12 U. S. C., § 854 F. F. L. Act, § 19 Mortgages eligible as collateral.-No mortgage shall be accepted by a farm loan registrar from a land bank as part of an offering to securing* farm loan bonds, either originally or by substitution, except first mortgages made subject to the conditions prescribed in sections 672, 673-677a, 711-723, 771, 772, 801-808, and 811-824 of this title: Provided, That such registrar, when authorized and directed to do so by the Farm Credit Administration, shall accept or retain in his custody as collateral, if otherwise eligible under the provisions of such sections, any first mortgage in connection with which the land bank depositing the same has agreed to defer for a period of not more than ten years the collection of the principal portion of maturing installments and to accept payment of the aggregate amount of such principal on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover the interest payable thereon and in addition thereto such amounts to be applied on the principal after the expiration of the period of deferment as will extinguish the debt within an agreed period of not more than forty years from the date of such agreement. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 4, 1933, c. 270, § 6 (a), 47 Stat. 1549; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 855 F. F. L. Act, § 19 Registrar's duty respecting amount of collateral; United States bonds or cash in lieu of mortgages withdrawn. It shall be the duty of each farm loan registrar to see that the farm loan bonds delivered by him and outstanding do not exceed the amount of collateral security pledged therefor. Such registrar may, in his discretion, temporarily accept, in place of mortgages withdrawn, United States Government bonds or cash. (July 17, 1916, c. 245, § 19, 39 Stat. 376.) 12 U. S. C., § 856 Additional security. F. F. L. Act, § 19 The Farm Credit Administration may, at any time, call upon any land bank for additional security to protect the bonds issued by it. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 857 F. F. L. Act, § 19 Acceptable collateral security.-Notwithstanding any other provisions of this subchapter to the contrary, on and after July 1, 1945, subject to the approval of the Farm Credit Administration, any Federal land bank may deposit with the farm-loan registrar of the district, and it shall be the duty of said registrar to accept, as collateral security for farm loan bonds, either originally or by substitution, (a) United States Government obligations direct or fully guaranteed, and (b) notes secured by mortgages or purchase money mortgages on farms, or contracts for the sale of farms; provided any such mortgage, purchase money mortgage, or contract constitutes a first lien on the farm, or its equivalent from a security standpoint as determined by the Farm Credit Administration, and the unpaid balance thereof at the time of acceptance is not in excess of 65 per centum of *So in original. the normal value of the farm, as determined upon appraisal made pursuant to this subchapter. (July 17, 1916, c. 245, § 19, 39 Stat. 376; Mar. 4, 1933, c. 270, § 6 (b), 47 Stat. 1549; June 30, 1945, c. 204, § 8, 59 Stat. 268.) FORM OF FARM LOAN BONDS 12 U. S. C., § 861 F. F. L. Act, § 20 Amount, denomination, and terms; maturity date; interest rates.-Bonds provided for in this subchapter shall be issued in such amounts, denominations, and bear such terms as the Farm Credit Administration may authorize; they shall have a specified maturity, but may, in addition, when stated in the bonds, be redeemable, at the option of the land bank, at an earlier specified date or dates. They shall bear a rate of interest not to exceed 52 per centum per annum, but no bonds issued or sold after June 30, 1923, shall bear a rate of interest to exceed 5 per centum per annum. (July 17, 1916, c. 245, § 20, 39 Stat. 377; Apr. 20, 1920, c. 154, § 5, 41 Stat. 571; Mar. 4, 1921, c. 151, 41 Stat. 1362; Aug. 13, 1921, c. 63, 42 Stat. 159; Mar. 27, 1933, Ex. Or. 6084, June 30, 1945, c. 204, § 9, 59 Stat. 268.) 12 U. S. C., § 862 F. F. L. Act, § 20 Rules and regulations as to payment.-The Farm Credit Administration shall prescribe rules and regulations concerning the circumstances and manner in which farm loan bonds shall be paid and retired under the provisions of this chapter. (July 17, 1916, c. 245, § 20, 39 Stat. 377; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 863 F. F. L. Act, § 20 Delivery to bank.-Farm loan bonds shall be delivered through the registrar of the district to the bank applying for the same. (July 17, 1916, c. 245, § 20, 39 Stat. 377.) 12 U. S. C., § 864 F. F. L. Act, § 20 Preparation; custody of plates and dies; exchange for registered bonds; reexchange for coupons.-In order to furnish farm loan bonds for delivery at the Federal land banks and joint stock land banks, the Secretary of the Treasury is authorized to prepare suitable bonds in such form, subject to the provisions of this chapter, as the Farm Credit Administration may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the Farm Credit Administration. The engraved plates, dies, bed-pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. Any expenses incurred in the preparation, custody, and delivery of such farm loan bonds shall be paid by the Secretary of the Treasury from any funds in the Treasury not otherwise appropriated: Provided, however, That the Secretary shall be reimbursed for such expenditures by the Farm Credit Administration through assessment upon the farm land banks in proportion to the work executed. They may be exchanged into registered bonds of any amount, and reexchanged into coupon bonds, at the option of the holder, under rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, c. 245, § 20, 39 Stat. 377; Mar. 27, 1933, Ex. Or. 6084.) Effective July 1, 1935, the permanent appropriation provided for in this section was repealed by Act June 26, 1934, c. 756, § 1, 48 Stat. 1224. See section 725 (b) of Title 31, U. S. Code. SPECIAL PROVISIONS OF FARM LOAN BONDS 12 U. S. C., § 871 F. F. L. Act, § 21 Land banks as bound by acts of officers and Farm Credit Administration in issue of bonds.-Each land bank shall be bound in all respects by the acts of its officers in signing and issuing farm loan bonds and by the acts of the Farm Credit Administration in authorizing their issue. (July 17, 1916, c. 245, § 21, 39 Stat 377; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 872 F. F. L. Act, § 21 Liability of each Federal land bank for bonds issued by it and by other Federal land banks.-Every Federal land bank issuing farm loan bonds shall be primarily liable therefor, and shall also be liable, upon presentation of farm loan bond coupons, for interest payments due upon any farm loan bonds issued by other Federal land banks and remaining unpaid in consequence of the default of such other land banks; and every such bank shall likewise be liable for such portion of the principal of farm loan bonds so issued as shall not be paid after the assets of any such other land banks shall have been liquidated and distributed: Provided, That such losses, if any, either of interest or of principal, shall be assessed by the Farm Credit Administration against solvent land banks liable therefor in proportion to the amount of farm loan bonds which each may have outstanding at the time of such assessment. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 873 F. F. L. Act, § 21 Federal land banks; action of directors respecting bond liability. Every Federal land bank shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on farm loan bonds as provided in sections 871-886 of this title. (July 17, 1916, c. 245, § 21, 39 Stat. 377.) 12 U. S. C., § 874 F. F. L. Act, § 21 Signing and attesting bonds; certificate of Land Bank Commissioner.-Every farm loan bond issued by a Federal land bank shall be signed by its president or vice president and attested by its secretary or assistant secretary. For the purpose of signing such bonds the board of directors of any Federal land bank is authorized to select a vice president who need not be a member of the board of directors; such bonds shall also contain in the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of the Federal Farm Loan Act, has the approval in form and issue of the Farm Credit Administration, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security prescribed by the Federal Farm Loan Act, as amended, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Apr. 20, 1920, c. 154, § 6, 41 Stat. 571; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, §§ 75 (b), 80 (a), 48 Stat. 271, 273, June 30, 1945, c. 204, § 10 (a), 59 Stat. 268.) See note to § 931. 12 U. S. C., § 875 F. F. L. Act, § 21 Consolidated bonds; authority of Federal land banks to issue and sell. Whenever it shall appear desirable to issue consolidated bonds of the twelve Federal land banks and to sell them through a common selling agency, and the Federal land banks shall, by resolution, consent to the same, the banks may issue and sell said bonds as hereinafter provided. (July 17, 1916, 245, §21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) 12 U.S. C., § 876 F. F. L. Act, § 21 Same; signature and attestation; joint and several obligations; recitals. Every bond so issued shall be signed by the Land Bank Commissioner and attested by any deputy land bank commissioner, and their signatures may be either written or engraved thereon and shall recite in the face of the bond the fact that it is the joint and several obligation of the twelve Federal land banks, and shall in all respects be governed by the provisions of the Federal Farm Loan Act not inconsistent herewith. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.) 12 U.S. C., § 877 F. F. L. Act, § 21 Same; where payable.-The consolidated bonds issued under sections 874-886 of this title shall be made payable at any Federal land bank, and may be made payable at any Federal reserve bank or banks designated in the face of the bond. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) 12 U. S. C., § 878 F. F. L. Act, § 21 Same; act of Commissioner binding on banks.-Each Federal land bank on whose behalf consolidated bonds shall be issued under sections 874-886 of this title shall in all respects be bound by the act of the Land Bank Commissioner and any deputy land bank commissioner. (July 17, 1916, 245 § 21, 39, Stat. 377; Mar. 4, 1923, c. 252, $308, 42 Stat. 1476; Mar. 4, 1925, c. 524, § 6, 43 Stat. 1264; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.) 12 U. S. C., § 879 F. F. L. Act, § 21 Same; action of directors respecting bond liability.-Every Federal land bank, before participation in a consolidated issue, as herein provided, shall by appropriate action of its board of directors, duly recorded in its minutes, obligate itself to become liable on Federal farm loan bonds as provided in sections 871-886 of this title and be bound by the action of the Land Bank Commissioner and any deputy land bank commissioner in executing the same. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; June 16, 1933, c. 98, §§ 80 (a), 81, 48 Stat. 273.) 12 U. S. C., § 880 F. F. L. Act, § 21 Certificate of Land Bank Commissioner.-Every farm loan bond issued hereunder shall, contain on the face thereof a certificate signed by the Land Bank Commissioner to the effect that it is issued under the authority of Title I of the Federal Farm Loan Act, has the approval in form and issue of the Farm Credit Administration, and is legal and regular in all respects; that it is not taxable by National, State, municipal, or local authority; that it is issued against collateral security prescribed by the Federal Farm Loan Act, as amended, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond. (July 17, 1916, c. 245, $21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 27, 1933, Ex. Or. 6084; June 16, 1933, c. 98, §§ 75 (b), 80 (a), 48 Stat. 271, 273; June 30, 1945, c. 204, § 10 (b), 59 Stat. 269.) See note to § 931. 12 U. S. C., § 881 F. F. L. Act, § 21 Farm loan bonds, special provisions of; consolidated bonds; participation of Federal land bank in issue; collateral.— (a) Approval of issue requisite; collateral to be held separate from collective security for individual bonds; payments on pledged mortgages as trust funds. When any Federal land bank shall desire to participate in a consolidated issue of farm loan bonds it shall make application to the Farm Credit Administration for the approval on its behalf of such issue and tender to the registrar approved farm mortgages, or obligations of the United States Government, as security therefor, and no banks shall participate in such consolidated issue until such application has been approved by the Farm Credit Administration. Such approved farm mortgages or obligations of the United States Government shall be held by each farm loan registrar as collateral security for consolidated bonds, separate and apart from the mortgages and/or Government bonds held by him as collective security for the bonds previously issued or assumed individually by the Federal land bank of his district. Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of consolidated farm loan bonds shall constitute a trust fund in the hands of the Federal land bank receiving the same and shall be applied or employed in the manner provided in sections 891-899 of this title with respect to payments on principal of first mortgages held as collateral for farm loan bonds of individual banks. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 4, 1933, c. 270, $7,47 Stat. 1550; Mar. 27, 1933, Ex. Or. 6084.) (b) Notice to registrar of disposition of payments on mortgages held as collateral; maintenance of collateral by banks.Every Federal land bank shall notify the farm loan registrar of the disposition of all payments made on the principal of mortgages held |