To authorize the Central Bank for Cooperatives and the regional banks for cooperatives to issue consolidated debentures, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 37 of Banks for cothe Farm Credit Act of 1933, as amended (title 12, U. S. C., 1134m), operation. is hereby amended by substituting the word "paragraph" for the word 48 Stat. 263. "section" in the next to the last sentence thereof and by adding thereto the following new paragraph: "When the Central Bank for Cooperatives and the regional banks Consolidated for cooperatives shall by resolutions consent thereto, consolidated debentures, debentures of the thirteen banks for cooperatives may be issued in the manner and form and on terms and conditions approved by the Farm Credit Administration. There shall be a debenture committee com- Committee. prised of the presidents of the twelve regional banks for cooperatives 12 USC 641. and the chief executive officer of the Central Bank for Cooperatives 68 Stat. 770. which shall exercise with respect to such consolidated debentures 68 Stat. 771. powers and functions equivalent to the powers and functions of the Bond Committee of the Federal Land Banks as authorized by the Federal Farm Loan Act, as amended, and shall operate in accordance 39 Stat. 360; with the provisions of law applicable to such Bond Committee (title 42 Stat. 1454. 12, U. S. C., 883-886). Such debentures shall be made payable at any of the banks for cooperatives and may be made payable at any Federal Reserve bank or banks designated on the face of the debentures. Such debentures shall be the joint and several obligations of the Central Bank for Cooperatives and of the regional banks for cooperatives, and each of such banks is hereby authorized and directed to take such action as is necessary to become obligated for such debentures. The debentures shall be secured by collateral which shall be at least equal in value to the amount of debentures outstanding and which shall consist of cash, direct obligations of the United States, or notes or other obligations discounted or purchased or representing loans made under sections 34 and 41, as amended (title 12, U. S. C., 1134j, 1134c). 50 Stat. 717; The Farm Credit Administration shall appoint a custodian or 63 Stat. 1059, custodians of such collateral who shall have power subject to 1058. such rules and regulations as the Administration may prescribe to approve and accept substitutions of collateral. The total amount of such consolidated debentures plus any outstanding individual debentures of the Central Bank which may be issued and outstanding at any time shall not exceed eight times the capital and surplus of the Central and regional banks for cooperatives. The provisions of law made applicable by the preceding paragraph to the preparation and issue of debentures by the Central Bank for Cooperatives shall govern the preparation and issue of debentures under this paragraph and they shall be signed by the Governor of the Farm Credit Administration and attested by any deputy governor. Insofar as applicable, the provisions of the Federal Farm Loan Act, as amended, relative to the call for additional security and failure of any bank to pay its proportion of interest or principal shall apply to the consolidated debentures of the banks for cooperatives. Debentures issued under the provisions of this Act by banks for cooperatives shall be a lawful investment for all fiduciary and trust funds, and may be accepted as security for all public deposits." All 68 Stat. 771. SEC. 2. The last sentence of paragraph Seven of section 5136 of the Revised Statutes, as amended (title 12, Ü. S. C., 24), is hereby amended by striking the words "Central Bank for Cooperatives" and inserting in lieu thereof the following: "thirteen banks for cooperatives organ12 USC 639 note. ized under the Farm Credit Act of 1933, or any of them". Approved August 23, 1954. · All 69 Stat. 81. Federal Farm Mortgage Corp., assets. 39 Stat. 372. 12 USC 791. To amend section 13 of the Federal Farm Loan Act, as amended, to authorize the Federal land banks to purchase certain remaining assets of the Federal Farm Mortgage Corporation. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 13 of the Federal Farm Loan Act, as amended, is amended by adding at the end thereof the following new paragraph: "Twentieth. Without regard to any limitations or restrictions of this Act, to purchase all assets, except cash, accounts receivable, and reserved mineral interests, held by the Federal Farm Mortgage Corporation as a result of loans made on or before July 1, 1947, in the farm credit district in which said bank is situated and to assume the liabilities of said Corporation for future payment funds of borrowers and trust accounts applicable to said assets. The purchase price of notes and mortgages, purchase money mortgages, and real estate sales contracts shall be equal to the total of the unpaid balances on such items and accrued interest thereon at the date as of which purchase is made; less the total of the liabilities of the Corporation being assumed by the bank as herein provided. The purchase price of real estate, sheriffs' certificates, loans called for foreclosure, loans in suspense, judgments, and any other assets eligible for purchase under this paragraph but not specifically identified herein shall be equal to the fair market value of the assets as determined by agreement. The total consideration for the purchase shall be payable over a period of not more than ten years from the date as of which purchase is made, and upon such terms as shall be agreed upon through negotiation with the Board of Directors of the Corporation." Approved June '1, 1955. 65 Stat. 614. 12 USC 1138f. Central Bank for Cooperatives, etc. To adjust the rates of basic compensation of certain officers and employees of the Federal Government, and for other purposes. SEC. 5. Section 66 of the Farm Credit Act of 1933 (48 Stat. 269) is hereby amended to read as follows: "SEC. 66. No director, officer, or employee of the Central Bank for Cooperatives or of any production credit corporation, production credit association, or bank for cooperatives shall be paid compensation at a rate in excess of $14,620 per annum." Approved June 28, 1955. 99 Public Law 347 84th Congress Chapter 785 - 1st Session H. R. 5168 AN ACT All 69 Stat. 655. 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. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Farm Credit be cited as the "Farm Credit Act of 1955". TITLE I-BANKS FOR COOPERATIVES Act of 1955. SEC. 101. Section 42 of the Farm Credit Act of 1933, as amended, is 48 Stat. 264. amended to read as follows: “SEC. 42. (a) CLASSES OF STOCK; OWNERSHIP; VOTING RIGHTS; DIVIDENDS; AND RETIREMENT OF STOCK.-Except as provided in section 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: 12 USC 1134d. "(1) Class A stock shall be issued to and held by the Governor Class A stook. of the Farm 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 Farm Credit Act of 1955 shall be exchanged, share 662. for share, for class A stock of the respective banks. Class A stock 12 USC 11341, shall be nonvoting and no dividends shall be paid thereon. At the 1141d, 1134b. end of each fiscal year, each of such banks, subject to the provisions Post, p. 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 46 Stat. 11. continue to be available for the purchase of class A stock in the banks 12 USC 1141j (f). in accordance with sections 33 and 40. "(2) Class B stock may be issued in series and amounts approved Class B stook. by the Farm 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 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 approval of the All 69 Stat. 656. 12 USC 640a et seq. 67 Stat. 390. 12 USC 6360. p.666. Farm Credit Administration and shall carry on the face of each Class C stook. "(3) Class C stock, except as approved by the Farm Credit Administration and consented to by the issuing bank, may be issued only to banks for cooperatives and farmers' cooperative associations as defined 12 USC 11413. in section 15 (a) of the Agricultural Marketing Act, as amended. Such stock may be issued in fractional shares, shall be issued at its fair book value not exceeding par, as determined by the bank, and no dividends shall be paid on it. Each holder of one or more shares of class C stock which is eligible to borrow from a bank for cooperatives shall be entitled to one vote only: Provided, That any such holder which within the period of two years next preceding a date, fixed by the Farm Credit Administration, prior to commencement of the voting has not been a borrower from a bank of which it holds class C stock shall not be entitled to vote. From time to time each bank for cooperatives shall obtain information concerning its class C stockholders to determine whether they continue to be eligible to borrow from the bank and to vote. Any class C stockholder found by the bank to be ineligible to borrow shall not be entitled to vote until its eligibility is reestablished to the satisfaction of the bank. Whenever in section 5 of the Farm 50 stat. 704. Credit Act of 1937, as amended, and section 4 (a) of the Farm Credit Act of 1953, provision is made for a nomination or election by cooperatives which are stockholders or subscribers to the guaranty fund of any bank for cooperatives the term 'cooperatives which are stockholders or subscribers to the guaranty fund' or the equivalent of that term, shall mean such cooperatives which are eligible to vote. . Each borrower from a bank for cooperatives shall be required to own at the time the loan is made at least one share of class C stock. The purchase price of such stock may be retained out of the loan. In addition, each borrower as defined by the Farm Credit Administration for purposes of this sentence, shall be required to invest quarterly in class C stock an amount equal to not less than 10 nor more than 25 per centum, as prescribed by the board of directors of the bank with the approval of the Farm Credit Administration, of the amount of interest payable by it to the bank during the calendar quarter. Payments for such stock shall be made quarterly or when the regular interest payments of the borrower are payable, but the stock shall be issued to the borrower as of the end of each fiscal year in the amount of the payments for stock made by it during the year. Each regional bank shall purchase at least one share of class C stock of the central bank. In addition, the regional bank shall be required to invest quarterly in class C stock of the central bank an amount equal to not less than 10 nor more than 25 per centum, as prescribed by the board of directors of the central bank with the approval of the Farm Credit Administration, of the amount of interest payable by the regional bank to the central bank during the calendar quarter by reason of any interest purchased by the central bank in a loan made by the regional bank. Payments for such stock shall be made to the central bank and the stock shall be issued to Post, |