nonperisliable agricultural commodities, in which event the

amount of such advances to, or notes or other direct obligations of,

or acceptances for, such one person, association, or corporation shall

not exceed 50 per centum of such paid in and unimpaired capital and

surplus. No such corporation snail purchase, own, or deal in any

live stock except live stock taken in the course of liquidation of

obligations held by it.

INTEREST RATES.

S e c . 2 0 5 . (a) Any National Agricultural Credit Corporation may

charge on any loan or discount made, or upon any note, bill of exchange, or other evidence of debt, interest at the rate allowed by the

laws of the State in which such corporation's located.

(b) The taking, receiving, reserving, or charging a rate of interest

greater than is allowed by subdivision (a), when knowingly done,

shall be deemed a forfeiture of the entire interest which the note,

bill, or other evidence of debt carries with it or which has been

agreed to be paid thereon. In case the greater rate of interest has

been paid, the person by whom it has been paid, or his legal representative, may recover fcack in an action in the nature of an action

for debt twice the amount of the interest thus paid from the corporation taking or receiving the same, provided such action is commenced within two years from the time the usurious interest was

collected.

CAPITAL STOCK.

S e c . 2 06 . (a) That no National Agricultural Credit Corporation

shall be permitted to commence business with a paidin capital of

less than $ 2 5 0 ,0 0 0 ; and no permit to begin business shall be issued

to any such corporation by the Comptroller of the Currency until

there shall have been filed with him a certificate signed by the president or treasurer and by individuals comprising a majority of the

board of directors of such corporation showing that at least 5 0 per

centum of the authorized capital stock of such corporation has been

paid in in cash; and the remainder of the capital stock of such corporation shall be paid in installments of at least 10 per centum each

on the whole amount of the capital, and the entire authorized capital stock shall be paid in within six months from the date upon

which such corporation shall be authorized by the Comptroller of

the Currency to commence business. The payment of each installment shall oe certified to the Comptroller of the Currency under

oath by the president or cashier of such corporation.

(b) The capital stock of any such corporation may be increased 

at any time with the approval of the Comptroller of the Currency 

by a vote of two-thirds of the holders of its issued and outstanding

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capital stock, or by written consent of all of its shareholders without a meeting and without a formal vote; and may be reduced in 

like manner: Provided, That in no event shall such capital stock be 

reduced to an amount less than one-tenth of its then outstanding indebtedness, direct or contingent, or to an amount less than $250,000,

nor without at the same time reducing proportionately outstanding 

liabilities. No National Agricultural Credit Corporation, except as 

herein provided, shall withdraw or permit to be withdrawn, either 

in the form of dividends or otherwise, any portion of its paidin capital, and section 5204 of the Revised Statutes, prohibiting the payment of unearned dividends or the withdrawal of capital of national 

banks, shall be held to apply to National Agricultural Credit Corporations.

(c) The provisions and limitations contained in section 5139 of 

the Revised Statutes, relative to transfer of the shares of the capital 

stock of national banks, shall apply to National Agricultural Credit 

Corporations.

(d) Whenever any shareholder or his assign fails, upon demand 

of the Comptroller of the Currency, to pay his subscription or any 

part thereof on stock of any National Agricultural Credit Corporation subscribed to by him, the directors of the corporation, after 15

days’ notice, shall proceed in the manner prescribed by section 5141

of the Revised Statutes for the collection of unpaid subscriptions to 

stock of national banks.

(e) Section 5144 of the Revised Statutes, which relates to the 

right of shareholders of national banks to vote by proxy, shall be 

held to apply to shareholders of National Agricultural Credit Corporations.

REDISCOUNT CORPORATIONS.

S ec. 207. (a) That National Agricultural Credit Corporations 

having an authorized capital stock of $1,000,000 or over may be 

organized under the provisions of this title, to exercise all the powers 

enumerated in section 203, except that in lieu of the powers conferred in paragraphs (1) and (2) of subdivision (a) of such section, 

such corporations shall have powers,—

(1) Upon the indorsement of any National Agricultural Credit 

Corporation, or of any bank or trust company which is a member of 

the Federal Reserve System, to rediscount for such corporation, 

bank, or trust company, notes, drafts, bills of exchange, and acceptances, which conform to the requirements of paragraphs (1) and (2) 

of subdivision (a) of section 203. Such indorsement shall be deemed 

to be a waiver of demand notice and protest by such corporation as 

to its own indorsement exclusively.

(2) To discount or purchase notes, drafts, or bills of exchange issued or drawn by cooperative associations of producers of agricultural products, provided such notes, drafts, or bills of exchange are 

secured at the time of discount or purchase by warehouse receipts or 

other like documents conveying or securing title to nonperishable 

and readily marketable agricultural products, and have a maturity 

at the time of discount or purchase not exceeding nine months*.

(3) To sell or negotiate with or without recourse any note, draft, 

or biJl of exchange discounted or purchased hereunder.

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(b) National Agricultural Credit Corporations organized under 

the provisions of this section, shall not be subject to tne limitations 

contained in section 204, but the Comptroller of the Currency may, 

by general regulations, from time to time prescribe the amount of 

indebtedness, direct or contingent, which such corporations may 

incur, and the aggregate amount of paper of different types which 

such corporations may rediscount for any one corporation.

(c) Corporations with powers limited, as provided in this section, 

shall not be subject to tne requirements as to deposit of bonds or 

other obligations of the United States, as provided in section 208 of 

this title.

PERMIT TO BEGIN BUSINESS.

S ec. 208. (a) That no National Agricultural Credit Corporation, 

except corporations with powers limited as provided in section 207, 

shall commence business until it - has deposited with the Federal 

reserve bank of the district wherein it has its place of business, 

bonds or other obligations of the United States in an aggregate 

face amount at least 25 per centum of its paidin capital stock. 

Each such corporation shall at all times keep on deposit with such 

Federal reserve bank an amount of such bonds or other obligations 

of the United States at least equal in face value to per centum 

of the aggregate indebtedness of such corporation, direct or contingent, said amount to include the 25 per centum deposited as 

hereinbefore by this section provided. Except as hereinafter provided, such bonds or other obligations shall be held by such Federal 

reserve bank, subject to the direction and control of tne Comptroller 

of the Currency, in trust for the equal and pro rata protection and 

benefit of all holders of notes, debentures, drafts, bills of exchange, 

or acceptances upon which such corporation may be directly or 

contingently liable. Upon receipt of proper evidence that the 

amount of such bonds or other obligations of the United States so 

deposited exceeds 7£ per centum of such aggregate indebtedness, 

the Comptroller of the Currency may release such excess, provided 

that the amount remaining on deposit shall in no event be reduced 

below 25 per centum of the paid-in capital stock of such corporation. Under such regulations as the Comptroller of the Currency 

may prescribe, a Federal reserve bank may, upon request of the 

corporation which deposited the same, sell any such bonds or obligations for account of such corporation, and permit such corporation to use the proceeds thereof for the protection or preservation 

of any property pledged or mortgaged as security for obligations 

owned or indorsed by the corporation. If by reason of such sale 

the face amount of such bonds or other obligations of the United 

States remaining on deposit with such Federal reserve bank shall 

be less than 7£ per centum of such aggregate indebtedness of the 

corporation, no further advances shall be made, or notes, drafts, 

or Dills of exchange discounted, rediscounted, accepted, or purchased, by such corporation until sufficient additional bonds or other 

obligations of the United States have been deposited to make good 

the deficiency.

(b) In determining whether to grant permission to do business_

to any National Agricultural Credit Corporation, the Comptroller

of the Currency shall take into account the extent to which the laws

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of the State or States in which the corporation will do business

afford adequate protection to advances made upon the security of

warehouse receipts covering: agricultural commodities or chattel

mortgages upon live stock with respect to (1) bonding, licensing,

and inspection of warehouses; (2) recordation of chattel mortgages

or deeds of trust on live stock; (3) recordation of brands or other

identifying marks on live stock; (4) reporting and recording of

interstate shipments and slaughter of live stock; and (5) right of

mortgagee to release a portion of the mortgaged property without

prejudice to the priority of lien as against junior lienors or other

creditors of the mortgagor.

MISCELLANEOUS ADMINISTRATIVE PROVISIONS.

S ec. 209. (a) That all National Agricultural Credit Corporations

shall be under the supervision of the Comptroller of the Currency,

who shall be charged with the execution of all laws of the United

States relating to the organization, regulation, and control of such

corporations. The Comptroller of the Currency shall exercise the

same general power of supervision over such corporations as he now

exercises over national banks organized under the laws of the United

States.

(b) In addition to the two Deputy Comptrollers of the Currency

now provided for by law, there shall be in the Bureau of the Comptroller of the Currency a third Deputy Comptroller of the Currency

who shall be appointed in the same manner and shall take a like

oath of office and give a like bond as the Deputy Comptrollers noif

provided for by law. Under the direction of the Comptroller of the

Currency, such additional Deputy Comptroller shall have charge of

the administration of the provisions of this title relating to the organization and operation of National Agricultural Credit Corporations and shall perform such other duties as shall be assigned to him

by the Comptroller of the Currency. The Comptroller of the Currency is hereby authorized to employ such additional examiners,

clerks, and other employees as he deems necessary to carry out the

provisions of this title and to assign to duty in the office of his

bureau in Washington such examiners and assistant examiners as he

shall deem necessary to assist in the performance of the work of

that bureau. The salaries of the Deputy Comptrollers of the Currency and of such additional examiners, assistant examiners, clerks,

and other employees shall be fixed in advance by the Comptroller

of the Currency. The salaries of the two Deputy Comptrollers now

provided for by law and of all national bank examiners and assistant examiners assigned to duty in the office of the bureau in

Washington in connection with the supervision of national banks

shall be considered part of the expenses of the examinations provided for by section 5240 of the Revised Statutes, as amended;

and the salaries of such additional Deputy Comptroller and of all

examiners, assistant examiners, clerks, and other employees appointed under the terms of this title and assigned to duty in connection with the administration of this title shall be considered 

part of the expenses of the administration of this title: Provided, 

lunaeper, That the salary of the additional Deputy Comptroller 

ptfovjded for by this subdivision shall be considered partijan ex­

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pense of the administration of this title in proportions to be determined from time to time by the Comptroller of the Currency with

a view to a fair apportionment of such expense, until such time as

it shall be necessary for such additional Deputy Comptroller to

give his full time to the administration of this title. The Comptroller of the Currency shall have power to levy semi-annually upon

the National Agricultural Credit Corporations operating under the

provisions of this title, in proportion to their total assets, an assessment sufficient to pay the expenses of the administration of this title

for the ensuing half year, together with any deficit carried forward from the preceding half year. Each such corporation shall

pay the amount so assessed against it to the Treasurer of the

United States subject to the order of the Comptroller of the Currency to be disbursed by the Comptroller in payment of expenses

incurred, in the administration of this title.

(c) The Comptroller of the Currency shall have power to appoint

and fix the compensation of examiners to examine National Agricultural Credit Corporations or to use national bank examiners for

this purpose. All examiners appointed by him shall be subject to

existing provisions of law relating to national bank examiners and

to the provisions of the Federal Reserve Act which prohibit national

bank examiners from performing any service for compensation for

any bank or officer and from disclosing the names of borrowers or

the collateral for loans without obtaining the written consent of the

Comptroller of the Currency, and such provisions shall be held to

apply to examiners appointed to examine corporations organized

under the provisions of this title.

(d) The expense of all of the examinations of National Agricultural Credit Corporations shall be assessed by the Comptroller of

the Currency upon the corporations examined in proportion to

assets or resources h3ld by the corporations upon the dates of examination of the various corporations: Provided, That a minimum

charge of $50 shall be made for each such examination.

(e) The provisions of the Federal Reserve Act which prohibit

any member bank from making loans or granting a gratuity to any

national bank examiner shall be applicable to National Agricultural

Credit Corporations.

(f) National Agricultural Credit Corporations shall be required

to make reports to the Comptroller of the Currency at the time

and in the manner required by sections 5211 and 5212 of the Revised

Statutes, and shall be subject to the provisions, so far as the same

may be held by said Comptroller to be applicable, of section 5213

of the Revised Statutes.

(g) The Secretary of Agriculture may issue a license to any

person, upon presentation to him of satisfactory evidence that" such

person is competent to inspect live stock as a basis for loans. The

Secretary of Agriculture may suspend or revoke any license issued

by him under this subdivision whenever, after opportunity for hearing has been given to the licensee, the Secretary shall determine that 

such licensee is incompetent, or has knowingly or carelessly made 

false or erroneous inspection reports with respect to any live stock, 

or has accepted any money or other consideration, directly or indirectly, for any neglect or improper performance of dnty, or has in 

any other manner shown himself to be nnfit to act as a live-stock

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inspector. Pending investigation, the Secretary of Agriculture, 

whenever he deems it necessary, may suspend a license temporarily 

without a hearing. It shall be unlawful for any person other than 

a holder of a license duly issued under this subdivision, or any person whose license has been suspended or revoked under the terms 

of this subdivision, to represent that he is a Federally licensed livestock inspector, and any violation of this provision shall be punishable by a fine of not more than $1,000, or by imprisonment for not 

more than one year, or both.

(h) Any inspector licensed under the provisions of subdivisions

(g) who makes any statement in any inspection report or to any person for the purpose of obtaining for himself, or any other person,

any advance on the security of the live stock inspected, knowing the

same to be false, or who willfully overvalues any security by which

an advance is secured, shall he punishable by a fine of not more than

$5,000, or by imprisonment for not more than five years, or both.

(i) The Comptroller of the Currency shall allot to the Department 

of Agriculture from time to time such sums as may be estimated to 

be necessary for the administration of the functions vested in that 

department by this title, and may ratabhr assess the same from time 

to time against National Agricultural Credit Corporations.

BANKS MEMBERS OF THE FEDERAL RESERVE SYSTEM M AY BECOME STOCK

HOLDERS.

Seo. 210. That any member bank of the Federal reserve system m ay 

file application with the Comptroller of the Currency for permission 

to invest an amount not exceeding in the aggregate iO per centum of 

its paid in capital stock and surplus in the stock of one or more of the 

National Agricultural Credit Corporations, and upon approval of 

such application may purchase such stock. The Comptroller of the 

Currency shall have discretion to approve or reject such application 

in whole or in part.

TAXATION.

S e c . 211. That taxation by a State of the shares in National Agricultural Credit Corporations, or of dividends derived therefrom, or 

of the income of said corporations, or real estate owned by them, shall 

be such only as is or may be authorized by law in the case of national 

banking associations; and taxation by a State of the debentures or 

other obligations of such corporations shall not be at a higher rate 

than the rate applicable to other moneyed capital in the hands of 

individual citizens thereof.

DEPOSITS.

S ec. 212. That the moneys of National Agricultural Credit Corporations may be kept on deposit subject to check in any member 

bank o f the Federal reserve system.

c o n v e r s io n o f c o r p o r a t io n s.

Sec. 213. (a ) T hat any agricultural or live-stock financing corporation incorporated by special law o f any State or organized under 

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the general laws of any State and having an unimpaired capital 

sufficient to entitle it to become a National Agricultural Credit Corporation may, by the rote of the shareholders owning not less than 

51 per centum ox the capital stock of such corporation, with the approval of the Comptroller of the Currency, be converted into a National Agricultural Credit Corporation under this title, with any 

name approved by the Comptroller of the Currency: Provided, That 

the said conversion shall not be in contravention of the State law.

(b) In such case the articles of association and organization Certificate may be executed by a majority of the directors of the corporation, and the certificate shall declare that the owners of 51 per 

centum of the capital stock have authorized the directors to make 

such certificate and to change or convert the corporation into a National Agricultural Credit Corporation. A majority of the directors, alter executing the articles of association and the organization certificate, shall have power to execute all other papers and to 

do whatever may be required to make its organization perfect and 

complete as a National Agricultural Credit Corporation. The 

shares of any such corporation may continue to bie lor the same 

amount each as they Were before the conversion, and the directors 

may continue to be directors of the corporation nntil others are 

elected or appointed.

(c) When the Comptroller of the Currency has given to such corporation a certificate that the provisions of this title have been complied with, such corporation, and all its stockholders, owners, and 

employees, shall have the same ]>owers and privileges and shall be 

subject to the same duties, liabilities, and regulations, in. all respects*' 

as shall have been prescribed by this title for corporations, originally organized as National Agricultural Credit Corporations. .

CONSOLIDATION OF CORPORATIONS. "

Sec. 214. (a) That any two or more National Agricultural Credit 

Corporations, with the approval of the Comptroller of the Currency, may consolidate into one corporation under the charter of 

either or any of the existing corporations on such terms and conditions as may be lawfully agreed upon by a majority of the board of 

directors of each corporation proposing to consolidate, such agreement to be ratified and confirmed by the affirmative vote of the shareholders of each of. such corporations owning at least two-thirds of 

its capital stock outstanding, at a meeting to be held, on the call of 

tlie directors after publishing notice of the time, place, and object 

of the meeting for four consecijtive weeks in some newspaper published in the place where the said corporation is located, and if no 

newspaper is published in the place then in a paper published nearest thereto, and after sending such notice to each shareholder, of 

record by registered mail at least ten days prior,to said meeting: 

Provided, That the capital stock of such c< .solidated corporation 

shall not be less than $250,0P0 paid in if the corporations consolidated are organized to exercise tne powers covered by section 203, or 

less than $1,000,000 paid in if the corporations consolidated are those 

organized under section 207.- . 

* (b) When such consolidation shall have been effected and approved by the Comptroller of the Currency any shareholder of either

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of the corporations so consolidated who has not voted for such consolidation may give notice to the board of directors of the corporation in which" he is interested, within 20 days from the date of the 

certificate of approval of the Comptroller of the Currency, that he 

dissents from the plan of consolidation as adopted and approved, 

whereupon he shall be entitled to receive the value of the shares so 

held by him, to be ascertained by an appraisal made by a committee 

of three persons, one to be selected by the shareholder, one by the 

directors, and the third by the two so chosen: and in case the value 

so affixed shall not be satisfactory to the shareholder, he may within 

five days after being notified of the appraisal appeal to the Comptroller of the Currency, who shall cause a reappraisal to be made, 

which shall be final and binding:: and if said reappraisal shall exceed 

the value affixed by said committee, the corporation shall pay the expense of the reappraisal, otherwise the appellant shall pay said expense; and the value so ascertained and determined shall be deemed 

to be a debt due and be forthwith paid to said shareholder by said 

corporation, and the shares so paid shall be surrendered and after 

due notice sold at public auction within 30 days after the final appraisement provided for by this title.

(c) Where corporations consolidate under the provisions of this 

title, all of the rights, franchises, and interest of said corporations 

shall be consolidated in and to every species of property, personal 

and mixed, and choses in action thereto belonging, and shall be 

deemed to be transferred to and vested in the corporation into which 

it is consolidated without any deed or other transfer, and the said 

consolidated corporation shall hold and enjoy the same and all 

rights of property, franchises, and interest, in the same manner and 

to the same extent as they were held and enjoyed by the corporations 

so consolidated therewith.

INSOLVENCY, RECEIVERSHIP, AND LIQUIDATION.

Sec. 215. (a) That whenever any National Agricultural Credit 

Corporation shall be dissolved and its rights, privileges, and 

franchises declared forfeited as prescribed in the preceding section, 

or whenever any creditor of any such corporation shall have obtained a judgment against it in any court of record and made application accompanied by a certificate from the clerk of the court, stating that such judgment has been rendered and has remained unpaid 

for the space of 30 days or whenever the Comptroller of the Currency shall become satisfied of the insolvency of such corporation, he 

may, after due examination of its affairs in either case, appoint a 

receiver who shall proceed to wind up the affairs of such corporation. The receiver so appointed shall exercise the powers and be 

subject to the restrictions of receivers of national banks; and the 

Comptroller of the Currency shall have the same powers and duties 

in connection with the administration of such receivership as he has 

in reference to the receivership of national banks.

(b) Shareholders’ agents for shareholders of National Agricultural Credit Corporations may be appointed in the manner prescribed by section 3 of the Act of June 30, 1876, as amended, and 

shall have the same general powers and duties and be subject to the 

same restrictions as shareholders’ agents of a national bank.

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(c) Any National Agricultural Credit Corporation may go into 

liquidation and be closed by the vote of its shareholders owning twothirds of its stock. Whenever a vote is taken to go into liquidation it 

shall be the duty of the board of directors to cause notice of this 

fact to be certified under the seal of the corporation by its president 

or cashier to the Comptroller of the Currency and publication thereof 

to be made for a period of two months in a newspaper published in 

the city or town in which the corporation is located, or if no newspaper is there published, in the newspaper published nearest thereto, 

that the corporation is closing up its affairs and notifying the creditors to present their claims against the corporation for payment. All 

such claims shall be presented to and approved by a liquidating 

agent to be appointed by the board of directors of such corporation, 

with the approval of the Comptroller of the Currency, and the affairs 

of such corporation shall be liquidated by such agent and under 

the supervision of the Comptroller of the Currency.

PENALTY PROVISIONS.

S e c . 216. (a) That any officer, director, agent, or employee of a

National Agricultural Credit Corporation who embezzles, abstracts,

purloins, or willfully misapplies any of the moneys, funds, or credits

of such corporation, or who, without authority from the directors,

draws any order or bill of exchange, makes any acceptance, issues,

puts forth, or assigns any note, debenture, bond, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry

in any book, report, or statement of such corporation with intent in

any case to injure or defraud such corporation or any other company or person, or to deceive any officer of such corporation or

the Comptroller of the Currency, or any agent or examiner appointed

to examine the affairs of such corporation; and every receiver of

such corporation who with like intent to defraud or injure embezzles,

abstracts, purloins, or willfully misapplies any of the moneys, funds,

or assets of the corporation, and every person who with like intent

aids or abets any officer, director, agent, employee, or receiver in any

violation of this section shall be deemed guilty of a misdemeanor,

and upon conviction in any district court of the United States, shall

be fined not more than $5,000, or shall be imprisoned for not more

than five years, or both, at the discretion of the court.

(b) Whoever makes any statement, knowing it to be false, for the 

purpose of obtaining for himself or for any other person, firm, corporation, or association any advance, or extension or renewal of an

- advance, or any release or substitution of security, from a National

Agricultural Credit Corporation, or for the purpose of influencing

in any other way the action of such corporation, shall be punished

by a fine of not more than $10,000 or b}r imprisonment for not more

than five years, or both.

(c) WHoever willfully overvalues any property offered as security

for any such advance shall be punished by a fine of not more than

$5,000, or by imprisonment for not more than two years, or both.

(d) Any examiner appointed under this title who shall accept

a loan or gratuity from any organization examined by him, or from

any person connected with any such organization in any capacity, or

who shall disclose the names of borrowers to other than the proper

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officers of such organization, without first having obtained expressed

permission in writing from the Comptroller of the Currency or

from the board of directors of such organization, except when

ordered to do so by a court of competent jurisdiction or by direction

of the Congress of the United States or of either House thereof, or

any committee of Congress or of either House duly authorized,

shall be punished by a fine of not exceeding $5,000 or by imprisonment of not exceeding one year, or both, and may be fined a further sum equal to the money so loaned or gratuity given, and shall

forever thereafter be disqualified from holding office as an examiner

under the provisions of this title. No examiner while holding such

office shall perform any other service for compensation for any

bank or banking or loan association or for any person connected

therewith in any capacity.

(e) Whoever, being an officer, director, employee, agent or attorney of a National Agricultural Credit Corporation stipulates

for or receives or consents or agrees to receive any fee, commission,

gift, or thing of value from any person, firm, or corporation for

procuring or endeavoring to procure for such person, firm, or corporation, or for any other person, firm, or corporation any loan

from any such corporation or extension or renewal of loan or substitution of security, or the purchase or discount or acceptance of

any paper, note, draft, check, or bill of exchange by any such corporation, shall be deemed guilty of a misdemeanor and upon conviction shall be imprisoned for not more than one year or fined not

more than $5,000, or both.

(f) Any person who shall falsely make, forge, or counterfeit, or

cause or procure to be falsely made, forged, or counterfeited, or

willingly aid or assist in falsely makingj forging, or counterfeiting

any debentures, coupons, or other obligations in imitation of or purporting to be an imitation of the debentures, coupons, or other obligations issued by any National Agricultural Credit Corporation,

and any person who shall pass, utter, or publish or attempt to pass,

utter, or publish any false, forged, or Counterfeited debenture, coupon, and other obligation purporting to be issued by any such corporation Imowing the same to be falsely made, forged, or counterfeited, and any person who shall falsely alter or cause or procure to

be falsely altered, or shall willingly aid or assist in falsely altering

any such debenture, coupon, or other obligation, or who shall pass,

utter, or publish as true any falsely altered or spurious debenture,

coupon, or other obligation issued or purporting to have been issued

by any such corporation knowing the same to be falsely altered or

spurious shall be punished by a fine of not exceeding $5,000 or by

imprisonment not to exceed five years, or both.

(g) Any person who shall deceive, defraud, or impose upon or

who shall attempt to deceive, defraud, or impose upon any person,

partnership, corporation, or association by making any false pretense or representation concerning the character, issue, security,

contents, conditions, or terms of any debenture, coupon, or other

obligation issued under the terms of this title, shall be fined not

exceeding $500, or imprisoned not to exceed one year, or both.

(h) All corporations not organized under the provisions of this 

title are prohibited from using the words “ National Agricultural 

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22 (Pub. 503.1

lation of this prohibition shall subject the party charged therewith

to a civil* penalty of $50 for each day during which the violation

continues.

RESERVATION OF RIGHT TO AMEND.

S ec. 217. That the right to amend, alter, or repeal the provisions

of this title is hereby expressly reserved.

TITLE III.—AMENDMENTS TO FEDERAL FARM LOAN

ACT.

S ec. 301. That the second paragraph of section 3 of the Federal

Farm Loan Act is amended to read as follows:

“ Said Federal Farm Loan Board shall consist of seven members,

including the Secretary of the Treasury, who shall be a member and

chairman ex officio, and six members to be appointed by the President of the United States, by and with the advice and consent of the

Senate. Of the six members to be appointed by the President, not

more than three shall be appointed from one political party, and

all six of said members shall be citizens of the United States and

shall devote their entire time to the business of the Federal Farm

Loan Board; they shall receive an annual salary of $10,000 payable

monthly, together with actual necessary traveling expenses. One of

the additional members of the Federal Farm Loan Board, hereby

provided for, shall be appointed for a term expiring August 6, 1929,

and one for a term expiring August 6, 1931, and thereafter the

terms of all members of the Federal Farm Loan Board shall be as

in this section otherwise provided for.”

S e c . 302. That the eighth paragraph of section 3 of the Federal

Farm Loan Act is amended and divided into three paragraphs to

read as follows:

“ The salaries and expenses of the Federal Farm Loan Board and

farm loan registrars and examiners authorized under this section

shall, after June 30,1923, be paid by the Federal and joint-stock land

banks in proportion to their gross assets, as follows:

“ The Federal Farm Loan Board shall, prior to June 30, 1923, and

each six months thereafter, estimate the expenses and salaries'of the

Federal Farm Loan Board, its officers and employees, farm loan

registrars, deputy registrars, the examiners and reviewing appraisers,

and apportion the same among the Federal and joint-stock land

banks in proportion to their gross assets at the time of such apportionment and make an assessment upon each of such banks pursuant

to such apportionment, payable on the 1st of July or January next

ensuing. The funds collected pursuant to such assessments shall be

deposited with the Treasurer of the United States to be disbursed

in payment of such salaries and expenses on appropriations duly

made by Congress for such purpose.

“If any deficiency shall occur in such fund during the half-year 

period for which it was estimated,.the Federal Farm Loan Board 

shall have authority to make immediate assessment covering such 

deficiency against the Federal and joint-stock land banks upon the 

same basis as the original assessment. If at the end of the six 

months’ period there shall remain a surplus in such fund, it shall be

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deducted from the estimated expenses of the next ensuing six months' 

period when assessment is made for such period. Land bank appraisers shall receive such compensation as the Federal Farm Loan 

Board shall fix and shall be paid by the Federal land banks and the 

joint-stock land banks which they serve in such proportion and in 

such manner as the Federal Farm Loan Hoard shall order.”

S e c . 303. That the second paragraph of section 4 of the Federal 

Farm Loan Act is amended to read as follows:

“ The Federal Farm Loan Board shall establish in each Federal 

land bank district a Federal land bank, with its principal office 

located in such city within the district as said board shall designate. 

Each Federal lanct bank shall include in its title the name of the city 

in which it is located. Subject to the approval of the Federal Farm 

Loan Board, any Federal land bank may establish branches within 

the land bank district. Subject to the approval of the Federal Farm 

Loan Board and under such conditions as it may prescribe, the provisions of this Act are extended to the island of Porto Rico and the 

Territory of Alaska; and the Federal Farm Loan Board shall designate a Federal land bank which is hereby authorized to establish a 

branch bank in Porto Rico, and a Federal land bank which is hereby 

authorized to establish a branch bank in the Territory of Alaska. 

Loans made by each such branch bank shall not exceed the sum of 

$10,000 to any one borrower and shall be subject to the restrictions 

and provisions of this Act. except that each such bfanch bank may 

loan direct to borrowers, and subject to such regulations as the Federal Farm Loan Board may prescribe, the rate charged borrowers 

may be H per c entum in excess of the rate borne by the last preceding 

issue of farm loan bonds of the Federal land bank with which such 

branch bank is connected: Provided, That no loan shall be made in 

Porto Rico or Alaska by such branch bank for a longer term than 

20 years.”

S ec. 304. That the twentieth to twenty-fifth paragraphs, inclusive, of section 4 of the Federal Farm Loan Act are amended to read 

as follows:

“ The board of directors of every Federal land bank shall be selected as hereinafter specified and shall consist of seven members. 

Three of said directors shall be known as local directors and shall 

be chosen by and be representative of national farm-loan associations, and borrowers through agencies: three shall be known as district directors and shall be appointed by the Federal Farm Loan 

Board and represent the public interest. The term of office of local 

and district directors shall be three years.

“ Within 30 days from the date of passage of the Agricultural 

Credits Act of 1923 and thereafter, at least two months before each 

election, the Federal Farm Loan Board shall divide each land bank 

district into three divisions, as nearly equal as possible, according 

to number of borrowers and the voting strength of national farmloan associations and borrowers through agencies, and the Farm 

Loan Commissioner shall thereupon notify each association and 

agency in writing that an election is to be held for one local director 

from each of said divisions and requesting each association and 

agency to nominate one candidate for each division. Within ten 

days of receipt of such notice each national farm-loan association 

and borrower through agencies shall forward nominations of resiiPoB. 5034 23

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dents of their respective divisions for one director for such division

to said Farm Loan Commissioner. The Farm Loan Commissioner

shall then prepare a list of candidates for local directors, consisting

of the ten persons receiving the highest number of votes from national farm-loan associations and borrowers through agencies for

each division.

“At least one month before said election the Farm Loan Commissioner shall mail to each national farm-loan association and to each

borrower through agencies the list of candidates for their respective

divisions. The directors of ench national farm-loan association shall

cast the vote of said association for one of the candidates on said

list and shall forward said vote to the said Farm Loan Commissioner

within ten days after said list of candidates is received. In voting

under this section each association shall be entitled to cast a number

of votes equal to the total voting strength of the stockholders in

association meetings, and each borrower through agencies shall be

entitled to cast one vote for each share of stock held by him in the

Federal land bank not exceeding twenty shares, and shall forward

said vote to the said Farm Loan Commissioner within ten days after

said list of candidates is received. The candidate receiving the

highest number of votes in his division shall be declared elected as

local director of the Federal land bank district from his division. In

case of a tie, the Farm Loan Commissioner shall determine the

choice. The nominations from which the list of candidates is prepared, and the votes of the respective associations and borrower?

through agencies for such candidates, as counted, shall be tabulated

and preserved, subject to examination by any candidate, for at least

one year after the result of the election is announced.

. “ The Federal Farm Loan Board shall designate one of the district directors to serve until December 31, 1924, one to serve till

December 31, 1925, and one to serve till December 31, 1926. After

their first appointment each district director shall be appointed for

a term of three years. At the first regular meeting of the board of

directors of each Federal land bank the local directors shall designate one of their members to serve till December 31, 1924, one to

serve till December 31, 1925, and one to serve till December 31, 1926.

Thereafter each local director shall be chosen as hereinbefore provided and shall hold office for a term of three years. Any vacancies

that may occur in the board of directors shall be filled for the unexpired term in the manner provided herein for the original selection of such directors. At the same time that the associations and

borrowers through agencies nominate the candidates for the local

directors, each association and each borrower through agencies shall

also nominate one candidate for director at large for the entire district, and from the three persons having the greatest number of

votes for nominee for director at large, the Federal Farm Loan

Board shall select a director at large, whose term of office shall terminate on the 31st day of December, 1925, and every three years

thereafter. Such seventh director may be removed by the Federal

Farm Loan Board for neglect of duty, incapacity for the work, or

malfeasance in office, after charges duly preferred and a hearing

had thereon, and in such cases the associations of the district shall

in like manner nominate candidates for another director at large,

to fill the vacancy, for whom the Federal Farm Loan Board shall in

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same manner select a successor, but any person who is removed can

not be nominated to succeed himself. The board of directors thus

selected shall, upon qualification, immediately take over the management of each bank.

‘‘ Directors of Federal land banks shall have been, for at least two

years, residents of the district for which the3' are appointed or

elected, and a local director shall be a resident of his division when

elected. No district director of a Federal land bank shall, during

his continuance in office, act as an officer, director, or employee of any

other institution, association, or partnership engaged in banking or

in the business of making or selling land-mortgage loans.

“ Directors of the Federal land bank shall receive, in addition to

any compensation otherwise provided, a reasonable allowance for

necessary expenses in attending meetings of their boards, to be paid

by the respective Federal land banks. Any compensation that may

be provided by boards of directors of the Federal land banks for

directors, officers, or employees shall be subject to the approval of

the Federal Farm Loan Board.”

S e c . 305. That the fourth paragraph of section 7 of the Federal

Farm Loan Act is amended by adding thereto the following: “ No

such secretary-treasurer shall engage in the making of land mortgage

loans eligible at a Federal land bank through or for any other land

mortgage company or agency, and the making of any such loan by

any secretary-treasurer shall forthwith wrork a forfeiture of his

office.”

S e c . 306. That subdivision (d) of paragraph “ Fourth” of section

12 of the Federal Farm Loan Act is amended to read as follows:

“ (d) To liquidate indebtedness of the owner of the land mortgaged incurred for agricultural purposes, or incurred prior to January 1, 1922.”

S e c . 307. That paragraph “ Seventh ” o f section 12 o f the Federal

Farm Loan Act is amended to read as fo llo w s :

“ Seventh. The amount of loans to any one borrower shall in no

case exceed a maximum of $25,000, nor shall any one loan be for a

less sum than $100, but preference shall be given to applications for

loans of $10,000 and under.

S e c . 308. That section 21 of the Federal Farm Loan Act is

amended by adding at the end thereof twelve new paragraphs to

read as follows:

“ Whenever it shall appear desirable to issue consolidated bonds

of the twelve Federal land banks and to sell them through a common

selling agency, and the Federal land banks shall, by resolution,

consent to the same, the banks may issue and sell said bonds as

hereinafter provided.

“ Every bond so issued shall be signed by the Farm Loan Commissioner and attested by the secretary of the Federal Farm Loan

Board, and their signatures may be either written or engraved

thereon and shall recite in the face of the bond the fact that it is

the joint and several obligation of the twelve Federal land banks,

and shall in all respects be governed by the provisions of the Federal Farm Loan Act not inconsistent herewith.

“ The consolidated bonds issued under this provision shall be made

payable at any Federal land bank, and may be made payable at any

Federal reserve bank or banks designated in the face of the bond. *

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“ Each Federal land bank on whose behalf consolidated bonds

shall be issued under this provision shall in all respects be bound

by the act of the Farm Loan Commissioner and the secretary of the

federal reserve bank or banks designated in the face of the bond.

‘•Every Federal land bank, before participation in a consolidated

issue, as herein provided, .shall by appropriate action of its board

of directors, duly recorded in its minutes, obligate itself to become

liable on Federal farm loan bonds as provided in this section, and

be bound by the action of the Farm Luan Commisi'ioner and the

secretary of the Federal Farm Loan Hoard in executing the samp.

” Every farm loan bond issued hereunder shall contain on the

face thereof a certificate signed by the Farm Loan Commissioner to

the effect that it is issued under the authority of Title I of the

Federal Farm Loan Act. has the approval in form and issue of the

Federal Farm Loan Hoard, and is legal and regular in all respects;

that it is not taxable by National. State, municipal, or local authority: that it is issued against collateral security consisting of obligations of the United States Government, or indorsed first mortgages

on farm lands, at least equal in amount to the bonds issued; and

that all Federal land banks are liable for the payment of each bond.

** When any Federal land bank shall desire to participate in a

consolidated issue of farm loan bonds it shall make application to the

Federal Farm Loan Hoard for the approval on its behalf of such

issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and

no banks shall participate in such consolidated issue until such

application has been approved by the Federal Farm Loan Hoard.

Each bank shall pay when due. without notice, all bonds and coupons issued on its behalf hereunder.

“ If any Federal land bank shall fail to pay its proportion of interest or principal as herein prescribed, the Federal Farm Loan

Hoard shall immediately call upon the other Federal land banks for

the amount necessary to make said payment, the assessments to be

made in proportion to the capital stock of each, which assessments

shall be forthwith paid by said banks.

•* The presidents of the twelve Federal land banks shall constitute

the bond committee of the Federal land banks and shall select a

chairman from among their number. The vice president may art in

place of the president on the president's request or in case he fails to

act.

"When an issue of consolidated bonds is contemplated, the bond

committee shall determine the amount of such issue, the rate of interest which it is to bear, and the participation of the several banks

therein, and submit their recommendations to the Federal Farm

Loan Board for approval. When approved by the Federal Farm

Loan Board the bonds shall be executed by the Farm Loan Commissioner and the secretary of the Federal Farm Loan Board, as herein

provided.

••The expenses of the bond committee and of the sale of bonds 

shall be charged against the several land banks in proportion to 

their participation in the proceeds.

** The presidents of the Federal land banks shall receive no additional compensation for their services as members of the bond committee, but shall be paid necessary traveling expenses.”

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S ec. 309. That subdivisions (a) and (b) of'the eighth paragraph

of section 22 of the P'ederal Farm Loan Act are amended to read as

follows:

‘‘ (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.”

S ec. 310. That section 25 o f the Federal Farm Loan Act is

amended to read as follows:

“ S ec. 25. That if there shall be default under the terms of an}r

indorsed first mortgage held by a Federal land bank under the provisions of this title, the National Farm Loan Association through

which said mortgage was received by said Federal land bank shall

be notified of said default. Said association may thereupon be required, within 30 days after such notice, to make good such default,

either by payment of the amount unpaid thereon in cash or by the

substitution of an equal amount of Federal farm loan bonds, with all

unmatured coupons attached.”

S ec. 311. That section 29 of the Federal Farm Loan Act is

amended by adding at the end thereof a new paragraph to read as

follows:

“ Upon liquidation of any national farm loan association, the

stock m the Federal land bank held by such association shall be canceled and the Federal land bank shall thereupon issue to the borrowers through sucli association an amount of stock in the Federal

land bank equal to the amount of stock held by such borrowers in the

liquidated association, such stock to be held by the bank as collateral

to the loans of such borrowers and to be paid off and retired at par in

the same manner as stock held by borrowers in farm loan associations, and the Federal land bank shall pay to the borrowers holding

such stock the same dividends as are paid to national farm loan associations by such bank. The personal liability of the stockholders in

such liquidated association to the association shall survive such

liquidation and shall be vested in the bank in that district, which

may enforce the same as fully as the association could if in existence.”

TITLE IV.—AMENDMENTS TO THE FEDERAL RESERVE

ACT.

S ec. 401. That the ninth paragraph of section 9 of the Federal

Reserve Act is amended to read as follows:

“ No applying bank shall be admitted to membership in a Federal

reserve bank unless (a) it possesses a paid-up. unimpaired capital

sufficient to entitle it to become a national banking association in the

place where it is situated under the provisions of the National Bank

Act, or (b) it possesses a paid-up, unimpaired capital of at least 60

per centum of the amount sufficient to entitle it to become a national

banking association in the place where it is situated under the provisions of the National Bank Act and, under penalty of loss of membership complies with rules and regulations which the Federal Reserve Board shall prescribe filing the time within which and the 

method by which tne unimpaired capital of such bank shall be increased out of net income to equal the capital which would have been 

required if such bank had been admitted to membership under the

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provisions of clause (a) of this paragraph: Provided, That every 

such rule or regulation shall require the applying bank to set aside 

annually not less than 20 per centum of its net income of the preceding year as a fund exclusively applicable to such capital increase.”

Sec. 402. That the second paragraph of section 13 of the Federal 

Reserve Act is amended and divided into two parapraphs to read 

as follows:

“ Upon the indorsement of any of its member banks, which shall 

be deemed a waiver of demand, notice and protest by such bank as 

to its own indorsement exclusively, any Federal reserve bank may 

discount notes, drafts, and bills of exchange arising out of actual 

commercial transactions; that is, notes, drafts, and bills of exchange 

issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, 

for such purposes, the Federal Reserve Board to have the right to 

determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills 

of exchange, secured by staple agricultural products, or other goods, 

wares, or merchandise from being eligible for such discount, and 

the notes, drafts, and bills of exchange of factors issued as such 

making advances exclusively to producers of staple agricultural 

products in their raw state shall be eligible for such discount; but 

such definition shall not include notes, drafts, or bills covering 

merely investments or issued or drawn for the purpose of carrying or 

trading in stocks, bonds, or other investment securities, except bonds 

and notes of the Government of the United States. Notes, drafts, 

and bills admitted to discount under the terms of this paragraph 

must have a maturity at the time of discount of not more than 90 

days, exclusive of grace.

‘ Upon the indorsement of any of its member banks, which 

shall be deemed a waiver of demand, notice, and protest by such 

bank as to its own indorsement exclusively, and subject to regulations and limitations to be prescribed by the Federal Reserve Board, 

any Federal reserve bank may discount or purchase bills of exchange payable at sight or on demand which are drawn to finance 

the domestic shipment of nonperishable, readily marketable staple 

agricultural products and are secured by bills of lading or other 

shipping documents conveying or securing title to such staples: 

Provided, That all such bills of exchange shall be forwarded 

promptly for collection, and demand for payment shall be made 

with reasonable promptness after the arrival of such staples at 

their destination: Provided further, That no such bill shall in any 

event be held by or for the account of a Federal reserve bank for 

a period in excess of 90 days. In discounting such bills Federal 

reserve banks may compute the interest to be deducted on the 

basis of the estimated life of each bill and adjust the discount 

after payment of such bills to conform to the actual life thereof.” 

Sec. 403. That the fourth paragraph of section 13 of the Federal 

Reserve Act is amended to read as follows:

“ Any Federal reserve bank may discount acceptances of the kinds 

hereinafter described, which have a maturity at the time of discount 

of not more than 90 days1 sight, exclusive of days of grace, and

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which are indorsed by at least one member bank: Provided, That 

such acceptances if drawn for an agricultural purpose and secured 

at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable 

staples may be discounted with a maturity at the time of discount 

of not more than six months’ sight exclusive of days of grace.”

Se c . 404. That the Federal Reserve Act is amended b y adding 

at the end of section 13 a new section to read as follows:

“ S e c. 13a. Upon the indorsement of any of its member banks, 

which shall be deemed a waiver of demand., notice, and protest by 

such bank as to its own indorsement exclusively, any Federal reserve bank may, subject to regulations and limitations to be prescribed by the Federal Reserve Board, discount notes, drafts, and 

bills of exchange issued or drawn for an agricultural purpose, or 

based upon live stock, and having a maturity, at the time of discount, exclusive of days of grace, not exceeding nine months, and 

such notes, drafts, and bills of exchange may be offered as collateral 

security for the issuance of Federal reserve notes under the provisions of section 16 of this Act: Provided, That notes, drafts, and 

bills of exchange with'maturities in excess of six months shall not 

be eligible as a basis for the issuance of Federal reserve notes unless 

secured by warehouse receipts or other such negotiable documents 

conveying or securing title to readily marketable staple agricultural 

products or by chattel mortgage upon live stock which is being 

fattened for market.

“ That any Federal reserve bank may, subject to regulations and 

limitations to be prescribed by the Federal Reserve Board, rediscount such notes, drafts, and bills for any Federal Intermediate 

f Credit Bank, except that no Federal reserve bank shall rediscount 

for a Federal Intermediate Credit Bank any such note or obligation 

which bears the indorsement of a nonmember State bank or trust 

company which is eligible for membership in the Federal reserve 

system, in accordance with section 9 of this Act.

“Any Federal reserve bank may also buy and sell debentures and 

other such obligations issued by a Federal Intermediate Credit Bank 

or by a National Agricultural Credit Corporation, but only to the 

same*extent as and subject to the same limitations as those upon which 

it may buy and sell bonds issued under Title I of the Federal Farm 

Loan Act.

“ Notes, drafts, bills of exchange or acceptances issued or drawn by 

cooperative marketing associations composed of producers of agricultural products shall be deemed to have been issued or drawn for an 

agricultural purpose, within the meaning of this section, if the proceeds thereof have been or are to be advanced by such association to 

any members thereof for an agricultural purpose, or have been or are 

to be used by such association in making payments to any members 

thereof on account of agricultural products delivered by such members to the association, or if such proceeds have been or are to be used 

by such association to meet expenditures incurred or to be incurred 

by the association in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product 

handled by such association for any of its members: Provided, That 

the express enumeration in this paragraph of certain classes of 

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count shall not be construed as rendering ineligible any other class 

of paper of such associations which is now eligible for rediscount.

“ The Federal Reserve Board may, by regulation, limit to a percentage of the assets of a Federal reserve bank the amount of notes, 

drafts, acceptances, or bills having a maturity in excess of three 

mo.nths, but not exceeding six months, exclusive of days of grace, 

which may be discounted by such bank, and the amount of notes, 

drafts, bills, or acceptances having a maturity in excess of six 

months, but not exceeding nine months, which may be rediscounted 

by such bank.”

Sec. 405. That section 14 of the Federal Reserve Act is amended 

by adding at the end thereof a new paragraph to read as follows: 

“ (f) To purchase and sell in the open market, either from or to 

domestic banks, firms, corporations, or individuals, acceptances of 

Federal Intermediate Credit Banks and of National Agricultural 

Credit Corporations, whenever the Federal Reserve Board shall 

declare that the public interest so requires.”

S e c . 406. That section 15 of the Federal Reserve Act is amended by 

adding at the end thereof a new paragraph to read as follows :

“ The Federal reserve banks are hereby authorized to act as depositories for and fiscal agents of any National Agricultural Credit 

Corporation or Federal Intermediate Credit Bank.”

Se c . 407. That the Act entitled “An act to amend the act approved 

December 23, 1013, known as the Federal reserve act,” approved 

April 13, 1920, is repealed.

TITLE V.—MISCELLANEOUS PROVISIONS.

AMENDMENTS TO WAR FINANCE CORPORATION ACT.

Sec. 501. That the time during which the War Finance Corporation may make advances and purchase notes, drafts, bills of exchange, 

or other securities under the terms of sections 21,22, 23, and 24 of the 

War Finance Corporation Act, as amended, is further extended up 

to and including February 29, 1924: Provided, That if any application for an advance or for the purchase by the War Finance Corporation of notes, drafts, bills of exchange, or other securities is 

received at the office of the corporation in the District of Columbia 

on or before February 2i). 1924, such application may be acted upon 

and approved, and the advance may be made or the notes, drafts, or 

other securities purchased, at any time prior to March 31,1924.

Se c . 502. That the second paragraph of section 12 of Title I of the 

War Finance Corporation Act, as amended, is further amended to 

read as follows:

“ The power of the corporation to issue notes or bonds may be 

exercised at any time prior to January 31,1927, but no such bonds or 

notes shall mature later than June 30, 1927.”

S ec. 503 (a) That the third paragraph of section 15 of Title I of 

such Act. as amended, is amended by striking out at the beginning of 

such paragraph the words “ beginning July 1,1923,” and inserting in 

lieu thereof the words “ beginning April 1, 1924.”

(b) The fourth paragraph of such section, as amended, is amended 

by striking out at the beginning of such paragraph the words “ After

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Julv 1,1923,” and inserting in lieu thereof the words “After April 1, 

1924.”

INDEBTEDNESS OF NATIONAL BANKS.

Se c . 504. That section 502 of the Revised Statutes, as amended, is 

amended by adding at the end thereof a new paragraph to read as 

follows:

“ Eighth. Liabilities incurred under the provisions of section 202 

of the Federal Farm Loan Act, approved July 1 7 ,191G, as amended.

JOINT CONGRESSIONAL COMMITTEE.

Se c . 506. (a) That a joint committee be appointed, to consist of 

three Members of the Banking and Currencey Committee of the 

Senate, to be appointed by the President thereof, and five Members of 

the Banking and Currency Committee of the House of Representatives, to be appointed by the Speaker thereof. Vacancies occurring 

in the membership of the committee shall be filled in the same manner as the original appointments.

(b) The joint committee is authorized to inquire into the effect of 

the present limited membership of State banks and trust companies 

in the Federal reserve system upon financial conditions in the agricultural sections of the United States; the reasons which actuate 

eligible State banks and trust companies in failing to Income members of the Federal reserve system; what administrative measures 

have been taken and are being taken to increase such membership; 

and whether or not any change should be made in existing law, or 

in rules and regulations of the Federal Reserve Board, or in methods 

of administration, to bring about in the agricultural districts a 

larger membership of such banks or trust companies in the Federal 

reserve system.

(c) The committee is authorized to sit at any time during the sessions or recesses of the Congress, to conduct its hearings at Washington or at any other place in the United States, to send for persons, 

books and papers, to take testimony, to administer oaths, and to 

employ experts deemed necessary by such committee, a clerk, and a 

stenographer to report such hearings as may be had in connection 

with any subject which mav he before said committee, such stenographer’s services to he rendered at a cost not exceeding $1.25 per 

printed page. The expenses of such committee shall be paid out of 

the contingent funds of the Senate and House of Representatives 

in proportion to the membership of such committee from each House.

(d) The committee shall from time to time report to both the Senate and the House of Representatives the results of its inquiries, 

together with its recommendations, ami may prepare and submit 

bills or resolutions embodying such recommendations, and the final 

report of said committee shall be submitted not later than January 

31. 1924.

SEPARABILITY PROVISION.

S ec. 507. That i f any clause, sentence, paragraph, o r part o f this* 

A ct shall fo r any reason be adjudged by any court o f competent 

jurisdiction to be invalid, such judgm ent shall not affect, im pair,

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32 [Pub. 503-1

or invalidate the remainder of this Act, but shall be confined in its

operation to the clause, sentence, paragraph, or part thereof directly

involved in the controversy in which such judgment is rendered.

DEFINITIONS.

S ec. 508. That when used in this Act, the term “ Federal Farm

Loan Act” means the Federal Farm Loan Act approved July 17,

1916, as amended, and the term “ Federal Reserve Act” means the

Federal Reserve Act approved December 23, 1913, as amended.

SHOKT TITLE.

S ec. 509. That this Act may be cited as the “ Agricultural Credits

Act of 1923.”

And the Senate agree to the same.

That the Senate recede from its disagreement to the amendment of

the House to the title of the bill, and agree to the same.

Approved, March 4, 1923.

Digitized for FRASER 

http://fraser.stlouisfed.org/ 

Federal Reserve Bank of St. Louis