EASINGS AND RESERVES OF FISHEZY COOPERATIVE Load CORPORATION Suc. 8. The Fishery Cooperative Loan Corporation shall, at the end of its fiscal year, apply the amount of its earnings in excess of operating expenses during such final year, first, to making up ans losses incurred: second to the restoration of the amount of the impairment, if any, of capital and guaranty fund as dewerinined by the chairman of the board : and at least 25 per centum of the remainder of such excess of earnings shall be applied to the creation and maintenance of a surplus equal to at least 35 per centum of the amount of the capital and guaranty fund. Any sums remaining may, with the approral of the chairman of the board, be devoted to the payment of dividends. Subscribers to the guaranty fund shall be entitled to dividends in the same amount as subwriters to stok Xo rate of dividend in excess of per centum per annum shall be paid Dividends on stock held bs the Secretary, when paid, shall be credited to the resolving fund created herein.

REVOLVING FUND AND ADMISISTRATIVE APPROPRIATIONS Sv. 9, (a) There is hereby authorized to be appropriated the sum of $1.00, which shall be made arailable by the Congress as soon as practicable after the approval of this Act and shall constitute a revolving fund to be administered by the Secretary as provided in this Act.

(1) The Treasury shall make available to the Secretary sums from this resolving fund in such amounts and at such times as the Secretary may direct for the p'ırposes and within the limitations herein espressed

(b) There is hereby authorized to be appropriated, from any money in the Treasury not otherwise appropriated, the sum of $100.00 for all necessary

xcautive and administrative expenses incurred prior to July 1, 188, in con16-11on with establishing and operating the Fishers Cooperative Loan Corporation,

(e) There is hereby authorized to be appropriated, from any money in the Treasury not otherwise appropriated, the sum of $25.000 for expenditures incurred prior to July 1, 1938, in establishing the fishers cooperative marketing 141191 bereinafter provided, and in executing and administering the functions autoriza by mention 10 hereof.

(d, No, part of the moneys appropriated in pursuance of the authorizations in sub-11on (h) and (c) of this section shall be arailable for expenditures, including dorans and advances for the payment of which the rerolring fund is authorized to be und.

(ej The Sorotary shall have anthority to aleate and expend out of the funds covered by this section such amounts as he shall deem necessary for salaries, eX]**]j5tk. and all other administratire expenditures in the execution of the functions for which such funds are herein specified.

ESTABLISHMENT OF A COOPERATIVE MARKETING SECTION SEC, 10. (a) The Secretary of Commerce is hereby authorized and directed to establish a Fishery cooperative Marketing Sextion in the Bunnu of Fisheries of the Department of Commerce for the following purpmer's and functions:

(1) To conduct marketing and economie studies and make analysis of tishery (wrative associations to encourage the organisation and development of effektive cooperative as wiations, and the improvement in caesparirarispinethods;

(2) To make marketing and economie studies and suries of the cooperative production or marketing of aquatie produers the bonprius thermir, and of areas in which aquatie products are cooperativell porvinuri or markered for the purpose of analyzing existing fishers operative arnitin's ver to the fermine the probable success of contemplatex fishery comparative marketing activity; such studies, surrers and analyses mar include any or all plastis Mutions, and activities in connection with the cooperative prinction and or m'rrhandising of aquatic products, the byproducis theref, or products manufactured therefrom; and

(3) To promote education in the principles and practior's of experative production or marketing of aquatie produets, the byproluces thereof or manafactured therefrom. and to aid and assist fishery cooperative associations and fishermen or planters of aquatic products in organizing and operating fishery cooperative associations through field or extension service, and ihrough studies, surveys, and analyses authorized in this section, and to publish reports and provide other information and literature pertaining to the cooperatire produe

A

tion or marketing of aquatic products, the byproducts thereof or manufactured therefrom.

(b) As provided in sections 3 and 4 of this Act, the Director of the Cooperative Marketing Section of the Bureau of Fisheries shall be the executive secretary of the board of the Fishery Cooperative Loan Corporation and administrative officer of said Corporation, and the Secretary shall take such action as he deems necessary to coordinate the work, personnel, functions, and services of the cooperative section with the purposes, functions, and activities of the Fishery. Cooperative Loan Corporation as are provided in this Act and as shall be set forth in the articles of incorporation and bylaws of the Corporation.

MISCELLANEOUS PROVISIONS

SEC. 11. (a) As used in this Act "cooperative association” or “fishery cooperative association” means any association in which fishermen or planters of aquatic products act together in the legal catching, collecting, taking, planting. cultivating, propagating, producing or harvesting aquatic products, or in processing, handling, preparing for market, and/or marketing the aquatic products of said persons so engaged, and also means any association in which fishermen or planters of aquatic products act together in purchasing, testing, grading, processing, distributing, and/or furnishing fishery and marine supplies and equipment and/or fishery business services: Provided, however, That such associations are operated for the mutual benefit of the members thereof as such producers or purchasers and conform to one or both of the following requirements:

First. That no member of the association is allowed more than one vote because of the amount of stock or membership capital he may own therein; or

Second. That the association does not pay dividends on stock or membership capital in excess of 8 per centum per annum.

And in any case to the following:

Third. That the association shall not deal in aquatic products, fishery and marine supplies and equipment, and fishery business services with or for nonmembers in an amount greater in value than the total amount of such business transacted by it with or for members.

(b) All business transacted by any fishery cooperative association for or on behalf of the United States or any agency or instrumentality thereof shall be disregarded in determining the volume of member and nonmember business transacted by such association.

(c) As used in this Act the term “aquatic products” shall mean fish, mollusca, crustacea, seaweeds, and all other aquatic forms of animal and vegetable life legally caught, collected, taken, planted, cultivated, propagated, produced, or harvested by lawful methods, as a means of livelihood.

.(d) For the purpose of carrying out the provisions of this Act, the Secretary of Commerce may make such rules, regulations, and orders consistent with the provisions hereof as may be necessary; may cooperate with any department or agency of the Federal Government or State, county, municipality, public or private agency; shall have the power within the civil-service rules and regulations to appoint, remove, and fix the compensation of necessary officers and employees; and may make such expenditures in the District of Columbia and elsewhere for communications, travel, books, periodicals, printing, stationery, rent, furniture, office equipment, supplies, and materials, and other expenses as he may consider necessary.

(e) This Act may be cited as the “Fishery Credit Act."

(H. R. 7309, 75th Cong., 1st sess. ]

A BILL To establish a Fishery Credit Corporation, to promote the cooperative production

and merchandising, of aquatic products in interstate and foreign commerce, and to provide for organizations within the Bureau of Fisheries of the Department of Commerce for service in connection therewith

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

DECLARATION OF POLICY

SECTION 1. That it is hereby declared to be the policy of Congress to promote cooperative activity among producers of aquatic products in the collective planting, cultivating, propagating, producing, harvesting, catching, taking, collecting, or zathering of aquatic products, and the ecetire merchandising of aqnatie products in interstate and foreign Claere v bar ide fostery industry will be placed on a basis of economie euality with t-I İLİNstries and to that end to protet. Gntrol and stabilize the Citedts of Liensate ald foreim Commerce in the marketing of aquatie prúducts

11. By minimizing syariation: (2) Bs presenting in-firient and wasteful distribution: 13. Bş edecorazilz the organization of producers of agzatie produs into effective axvriations in accordance with the promisions of as act of Calgress a poro. Jane 25. 134 Pobiic. Sumbend 64. Setee:- : Couges, for mrater unity of effort in marketing and purchasing. abdi by promoting the wablishment and financing of a fistery marketing add pareg Tsem of producerad aud procervituted fibery cuoperative associates

ESTABLISH VESI GE THE "FISHEET CREDIT COZPORATION Sec. 2 The Secretary of Commerce, hereinafter referred :o as the Seretary. is bereby arborized and directed to organize aid charter à co to be

5a: "Fiver Credit Ciz. Lereinafter referito as the Corpratica with is principal e in the Diszic of Colombia and bach cices ic - cher places as in the opinion of the Secretary var ke Dew or

Teini ferite clerce of the powers and functious of such corporation as Lecisa ter t forh.

Sec. 3. Tte Corporation stal tare getessica unii discuted in accordance wit act det of Corre: sal tare power tù se and love Selic ass court, to adapt ard a Grbrade 2. to preside braws ating the general

droits besiness and the banner in which ite prirzezes canai to it bs is tarte Iezi to rate cuartaces to acne. Ind. and dise of reaazd persocal propery best and beideat to tie cocons of its business, to perhe free and charge for lars and aber eties: ard di tare such 402 berary and incides to carrying out the powers and duties Lezets 26 and as a te pod iste carter of the corporation, or in any a bezdirect the Doorssen: with ceis de or any otger det of Corzas The Cozy na 200 star de ecried to toe free rse of tbe laited Sass 9 is the same irder as the executive departs of the Gurernrecs The Corporatio. de coccer: of any bear acrison, independE: say screcio elective department of the Grerna. zar araä itself of be ose of informaz. Ertices ische vers ageers and emporees teso ir artiuZ Ock the peut soos dithis det

B2230 OF DUTE OF CearceTION

term of any director whose successor is to be appointed from among nominees as herein provided or as soon as practicable after a vacancy occurs in the office of such director other than by the expiration of his term, cause notice of the vacancy to be sent to each borrower eligible to vote for nominees. Each such borrower shall be eligible to cast one vote. The Secretary shall not count any ballot received after the expiration of thirty days after the sending of notice. From those (not exceeding three) receiving the highest number of votes, as shown by his count, the Secretary shall appoint the director.

POWERS OF THE BOARD

SEC. 5. The board shall have such powers as may be prescribed in the charter and bylaws of the Corporation, including the power, subject to approval of the Secretary and in accordance with the laws applicable to the employment and compensation of officers and employees of the United States, to employ and fix the compensation and duties of such agents, officers, and employees of the Corporation as may be necessary to carry out the powers and duties conferred upon the Corporation by this Act, to require bonds of them and fix the penalties thereof, and to prescribe the manner in which the obligations of the Corporation shall be incurred and its expenses allowed and paid.

The chairman of the board shall be the chief executive officer of the Corporation, and the executive secretary of the board shall be the administrative officer of the Corporation.

CAPITAL OF CORPORATION

SEC. 6. The authorized capital stock of the Corporation shall be $3,000,000. From the money authorized to be appropriated by section 12 (a) hereof, the Secretary is authorized and directed to subscribe and make payment for stock of the Corporation in such amount as the board determines is required for the purpose of the Corporation as provided in this Act, and such payments shall be subject to call by the chairman of the board. The stock of the Corporation shall be divided into shares of $100 each and shall be issued in accordance with provisions of this Act and the charter and bylaws of the Corporation not inconsistent herewith.

LENDING POWER OF CORPORATION

SEC. 7. (a) The Corporation is authorized to make loans to associations, subject to the conditions and limitations set forth in this Act and in accordance with such terms and conditions and upon such security as may be prescribed by the board of the Corporation for the purpose of enabling associations, as defined in section 14 (a) hereof-

(1) To exercise the powers and functions authorized by an Act of Congress approved June 25, 1934 (Public, Numbered 464, Seventy-third Congress) ;

(2) To purchase fishery and marine supplies and equipment;

(3) To make loans and advances to members as producers of aquatic products;

(4) To conduct fishery business services; and

(5) To construct or acquire by purchase or lease physical facilities or refinance the cost of such construction or acquisition.

(b) The Corporation shall have power not inconsistent with this Act, to discount for or purchase from any association, with its endorsement, any note, draft, bill of exchange, or other such obligation, and to make loans or advances direct to any association secured by such obligations. The amount of paper discounted for or loan made to an association by the Corporation, or reloaned by an association to a producer-member thereof, shall be determined by rules and regulations established by the board of the Corporation.

(c) No loan shall be made unless, in the judgment of the board, the loan is in furtherance of the policy declared in section 1 and the association applying for the loan has an organization and management and business policies of such character as to insure the reasonable safety of the loan and the furtherance of such policy.

(d) Loans for the construction or acquisition by purchase or lease of physical facilities, or for refinancing the cost of such construction or acquisition, shall be subject to the following conditions :

(1) No loans shall be made in an amount in excess of 60 per centum of the appraised value of the security therefor;

(2) No loan for the purchase or lease of such facilities shall be made unless the board finds that the purchase price or rent to be paid is reasonable; and

(3) No loan for the construction, purchase, or lease of such facilities shall be made unless the board finds that there are not available suitable existing facilities that will furnish their services to the association at reasonable rates; and, in addition to the preceding limitation, no loan for the construction of facilities shall be made unless the board finds that suitable existing facilties are not available for purchase or lease at a reasonable price or rent.

(e) Loans for the construction or purchase of physical facilities, together with interest on the loans, may be repaid upon an amortization plan over a period not in excess of twenty years.

RATE OF ISTEBEST AND DISCOUNT Sex 8. The Corporation may from time to time establish rates of interest and discount which, except with the approral of the Secretary, shall not exceed by more than 1 per centum the prevailing rate of interest or discount charged by the Federal Intermediate Credit Bank of Baltimore, but in no event shall the rate of interest or discount charged by the Corporation exceed the rate of 6 per centum per annum.

• MISCELLANEOUS LOAX PROVISIONS

SEC. 9. (a) Associations borrowing from the Corporation shall be required to own, at the time the loan is made, an amount of stock of the Corporation equal in fair book value (not to exceed par), as determined by the Corporation, to $100 per $2,000 or fraction thereof of the amount of the loan. Upon discharge of the loan the stock held by the borrowing association shall be retired and canceled and the association shall be paid therefor, or in case the stock subscription is included in the amount of the loan there shall be credited on the final payment of the loan, an amount equal to the amount paid for the stock or loaned to subscribe for the stock, as the case may be, minus the pro-rata impairment, if any, of capital and guaranty fund of the Corporation, as determined by the chairman of the board of the Corporation.

(b) In any case in which an association applying for a loan is not authorized, under the law of the State in which it is organized, to subscribe for stock in the Corporation, the Corporation shall, in lieu of stock subscription, require the borrowing association to pay into a guaranty fund, or the Corporation may retain out of the amount of the loan and credit to the guaranty fund, an amount equal to the amount which the borrowing association would hare been required to own in stock if such association had been authorized to hold such stock. (pon discharge of its loan, the provisions of the last sentence of subsection (a) of this section shall apply with respect to sums of such association in the guaranty fund in the same mamer as if such sums were represented by stock.

(e) The Corporation is authorized to borror from and rediscount paper with Federal Intermediate Credit Banks subject to the prorisions of this Act and the provisions of the Federal Farm Loan Act as amended.

(d) At least once each year and at such other times as the Corporation deems necessary, each association indebted to the Corporation shall be examined by examiners designated by the Corporation. The Corporation shall assess the costs of such examinations against the association which shall pay such costs to the corporation. The amount so assessed and impaid shall be a prior lien on all the assets of the association examined ercept on assets pledged to secure loans. Each such association shall make reports and furnish information to the Corporation at such times and in such forms as may be prescribed by the Corporation.

EARNINGS AND RESERVES OF CORPORATION SEC. 10. The Corporation shall, at the end of its fiscal year, apply the amount of its earnings in excess of operating expenses during such fiscal rear, first, to making up any losses incurred; second, to the restoration of the amount of the impairment, if any, of capital and guaranty fund as determined by the chairman of the board; and at least 25 per centum of the remainder of snch excess of earnings shall be applied to the ereation and maintenance of a surplus equal to at least 25 per centum of the amount of the capital and guaranty fund. Any sums remaining muy, with the approval of the chairman of the board, be devoted to the payment of dividends. Subscribers to the guaranty