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.
PL 86-168 (S.1512), enacted 08/18/1959

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, 
a p -
praisers, 
e x a m i -
ners. 
Restriction. 
Lo an for stock 
purchase. 
Addition. 
App r ai s al re-
ports. 
12 u s 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 appoint-
ment of registrars, appraisers, and examiners (12 U.S.C. 666) 
to read: 
"The Farm Credit Administration shall appoint a farm loan regis-
trar for each farm credit district to receive applications for issues 
of farm loan bonds and to perform such other services as are pre-
scribed 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 mort-
gages 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 Administra-
tion on a temporary basis."; 
(b) by deleting the paragraph thereof relating to the compen-
sation of appraisers and inspectors (12 U.S.C. 658) ; 
(c) by deleting the paragraph thereof relating to the employ-
ment 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 neces-
sary 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 S T A T . ] 
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 Fed-
eral 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 con-
ditioned 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 ap-
pointed by a Federal land bank shall make any appraisal in connection 
with a loan in which he is interested, directly or indirectly. No mem-
ber 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 here-
after 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 addi-
tional 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 
ap-
58 Stat. 390. 
A m o r t i z e 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 con-
cerning 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 indi-
vidual 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 employ-
ment 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 para-
graph "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 Adminis-
tration."; (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 sub-
stituting "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 S T A T . ] 
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 u s e 636d. 
Effective date. 
TITLE I I ~ S T A T U 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 super-
vision 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 employ-
ment, compensation, leave, retirement (except as provided in sub-
section (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 con-
sistent 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 pre-
scribed 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 u s e 751 note. 
53 Stat. 1148. 
58 Stat. 387. 
Retirement 
pro-
visions. 
70 Stat. 743. 
7 u s e 2251 note. 
Exceptions. 
C on tribution to 
retirement fund. 
70 S t a t . 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, dis-
ability, 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 inter-
mediate 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 con-
tinuance as an officer or employee of any such banks without break in 
continuity of service and (2) a person who has been within the pur-
view 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 sys-
tem 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 retire-
ment 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 S T A T . ] 
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 em-
ployees 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 retire-
ment 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 dis-
trict 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 I I 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 inter-
mediate 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 add-
ing at the end thereof the following new subsection: "(n) Any claim 
arising from the activities of a Federal land bank, a Federal inter-
mediate 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 instru-
mentalities 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, Fed-
eral 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 ue 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