Page:United States Statutes at Large Volume 49 Part 1.djvu/362

 74TH CONGRESS. SESS. I. CH. 164. JUNE 3, 1935. 317 Federal intermediate credit bank of the land bank district in which the principal business office of the borrower is located ; the rate of Loans upon security located ; interest on any loan made upon the security of commodities shall of commodities. conform, as nearly as may be practicable, to the prevailing interest rate on commodity loans charged borrowers from the Federal inter- mediate credit bank of the land bank district in which the principal business office of the borrower is located ; and that the rate of interest tinoof pfor cofu on any loan made under the provisions of section 7 (a) ( 2) hereof ties. shall conform as nearly as may be practicable to the prevailing p. 265 . 46, n- 14; Vol. 48, rate on mortgage loans made to members of national farm loan associations ." SEC. 12 . Subsection (a) of section 15 of the Agricultural Market- p, Voil : u'. s'. c: po194 41, ing Act, as amended (U. S . C ., Supp . VII, title 12, sec . 1141j), is further amen ded to read as follows "(a) As used in this Act, the term ` cooperative association' means "Cooperativeassocia- any association in which farmers act together in processing, prepar- tion", define d. ing for market, handling, and/or marketing the farm products of persons so engaged, and also means any association in which farmers act together in purchasing, testing, grading, processing, distributing, and/or furnishing farm supplies and/or farm business services Pro vid ed, however, That such associations are operated for the o lotis0ion for mu- mutual benefit of the members thereof as such producers or pur- tnal beneat, etc. chasers and conform to one or both of the following requirements " First . That no member of the association is allowed more than Requirements . one vote because of the amount of stock or membership capital he may own therein ; and " Second. That the association does not pay dividends on stock or membership capital in excess of 8 per centum per annum. "And in any case to the following "Third. That the association shall not deal in farm products, farm supplies, and farm business services with or for nonmembers in an amount great er in value tha n the total amo unt of such bu siness transacted by it with or for members. All business transacted by any cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in deter- mining the volume of member and nonmember business transacted by such association ." SEC . 13 . Section 34 of the Farm Credit Act of 1933 is amended to Fa rm Credit Act of 19 33, a mendm ents . read as follows : Vol. 48, p. 262. " SuC. 34 . Subject to such terms and conditions as may be pre- op at ral ba nk for co- scribed by the Chairman of its Board of Directors, the Central Bank Lending powers of. Vol. 46, p. 18; Vol. is authorized : (a) to make loa ns t o co oper ativ e as soci atio ns, as 48, p. 266 ; u. S. C., defined in the Agricultural Ma rketing Act, as amended, for any of p 411. the purposes and subject to the conditions and limitations set forth in such Act, as amended ; (b) to make loans (by way of discount or otherwise) to b anks for cooper atives organize d under sectio n 2 of Vol.48,p.257. this Act ; (c) to buy from, and sell to, any such bank or any Federal wrothaea~ to deal intermediate credit bank any note, draft, bill of exchange, deben- diate credit ban ks. ture, or other obligations ; and (d) to borrow from, and discount or rediscount paper with, any and all such banks ." SEC. 14. Section 41 of the Farm Credit Act of 1933 (U. S. C., C. p1.448,p.264; U.S. Sup p . VII, title 1 2, sec . 1134c) is amended to read as follows "SEC. 41 . Subject to such terms and conditions as may be pre- ti Banks for coopera- scribed by the Governor, the banks for cooperatives are authorized (a) to make loans to cooperative associations as defined in the Lending powers of. Agricultural Marketing Act, as amended, for any of the purposes and subject to the conditions and limitations set forth in such Act, as amended ; (b) to make loans (by way of discount or otherwise)