Page:United States Statutes at Large Volume 48 Part 1.djvu/297

 73d CONGRESS. SESS. I. CH. 98. JUNE 16, 1933. 271 the first local director whose regular term so expires shall be elected by and be representative of Production Credit Associations and the successors of the second local director whose regular term so expires shall be elected by and be representative of borrowers from Banks for Cooperatives. The successors of the third local director whose regular term so expires shall be elected by and be representative of national farm-loan associations and borrowers through agencies. SEC. 71. Paragraph " Sixth " of section 14 of the Federal Farm V1•47, v9, . 373; Loa n Act, as ame nded, is amen ded to read as follows : U.S.C., p .1649. . 307. Bank restr icti ons. "Sixth . To accept as additional security for any loan to any bor- Accept MgassecurhVV rower under this A ct, o r any instal lment on an y such loan any personal property f exempt from execution personal property which is exempt from execution upon judgment under State laws . under the laws of the State in which the land with respect to which the mortgage is given is situated ." SEC. 7 2 . Notwithsta nding the pro visions of th e fourth parag raph v s•c ., p9895p. 369; of section 9 of the Federal Farm Loan Act, as amended (U .S.C., title Responsibility of 12, sec . 744), the shareholders of national farm-loan associations share holders. shall not be held individually responsible for any contract, debt, or engagement of such association entered into after the date of the enactment of this Act, but this section shall not be construed to relieve any other liability with respect to stock held by such share- holders. SEC. 73. Paragraph " Second " of section 12 of the Federal Farm Vol. 39, p. 370; U.S.C., p.305. Loan Act, as amended (U.S .C., title 12, sec . 771), is amended by for n mak ing ban ks, c har ges inserting after exceeding where it ap pears the s econd time a comma and the following : " except with the approval of the Governor of the Farm Credit Administration,". SEC. 74. The first sentence of paragraph " Sixth " of section 12 of 11 01 .39,p.371;U.S.C., the Federal Farm Loan Act, as amended (U .S .C ., title 12, sec . 771), p' 3055 is amended to read as follows "No such loan shall be made to any person who is not at the time, cl asses to whom loans may or shortly to become, engaged in farming operations or to any other extended . b e made person unless the principal part of his income is derived from farm- ing operations ." SEC. 75 . (a) Paragraph " Fourth " of section 14 of the Federal a 307 a9,p.373, U .S .C ., Farm Loan Act, as amended (U .S .C., title 12, sec . 791), is amended by inserting after " bonds " the following : "(including consolidated bonds issued on its behalf) " The word "in- (b) Section 21 of the Federal Farm Loan Act, as amended, is dor sed de let ed In amended by striking out of the fourth and tenth paragraphs thereof acr ltam provisions of (U.S.C ., title 12, sees . 874 and 880) the word " indorsed " wherever u Vol . 42, p 1 319 ; the same appea rs in said pa ragraphs . amended . SEC . 76. (a) Section 201(b) of the Federal Farm Loan Act, as B IIn nt te srm ediate Credi t amended (U.S .C ., title 12, sec . 1022), is amended to read as follows : Vol. 42, p. 1454; U.S.C., p. 3 16, (b) Such institutions shall be established in the same cities as amended' the twelve Federal Land Banks . The directors of the several Fed- Dir ect ors . eral Land Banks shall be ex officio directors of the several Federal Intermediate Credit Banks hereby provided for and shall have power, subject to the appro val of the Go vernor of the Farm Credit Administration, to employ and fix the compensation of such officers , Compensation pr o- and employees of such Federal Intermediate Credit Banks as may be necessary to carry on the business authorized by this title ." (b) Paragraph (1) of subsec tion (a) of s ection 202 of the Fed- Discounts andloans . l ans. eral Far m L oan Act, as ame nded (U .S.C ., title 12, sec. 1031), is u .s .C ., p. 3 16, amended to read as follows : amended . " To discount for or purchase from, any national bank Credit unions in- (1) > y f eluded as eligible bor » and/or any State bank, trust company, agricultural credit corpo A rowers. ration, incorporated livestock loan company, savings institution,