An Act to increase farmer participation in ownership and control of the Federal 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
PL 83-202 (H.R.4353), enacted 08/06/1953

390 
PUBLIC LAW 202-AUG. 6, 1953 
[67 S T A T . 
Public Law 202 
CHAPTER 335 
Aueust 6. 1953 
^ ^ 
^ ^ ' ^ 
[H. R. 4353] 
To increase farmer participation in ownership and control of the Federal 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. 
of^i1)53.^'*'^" ^""^ Be it e'nacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled, 
TITLE 
SECTION 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 agri-
cultural 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 
SEC. 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 Admin-
istration, a Federal Farm Credit Board (hereinafter referred to as 
the "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 appointed 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 persons who are experi-
enced in cooperative agricultural credit; 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 desig-
nate one nominee, and the cooperatives which are stockholders or 
subscribers to the guaranty fund of the bank for cooperatives of the 
67 S T A T . ] 
PUBLIC LAW 2 0 2 - A U G . 6, 1953 
391 
50 Stat. 705. 
12 u s e 640 e, 
district shall designate one nominee, in accordance with the procedure 
prescribed in sections 5 (e) and 5 (f) of the Farm Credit Act of 1937 
for the nomination and election of members of a district farm credit ^^^^' 
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 b'te 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 nd provided further, That if the same person would other-
wise 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 may 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 appoint-
ments shall be made after receiving and considering nominations 
made in like manner. 
(b) Each appointed member of said Board shall be a citizen of the 
|°,^'^ members. 
United States and shall have been a resident of the farm credit district terms.^^tc. ^ ^ ^' 
from which appointed for not less than ten years next preceding his 
appointment, and the removal of residence from the district during 
his tenure shall operate as a termination of his membersiiip 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 nomina-
tion or appointment to membership as an appointed member on said 
Board if such person has within one year next preceding the com-
mencement of the term been a salaried officer or employee of the Farm 
Credit Administration, or a salaried officer or employee of any corpo-
ration operating under the supervision of the Farm Credit Adminis-
tration. 
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 
disti ict 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. 
AH 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. 
He shall be a citizen of the United States and shall have been a resident 
of the United States for not less than ten years next preceding his 
designation to membership on said Board, l^o person shall be eligible 
392 
PUBLIC LAW 202-AUG. 6, 1953 
[67 S T A T . 
to be designated by the Secretary or to serve as the Secretary's Repre-
sentative 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 Chair-
man, 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 member-
ship 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 consti-
tute 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. 
BcSrd^Jmbei-s? °^ 
(^) Each member of the Board shall receive the sum of $50 for each 
day or part thereof spent in the performance of his official duties, 
which compensation, however, shall not be paid for more than seventy-
five 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, with-
out regard to other laws with respect to allowances which may be 
made on account of travel and subsistence expenses of officers and em-
ployed personnel of the United States. 
(g) The Board shall adopt such rules as it may see fit for the trans-
action of its business, and shall keep permanent and complete records 
and minutes of its acts and proceedings. 
GOVERNOR o r 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 other-
wise 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, 
hoioever, 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 have power to require the removal of the Governor. 
Salary* 
(b) The Board shall fix the compensation of the Governor: Pro-
vided, 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 within the limitations prescribed by 
law, while away from his official station upon official business. 
67 S T A T . ] 
PUBLIC LAW 202-AUG. 6, 1953 
39S 
(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 per-
sons, all acts of the Governor shall be conclusively presumed to be in 
compliance with the orders and directions of the Board. 
(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 he 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 Secretary to serve as Acting Governor of the Farm Credit Admin-
istration and such Acting Governor shall exercise and perform all 
functions, powers, and duties vested in the Farm Credit Administra-
tion 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. 
Personnel. 
RESPONSIBILITIES OF THE BOARD 
SEC. 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 of the officials or corporations under the control or supervision of 
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 func-
tions, 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 dele-
gating 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 per-
formed by the Governor. 
Report. 
OFFICES ABOLISHED AND FUNDS TRANSFERRED 
SEC. 7. (a) The offices of the Land Bank Commissioner, Production 
Credit Commissioner, Cooperative Bank Commissioner, and Inter-
mediate Credit Commissioner are hereby abolished. 
The Governor 
shall designate an officer or employee of the Farm Credit Administra-
tion 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 
of the Cooperative Bank Commissioner. The Governor shall designate 
an officer or employee of the Farm Credit Administration to serve at 
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 
Central Bank for 
Cooperatives. 
F e d e r a l 
Farm 
Mortgage Corp. 
394 
PUBLIC LAW 202-AUG. 6, 1953 
[67 STAT 
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 jurisdic-
tion 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) All assets, funds, contracts, property, and records used and 
employed in the execution of the functions, powers, and duties here-
tofore 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, allo-
cations, 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 by this Act vested in the Farm Credit 
Administration, shall be transferred to and vested in the Farm Credit 
Administration. 
(e) All 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 Admin-
istration 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 Admin-
istration with respect to and over National 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 pro-
duction credit corporation such of the duties, powers, and authority 
of the Farm Credit Administration with respect to and over produc-
tion 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 Admin-
istration to the jurisdiction and control of the Secretary of Agricul-
ture the Division of Cooperative Marketing (by whatever name now 
called) authorized and created under and by virtue of an Act of 
y'^usc^is^?. 
Congress of July 2, 1926 (Public, Numbered 450, Sixty-ninth Con-
67 S T A T . ] 
PUBLIC LAW 2 0 2 - A U G . 6, 1953 
395 
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 coop-
erative 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 23 of the Federal Farm Loan Act, as amended, is 
if use 901^*902. 
further amended by adding at the end thereof a new paragraph as 
follows: 
"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, said bank shall, 
after complying with the reserve requirements of the preceding para-
graphs of this section and before declaring any dividends to share-
holders, 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 end-
ing next before such tax is due, as certified to the Farm Credit Admin-
istration by the Secretary of the Treasury." 
SEC. 11. Section 6 of the Farm Credit Act of 1933 is amended by 
jf ftat,. 259^^^ 
adding at the end thereof a new paragraph as follows: 
"(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 
fs st_at. 263., 
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 earn-
ings 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 
12 use 1134Z. 
396 
PUBLIC LAW 202-AUG. 6, 1953 
[ & 7 S T AT 
46 Stat. 14. 
12 u s e 114 Id. 
48 Stat. 264. 
12 u s e 1134d. 
12, use 
1134/. 
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 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 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 sur-
plus account or devoted to the payment of dividends, as may be deter-
mined 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 Adminis-
tration or the Governor thereof, when paid, shall be credited to the 
revolving fund created under section 6 of the Agricultural Marketing 
Act, as amended." 
SEC. 13. Section 42 of the Farm Credit Act of 1933 is amended to 
read as follows: 
"The provisions of section 35, as amended, and the provisions of 
1134k, section 36, as amended, shall apply in the case of Banks for Coopera-
tives in the same manner and to the same extent as such provisions are 
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." 
50 Stat. 704. 
12 u s e 640b. 
MEMBERSHIP OF DISTRICT FARM CREDIT BOARDS 
SEC. 14. Section 5 (b) of the Farm Credit Act of 1937 is amended 
to read as follows: 
"(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 interme-
diate credit bank, production credit corporation, and regional bank 
for cooperatives of the district are located. Three of the seven mem-
bers 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 on 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 chair-
man, and shall appoint a secretary from within or without its member-
ship 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 
12 u s e 640d. 
67 S T A T . ] 
PUBLIC LAW 202-AUG. 6, 1953 
397 
year. 
The chairman shall preside at all meetings and the vice chair-
man 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 5 of the Farm Credit Act of 1937 is amended by 
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 asso-
ciations, and cooperatives which 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 circum-
stances and conditions: 
"(A) Whenever, as determined by the Farm Credit Administra-
tion, the sum of the capital stock held by national farm loan associa-
tions, surplus, and reserves of a Federal land bank shall equal or 
exceed 66% 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 sviccessors 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 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 produc-
tion credit associations (collectively) of a farm credit district shall 
equal or exceed 66% per centum oi the total of the capital stock, 
surplus, and reserves of the production credit associations (collec-
tively) 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 expireSj 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 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 
27000 O - 53 - 28 
398 
PUBLIC LAW 202-AUG. 6, 1953 
[67 S T A T . 
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 direc-
tor, 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 guar-
anty 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, 
That 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 condi-
tions 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 stock-
holders 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 pro-
duction credit associations, and next to cooperatives which are stock-
holders or subscribers to the guaranty fimd 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 eligible 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. If two directors are to be elected at the same election in any 
67 S T A T . ] 
PUBLIC LAW 202-AUG. 6, 1953 
399 
such district by any group, the election of the director to be elected 
by such group under section 5 (b) shall be first determined, and the 
^^nte, p. 396. 
person receiving the most votes for election under section 5 (d) (2) 
Ante, p. 397. 
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 notwith-
standing 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 non-
voting preferred stock, to be known as class C stock, which may be pur-
chased 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 dividends 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, lim-
itations, 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 
SEC. 17. (a) There are authorized to be appropriated such sums as 
may be necessary or appropriate for administering the provision of 
this Act: Provided, That the cost of examination and of administra-
tive 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 Agri-
culture Organic Act of 1944. 
ss stau ^740. 
(b) Farm Credit Administration may, within the limits of funds 
available therefor, and subject to provisions of law generally appli-
cable to Government agencies, make necessary expenditures for per-
sonnel 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 motor-
propelled 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. 
SEC. 18. This Act shall take effect one hundred and twenty days 
Effective date. 
400 
PUBLIC LAW 203-AUG. 7, 1953 
[67 S T A T . 
after the date of its enactment: Provided^ however^ That immediately 
following the enactment of this Act the Farm Credit Administration 
shall proceed with the designation of nominees as provided in section 
Ante, p. 390. 
4 ^
^
^
^ hereof and the members of the Federal Farm Credit Board 
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 dis-
charge of its duties upon the effective date of this Act; 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 Adminis-
tration. 
SEC. 19. All Acts or parts of Acts inconsistent with the provisions of 
this Act are hereby repealed to the extent of such inconsistency, 
cimfsef ^'' ^
^ ^
* '^ 
^^^- ^^- (^) I^ ^^y provision of this Act, or the application thereof 
to any person or circumstances, 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 August 6, 1953. 
Public Law 203 
CHAPTER 336 
August 7,1953 
A N A C T 
—[H' R« 6481]— 
Yov the relief of certain refugees, and orphans, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
Art^'of^iltsi!*^^*^ United States of America in Congress assembled^ That this Act may 
be cited as the "Refugee Relief Act of 1953". 
DEFINITIONS 
SEC. 
2. (a) "Refugee" means any person in a country or area 
which is neither Communist nor Communist-dominated, who because 
of persecution, fear of persecution, natural calamity or military oper-
ations is out of his usual place of abode and unable to return thereto, 
who has not been firmly resettled, and who is in urgent need of assist-
ance for the essentials of life or for transportation. 
(b) "Escapee" means any refugee who, because of persecution or 
fear of persecution on account of race, religion, or political opinion, 
fled from the Union of Soviet Socialist Republics or other Commu-
nist, Communist-dominated or Communist-occupied area of Europe 
including those parts of Germany under military occupation by the 
Union of Soviet Socialist Republics, and who cannot return thereto 
because of fear of persecution on account of race, religion or political 
opinion. 
(c) "German expellee" means any refugee of German ethnic origin 
residing in the area of the German Federal Republic, western sector 
of Berlin, or in Austria who was born in and was forcibly removed 
from or forced to flee from Albania, Bulgaria, Czechoslovakia, 
Estonia, Hungary, Latvia, Lithuania, Poland, Rumania, Union of 
Soviet Socialist Republics, Yugoslavia, or areas provisionally under 
the administration or control or domination of any such countries, 
except the Soviet zone of military occupation of Germany. 
(d) "Administrator" means the administrator of the Bureau of 
Security and Consular Affairs established in the Department of State 
8\js*c*im.' 
pursuant to subsection (b) of section 104 of the Immigration and 
Nationality Act.