Page:United States Statutes at Large Volume 50 Part 1.djvu/738

 75 TH CONGRESS, 1ST SESSION-CH. 704-AUGUST 19, 1937 section, the holders of such stock and the holders of stock issued on and after said date may, pursuant to rules and regulations of the Farm Credit Administration and consistent with the provisions of the Federal Farm Loan Act, as amended, agree as to the rights, power s, privileges, duties, and liabilities which shall then ceforth attach to their respective shares of stock and otherwise agree as to the future applicability, if any, of the special provisions contained in this subsection. (c) Section 11 of the Federal Farm Loan Act, as a mended (U . S . C ., 1934 edition, title 12, sec . 761), is amended by adding a paragraph at the end thereof reading as follows "F ift h . Whenever a Federal land b ank shall have empowered any national farm loan association of its district to collect and pay over to said bank the dues, interest, amortization installments, and other sums payable under the terms, conditions, and covenants of the mortgages taken from its shareholders, such association may, with the approval of said bank, enter into an agreement with another association operating in the same or adjacent territory to make such col lections, for and on behalf of the association thus emp owered to do so, on any or all of said l oans, and immediately pay th e amounts so collected to said land bank . Such agreeme nts shall be mad e upon such terms and conditions and for such consideration as may be ap roved by the F arm Credit Admi nistration ." ( (d) Section 29 of the Federal Farm Loan Act, as amended (U. S. C ., 1934 edition, title 12, sets. 961-966), is further amended by add- ing at the end thereof the following new paragraphs Upon receiving satisfac tory evidence that any natio nal farm loan association has failed to meet its outstanding obligations of any description, and that it will be to the best interests of its creditors and stockholders for the association to continue in business, the Farm Credit Administration may, in its discretion, in lieu of appointing a receiver as hereinabove in this section provided, appoint a conservator for such association and require of him such bond and security as the Administration may deem proper . The person so appointed shall be a land bank appraiser appoin ted under the authority of section 3 of this Act : Provided, however, That. the Farm Credit Administration may, in its discretion, appoint some other qualified person . Any land bank appraiser appointed as a conservator shall serve without any additional compensation. Any other person appointed as a conservator shall receive such compensation as the Farm Credit Administration may authorize. Such compensation and all neces- sary and proper expenses of any such conservatorship shall be paid out of the assets of such association and shall be a lien thereon which shall be prior to any other lien. "The conservator, under the direction of the Farm Credit Adminis- tration, may, when directed so to do, take possession o f the books, records, and assets of every description of such association, and take such action as may be necessary to conserve such assets pending final determination of the finan cial condition of the assoc iation and the conditions under which it may be permitted to continu e in business . Such conservator shall at the earliest practicable date make such investigations as shall be necessary to enable him to prepare an accurate report on the financial condition of such association . In preparing such report he shall value the association's assets and deter- mine its indebtedness : Provided, That in determining said indebted- ness contingent liabilities incurred by the association under the provisions of this Act on endorsed mortgages shall be estimated and included as a debt. Oil the basis of said evaluation of the associa- 713 12U.S.0.§761. Servicing loans ; agreement between lo- cal a ssociations. Terms and condi- tions. 12[".S.C.§§961- 96 6. Failure of national farm loan association to meet obligations . Conservator ; ap- pointment, qualifica- tions, etc . Ante, p.703. Proviso . App ointm ent, oth er than appraiser . Compensation. Authority of con- servator . Inv estig atio ns a nd report . Proviso . Contingent liabili- ties to he included.