Imágenes de páginas
PDF
EPUB

bank's investment therein at the time of acquirement of such real estate.

Fifth. Depositing securities and funds with reserve banks.To deposit its securities and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as may be agreed.

Sixth. Receiving deposits from associations. To accept deposits of securities or of current funds from national farm loan associations holding its shares, but to pay no interest on such deposits.

Seventh. Borrowing money.—To borrow money, to give security therefor, and to pay interest thereon.

Eighth. Buying and selling bonds of United States and Federal Farm Mortgage Corporation. To buy and sell United States bonds and Federal Farm Mortgage Corporation bonds.

Ninth. Charging fees for loans.To charge applicants for loans and borrowers, under rules and regulations promulgated by the Farm Credit Administration, reasonable fees not exceeding the actual cost of appraisal and determination of title. Legal fees and recording charges imposed by law in the State where the land to be mortgaged is located may also be included in the preliminary costs of negotiating mortgage loans. The borrower may pay such fees and charges or he may arrange with the Federal land bank making the loan to advance the same, in which case said expenses shall be made a part of the face of the loan and paid off in amortization payments. Such addition to the loan shall not be permitted to increase said loan above the limitations provided in section 771 of this chapter.

Tenth. Extension of obligations unpaid under terms of mortgages.—When in the judgment of the directors conditions justify it, to extend, in whole or in part, any obligation that may be or become unpaid under the terms of any mortgage, and to accept payment of any such obligation during a period of five years or less from the date of such extension in such amounts as may be agreed upon at the date of making such extension. The sum of $25,000,000 of the amount authorized to be appropriated under section 698 of this chapter shall be used exclusively for the purpose of supplying any bank with funds to use in its operations in place of any amounts of which such bank may be deprived by reason of extensions made as provided in this paragraph. The terms of any such extension shall be such as will not defer the collection of any obligaton due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any such extension, or in the case of any deferment of principal as provided in paragraph "Twelfth" of section 771 of this chapter, it shall be the duty of the Secretary of the Treasury, on behalf of the United States, upon the request of the Federal land bank making the extension, and with the approval of the Land Bank Commissioner, to subscribe at such periods as the Commissioner shall determine, to the paid-in surplus of such bank an amount equal to the amount of all such extensions and deferments made by the bank during the preceding period. Such sub

scriptions shall be subject to call, in whole or in part, by the bank with the approval of the Commissioner upon thirty days' notice. To enable the Secretary of the Treasury to make such subscriptions to the paid-in surplus of the Federal land banks, there is hereby authorized to be appropriated the sum of $50,000,000, to be immediately available and remain available until expended. Upon payment to any Federal land bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Land Bank Commissioner. The amount of any subscriptions to the paid-in surplus of any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Land Bank Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion the bank has resources available therefor. The unexpended balances of the funds appropriated by the Fourth Deficiency Act, fiscal year 1933, approved June 16, 1933 (48 Stat. 279), the Emergency Appropriation Act, fiscal year 1935, approved June 19, 1934 (48 Stat. 1060), the Second Deficiency Appropriation Act, fiscal year 1935, approved August 12, 1935 (49 Stat. 592), the First Deficiency Appropriation Act, fiscal year 1936, approved June 22, 1936 [49 Stat. 1597], the Treasury Department Appropriation Act, 1937, approved June 23, 1936 [49 Stat. 1827], and the Treasury Department Appropriation Act, 1938, approved May 14, 1937 (50 Stat. 137], for the purpose of enabling the Secretary of the Treasury to make subscriptions to the paid-in surplus of the Federal land banks, as provided for in this paragraph, and the proceeds of all repayments on account of such paid-in surplus, shall be held in the Treasury of the United States as a revolving fund and shall be available for subscriptions to paid-in surplus made pursuant to this paragraph.

Eleventh. Postponement of payment of installments of loans. -At any time within five years after March 4, 1933, any borrower who has obtained a loan from a Federal land bank may on application to such Federal land bank and upon approval of such application by the directors of the bank postpone the payment of any unpaid installment or installments in the manner herein provided in this section. Such postponed payment shall be made by paying at the time each succeeding annual installment is due, one-tenth of the amount of the postponed payment, and, in the case of semiannual installments, by paying at the time each succeeding semiannual installment is due, one-twentieth of the postponed payment, until the amount of such postponed payment has been paid. In any case in which the number of remaining installments due on the mortgage is less than ten, in the case of annual installments, or less than twenty, in the case of semiannual installments, the amount of the postponed payment shall be distributed proportionately over the remaining number of installment payments.

Twelfth. Interest rate; on extended payments; on taxes, liens, etc., paid by mortgagee. For the period of five years after Mar 4, 1933, every borrower shall pay simple interest on extended payments at the same rate of interest as stipulated in the mortgage securing the loan as to payments not in default and by express covenant in his mortgage deed shall undertake to pay when due all taxes, liens, judgments, or assessments which may be lawfully assessed against the land mortgaged. Taxes, liens, judgments, or assessments not paid when due, and paid by the mortgagee, shall become a part of the mortgage debt and shall bear interest at the rate provided in the mortgage.

Thirteenth. Reamortization of mortgages. When in the judgment of the directors conditions justify it, and with the approval of the Farm Credit Administration, to reamortize, in whole or in part, the aggregate amount remaining unpaid under the terms of any mortgage, and to accept payment of such aggregate amount on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable on the mortgage, and in addition thereto such amounts to be applied upon the principal as will extinguish the debt within an agreed period of not more than forty years from the date of the reamortization; to deposit such mortgages with the farm lona registrar as collateral security for farm-loan bonds at an amount not exceeding the principal of the original loan remaining unpaid at the date of such amortization; and with the approval of the Farm Credit Administration to charge the borrower an amount not to exceed the actual cost incurred in connection with such reamortization.

Fourteenth. Agreements to share gains and losses with associations.To enter into agreements with national farm loan associations of the district under the terms of which losses incurred and gains realized on account of the disposition of lands covered by a defaulted mortgage indorsed by such association will be shared equally by the band and the association.

Fifteenth. Exchange for and purchase of Federal Farm Mortgage Corporation bonds.To exchange farm loan bonds for Federal Farm Mortgage Corporation bonds of equal face value.

Sixteenth. Exchange of Federal Farm Mortgage Corporation bonds for farm loan bonds.--To exchange Federal Farm Mortgage Corporation bonds for farm loan bonds of equal face value.

Seventeenth. Loans to other Federal land banks.—To make loans to other Federal land banks upon such terms and conditions as may be approved by the Farm Credit Administration.

Eighteenth. Accepting conditional payments for subsequent credit on indebtedness.—To accept conditional payments from borrowers for subsequent credit upon their indebtedness to the land banks; and to allow interest on such payments. All conditional payments so accepted shall be subject to such terms and conditions, not inconsistent with the provisions of this paragraph and with any rules or regulations prescribed for its efficient execution by the Farm Credit Administration, as may be agreed upon at the time of their acceptance. If a conditional payment is accepted for subsequent credit upon a first mortgage which is at the time or is thereafter pledged as collateral security for an issue of farm-loan bonds, all requirements, conditions, and limitations set forth in sections 897-899 of this title

[ocr errors]

shall apply to such payment the same as though it were a present payment on the principal of the mortgage pledged as collateral security, and the land bank shall forthwith notify the farm loan registrar of its receipt of such payment and account to him therefor. Every conditional payment accepted by a land bank for subsequent credit upon indebtedness of a borrower shall be credited upon such indebtedness as the borrower may from time to time direct in accordance with the terms and conditions upon which the payment has been accepted, and at the option of the bank may in any event be credited upon such indebtedness as and when it matures if it is not otherwise paid by the borrower at or before maturity. If at any time after five years from the date on which a borrower's loan was made, the aggregate of the borrower's conditional payments accepted on account of his indebtedness under such loan and not yet credited thereon equals or exceeds his total indebtedness under the loan, all unmatured indebtedness under such loan shall become due and payable at once, and the payment so accepted shall forthwith be credited upon the borrower's indebtedness under the loan so far as may be necessary to pay it in full. Any balances of conditional payments remaining uncredited when the indebtedness on account of which they have been accepted has been paid in full shall be refunded to the borrower by the land bank. (July 17, 1916, ch. 245, § 13, 39 Stat. 372; Jan. 23, 1932, ch. 9, § 5, 47 Stat. 14; Mar. 4, 1933, ch. 270, $$ 3, 4, 47 Stat. 1548; Ex. Ord. No. 6084, Mar. 27, 1933; May 12, 1933, ch. 25, $$ 22, 23, 48 Stat. 42, 43; June 16, 1933, ch. 98, $$ 79, 80 (a), 48 Stat. 272, 273; Jan. 31, 1934, ch. 7, § 8 (a), 48 Stat. 347; Aug. 19, 1937, ch. 704, 88 5 (a), 15 (a), (b), 16, 17, 19, 50 Stat. 704, 708, 709.

[ocr errors]

REFERENCES IN TEXT In the original “this subchapter" reads "this Act,” meaning the Federal Farm Loan Act (act July 17, 1916, cited to text). For distribution of said Federal Farm Loan Act in this Code, see note under section 641 of this title.

SAVING CLAUSE See note under section 640a of this title.

RESTRICTIONS ON FEDERAL LAND BANKS

8 791. Enumeration of restrictions.-No Federal land bank shall have power

First. Limiting deposits.--To accept deposits of current funds payable upon demand except from its own stockholders or to transact any banking or other business not expressly authorized by the provisions of this subchapter.

Second. Loaning on first mortgages except through associations.—To loan on first mortgages except through national farmloan associations as provided in sections 711-722 and sections 731-734 of this chapter, or through agents as provided in sections 801-808 of this chapter, or direct to borrowers as provided in section 723. Third. Accepting other than first mortgages.-To accept any

. mortgages on real estate except first mortgages created subject

to all limitations imposed by sections 771 and 772 of this chapter, and those taken as additional security for existing loans.

Fourth. Issuing excess of bonds; receiving excess of mortgages from associations.—To issue or obligate itself for outstanding farm loan bonds including consolidated bonds issued on its behalf in excess of twenty times the amount of its capital and surplus, or to receive from any national farm loan association additional mortgages when the principal remaining unpaid upon mortgages already received from such association shall exceed twenty times the amount of its capital stock owned by such association.

Fifth. Demanding unauthorized commissions.—To demand or receive, under any form or pretense, any commission or charge not specifically authorized in this subchapter.

Sixth. Accepting mortgages on personal property exempt from execution.—To accept as additional security for any loan to any borrower under this subchapter, or any installment on any such loan, any personal property which is exempt from execution upon judgment under the laws of the State in which the land with respect to which the mortgage is given is situated. (July 17, 1916, ch. 245, 14, 39 Stat. 372; Mar. 4, 1933, ch. 270, § 5 (a), (b), 47 Stat. 1549; June 16, 1933, ch. 98, SS 71, 75 (a), 48 Stat. 271.)

REFERENCES IN TEXT In the original "this chapter" reads "this Act,” meaning the Federal Farm Loan Act (act July 17, 1916, cited to text). For distribution of said Federal Farm Loan Act in this Code, see note under section 641 of this title.

LOANS BY FEDERAL LAND BANKS THROUGH AGENTS § 801. Loans; when authorized.—Whenever it shall appear to the Farm Credit Administration that national farm loan associations have not been formed, and are not likely to be formed, in any locality, because of peculiar local conditions, said administration may, in its discretion, authorize Federal land banks to make loans on farm lands through agents approved by said administration. (July 17, 1916, ch. 245, § 15, 39 Stat. 373: Ex. Ord. No. 6084, Mar. 27, 1933.)

§ 802. Manner of making.–Loans authorized by section 801 of this title shall be subject to the same conditions and restrictions as if the same were made through national farm loan associations, and each borrower shall contribute 5 per centum of the amount of his loan to the capital of the Federal land bank, and shall become the owner of as much capital stock of the land bank as such contribution shall warrant. (July 17, 1916, ch. 245, § 15, 39 Stat. 373.)

§ 803. Who may be employed as agent.—No agent other than a duly incorporated bank, trust company, mortgage company, or savings institution, chartered by the State in which it has its principal office, shall be employed under the provisions of sections 801-808 hereof. (July 17, 1916, ch. 245, § 15, 39 Stat. 373.)

§ 804. Expenses of and commissions to agents.-Federal land banks may pay to such agents the actual expense of appraising the land offered as security for a loan, examining and certifying

« AnteriorContinuar »