upon presentation of farm loan bond coupons, for interest payments due upon any farm loan bonds issued by other Federal land banks and remaining unpaid in consequence of the default of such other land banks; and every such bank shall likewise be liable for such portion of the principal of farm loan bonds so issued as shall not be paid after the assets of any such other land banks shall have been liquidated and distributed: Provided, That such losses, if any, either of interest or of principal, shall be assessed by the Federal Farm Loan Board [now Farm Credit Administration]* against solvent land banks liable therefor in proportion to the amount of farm loan bonds which each may have outstanding at the time of such assessment. (July 17, 1916, sec. 21, 39 Stat. 377; 12 U. S. C., sec. 872.)

638-123. Federal land banks; action of directors respecting bond liability. Every Federal land bank shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on farm loan bonds as provided in this section. (July 17, 1916, sec. 21, 39 Stat. 377; 12 U. Š. C., sec. 873.)

638-124. Signing and attesting bonds; certificate of Land Bank Commissioner. Every farm-loan bond issued by a Federal land bank shall be signed by its president or vice president and attested by its secretary or assistant secretary. For the purpose of signing such bonds the board of directors of any Federal land bank is authorized to select a vice president who need not be a member of the board of directors; such bonds shall also contain in the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of the Federal Farm Loan Act, has the approval in form and issue of the Federal Farm Loan Board [now Farm Credit Administration]*, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security of United States Government bonds, or first mortgages on farm lands, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, sec. 21, 39 Stat. 377; Apr. 20, 1920, sec. 6, 41 Stat. 571; June 16, 1933, secs. 75 (b), 80 (a), 48 Stat. 271, 273; 12 U. S. C., sec. 874.)

638-125. Consolidated bonds; authority of Federal land banks to issue and sell. Whenever it shall appear desirable to issue consolidated bonds of the twelve Federal land banks and to sell them through a common selling agency, and the Federal land banks shall, by resolution, consent to the same, the banks may issue and sell said bonds as hereinafter provided. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; 12 U. S. C., sec. 875.)

638-126. Consolidated bonds; signature and attestation; joint and several obligations; recitals.-Every bond so issued shall be signed by the Land Bank Commissioner and attested by any Deputy Land Bank Commissioner, and their signatures may be either written or engraved thereon and shall recite in the face of the bond the fact that it is the joint and several obligation of the twelve Federal land banks, and shall in all respects be governed by the provisions of the Federal Farm Loan Act not inconsistent herewith. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; June 16, 1933, secs. 80 (a), 81, 48 Stat. 273; 12 U. S. C., sec. 876.)

638-127. Consolidated bonds; where payable.-The consolidated bonds issued under this provision shall be made payable at any Federal land bank, and may be made payable at any Federal reserve bank or banks designated in the face of the bond. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; 12 U. S. C., sec. 877.)

638-128. Consolidated bonds; act of Commissioner binding on banks.— Each Federal land bank on whose behalf consolidated bonds shall be issued under this provision shall in all respects be bound by the Act of the Land Bank Commissioner and the [attesting] Deputy Land Bank Commissioner. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; Mar. 4, 1925, sec. 6, 43 Stat. 1264; June 16, 1933, secs. 80 (a), 81, 48 Stat. 273; 12 U. S. C., sec. 878.)

638-129. Consolidated bonds; action of directors respecting bond liability. Every Federal land bank, before participation in a consoli dated issue, as herein provided, shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on Federal farm loan bonds as provided in this section, and be bound by the action of the Land Bank Commissioner and any Deputy Land Bank Commissioner executing the same. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; June 16, 1933, secs. 80 (a), 81, 48 Stat. 273; 12 U. S. C., sec. 879.)

638-130. Certificate of Land Bank Commissioner.-Every farm loan bond issued hereunder shall contain on the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of Title I of the Federal Farm Loan Act, has the approval in form and issue of the Federal Farm Loan Board [now Farm Credit Administration]*, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security consisting of obligations of the United States Government, or first mortgages on farm lands, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; June 16, 1933, secs. 75 (b), 80 (a), 48 Stat. 271, 273; 12 U. S. C., sec. 880.)

638-131. Farm loan bonds, special provisions of; consolidated bonds; participation of Federal land bank in issue; collateral.

Approval of issue requisite; collateral to be held separate from collective security for individual bonds; payments on pledged mortgages as trust funds. When any Federal land bank shall desire to participate in a consolidated issue of farm-loan bonds it shall make application to the Federal Farm Loan Board [now Farm Credit Administration]* for the approval on its behalf of such issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and no banks shall participate in such consolidated issue until such application has been approved by the Federal Farm Loan Board [now Farm Credit Administration].* Such approved farm mortgages or obligations of the United States Government shall be held by each farm-loan registrar as collateral security for consolidated bonds, separate and apart from the mortgages and/or Government bonds held by him as collective security for the bonds previ

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

ously issued or assumed individually by the Federal land bank of his district. Amortization and other payments on the principal of first mortgages held by a farm-loan registrar as collateral security for the issue of consolidated farm-loan bonds shall constitute a trust fund in the hands of the Federal land bank receiving the same and shall be applied or employed in the manner provided in section 22 with respect to payments on principal of first mortgages held as collateral for farm-loan bonds of individual banks.

Notice to registrar of disposition of payments on mortgages held as collateral; maintenance of collateral by banks. Every Federal land bank shall notify the farm-loan registrar of the disposition of all payments made on the principal of mortgages held as collateral security for the issue of consolidated farm-loan bonds, and said registrar is authorized, at his discretion to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. Each bank shall maintain with the farm-loan registrar of its district collateral security for the issue of consolidated farm-loan bonds in an amount at least equal to the face amount of such bonds issued on its behalf. Withdrawal of collateral on surrender of bonds. When any Federal land bank shall surrender to the farm-loan registrar of its district any consolidated Federal farm-loan bonds, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds previously pledged as collateral in connection with any issue of consolidated farm-loan bonds to an amount equal to the consolidated farm-loan bonds so surrendered and it shall be the duty of such registrar to permit and direct the delivery of such mortgages and bonds to such land bank.

Additional collateral; payment of bonds and coupons.-The Federal Farm Loan Board [now Farm Credit Administration]* may at any time call upon any Federal land bank for additional security to protect the consolidated bonds issued under the provisions of this section. Each bank shall pay when due, without notice, all bonds and coupons issued on its behalf hereunder.

Power of Federal land bank to exchange consolidated bonds for individual bonds. Every Federal land bank shall have power to exchange consolidated farm-loan bonds for farm-loan bonds previously issued or assumed by it individually, with the approval of and under rules and regulations promulgated by the Federal Farm Loan Board [now Farm Credit Administration].* (July 17, 1916, sec. 21,

39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; Mar. 4, 1933, sec. 7, 47 Stat. 1550; 12 U. S. C., sec. 881 (a) to (e).)

638-132. Consolidated bonds; failure of participating bank to pay interest or principal; liability of other banks.-If any Federal land bank shall fail to pay its proportion of interest or principal as herein prescribed, the Federal Farm Loan Board [now Farm Credit Administration]* shall immediately call upon the other Federal land banks for the amount necessary to make said payment, the assessments to be made in proportion to the capital stock of each, which assessments shall be forthwith paid by said banks. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; 12 U. S. C., sec. 882.)

638-133. Bond committee and subcommittee. The presidents of the

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

twelve Federal land banks shall constitute the bond committee of the Federal land banks and shall select a chairman from among their number. The vice president may act in place of the president on the president's request or in case he fails to act. The bond committee may appoint from among their number a subcommittee consisting of three members, to hold office for a period of one year or until their successors have been appointed, may from among their number fill any vacancies on the subcommittee and may dismiss at pleasure the members of the subcommittee or any of them. The subcommittee, if appointed, shall have such authority to exercise the powers and to perform the functions of the bond committee as the bond committee may authorize and shall be subject to all provisions of law relating to the duties and expenses of the bond committee. The committee shall select one of the members of the subcommittee to be chairman and one of the members of the subcommittee to be secretary of the subcommittee. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; Aug. 19, 1937, sec. 18, 50 Stat. 709; 12 U. S. C., sec. 883.)

638-134. Consolidated bonds; duties of bond committee.-When an issue of consolidated bonds is contemplated, the bond committee shall determine the amount of such issue, the rate of interest which it is to bear, and the participation of the several banks therein, and submit their recommendations to the Federal Farm Loan Board [now Farm Credit Administration]* for approval. When approved by the Federal Farm Loan Board [now Farm Credit Administration]* the bonds shall be executed by the Land Bank Commissioner and any Deputy Land Bank Commissioner, as herein provided. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; June 16, 1933, secs. 80 (a), 81, 48 Stat. 273; 12 U. S. C., sec. 884.)

638-135. Consolidated bonds; expenses.-The expenses of the bond committee and of the sale of bonds shall be charged against the several land banks in proportion to their participation in the proceeds. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; 12 U. S. C., sec. 885.)

638-136. Compensation of members of bond committee. The presidents of the Federal land banks shall receive no additional compensation for their services as members of the bond committee, but shall be paid necessary traveling expenses. (July 17, 1916, sec. 21, 39 Stat. 377; Mar. 4, 1923, sec. 308, 42 Stat. 1476; 12 U. S. C., sec. 886.)

638-137. Interest payments; payments upon mortgages pledged as collateral for bond issue; notice to registrar; cancellation of mortgage and discharge of lien upon full payment.-That whenever any Federal land bank, or joint stock land bank, shall receive any interest, amortization, or other payments upon any first mortgage or bond pledged as collateral security for the issue of farm loan bonds, it shall forthwith notify the farm loan registrar of the items so received. Said registrar shall forthwith cause such payment to be duly credited upon the mortgage entitled to such credit. Whenever any such mortgage is paid in full, said registrar shall cause the same to be canceled and delivered to the proper land bank, which shall promptly satisfy and discharge the lien of record and transmit such canceled mortgage to the original maker thereof, or his heirs, administrators, executors, or assigns. (July 17, 1916, sec. 22, 39 Stat. 378; 12 U. S. C., sec. 891.)

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

638-138. Withdrawal of collateral and substitution of other security.Upon written application by any Federal land bank, or joint stock land bank, to the farm loan registrar, it may be permitted, in the discretion of said registrar, to withdraw any mortgages or bonds pledged as collateral security under this Act, and to substitute therefor other similar mortgages or United States Government bonds not less in amount than the mortgages or bonds desired to be withdrawn. (July 17, 1916, sec 22, 39 Stat. 378; 12 U. S. C., sec. 892.)

638-139. Place and mode of payment of bonds or interest thereon; can. cellation on payment.-Whenever any farm loan bonds, or coupons or interest payments of such bonds, are due under their terms, they shall be payable at the land bank by which they were issued, in gold or lawful money, and upon payment shall be duly canceled by said bank. At the discretion of the Federal Farm Loan Board [now Farm Credit Administration]*, payment of any farm loan bond or coupon or interest payment may, however, be authorized to be made at any Federal land bank, any joint stock land bank, or any other bank, under rules and regulations to be prescribed by the Federal Farm Loan Board [now Farm Credit Administration]*. (July 17, 1916, sec. 22, 39 Stat. 378; 12 U. S. C., sec. 893.)

638-140. Withdrawal of collateral security on surrender of bonds.When any land bank shall surrender to the proper farm loan registrar any farm loan bonds of any series, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds pledged as collateral security for any of said series of farm loan bonds to an amount equal to the farm loan bonds so surrendered, and it shall be the duty of said registrar to permit and direct the delivery of such mortgages and bonds to such land bank. (July 17, 1916, sec. 22, 39 Stat. 378; 12 U. S. C., sec. 894.)

638-141. Interest payments on pledged mortgages.-Interest payments on hypothecated first mortgages shall be at the disposal of the land bank pledging the same, and shall be available for the payment of coupons and the interest of farm loan bonds as they become due. (July 17, 1916, sec. 22, 39 Stat. 378; 12 U. S. C., sec. 895.)

638-142. Payment of bonds, coupons, and interest at maturity.-Whenever any bond matures, or the interest on any registered bond is due or the coupon on any coupon bond matures, and the same shall be presented for payment as provided in this Act, the full face value thereof shall be paid to the holder. (July 17, 1916, sec. 22, 39 Stat. 378; 12 U. S. C., sec. 896.)

638-143. Payment of bonds, coupons and interest at maturity; trust fund from payments on mortgages held as collateral.-Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of farm loan bonds shall constitute a trust fund in the hands of the Federal land bank or joint stock land bank receiving the same, and shall be applied or employed as follows:

In the case of a Federal land bank

(a) To pay off farm loan bonds issued by or in behalf of said bank as they mature.

(b) To purchase at or below par Federal farm loan bonds.

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