Page:United States Statutes at Large Volume 47 Part 1.djvu/37

 72d CONGRESS. SESS. I. CH. 9. JA NU ARY 23, 1932 . the approval of the Federal Farm Loan Board. The Secretary of the Treasury is hereby authorized and directed to take out and pay for shares having an aggregate par value equal to the amounts so called ; and to enable the Secretary of the Treasury to pay for stock issued hereunder there is hereby authorized to be appropriated the sum of $125,000,000 such stock to be nonvoting. Shares of stock issued pursuant to this paragraph shall be paid off at par and retired in the same manner as the original capital stock of said bank after said original stock outstanding if any, has been paid off and retired Provided, however, That stock issued pursuant to this paragraph may at any time, in the discretion of the directors and with the approval of the Federal Farm Loan Board, be paid off at par and retired in whole or in part ; and that said board may at any time require such stock to be paid off at par and retired in whole or in part if in the opinion of the board the bank has resources available therefor. The proceeds of all repayments on account of stock issued pursuant to this paragraph shall be held in the Treasury of the United States and shall be available for the purpose of paying for other stock thereafter issued pursuant to this paragraph .' SEc. 3(a). Section 23 of the Federal Farm Loan Act, as amended (U. S . C ., title 12, ch. 7, sees . 901, 902), is amended, effective July 1, 1932, by adding at the end thereof a new paragraph as follows " Every Federal land bank shall semiannually carry to reserve account a sum not less than 50 per centum of its net earnings until said reserve account shall show a credit balance equal to the out- standing capifal stock of said land bank . After said reserve is equal to the outst anding ca pital sto ck 10 per centum o f the net earn- ings sh all be added there to sem iannua lly . Whene ver s aid r eser ve shall hav e been im paired it shall be fully re stored be fore any divi- dends are paid . After deducting the 50 per centum or the 10 per centum herein directed to be deducted for credit to reserve account, any Federal land bank may declare a dividend or dividends to share- holders of the whole or any part of the balance of its net earnings, but only with the approval of the Federal Farm Loan Board . In the cas e of F ederal land banks the re quireme nts of this paragr aph shall be in lieu of the requirements of the first three sentences of the first paragrap h of this section and in li eu of the requi+re nients of the first sentence of the second paragraph of this section ." (b) Section 23 of the Federal Farm Loan Act, as amended (U . S . C ., title 12, ch . 7, sees. 901, 902), is further amended by inserting after the word "earnings " and before the period in the first sentence of the second paragraph thereof a colon and the following : "Pro- vided That a ny div idend or div idends decla red by any jo int-st ock land bank shall be subject to the approval of the Federal Farm Loan Bo ard ." SEc . 4 . The first three paragraphs of section 24 of the Federal Farm Loan Act, as amended (U . S . C ., tide 12, ch. 7, sees . 911-913), are amended, effective July 1, 1932, to read as follows " That every national frm loan association shall, out of its net earnings, semiannually carry to reserve account a sum not less than 10 per centum of such net earnings until said reserve account shall show a credit balance equal to 25 per centum of the outstanding capital stock of said association. After said reserve has reached the sum of 25 per centum of the outstandin capita l stock, 5 per centum of the net earnings shall be semiannually added thereto. "Whenever said reserve shall have been impaired it shall be fully restor ed bef ore an y divi dends are pa id . "After deducting the 10 per centum or the 5 per centum herein- before directed to be credited to reserve account, said association Payment. 13 thorized. Appropr iation au- Post, p. 36 . Re tire ment. Vol .39,p.365. U. S. C., p. 302. Proviso. Optio nal retireme nt if ad equate resou rces available. Proceeds to be avail- a ble Vol.39,p. 379. U.S.C.,p.311. Effective date. Reserves and divi- dends of land banks. Amount carried to reserve account. Impairment restored before dividend paid. Dividend from ba l- ance of net earnings. Substituted provi- sions. Vol . 39, p. 379. U. S. C, p. 312, amended. Proviso. Dividends declared by joint-stock l and bank. Vol.30,p.379. U.S.C.,p.312. Effective date. Loan ass ocia tion reserves and d ividends. Amount from net earnings to reserves. Impairment re stored before dividend paid. Dividend from bal- ance of net earnings .