Page:United States Statutes at Large Volume 48 Part 1.djvu/287

 73d CONGRESS. SESS. I. CH. 98. JUNE 16, 1933 . 261 EARNINGS OF PRODUCTION CREDIT ASSOCIATIONS Produ ction cred it as - sociations. SEC. 22 . Each Production Credit Association shall at the end of Useofeee xss earningc , its fiscal year, apply the amount of its earnings in excess of operat- to as tray los ses, etc. ing expenses during such fiscal year, first, to making up any losses in excess of its reserve for bad and doubtful debts ; second, to the ip oirre s tie capital restoration of the amount of the. impairment, if any, of capital ; third, Cre ate re ser ve for to the creat ion and maint enance of a r eserve account for bad and discharging bad debts, doubtful debts, the amount of which account shall be prescribed by the Production Credit Corporation ; and fourth, to the creation and M ain tena nce of a maintenance of a guaranty fund equal to at least 25 per centum of guRema ud cd'to aioi the paid-in capital of the association. Any sums remaining may, deeds ; limitations. with the approval of the Production Credit Corporation, be devoted to the payment of dividends but no rate of dividend in excess of 7 per centum per annum shall be paid. Sums in the guaranty fund lire5rnents. herein provided for shall be invested subject to such rules and regu- lations as may be prescribed by the Production Credit Corporation. SE O. 23. Each Production Credit Association shall, under such Loans to farmers for rules and regulations as may be prescribed by the Production Credit pines agricultural Corporation of the district with the approval of the governor, invest its funds and make loans to farmers for general agricultural pur- poses, but such part of its funds as is represented by the guaranty Funds excluded. fund provided for in section 22 shall not be devoted to making loans to farmers. Such loans shall be made on such terms and conditions, Condit ions r eq uir ed. at such rates of interest, and with such security as may be prescribed by the Production Credit Corporation. No loan shall be made for a less amount than $50, nor shall any one borrower be indebted to the association at any one time in an amount in excess of 20 per centum of the capital and guaranty fund of the association or, if the loan is secured by collateral approved by the Corporation, in an amount in excess of 50 per centum of the capital and guaranty fund, but loans may be made to any borrower in an amount in excess of 50 per centum of the capital and guaranty fund if the loan is approved by the Production Credit Commissioner of the Farm Credit Admin- istration. Borrowers shall be required to own at the time the loan Bor rowers to ow n class B stock ; ratio to is made, class B stock in an amount equal in fair book value (not amount of loan . to exceed par), as determined by the association, to $5 per $100 or fraction thereof of the amount of the loan. Such stock shall not be Exchange, on loan canc eled or reti red upon pay ment of the loan but may be tran sfer red repayment. or exchanged as provided in section 21. SEC. 24. Production Credit Associations doin business under this Federal Intermediate b Credit Banks ; author. Act are authorized to borrow from, and rediscount paper with, Fed- ity conferred to borrow eral Intermediate Credit Banks subject to the restrictions, limita- f rom, red is cou nt tions, and conditions applicable under title II of the Federal Farm vVol. p?i5sp. 145x; Loan Act, as amended (U .S.C ., title 12, ch . 8). Except with the u.s.c.,p.315; Supp. approval of the Governor, Production Credit Associations shall not Restriction. have the power to borrow from or rediscount paper with any other bank or agency. TITLE III-CENTRAL BANK FOR COOPERATIVES EST ABLISFIME NT OF BA NK SE CTIO N 30. The governor is authorized and directed to organize and charter a corporation to be known as the " Central Bank for Cooperatives " with its principal office in the District of Columbia and such other offices as in the opinion of the governor may be nece ssar y. Central Ba nk for C oopera tives. Es tablishme nt, in District of Columbia, etc.