An Act to merge production credit corporations in Federal intermediate credit banks; to provide for retirement of Government capital in Federal intermediate credit banks; to provide for supervision of production credit associations; and for other purposes.
PL 84-809 (H.R.10285), enacted 07/26/1956

70 ST AT. 3 
PUBLIC LAW 809-JULY 26, 1956 
659 
Public Law 809 
CHAPTER 741 
AN ACT 
July 26, 1956 
To merge production credit corporations in Federal intermediate credit banks; 
[H. R. 10285.1 
to provide for retirement of Government capital in Federal intermediate credit 
banks; to provide for supervision of production credit associations; and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act may ^^^g^f, C'**"* ^^^^ 
be cited as the "Farm Credit Act of 1956". 
DECLARATION OF POLICY 
SEC. 2. It is declared to be the policy of the Congress to continue to 
provide agriculture with a sound, dependable, and effective source of 
credit; to promote the efficiency of the farm credit system by merging 
production credit corporations in Federal intermediate credit banks 
and to facilitate increased farmer participation in the management, 
control, and ownership of the merged banks and retirement of Govern-
ment capital therein; to encourage and promote the continued growth 
and development of the production credit associations as self-support-
ing cooperative lending institutions operating on a sound credit basis 
with maximum local authority to determine credit needs and loan 
policies consistent with the maintenance of a national production 
credit system; and to continue to provide other financing institutions 
making loans to farmers and ranchers with the ri^ht to borrow from 
and rediscount with such merged banks on a basis comparable with 
the production credit associations regardless of the ownership of such 
banks. The provisions of this Act shall be construed in keeping with 
this declaration of policy. 
TITLE I—PRODUCTION CREDIT SYSTEM 
SEC. 101. MERGER OF PRODUCTION CREDIT CORPORATIONS IN FEDERAL 
INTERMEDIATE CREDIT BANKS—(a) TRANSFER OF ASSETS.—The pro-
duction credit corporation in each farm credit district is hereby merged 
in the Federal intermediate credit bank of the district and all assets, 
funds, contracts, property, and records belonging to such corporation, 
except stock in production credit associations, are hereby transferred 
to and vested in such bank. All obligations and liabilities of the pro-
duction credit corporation shall be assumed by the Federal inter-
mediate credit bank of the district. 
Stock held by each production 
credit corporation in production credit associations is transferred to 
the Governor of the Farm Credit Administration and the Governor 
shall cancel an equal par amount of stock of the corporation. 
(b) 
SERVICES TO AND SUPERVISION OF PRODUCTION CREDIT ASSOCIA-
TIONS.—In order to carry out the declared policy of this Act with 
respect to the production credit associations, the Farm Credit Admin 
istration shall, by appropriate provisions in the charter and bylaws, 
or otherwise, provide for such organization and assignment of func-
tions within the Federal intermediate credit banks as will assure 
proper supervision of and assistance to the production credit associa-
tions in a manner which will enable them to make sound credit avail-
able to farmers and ranchers. The income derived from the surplus 
transferred from the production credit corporation to the Federal 
intermediate credit bank of the district shall be used to pay expenses 
of the bank in providing such supervision and assistance, and expenses 
in excess of such income may be paid out of other resources of the 
bank. 
660 
PUBLIC LAW 809-JULY 26, 1956 
[70 STAT. 
(c) OFFICERS AND EMPLOYEES.—Notwithstanding any other provi-
sion of law, the employment of the officers and employees of each Fed-
eral intermediate credit bank and each production credit corporation 
is terminated on the effective date of this Act and the board of directors 
of the Federal intermediate credit bank shall, not later than sixty days 
prior to the effective date of this Act, take all necessary action to reem-
ploy as of such effective date such of the officers and employees so ter-
minated in such capacities as the board determines they are qualified 
and needed to carry out the functions, powers, and duties of the Fed-
eral intermediate credit bank. 
Such reemployment shall be subject to 
the approval of the Farm Credit Administration. 
12 us*c loil' 
SEC. 102. Section 205 of the Federal Farm Loan Act, as amended, 
is amended to read as follows: 
"CAPITAL STOCK 
"SEC. 205. 
(a) 
CLASSES OF STOCK; OWNERSHIP; DIVIDENDS; AND 
RETIREMENT OF STOCK.—Each Federal intermediate credit bank is 
authorized to issue class A and class B stock as follows: 
"(1) Class A stock shall have a par value of $100 per share and 
shall be issued to and held by the Governor of the Farm Credit Admin-
istration on behalf of the United States. 
Stock of each Federal inter-
mediate credit bank held by the Secretary of the Treasury shall be 
transferred to the Governor who shall exchange such stock for an equal 
amount of class A stock of such bank. 
The Governor is authorized 
thereupon to reallocate the investment of the United States in such 
banks m such manner as he determines necessary to meet the needs 
of the respective banks. 
Any transfers of capital funds required as a 
result of such reallocation shall be made in four equal installments, 
the first of which shall be made on January 1,1957, and one of which 
shall be made on the first day of each of the next succeeding three 
calendar years. Upon each such transfer of capital funds the Gov-
ernor shall require an appropriate adjustment in the class A stock 
of each such bank. 
Stock of each production credit corporation held 
by the Governor (less the amount canceled pursuant to section 101 of 
the Farm Credit Act of 1956) shall be exchanged for an equal par 
amount of class A stock of the Federal intermediate credit bank in 
which such corporation is merged pursuant to section 101 of such Act. 
No dividends shall be paid on class A stock. 
Annually at the end of 
its fiscal year each such bank shall determine the amount of its class A 
stock which shall be retired. 
Whenever the total of the capital stock, 
participation certificates, surplus, and reserves of the bank is more than 
one-sixth of the highest month-end balance of debentures and other 
obligations issued by or for the bank, outstanding during the immedi-
ately preceding five years, the minimum amount of class A stock to be 
retired shall be the total amount of class B stock and participation 
certificates issued for that year. 
All class A stock shall be retired at 
par. 
The proceeds of such class A stock retirements of each bank 
shall be paid into the Treasury as miscellaneous receipts until there is 
so paid a sum equal to $30,000,000 plus the amount of class A stock 
of the bank issued in exchange for stock of the production credit cor-
poration. 
The proceeds of any further such stock retirements shall 
be paid into the revolving fund established by section 5 (e) of the 
48 Stat. 348. 
Farm Credit Act of 1933, as amended. 
The Governor of the Farm 
Credit Administration is authorized to purchase from time to time 
class A stock in any bank in such amount as he determines is needed 
to meet the credit needs of the bank and such revolving fund shall 
continue to be available for such purchases as provided in said section 
5 (e). 
The Governor may at any time require the bank to retire such 
12 use ll31i. 
70 S T A T . ] 
PUBLIC LAW 809-JULY 26, 1956 
class A stock if, in his judgment, the bank has resources available 
therefor, and the proceeds of such retirements shall be returned to 
such revolving fund. 
"(2) Class B stock shall have a par value of $5 per share and may 
be issued only to production credit associations in series and amounts 
approved by the Farm Credit Administration. 
Such stock shall be 
issued only at par and may be transferred to another production 
credit association with the approval of the issuing bank. 
Whenever 
a bank has no class A stock outstanding it may pay like dividends on 
class B stock and participation certificates in an amount not to exceed 
5 per centum in any year if declared by the board of directors. Divi-
dends on class B stock and participation certificates shall not be cumu-
lative. Within sixty days after the effective date of the Farm Credit 
Act of 1956, the production credit associations shall subscribe to class 
B stock in the banks in an aggregate amount equal to 15 per centum 
of the total amount of class A stock in all banks. 
Such required 
amount of subscriptions shall be allotted among the several districts in 
the proportion that the average amount of the bank's loans to and 
discounts for the production credit associations of the district, out-
standing during the immediately preceding five fiscal years, is of the 
average of such loans and discounts of all banks outstanding during 
such five-year period. The amount so allotted to each district shall 
be further allotted to each production credit association on the basis 
of the proportion that its average indebtedness (loans and discounts) 
to the bank during the immediately preceding five fiscal years is of 
the average of such indebtedness of all production credit associations 
to the bank during such five-year period. 
Each production credit 
association shall subscribe to class B stock in the bank of the district 
in the amount so allotted to it. One-third of the purchase price of 
such stock subscription shall be paid at the time of such subscription, 
one-third shall be paid within one year after the effective date of said 
Act, and the balance shall be paid within two years after such effec-
tive date. Such class B stock shall be issued as payments therefor are 
made. Any production credit association chartered after the effective 
date of the Farm Credit Act of 1956 shall thereupon purchase class B 
stock in the bank in the amount of $5,000, and such amount shall be 
adjusted at the end of five years thereafter to an amount determined 
by applying to its average indebtedness to the bank during such five-
year period the same percentage as the percentage which the initial 
subscriptions of other production credit associations was of their 
indebtedness, as provided in this subsection: Provided^ That this pro-
vision shall not apply to any association owning stock in the bank in 
such required amount as a result of merger, consolidation, or reorgan-
ization of one or more associations. After all class A stock has been 
retired, the bank may retire class B stock at par and participation 
certificates at a face amount under policies established by the Farm 
Credit Administration. 
Class B stock and participation certificates 
shall be retired without preference and in such manner that the oldest 
outstanding stock or certificates at any given time will be retired first. 
In case of liquidation or dissolution of any production credit associa-
tion or other financing institution, the stock or participation certifi-
cates of the bank owned by such association or institution may be 
retired by the bank at the fair book value thereof, not exceeding par 
or face amount, as the case may be. 
"(b) LIEN ON STOCK AND PARTICIPATION CERTIFICATES.—Each Fed-
eral intermediate credit bank shall have a first lien on all stock in the 
bank owned by each production credit association and on all partici-
pation certificates owned by other financing institutions as additional 
collateral for any indebtedness of the holders thereof to the bank: 
662 
PUBLIC LAW 809-JULY 26, 1966 
[70 S T A T . 
Provided^ That the bank shall make no loan or advance on the security 
of its own stock or participation certificates. In any case where the 
debt of a production credit association or other financing institution is 
in default, the bank may retire and cancel all or a part of the stock of 
the bank held by the association or of the participation certificates held 
by the other financing institution at the fair book value thereof, not 
exceeding par or face amount, as the case may be, in total or partial 
liquidation of the debt." 
i2®u^sc'1"6 2 
^^^- ^^^- Section 206 of the Federal Farm Loan Act, as amended, 
1072. 
* is hereby amended to read as follows: 
"SEC. 206. (a) ANNUAL APPLICATION.—At the end of its fiscal year, 
each Federal intermediate credit bank shall determine the amount of 
its net earnings after paying or providing for all operating expenses 
(including reasonable valuation reserves and losses in excess of any 
such applicable reserves) and shall apply such net earnings as follows: 
(1) To the restoration of the amount of the impairment, if any, of 
capital stock and participation certificates, as determined by its board 
of directors; (2) to the restoration of the amount of the impairment, 
if any, of the surplus account established by this subsection, as de-
termined by its board of directors; (3) 25 per centum of any remain-
ing earnings shall be used to create and maintain a reserve account 
equal to 25 per centum of the outstanding capital stock and participa-
tion certificates of the bank; (4) if said bank shall have outstanding 
capital stock held by the United States during the whole or any part 
of its fiscal year, it shall next pay to the United States as a franchise 
tax, a sum equal to 25 per centum of its earnings then remaining, not 
exceeding, however, a rate of return on such Government capital cal-
culated at a rate equal to the computed average annual rate of interest 
on all public issues of public debt obligations of the United States 
issued during the fiscal year of the United States Treasury ending next 
before such tax is due, as certified to the Farm Credit Administration 
by the Secretary of the Treasury; (5) dividends on class B stock and 
participation certificates may be declared as provided in section 205 
(a) of this Act; and (6) any remaining net earnings shall be distrib-
uted as patronage refunds as provided in subsection (b) of this section. 
Notwithstanding the provisions of item (3) of this subsection, if at 
the end of any fiscal year the sum of the surplus and the reserve account 
of any bank is less than its outstanding capital stock and participation 
certificates, the bank shall continue to apply such 25 per centum of 
its net earnings to the reserve account until the sum of the surplus and 
the reserve account is equal to its outstanding capital stock and par-
ticipation certificates. 
Each bank shall, on the effective date of the 
Farm Credit Act of 1956, establish a surplus account consisting of 
its earned surplus account, its reserve for contingencies, and the surplus 
of the production credit corporation transferred to the bank. 
No part 
of such surplus of any bank shall be distributed as patronage refunds 
or as dividends. 
In the event of a net loss in any fiscal year after pro-
viding for all operating expenses (including reasonable valuation re-
serves and losses in excess of any such applicable reserves), such loss 
shall be absorbed by: first, charges to the reserve account; second, 
charges to surplus other than that transferred from the production 
credit corporation of the district; third, charges to surplus trans-
ferred from the production credit corporation of the district; fourth, 
the impairment of class B stock and participation certificates; and 
fifth, the impairment of class A stock. 
70 S T A T . ] 
PUBLIC LAW 809-JULY 26, 1956 
663 
" (b) PATRONAGE REFUNDS.—Whenever at the end of its fiscal year 
a Federal intermediate credit bank has class A stock outstanding, 
patronage refunds declared for that year shall be paid in class B 
stock to production credit associations and in participation certificates 
to other financing institutions borrowing from or rediscounting with 
the bank during the fiscal year for which such refunds are declared. 
The recipients of such patronage refunds shall not be subject to Fed-
eral income taxes thereon. 
Whenever at the end of its fiscal year 
a Federal intermediate credit bank has no class A stock outstanding, 
patronage refunds declared for that year may be paid in such class 
B stock and participation certificates or in cash as determined by the 
bank. 
All patronage refunds shall be paid in the proportion that 
the amount of interest earned hj the bank on its loans to and dis-
counts for each production credit association or other financing in-
stitution bears to the total interest earned by the bank on all such 
loans and discounts outstanding during the fiscal year. 
Each par-
ticipation certificate issued in payment of patronage refunds shall be 
in multiples of $5 and shall state on its face the rights, privileges, and 
conditions applicable thereto. 
Patronage refunds shall not be paid 
to any other Federal intermediate credit bank, or to any Federal land 
bank or bank for cooperatives. 
"(c) 
DISTRIBUTION OF ASSETS ON LIQUIDATION OR DISSOLUTION.—In 
the case of liquidation or dissolution of any Federal intermediate 
credit bank, after payment or retirement, as the case may be, first, 
of all liabilities; second, of all class A stock at par; third, of all class 
B stock at par and all participation certificates at face amount; any 
remaining assets of the bank shall be distributed as provided in this 
subsection. Any of the surplus established pursuant to subsection (a) 
of this section (excluding that transferred from the production credit 
corporation of the district) which the Farm Credit Administration 
determines was contributed by financing institutions, other than the 
production credit associations, rediscounting with or borrowing from 
the bank on the effective date of the Farm Credit Act of 1956 shall 
be paid to such institutions, or their successors in interest as determined 
by the Farm Credit Administration, and the remaining portion of 
such surplus (including that transferred from the production credit 
corporation of the district) shall be paid to the holders of class A 
and class B stock pro rata. 
The contribution of each such financing 
institution under the preceding sentence shall be computed on the basis 
of the ratio of its patronage to the total patronage of the bank from 
the date of organization of the bank to the effective date of the Farm 
Credit Act of 1956. Any assets of the bank then remaining shall be 
distributed to the holders of class B stock and the holders of participa-
tion certificates pro rata." 
SEC. 104. (a) Section 201 (b) of the Federal Farm Loan Act, as 
amended, is hereby amended by adding at the end thereof the follow-
ing sentence: "The directors shall have power, subject to the approval 
of the Farm Credit Administration, to adopt such bylaws as may be 
necessary for the conduct of the business of the banks." 
(b) Section 202 (a) of the Federal Farm Loan Act, as amended, is 
hereby amended to read as follows: 
"SEC. 202. (a) 
The Federal intermediate credit banks, when 
chartered and established, shall have power, subject solely to the 
restrictions, limitations, and conditions contained in this Act or as 
may be prescribed by the Farm Credit Administration not inconsist-
ent with the provisions of this Act— 
"(1) to discount for, or purchase from, any production credit 
association organized under the Farm Credit Act of 1933, as 
amended, with its endorsement, any note, draft, or other such 
Fed. intermediate! 
credit banks. 
42 Stat. 1454. 
12 u s e 1022. 
Bylaws. 
12 u s e 1031. 
Powers. 
664 
PUBLIC LAW 809-JULY 26, 1956 
[70 STAT, 
obligation presented by such association; and to make loans and 
advances to any such association secured by such collateral as 
may be approved by the Governor of the Farm Credit Adminis-
tration ; 
"(2) to discount for, or purchase from, any national bank, 
State bank, trust company, agricultural credit corporation, in-
corporated livestock loan company, savings institution, credit 
union, and any association of agricultural producers engaged 
in the making of loans to farmers and ranchers, with its endorse-
ment, any note, draft, or other such obligation the proceeds of 
which have been advanced or used in the first instance for any 
agricultural purpose, including the breeding, raising, fattening, 
or marketing of livestock; and to make loans and advances to 
any such financing institution secured by such collateral as may 
be approved by the Governor of the Farm Credit Administration: 
Provided^ That no such loan or advance shall be made upon the 
security of collateral other than notes or other such obligations 
of farmers and ranchers eligible for discount or purchase under 
the provisions of this section, unless such loan or advance is made 
to enable the financing institution to make or carry loans for 
any agricultural purpose; and 
" (3) to make loans to and discount paper for any other Federal 
intermediate credit bank, any Federal land bank, or any bank 
i*^u*sc^^M3i 
^^^ cooperatives organized under the Farm Credit Act of 1933, 
note. 
as amended, all upon terms and at rates of interest or discount 
approved by the Farm Credit Administration." 
1
2 use fo33. 
(c) Section 202 (c) of the Federal Farm Loan Act, as amended, 
is amended by changing the word "three" to the word "five". 
1
2 use \olV. 
\^) Section 204 (a) of the Federal Farm Loan Act, as amended, 
is amended to read as follows: 
cowirrate8°' '^^ 
"SEC. 204. (a) Loans and discounts by any Federal intermediate 
credit bank shall bear such rates of interest or discount as the board 
of directors of the bank shall from time to time determine with the 
{approval of the Farm Credit Administration, but the rates charged 
financing institutions other than production credit associations shall 
be the same as those charged production credit associations." 
12 use* 78 f.' 
(®) Section 13 of the Federal Farm Loan Act, as amended, is hereby 
amended by inserting in paragraph "Seventeenth", after the words 
"Federal land banks , a comma and the words "to Federal intermedi-
ate credit banks, or to banks for cooperatives organized under the 
^12 use 113 1 Farm Credit Act of 1933, as amended,". 
49*Stat. 315. 
(f) Sectiou 203 of the Federal Farm Loan Act, as amended, is 
12 use 1041. 
amended (i) by inserting in subsection (a) thereof, after the words 
"outstanding consolidated debentures" the words "or other similar 
1045."^^ ^°^*' obligations"; and (ii) by inserting in subsections (d) and (e) thereof, 
after the word "debentures" wherever used therein, except in the last 
sentence of subsection (d), the words "or other similar obligations". 
I2^U*SVM3I, 
SEC. 105. (a) Section 2 of the Farm Credit Act of 1933, as amended, 
1134. 
' is amended to read as follows: 
ope'rati'J^.."' *
'
*
*
* 
"SEO. 2. The Govemor of the Farm Credit Administration, herein-
after in this Act referred to as the 'Governor', is authorized and 
directed to organize and charter twelve banks to be known as 'banks 
for cooperatives'. One such bank shall be established in each city in 
which there is located a Federal land bank. The members of the sev-
eral farm credit boards of the farm credit districts provided for in 
12 use' 640*' 
section 5 of the Farm Credit Act of 1937, as amended, shall be ex 
officio the directors of the respective banks for cooperatives. 
Such 
directors shall have power, subject to the approval of the Governor, 
to employ and fix the compensation of such officers and employees of 
70 S T A T . ] 
PUBLIC LAW 809-JXJLY 26, 1956 
such banks as may be necessary to carry out the powers and duties 
conferred upon such banks under this Act." 
(b) Section 3 of the Farm Credit Act of 1933 is amended by striking 
from the first sentence the words "the production credit corporations 
and" and by striking from the second sentence the words "corpora-
tions and". 
(c) Section 4 of the Farm Credit Act of 1933 is hereby repealed. 
(d) Section 5 of the Farm Credit Act of 1933, as amended, is 
amended (1) by changing "$120,000,000" in subsection (a) thereof to 
"$60,000,000"; (2) by striking from subsection (b) thereof the words 
"the production credit corporations and"; (3) by changing "$40,000,-
000" m subsection (e) thereof to "$70,000,000"; and (4) by striking 
from subsection (e) thereof the words "and/or paid-in surplus". 
(e) Section 6 of the Farm Credit Act of 1933, as amended, is 
amended to read as follows: 
48 Stat. 257. 
12 u s e 
1131a, 
1134a. 
12 u s e 1131b. 
Revolving iUnd!. 
48 Stat. 258, 348. 
12 u s e 11311. 
48 Stat. 259. 
12 u s e 1131c. 
"INVESTMENT BY GOVERNOR IN STOCK OF PRODUCTION CREDIT 
ASSOCIATIONS 
"SEC. 6. The Governor may purchase class A stock of any production 
credit association in such amounts as he determines are required to 
meet the credit needs of farmers in the area served by such association. 
Payments for such stock purchased by the Governor shall be made 
out of the revolving fund authorized by section 5 (a) of this Act. 
The Governor may at any time require any production credit asso-
ciation to retire and cancel any class A stock held by him in such asso-
ciation if, in his judgment, the association has resources available 
therefor, and the proceeds of such stock retirements shall be paid into 
such revolving fund." 
(f) Section 20 of the Farm Credit Act of 1933 is amended by chang-
ing the fourth sentence to read as follows: "Such articles shall be signed 
by the individuals uniting to form the association and a copy thereof 
shall be furnished to the Governor." 
(g) Section 21 of the Farm Credit Act of 1933, as amended, is 
amended (1) by striking from the first sentence the words "production 
credit corporations" and substituting in lieu thereof the words "the 
Governor"; and (2) by deleting the last sentence thereof. 
(h) Section 22 of the Farm Credit Act of 1933, as amended, is 
amended by striking out the words "production credit corporation", 
wherever they appear therein, and substituting in lieu thereof "Federal 
intermediate credit bank". 
(i) Section 23 of the Farm Credit Act of 1933, as amended, is 
amended (1) by changing the first sentence to read as follows: "Each 
production credit association shall, under such rules and regulations 
as may be prescribed by the farm credit board of the district with 
the approval of the Farm Credit Administration, invest its funds 
and make loans to farmers for general agricultural purposes and 
other requirements of the borrowers."; (2) by deleting the second 
sentence; and (3) by striking from the third sentence the word "corpo-
ration" and inserting in lieu thereof the words "Federal intermediate 
credit bank". 
(j) Section 34 of the Farm Credit Act of 1933, as amended, is 
hereby amended by adding before the semicolon at the end of " ( b ) " 
the words "or to Federal land banks or Federal intermediate credit 
banks". 
(k) Section 41 of the Farm Credit Act of 1933, as amended, is 
hereby amended by adding before the semicolon at the end of " ( b ) " 
the words "or to Federal land banks or Federal intermediate credit 
banks". 
Suprm. 
48 Stat. 260. 
12 u s e 1131d. 
48 Stat. 260. 
12 u s e 1131e. 
48 Stat. 261. 
12 u s e 1131f. 
4 8 Stat. 261. 
12 u s e 1131g, 
49 Stat. 317. 
12 u s e 1134J. 
49 Stat. 317. 
12 u s e 1134c. 
666 
PUBLIC LAW 809-JULY 26, 1956 
[TOST A T . 
48 Stat. 266. 
12 u s e 1138. 
48 Stat. 267. 
12 u s e 1138a. 
48 Stat. 267. 
12 u s e 1138b. 
48 Stat. 267. 
12 u s e 1138c. 
48 Stat. 269. 
12 u s e 1138e. 
48 Stat. 1263. 
12 use 1131g-l. 
67 Stat. 397, 
12 use 640d. 
S
O Stat. 705. 
12 u s e 640h. 
50 Stat. 706. 
12 u s e 640/. 
67 Stat. 394. 
12 use 636g. 
67 Stat. 399. 
12 u s e 1131« 
(1) Section 60 of the Farm Credit Act of 1933, as amended, is 
amended (1) by striking from the first sentence the words "the produc-
tion credit corporations,"; (2) by striking from the second sentence the 
words "association, or corporation" and substituting in lieu thereof 
the words "or association"; and (3) by striking from the third sen-
tence the words "production credit corporation or", "or corporation", 
and "corporation or", wherever they appear therein. 
(m) Section 61 of the Farm Credit Act of 1933 is amended (1) by 
striking from the first sentence the words "production credit corpora-
tion,"; and (2) by striking from the second and third sentences the 
words "association, or corporation", wherever they appear therein, 
and substituting in lieu thereof the words "or association . 
(n) Section 62 of the Farm Credit Act of 1933j as amended, is 
amended by striking out the words "production credit corporations,". 
(o) Section 63 of the Farm Credit Act of 1933, as amended, is 
amended (1) by striking from the first sentence the words "the pro-
duction credit corporations,"; (2) by striking from the first and 
second sentences the words "associations, or corporations" and "asso-
ciations, and corporations," and substituting in lieu thereof, the words 
"or associations" and "and associations,", respectively; and (3) by 
changing the last sentence to read as follows: "The exemption pro-
vided herein shall not apply with respect to any production credit 
association or its property or income after the class A stock held in 
it by the Governor has been retired, or with respect to any bank for 
cooperatives or its property or income after the stock held in it by the 
United States has been retired." 
(p) Section 65 of the Farm Credit Act of 1933, as amended, is 
amended (1) by striking out the words "production credit corpora-
tion,"; and (2) by striking out the words "association or corporation", 
wherever they appear therein, and substituting in lieu thereof the 
words "or association". 
(q) Section 86a of the Farm Credit Act of 1933 is hereby repealed. 
SEC. 106. (a) Section 5 of the Farm Credit Act of 1937, as amended, 
is amended (1) by striking from subsection (d) (2) (B) the words 
"production credit corporation of the district" and substituting in lieu 
thereof the words "Governor of the Farm Credit Administration"; 
and (2) by striking from subsection (h) the words "production credit 
corporation,". 
(b) Section 6 of the Farm Credit Act of 1937 is amended (1) by 
striking from the first sentence of subsection (a) the words "produc-
tion credit corporation,"; (2) by striking from the third sentence 
of subsection (a) the word "three"; (3) by striking from the first 
sentence of subsection (b) the words "the bank for cooperatives, and 
the production credit corporation" and substituting in lieu thereof 
the words "and the bank for cooperatives"; and (4) by striking from 
the last sentence of subsection (b) the words "production credit cor-
poration,". 
SEC. 107, (a) Section 8 of the Farm Credit Act of 1953 is amended 
by striking out the words "production credit corporation", wherever 
they appear therein, and substituting in lieu thereof the words "Fed-
eral intermediate credit bank". 
(b) Subsection (a) of section 16 of the Farm Credit Act of 1953 is 
amended to read as follows: 
"(a) Any other provisions of law to the contrary notwithstanding, 
after the effective date of this Act any production credit association 
may, with the approval of the Farm Credit Administration, issue 
nonvoting preferred stock, to be known as class C stock, which may be 
purchased and held by the Governor of the Farm Credit Administra-
tion and by investors: Provided^ That the issuance of such stock shall 
70 S T A T . ] 
PUBLIC LAW 809-JULY 26, ?966 
667 
be authorized by vote of not less than two-thiras of the outstanding 
shares of class A stock of the association (other than shares held by the 
Governor of the Farm Credit Administration) by the holders thereof 
in person or by proxy and by vote of not less than two-thirds of the 
outstanding shares of class B stock of the association by the holders 
thereof in person or by proxy; and for this purpose holders of class A 
stock (other than the Governor of the Farm Credit Administration) 
and holders of class B stock shall be entitled to one vote for each share 
of stock held by them. 
Payments for such stock purchased by the 
Governor shall be made out of the revolving fund created by section 
5 (a) of the Farm Credit Act of 1933, as amended, and the proceeds 
from the retirement of any such stock shall be paid into such revolving 
fund." 
SEC. 108. Section 601 of the Department of Agriculture Organic 
H use 832.* 
Act of 1944, as amended, is hereby amended (1) by striking from 
subsection (a) the words "production credit corporations,", wherever 
they appear therein, and the word "corporations,"; (2) by striking 
from subsection (b) the words "the Federal intermediate credit banks, 
and the production credit corporations" and substituting in lieu there-
of the words "and the Federal intermediate credit banks"; and (3) 
by striking from subsections (b) and (c) the words "and corporation", 
"and corporations", and "corporation,", wherever they appear therein. 
SEC. 109. Sections 658 and 1014 of title 18, United States Code, are 
62stat.729,7sz 
hereby amended by striking from each such section the words "or in 
which a production credit corporation holds stock". 
TITLE II—MISCELLANEOUS PROVISIONS 
SEC. 201. (a) The Government Corporation Control Act, as amended, ^^59 stat. S97,6oo, 
is amended (1) by striking from section 101 the words "Federal Inter- 
31 use 846,856, 
mediate Credit Banks; Production Credit Corporations;"; (2) by *^''®^®' 
inserting in section 201 immediately following "(3)" the words "Fed-
eral Intermediate Credit Banks, (4)"; (3) by changing "(4)" in sec-
tion 201 to "(5)"; and (4) by striking from sections 302 and 303 the 
words "production credit corporations,". 
(b) After the effective date of this subsection, the Federal inter-
mediate credit banks may utilize their funds for administrative ex-
penses without regard to the limitations contained in any other Act 
of Congress governing the expenditure of appropriated funds. 
(c) Paragraph Seventh of section 5136 of the Revised Statutes as 
^^ ^®^ 2'*' 
amended, is amended (1) by inserting in next to the last sentence 
immediately before the words "Federal Home Loan Banks", the words 
"thirteen banks for cooperatives or any of them or the"; and (2) by 
changing the last sentence to read as follows: "The limitations and 
restrictions herein contained as to dealing in and underwriting invest-
ment securities shall not apply to obligations issued by the Interna-
tional Bank for Reconstruction and Development which are at the 
time eligible for purchase by a national bank for its own account: 
Provided, That no association shall hold obligations issued by said 
bank as a result of underwriting, dealing, or purchasing for its own 
account (and for this purpose obligations as to which it is under 
commitment shall be deemed to be held by it) in a total amount exceed-
ing at any one time 10 per centum of its capital stock actually paid in 
and unimpaired and 10 per centum of its unimpaired surplus fund." 
SEC. 202. (a) This Act shall become effective on January 1, 1957, 
Effective dates, 
except subsections (a) and (b) of section 201, which shall become 
effective January 1, 1959. 
(b) For purposes of applying the amendment in section 103 of this 
Act, that part of the fiscal year 1957 preceding the effective date of 
this Act shall be deemed to be a separate fiscal year. 
668 
Saparability. 
PUBLIC LAW 810-JULY 26, 1956 
[ T O S T A T . 
SEC. 203. (a) If any provision of this Act, or the application thereof 
to any person or circumstance, is held invalid, the remainder of the 
Act, and the application of such provisions to other persons or circum-
stances, shall not be affected thereby. 
(b) The right to alter, amend, or repeal this Act is hereby expressly 
reserved. 
Approved July 26, 1956. 
July 26. 1956 
[H. R. 9742] 
Okefenokee Na-
t i o n a l 
W i l d l i f e 
Rofuge, Ga. 
Public Law 810 
CHAPTER 742 
AN ACT 
To provide for the protection of the Olcefenoltee National Wildlife Refuge, 
Georgia, against damage from fire and drought. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) for the 
purpose of protecting the natural features and the very substantial 
public values represented in the Okefenokee National Wildlife Eefuge, 
Georgia, from disastrous fires such as those which swept over 80 per 
centum of the area between October 1954 and June 1955, and for the 
purpose of safeguarding the forest resources on more than four hun-
dred thousand acres of adjoining lands recently damaged by wildfires 
originating in or sustained by the desiccated peat deposits in the Okefe-
nokee Swamp, the Secretary of the Interior shall construct a contin-
uous perimeter road around the Okefenokee National Wildlife Refuge 
with additional fire access roads (leading from such perimeter road) 
in and around such refuge; and for the purpose of protecting such 
refuge against damage from drought he shall construct a sill and dike 
in the Suwanee River near the point where the river leaves the refuge 
together with additional sills in the Old Saint Marys River Canal and 
at such other points within the refuge as he may determine to be neces-
sary to prevent drainage of the Okefenokee Swamp during periods 
of drought such as those which occurred in 1953-1955 and other years. 
(b) The Secretary of the Interior is authorized and directed to con-
duct such surveys as he deems necessary to provide more adequate pro-
tection for the Okefenokee National Wildlife Refuge, through the de-
velopment and construction of perimeter and fire access roads and the 
installation of water controls as described in subsection (a), against 
the damaging effects of fire and drought. 
(c) The Secretary of the Interior is authorized and directed to co-
operate with State and local authorities in protecting public and pri-
vate lands from wildfires originating in or sustained by the Oke-
fenokee National Wildlife Reiuge by integrating the perimeter road 
and fire access roads with existing woods roads in such manner as he 
determines will best carry out the purpose of this Act. 
Appiopriationa. 
SEC. 2. There are hereby authorized to be appropriated to carry out 
this Act (1) the sum of $453,500 for the construction of a continuous 
perimeter road around the Okefenokee National Wildlife Refuge and 
approximately one hundred and sixty-two miles of fire access roads, 
together with necessary bridges and culverts, in and around such 
reiuge, and (2) the sum of $275,000 for the construction of a sill and 
dike in the Suwanee River and sills at other appropriate points in the 
Okefenokee National Wildlife Refuge. 
Approved July 26, 1956. 
S u r v e y s 
f o r 
roads, e t c