Page:United States Statutes at Large Volume 69.djvu/697

 69

655

PUBLIC LAW 347-AUG. 11, 1955

STAT.]

CHAPTER 785

Public Law 347 AN ACT

To provide for retirement of the Government capital in certain institutions operating under the supervision of the Farm Credit Administration; to increase borrower participation in the management and control of the Federal Farm Credit System; and for other purposes.

August 11, 1955 [H. R. 5168]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled., That this Act may o/i^s.^'**^" '^'^* be cited as the "Farm Credit Act of 1955". TITLE I—BANKS FOR COOPERATIVES SEC. 101. Section 42 of the Farm Credit Act of 1933, as amended, is amended to read as follows:

48 Stat. 264. 12 USC 1134d,

" SEC. 42. (a) CLASSES OF STOCK; OWNERSHIP; VOTING R I G H T S; DIVIDENDS; AND RETIREMENT or STOCK.—Except as provided in sec-

tion 111 of the Farm Credit Act of 1955, each regional bank for cooperatives shall have the following classes of stock, all of which shall have a par value of $100 per share: "(1) Class A stock shall be issued to and held by the Governor of the F a r m Credit Administration on behalf of the United States, and stock of such banks held by the Governor on the effective date of title I of the F a r m Credit Act of 1955 shall be exchanged, share for share, for class A stock of the respective banks. Class A stock shall be nonvoting and no dividends shall be paid thereon. A t the end of each fiscal year, each of such banks, subject to the provisions of sections 33 and 40, shall determine the amount of class A stock that shall be retired at par by that bank. The minimum amount of class A stock that shall be retired shall be the equivalent in dollar value of the amount of class C stock issued for that year, except that class C stock issued by a regional bank on account of class C stock issued to it by the central bank, class C stock issued by a regional bank in exchange for class B stock the proceeds of which were used to retire an equivalent amount of class A stock, and class C stock issued by a regional bank in exchange for capital stock of the bank outstanding on the effective date of title I of the Farm Credit Act of 1955, shall not be included in such bank's calculation. Any amount of class A stock retired in excess of such minimum amount in one year may be used to reduce to that extent the amount of such stock required to be retired in any subsequent year. Funds from the retirement of class A stock shall be paid into the revolving fund authorized by the Agricultural Marketing Act, as amended, and shall continue to be available for the purchase of class A stock in the banks in accordance with sections 33 and 40. "(2) Class B stock may be issued in series and amounts approved by the F a r m Credit Administration, and may be sold or transferred to any person subject to the approval of the issuing bank. Such stock shall be issued only at par and shall be nonvoting. Any bank may pay dividends of not to exceed 4 per centum per annum on class B stock if declared by the board of directors and approved by the Farm Credit Administration and if the surplus account of the bank, after payment of such dividends, will not be less than 25 per centum of the sum of all its outstanding capital stock. Dividends on class B stock shall not be cumulative, but no bank shall distribute in any year any of its net savings as patronage refunds as provided in section 36 (a) unless for that year a dividend of at least 2 per centum is declared and paid upon outstanding class B stock of the bank. Each series of class B stock shall be issued only with the appi;oval of the

Class A stock.

12 USC 11341, 114Id, 1134b. Post, p. 662.

46 Stat. 11. 12USeH41j (f). e i a s s B stock.

�