period of postponement the bank will not foreclose such mortgage unless the property covered thereby is abandoned by the mortgagor or unless in the opinion of the Land Bank Commissioner such foreclosure is necessary for other reasons.

(c) Each such loan shall be secured by an assignment to the Land Bank Commissioner of the lien of the taxes and/or of the bank's mortgage with respect to which the loan is made: Provided, That the part of each such lien so assigned representing the interest and principal due and unpaid in any such mortgage which has been assigned to the farm loan registrar shall be subordinate to the existing lien of the bank for the balance of the indebtedness then or thereafter to become due under the terms of such mortgage; but the Land Bank Commissioner may require the bank to furnish additional collateral as security for such loan, if such collateral is available to the bank.

(d) The Land Bank Commissioner is authorized to make such rules and regulations as may be necessary to carry out the purposes of this section and to make the relief contemplated immediately available. (May 12, 1933, sec. 31, 48 Stat. 47; June 16, 1933, sec. 80 (a), 48 Stat. 273; June 3, 1935, sec. 17 (a), (b), 49 Stat. 318; Aug. 19, 1937, sec. 3, 50 Stat. 703; 12 U. S. C., sec. 823.) [Historical note.]

638-104. Insolvency; receivership; acquisition of assets by other banks, loans by acquiring bank in additional States.-In any case where a joint stock land bank has been, or may be, declared insolvent and placed in the hands of a receiver by the Federal Farm Loan Board [now Farm Credit Administration]*, any Federal land bank or joint-stock land bank may, in the manner as may be prescribed by the Federal Farm Loan Board [now Farm Credit Administration]* and with the approval of the Federal Farm Loan Board [now Farm Credit Adminis tration], acquire the assets and assume the liabilities of said joint stock land bank in the hands of a receiver. Any joint-stock land bank which has acquired or may hereafter acquire the assets and which has assumed or may hereafter assume the liabilities of another joint-stock land bank may, if authorized by the Federal Farm Loan Board [now Farm Credit Administration]*, make loans secured by first mortgages on farm lands within the States in which the other joint-stock land bank was authorized to make loans at the time of such acquisition, and the acquiring bank may, with the approval of the Federal Farm Loan Board [now Farm Credit Administration]*, continue to make loans in the States where it was authorized to make loans at the time of such acquisition: Provided, however, That the acquiring bank shall not be authorized to make loans at any one time in more than five States, of which one shall be the State in which the bank has its principal office, one shall be contiguous to such State, the other shall be the States in which the acquired joint-stock land banks were authorized to make loans at the time of such acquisition, and all of said five States shall be situated in contiguous territory. (July 17, 1916, sec. 16, 39 Stat. 374; Mar. 4, 1931, sec. 2, 46 Stat. 1548; 12 U. S. C., sec. 824.) 638-105. Powers of Farm Credit Administration; enumeration.-That the Federal Farm Loan Board [now Farm Credit Administration]* shall have power

(a) To organize and charter Federal land banks, and to charter national farm loan associations and joint-stock land banks subject to the provisions of this Act, and in its discretion to authorize them to increase their capital stock.

(b) To review and alter at its discretion the rate of interest to be charged by Federal land banks for loans made by them under the provisions of this Act, said rates to be uniform so far as practicable.

*See Ex. Or. 6084, p. 254, this volume.

(c) To grant or refuse to Federal land banks, or joint-stock land banks, authority to make any specific issue of farm loan bonds.

(d) To make rules and regulations respecting the charges made to borrowers on loans under this Act for expenses in appraisal, determination of title, and recording.

(e) To require reports and statements of condition and to make examinations of all banks or associations doing business under the provisions of this Act.

(f) To prescribe the form and terms of farm loan bonds, and the form, terms, and penal sums of all surety bonds required under this Act and of such other surety bonds as they shall deem necessary, such surety bonds to cover financial loss as well as faithful performance of duty.

(g) To require Federal land banks to pay forthwith to any Federal land bank their equitable proportion of any sums advanced by said land bank to pay the coupons of any other land bank, basing said required payments on the amount of farm loan bonds issued by each land bank and actually outstanding at the time of such requirement. (h) To suspend or to remove for cause any district director or director at large, or any registrar, appraiser, examiner, or other official appointed by the Farm Credit Administration under authority of section 3 of this Act, as amended, the cause of such suspension or removal to be communicated forthwith in writing by said Administration to the person suspended or removed, and in case of a district director or director at large to the proper Federal land bank, Federal intermediate credit bank, production credit corporation and regional bank for cooperatives.

(i) To exercise general supervisory authority over the Federal land banks, the national farm loan associations, and the joint-stock land banks herein provided for.

(j) To exercise such incidental powers as shall be necessary or requisite to fulfill its duties and carry out the purposes of this Act. (July 17, 1916, sec. 17, 39 Stat. 375; Aug. 19, 1937, sec. 9, 50 Stat. 707; 12 U. S. C., sec. 831.)

638-106. Applications for farm loan bonds; to whom made; collateral security; schedule.-That any Federal land bank, or joint stock land bank, which shall have voted to issue farm loan bonds under this Act, shall make written application to the Federal Farm Loan Board [now Farm Credit Administration]*, through the farm loan registrar of the district, for approval of such issue. With said application said land bank shall tender to said farm loan registrar as collateral security first mortgages on farm lands qualified under the provisions of section twelve, section fifteen, or section sixteen of this Act, or United States Government bonds, not less in aggregate amount than the sum of the bonds proposed to be issued. Said bank shall furnish with such mortgages a schedule containing a description thereof and such further information as may be prescribed by the Federal Farm Loan Board [now Farm Credit Administration]*. (July 17, 1916, sec. 18, 39 Stat. 375; 12 U. S. C., sec. 841.)

638-107. Verification of schedule; investigation and appraisal of secu rities tendered; decision as to application.-Upon receipt of such appli cation said farm loan registrar shall verify said schedule and shall transmit said application and said schedule to the Federal Farm Loan *See Ex. Or. 6084, p. 254, this volume.

Board [now Farm Credit Administration]*, giving such further information pertaining thereto as he may possess. The Federal Farm Loan Board [now Farm Credit Administration]* shall forthwith cause to be made such investigation and appraisement of the securities tendered as it shall deem wise, and it shall grant in whole or in part, or reject entirely, such application. (July 17, 1916, sec. 18, 39 Stat. 375; 12 U. S. C., sec. 842.)

638-108. Transmission of decisions to land bank and registrar; information to be furnished by registrar.-The Federal Farm Loan Board [now Farm Credit Administration]* shall promptly transmit its decision as to any issue of farm loan bonds to the land bank applying for the same and to the farm loan registrar of the district. Said registrar shall furnish, in writing, such information regarding any issue of farm loan bonds as the Federal Farm Loan Board [now Farm Credit Administration]* may at any time require. (July 17, 1916, sec. 18, 39 Stat. 375; 12 U. S. C., sec. 843.)

638-109. Written approval of issue requisite.-No issue of farm loan bonds shall be authorized unless the Federal Farm Loan Board [now Farm Credit Administration]* shall approve such issue in writing. (July 17, 1916, sec. 18, 39 Stat. 375; 12 U. S. C., sec. 844.)

638-110. Issue of farm loan bonds; duties of registrar on approval of bond issue. That whenever any farm loan registrar shall receive from the Federal Farm Loan Board [now Farm Credit Administration]* notice that it has approved any issue of farm loan bonds under the provisions of section eighteen he shall forthwith take such steps as may be necessary, in accordance with the provisions of this Act, to insure the prompt execution of said bonds and the delivery of the same to the land bank applying therefor. (July 17, 1916, sec. 19, 39 Stat. 376; 12 U. S. C., sec. 851.)

638-111. Rejection of application; return of collateral security.Whenever the Federal Farm Loan Board [now Farm Credit Administration]* shall reject entirely any application for an issue of farm loan bonds, the first mortgages and bonds tendered to the farm loan registrar as collateral security therefor shall be forthwith returned to said land bank by him. (July 17, 1916, sec. 19, 39 Stat. 376; 12 U.S. C., sec. 852.)

638-112. Disposition of collateral security on approval of application.Whenever the Federal Farm Loan Board [now Farm Credit Administration]* shall approve an issue of farm loan bonds, the farm loan registrar having the custody of the first mortgages and bonds tendered as collateral security for such issue of bonds shall retain in his custody those first mortgages and bonds which are to be held as collateral security, and shall return to the bank owning the same any of said mortgages and bonds which are not to be held by him as collateral security. The land bank which is to issue said farm loan bonds shall transfer to said registrar, by assignment, in trust, all first mortgages and bonds which are to be held by said registrar as collateral security, said assignment providing for the right of redemption at any time by payment as provided in this Act and reserving the right of substitution of other mortgages qualified under sections twelve, fifteen, and sixteen of this Act. Said mortgages and bonds shall be deposited in such deposit vault or bank as the

*See Ex. Or. 6084, p. 254, this volume.

Federal Farm Loan Board [now Farm Credit Administration]* shall approve, subject to the control of said registrar and in his name as trustee for the bank issuing the farm loan bonds and for the prospective holders of said farm loan bonds. (July 17, 1916, sec. 19, 39 Stat. 376; 12 U. S. C., sec. 853.)

638-113. Mortgages eligible as collateral.-No mortgage shall be accepted by a farm-loan registrar from a land bank as part of an offering to securing farm-loan bonds, either originally or by substitution, except first mortgages made subject to the conditions prescribed in sections 4, 7, 12, 15, and 16: Provided, That such registrar, when authorized and directed to do so by the Federal Farm Loan Board [now Farm Credit Administration]*, shall accept or retain in his custody as collateral, if otherwise eligible under the provisions of such sections, any first mortgage in connection with which the land bank depositing the same has agreed to defer for a period of not more than ten years the collection of the principal portion of maturing installments and to accept payment of the aggregate amount of such principal on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable thereon and in addition thereto such amounts to be applied on the principal after the expiration of the period of deferment as will extinguish the debt within an agreed period of not more than forty years from the date of such agreement. (July 17, 1916, sec. 19, 39 Stat. 376; Mar. 4, 1933, sec. 6 (a), 47 Stat. 1549; 12 U. S. C., sec. 854.)

638-114. Registrar's duty respecting amount of collateral; United States bonds or cash in lieu of mortgages withdrawn.-It shall be the duty of each farm loan registrar to see that the farm loan bonds delivered by him and outstanding do not exceed the amount of collateral security pledged therefor. Such registrar may, in his discretion, temporarily accept, in place of mortgages withdrawn, United States Government bonds or cash. (July 17, 1916, sec. 19, 39 Stat. 376; 12 U. S. C., sec. 855.)

638-115. Additional security.-The Federal Farm Loan Board [now Farm Credit Administration]* may, at any time, call upon any land bank for additional security to protect the bonds issued by it. (July 17, 1916, sec. 19, 39 Stat. 376; 12 U. S. C., sec. 856.)

638-116. Purchase money mortgages as collateral in lieu of mortgages withdrawn. Such farm-loan registrar shall also accept purchase money mortgages as collateral security in place of mortgages withdrawn. The banks shall have power to execute all necessary conveyances, transfers, and assignments to carry out this provision. (July 17, 1916, sec. 19, 39 Stat. 376; Mar. 4, 1933, sec. 6 (b), 47 Stat. 1549; 12 U. S. C., sec. 857.)

638-117. Form of farm loan bonds; denominations; minimum and maximum periods; interest coupons; rates of interest.-That bonds provided for in this Act shall be issued in denominations of $40, $100, $500, $1,000, and such larger denominations as the Federal Farm Loan Board [now Farm Credit Administration]* may authorize; they shall run for specified minimum and maximum periods, subject to payment and retirement, at the option of the land bank, at any time after the minimum period specified in the bonds, which shall not be longer than

*See Ex. Or. 6084, p. 254, this volume.

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ten years from the date of their issue. They shall have interest coupons attached, payable semiannually, and shall be issued in series of not less than $50,000, the amount and terms to be fixed by the Federal Farm Loan Board [now Farm Credit Administration].* They shall bear a rate of interest not to exceed 512 per centum per annum, but no bonds issued or sold after June 30, 1923, shall bear a rate of interest to exceed 5 per centum per annum. (July 17, 1916, sec. 20, 39 Stat. 377; Apr. 20, 1920, sec. 5, 41 Stat. 571; Mar. 4, 1921, 41 Stat. 1362; Aug. 13, 1921, 42 Stat. 159; 12 U. S. C., sec. 861.)

638-118. Rules and regulations as to payment.-The Federal Farm Loan Board [now Farm Credit Administration]* shall prescribe rules and regulations concerning the circumstances and manner in which farm loan bonds shall be paid and retired under the provisions of this Act. (July 17, 1916, sec. 20, 39 Stat. 377; 12 U. S. C., sec. 862.)

638-119. Delivery to bank.-Farm loan bonds shall be delivered through the registrar of the district to the bank applying for the same. (July 17, 1916, sec. 20, 39 Stat. 377; 12 U. S. Č., sec. 863.)

638-120. Preparation; custody of plates and dies; exchange for registered bonds; reexchange for coupons.-In order to furnish farm loan bonds for delivery at the Federal land banks and joint stock land banks, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provisions of this Act, as the Federal Farm Loan Board [now Farm Credit Administration]* may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the Federal Farm Loan Board [now Farm Credit Administration]*. The engraved plates, dies, bed-pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. Any expenses incurred in the preparation, custody, and delivery of such farm loan bonds shall be paid by the Secretary of the Treasury from any funds in the Treasury not otherwise appropriated: Provided, however, That the Secretary shall be reimbursed for such expenditures by the Federal Farm Loan Board [now Farm Credit Administration]* through assessment upon the farm land banks in proportion to the work executed. They may be exchanged into registered bonds of any amount, and reexchanged into coupon bonds, at the option of the holder, under rules and regulations to be prescribed by the Federal Farm Loan Board [now Farm Credit Administration]*. (July 17, 1916, sec. 20, 39 Stat. 377; 12 U. S. C., sec. 864.) [Effective July 1, 1935, the permanent appropriation provided for in this section was repealed by Act of June 26, 1934, sec. 1, 48 Stat. 1224.]

638-121. Special provisions; land banks as bound by acts of officers and Farm Credit Administration in issue of bonds.-That each land bank shall be bound in all respects by the acts of its officers in signing and issuing farm loan bonds, and by the acts of the Federal Farm Loan Board [now Farm Credit Administration]* in authorizing their issue. (July 17, 1916, sec. 21, 39 Stat. 377; 12 U. S. C., sec. 871.) 638-122. Liability of each Federal land bank for bonds issued by it and by other Federal land banks.-Every Federal land bank issuing farm loan bonds shall be primarily liable therefor, and shall also be liable,

*See Ex. Or. 6084, p. 254, this volume.