384 PUBLIC LAW 86-168-AUG. 18, 1959 [73 STAT. 

August 18, 1959 

[S. 15 12] 

Public Law 86-168 

AN ACT 

To amend the Federal Farm Loan Act to transfer responsibility for making 

appraisals from the Farm Credit Administration to the Federal land banks, 

and for other purposes. 

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

of^i^ Credit Act JJ^IIQ^ States of America in Congress assemhled, That this Act may 

be cited as the "Farm Credit Act of 1959". 

TITLE I—FEDERAL LAND BANKS 

Registrars, ap -

praisers, exami -

ners. 

Restriction. 

Lo an for stock 

purchase. 

Addition. 

A pp r ai s al reports. 

12 us e 711-723. 

SEC. 101. Section 3 of the Federal Farm Loan Act, as amended, is 

amended— 

(a) by changing the paragraph thereof relating to the appointment of registrars, appraisers, and examiners (12 U.S.C. 666) 

to read: 

"The Farm Credit Administration shall appoint a farm loan registrar for each farm credit district to receive applications for issues 

of farm loan bonds and to perform such other services as are prescribed by this Act, and may appoint a deputy registrar who shall 

during the unavoidable absence or disability of the registrar perform 

the duties of that office. It shall also appoint as many farm credit 

appraisers and farm credit examiners as it shall deem necessary. 

Such farm loan registrars, deputy registrars, farm credit appraisers, 

and farm credit examiners shall have no connection w^ith or interest 

in any institution, association, or partnership engaged in banking or 

in the business of making land mortgage loans or selling land mortgages but they may perform such duties as are authorized by the 

Farm Credit Administration in connection with the business of the 

banks and associations it supervises: Provided, That this limitation 

shall not apply to persons employed by the Farm Credit Administration on a temporary basis."; 

(b) by deleting the paragraph thereof relating to the compensation of appraisers and inspectors (12 U.S.C. 658) ; 

(c) by deleting the paragraph thereof relating to the employment of certain personnel by the Farm Credit Administration 

(12 U.S.C. 659); and 

(d) by deleting the second sentence of the third paragraph 

from the end thereof (12 U.S.C. 662). 

SEC. 102. (a) The second paragraph of section 9 of the Federal Farm 

Loan Act, as amended (12 U.S.C. 742), is amended to read: 

"Any person desiring to secure a loan through a Federal land bank 

association under the provisions of this Act may, at his option, borrow 

from the Federal land bank through such association the sum necessary to pay for shares of stock subscribed for by him in the Federal 

land bank association. Any such sum for the purchase of stock shall 

be made a part of the face amount of the loan and such sum shall for 

all purposes be additional to the 65 per centum of the normal value 

of the farm as specified in any provision of this Act." 

(b) Section 10 of the Federal Farm Loan Act, as amended (12 

U.S.C. 751-757), is amended to read: 

"SEC. 10. (a) Whenever an application for a mortgage loan is made 

to a Federal land bank association, the loan committee provided for 

in section 7 of this Act shall cause to be made such investigation as it 

may deem necessary as to the character and solvency of the applicant 

and the sufficiency of the security offered. When it appears that a 

loan may be approved, the loan committee shall obtain a w^ritten 

report on the security by an appraiser designated or appointed by the 
73 STAT. ] PUBLIC LAW 86-168-AUG. 18, 1959 385 

Federal land bank of the district and such appraiser shall investigate 

and make a written report upon the security offered. Such appraisal, 

investigation, and report shall be made in accordance with appraisal 

standards prescribed by the Farm Credit Administration and may be 

made by any competent person (including an employee of a Federal 

land bank association) when designated for that purpose by the Federal land bank of the district. The loan committee shall cause a 

written report to be made of the results of such investigations of the 

applicant and the security and shall, if it concurs in such report, 

approve the same in writing. After the loan committee has reached 

an agreement as to the amount and terms of the loan which may be 

offered to the applicant, if such amount is not in excess of 65 per 

centum of the normal value of the security offered as determined by 

said appraiser, the association may notify the applicant ofthe amount 

and terms of the loan approved by the loan committee: Provided^ 

That any such notice shall contain a statement that the amount and 

terms of the loan offered to the applicant are subject to and conditioned upon subsequent approval or disapproval by the Federal 

land bank. 

"(b) The written report of the loan committee and the report made 

by an appraiser designated or appointed by the Federal land bank 

shall be submitted to the Federal land bank with the application for 

the loan, and the land bank shall examine said reports when it passes 

on the loan application which they accompany. No loan shall be made 

unless the report of the loan committee and the report of the appraiser 

are favorable. 

"(c) All appraisal reports shall be made on forms approved by the 

Farm Credit Administration. 

"(d) No farm credit appraiser and no appraiser designated or appointed by a Federal land bank shall make any appraisal in connection 

with a loan in which he is interested, directly or indirectly. No member of a loan committee or of a board of directors of a Federal land 

bank association shall participate in the consideration of or action on 

any loan in which he is interested, directly or indirectly. 

"(e) Each Federal land bank shall conduct studies in such manner 

and to such extent as the Farm Credit Administration deems necessary 

in connection with the appraisal standards prescribed for the district. 

"(f) Notwithstanding the foregoing provisions of this section— 

"(1) appraisal reports made by appraisers heretofore or hereafter appointed by the Farm Credit Administration pursuant to 

section 3 of this Act may be used as a basis for Federal land bank 

loans; 

" (2) the Farm Credit Administration may, in its discretion and 

in such circumstances and for such periods as it deems necessary, 

direct that any or all appraisals in connection with loans by any 

Federal land bank, or appraisal standards studies required by 

subsection (e), shall be made by farm credit appraisers appointed 

pursuant to section 3 of this Act; and 

"(3) for purposes of paragraph (2) of this subsection, the 

Farm Credit Administration is authorized to employ additional 

farm credit appraisers, including such appraisers as it may select 

who have been designated or appointed by a Federal land bank, and 

to require that the salaries and other expenses of all such additional appraisers be paid by the Federal land bank served by 

them in such manner as the Farm Credit Administration shall 

determine. 

"(g) Farm credit appraisers appointed pursuant to section 3 of this 

Act shall make such reviews and investigations as the Farm Credit 

Administration determines to be necessary to assure compliance with 

Notification. 

Restriction. 

Studies. 
386 PUBLIC LAW 86-168-AUG. 18, 1959 [73 ST A T . 

Transfer 

praisers. 

of ap58 Stat. 390. 

Amortize d and 

unamortized loan. 

Loan limit. 

50 Stat. 713. 

42 Stat. 1455. 

the appraisal standards prescribed by it pursuant to subsection (a) 

of this section; make such additional reviews and investigations concerning the quality of first mortgages securing farm loan bonds as the 

Farm Credit Administration-shall direct; and perform such other 

duties as may be prescribed by the Farm Credit Administration. Any 

first mortgage which is found not to conform to the appraisal and 

loan standards prescribed by the Farm Credit Administration shall 

not be credited toward meeting the amount of bond collateral which a 

Federal land bank is required to maintain with a farm loan registrar 

except in such amount as the Farm Credit Administration shall 

approve." 

SEC. 103. On the effective date of this title each land bank appraiser 

shall b4 transferred from the Farm Credit Administration to the 

Federal land bank served by him immediately prior to said effective 

date, without reduction in salary and accumulated leave, unless the 

Farm Credit Administration, in its discretion, determines that individual appraisers shall be retained as farm credit appraisers. The 

selection of personnel for transfer, or for retention as farm credit 

appraisers, shall be without regard to section 12 of the Veterans' 

Preference Act of 1944j as amended (5 U.S.C. 861). Land bank 

appraisers shall be subject to the same employment conditions as 

other bank employees after transfer under this section. At least 

sixty days prior to the effective date of this title the Farm Credit 

Administration shall notify each land bank appraiser that he is to be 

transferred to a Federal land bank or that he is to be retained in the 

Farm Credit Administration. Any land bank appraiser who notifies 

the Farm Credit Administration in writing at least thirty days before 

the effective date of this title that he does not desire to accept employment as stated in the notice from the Farm Credit Administration 

shall be separated from employment on said effective date and such 

separation shall be deemed involuntary. 

SEC. 104. (a) Section 12 of the Federal Farm Loan Act, as amended 

(12 U.S.C. 771), is amended by (1) changing the last proviso of paragraph "Second" thereof to read: ^^And provided further, That any 

land bank may make loans on an unamortized or partially amortized 

basis, under rules and regulations issued by the Farm Credit Administration."; (2) striking out of paragraph "Seventh" thereof "loans to 

any one borrower shall in no case exceed a maximum of $200,000, but". 

(b) Section 20 of the Federal Farm Loan Act, as amended, is 

amended by deleting the second sentence thereof (12 U.S.C. 861, second 

sentence) and by inserting the foUowinglmmediately before the period 

at the end of the last sentence thereof (12 U.S.C. 864, last sentence): 

", except that, with the approval of the Farm Credit Administration, 

an issue of bonds may be limited to bearer or coupon bonds". 

(c) The first and second sentences of section 23 of the Federal Farm 

Loan Act, as amended (12 U.S.C. 901), are amended hj substituting 

"at the end of each fiscal year" for "semiannually" therein. 

(d) The first and second sentences of section 24 of the Federal 

Farm Loan Act, as amended (12 U.S.C. 911), are amended by substituting "at the end of each fiscal year" for "semiannually" therein. 

(e) The seventh paragraph of section 29 of the Federal Farm Loan 

Act, as amended (12 U.S.C. 967), is amended by changing "land bank 

appraiser" in the second and third .sentences thereof to "farm credit 

appraiser". 

(f) Section 202(c) of the Federal Farm Loan Act, as amended (12 

U.S.C. 1033), is amended by changing the period at the end thereof 

to a comma and adding the following: "and any Federal intermediate 

credit bank may in its discretion purchase such loans or discounts 

with or without such endorsement.". 
73 STAT. ] PUBLIC LAW 86-168-AUG. 18, 1959 387 

(g) Section 208(c) of the Federal Farm Loan Act, as amended 

(12 U.S.C. 1093), is amended by changing "Land bank appraisers" 

in the first sentence thereof to "Farm credit appraisers". 

(h) The Federal Farm Loan Act, as amended (12 U.S.C. 641 

et seq.), and any other Act of Congress in which the words appear, 

are amended by changing "national farm loan association" and 

"national farm loan associations" to "Federal land bank association" 

and "Federal land bank associations", respectively. 

(i) The Federal Farm Loan Act, as amended (12 U.S.C. 641 et 

seq.), and any other Act of Congress in which the words appear, are 

amended by changing "secretary-treasurer" and "secretary-treasurers", 

when used to mean the secretary-treasurer of a national farm loan 

association (herein renamed "Federal land bank association"), to 

"manager" and "managers", respectively. 

(j) The first sentence of section 5(d) of the Farm Credit Act of 

1953 (12 U.S.C. 636(d)) is amended by inserting immediately before 

the period at the end thereof " : Provided^ That the salary of not 

more than three positions of deputy governor shall each be fixed by 

the Board at a rate not exceding $17,500 per annum". 

(k) This title shall become effective December 31, 1959. 

42 Stat. 1458. 

Salaries. 

67 Stat. 392. 

12 us e 636d. 

Effective date. 

TITLE II~STATU S OF FARM CREDIT BANKS 

EMPLOYEES 

AND 

67 Stat. 390. 

50 Stat. 706. 

SEC. 201. Notwithstanding any other provision of law, and in order rower pVrtici'^p"^ 

to encourage and facilitate increased borrower participation in the "on. 

management and control of institutions operating under the supervision of the Farm Credit Administration in accordance with the 

policy declared in section 2 of the Farm Credit Act of 1953 (12 

U.S.C, supp. IV, 636a), section 6 of the Farm Credit Act of 1937, 

as amended (12 U.S.C. 6401), is amended— 

(a) by inserting "(a) " immediately following "SEC. 6.", by 

redesignating subsections "(a) " and "(b) " as paragraphs "(1) " 

and "(2)" , respectively, and by deleting subsection "(c)" ; 

(b) by adding the following at the end of paragraph (1) of 

subsection (a) thereof (as redesignated herein): "The employment, compensation, leave, retirement (except as provided in subsection (e) hereof), hours of duty, and all other conditions of 

employment of such joint officers and employees employed by the 

district farm credit board, and of separate officers and employees 

of the Federal land bank, Federal intermediate credit bank, and 

bank for cooperatives of the district employed by the board of 

directors of such banks, shall be determined by the respective 

boards without regard to the laws from which exemption is 

granted in this section, but all such determinations shall be consistent with the laws under which such banks are organized and 

operate. Appointments, promotions, and separations so made 

shall be based on merit and efficiency and no political test or 

qualification shall be permitted or given consideration. The 

district farm credit board shall, under rules and regulations prescribed by the Farm Credit Administration, provide for veterans' 

preference and limitations against political activity for such 

officers and employees substantially similar to the preference 

and limitations to which such officers and employees were subject 

upon enactment of this sentence."; and 

(c) by adding the following new subsections after subsection 

(a) thereof (as redesignated herein) : 

"(b) The provisions of section 1753 of the Revised Statutes (5 

U.S.C. 631) and the Act of January 16, 1883, entitled 'An Act to reg-
388 PUBLIC LAW 86-168-AUG. 18, 1959 [73 ST A T . 

62 Stat. 354. 

54 Stat. 1211. 

5 us e 751 note. 

53 Stat. 1148. 

58 Stat. 387. 

Retirement provisions. 

70 Stat. 743. 

7 us e 2251 note. 

Exceptions. 

C o n tribution to 

retirement fund. 

70 Stat. 747; 72 

Stat. 143. 

iilate and improve the civil service of £he United States', as amended 

(22 Stat. 403; 5 U.S.C. 632 et seq.), any laws supplementary thereto, 

including but not limited to the Act of August 24, 1912, as amended 

(5 U.S.C. 652), section 1 of the Act of November 26,1940, as amended 

(5 U.S.C. 631a), and section 1310 of the Supplemental Appropriation 

Act, 1952, as amended (5 U.S.C. 43, note), and any rules, orders, or 

regulations promulgated for carrying such Acts or laws into effect, 

shall not apply to a Federal land bank. Federal intermediate credit 

bank, or bank for Cooperatives, or to its directors, officers, or 

employees. 

"(c) The Federal Employees' Compensation Act, as amended (5 

U.S.C, ch. 15), shall not be applicable in respect to the injury, disability, or death of any employee of a Federal land bank. Federal 

intermediate credit bank, or bank for cooperatives unless such injury, 

disability, or death (or cause thereof) occurred before January 1, 

1960. 

"(d) Section 9 of the Hatch Act, as amended (5 U.S.C. 118i), and 

the Veterans' Preference Act of 1944, as amended (5 U.S.C. 851-869), 

shall not be deemed to apply to a Federal land bank. Federal intermediate credit bank, or bank for cooperatives, or to its directors, 

officers, or employees. 

"(e) Each officer and employee of a Federal land bank, Federal 

intermediate credit bank, or bank for cooperatives who, on December 

31,1959, is within the purview of the Civil Service Retirement Act, as 

amended (5 U.S.C, supp. IV, ch. 30), shall continue so during his 

continuance as an officer or employee of any such banks without break 

in continuity of service. Any other officer or employee of such banks 

and any other person entering upon employment with any such banks 

after December 31, 1959, shall not be covered under the civil service 

retirement system by reason of such employment, except that (1) a 

person who, on December 31, 1959, is within the purview of the Civil 

Service Retirement Act, as amended, and thereafter becomes an officer 

or employee of any such banks without break in continuity of service 

shall continue under the civil service retirement system during his continuance as an officer or employee of any such banks without break in 

continuity of service and (2) a person who has been within the purview of said Act as an officer or employee of such banks and, after a 

break in such employment, again becomes an officer or employee of any 

such banks may elect to continue under the civil service retirement system during his continuance as such officer or employee by so notifying 

the Civil Service Commission in writing within thirty days after such 

reemployment. 

"(f) Each Federal land bank. Federal intermediate credit bank, 

and bank for cooperatives shall contribute to the civil service retirement and disability fund, for each fiscal year after June 30, 1960, 

a sum as provided by section 4(a) of the Civil Service Retirement 

Act, as amended (5 U.S.C 2254(a)), except that such sum shall be 

determined by applying to the total basic salaries (as defined in that 

Act) paid to the employees of said banks who are covered by that 

Actj the per centum rate determined annually by the United States 

Civil Service Commission to be the excess of the total normal cost 

per centum rate of the civil service retirement system over the employee 

deduction rate specified in such section 4(a). Each bank shall also 
73 STAT. ] PUBLIC LAW 86-168-AUG. 18, 1959 389 

pay into the Treasury as miscellaneous receipts such portion of the 

cost of administration of the fund as is determined by the United 

States Civil Service Commission to be attributable to its employees. 

"(g) Any Federal land bank, Federal intermediate credit bank, or 

bank for cooperatives may, subject to the approval of the Farm Credit 

Administration, establish a retirement system for its officers and employees either separately or jointly with any other corporation under 

the supervision of the Farm Credit Administration, in determining 

eligibility for or the amount of any benefit under any such retirement system, there shall not be taken into account any service which 

is creditable under the Civil Service Retirement Act, as amended, 5usc22Sinote. 

but service which constitutes employment as defined in section 210(a) 

of the Social Security Act, as amended (42 U.S.C, supp. IV, 410(a)), stS?. fots.^^'' " 

may be so taken into account notwithstanding section 115 of the 

Social Security Amendments of 1954 (42 U.S.C, supp. IV, 410, note) ^^ stat. i087. 

or any other provision of law. 

''(li) Subsections (b), (c), (d), (e), (f), and (g) of this section 

shall apply to the Central Bank for Cooperatives and its personnel 

and the board of directors of the Central Bank for Cooperatives shall 

have all the authority and responsibility with respect to personnel 

of such central bank as is vested in the farm credit board of a district or the board of directors of a district bank for cooperatives with 

respect to personnel of any such district bank under subsection (a) (1) 

of this section." 

SEC. 202. (a) Section 210(a) (6) (B) (ii) of title II of the Social 

Security Act, as amended (42 U.S.C, supp. IV, 410(a) (6) (B) (ii)), ^o stat. 824. 

and section 3121(b) (6) (B) (ii) of the Internal Revenue Code of 

1954, as amended (26 U.S.C, supp. IV, 8121(b) (6) (B) (ii)), are 

each amended by inserting "a Federal land bank, a Federal intermediate credit bank, a bank for cooperatives," immediately before the 

words "a national farm loan association" therein. 

(b) Section 2680 of title 28, United States Code, is amended by adding at the end thereof the following new subsection: "(n) Any claim 

arising from the activities of a Federal land bank, a Federal intermediate credit bank, or a bank for cooperatives.". 

(c) Section 102(b) of the Federal Employees Pay Act of 1945, as 

amended (5 U.S.C 902(b)), is amended by striking out "and" imme- ^^ ^°** ^96. 

diately preceding "(6) " therein and by inserting before the period 

at the end thereof " ; and (7) officers and employees of a Federal land 

bank, a Federal intermediate credit bank, or a bank for cooperatives". 

(d) Section 303 of the Government Employees' Incentive Awards 

Act (5 U.S.C, supp. IV, 2122) is amended by inserting within the 68 stat. 1113. 

parentheses after the words "the Tennessee Valley Authority" the 

words "or the Central Bank for Cooperatives". 

(e) Section 205(e) of the Annual and Sick Leave Act of 1951, as 

added by section 4(b) of the Act of July 2, 1953 (5 U.S.C, supp. IV, 

2064(e)), and section 1 of the Act of December 21, 1944, as amended ^'' ^*^*" ^^8. 

by section 4(a) of the Act of July 2, 1953 (5 U.S.C, supp. IV, 61b), ss stat. 845. 

are each amended by substituting "(C), (H), or (I) " for "(C), or 

(H) " therein. 

SEC. 203. (a) Nothing in this title shall be deemed to amend, alter, 

repeal, or restrict the application of (1) section 190 of the Revised 

Statutes (5 U.S.C. 99), relating to the prosecution of claims against 

the United States by former employees; (2) the Act of August 26, 

1950 (5 U.S.C. 22-1, 22-2, 22-3), relating to the suspension and sepa- ^^ stat. 476. 

ration of employees for security reasons; (3) section 710(e) of the 

Defense Production Act of 1950, as amended (50 U.S.C, app., supp. 

IV, 2160(e)), relating to the authority of the President to provide 69 stat. sss. 
390 PUBLIC LAW 86-169-AUG. 18, 1959 [73 ST A T . 

Effective date. 

for an executive reserve training program; or (4) any Act of Congress 

the violation of which is punishable by a fine or imprisonment, or both. 

(b) Any Act of Congress enacted after the effective date of this 

title and which states that it shall be applicable- to agencies or instrumentalities of the United States or to corporations controlled or 

owned, in whole or in part, by the United States, or to officers and 

employees of the United States or such agencies or instrumentalities 

or corporations, shall not be applicable to a Federal land bank, Federal intermediate credit bank, or bank for cooperatives, or to its 

directors, officers, or employees unless such Act specifically so provides 

by naming such banks. 

(c) This title shall become effective January 1,1960. 

Approved August 18, 1959. 

August 18, 1959 

[H. R. 4644] 

Public Law 86-169 

AN ACT 

To credit to postal revenues certain amounts in connection with postal activities, 

and for other purposes. 

Postal Service. 

R 

credit. 

V e n u e s. 

Effective date. 

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

United States of America in Congress assembled, That (a) the first 

sentence of section 4050 of the Revised Statutes (39 U.S.C. 782) is 

amended by inserting immediately following the last semicolon in 

such sentence the following: "all commissions on toll telephones located 

in buildings under the custody of the Post Office Department or the 

Postal Field Service; all amounts collected from officers and employees 

of the Post Office Department or the Postal Field Service on account 

of payments to them by courts of witness fees and allowances for 

expenses of travel and subsistence in cases in which such officers and 

employees have been subpenaed to testify in private litigation in their 

official capacities or to produce official records;". 

(b) The second sentence in the seventh paragraph under the heading 

"Office Of The Third Assistant Postmaster-General." in the Act of 

May 27, 1908 (35 Stat. 415; 39 U.S.C. 784), is amended by inserting 

"as part of the postal revenue" immediately before the period at the 

end of such sentence. 

SEO. 2. The amendments made by the first section of this Act shall 

become effective on such date as msLj be specified by the Postmaster 

General but not later than the sixtieth day following the date of 

enactment of this Act. 

Approved August 18, 1959. 

August 18, 1959 

[H. R. 5 138] 

Public Law 86-170 

AN ACT 

To extend the grounds of the Custis-Lee Mansion in Arlington National 

Cemetery, 

C u s t i s-L e e 

Mansion. 

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

United States of America in Congress assembled, That to make possible 

the restoration and preservation of a portion of the historic grounds 

associated with the Custis-Lee Mansion which, pursuant to the Act of 

June 29, 1955 (69 Stat. 190), has been dedicated as a permanent 

memorial to Robert E. Lee, the Secretary of the Army is authorized