Public Law 202 - 83d Congress 

Chapter 335 - 1st Session 

H. R. 4353

All 67 S ta t . 390.

To increase farmer participation in ownership and control of the Ftnleral Farm

Credit System; to create a Federal Farm Credit Board; to abolish certain

offices; to impose a franchise tax upon certain farm credit institutions: and for

other purposes.

Be it emoted by the Senate and House of Representative* of the Farm Credit 

United States of America in Congress assembled, Aot o f 1953.

TITLE

S e c t io n 1. This Act may be cited as the “Farm Credit Act of 1953”.

DECLARATION OF POLICY

Sec. 2. It is declared to be the policy of the Congress to encourage 

and facilitate increased borrower participation in the management, 

control, and ultimate ownership of the permanent system of agricultural credit made available through institutions operating under 

the supervision of the Farm Credit Administration, and the provisions 

of this Act shall be construed in keeping with this policy. The Federal 

Farm Credit Board hereinafter provided for shall within one year 

after appointment make recommendations to the Congress of means, 

supplemental to those provided by this Act, of carrying into effect 

such declared policy, including, but not limited to, means of increasing 

borrower participation in ownership of the Federal Farm Credit 

System to the end that the investment of the United States in the 

Federal intermediate credit banks, production credit corporations,

Central Bank for Cooperatives, and regional banks for cooperatives 

may be retired.

FARM CREDIT ADMINISTRATION

S ec. 3. The Farm Credit Administration shall be an independent 

agency in the executive branch of the Government. It shall be housed 

in the Department of Agriculture in the District of Columbia, and it 

may, with the consent of the Secretary of Agriculture, utilize the 

services and facilities of the Department of Agriculture. The Federal 

Farm Credit Board, hereinafter provided for, shall have direction, 

supervision, and control of the Farm Credit Administration and of 

its operations and functions, as in this Act provided.

FEDERAL FARM CREDIT BOARD

Sec. 4. (a) There shall be established, in the Farm Credit Administration, a Federal Farm Cmlit Board (hereinafter referred to as 

the 4*Board“ ) . Said Board shall consist of thirteen members. Twelve 

of the members, one from each of the farm credit districts of the 

United States, shall be known as api>ointed members and shall be 

appointed by the President with the advice and consent of the Senate.

In making appointments to the Board the President shall have due 

regard to a fair representation of the public interest, the welfare of 

all farmers and the various types of cooperative agricultural credit 

interests; shall give special consideration to ]>ersons who are experienced in cooperative agricultural cm lit; and shall, before making 

such appointments, receive and consider nominations made as follows:

The national farm loan associations in the district shall designate one 

nominee, the production credit associations in the district shall designate one nominee, and the cooperatives which are stockholders or 

subscribers to the guaranty funa of the bank for cooperatives of the

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district shall designate one nominee, in accordance with the procedure

50 stat. 705. presci*ibed in sections 5 (e) and 5 (f) of the Farm Credit Act of 1937

12 use 640e, for t,]le nomination and election of members of a district farm credit

640f* board, except that only the two persons receiving the highest number

of votes shall be included in the list of nominees prepared as a result

of the voting under the procedure prescribed in said section 5 (e):

Provided, That the names of all those who are tied for second place as

a result of said voting shall be included in the list; and in case of a

tie in the voting under the procedure prescribed in said section 5 ( f )

the procedure prescribed therein shall be followed again until the tie

is broken: A na provided further, That if the same person would otherwise be on the list of nominees of more than one of said groups as a

result of the voting under said section 5 (e) he majr choose the one

list on which his name shall appear, and otherwise his name shall

appear only on the list of the two highest nominees of the group which

gave him the highest percentage of its votes. Subsequent appointments shall be made after receiving and considering nominations

made in like manner.

Board mem- (b) Each appointed member of said Board shall be a citizen of the

bers. United States and shall have been a resident of the farm credit district

Eligibility, from which appointed for not less than ten years next preceding his

tenns, eto. appointment, and the removal of residence from the district during

his tenure shall operate as a termination of his membership on said

Board. No appointed member of said Board shall be eligible to serve

for more than one full term of six years, and, in addition, a term of less

than six years if he is one of the first members to be appointed, or is

appointed to fill, the unexpired portion of one term expiring before

his appointment to a full term. No person shall be eligible for nomination or appointment to membership as an appointed member on said

Board if such person has within one year next preceding the commencement of the term been a salaried officer or employee or the Farm

Credit Administration, or a salaried officer or employee of any corporation operating under the supervision of the Farm Credit Administration. Any person who is a member of the district farm credit board

when appointed as a member of the Federal Farm Credit Board shall

resign as a member of the district board before assuming his duties as

a member of the Federal Farm Credit Board. No person who becomes

an appointed member of said Board shall be eligible to continue to

serve as a member thereof if such person becomes a member of any

district farm credit board, or an officer or employee of the Farm Credit

Administration, or an officer or employee of any corporation operating

under the supervision of the Farm Credit Administration.

(c) The term of office of the appointed members of said Board shall

be six years, beginning with the first day of the calendar month in

which this Act takes effect, and such members shall serve until their

successors are duly appointed and qualified; however, of the first

appointed members appointed hereunder, two shall be appointed for a

term of one year from said date, two for a term of two years, two for

a term of three years, two for a term of four years, two for a term of

five years, and two for a term of six years. All vacancies in the offices

of appointed members on said Board shall be filled for the unexpired

portion of the term upon like nominations and by like appointments

as herein provided for the appointment of the first such members of

said Board.

(d) The thirteenth member of the Board shall be designated by the

Secretary of Agriculture, shall serve at the pleasure of the Secretary,

and shall be known as the Secretary’s Representative on said Board.

H e shall be a citizen of the United States and shall have been a resident

o f the United States for not less than ten years next preceding his

designation to membership on said Board. iSfo person shall be eligible

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to be designated by the Secretary or to serve as the Secretary’s Representative on said Board, if such person is a member of a district farm

credit board, an officer or employee of any corporation operating under

the supervision of the Farm Credit Administration. The Secretary's

representative shall not be eligible to serve as Chairman, Vice Chairman, or Secretary of the Board, but shall otherwise possess all rights

and privileges of membership on said Board.

(e) As soon as practicable after the memberships on said Board

have been filled as in this Act provided, the members of said Board

shall meet, subscribe the oath of office, and organize by electing from

the appointed members a Chairman and a Vice Chairman; and said

Board shall appoint a secretary from within or without its membership as it may see fit. The Board shall elect annually for a term of

one year the Chairman, Vice Chairman, and Secretary, who shall

serve until their successors are elected and take office. The Chairman

shall preside at all meetings and the Vice Chairman shall preside in

the absence or disability of the Chairman. The Board may, in the

absence of both the Chairman and Vice Chairman, elect any appointed

member to act as Chairman pro tempore. Seven members shall constitute a quorum of the Board for the transaction of business. The Board

may function notwithstanding vacancies provided a quorum as herein

established shall be present. The Board shall meet at such times

and places as it may fix and determine, but shall hold at least four

regularly scheduled meetings a year; and special meetings may be

held on call of the Chairman or any three members of the Board.

( f ) Each member of the Board shall receive the sum of $50 for each Compensation of

day or part thereof spent in the performance of his official duties, Board members,

which compensation, however, shall not be paid for more than seventyfive days (or parts of days) in any calendar year; and shall not be paid

to the Secretary’s representative if he is a full-time officer or employee

of the United States, or such payment is otherwise prohibited by law ;

and in addition, shall be reimbursed for necessary travel, subsistence,

and other expenses incurred in the discharge of his official duties, without regard to other laws with respect to allowances which may be

made on account of travel and subsistence expenses of officers and employed personnel of the United States.

(g) The Board shall adopt such rules as it may see fit for the transaction of its business, and shall keep permanent and complete records

and minutes of its acts and proceedings.

GOVERNOR OF FARM CREDIT ADMINISTRATION

Sec. 5. (a) The Board shall appoint a Governor of the Farm Credit

Administration (hereinafter referred to as the “ Governor” ) who shall

serve at the pleasure of the Board, and who shall, subject to the general

supervision and direction of the Board as to matters of a broad and

general supervisory, advisory, or policy nature, and except as otherwise herein specifically provided, be responsible for the execution of

this Act, all Acts amendatory thereof and supplemental thereto, and

all Acts creating the powers, functions, and duties of the Farm Credit

Administration: Provided, however, That pending retirement of

Government capital in institutions supervised by the Farm Credit

Administration, the appointment of the Governor shall be subject to

the approval of the President; and during such period the President

shall nave power to require the removal of the Governor.

(b) The Board shall fix the compensation of the Governor: Pro- Salary.

videa, That the salary of the Governor shall not exceed $17,500 a year,

together with necessary traveling and subsistence expenses, or per

diem allowance in lieu thereof wTithin the limitations prescribed by

law, while away from his official station upon official business.

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(c) It shall be the duty of the Governor to comply with all orders

and directions which he receives from the Board; as to all third persons, all acts of the Governor shall be conclusively presumed to be in

compliance with the orders and directions of the Board.

Personnel* (d) The Governor shall appoint such other personnel as may be

necessary to carry out the functions, powers, and duties vested in the

Farm Credit Administration. The Farm Credit Administration shall

consist of the Board, the Governor, and such other personnel as are

employed in carrying out the functions, powers, and duties vested

in the Farm Credit Administration. All functions, powers, and duties

of the Farm Credit Administration, except those herein conferred upon

the Board, shall be exercised and performed by the Governor and may

be exercised and performed by him through such officers and employees

of the Farm Credit Administration as lie shall designate.

(e) The term of office of the incumbent of the office of Governor

of the Farm Credit Administration appointed before the effective date

of this Act and holding office on that date shall terminate on that

date and said office shall thereby become vacant: Provided, That if as

of that date a Governor has not been appointed, and qualified, under

this Act, the Secretary of Agriculture shall designate an assistant to

the Secretaiy to serve as Acting Governor of the Farm Credit Administration and such Acting Governor shall exercise and perform all

functions, powers, and duties vested in the Farm Credit Administration until the appointment and qualification of a Governor as in this

Act provided. The Acting Governor shall be subject to the powers of

the Board when the Board has been appointed and qualified.

RESPONSIBILITIES OF THE BOABD

Skc. 6. It shall be the function and duty of the Board (1) to see

that the policies fixed by the Board hereunder are carried out; (2) to

require such reports as it deems necessary from the Governor and from

any o f the officials or corporations under the control or supervision of

Report. the Farm Credit Administration; (3) to make an annual report to

Congress, including therein any recommendations of amendments to

the laws relative to Federal agricultural credit; and (4) to exercise

general direction and supervision over the performance of all functions, powers, and duties vested in the Governor when relating in the

judgment of the Board to matters of a broad and general supervisory,

advisory, or policy nature. It shall function as a unit without delegating authority to individual members and shall not operate in an

administrative capacity; and all administrative powers, functions, and

duties of the Farm Credit Administration shall be exercised and performed by the Governor.

OFFICES ABOLISHED AND FUNDS TRANSFERRED

Sec. 7. (a) The offices of the Land Bank Commissioner, Production

Credit Commissioner, Cooperative Bank Commissioner, and InterCentral Bank mediate Credit Commissioner are hereby abolished. The Governor

for Coopera- shall designate an officer or employee of the Farm Credit Administrate, ves* lion to serve at the pleasure of the Governor as a member of the board

of directors of the Central Bank for Cooperatives, as chairman of

said board of directors, and as executive officer of said bank, in lieu

Federal Farm Gf the Cooperative Bank Commissioner. The Governor shall designate

Mortgage an officer or employee of the Farm Credit Administration to serve at

CorP» the pleasure of the Governor as a member of the board of directors of

the Federal Farm Mortgage Corporation, in lieu of the Land Bank

Commissioner. The Federal Farm Mortgage Corporation and its

functions and activities are hereby transferred to the Farm Credit

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Administration and shall be administered therein under the general

direction and supervision thereof.

(b) Employees in the Department of Agriculture who are being

utilized on the effective date of this Act primarily for the performance

of functions, powers, and duties heretofore or by this Act vested in

the Farm Credit Administration, shall be transferred to the jurisdiction and control of the Farm Credit Administration in those instances

in which the Governor determines that they are qualified and necessary

to carry out the functions, powers, and duties of the Farm Credit

Administration.

(c) A ll assets, funds, contracts, property, and records used and

employed in the execution of the functions, powers, and duties heretofore or by this Act vested in the Farm Credit Administration are

hereby transferred to the jurisdiction and control of the Farm Credit

Administration.

(d) So much of the unexpended balances of appropriations, allocations, and other funds available or to be made available for salaries,

expenses, and all other administrative expenditures as the Director of

the Bureau of the Budget shall determine for use in the execution of

the functions heretofore or bv this Act vested in the Farm Credit

Administration, shall be transferred to and vested in the Farm Credit

Administration.

(e) A ll unexpended balances of appropriations, allocations, or other

funds, other than those mentioned in subsection (d) of this section,

available (including those available for the fiscal year ending June 30,

1953) for the Farm Credit Administration and/or for the Secretary

of Agriculture on account of the functions and activities of Farm

Credit Administration, shall be transferred to the Farm Credit Administration and shall remain available for the exercise of the functions

and activities of the Farm Credit Administration.

DELEGATIONS TO DISTRICT INSTITUTIONS

Sec. 8. The Farm Credit Administration is authorized and directed,

by order or rules and regulations, to delegate to a Federal land bank

such of the duties, powers, and authority of the Farm Credit Administration with respect to and over Xational Farm Loan Associations,

their officers and employees, in the farm credit district wherein such

Federal land bank is located, as may be determined to be in the interest

of effective administration; and, in like manner, to delegate to a production credit corporation such of the duties, powers, and authority

of the Farm Credit Administration with respect to and over production credit associations, their officers and employees, in the farm credit

district wherein such production credit corporation is located, as may

be determined to be in the interest of effective administration; and, in

either case the duties, powers, and authority so delegated shall be

performed and exercised under such conditions and requirements and

upon such terms as the Farm Credit Administration may specify.

Any Federal land bank or production credit corporation to which any

such duties, powers, or authority may be delegated is hereby authorized

and empowered to accept, perform, and exercise such duties, powers,

and authority as may be so delegated to it.

DIVISION OF COOPERATIVE MARKETING TRANSFERRED

Sec. 9. There is hereby transferred from the Farm Credit Administration to the jurisdiction and control of the Secretary of Agriculture the Division of Cooperative Marketing (by whatever name now

called) authorized and created under and by virtue of an Act of

Congress of July 2, 1926 (Public, Numbered 450, Sixty-ninth Con­ 44 Stat. 802.

7 USC 451-457.

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39 Stat. 379.

12 USC 901,

902.

48 Stat. 259.

12 USC 11310.

48 Stat. 263.

12 USC 11341.

gress), entitled “An Act to create a Division of Cooperative Marketing

in the Department of Agriculture; to provide for the acquisition and

dissemination of information pertaining to cooperation; to promote

the knowledge of cooperative principles and practices; to provide for

calling advisers to counsel with the Secretary of Agriculture on cooperative activities; to authorize cooperative associations to acquire,

interpret, and disseminate crop and market information, and for other

purposes”, together with all functions pertaining to the work and

services of such Division, its personnel, property (including office

equipment), assets, funds, contracts, and records used and employed

in the execution of its functions, powers, and duties, and so much of

the unexpended balances of appropriations, allocations, and other

funds available or to be made available for salaries, expenses, and all

other administrative expenditures as the Director of the Bureau of

the Budget shall determine, for use in the execution of the functions,

powers, and duties of said Division.

FRANCHISE TAX PROVISIONS

Sec. 10. Section 28 of the Federal Farm Loan Act, as amended, is

further amended by adding at the end thereof a new paragraph as

follow s:

“Notwithstanding any other provision of this Act, in the case of a

Federal land bank having outstanding capital stock held by the United

States during the whole or any part of a fiscal year, saicl bank shall,

after complying with the reserve requirements of the preceding paragraphs of this section and before declaring any dividends to shareholders, pay to the United States a franchise tax equal to 25 per centum

of its net earnings then remaining, not to exceed, however, a rate of

return of 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 ending next before such tax is due, as certified to the Farm Credit Administration by the Secretary of the Treasury.”

Sec. 11. Section 6 of the Farm Credit Act of 1933 is amended by

adding at the end thereof a new paragraph as follow s:

“ (e) Each production credit corporation shall, at the end of each

fiscal year (1) apply its earnings described in subsection (c) of this

section in accordance with the provisions of subsections (c) and (d) of

this section; and (2) apply its earnings from all other sources, first,

to the payment of any operating expenses for the year remaining

unpaid; second, to restore losses and impairment of capital, if any,

of the corporation; third, to the creation and maintenance of a surplus

equal to 25 per centum of the paid-in capital of the corporation;

fourth, to the payment of 25 per centum of its earnings from all

sources then remaining to the United States as a franchise tax, and

fifth, to the payment of the remaining earnings into its surplus

account.”

Sec. 12. Section 36 of the Farm Credit Act of 1933 is amended to

read as follows:

“The Central Bank for Cooperatives shall, at the end of its fiscal

year, apply the amount of its earnings in excess of operating expenses

during such fiscal year: First, to making up any losses incurred;

second, to the restoration of the amount of the impairment, if any,

of capital and guaranty fund as determined by the chairman of the

board; third, 25 per centum of the remainder of such excess of earnings shall be applied to the creation and maintenance of a surplus

equal to at least 25 per centum of the amount of the capital and

guaranty fund; fourth, if said bank shall have outstanding capital

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

Pub. Law 202 - 6 *

. 395.

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

a sum equal to 25 per centum of its net 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 ending next before such tax is due, as

certified to the Farm Credit Administration by the Secretary of

Treasury; and fifth, any sums remaining shall be carried into its surplus account or devoted to the payment of dividends, as may be determined by the chairman of the board. Subscribers to the guaranty fund

shall be entitled to dividends in the same amounts as the subscribers

to the stock. No rate of dividend in excess of 7 per centum per annum

shall be paid. Dividends on stock held by the Farm Credit Administration or the Governor thereof, when paid, shall be credited to the

revolving fund created under section 6 of the Agricultural Marketing 46 stat. 14.

Act, as amended.” 12 use H4ld*

Sec. 13. Section 42 of the Farm Credit Act of 1933 is amended to 48 stat. 264.

read as follows: 12 use li34d.

“ The provisions of section 35, as amended, and the provisions of

section 36, as amended, shall apply in the case of Banks for Coopera- 12 use 1134k,

tives in the same manner and to the same extent as such provisions are H341.

applicable to the Central Bank for Cooperatives, except that powers

conferred on the Chairman of the Board of the Central Bank for

Cooperatives shall be exercised by the Boards of Directors of the

Banks for Cooperatives, subject to the approval of the Farm Credit

Administration.”

MEMBERSHIP OF DISTRICT FARM CREDIT BOARDS

Sec. 14. Section 5 (b) of the Farm Credit Act of 1937 is amended 50 stat. 704.

to read as follow s: 12 use 640b.

“ (b) There shall be in each farm credit district a farm credit board

which shall be selected as hereinafter specified and shall be composed

of seven members. Each farm credit board shall include in its title

the name of the city in which the Federal land bank, Federal intermediate credit bank, production credit corporation, and regional bank

for cooperatives of the district are located. Three of the seven members of said board shall be known as elected directors, of whom one

shall be chosen by national farm loan associations, one shall be chosen

by production credit associations of the district, and one shall be

chosen by cooperatives which are stockholders or subscribers to the

guaranty fund of the regional bank for cooperatives in the district.

Subject to the other provisions hereof, three of the seven members

shall be known as district directors and shall be appointed by the

Governor of the Farm Credit Administration by and with the advice

and consent of the Federal Farm Credit Board. The seventh member

of such board shall be known as director-at-large and shall be

appointed by the Governor of the Farm Credit Administration by and

with the advice and consent of the Federal Farm Credit Board. No

person shall be eligible hereafter for nomination or appointment to

membership as an appointed member 011 said Board if such person

has within one year next preceding the commencement of the term

been a salaried officer or employee of the Farm Credit Administration,

or a salaried officer or employee of any corporation operating under

the supervision of the Farm Credit Administration. Each farm

credit board shall elect from its members a chairman and vice chairman, and shall appoint a secretary from within or without its membership as it may see fit. The chairman, vice chairman, and secretary

shall each be elected for a term of one year and until their successors

are elected and take office and the board shall elect such officers each

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year. The chairman shall preside at all meetings and the vice chairman shall preside in the absence or disability of the chairman. The

board may, in the absence of both the chairman and vice chairman,

elect a member to act as chairman pro tempore.”

Sec. 15. Section o of the Farm Credit Act of 1937 is amended by

12 use 640d* striking out the entire text of subdivision (d) thereof and inserting

in lieu thereof the following:

“ (d) (1) The member of the farm credit board of each farm credit

district known as the ‘third district director’, who is in office on the

effective date of the Farm Credit Act of 1953, shall serve as such until

his term of office expires. Thereafter, there shall be no member of

the district farm credit board to be known as the ‘third district

director’.

“ (2) Notwithstanding the above provision with respect to the

appointment of district directors, one additional member of said board

shall be elected by each of the groups aforesaid (national farm loan

associations and borrowers through agencies, production credit associations, and cooperatives wThich are stockholders or subscribers to the

guaranty fund of the regional bank for cooperatives of the district),

and serve in lieu of a district director, under the following circumstances and conditions:

“ (A ) Whenever, as determined by the Farm Credit Administration, the sum of the capital stock held by national farm loan associations, surplus, and reserves of a Federal land bank shall equal or

exceed 6G% per centum of the total of the capital stock, surplus, and

reserves of such bank as of the date three months before the expiration

of the term of office of the district director (or third district director)

whose term next expires, the successor to such director shall be elected

by the national farm loan associations of the district in the manner

herein provided, shall be known as an elected director, and successors

to that office shall be so elected and known from term to term while

such conditions obtain: Provided, That if and when, as determined by

the Farm Credit Administration, such conditions do not obtain as of

the date three months before the expiration of the term of office of

any director so elected under the provisions of this subparagraph, the

successor to such director shall be appointed by the Governor of the

Farm Credit Administration by and with the advice and consent of

the Federal Farm Credit Board, shall be known as a district director,

and successors to that office shall be so appointed and known from

term to term for such terms as appointment is not precluded by the

election of an additional director by one of tlie groups aforesaid as

herein provided: And provided further, That such national farm loan

associations shall again and from time to time elect one additional

director as aforesaid if and when the required conditions named in

this subparagraph shall be determined to obtain as aforesaid.

“(B) Whenever, as determined by the Farm Credit Administration,

the sum of the capital stock held by persons other than the production

credit corporation of the district, surplus, and reserves of the production credit associations (collectively) of a farm credit district shall

equal or exceed 66% per centum of the total of the capital stock,

surplus, and reserves of the production credit associations (collectively) of said district as of the date three months before the expiration

of the term of office of the district director (or third district director)

whose term next expires? the successor to such director shall be elected

by the production credit associations of the district in the manner

herein provided, shall be known as an elected director, and successors

to that office shall be so elected and known from term to term while

such conditions obtain: Provided, That, if and w hen, as determined by

the Farm Credit Administration, such conditions do not obtain as of

the date three months before the expiration of the term of office of

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any director so elected under the provisions of this subparagraph,

the successor to such director shall be appointed by the Governor of

the Farm Credit Administration by and with the advice and consent

of the Federal Farm Credit Board, shall be known as a district director, and successors to that office shall be so appointed and known from

term to term for such terms as appointment is not precluded by the

election of an additional director by one of the groups aforesaid as

herein provided: And provided further, That such production credit

associations shall again and from time to time elect one additional

director as aforesaid, if and when the required conditions named in

this subparagraph shall be determined to obtain as aforesaid.

“ (C ) Whenever, as determined by the Farm Credit Administration,

the sum of the capital stock and subscriptions to the guaranty fund

held by cooperatives which are stockholders or subscribers to the guaranty fund of a regional bank for cooperatives, surplus and reserves

of said bank shall equal or exceed 66% per centum of the total capital

stock, subscriptions to the guaranty fund, surplus and reserves of said

bank as of the date three months before the expiration of the term of

office of the district director (or third district director) whose term

next expires, the successor to such director shall be elected by the

cooperatives which are stockholders or subscribers to the guaranty

fund of said bank in the manner herein provided, shall be known as

an elected director, and successors to that office shall be so elected and

known from term to term while such conditions obtain: Provided,

That if and when, as determined by the Farm Credit Administration,

such conditions do not obtain as of the date three months before the

expiration of the term of office of any director so elected under the

provisions of this subparagraph, the successor to such director shall

be appointed by the Governor of the Farm Credit Administration by

and with the advice and consent of the Federal Farm Credit Board,

shall be known as a district director, and successors to that office shall

be so appointed and known from term to term for such terms as

appointment is not precluded by the election of an additional director

by one of the groups aforesaid as herein provided: Provided further,

'fliat such cooperatives which are stockholders or subscribers to the

guaranty fund of said bank shall again and from time to time elect

one additional director as aforesaid if and when the required conditions named in this subparagraph shall be determined to obtain as

aforesaid: Provided further, That at no time and under no conditions

shall there be in office less than one or more than two members of said

board who are serving by election of any one of the groups aforesaid

(national farm loan associations and borrowers through agencies,

production credit associations, and cooperatives which are stockholders or subscribers to the guaranty fund of the regional bank for

cooperatives of the district) : And provided further, That if two or

more of said groups shall, under the terms and provisions hereof,

become qualified to elect an additional director pending the expiration

of the term of office of the district director (or third district director)

whose term next expires, preference shall be given, first to national

farm loan associations and borrowers through agencies, next to production credit associations, and next to cooperatives which are stockholders or subscribers to the guaranty fund of the regional bank for

cooperatives, to elect an additional director as herein provided as the

terms of office of district directors, including the third district director

if he be still in office, expire.

“ (3) In any district which includes more than one State no person

shall be eliirikle to be elected by any group if he is a resident of the

same State'as the other member elected by such group and then

serving. I f two directors are to be elected at the same election in any

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such district by any group, the election of the director to be elected

Ante, p. 396. by such group under section 5 (b) shall be first determined, and the

Ante, p. 397. person receiving the most votes for election under section 5 (d) (2)

who is not a resident of the same State as the director elected under

section 5 (b) shall be declared elected.”

Sec. 16. (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 President of the Production

Credit Corporation and of the Farm Credit Administration, issue nonvoting preferred stock, to be known as class C stock, which may be purchased and held by production credit corporations and by investors:

. Provided, That the issuance of such stock shall be authorized by vote

of not less than two-thirds of the outstanding shares of class A stock

of the association (other than shares held by the Production Credit

Corporation) 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

Production Credit Corporation) and holders of class B stock shall be

entitled to one vote for each share of stock held by them.

(b) Such class C stock of such associations shall be divided into

shares of $5 each. The resolution of the stockholders authorizing

the issuance of class C stock and every certificate of class C stock

issued shall state and express the privileges, restrictions, limitations,

and qualifications affecting said stock, and the total amount of the

authorized issue to which it belongs.

(c) Such class C stock may (1) be made subject to redemption in

such manner, at such time or times, and at such price or prices; (2)

be given such preferences as to net assets upon dissolution of the

corporation, whether voluntary or involuntary; (3) be given the

right to receive such cumulative or noncumulative aividends payable

quarterly, semiannually, or annually, and payable as a whole or in

part before any dividend shall be set apart for or paid on class A and

class B stock; and (4) be made subject to such other restrictions, limitations, and qualifications; as shall be stated and expressed in the

resolution of the stockholders authorizing the issuance thereof and

in the face of the stock certificates.

APPROPRIATIONS AND EXPENDITURES

S ec. IT. (a) There are authorized to be appropriated such sums as

may be necessary or appropriate for administering the provision of

this A c t: Provided, That the cost of examination and of administrative supervision of the Farm Credit Administration shall continue to

be supported by assessments against institutions supervised by the

Farm Credit Administration as provided in the Department of A gri58 stat. 740, culture Organic Act of 1944.

12 use 8 3 2 . (b) Farm Credit Administration may, within the limits of funds

available therefor, and subject to provisions of law generally applicable to Government agencies, make necessary expenditures for personnel services and rent at the seat of government and elsewhere;

contract stenographic reporting services; purchase and exchange of

lawbooks, books of reference, periodicals, newspapers, expenses of

attendance at meetings and conferences; purchase, operation, and

maintenance, at the seat of government and elsewhere, of motorpropelled passenger-carrying vehicles and other vehicles; printing

and binding; and for such other facilities and services as it may from

time to time find necessary for the proper administration of this Act.

Effeotive Sec. 18. This Act shall take effect one hundred and twenty days

date.

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after the date of its enactment: Provided, however\ 1'hat immediately

following the enactment of this Act the Farm Credit Administration

shall proceed with the designation of nominees as provided in section

4 (a) hereof and the members of the Federal Farm Credit Board Ante, p. 390.

shall be appointed or designated sufficiently in advance of the effective

date of this Act to enable said Board to prepare to enter upon the discharge of its duties upon the effective date of this A ct; and after the

effective date of this Act, the compensation and expenses of the Board

members shall be paid, as provided herein, from the date on which

their appointments became effective, out of any funds available for

the payment of administrative expenses of the Farm Credit Administration.

Sec. 19. All Acts 01* parts of Acts inconsistent with the provisions of

this Act are hereby repealed to the extent of such inconsistency.

Sec. 20. (a) I f any provision of this Act, or the application thereof Separability

to any person or circumstances, is held invalid, the remainder of the olause.

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.

A p p r o v e d A u g u s t 6, 1953.

U. s . GOVERNMENT PRINTING OFFICE : 1953 O - 37195

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