Sec.

2.1 Organization.

2.2 Functions and procedures.

AUTHORITY: §§ 2.1 and 2.2 issued under sec. 40, 48 Stat. 51; 12 U.S.C. 636.

SOURCE: §§ 2.1 and 2.2 contained in Regulations, Acting Governor, Aug. 28, 1946, effective Sept. 11, 1946, 11 F.R. 177A-244.

§ 2.1 Organization. All functions and activities of the Farm Credit Administration are conducted under the general supervision of the Secretary of Agriculture. The work of the Farm Credit Administration is directed by the Governor of the Farm Credit Administration, assisted by the Deputy Governors, and is performed by the four Commissioners named in sec. 80, 48 Stat. 273; 12 U.S.C. 638, and the several divisions of the Farm Credit Administration as follows:

(a) The Land Bank Commissioner, assisted by the personnel of the Land Bank Division, regulates and supervises the twelve Federal land banks, the national farm loan associations, and the joint stock land banks under 39 Stat. 360, as amended; 12 U.S.C., Chap. 7, Subchap. I; and regulates and supervises the Federal Farm Mortgage Corporation in the discharge of its functions as disposal agency for surplus agricultural and forest real property under the Surplus

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Property Act of 1944 (58 Stat. 765, as amended; 50 U.S.C. App., Sup., 1611– 1646).

(b) The Intermediate Credit Commissioner, assisted by the personnel of the Intermediate Credit Division, regulates and supervises the twelve Federal intermediate credit banks under 42 Stat. 1454, as amended; 12 U.S.C. Chap. 7, Subchap. III.

(c) The Production Credit Commissioner, assisted by the personnel of the Production Credit Division, regulates and supervises the twelve production credit corporations and the production credit associations under 48 Stat. 257, as amended; 48 Stat. 266, as amended; 12 U.S.C. Chap. 7, Subchaps. IV and VI.

(d) The Cooperative Bank Commissioner, assisted by the personnel of the Cooperative Division, regulates and supervises the twelve district banks for cooperatives and the Central Bank for Cooperatives under 48 Stat. 257, as amended; 48 Stat. 266, as amended; 12 U.S.C. Chap. 7, Subchaps. V and VI. The Cooperative Bank Commissioner is ex officio the chairman of the board of directors of the Central Bank for Cooperatives and that Bank has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration.

(e) The Mortgage Corporation Service Division, headed by the Director of that Division who is also the Executive Vice President of the Federal Farm Mortgage

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Corporation, performs various functions for that Corporation which conducts its affairs under 48 Stat. 48, as amended; 48 Stat. 344, as amended; 12 U.S.C. and Sup., Chap. 7, Subchaps. II and II A. The Governor and the Land Bank Commissioner, together with the Secretary of the Treasury or an officer of the Treasury designated by him, are ex officio the directors of the Federal Farm Mortgage Corporation, and that Corporation has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration. The Land Bank Commissioner makes loans on behalf of the Federal Farm Mortgage Corporation under 48 Stat. 48, as amended; 12 U.S.C. and Sup., Chap. 7, Subchap. II.

(f) The Regional Agricultural Credit Division, headed by the Director of that Division, regulates and supervises the Regional Agricultural Credit Corporation of Washington, D. C., under 47 Stat. 713, as amended; 12 U.S.C., Chap. 7, Subchap. VIII. The Regional Agricultural Credit Corporation of Washington, D. C., has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration.

(g) The Revolving Fund Section, headed by the Director of the Revolving Fund, conducts the liquidation of loans made to cooperative associations out of the Revolving Fund created by the Agricultural Marketing Act (46 Stat. 11, as amended; 12 U.S.C. 1141-1141j), and the liquidation of loans made to individuals to capitalize local agricultural credit corporations under 46 Stat. 1032, as amended by 46 Stat. 1160, and 47 Stat. 60, as amended; 12 U.S.C. 1401-1404.

(h) The Cooperative Research and Service Division, headed by the Director of that Division, gathers and disseminates information pertaining to cooperatives and promotes the organization and development of cooperative associations, under the Cooperative Marketing Act (44 Stat. 802; 7 U.S.C. 451-457) and the Agricultural Marketing Act (46 Stat. 11, as amended; 12 U.S.C. 1141-1141j).

(i) The Examination Division, headed by the Chief Examiner, conducts examinations of the various institutions supervised by the Farm Credit Administration.

In addition, there are five other staff divisions in the Farm Credit Administration which perform, for the Administration as a whole, the services denoted by their titles as follows: Finance and Accounts; Administrative; Personnel; Information and Extension; and Economic and Credit Research.

Prior to the enactment of the Farmers' Home Administration Act of 1946 (60 Stat. 1062), the Farm Credit Administration, through the Emergency Crop and Feed Loan Division, made and collected emergency crop, feed, drought, and rehabilitation loans under an Act of Congress approved January 29, 1937 (50 Stat. 5) and a number of earlier statutes and Executive orders. The Farmers' Home Administration Act of 1946 abolished these functions of the Farm Credit Administration and vested in the Farmers' Home Administration the function of collecting such loans.

§ 2.2 Functions and procedures—(a) Supervision of institutions in farm credit districts. The Farm Credit Administration regulates and supervises the Federal Land banks and national farm loan associations, the Federal intermediate credit banks, the production credit corporations and production credit associations, and the district banks for cooperatives, through the respective Commissioners under the general direction of the Governor. Such regulation and supervision is exercised in the various respects' and by the methods stated in the respective statutes enumerated above in § 2.1 (a) (d). The Farm Credit Administration also conducts examinations of these institutions. The substantive rules and regulations promulgated by the Farm Credit Administration with respect to these institutions are contained in Subchapters B, D, E, and F of this chapter.

(b) Functions with respect to the Federal Farm Mortgage Corporation. The Governor of the Farm Credit Administration and the Land Bank Commissioner, together with the Secretary of the Treasury or an officer of the Treasury designated by him, are ex officio the directors of the Federal Farm Mortgage Corporation and as such they direct its affairs. The loans of the Federal Farm Mortgage Corporation are made on its behalf by the Land Bank Commissioner. The Farm Credit Administration conducts examinations of the Federal Farm Mortgage Corporation.

The functions of the Department of Agriculture as disposal agency for surplus agricultural and forest real property under the Surplus Property Act of 1944 (58 Stat. 765, 50 U.S.C. App. Sup., 1611-1646), have been delegated by the Secretary of Agriculture to the Governor of the Farm Credit Administration, and redelegated by the Governor to the Federal Farm Mortgage Corporation, which utilizes the facilities of the Federal land banks in performing these functions. The Farm Credit Administration regulates and supervises the execution of these functions. The regulations issued by the Farm Credit Administration, with the approval of the Secretary of Agriculture, are contained in Part 5 of this subchapter.

(c) Functions with respect to the Central Bank for Cooperatives. The Cooperative Bank Commissioner is ex officio chairman of the board of directors of the Central Bank for Cooperatives, and the other six directors are appointed by the Governor of the Farm Credit Administration. The Cooperative Bank Commissioner is also the chief executive officer of the Central Bank. The Commissioner, as chairman of the board, and the Governor prescribe rules and regulations governing the activities of the Central Bank and these rules and regulations are contained in Subchapter F of this chapter. The Farm Credit Administration conducts examinations of the Central Bank and supervises it in other respects and by the methods stated in 48 Stat. 257, 266, as amended; 12 U.S.C., Chap. 7, Subchaps. V and VI.

(d) Functions with respect to the Regional Agricultural Credit Corporation of Washington, D. C. The Farm Credit Administration prescribes the charter provisions and bylaws of the Regional Agricultural Credit Corporation of Washington, D. C., appoints its directors and officers, prescribes rules and regulations governing its activities, and conducts examinations of its affairs. The rules and regulations governing the Corporation are contained in Subchapter G of this chapter.

12 U.S.C. 1141-1141j). Since loans to cooperative associations for the purposes specified in the Agricultural Marketing Act are now available from the banks for cooperatives, loans under that Act are not ordinarily made by the Farm Credit Administration out of the Revolving Fund, except in furtherance of the liquidation of outstanding loans. The requirements for such loans and the terms and conditions thereof are stated in the Agricultural Marketing Act.

The Farm Credit Administration, through the Revolving Fund Section, also conducts the liquidation of loans made to individuals by the Secretary of Agriculture to capitalize local agricultural credit corporations under 46 Stat. 1032, as amended by 46 Stat. 1160, and 47 Stat. 60, as amended; 12 U.S.C. 14011404. No loans under these statutes are now being made.

A cooperative association desiring to apply for a loan from the Revolving Fund should submit an application on a prescribed form to the Director of the Revolving Fund, together with evidence of the association's eligibility under the Act, and of the authority of its officers to execute the loan documents, and statements of its financial condition. Forms for making application for loans may be obtained from the Director of the Revolving Fund upon request.

Real and personal properties acquired by the United States as a result of loans made from the Revolving Fund are leased and sold in accordance with the provisions of 46 Stat. 13, as amended; 12 U.S.C. 1141b (7). Ordinarily, these properties are advertised and sold on the basis of sealed bids, reserving the right to reject any and all bids. Each bidder is notified of the acceptance or rejection of his bid.

Certain indebtedness of farmers being liquidated by the Farm Credit Administration through the Revolving Fund Section may be compromised, adjusted, or canceled, in appropriate cases, in accordance with 58 Stat. 836; 12 U.S.C., Sup., 1150-1150c and the regulations contained in Part 01 of Subtitle A of this title. Applications of debtors for compromise, adjustment, or cancelation of their debts should be submitted on prescribed forms which may be obtained from the Director of the Revolving Fund upon request.

(f) Cooperative Research and Service Division. The Farm Credit Administra