COMMODITY CREDIT CORPORATION CHARTER

MONDAY, JANUARY 19, 1948

UNITED STATES SENATE,

COMMITTEE ON AGRICULTURE AND FORESTRY,

Washington, D. C.

The committee met, pursuant to call, at 10:20 a. m., in room 324, Senate Office Building, Senator Arthur Capper, chairman, presiding. Present: Senators Capper (chairman), Aiken, Bushfield, Wilson, Young, Thye, Ellender, and Lucas.

The CHAIRMAN. The commmittee will come to order.

We are here today to consider S. 1322, a copy of which we will insert into the record at this point.

(S. 1322 is as follows:)

[S. 1322, 80th Cong., 1st sess.]

A BILL To provide a Federal charter for the Commodity Credit Corporation

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Commodity Credit Corporation Charter Act."

SEC. 2. CREATION AND PURPOSE.—For the purpose of promoting the general welfare by stabilizing, supporting, and protecting farm income and prices, by assisting in the maintenance of balanced and adequate supplies of agricultural commodities, products thereof, foods, feeds, and fibers (hereinafter collectively referred to as "agricultural commodities"), and by facilitating the orderly distribution of agricultural commodities, there is hereby created a body corporate to be known as the Commodity Credit Corporation (hereinafter referred to as the "Corporation"), which shall be an agency and instrumentality of the United States, within the Department of Agriculture, subject to the general direction and control of the Secretary of Agriculture (hereinafter referred to as the "Secretary").

SEC. 3. OFFICES.-The Corporation may establish offices in such place or places as it may deem necessary or desirable in the conduct of its business. SEC. 4. GENERAL POWERS.-The Corporation

(a) Shall have succession in its corporate name.

(b) May adopt, alter, and use a corporate seal, which shall be judicially noticed.

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(c) May sue and be sued, but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Corporation or its property. The district courts of the United States, including the district courts of the District of Columbia and of any Territory or possession, shall have exclusive original jurisdiction of all suits brought by or against the Corporation: Provided, That the Corporation may intervene in any cour+ suit, action, or proceeding in which it has an interest. A tion shall be brought in the District of Columbia, ci laintiff resides or is engaged in business. No suit against te all be allowed unless it shall have been brought within two years? accrued on which suit is brought. All suits against the Corporation saŁ De tried by the court without a jury. Notwithstanding any other provision of this Act, the Federal Tort Claims Act (Public Law 601, Seventy-ninth Congress) shall be applicable to the Corporation.

(d) May adopt, amend, and repeal bylaws, rules, and regulations governing the manner in which its business may be conducted and the powers vested in it may be exercised.

(e) Shall have all the rights, privileges, and immunities of the United States, including, but not limited to, the right to priority of payment with respect to debts due from insolvent, deceased, or bankrupt debtors, and immunity from the imposition of court costs, fees, and charges, from the allowance of interest on claims and judgments, and from State and local statutes of limitations on suits, actions, or proceedings. The Corporation may assert such rights, privileges, and immunities in any suit, action, or proceeding.

(f) Shall be entitled to the use of the United States mails in the same manner and upon the same conditions as the executive departments of the Federal Government.

(g) May enter into and carry out such contracts or agreements as it deems necessary or desirable in the conduct of its business. The Corporation may, whenever it deems it necessary or desirable in the conduct of its business, consent to the modification of any term or condition of any contract or agreement of any kind to which it is a party. State and local regulatory laws or rules shall not be applicable with respect to contracts or agreements of the Corporation or the parties thereto to the extent that such contracts or agreements provide that such laws or rules shall not be applicable, or to the extent that such laws or rules are inconsistent with such contracts or agreements.

(h) May in any manner acquire, hold, and dispose of such real and personal property or any interest therein as it deems necessary or desirable in the conduct of its business.

(i) May borrow money subject to any provision of law applicable to the Corporation.

(j) Shall determine the character of and the necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid.

(k) Shall have authority to make final and conclusive settlement and adjustment of any claims by or against the Corporation or the accounts of its fiscal officers.

(1) May make such loans and advances of its funds as it deems necessary or desirable in the conduct of its business.

(m) May conduct researches, surveys, and investigations relating to the conduct of its business.

(n) Shall have such powers as may be necessary or appropriate for the exercise of the powers specifically vested in the Corporation, and all such incidental powers as are customary in corporations generally.

SEC. 5. SPECIFIC POWERS.-In the fulfillment of its purposes and in carrying out its annual budget programs submitted to and approved by the Congress pursuant to the Government Corporation Control Act (31 U. S. C., 1940 edition, Supp. V, 841), the Corporation is authorized to use its general powers only to(a) Support the prices of agricultural commodities through loans, purchases, payments, and other operations.

(b) Make available materials and facilities required in connection with the production and marketing of agricultural commodities.

(c) Procure agricultural commodities for sale to other Government agencies, foreign governments, and domestic, foreign, or international relief or rehabilitation agencies, and to meet domestic requirements.

(d) Remove and dispose of or aid in the removal or disposition of surplus agricultural commodities.

(e) Increase the domestic consumption of agricultural commodities by expanding or aiding in the expansion of domestic markets or by developing or aiding in the development of new and additional markets, marketing facilities, and uses for such commodities.

(f) Export or cause to be exported, or aid in the development of foreign markets for, agricultural commodities.

(g) To the extent specifically authorized by law, make payments with respect to, or purchases for resale at a loss of, agricultural commodities, for the purpose of maintaing the maximum prices established under the Emergency Price Control Act of 1942, as amended.

(h) Carry out such other operations as the Congress may authorize or provide for.

SEC. 6. EXISTING STATUTES APPLICABLE TO THE CORPORATION.-The Federal. statutes applicable to Commodity Credit Corporation, a Delaware corporation, shall be applicable to the Corporation. Commodity Credit Corporation, a Dela

ware corporation, shall cease to be an agency of the United States as provided in section 7 (a) of the Act of January 31, 1935, as amended (15 U. S. C., 1940 edition, Supp. V, 713 (a)).

SEC. 7. CAPITAL STOCK.-The Corporation shall have a capital stock of $100,000,000, which shall be subscribed by the United States. Such subscription shall be deemed to be fully paid by the transfer of assets to the Corporation pursuant to section 16 of this Act. The Secretary is hereby authorized and directed to receive such stock and to exercise, on behalf of the United States, any and all rights of the United States arising out of the ownership of such stock.

SEC. 8. FUNDS.-The Corporation is authorized to use in the conduct of its business all its funds and other assets, including capital and net earnings therefrom, and all funds and other assets which have been or may hereafter be transferred or allocated to, borrowed by, or otherwise acquired by it.

SEC. 9. DIRECTORS.-The management of the Corporation shall be vested in a Board of Directors (hereinafter referred to as the "Board"), subject to the general direction and control of the Secretary, who shall be a director and serve as Chairman of the Board. The Board shall consist of not less than three or more than eleven persons employed in the Department of Agriculture, who shall be appointed by and hold office at the pleasure of the Secretary. The directors so appointed shall receive no compensation for their services as directors. Nothing herein contained shall preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

SEC. 10. PERSONNEL OF CORPORATION.-The Secretary shall appoint such officers and employees as may be necessary for the conduct of the business of the Corporation, define their authority and duties, delegate to them such of the powers vested in the Corporation as he may determine, require that such of them as he may designate be bonded and fix the penalties therefor. The Corporation may pay the premium of any bond or bonds. With the exception of experts, appointments shall be made pursuant to the civil-service laws and the Classification Act of 1923, as amended (5 U. S. C., 1940 edition, 661).

SEC. 11. COOPERATION WITH OTHER GOVERNMENTAL AGENCIES.-The Corporation may, with the consent of the agency concerned, accept and utilize, on a compensated or uncompented basis, the officers, employees, services, facilities, and information of any agency of the Federal Government, including any bureau, office, administration, or other agency of the Department of Agriculture, and of any State, the District of Columbia, any Territory or possession, or any political subdivision thereof. The Corporation may allot to any bureau, office, administration, or other agency of the Department of Agriculture or transfer to such other agencies as it may request to assist it in the conduct of its business any of the funds available to it for administrative expenses. The personnel and facilities of the Corporation may, with the consent of the Corporation, be utilized on a reimbursable basis by any agency of the Federal Government, including any bureau, office, administration, or other agency of the Department of Agriculture, in the performance of any part or all of the functions of such agency.

SEC. 12. UTILIZATION OF ASSOCIATIONS AND TRADE FACILITIES.-The Corporation may, in the conduct of its business, utilize on a contract or fee basis, committees or associations of producers, producer-owned and producer-controlled cooperative associations, and trade facilities.

SEC. 13. RECORDS: ANNUAL REPORT.—The Corporation shall at all times maintain complete and accurate books of account and shall file annually with the Secretary a complete report as to the business of the Corporation, a copy of which shall be forwarded by the Secretary to the President for transmission to the Congress.

SEC. 14. INTEREST OF MEMBERS OF THE CONGRESS.-The provisions of section 1 of the Act of February 27, 1877, as amended (41 U. S. C., 1940 edition, 22), shall apply to all contracts or agreements of the Corporation, except contracts or agreements of a kind which the Corporation may enter into with farmers participating in a program of the Corporation.

SEC. 15. CRIMES AND OFFENSES.

FALSE STATEMENTS; OVERVALUATION OF SECURITIES

(a) Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining for himself or another money, property, or anything of value, under this Act, or under any other Act applicable to the Corporation, shall, upon conviction thereof, be punished by a fine of not more than 10,000 or by imprisonment for not more than five years, or both.

EMBEZZLEMENT, AND SO FORTH; FALSE ENTRIES; FRAUDULENT ISSUE OF OBLIGATIONS OF CORPORATION

(b) Whoever, being connected in any capacity with the Corporation or any of its programs, (i) embezzles, abstracts, purloins, or willfully misapplies any money, funds, securities, or other things of value, whether belonging to the Corporation or pledged or otherwise entrusted to it; or (ii) with intent to defraud the Corporation, or any other body, politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or statement of, or to, the Corporation, or draws any order, or issues, puts forth or assigns any note or other obligation or draft, mortgage, judgment, or decree thereof; or (iii) with intent to defraud the Corporation, participates or shares in, or receives directly or indirectly any money, profit, property, or benefits through any transaction, loan, commission, contract, or any other act of the Corporation, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

LARCENY; CONVERSION OF PROPERTY

(c) Whoever shall willfully steal, conceal, remove, dispose of, or convert to his own use or to that of another any property owned or held by, or mortgaged or pledged to, the Corporation, shall, upon conviction thereof, be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

CONSPIRACY TO COMMIT OFFENSE

(d) Whoever conspires with another to accomplish any of the acts made unlawful by the preceding provisions of this section shall, upon conviction thereof, be subject to the same fine or imprisonment, or both, as is applicable in the case of conviction for doing such unlawful acts.

GENERAL STATUTES APPLICABLE

(e) All the general penal statutes relating to crimes and offenses against the United States shall apply with respect to the Corporation, its property, money, contracts and agreements, employees, and operations: Provided, That such general penal statutes shall not apply to the extent that they relate to crimes and offenses punishable under subsections (a), (b), (c), and (d) of this section: Provided further, That sections 114 and 115 of the Act of March 4, 1909, as amended (18 U. S. C., 1940 edition, 204, 205) shall not apply to contracts or agreements of a kind which the Corporation may enter into with farmers participating in a program of the Corporation.

SEC. 16. TRANSFER OF ASSETS OF COMMODITY CREDIT CORPORATION, A DELAWARE CORPORATION.-The assets, funds, property, and records of Commodity Credit Corporation, a Delaware corporation, are hereby transferred to the Corporation. The rights, privileges, and powers, and the duties and liabilities of Commodity Credit Corporation, a Delaware corporation, in respect to any contract, agreement, loan, account, or other obligation shall become the rights, privileges, and powers, and the duties and liabilities, respectively, of the Corporation. The enforceable claims of or against Commodity Credit Corporation, a Delaware corporation, shall become the claims of or against, and may be enforced by or against the Corporation.

SEC. 17. DISSOLUTION OF DELAWARE CORPORATION.-The Secretary, representing the United States as the sole owner of the capital stock of Commodity Credit Corporation, a Delaware corporation, is hereby authorized and directed to institute or cause to be institued such proceedings as are required for the dissolution of said corporation under the laws of the State of Delaware. The costs of such dissolution of said corporation shall be borne by the Corporation.

SEC. 18. CORPORATION ADMINISTRATIVE ACCOUNTS.-In the event that the personnel or facilities of any bureau, office, administration, or other agency of or within the Department of Agriculture, including the Corporation, are utilized in the performance of functions, including those of the Corporation, for which separate funds are available, the Secretary of the Treasury is authorized and directed, upon the request of the Secretary, to establish one or more separate accounts into which there may be transferred, by advance payment or reimbursement, all or any part, as determined by the Secretary, of the funds available