Page:United States Statutes at Large Volume 48 Part 1.djvu/286

 260 Objects to be speci- fied in articles of in- corporation. Authority of go v- ernor. Regulatio ns to be prescribed. Fix ing maximum loans. Adoption of bylaws. Division of stock into two classes. Class A, to be pur- chased by in vestors, etc. Class B, subscribed by farmer borrowers, etc. Voting rights Class B stock not, transferable ; exception Exchange, by class B hol der. D ivide nd, Credit again st in- debtedness. Class A preference in liquidation. Appointments and elections of officers, etc., while Corporation is stockholder. 73d CONGRESS. SESS. I. CH. 98. JUNE 16, 1933 . title. Such individuals shall enter into articles of incorporation which shall speci fy in genera l term s the o bjects for w hich t he ass o- ciation is formed and the powers to be exercised by it in carrying out the functions conferred upon it by this Act. Such articles shall be signed by the individuals uniting to form the association and a copy thereof shall be forwarded to the Production Credit Corpora- tion of the district, and such copy shall be filed and preserved in its office. The governor may, for good cause shown, deny a charter to such individuals. Upon the approval of such articles by the governor, the association shall become as of the date of such approval a body corporate The governor shall have power, under rules and regulations prescribed by him, or by prescribing the terms of the charter of the association, or both, to provide for the organization, management, and conduct of the business of the association ; and the power of the governor shall extend to prescribing the amount of the stock of such association ; fixing the territory within which its opera- tions may be carried on ; fixing the method of election and appoint- ment of, and the amount and payment o f the compensation o f, directors, officers, and employees ; fixing the maximum amount of individual loans which may be made ; prescribing the conditions under which the stock may be retired ; and providing for the con- solidation of two or more such associations. The governor may, at any time, direct such changes in the charter of any such asso- ciation as he finds necessary in accomplishing the purposes of this title. Bylaws of any such association may be adopted by the direc- tors but shall not be valid unless approved by the governor. STOCK OF PRODUCTION CREDIT ASSO CIATIONS SEC. 21 . The stock of such associations shall be divided into shares of $5 each ; and there shall be two classes of such stock
 * (1) Class

A stock which is to be held by Production Credit Corporations, and which may be purchased and held by investors, and (2) class B stock which may be purchased only by farmer borrowers from the association and individuals eligible to become borrowers. Class B stock only shall be entitled to voting rights but each holder of such stock shall be entitled to no more than one vote. No class B stock, or any interest therein or right to receive dividends thereon, shall be transferred by act of parties or operation of law except to another farmer borrower or an individual eligible to become a borrower, and then only with the approval of the directors of the association. Ea ch holder of class B stock, within two years after he has ceased to be a borrower, shall exchange such class B stock at the fair book value (not to exceed par) thereof, as determined by the association, for class A stock. All stock shall share in dividend distributions with- out preference, but the directors of the association may, in their discretion, apply the amount of any dividend payable to a holder of class B stock to any indebtedness of such holder to the association. Class A stock shall be preferred as to assets of the association upon liquidation. During such time as any Production Credit Corporation is a holder of any stock of any such association, the appointment or ele ction of dir ectors, the secret ary-tre asurer , and the lo an com - mittee of such association shall be subject to the approval of the president of the Productio n Credit Corporation and during such time any such director, secretary-treasurer, or other officer may, at any time, be removed by the president of the Production Credit Corp orati on.