District No. 9.—Wichita, Kans. (New Mexico, Kansas, Colorado, and Okla District No. 11.-Berkeley, Calif. (California, Nevada, Utah, and Arizona): District No. 12.-Spokane, Wash. (Idaho, Washington, Montana, and Oregon): President.. Vice president.. Secretary Treasurer Director Director__ Director_ Registrar D. G. O'Shea, Montana. M. E. Lewis, Idaho. A. B. Thompson, Oregon. George C. Jewett, Washington. W. S. McCormack, Montana. Byron D. Thompson, Washington. L. J. Birdseye, Washington. TEXT OF LAW PROVIDING FOR FEDERAL INTERMEDIATE CREDIT BANKS [PUBLIC-No. 503-67тH Congress] [S. 4280] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled: TITLE I.-FEDERAL INTERMEDIATE CREDIT BANKS SECTION 1. That section 1 of the Federal Farm Loan Act is amended to read as follows: "TITLE I.-FEDERAL FARM LOANS "SECTION 1. That this Act may be cited as the 'Federal Farm Loan Act.' Its administration shall be under the direction and control of the Federal Farm Loan Board hereinafter created." SEC. 2. That the Federal Farm Loan Act is amended by adding at the end thereof a new title, to read as follows: “TITLE II.—Federal IntermEDIATE CREDIT Banks ORGANIZATION "SEC. 201. (a) That the Federal Farm Loan Board shall have power to grant charters for twelve institutions to be known and styled as 'Federal intermediate credit banks.' 66 (b) Such institutions shall be established in the same cities as the twelve Federal land banks. The officers and directors of the several Federal land banks shall be ex officio officers and directors of the several Federal intermediate credit banks hereby provided for and shall have power to employ and pay all clerks, bookkeepers, accountants, and other help necessary to carry on the business authorized by this title. "(c) 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. "(d) 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. "(e) Upon default of any obligation any Federal intermediate credit bank may be declared insolvent and placed in the hands of a receiver by the Federal Farm Loan Board, and proceedings shall thereupon be had in accordance with the provisions of section 29 of this Act regarding national farm loan associations. "(f) 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 Federal Farm Loan Board shall prescribe. 7 "DISCOUNTS AND LOANS "SEC. 202. (a) That 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 Federal Farm Loan Board not inconsistent with the provisions of this Act "(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, cooperative credit or marketing association of agricultural producers, organized under the laws of any State, 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; "(2) To buy or sell, with or without recourse, debentures issued by any other Federal intermediate credit bank; and "(3) To make loans or advances direct to any cooperative association organized under the laws of any State and composed of persons engaged in producing, or producing and marketing, staple agricultural products, or livestock, if the notes or other such obligations representing such loans are secured by warehouse receipts, and/or shipping documents covering such products, and/or mortgages on livestock: Provided, That no such loan or advance shall exceed 75 per centum of the market value of the products covered by said warehouse receipts and/or shipping documents, or of the livestock covered by said mortgages. "(b) No paper shall be purchased from or discounted for any national bank, State bank, trust company, or savings institution under this section, if the amount of such paper added to the aggregate liabilities of such national bank, State bank, trust company or savings institution, whether direct or contingent (other than bona fide deposit liabilities), exceeds the amount of such liability permitted under the laws of the jurisdiction creating the same; or exceeds twice the paid in and unimpaired capital and surplus of such national bank, State bank, trust company, or savings institution. No paper shall under this section be purchased from or discounted for any other corporation engaged in making loans for agricultural purposes or for the raising, breeding, fattening, or marketing of livestock, if the amount of such paper added to the aggregate liabilities of such corporation exceeds the amount of such liabilities permitted under the laws of the jurisdiction creating the same; or exceeds ten times the paid in and unimpaired capital and surplus of such corporation. It shall be unlawful for any national bank which is indebted to any Federal intermediate credit bank upon paper discounted or purchased under this section, to incur any additional indebtedness, if by virtue of such additional indebtedness its aggregate liabilities, direct or contingent, will exceed the limitations herein contained. "(c) Loans, advances, or discounts made under this section shall have a maturity at the time they are made or discounted by the Federal intermediate credit bank of not less than six months nor more than three years. Any Federal intermediate credit bank may in its discretion sell loans or discounts made under this section, with or without its indorsement, "(d) Rates of interest or discount charged by the Federal intermediate credit banks upon such loans and discounts shall be subject to the approval of the Federal Farm Loan Board. On the majority vote of the members of the Federal Farm Loan Board any Federal intermediate credit bank shall be required to rediscount the discounted paper of any other Federal intermediate credit bank at rates of interest to be fixed by the Federal Farm Loan Board. "ISSUE OF DEBENTURES "SEC. 203. (a) That Federal intermediate credit banks, when chartered and established, shall have power, subject to the approval of the Federal Farm Loan Board, to borrow money and to issue and to sell collateral trust debentures or other similar obligations with a maturity at the time of issue of not more than five years, which shall be secured by at least a like face amount of cash, or notes or other such obligations discounted or purchased or representing loans made under section 202: Provided, That no Federal intermediate credit bank shall have power to issue or obligate itself for debentures or other obligations under the provisions of this section in excess of ten times the amount of the paid-up capital and surplus of such bank. "(b) The provisions of Title I relating to the preparation and issue of farm loan bonds shall, so far as applicable, govern the preparation and issue of debentures or other such obligations issued under this section; but the Federal Farm Loan Board shall prescribe rules and regulations governing the receipt, custody, substitution, and release of collateral instruments securing such debentures or other obligations, the right of substitution being hereby granted. Rates of interest upon debentures and other such obligations issued under this section shall, subject to the approval of the Federal Farm Loan Board, be fixed by the Federal intermediate credit bank making the issue, not exceeding 6 per centum per annum. "(c) The United States Government shall assume no liability, direct or indirect, for any debentures or other obligations issued under this section, and all such debentures and other obligations shall contain conspicuous and appropriate language, to be prescribed in form and substance by the Federal Farm Loan Board and approved by the Secretary of the Treasury, clearly indicating that no such liability is assumed. 66 DISCOUNT RATES "SEC. 204. (a) That before making any discounts under the provisions of this title, each Federal intermediate credit bank shall establish and promulgate a rate of discount to be approved by the Federal Farm Loan Board. Any Federal intermediate credit bank which has made an issue of debentures under the provision of this title may thereafter establish, with the approval of the Federal Farm Loan Board, a rate of discount not exceeding by more than 1 per centum per annum the rate borne by its last preceding issue of debentures. "(b) No organization entitled to the privileges of this title, shall, without the approval of the Federal Farm Loan Board, be allowed to discount with any Federal intermediate credit bank any note or other obligation, upon which the original borrower has been charged a rate of interest exceeding by more than 12 per centum per annum the discount rate of the Federal intermediate credit bank at the time such loan was made. "(c) A Federal intermediate credit bank may, subject to the approval of the Federal Farm Loan Board, buy in the open market at or below par for its own account and retire at or before maturity any such debentures or obligations issued by it." [Sec. 13 (a) of the Federal Reserve Act is amended to permit any Federal Reserve Bank to buy and sell debentures and other such obligations issued by a Federal intermediate credit bank having a maturity not exceeding six months from date of purchase.] 2879-24-2 |