70 ST AT. 3 PUBLIC LAW 809-JULY 26, 1956 659 

Public Law 809 CHAPTER 741 

AN ACT July 26, 1956 

To merge production credit corporations in Federal intermediate credit banks; [H. R. 10285.1 

to provide for retirement of Government capital in Federal intermediate credit 

banks; to provide for supervision of production credit associations; and for 

other purposes. 

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

United States of America in Congress assembled^ That this Act may ^^^g^f, C'**"* ^^^^ 

be cited as the "Farm Credit Act of 1956". 

DECLARATION OF POLICY 

SEC. 2. It is declared to be the policy of the Congress to continue to 

provide agriculture with a sound, dependable, and effective source of 

credit; to promote the efficiency of the farm credit system by merging 

production credit corporations in Federal intermediate credit banks 

and to facilitate increased farmer participation in the management, 

control, and ownership of the merged banks and retirement of Government capital therein; to encourage and promote the continued growth 

and development of the production credit associations as self-supporting cooperative lending institutions operating on a sound credit basis 

with maximum local authority to determine credit needs and loan 

policies consistent with the maintenance of a national production 

credit system; and to continue to provide other financing institutions 

making loans to farmers and ranchers with the ri^ht to borrow from 

and rediscount with such merged banks on a basis comparable with 

the production credit associations regardless of the ownership of such 

banks. The provisions of this Act shall be construed in keeping with 

this declaration of policy. 

TITLE I—PRODUCTION CREDIT SYSTEM 

SEC. 101. MERGER OF PRODUCTION CREDIT CORPORATIONS IN FEDERAL 

INTERMEDIATE CREDIT BANKS—(a) TRANSFER OF ASSETS.—The production credit corporation in each farm credit district is hereby merged 

in the Federal intermediate credit bank of the district and all assets, 

funds, contracts, property, and records belonging to such corporation, 

except stock in production credit associations, are hereby transferred 

to and vested in such bank. All obligations and liabilities of the production credit corporation shall be assumed by the Federal intermediate credit bank of the district. Stock held by each production 

credit corporation in production credit associations is transferred to 

the Governor of the Farm Credit Administration and the Governor 

shall cancel an equal par amount of stock of the corporation. 

(b) SERVICES TO AND SUPERVISION OF PRODUCTION CREDIT ASSOCIATIONS.—In order to carry out the declared policy of this Act with 

respect to the production credit associations, the Farm Credit Admin 

istration shall, by appropriate provisions in the charter and bylaws, 

or otherwise, provide for such organization and assignment of functions within the Federal intermediate credit banks as will assure 

proper supervision of and assistance to the production credit associations in a manner which will enable them to make sound credit available to farmers and ranchers. The income derived from the surplus 

transferred from the production credit corporation to the Federal 

intermediate credit bank of the district shall be used to pay expenses 

of the bank in providing such supervision and assistance, and expenses 

in excess of such income may be paid out of other resources of the 

bank. 
660 PUBLIC LAW 809-JULY 26, 1956 [70 STAT . 

(c) OFFICERS AND EMPLOYEES.—Notwithstanding any other provision of law, the employment of the officers and employees of each Federal intermediate credit bank and each production credit corporation 

is terminated on the effective date of this Act and the board of directors 

of the Federal intermediate credit bank shall, not later than sixty days 

prior to the effective date of this Act, take all necessary action to reemploy as of such effective date such of the officers and employees so terminated in such capacities as the board determines they are qualified 

and needed to carry out the functions, powers, and duties of the Federal intermediate credit bank. Such reemployment shall be subject to 

the approval of the Farm Credit Administration. 

12 us*c loil' SEC. 102. Section 205 of the Federal Farm Loan Act, as amended, 

is amended to read as follows: 

"CAPITAL STOCK 

"SEC. 205. (a) CLASSES OF STOCK; OWNERSHIP; DIVIDENDS; AND 

RETIREMENT OF STOCK.—Each Federal intermediate credit bank is 

authorized to issue class A and class B stock as follows: 

"(1) Class A stock shall have a par value of $100 per share and 

shall be issued to and held by the Governor of the Farm Credit Administration on behalf of the United States. Stock of each Federal intermediate credit bank held by the Secretary of the Treasury shall be 

transferred to the Governor who shall exchange such stock for an equal 

amount of class A stock of such bank. The Governor is authorized 

thereupon to reallocate the investment of the United States in such 

banks m such manner as he determines necessary to meet the needs 

of the respective banks. Any transfers of capital funds required as a 

result of such reallocation shall be made in four equal installments, 

the first of which shall be made on January 1,1957, and one of which 

shall be made on the first day of each of the next succeeding three 

calendar years. Upon each such transfer of capital funds the Governor shall require an appropriate adjustment in the class A stock 

of each such bank. Stock of each production credit corporation held 

by the Governor (less the amount canceled pursuant to section 101 of 

the Farm Credit Act of 1956) shall be exchanged for an equal par 

amount of class A stock of the Federal intermediate credit bank in 

which such corporation is merged pursuant to section 101 of such Act. 

No dividends shall be paid on class A stock. Annually at the end of 

its fiscal year each such bank shall determine the amount of its class A 

stock which shall be retired. Whenever the total of the capital stock, 

participation certificates, surplus, and reserves of the bank is more than 

one-sixth of the highest month-end balance of debentures and other 

obligations issued by or for the bank, outstanding during the immediately preceding five years, the minimum amount of class A stock to be 

retired shall be the total amount of class B stock and participation 

certificates issued for that year. All class A stock shall be retired at 

par. The proceeds of such class A stock retirements of each bank 

shall be paid into the Treasury as miscellaneous receipts until there is 

so paid a sum equal to $30,000,000 plus the amount of class A stock 

of the bank issued in exchange for stock of the production credit corporation. The proceeds of any further such stock retirements shall 

be paid into the revolving fund established by section 5 (e) of the 

48 Stat. 348. Farm Credit Act of 1933, as amended. The Governor of the Farm 

Credit Administration is authorized to purchase from time to time 

class A stock in any bank in such amount as he determines is needed 

to meet the credit needs of the bank and such revolving fund shall 

continue to be available for such purchases as provided in said section 

5 (e). The Governor may at any time require the bank to retire such 

12 us e ll31i. 
70 STAT. ] PUBLIC LAW 809-JULY 26, 1956 

class A stock if, in his judgment, the bank has resources available 

therefor, and the proceeds of such retirements shall be returned to 

such revolving fund. 

"(2) Class B stock shall have a par value of $5 per share and may 

be issued only to production credit associations in series and amounts 

approved by the Farm Credit Administration. Such stock shall be 

issued only at par and may be transferred to another production 

credit association with the approval of the issuing bank. Whenever 

a bank has no class A stock outstanding it may pay like dividends on 

class B stock and participation certificates in an amount not to exceed 

5 per centum in any year if declared by the board of directors. Dividends on class B stock and participation certificates shall not be cumulative. Within sixty days after the effective date of the Farm Credit 

Act of 1956, the production credit associations shall subscribe to class 

B stock in the banks in an aggregate amount equal to 15 per centum 

of the total amount of class A stock in all banks. Such required 

amount of subscriptions shall be allotted among the several districts in 

the proportion that the average amount of the bank's loans to and 

discounts for the production credit associations of the district, outstanding during the immediately preceding five fiscal years, is of the 

average of such loans and discounts of all banks outstanding during 

such five-year period. The amount so allotted to each district shall 

be further allotted to each production credit association on the basis 

of the proportion that its average indebtedness (loans and discounts) 

to the bank during the immediately preceding five fiscal years is of 

the average of such indebtedness of all production credit associations 

to the bank during such five-year period. Each production credit 

association shall subscribe to class B stock in the bank of the district 

in the amount so allotted to it. One-third of the purchase price of 

such stock subscription shall be paid at the time of such subscription, 

one-third shall be paid within one year after the effective date of said 

Act, and the balance shall be paid within two years after such effective date. Such class B stock shall be issued as payments therefor are 

made. Any production credit association chartered after the effective 

date of the Farm Credit Act of 1956 shall thereupon purchase class B 

stock in the bank in the amount of $5,000, and such amount shall be 

adjusted at the end of five years thereafter to an amount determined 

by applying to its average indebtedness to the bank during such fiveyear period the same percentage as the percentage which the initial 

subscriptions of other production credit associations was of their 

indebtedness, as provided in this subsection: Provided^ That this provision shall not apply to any association owning stock in the bank in 

such required amount as a result of merger, consolidation, or reorganization of one or more associations. After all class A stock has been 

retired, the bank may retire class B stock at par and participation 

certificates at a face amount under policies established by the Farm 

Credit Administration. Class B stock and participation certificates 

shall be retired without preference and in such manner that the oldest 

outstanding stock or certificates at any given time will be retired first. 

In case of liquidation or dissolution of any production credit association or other financing institution, the stock or participation certificates of the bank owned by such association or institution may be 

retired by the bank at the fair book value thereof, not exceeding par 

or face amount, as the case may be. 

"(b) LIEN ON STOCK AND PARTICIPATION CERTIFICATES.—Each Federal intermediate credit bank shall have a first lien on all stock in the 

bank owned by each production credit association and on all participation certificates owned by other financing institutions as additional 

collateral for any indebtedness of the holders thereof to the bank: 
662 PUBLIC LAW 809-JULY 26, 1966 [70 STAT . 

Provided^ That the bank shall make no loan or advance on the security 

of its own stock or participation certificates. In any case where the 

debt of a production credit association or other financing institution is 

in default, the bank may retire and cancel all or a part of the stock of 

the bank held by the association or of the participation certificates held 

by the other financing institution at the fair book value thereof, not 

exceeding par or face amount, as the case may be, in total or partial 

liquidation of the debt." 

i2®u^sc'1"6 2 ^^^- ^^^- Section 206 of the Federal Farm Loan Act, as amended, 

1072. * is hereby amended to read as follows: 

"SEC. 206. (a) ANNUAL APPLICATION.—At the end of its fiscal year, 

each Federal intermediate credit bank shall determine the amount of 

its net earnings after paying or providing for all operating expenses 

(including reasonable valuation reserves and losses in excess of any 

such applicable reserves) and shall apply such net earnings as follows: 

(1) To the restoration of the amount of the impairment, if any, of 

capital stock and participation certificates, as determined by its board 

of directors; (2) to the restoration of the amount of the impairment, 

if any, of the surplus account established by this subsection, as determined by its board of directors; (3) 25 per centum of any remaining earnings shall be used to create and maintain a reserve account 

equal to 25 per centum of the outstanding capital stock and participation certificates of the bank; (4) if said bank shall have outstanding 

capital stock held by the United States during the whole or any part 

of its fiscal year, it shall next pay to the United States as a franchise 

tax, a sum equal to 25 per centum of its earnings then remaining, not 

exceeding, however, a rate of return on such Government capital calculated at a rate equal to the computed average annual rate of interest 

on all public issues of public debt obligations of the United States 

issued during the fiscal year of the United States Treasury ending next 

before such tax is due, as certified to the Farm Credit Administration 

by the Secretary of the Treasury; (5) dividends on class B stock and 

participation certificates may be declared as provided in section 205 

(a) of this Act; and (6) any remaining net earnings shall be distributed as patronage refunds as provided in subsection (b) of this section. 

Notwithstanding the provisions of item (3) of this subsection, if at 

the end of any fiscal year the sum of the surplus and the reserve account 

of any bank is less than its outstanding capital stock and participation 

certificates, the bank shall continue to apply such 25 per centum of 

its net earnings to the reserve account until the sum of the surplus and 

the reserve account is equal to its outstanding capital stock and participation certificates. Each bank shall, on the effective date of the 

Farm Credit Act of 1956, establish a surplus account consisting of 

its earned surplus account, its reserve for contingencies, and the surplus 

of the production credit corporation transferred to the bank. No part 

of such surplus of any bank shall be distributed as patronage refunds 

or as dividends. In the event of a net loss in any fiscal year after providing for all operating expenses (including reasonable valuation reserves and losses in excess of any such applicable reserves), such loss 

shall be absorbed by: first, charges to the reserve account; second, 

charges to surplus other than that transferred from the production 

credit corporation of the district; third, charges to surplus transferred from the production credit corporation of the district; fourth, 

the impairment of class B stock and participation certificates; and 

fifth, the impairment of class A stock. 
70 STAT. ] PUBLIC LAW 809-JULY 26, 1956 663 

" (b) PATRONAGE REFUNDS.—Whenever at the end of its fiscal year 

a Federal intermediate credit bank has class A stock outstanding, 

patronage refunds declared for that year shall be paid in class B 

stock to production credit associations and in participation certificates 

to other financing institutions borrowing from or rediscounting with 

the bank during the fiscal year for which such refunds are declared. 

The recipients of such patronage refunds shall not be subject to Federal income taxes thereon. Whenever at the end of its fiscal year 

a Federal intermediate credit bank has no class A stock outstanding, 

patronage refunds declared for that year may be paid in such class 

B stock and participation certificates or in cash as determined by the 

bank. All patronage refunds shall be paid in the proportion that 

the amount of interest earned hj the bank on its loans to and discounts for each production credit association or other financing institution bears to the total interest earned by the bank on all such 

loans and discounts outstanding during the fiscal year. Each participation certificate issued in payment of patronage refunds shall be 

in multiples of $5 and shall state on its face the rights, privileges, and 

conditions applicable thereto. Patronage refunds shall not be paid 

to any other Federal intermediate credit bank, or to any Federal land 

bank or bank for cooperatives. 

"(c) DISTRIBUTION OF ASSETS ON LIQUIDATION OR DISSOLUTION.—In 

the case of liquidation or dissolution of any Federal intermediate 

credit bank, after payment or retirement, as the case may be, first, 

of all liabilities; second, of all class A stock at par; third, of all class 

B stock at par and all participation certificates at face amount; any 

remaining assets of the bank shall be distributed as provided in this 

subsection. Any of the surplus established pursuant to subsection (a) 

of this section (excluding that transferred from the production credit 

corporation of the district) which the Farm Credit Administration 

determines was contributed by financing institutions, other than the 

production credit associations, rediscounting with or borrowing from 

the bank on the effective date of the Farm Credit Act of 1956 shall 

be paid to such institutions, or their successors in interest as determined 

by the Farm Credit Administration, and the remaining portion of 

such surplus (including that transferred from the production credit 

corporation of the district) shall be paid to the holders of class A 

and class B stock pro rata. The contribution of each such financing 

institution under the preceding sentence shall be computed on the basis 

of the ratio of its patronage to the total patronage of the bank from 

the date of organization of the bank to the effective date of the Farm 

Credit Act of 1956. Any assets of the bank then remaining shall be 

distributed to the holders of class B stock and the holders of participation certificates pro rata." 

SEC. 104. (a) Section 201 (b) of the Federal Farm Loan Act, as 

amended, is hereby amended by adding at the end thereof the following sentence: "The directors shall have power, subject to the approval 

of the Farm Credit Administration, to adopt such bylaws as may be 

necessary for the conduct of the business of the banks." 

(b) Section 202 (a) of the Federal Farm Loan Act, as amended, is 

hereby amended to read as follows: 

"SEC. 202. (a) The Federal intermediate credit banks, when 

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

restrictions, limitations, and conditions contained in this Act or as 

may be prescribed by the Farm Credit Administration not inconsistent with the provisions of this Act— 

"(1) to discount for, or purchase from, any production credit 

association organized under the Farm Credit Act of 1933, as 

amended, with its endorsement, any note, draft, or other such 

Fed. intermediate! 

credit banks. 

42 Stat. 1454. 

12 us e 1022. 

Bylaws. 

12 us e 1031. 

Powers. 
664 PUBLIC LAW 809-JULY 26, 1956 [70 STAT, 

obligation presented by such association; and to make loans and 

advances to any such association secured by such collateral as 

may be approved by the Governor of the Farm Credit Administration ; 

"(2) to discount for, or purchase from, any national bank, 

State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, credit 

union, and any association of agricultural producers engaged 

in the making of loans to farmers and ranchers, with its endorsement, any note, draft, or other such obligation the proceeds of 

which have been advanced or used in the first instance for any 

agricultural purpose, including the breeding, raising, fattening, 

or marketing of livestock; and to make loans and advances to 

any such financing institution secured by such collateral as may 

be approved by the Governor of the Farm Credit Administration: 

Provided^ That no such loan or advance shall be made upon the 

security of collateral other than notes or other such obligations 

of farmers and ranchers eligible for discount or purchase under 

the provisions of this section, unless such loan or advance is made 

to enable the financing institution to make or carry loans for 

any agricultural purpose; and 

" (3) to make loans to and discount paper for any other Federal 

intermediate credit bank, any Federal land bank, or any bank 

i*^u*sc^^M3i ^^^ cooperatives organized under the Farm Credit Act of 1933, 

note. as amended, all upon terms and at rates of interest or discount 

approved by the Farm Credit Administration." 

12 use fo33. (c) Section 202 (c) of the Federal Farm Loan Act, as amended, 

is amended by changing the word "three" to the word "five". 

12 use \olV. \^) Section 204 (a) of the Federal Farm Loan Act, as amended, 

is amended to read as follows: 

cowirrate8°' '^^ "SEC. 204. (a) Loans and discounts by any Federal intermediate 

credit bank shall bear such rates of interest or discount as the board 

of directors of the bank shall from time to time determine with the 

{approval of the Farm Credit Administration, but the rates charged 

financing institutions other than production credit associations shall 

be the same as those charged production credit associations." 

12 use* 78 f.' (®) Section 13 of the Federal Farm Loan Act, as amended, is hereby 

amended by inserting in paragraph "Seventeenth", after the words 

"Federal land banks , a comma and the words "to Federal intermediate credit banks, or to banks for cooperatives organized under the 

^12 us e 113 1 Farm Credit Act of 1933, as amended,". 

49*Stat. 315. (f) Sectiou 203 of the Federal Farm Loan Act, as amended, is 

12 use 1041. amended (i) by inserting in subsection (a) thereof, after the words 

"outstanding consolidated debentures" the words "or other similar 

1045."^^ ^°^*' obligations"; and (ii) by inserting in subsections (d) and (e) thereof, 

after the word "debentures" wherever used therein, except in the last 

sentence of subsection (d), the words "or other similar obligations". 

I2^U*SVM3I, SEC. 105. (a) Section 2 of the Farm Credit Act of 1933, as amended, 

1134. ' is amended to read as follows: 

ope'rati'J^.."' *'*** "SEO. 2. The Govemor of the Farm Credit Administration, hereinafter in this Act referred to as the 'Governor', is authorized and 

directed to organize and charter twelve banks to be known as 'banks 

for cooperatives'. One such bank shall be established in each city in 

which there is located a Federal land bank. The members of the several farm credit boards of the farm credit districts provided for in 

12 use' 640*' section 5 of the Farm Credit Act of 1937, as amended, shall be ex 

officio the directors of the respective banks for cooperatives. Such 

directors shall have power, subject to the approval of the Governor, 

to employ and fix the compensation of such officers and employees of 
70 STAT. ] PUBLIC LAW 809-JXJLY 26, 1956 

such banks as may be necessary to carry out the powers and duties 

conferred upon such banks under this Act." 

(b) Section 3 of the Farm Credit Act of 1933 is amended by striking 

from the first sentence the words "the production credit corporations 

and" and by striking from the second sentence the words "corporations and". 

(c) Section 4 of the Farm Credit Act of 1933 is hereby repealed. 

(d) Section 5 of the Farm Credit Act of 1933, as amended, is 

amended (1) by changing "$120,000,000" in subsection (a) thereof to 

"$60,000,000"; (2) by striking from subsection (b) thereof the words 

"the production credit corporations and"; (3) by changing "$40,000,-

000" m subsection (e) thereof to "$70,000,000"; and (4) by striking 

from subsection (e) thereof the words "and/or paid-in surplus". 

(e) Section 6 of the Farm Credit Act of 1933, as amended, is 

amended to read as follows: 

48 Stat. 257. 

12 us e 1131a, 

1134a. 

12 us e 1131b. 

Revolving iUnd!. 

48 Stat. 258, 348. 

12 us e 11311. 

48 Stat. 259. 

12 us e 1131c. 

"INVESTMENT BY GOVERNOR IN STOCK OF PRODUCTION CREDIT 

ASSOCIATIONS 

"SEC. 6. The Governor may purchase class A stock of any production 

credit association in such amounts as he determines are required to 

meet the credit needs of farmers in the area served by such association. 

Payments for such stock purchased by the Governor shall be made 

out of the revolving fund authorized by section 5 (a) of this Act. 

The Governor may at any time require any production credit association to retire and cancel any class A stock held by him in such association if, in his judgment, the association has resources available 

therefor, and the proceeds of such stock retirements shall be paid into 

such revolving fund." 

(f) Section 20 of the Farm Credit Act of 1933 is amended by changing the fourth sentence to read as follows: "Such articles shall be signed 

by the individuals uniting to form the association and a copy thereof 

shall be furnished to the Governor." 

(g) Section 21 of the Farm Credit Act of 1933, as amended, is 

amended (1) by striking from the first sentence the words "production 

credit corporations" and substituting in lieu thereof the words "the 

Governor"; and (2) by deleting the last sentence thereof. 

(h) Section 22 of the Farm Credit Act of 1933, as amended, is 

amended by striking out the words "production credit corporation", 

wherever they appear therein, and substituting in lieu thereof "Federal 

intermediate credit bank". 

(i) Section 23 of the Farm Credit Act of 1933, as amended, is 

amended (1) by changing the first sentence to read as follows: "Each 

production credit association shall, under such rules and regulations 

as may be prescribed by the farm credit board of the district with 

the approval of the Farm Credit Administration, invest its funds 

and make loans to farmers for general agricultural purposes and 

other requirements of the borrowers."; (2) by deleting the second 

sentence; and (3) by striking from the third sentence the word "corporation" and inserting in lieu thereof the words "Federal intermediate 

credit bank". 

(j) Section 34 of the Farm Credit Act of 1933, as amended, is 

hereby amended by adding before the semicolon at the end of "(b) " 

the words "or to Federal land banks or Federal intermediate credit 

banks". 

(k) Section 41 of the Farm Credit Act of 1933, as amended, is 

hereby amended by adding before the semicolon at the end of "(b) " 

the words "or to Federal land banks or Federal intermediate credit 

banks". 

Suprm. 

48 Stat. 260. 

12 us e 1131d. 

48 Stat. 260. 

12 us e 1131e. 

48 Stat. 261. 

12 us e 1131f. 

4 8 Stat. 261. 

12 us e 1131g, 

49 Stat. 317. 

12 us e 1134J. 

49 Stat. 317. 

12 us e 1134c. 
666 PUBLIC LAW 809-JULY 26, 1956 [TOST A T . 

48 Stat. 266. 

12 us e 1138. 

48 Stat. 267. 

12 us e 1138a. 

48 Stat. 267. 

12 us e 1138b. 

48 Stat. 267. 

12 us e 1138c. 

48 Stat. 269. 

12 us e 1138e. 

48 Stat. 1263. 

12 us e 1131g-l. 

67 Stat. 397, 

12 us e 640d. 

SO Stat. 705. 

12 us e 640h. 

50 Stat. 706. 

12 us e 640/. 

67 Stat. 394. 

12 us e 636g. 

67 Stat. 399. 

12 us e 1131« 

(1) Section 60 of the Farm Credit Act of 1933, as amended, is 

amended (1) by striking from the first sentence the words "the production credit corporations,"; (2) by striking from the second sentence the 

words "association, or corporation" and substituting in lieu thereof 

the words "or association"; and (3) by striking from the third sentence the words "production credit corporation or", "or corporation", 

and "corporation or", wherever they appear therein. 

(m) Section 61 of the Farm Credit Act of 1933 is amended (1) by 

striking from the first sentence the words "production credit corporation,"; and (2) by striking from the second and third sentences the 

words "association, or corporation", wherever they appear therein, 

and substituting in lieu thereof the words "or association . 

(n) Section 62 of the Farm Credit Act of 1933j as amended, is 

amended by striking out the words "production credit corporations,". 

(o) Section 63 of the Farm Credit Act of 1933, as amended, is 

amended (1) by striking from the first sentence the words "the production credit corporations,"; (2) by striking from the first and 

second sentences the words "associations, or corporations" and "associations, and corporations," and substituting in lieu thereof, the words 

"or associations" and "and associations,", respectively; and (3) by 

changing the last sentence to read as follows: "The exemption provided herein shall not apply with respect to any production credit 

association or its property or income after the class A stock held in 

it by the Governor has been retired, or with respect to any bank for 

cooperatives or its property or income after the stock held in it by the 

United States has been retired." 

(p) Section 65 of the Farm Credit Act of 1933, as amended, is 

amended (1) by striking out the words "production credit corporation,"; and (2) by striking out the words "association or corporation", 

wherever they appear therein, and substituting in lieu thereof the 

words "or association". 

(q) Section 86a of the Farm Credit Act of 1933 is hereby repealed. 

SEC. 106. (a) Section 5 of the Farm Credit Act of 1937, as amended, 

is amended (1) by striking from subsection (d) (2) (B) the words 

"production credit corporation of the district" and substituting in lieu 

thereof the words "Governor of the Farm Credit Administration"; 

and (2) by striking from subsection (h) the words "production credit 

corporation,". 

(b) Section 6 of the Farm Credit Act of 1937 is amended (1) by 

striking from the first sentence of subsection (a) the words "production credit corporation,"; (2) by striking from the third sentence 

of subsection (a) the word "three"; (3) by striking from the first 

sentence of subsection (b) the words "the bank for cooperatives, and 

the production credit corporation" and substituting in lieu thereof 

the words "and the bank for cooperatives"; and (4) by striking from 

the last sentence of subsection (b) the words "production credit corporation,". 

SEC. 107, (a) Section 8 of the Farm Credit Act of 1953 is amended 

by striking out the words "production credit corporation", wherever 

they appear therein, and substituting in lieu thereof the words "Federal intermediate credit bank". 

(b) Subsection (a) of section 16 of the Farm Credit Act of 1953 is 

amended to read as follows: 

"(a) Any other provisions of law to the contrary notwithstanding, 

after the effective date of this Act any production credit association 

may, with the approval of the Farm Credit Administration, issue 

nonvoting preferred stock, to be known as class C stock, which may be 

purchased and held by the Governor of the Farm Credit Administration and by investors: Provided^ That the issuance of such stock shall 
70 STAT. ] PUBLIC LAW 809-JULY 26, ?966 667 

be authorized by vote of not less than two-thiras of the outstanding 

shares of class A stock of the association (other than shares held by the 

Governor of the Farm Credit Administration) by the holders thereof 

in person or by proxy and by vote of not less than two-thirds of the 

outstanding shares of class B stock of the association by the holders 

thereof in person or by proxy; and for this purpose holders of class A 

stock (other than the Governor of the Farm Credit Administration) 

and holders of class B stock shall be entitled to one vote for each share 

of stock held by them. Payments for such stock purchased by the 

Governor shall be made out of the revolving fund created by section 

5 (a) of the Farm Credit Act of 1933, as amended, and the proceeds 

from the retirement of any such stock shall be paid into such revolving 

fund." 

SEC. 108. Section 601 of the Department of Agriculture Organic H use 832.* 

Act of 1944, as amended, is hereby amended (1) by striking from 

subsection (a) the words "production credit corporations,", wherever 

they appear therein, and the word "corporations,"; (2) by striking 

from subsection (b) the words "the Federal intermediate credit banks, 

and the production credit corporations" and substituting in lieu thereof the words "and the Federal intermediate credit banks"; and (3) 

by striking from subsections (b) and (c) the words "and corporation", 

"and corporations", and "corporation,", wherever they appear therein. 

SEC. 109. Sections 658 and 1014 of title 18, United States Code, are 62stat.729,7sz 

hereby amended by striking from each such section the words "or in 

which a production credit corporation holds stock". 

TITLE II—MISCELLANEOUS PROVISIONS 

SEC. 201. (a) The Government Corporation Control Act, as amended, ^^59 stat. S97,6oo, 

is amended (1) by striking from section 101 the words "Federal Inter- 31 use 846,856, 

mediate Credit Banks; Production Credit Corporations;"; (2) by *^''®^®' 

inserting in section 201 immediately following "(3) " the words "Federal Intermediate Credit Banks, (4)" ; (3) by changing "(4) " in section 201 to "(5)" ; and (4) by striking from sections 302 and 303 the 

words "production credit corporations,". 

(b) After the effective date of this subsection, the Federal intermediate credit banks may utilize their funds for administrative expenses without regard to the limitations contained in any other Act 

of Congress governing the expenditure of appropriated funds. 

(c) Paragraph Seventh of section 5136 of the Revised Statutes as ^^ ^®^ 2'*' 

amended, is amended (1) by inserting in next to the last sentence 

immediately before the words "Federal Home Loan Banks", the words 

"thirteen banks for cooperatives or any of them or the"; and (2) by 

changing the last sentence to read as follows: "The limitations and 

restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by the International Bank for Reconstruction and Development which are at the 

time eligible for purchase by a national bank for its own account: 

Provided, That no association shall hold obligations issued by said 

bank as a result of underwriting, dealing, or purchasing for its own 

account (and for this purpose obligations as to which it is under 

commitment shall be deemed to be held by it) in a total amount exceeding at any one time 10 per centum of its capital stock actually paid in 

and unimpaired and 10 per centum of its unimpaired surplus fund." 

SEC. 202. (a) This Act shall become effective on January 1, 1957, Effective dates, 

except subsections (a) and (b) of section 201, which shall become 

effective January 1, 1959. 

(b) For purposes of applying the amendment in section 103 of this 

Act, that part of the fiscal year 1957 preceding the effective date of 

this Act shall be deemed to be a separate fiscal year. 
668 

Saparability. 

PUBLIC LAW 810-JULY 26, 1956 [TOS T A T . 

SEC. 203. (a) If any provision of this Act, or the application thereof 

to any person or circumstance, is held invalid, the remainder of the 

Act, and the application of such provisions to other persons or circumstances, shall not be affected thereby. 

(b) The right to alter, amend, or repeal this Act is hereby expressly 

reserved. 

Approved July 26, 1956. 

July 26. 1956 

[H. R. 9742] 

Okefenokee Na -

tiona l Wildlif e 

Rofuge, Ga. 

Public Law 810 CHAPTER 742 

AN ACT 

To provide for the protection of the Olcefenoltee National Wildlife Refuge, 

Georgia, against damage from fire and drought. 

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

United States of America in Congress assembled^ That (a) for the 

purpose of protecting the natural features and the very substantial 

public values represented in the Okefenokee National Wildlife Eefuge, 

Georgia, from disastrous fires such as those which swept over 80 per 

centum of the area between October 1954 and June 1955, and for the 

purpose of safeguarding the forest resources on more than four hundred thousand acres of adjoining lands recently damaged by wildfires 

originating in or sustained by the desiccated peat deposits in the Okefenokee Swamp, the Secretary of the Interior shall construct a continuous perimeter road around the Okefenokee National Wildlife Refuge 

with additional fire access roads (leading from such perimeter road) 

in and around such refuge; and for the purpose of protecting such 

refuge against damage from drought he shall construct a sill and dike 

in the Suwanee River near the point where the river leaves the refuge 

together with additional sills in the Old Saint Marys River Canal and 

at such other points within the refuge as he may determine to be necessary to prevent drainage of the Okefenokee Swamp during periods 

of drought such as those which occurred in 1953-1955 and other years. 

(b) The Secretary of the Interior is authorized and directed to conduct such surveys as he deems necessary to provide more adequate protection for the Okefenokee National Wildlife Refuge, through the development and construction of perimeter and fire access roads and the 

installation of water controls as described in subsection (a), against 

the damaging effects of fire and drought. 

(c) The Secretary of the Interior is authorized and directed to cooperate with State and local authorities in protecting public and private lands from wildfires originating in or sustained by the Okefenokee National Wildlife Reiuge by integrating the perimeter road 

and fire access roads with existing woods roads in such manner as he 

determines will best carry out the purpose of this Act. 

Appiopriationa. SEC. 2. There are hereby authorized to be appropriated to carry out 

this Act (1) the sum of $453,500 for the construction of a continuous 

perimeter road around the Okefenokee National Wildlife Refuge and 

approximately one hundred and sixty-two miles of fire access roads, 

together with necessary bridges and culverts, in and around such 

reiuge, and (2) the sum of $275,000 for the construction of a sill and 

dike in the Suwanee River and sills at other appropriate points in the 

Okefenokee National Wildlife Refuge. 

Approved July 26, 1956. 

Survey s fo r 

roads, et c