Page:United States Statutes at Large Volume 85.djvu/639

 85 STAT. ]

PUBLIC LAW 92-181-DEC. 10, 1971

609

by the United States or any State, territorial, or local taxing authority. Such banks, their property, their franchises, capital, reserves, surplus, and other funds, and their income shall be exempt from all taxation now or hereafter imposed by the United States or by any State, territorial, or local taxing authority; except that interest on the obligations of such banks shall be subject only to Federal income taxation in the hands of the holder thereof pursuant to the Public Debt Act of 1941 (31 U.S.C. 742(a)) and except that any real and tangible personal property of such banks shall be subject to Federal, State, territorial, and local taxation to the same extent as similar property is taxed. The exemption provided in the preceding sentence shall apply only for any year or part thereof in which stock m the bank for cooperatives is held by the Governor of the F a r m Credit Administration.


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TITLE IV — PROVISIONS A P P L I C A B L E TO T W O OR MORE CLASSES O F INSTITUTIONS OF THE SYSTEM PART A — F U N D I N G SEC. 4.0. STOCK PURCHASED BY GOVERNOR; RETIREIVIENT; F R A N CHISE T A X; REVOLVING F U N D. — (a) The Federal land banks, the

Federal intermediate credit banks, the banks for cooperatives, and, subject to section 2.13(d), the production credit associations may issue stock which may be purchased by the Governor of the F a r m Credit Administration on behalf of the United States as a temporary investment in the stock of the institution to help one or several of the banks or associations to meet emergency credit needs of borrowers. The ownership of such stock shall be deemed to not change the status of ownership of the banks or associations, but, during the time such stock is outstanding, the pertinent provisions of the Government Corporation Control Act shall be applicable. (b) The Governor shall require the retirement of such stock at such time as in his opinion the bank or association has resources available therefor and the need for such temporary investment is reduced or no longer exists. If the Governor determines that a production credit association does not have resources available to retire stock held by him, but in his judgment, the Federal intermediate credit bank of the district has resources available to do so, the Governor may require such bank to invest in an eq^uivalent amount of nonvoting stock of said association and the association then shall retire the stock held by the Governor. (c) For any year or part thereof in which the Governor holds any stock in a bank of the System, such institution after complying with sections 1.17, 2.6, 2.14, 3.11, respectively, shall pay to the United States as a franchise tax a sum equal to the lower of 25 per centum of its net earnings for the year before establishing any contingency reserves or declaring any dividends or patronage distribution, not exceeding a rate of return on such temporary investment calculated at a rate determined by the Secretary of the Treasury equal to the average annual rate of interest on all public issues of debt obligations of the United States issued during the fiscal year ending next before such tax is due, multiplied by the percentage that the number of days such stock is outstanding is of three hundred and sixty-five days. Such payments shall be deposited in the miscellaneous receipts in the Treasury. SEC. 4.1. REVOLVING FUNDS AND GOVERNMENT DEPOSITS.—(a)

59 Stat. 5 9 7. 31 Stat. 841 note.

The

revolving fund established by Public Law 87-343, 75 Stat. 758, as amended, shall be available at the request of the Governor of the

12 USC 113 a.

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