ditions, and subject to such regulations, as the Governor may prescribe. (Jan. 29, 1937, ch. 7, § 1, 50 Stat. 5.) § 1020j. Persons entitled; security; limitation on amount; interest. (a) No loan shall be made under sections 10201-1020n and 10200 of this title to any applicant who shall not have first established to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such regulations as the Governor may prescribe, that such applicant is unable to procure from other sources a loan in an amount reasonably adequate to meet his needs for the purposes for which loans may be made under sections 10201-1020n and 10200 of this title; and preference shall be given to the applications of farmers whose cash requirements are small. (b) There shall be required as security for any such loan a first lien, or an agreement to give a first lien, upon all crops of which the production or harvesting, or both, is to be financed, in whole or in part, with the proceeds of such loan; or, in case of any loan, for the purchase or production of feed for livestock, a first lien upon the livestock to be fed. (c) No loan made under the provisions of sections 1020i1020n and 10200 of this title to any borrower shall exceed $400, nor shall a loan be so made in any calendar year which, together with the unpaid principal of prior loans so made to such borrower in that year, shall exceed $400 in amount: Provided, however, That in any area certified by the President of the United States to the Governor as a distressed emergency area, the Governor may make loans without regard to the foregoing limitations as to amount, under such regulations, with such maturities, and in such amounts as he may prescribe. (d) Each loan shall bear interest at the rate of 4 per centum per annum. (Jan. 29, 1937, ch. 7, § 2, 50 Stat. 6.) § 1020k. Use of loan, purposes; exemption from execution, etc. -The proceeds of each loan made by the Governor under the provisions of sections 1020i-1020n and 10200 of this title shall be impressed with a trust for the purposes for which loans may be made under said sections, and may be used only for the purposes stated in the application therefor, and such trust shall continue, and the proceeds shall be free from garnishment, attachment, or the levy of an execution, until such proceeds have been used by the borrower for such purposes. (Jan. 29, 1937, ch. 7, § 3, 50 Stat. 6.) CROSS REFERENCES Application to rural rehabilitation loans, see section 1007a of Title 7, Agriculture. 10201. Fees for making loans and releasing liens.-(a) Fees for recording, filing, registration, and examination of records (including certificates) shall not exceed 75 cents per loan, and may be paid from the proceeds of the loan. (b) No fees for releasing liens given to secure loans made pursuant to sections 1020i-1020n and 10200 of this title, nor any other fee not specified herein, shall be paid from the funds herein authorized to be appropriated. (Jan. 29, 1937, ch. 7, § 4, 50 Stat, 6.) § 1020m. Officers and employees; appointment and compensation; use by other institutions; use of employees of other institutions. (a) The Governor shall have power, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States, to employ and fix the compensation and duties of such agents, officers, and employees as may be necessary to carry out the purposes of sections 1020i-1020n and 10200 of this title; but the compensation of such officers and employees shall correspond, so far as the Governor deems practicable, to the rates established by sections 661-673 and 674 of Title 5. (b) Such agents, officers, and employees, or any of them, and the agents, officers, employees, and facilities of the Farm Credit Administration available for use in connection with loans made under the provisions of sections 1020i-1020n and 10200 of this title or of prior crop production, seeds, and feed loan Acts of the same general character, may be used by the Governor to perform services for any institution operating under the supervision of the Farm Credit Administration, upon such terms and conditions as the Governor may determine; and such institutions are hereby expressly empowered to enter into agreements with the Governor for such purpose. (c) For the purpose of carrying out the provisions of sections 10201-1020n and 10200 of this title and for collecting loans made under other Acts of the same general character, including loans made by the Governor with funds appropriated by the Emergency Appropriation Act, fiscal year 1935 (act June 19, 1934, ch. 648, title II, 48 Stat. 1055), or the Emergency Relief Appropriation Act of 1935 (act April 8, 1935, ch. 48, 49 Stat. 115), the Governor is authorized also to use the facilities and services of any agency or corporation operating under the supervision of the Farm Credit Administration, and of any officer or employee of any such agency or institution, or of the Farm Credit Administration, and may pay for such services and the use of such facilities from the funds made available for the payment of necessary administrative expenses, and such agencies and institutions are hereby expressly empowered to enter into agreements with the Governor for the accomplishment of such purposes and to perform the services provided for therein. (Jan. 29, 1937, ch. 7, § 5, 50 Stat. 6.) REFERENCES IN TEXT In the original "sections 661-673 and 674 of Title 5" reads "the Classification Act of 1923, as amended." § 1020n. Unlawful use of loans; false representations; accepting fee for securing loans; penalties.-(a) Except with the written permission of the Governor or his duly authorized representative, it shall be unlawful for any borrower to willfully use the proceeds of any loan: (a) For any purpose other than those specified in the application therefor; or (2) For the purpose of fallowing, or for the planting, production, or harvesting of any crops on, any land other than that described in his application for such loan. (b) It shall be unlawful for any person to make any material false representation for the purpose of obtaining, or assisting another to obtain, a loan under the provisions of sections 102011020n and 10200 of this title; or willfully to dispose of, or assist in disposing of, except for the account of the Governor, any crops or other property upon which there exists a lien securing a loan made under the provisions of said sections. (c) It shall be unlawful for any person to charge or accept a fee for preparing or assisting in the preparation of any papers of an applicant for a loan under the provisions of sections 102011020n and 10200 of this title. (d) Any person violating any provision of this section shall, upon conviction thereof, be punished by a fine of not more than $1,000, or by imprisonment for not more than six months, or both. (Jan. 29, 1937, ch. 7, § 6, 50 Stat. 7.) CROSS REFERENCES Application to rural rehabilitation loans, see section 1007a of Title 7, Agriculture. § 1020n-1. Fraudulently obtained loans; personal liability of Federal employees.-No employee of the United States on whose certificate or approal loans under sections 1020i-1020n and 10200 of this title, or other acts of the same general character, are or have been made, shall be held personally liable for any loss or deficiency occasioned by the fraud or misrepresentation of applicants or borrowers, if the Governor of the Farm Credit Administration shall determine that such employee has exercised reasonable care in the circumstances, and has complied with the regulations of the Farm Credit Administration in executing such certificate or giving such approval. Notwithstanding any such determination by the Governor of the Farm Credit Administration, this provision shall not be construed to prevent any criminal process against any person who was a party to or had guilty knowledge of such fraud or misrepresentation. (June 30, 1939, ch. 253, title II, 53 Stat. 979; June 25, 1940, ch. 421, § 1, 54 Stat. 569.) REPEATED.-Act July 1, 1941, ch. 267, § 1, 55 Stat. 444; act July 22, 1942, ch. 516, § 1, 56 Stat. 701. § 10200. Appropriations; experditures for printing and binding. (a) There is hereby authorized to be appropriated, out of money in the Treasury not otherwise appropriated, the sum of $50,000,000 for the purpose of enabling the Governor to carry out the provisions of sections 10201-1020n and 10200 of this title (b) The moneys appropriated in pursuance of subsection (a) of this section, any amounts collected for services rendered under section 5 (b), and all collections of principal and interest of loans made under sections 1020i-1020n and 10200 of this title may be used by the Governor for making loans under said sections, and for all necessary administrative expenses incurred in connection with the making and collection of such loans. (c) Expenditures for printing and binding necessary in corrying out the provisions of sections 10201-1020n and 10200 of this title may be made without regard to the provisions of section 5 of Title 41. (Jan. 29, 1937, ch. 7, § 7, 50 Stat. 7.) FEDERAL INTERMEDIATE CREDIT BANKS ORGANIZATION CODIFICATION The provisions of this subchapter relative to Federal intermediate credit banks constitute title II of the "Federal Farm Loan Act," July 17, 1916, ch. 245, 39 Stat. 360. See section 641 of this title. This act was amended on March 4, 1923, ch. 252, 42 Stat. 1454, by the addition of a second title relative to Federal intermediate credit banks, the provisions of which, as amended, are included in this subchapter. The office of Intermediate Credit Commissioner was created by the act of June 16, 1933. See section 638, under "Introductory", at the beginning of this chapter. This subchapter constitutes former chapter 8 of this title. § 1021. Number, names, and charters of banks.-The Farm Credit Administration shall have power to grant charters for twelve institutions to be known and styled as "Federal intermediate credit banks." (July 17, 1916, ch. 245, § 201 (a); Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454; Ex. Ord. No. 6084, Mar. 27, 1933.) § 1022. Location; directors; officers and employees.-One such institution shall be established in each farm credit district in the same city as the Federal land bank of the district. The members of the several farm credit boards of the farm credit districts provided for in section 640a of this title shall be ex officio the directors of the several Federal intermediate credit banks provided for in this subchapter and shall have power, subject to the approval of the Farm Credit Administration, to employ and fix the compensation of such officers and employees of such Federal intermediate credit banks as may be necessary to carry on the business authorized by this subchapter. (July 17, 1916, ch. 245, § 201 (b) Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454; June 16, 1933, ch. 98, § 76 (a), 48 Stat. 271; Aug. 19, 1937, ch. 704, § 10, 50 Stat. 707.) REFERENCES IN TEXT In the original, "provided for in this subchapter" reads "herein provided for", and "this subchapter" at the end of the section reads "this_title", meaning title II of the Federal Farm Loan Act, as added by act Mar. 4, 1923. ch. 252. § 2. 42 Stat. 1454. Said title II was incorporated into the Code as sections 641, 672, 1021-1026, 1031-1034, 1041-1043, 1051-1053, 1061, 1062, 1072. 1081, 1091-1094. 1101, 1111, 1121-1128 of this title, and section 408 of Title 31, Money and Finance. SAVING CLAUSE See note under section 640a of this title. § 1023. Corporate powers; suits by or against.-Each Federal intermediate credit bank shall have all the usual powers of corporations, and shall have power to sue and be sued both in law and equity, and for purposes of jurisdiction shall be deemed a citizen of the State where it is located. Each Federal intermediate credit bank shall have power to acquire and dispose of such property, real or personal, as may be necessary or convenient for the transaction of its business, which, however, may be leased to others for revenue purposes. (July 17, 1936, ch. 245, § 201 (c); Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454; Aug. 19, 1937, ch. 704, § 26, 50 Stat. 715.) SAVING CLAUSE See note under section 640a of this title. § 1024. Fiscal agents for United States.-Federal intermediate credit banks, when designated for that purpose by the Secretary of the Treasury, shall act as fiscal agents of the United States Government and perform such duties as shall be prescribed by the Secretary of the Treasury. (July 17, 1916, ch. 245, § 201 (d); Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454.) § 1025. Insolvency; receivership. Upon default of any obligation any Federal intermediate credit bank may be declared insolvent and placed in the hands of a receiver by the Farm Credit Administration, and proceedings shall thereupon be had in accordance with the provisions of sections 961-967 of this title regarding national farm loan associations. (July 17, 1916, ch. 245, §201 (e); Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454; Ex. Ord. No. 6084, Mar. 27, 1933.) § 1026. Application for charter. The charters to such Federal intermediate credit banks shall be granted upon application of the directors of the Federal land banks, which application shall be in such form as the Farm Credit Administration shall prescribe. (July 17, 1916, ch. 245, § 201 (f); Mar. 4, 1923, ch. 252, § 2, 42 Stat. 1454; Ex. Ord. No. 6084, Mar. 27, 1933.) DISCOUNTS AND LOANS § 1031. Lending powers; purchase and sale of debentures of intermediate credit banks; loans to cooperative associations.-Federal intermediate credit banks, when chartered and established, shall have power, subject solely to such restrictions, limitations, and conditions as may be imposed by the Farm Credit Administration not inconsistent with the provisions of this subchapter (1) To discount for, or purchase from, any national bank, and/or any State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, cooperative bank, credit union, cooperative association of agricultural producers, organized under the laws of any State or of the Government of the United States, and/or any other Federal Intermediate Credit Bank, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation the proceeds of which have been advanced or used in the first instance for any agricultural purpose or for the raising, breeding, fattening, or marketing of livestock; and to make loans or advances direct to any such organization, secured by such obligations; and to discount for, or purchase from, any production credit association or bank for cooperatives organized under sections 1131d, 1134 and 1134a of this title, or any production credit association in which a Production Credit Corporation organized under such sections holds stock, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation presented by such |