Page:United States Statutes at Large Volume 85.djvu/622

 592

PUBLIC LAW 92-181-DEC. 10, 1971

[85 STAT.

(16) Amend and modify loan contracts, documents, payment schedules, and release, subordinate, or substitute security for any of them. (IT) Conduct studies and make and adopt standards for lending. (18) Enter into loss sharing agreements with other Federal intermediate credit banks and production credit associations. (19) Exercise by its board of directors or authorized officers, employees, or agents all such incidental powers as may be necessary or expedient to carry on the business of the bank. (20) Participate with one or more other Federal intermediate credit banks or production credit associations in the district, in loans under this title on such terms as may be agreed upon among such banks and associations. (21) Perform any function delegated to it by the F a r m Credit Administration. SEC. 2.2. FEDERAL, INTERMEDIATE CREDIT B A N K STOCK; VALUE; DIVIDEND; ADDITIONAL STOCK; RETIREMENT.— (a) The capital stock of

each Federal intermediate credit bank shall be divided into shares of par value of $5 each and may be of such classes as its board of directors may determine with the approval of the F a r m Credit Administration. (b) Voting stock of each bank shall be held only by the production credit associations which stock shall not be transferred, pledged, or hypothecated except as provided in this title or as authorized under regulations of the F a r m Credit Administration. (c) The board of each bank shall from time to time increase its capital stock to permit the issuance of additional shares to production credit associations in such amounts as shall be determined by the board. (d) Nonvoting stock may be issued to the Governor of the Farm Credit Administration. Nonvoting stock may also be issued to production credit associations in such amounts as will permit the association to extend financial assistance to eligible persons other than farmers, ranchers, and producers or harvesters of aquatic products. Participation certificates, with a face value of $5, may be issued in lieu of such nonvoting stock when the bylaws of the bank so provide. (e) Participation certificates also may be issued by a bank to financing institutions other than production credit associations which are eligible to borrow from or discount eligible paper with the bank. (f) Dividends shall not be payable on any stock held by the Governor of the F a r m Credit Administration other than the tax imposed by section 4.0(c) but noncumulative dividends may be payable on other capital and participation certificates in an amount not to exceed a per centum permitted under regulations of the F a r m Credit Administration, in any year as determined by the board of directors. Such dividends may be in the form of stock and participation certificates or, when the Governor of the F a r m Credit Administration holds no stock in the bank, in cash. The rate of dividends may be different between different classes and issues of stock and;participation certificates on the basis of the comparative contributions of the holders thereof to the capital or earnings of the bank by such classes and issues, but otherwise dividends shall be without preference. (g) Each Federal intermediate credit bank, with the approval of the F a r m Credit Administration, may determine the amount of the initial or additional stock in the bank to be subscribed for by the production credit associations in the farm credit district served by the bank in order to provide capital to meet the credit needs of the bank. The amount so determined shall be allotted among the associations in the district upon such basis that, as nearly as may be practicable, the sum of the stock already owned and the additional amount to be sub-

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