Page:United States Statutes at Large Volume 46 Part 1.djvu/59

 SEVENTY-FIRST CONGRESS. SEss. I. CH. 24. 1929 . 15 gation bearing a date of issue subsequent to April 6, 1917 (except postal-savings bonds), and outstanding at the time the loan agree- ment is entered into or the advance is made by the board, as certified by the Secretary of the Treasury to the board upon its request : Provid ed, That in no case shall the rate exceed 4 per censufll per Proviso. annum on the unpaid principal. (b) Payments of principal or interest upon any such loan or ad- Payments co vered vance shall be covered into the revolving fund. into revolving fund. (c) Loans to any cooperative association or stabilization corpora- of s .ms and security tion shall be made upon the terms specified in this Act and upon such other terms not inconsistent therewith and upon such security as the board deems necessary. No loan or insurance (d) No loan or insurance agreement shall be made by the board ~f agreement if unduly in its judgment the agreement is likely to increase unduly the pro- increasing production b in ex cess of m arket re- duction of any agricultural commodity of which there is commonly quirements. produced a surplus in excess of the annual marketing requirements. Stabilization corpo- STABILIZATION CORPORATIONS rations. Recog niti on o f, on SEC. 9. (a) The board may, upon application of the advisory com- application of advisor y modity committee for any commodity, recognize as a stabilization com mod ity committee. corporation for the commodity any corporation if- If required by mar- (1) The board finds that the marketing situation with respect to ketin g co ndit ions of the agricultural commodity requires or may require the establishment commodity. of a stabilization corporation in order effectively to carry out the policy declared in section 1 ; and Organized under (2) The board finds that the corporation is duly organized under State, etc ., taws. the laws of a State or Territory ; and 3) The board finds that all the outstanding voting voting stock or mem- modity Stock owned associations . bership intere sts in the co rporation are and may be ow ned only by cooperative associations handling the commodity ; and (4) The corporation agrees with the board to adopt such by-laws by- law s, ete tc . acceptable as the board may from time to time require, which by-laws, among other matters, shall permit cooperative associations not stockholders or members of the corporation to become stockholders or members therein upon equitable terms . (b) Any stabilization corporation for an agricultural commodity agency Act s as in mar ketin g prepari ng, (1) may act as a marketing agency for its stockholders or members merchandising, etc ., commodity of stock . in preparing, handling, storing, processing, and merchandising for holders . their account any quantity of the agricultural commodity or its food products, and (2) for the purpose of controlling any surplus in the purchase, °surplusa s commodity in furtherance of the policy declared in section 1, may ing, etc ., procured from prepare, purchase, handle, store, process, and merchandise, other- othrs holde rs and wise than for the account of its stockholders or members, any quantity of the agricultural commodity or its food products whether or not such commodity or products are acquired from its stockholders or members, working capital from (c) Upon request of the advisory committee for any commodity the revolving fun d. board is authorized to make loans from the revolving fund to the stabilization corporation for the commodity for working capital to enable the corporation to act as a marketing agency for its stock- holders or mem bers as herei nbefore provi ded. Not less than 75 per agency profits. f und from rofits. centum of all profits derived by a stabilization corporation each year from its operations as such a marketing agency shall be paid into a merchandising reserve fund to be established by the corporation. No such payment shall be required whenever the fund is in such amount as, in the judgment of the board, constitutes a sufficient reserve for such operations of the corporation. Out of the remainder of such Payments therefrom. profits for the year the corporation shall repay any outstanding loan made under this subdivision and the accrued interest thereon, or if all

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