Page:United States Statutes at Large Volume 63 Part 1.djvu/1024

 PUBLIC LAWS-CH. 786 -OCT. 29, 1949 national farm-loan association after it has become organized may permit any direct-loan borrower through a branch bank to join the association. As to any direct-loan borrower through a branch bank who participates in the organization of a national farm-loan associa- tion or joins a national farm-loan association after it has become organized (1) the association shall endorse, and thereby become liable for the payment of, his mortgage loan held by the Federal land bank; (2) the stock in the Federal land bank held by him shall be exchanged for a like amount of stock in said bank issued in the name of the association and the association shall issue a like amount of its stock to him, all in the manner and subject to the terms and conditions pro- vided in the fifteenth paragraph of section 7 of this Act (title 12, U. S . C . 723 (d)) ; and (3) the interest rate payable by him, beginning with the next regular installment date following the endorsement of his loan, shall be reduced to a rate one-half of 1 per centum per annum less than the rate paid by him prior to such endorsement." (b) The first sentence of the twelfth paragraph of section 7 of the Federal Farm Loan Act, as amended (title 12 U. S. C. 723 (a)), is further amended by striking the words "in the continental United States". SEC. 2 . Paragraph "Seventh" of section 12 of the Federal Farm Loan Act (title 12, U. S. C. 771) is hereby amended to read as follows: amount "Seventh. The amount of loans to any one borrower shall in no case exceed a maximum of $100,000, but loans to any one borrower shall not exceed $25,000 unless approved by the Land Bank Commissioner, nor shall any one loan be for a less sum than $100, but preference shall be given to applications for loans of $10,000 and under." SEC. 3. All of paragraph "Tenth" of section 13 of the Federal Farm Loan Act, as amended (title 12, U. S . C . 781, Tenth), except the first L and third sentences thereof is hereby repealed. The Secretary of the Treasury shall cause to be carried to the surplus fund and covered into the Treasury the total amount appropriated for subscriptions to paid- in surplus of the Federal land banks and now held in the revolving fund created pursuant to the provisions of law hereby repealed. SEC. 4. The first paragraph of section 22 of the Federal Farm Loan Act, as amended (title 12, U. S . C. 891), is hereby amended to read as follows: ortga "Whenever any Federal land bank, or joint-stock land bank, shall receive any principal payments upon any first mortgage or bond pledged as collateral security for the issue of farm-loan bonds, it shall forthwith notify the farm-loan registrar thereof as may be required by the Farm Credit Administration. Said registrar shall reflect such payment on his records in such manner as may be prescribed by the ton of Farm Credit Administration. Upon notice from the bank that any such mortgage is paid in full, said registrar shall cause the same to be delivered to the proper land bank, which shall promptly cancel said mortgage and transmit such canceled mortgage, together with a release or satisfaction thereof as may be required to satisfy and discharge the lien of record, to the original maker thereof, or his heirs, adminis- trators, executors, or assigns." it DiS SEc. 5. The first sentence of section 5 (a) of the Farm Credit Act of 64. 1937 (50 Stat. 703) is amended to read as follows: "There shall be twelve districts in the United States, including Alaska, Puerto Rico, and Hawaii, which shall be known as Farm Credit Districts and may be designated by number." Approved October 29, 1949. 48 Stat. 45. 47 Stat. 1547 39 Stat. 371. Maximum of loan. Repeal. 47 Stat. 14 . Surplus fund 39 Stat. 378. Reporting i cording of m payments. Oancellat mortgage. Farm Cred tricts. 50 Stat. 704. 12U.S.C.§ 986 [63 STAT.

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