Page:United States Statutes at Large Volume 70.djvu/715

 70 ST AT. 3

PUBLIC LAW 809-JULY 26, 1956

Public Law 809

659 CHAPTER 741

AN ACT To merge production credit corporations in Federal intermediate credit b a n k s; to provide for retirement of Government capital in Federal intermediate credit b a n k s; to provide for supervision of production credit associations; and for other purposes.

July 26, 1956 [H. R. 10285.1

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may ^^^g^f, C'**"* ^^^^ be cited as the "Farm Credit Act of 1956". DECLARATION OF POLICY

SEC. 2. I t is declared to be the policy of the Congress to continue to provide agriculture with a sound, dependable, and effective source of credit; to promote the efficiency of the farm credit system by merging production credit corporations in Federal intermediate credit banks and to facilitate increased farmer participation in the management, control, and ownership of the merged banks and retirement of Government capital therein; to encourage and promote the continued growth and development of the production credit associations as self-supporting cooperative lending institutions operating on a sound credit basis with maximum local authority to determine credit needs and loan policies consistent with the maintenance of a national production credit system; and to continue to provide other financing institutions making loans to farmers and ranchers with the ri^ht to borrow from and rediscount with such merged banks on a basis comparable with the production credit associations regardless of the ownership of such banks. The provisions of this Act shall be construed in keeping with this declaration of policy. TITLE I—PRODUCTION CREDIT SYSTEM SEC. 101. MERGER OF PRODUCTION CREDIT CORPORATIONS IN FEDERAL INTERMEDIATE CREDIT B A N K S — (a) TRANSFER OF ASSETS.—The pro-

duction credit corporation in each farm credit district is hereby merged in the Federal intermediate credit bank of the district and all assets, funds, contracts, property, and records belonging to such corporation, except stock in production credit associations, are hereby transferred to and vested in such bank. All obligations and liabilities of the production credit corporation shall be assumed by the Federal intermediate credit bank of the district. Stock held by each production credit corporation in production credit associations is transferred to the Governor of the Farm Credit Administration and the Governor shall cancel an equal par amount of stock of the corporation. (b)

SERVICES TO AND SUPERVISION OF PRODUCTION CREDIT ASSOCIA-

TIONS.—In order to carry out the declared policy of this Act with respect to the production credit associations, the Farm Credit Admin istration shall, by appropriate provisions in the charter and bylaws, or otherwise, provide for such organization and assignment of functions within the Federal intermediate credit banks as will assure proper supervision of and assistance to the production credit associations in a manner which will enable them to make sound credit available to farmers and ranchers. The income derived from the surplus transferred from the production credit corporation to the Federal intermediate credit bank of the district shall be used to pay expenses of the bank in providing such supervision and assistance, and expenses in excess of such income may be paid out of other resources of the bank.

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