Page:United States Statutes at Large Volume 50 Part 1.djvu/740

 75 TH CONGRESS, 1sT SESSION-CH. 704-AUGUST 19, 1937 "In the event that the indebtedness, as determined by the con- servator, of an association which has been under conservatorship pursuant to this section increases in excess of the earnings of such association, the Farm Credit Administration may, in its discretion, again appoint a conservator for the association, or it may appoint a receiver as elsewhere provided in this section ." SEC. 26 . Section 201 (c) of the Federal Farm Loan Act, as amended (U. S . C ., 1934 edition, title 12, sec . 1023), is amended by adding to the end thereof the following paragraph "Each Federal intermediate credit bank shall have power to acquire and di spose of such property, re al or personal, as may be necessary or convenient for the transaction of its business, which, however, may be leased to others for revenue purposes ." SEC. 27 . Section 203 (a) of the Federal Farm Loan Act, as ame nd ed (U. S. C., 1934 edition, Supp . II, title 12, sec . 1041), is further amended by striking out the comma after the word "banks" and the following : "when chartered and established," ; and by inserting after the comma which follows the word "cash," the following : "United States Government bonds, Federal Farm Mortgage Corporation bonds,". SEC. 2S. Section 203 (b) of the Federal Farm Loan Act, as amended (U . S . C ., 1934 edition, title 12, sec . 1042), is amended to read as follows "(b) The provisions of title I of this Act relating to the prepara- tion and issue of farm loan bonds shall, so far as applicable, govern the preparat ion and issue of debenture s or other suc h obligations issued under the preceding section ; but the Farm Credit Adminis- tration shall prescribe rules and regulations governing the receipt, custody, substitution, and release of the cash, obligations of the United State s Government, and notes or other obligat ions securing such deb entu res, the rig ht o f su bsti tuti on b eing her eby gran ted, and in the event such notes or other obligations are secured by warehouse receipts, shipping documents, or other similar credit instruments, may permit the substitution of trust receipts therefor in such manner and subject to such conditions as may be approved by the said Administration . Rates of interest upon debentures and other such obligations issued under the preceding section shall, subject to the approval of the Farm Credit Administration, be fixed by the Federal intermediate credit bank making the issue, not exceeding 6 per centum per annum. " SEC. 29 . Section 204 (c) of the Federal Farm Loan Act, as amended (U. S. C., 1934 edition, title 12, sec . 1053), is amended to read as follows "(c) Subject to the approval of the Farm Credit Administration, a Federal intermediate credit bank may buy for its own account any debentures or similar obligations issued by or for the benefit and account of such bank or other Fede ral intermedi ate credit ba nk or banks, and (1) hold until maturity any such deb entures or si milar obligations or (2) retire before maturity any such debentures or similar obli ations issued by it or for its benefit and account ." SEC. 30. Section 206 (b) of the Federal Farm Loan Act, as amended (U . S. C ., 1934 edition, title 12, sec . 1072) is further amended to read as follows : "(b) Subject only to review and approval by the Farm Credit Admin istration, ea ch Federal int ermediate cre dit bank, at the end of its fi scal ye ar, aft er all its ne cessary expen ses and costs of ope ra- tion for such fiscal year have been paid or provided for, shall apply its net earnings then remaining, first, to making up any losses in 715 Action where in- debtedness increases in excess of earnings. Federal intermedi- ate credit banks. 42 Stat. 1454. 12U.S.C.§1023. Acq uisiti on and dis- posal of property . 42 Stat. 1456. 12 U. S. C., Supp. II,§1041. Collateral security fo r debe ntures. 42 Stat .1456. 12 U.S. 0.§1042. Debentures, etc., preparation and issue ; regulations governing collateral. Interest rates. 42 Stat. 1456. 12u.s.C.§1053. Purchase, for own account. 42 Stat . 1457. 12U .S .C.§1072. Disposition of an- nual earnings.