Page:United States Statutes at Large Volume 48 Part 1.djvu/290

 264 73d CONGRESS. SESS. I. CH. 98. JUNE 16, 1.933 . Ante, p. 262. Provisions governing issue. Custodian of collat- eral to be appo inted. Loans by central and DIVISION OF LENDING AUTHORITY OF CENTRAL AND REGIONAL BANKS FOR regional banks for co- operatives. COOPERATIVES aut hor ity of lendinng SEC. 38. The governor shall, by regulation or by prescribing the terms of the charters iss ued to the Ce ntral Bank for Cooperatives and the Banks for Cooperatives, or both, provide such limitations, as between the two types of banks, on the classes of borrowers to which loans may be made and the amount of the loans which may be made to individual borrowers, as will best insure the absence of duplica- tion of effort by the two types of banks and will secure the greatest efficiency in extending the benefits of this title and Title IV to borrowers. Ban ks for Co ope ra- tives. Stock . Amount of. Increase or decrease permitted. Share s. Subsc ript ions for, to be paid from revolving fund, Agricultural Marketing Act. Vol.46,p.14. U.S.C., Supp . VI, p. 63. Lending power. Loans to cooperative associations. Vol.46,p.14. Post, p. 26.5. Ownership of stock requi red, in p ropor tion to loan. Ante, p. 263. the board. Such debentures shall be secured by collateral which shall be at least equal in value to the amount of debentures outstand- ing and which shall consist of cash, direct obligations of the United States ? or notes or other obligations discounted or purchased or rep- resenting loans made under section 34. The provisions of law applicable to the preparation and issue of Federal intermediate credit bank debentures shall, so far as applicable, govern the prepara- tion and issue of debentures issued under this section. The governor shall appoin t a custodian of such coll ateral who sha ll have power subject to such rules and regulations as the governor may prescribe to approve and accept substitutions of collateral. TITLE IV-BANKS FOR COOPERATIVES STOCK OF BANK S SECTION 40. The capital stock of each Bank for Cooperatives estab- lished under section 2 shall be in such amount as the governor deter- mines is required for the purpose of meeting the credit needs of eligible borrowers from the bank under this title, and such amount may be increased or decreased from time to time by the governor in accordance with such needs. Such stock shall be divided into shares of $100 each. Out of the revolving fund created under section 6 of the- Agricultural Marketing Act, as amended, the governor, on behalf of the United States, shall make payments for stock in the banks and such payments shall be subject to call in whole or in part by the board of directors of the bank with the approval of the governor. LE NDI NG POW ER OF BA NKS FOR COOPERATIVES SEC. 41. The Banks for Cooperatives are authorized to make loans to cooperative associations for any of the purposes and subject to the conditions and limitations set forth in the Agricultural Mar- keting Act, as amended, including amendments made by Title V of this Act, and subject t o such terms and condition s as may be pr e- scribed by the board of the bank with the approval of the governor. STOCK SUBSCRIPTIONS AND EARNINGS AND RESERVES SEC. 42 . The provisions of sections 35 and 36 shall apply in the case of Banks for Co operatives in the same mann er and to the same extent as such provisions are applicable to the Central Bank for Coopera tives, except that powers c onferred on t he chairman of the board of the Central Bank shall be exercised by the boards of directors of the Banks for Cooperatives, subject to the approval of the governor.