Page:United States Statutes at Large Volume 47 Part 1.djvu/1574

 1550 72d CONGRESS. SESS. II. CH. 270. MARCH 4, 1933 . Col solidpated bonds. SEC. 7. The eleventh paragraph of section 21 of the Federal Farm 42 . A77. u. S. C., p. 310. Loan Act, as amended (U. S. C., title 12, ch. 7, sec. 881), is amended by substituting in lieu thereof the following : ticPpreistod banks " When any Federal land bank shall desire to participate in a in. consolidated issue of farm-loan bonds it shall make application to Depositofsecurity, the Federal Farm Loan Board for the approval on its behalf of such issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and no banks shall participate in such consolidated issue until such Approval required . application has been approved by the Federal Farm Loan Board . Approved security to Such approved farm mortgages or obligations of the United States be segregated and held as collateral for bonds . Government shall be held by each farm-loan registrar as collateral security for consolidated bonds, separate and apart from the mort- gages and/or Government bonds held by him as collective security for the bonds previously issued or assumed individually by the Fed- in gary m ntsco nstitut. oral land bank of his district. Amortization and other payments on the principal of first mortgages held by a farm-loan registrar as collateral security for the issue of consolidated farm-loan bonds shall constitut e a trust fund in the hands of the F ederal la nd bank r eceiv- Use of. ing the same and shall be applied or employed in the manner pro- vided in section 22 with respect to payments on principal of first mortgages held as collateral for farm-loan bonds of individual banks. Land banks required " Every Federal land bank shall notify the farm-loan registrar to report on the disposi- tion of all payments on of the disposition of all payments made on the principal of mort po thist of mortgages gages hel d as coll ateral se curity fo r the iss ue of con solidated farm- loan bonds, and said registrar is authorized, at his discretion to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his later al Maintenance i of con account as trustee aforesaid . Each bank shall maintain with the al for issue ue of con . soli dated bon ds . farm-loan registrar of its district collateral security for the issue of consolidated farm-loan bonds in an amount at least equal to the face amount of such bonds issued on its behalf . datxeda n gor ofarm--loan "When any Federal land. bank shall surrender to the farm-loan bondsprevtouslyissued registrar of its district any consolidated Federal farm-loan bonds, mdividualtyi canceled or uncanceled, said land bank shall be entitled to withdraw first m ortgag es and bonds previ ously ledged as col latera l in c on- nection with any issue of consolidated farm-loan bonds to an amount equal to the conso lidated f arm-loan bonds so surrender ed and it shall be the duty of such registrar to permit and direct the delivery of such Additional security m" The Federal Farm Loan Board may at any time call upon any for protecti ng consoli- dated bonds. Federal l and bank for addit ional sec urity to protect t he consol idated bonds issued under the provisions of this section . Each bank shall pay when due, without notice, all bonds and coupons issued on its Exchange of bonds behalf hereun der . permitted . Every Federal land bank shall have power to exchange consoli- dated farm -loan bon ds fo r far m-lo an bo nds p revio usly issu ed or assumed by it individually, with the approval of and under rules Unobligated balance and r egula tions pro mulga ted b the Fede ral F arm L oan Board ." to be used in extending SEC. 8. The balan ce of the 12 5,000, 000 pr ovided for th e Fede ral or making loans, land bank s by the Act of Ja nuary 23, 1932, not heretofo re used f or the Ante, pp. 13, 36. extension of loans or the making of new loans shall be used by such banks for the extension of loans and the making of new. loans as authorized by this Act and the Federal Farm Loan Act, as amended. Approved, March 4, 1933.