§ 821 Bonds; form and contents.-Each joint stock land bank organized under this chapter shall have authority to issue bonds based upon mortgages taken by it in accordance with the terms of this chapter. Such bonds shall be in form prescribed by the Farm Credit Administration, and it shall be stated in such bonds that such bank is organized under section sixteen of the Federal Farm Loan Act [sections 811-823 of this chapter], is under Federal supervision, and operates under the provisions of said Act. (July 17, 1916, c. 245, § 16, 39 Stat. 374; Mar. 27, 1933, Ex. Or. 6084.) "Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of that chapter. See that section. § 16 § 822 Voluntary liquidation.-Any joint stock land bank organized and doing business under the provisions of this chapter may go into voluntary liquidation by making provision, to be approved by the Farm Credit Administration, for the payment of its liabilities: Provided, That such method of liquidation shall have been duly authorized by a vote of at least two-thirds of the shareholders of such joint stock land bank at a regular meeting, or at a special meeting called for that purpose, of which at least ten days' notice in writing shall have been given to stockholders. (July 17, 1916, c. 245, § 16, 39 Stat. 374; May 29, 1920, c. 215, 41 Stat. 691; Mar. 27, 1933, Ex. Or. 6084.) "Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. See also 823 (note), and § 965. § 16 § 823 Assets of liquidating bank; purchase by Federal or joint stock land bank; assumption of liabilities. For the purpose of assisting in any such liquidation authorized as in section 822 of this chapter provided, any Federal land bank or joint stock land bank may, with the approval of the Farm Credit Administration, acquire the assets and assume the liabilities of any joint stock land bank, and in such transaction any Federal land bank may waive the provisions of this chapter requiring such bank to acquire its loans only through national farm loan associations or agents, and those relating § 16 1 8 823 to status of borrower, purposes of loan, and also the 8 16 HISTORICAL NOTE Joint stock land banks are now prohibited from making loans or issuing tax-exempt bonds, except in circumstances permitted under § 810 of this chapter. This prohibition constituted Section 29 of Part 2 of "The Emergency Farm Mortgage Act of 1933." The remaining sections of Part 2, which are quoted in this note, made provision for loans, to be made to joint stock land banks during a limited period of time, to aid in the orderly liquidation of these corporations, and to enable them to grant certain emergency relief to their borrowers. LOANS TO JOINT STOCK LAND BANKS TO PROVIDE FOR ORDERLY SEC. 30. (a) The Reconstruction Finance Corporation is authorized and directed to make available to the Land Bank Commissioner, out of the funds of the Corporation, the sum of $100,000,000, to be used, for a period not exceeding four years from the date of enactment of this Act, for the purpose of making loans to the joint stock land banks organized and doing business under the Federal Farm Loan Act, as amended, at a rate of interest not to exceed 4 per centum per annum, payable annually. Such loans shall be made upon application therefor by such banks and upon compliance with the requirements of this section. The amount which may be loaned hereunder to any such bank shall not exceed an amount having the same proportion to the said $100,000,000 as the unpaid principal of the mortgages held by such bank on the date of enactment of this Act bears to the total amount of the unpaid principal of the mortgages held by all the joint stock land banks on such date. (b) Any joint stock land bank applying for a loan under this section shall deliver to the Land Bank Commissioner as collateral security therefor first mortgages or purchasemoney mortgages on farm lands, first mortgages on farm real estate owned by the bank in fee simple, or such other FARM MORTGAGE LOANS collateral as may be available to said bank, including sales contracts and sheriff's certificates on farm lands. The real estate upon which such collateral is based shall be appraised by appraisers appointed under the Federal Farm Loan Act, as amended, and the borrowing bank shall be entitled to borrow not to exceed 60 per centum of the normal value of such real estate as determined by such appraisal. Fees for such appraisals shall be paid by the applicant banks in such amounts as may be fixed by the Land Bank Commissioner. No such loan shall be made until the applicant bank, under regulations to be prescribed by the Land Bank Commissioner, (1) shall have agreed to grant to each borrower then indebted to the bank under the terms of a first mortgage a reduction to 5 per centum per annum in the rate of interest specified in such mortgage, beginning at his next regular installment date, and (2) shall have agreed to the satisfaction of the Commissioner that during a period of two years from June 3, 1935, the bank will not proceed against the mortgagor on account of default in the payment of interest or principal due under the terms of its mortgage and will not foreclose its mortgage unless the property covered by such mortgage is abandoned by the mortgagor or unless, in the opinion of the Commissioner, such foreclosure is necessary for other reasons. Such loans shall be made to aid the orderly liquidation of any such bank in accordance with such plan as may be approved by the Land Bank Commissioner. Before any such plan is approved by the Commissioner he shall be satisfied that the plan carries out the purposes of this section and that such part of the proceeds of the loan as is devoted to settlements with bondholders will be used only to effect an equitable settlement with all bondholders. After the plan has been approved by the Commissioner he shall require the bank to mail a copy thereof to all its known bondholders and to publish a notice setting forth its provisions in at least three newspapers having general circulation. (May 12, 1933, c. 25, § 30, 48 Stat. 46; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273; June 3, 1935, c. 164, § 16, 49 Stat. 318.) LOANS BY THE LAND BANK COMMISSIONER TO JOINT STOCK SEC. 31. (a) Out of the funds made available to him under section 30, the Land Bank Commissioner is authorized to make loans, in an aggregate amount not exceeding $25,000,000, at a rate of interest not to exceed 4 per centum per annum, to any joint stock land bank for the purpose of securing the postponement, until May 13, 1937, of the foreclosure of first mortgages held by such banks on account of (1) default in the payment of interest and principal due under the terms of the mortgage, and (2) unpaid delinquent taxes, excluding interest and penalties, which may be secured by the lien of said mortgage: Provided, That during the period of postponement of foreclosure such banks shall charge the mortgagor interest at a rate not exceeding 4 per centum per annum on the aggregate amount of such delinquent taxes and defaulted interest and principal with respect to which loans are made pursuant to this section. The amount loaned to any joint stock land bank under this section shall be made without reappraisal: Provided, That the amount loaned with respect to any mortgage on account F. F. L. Act § 824 of unpaid principal shall not exceed 5 per centum of the (b) No such loan shall be made with respect to any mortgage unless the Land Bank Commissioner is satisfied that the mortgagor, after exercising ordinary diligence to pay his accrued delinquent taxes, and meet accrued interest and principal payments, has defaulted thereon; and unless the bank shall have agreed to the satisfaction of the Land Bank Commissioner that during the 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, c. 25, § 31, 48 Stat. 47; June 16, 1933, c. 98, § 80 (a), 48 Stat. 273; June 3, 1935, c. 164, § 17 (a) (b), 49 Stat. 318.) "Farm Credit Administration" mentioned above was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. 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 Farm Credit Administration, any Federal land bank or joint stock land bank may, in the manner as may be prescribed by the Farm Credit Administration and with the approval of the Farm Credit Administration, 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 Farm Credit Administration, make loans secured by first mortgages on farm lands within the States in which the other joint 8 16 8 831 stock land bank was authorized to make loans at "Farm Credit Administration" mentioned in the text was sub- Making loans or issuing tax-exempt bonds prohibited after May 12, 1933, except in circumstances permitted under § 810 of this chapter. See that section. For receivers of joint stock land banks, see also § 963 of this chapter. POWERS OF FARM CREDIT ADMINISTRATION Enumeration. The Farm Credit Administration shall have power (a) Organizing and chartering banks and loan associations; authorizing increase of stock.-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 subchapter, and in its discretion to authorize them to increase their capital stock. (b) Reviewing and altering interest rates.-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 subchapter, said rates to be uniform so far as practicable. (c) Granting or refusing authority to issue bonds. To grant or refuse to Federal land banks, or joint stock land banks, authority to make any specific issue of farm loan bonds. (d) Making rules and regulations as to charges on loans. To make rules and regulations respecting the charges made to borrowers on loans under this subchapter for expenses in appraisal, determination of title, and recording. (e) Requiring reports, etc.; examining banks and associations. To require reports and statements of 8 17 |