Page:United States Statutes at Large Volume 48 Part 1.djvu/372

 346 73d C ONGRESS. SESS. II. CH. 7. J ANUA RY 31, 1934 . when due, the principal of, or interest on, such bonds, the Secretary of th e Treasury sh all pay to the holder the a mount thereof which is hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to Purchase of corpora- all the rights of the holders of such bonds. The Secretary of the tion bonds . Treasury, in his discretion, is authorized to purchase any bonds of the corporation issued hereunder, and for such purpose the Secretary Available funds, of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities hereafter issued under the u Vol. , P4 0, .. 1026; supp. Second Liberty Loan Act, as amended, and the purposes for which VII, p. 770. securities may be issued unde r such Act, a s amended, are extended to include any purchases of the corporation's bonds hereunder. The Secretary of the Treasury may, at any time, sell any of the bonds of the corpo ration acquire d by him unde r this sectio n. All redemp- Oper ation s to be ti treated as public debt ons 7 purchases, and sales by the Secretary of the Treasury of the transactions. bonds of the corporation shall be treated as public debt transactions of the United States. Such bonds shall be fully and adequately secured by such assets of the corporation and in such manner as shall be prescribed by its board of directors. The corporation shall have power to purchase such bonds in the open market at any time and at any price. On such terms and conditions as may be agreed upon, the corporation may exchange such bonds, upon application of any Federal land bank for consolidated farm loan bonds of equal face value issued under the Fe deral Farm Lo an Act, as ame nded, and may exchange such consolidated farm loan bonds held by it for bonds of the corporation of equal face value. (b) The corporation is further authorized to purchase from time to time, for cash, such consolidated farm-loan bonds at such prices and upon such terms as may be approv ed by the boa rd of director s of the corporation, to make loans to Federal land banks on the security of such consolidated bonds, and to invest its funds in mort- gage loans made under section 32 of the Emergency Farm Mortgage Act of 19 33, as amended. (c) In order to furnish b onds for deli very by the Fe deral Farm Mortg age Co rporat ion, the Se cretar y of t he Tr easury is he reby authorized to prepare suitable bonds in such form, subject to the provisions of this Act, as the board of directors may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the corporation. The engraved plates, dies, bed- pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The corporation shall reimburse the Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such bonds. SEC. 5. After ninety days after the enactment of this Act, no Fed- eral land bank shall issue any bonds under the provisions of the last paragraph of section 32 of the Federal Farm Loan Act, as amended, subject to the guarantee of interest on such bonds by the United States except for the purpose of refinancing any bond which is or has been issued subject to such guarantee of interest. S EC. 6 . Direct loans made under section 7 of the Federal Farm Loan Act, as amended (U.S.C ., Sup . VII, title 12, sec . 723), may, at the option of the Federal land bank, be made in bonds of the Federal Farm Mortgae Corporation. SEC. 7 . The, thirteenth paragraph of section 12 of the Federal Farm Loan Act, as amended (U .S.C ., Sup . VII, title 12, sec . 772), is amended to read as follows : Security. Open mark et pur- cha ses. Exch ange for conso li- dated farm loan bonds. Purchase of su ch bonds authorized . Investments in direct mortgage loan s. Ante, p. 48. Form, delivery, etc ., of bonds. Custo dy o f pl ates, etc. Reimbursement. Bond issues by Fed- eral land bank to c ease in 90 days. Ante, p. 41 . Except for refinanc- ing. Federal Far m Loan Act, amendment. Vol. 39, p. 367; Vol. 47, p. 1547. Loans in Farm Mort- gage Corporation bonds. Vol. 39, p. 372 . Ante, p. 42. U.S .C ., Supp. VII, p 193.