Page:United States Statutes at Large Volume 69.djvu/707

 69

STAT.]

PUBLIC LAW

347-AUG.

11, 1955

(c) by striking out "the raising of livestock" wherever it appears in next to the last sentence of paragraph "Sixth" and substituting therefor "farming operations" and by striking out of such sentence "Land Bank Commissioner" and substituting therefor " F a r m Credit Administration"; and (d) by striking out "$100,000" from paragraph "Seventh" and substituting therefor "$200,000" and by striking out of such sentence "but loans to any one borrower shall not exceed $25,000 unless approved by the Land Bank Commissioner," and substituting "but loans to any one borrower shall not exceed $100,000 unless approved by the F a r m Credit Administration,". SEC. 305. Paragraph "Nineteenth" of section 13 of the Federal Farm Loan Act, as amended, is amended by adding at the end thereof a new sentence as follows: "Such a deferment may be permitted for other purposes for a period not exceeding five years under regulations prescribed by the F a r m Credit Administration.". SEC. 306. (a) That part of section 23 of the Federal F a r m Loan Act, as amended, which precedes the last paragraph, is amended to read as follows: "Every Federal land bank shall semiannually carry to reserve account a sum not less than 50 per centum of its net earnings until said reserve account shall show a credit balance equal to the outstanding capital stock of said land bank. After said reserve is equal to the outstanding capital stock 10 per centum of the net earnings shall be added thereto semiannually until said reserve account shall show a credit balance equal to 150 per centum of the outstanding capital stock of said land bank, and any land bank having a credit balance in said reserve account in excess of 150 per centum of its outstanding capital stock may withdraw such excess from said reserve account with the approval of the F a r m Credit Administration. Whenever said reserve shall have been impaired it shall be fully restored before any dividends are paid. "After deducting the 50 per centum or the 10 per centum hereinbefore directed to be deducted for credit to reserve account, any Federal land bank may declare a dividend or dividends to shareholders of the whole or any part of the balance of its net earnings, but only with the approval of the F a r m Credit Administration. The reserves of land banks shall be invested in accordance with rules and regulations prescribed by the F a r m Credit Administration." (b) The second sentence of section 24 of the Federal Farm Loan Act, as amended, is amended by striking out the period at the end thereof and adding the following: "until said reserve account shall show a credit balance equal to 50 per centum of the outstanding capital stock of said association, and any association having a credit balance in said reserve account in excess of 50 per centum of its outstanding capital stock may withdraw such excess from said reserve account w4th the approval of the F a r m Credit Administration.". (c) The amendments made by (a) and (b) of this section shall become effective on the next January 1, or July 1 whichever first succeeds enactment hereof. SEC. 307. Section 601(a) of the Department of Agriculture Organic Act of 1944 is amended by inserting after "Federal land banks,", the second time it appears therein, "national farm loan associations,"; by striking out "joint-stock land banks," wherever it appears therein; and by striking out the period at the end thereof and inserting ", except that the amounts apportioned to national farm loan associations shall be assessed against and collected from the Federal land bank of the district which may in turn collect such amounts from the associations in a manner approved by the Farm Credit Administration.".

665

^^ use 781.

^^ use 901.902.

^^ ^^^ 9ii-9is.

Effective date, \l ^i}: J32;

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