Page:United States Statutes at Large Volume 48 Part 1.djvu/285

 73d CONGRESS. SESS. I. CH. 98. JUNE 16, 1933 . 259 (d) The authority to make loans during the calendar year 1933 lo maki ng f arm, etc ., pursuant to the Act of February 4, 1933 (Public Numbered 327, Vol.47,p. 795 Seventy-second Congress), as amended, out of funds made available by that Act shall not be deemed to be restricted by this section. STOCK OWNERSHIP OF PRODUCTION CREDIT CORPORATIONS IN PRODUCTION Sto ck o wner ship of CREDIT ASSOCIATIONS poratioratios n Credit s inProdneLion ion Cr edit Asso ciati ons. SEC. 6. (a) Each Production Credit Corporation shall have power investments in local associations author- to invest its funds in stock of production credit associations as iz ed " provided in this section . Such corporation is authorized to subscribe Post, p. 985 . and pay for class A stock in each Production Credit Association located in the district served by such corporation in amounts Amount . sufficient to maintain the amount of class A stock held by it and other holders of class A stock equal, as nearly as may be, to 20 per centum of the volume of loans made or to be made by such association, as estimated by the corporation, but at no time shall the amount of class A stock outstanding be less than $5,000 except with the consent of the association . Notwithstanding the provisions of the preceding sentence, (1) the governor, under rules and regulations prescribed by Larger holdings . him, may permit a Production Credit Corporation to maintain the class A holdings of stock by the corporation and other investors at such amount, in excess of 20 per centum of such loans, as may be necessary, and (2) the corporation may at any time require the Retirement of corpo- ration stock i f resources association to retire and cancel stock held by the corporation in such warrant. association, if, in the judgment of the corporation, the association has resources available therefor. (b) Under such rules and regulations as may be prescribed by the ro StokeiaLI scrript or es governor and subject to such restrictions and limitations as he may gani zed under thi s Act , if controlled by cooper- prescribe, each Production Credit Corporation is authorized to ative associations . subscribe and pay for stock in production credit associations not Post, p.260. organized under this Act if such associations are controlled by cooperative associations as defined in section 55. Only stock which is onl Preferred, , f bnc , s to ck prefe rred as t o assets on liquid ation an d is enti tled to p articipat e in for. divid end di stribu tions withou t disc riminat ion ma y be s ubscri bed fo r. 7 The amount of the stock subscribed for by any Production Credit Ma xim um. Corporation in any such association shall not at any one time exceed 5 per centum of the total paid-in ca ital of such association. (c) The amount of the excess of pearnings on stock held by the surplus, to equal 25 per centum of capital, corporation above amounts necessary to pay operating expenses and to be created from stock restore losses and impairment of capital, if any, of the corporation earnings. shall be de voted to the creat ion an d maint enance of a surplu s equa l to at least 25 per centum of the paid-in capital of the corporation. Fe deral vs.ed i The amount of the surplus shall be invested as the governor shall etc » prescribe in direct obligations of the United States or in class A stock of Pr oducti on Cre dit As sociat ions, o r both. (d) The amount of such excess of earnings not required in order Excess production to comply with the provisions of subsection (c) shall be paid into ear nin gs evolvingfund aid the r evolvi ng fun d here tofore autho rized . Stock held by the gover- er ortsst toocks of G•`_ nor in the Production Credit Corporation shall be retired upon such payment in an amount equal to the amount of such payment. TITLE II-PRODUCTION CREDIT ASSOCIATIONS Associations. Production Credit ESTABL ISHMENT OF PRODUC TION CRE DIT ASSOC IATIONS S ECT ION 20. The governor is authorized and directed to organize Local associations to be organized and char- and charter corporations to be known as " Production Credit tered . Associations ." Such associations may be organized by ten or more farm ers des irin g to bor row mon ey u nder the pro vis ions of this