as collateral security for the issue of consolidated farm loan bonds, and said registrar is authorized, at his discretion to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. Each bank shall maintain with the farm loan registrar of its district collateral security for the issue of consolidated farm loan bonds in an amount at least equal to the face amount of such bonds issued on its behalf. (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.) (c) Withdrawal of collateral on surrender of bonds.-When any Federal land bank shall surrender to the farm loan registrar of its district any consolidated Federal farm loan bonds, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds previously pledged as collateral in connection with any issue of consolidated farm loan bonds to an amount equal to the consolidated farm loan bonds so surrendered and it shall be the duty of such registrar to permit and direct the delivery of such mortgages and bonds to such land bank. (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.) (d) Additional collateral; payment of bonds and coupons.The Farm Credit Administration may at any time call upon any Federal land bank for additional security to protect the consolidated bonds issued under the provisions of sections 874-886 of this title. Each bank shall pay when due, without notice, all bonds and coupons issued on its behalf hereunder. (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.) (e) Power of Federal land bank to exchange consolidated bonds for individual bonds.-Every Federal land bank shall have power to exchange consolidated farm loan bonds for farm loan bonds previously issued or assumed by it individually, with the approval of and under rules and regulations promulgated by the Farm Credit Administration. (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.) 12 U. S. C., § 882 F. F. L. Act, § 21 Consolidated bonds; failure of participating bank to pay interest or principal; liability of other banks.-If any Federal land bank shall fail to pay its proportion of interest or principal as prescribed in section 881 (d) of this title, the Farm Credit Administration shall immediately call upon the other Federal land banks for the amount necessary to make said payment, the assessments to be made in proportion to the capital stock of each, which assessments shall be forthwith paid by said banks. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Mar. 27, 1933, Ex. Or. 6084.) 12 U. S. C., § 883 F. F. L. Act, § 21 Bond committee and subcommittee.-The presidents of the twelve Federal land banks shall constitute the bond committee of the Federal land banks and shall select a chairman from among their number. The vice president may act in place of the president on the president's request or in case he fails to act.. The bond committee may appoint from among their number a subcommittee consisting of three members, to hold office for a period of one year or until their successors have been appointed, may from among their number fill any vacancies on the subcommittee and may dismiss at pleasure the members of the subcommittee or any of them. The subcommittee, if appointed, shall have such authority to exercise the powers and to perform the functions of the bond committee as the bond committee may authorize and shall be subject to all provisions of law relating to the duties and expenses of the bond committee. The committee shall select one of the members of the subcommittee to be chairman and one of the members of the subcommittee to be secretary of the subcommittee. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476; Aug. 19, 1937, c. 704, § 18, 50 Stat. 709.) 12 U.S. C., § 884 F. F. L. Act, § 21 Consolidated bonds; duties of bond committee.-When an issue of consolidated bonds is contemplated, the bond committee shall determine the amount of such issue, the rate of interest which it is to bear, and the participation of the several banks therein, and submit their recommendations to the Farm Credit Administration for approval. When approved by the Farm Credit Administration the bonds shall be executed by the Land Bank Commissioner and any deputy land bank commissioner, as provided in sections 871-886 of this title. (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, §§ 80 (a), 81, 48 Stat. 273.) 12 U. S. C., § 885 F. F. L. Act, § 21 Same; expenses.-The expenses of the bond committee and of the sale of bonds shall be charged against the several land banks in proportion to their participation in the proceeds. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) 12 U. S. C., § 886 F. F. L. Act, § 21 Compensation of members of bond committee. The presidents of the Federal land banks shall receive no additional compensation for their services as members of the bond committee, but shall be paid necessary traveling expenses. (July 17, 1916, c. 245, § 21, 39 Stat. 377; Mar. 4, 1923, c. 252, § 308, 42 Stat. 1476.) APPLICATION OF AMORTIZATION AND INTEREST PAYMENTS 12 U. S. C., § 891 F. F. L. Act, § 22 Payments upon mortgages pledged as collateral for bond issue; notice to registrar; cancellation of mortgage and discharge of lien upon full payment.-Whenever any Federal land bank, or joint stock land bank, shall receive any interest, amortization, or other payments upon any first mortgage or bond pledged as collateral se curity for the issue of farm loan bonds, it shall forthwith notify the farm loan registrar of the items so received. Said registrar shall forthwith cause such payment to be duly credited upon the mortgage entitled to such credit. Whenever any such mortgage is paid in full, said registrar shall cause the same to be canceled and delivered to the proper land bank, which shall promptly satisfy and discharge the lien of record and transmit such canceled mortgage to the original maker thereof, or his heirs, administrators, executors, or assigns, (July 17, 1916, c. 245, § 22, 39 Stat. 378.) 12 U. S. C., § 892 F. F. L. Act, § 22 Withdrawal of collateral and substitution of other security.Upon written application by any Federal land bank, or joint stock land bank, to the farm loan registrar, it may be permitted, in the discretion of said registrar, to withdraw any mortgages or bonds pledged as collateral security under this chapter, and to substitute therefor other similar mortgages or United States Government bonds not less in amount than the mortgages or bonds desired to be withdrawn. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) 12 U. S. C., § 893 F. F. L. Act, § 22 Place and mode of payment of bonds or interest thereon; cancellation on payment.-Whenever any farm loan bonds, or coupons or interest payments of such bonds, are due under their terms, they shall be payable at the land bank by which they were issued, in gold or lawful money, and upon payment shall be duly canceled by said bank. At the discretion of the Farm Credit Administration, payment of any farm loan bond or coupon or interest payment may, however, be authorized to be made at any Federal land bank, any joint stock land bank, or any other bank, under rules and regulations to be prescribed by the Farm Credit Administration. (July 17, 1916, c. 245, § 22, 39 Stat. 378; Mar. 27, 1933, Ex. Or. 6084.) "Farm Credit Administration" mentioned in the text was substituted for "Federal Farm Loan Board" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this chapter. 12 U. S. C., § 894 F. F. L. Act, § 22 Withdrawal of collateral security on surrender of bonds.When any land bank shall surrender to the proper farm loan registrar any farm loan bonds of any series, canceled or uncanceled, said land bank shall be entitled to withdraw first mortgages and bonds pledged as collateral security for any of said series of farm loan bonds to an amount equal to the farm loan bonds so surrendered, and it shall be the duty of said registrar to permit and direct the delivery of such mortgages and bonds to such fand bank. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) 12 U. S. C., § 895 F. F. L. Act, § 22 Interest payments on pledged mortgages.-Interest payments on hypothecated first mortgages shall be at the disposal of the land bank pledging the same, and shall be available for the payment of coupons and the interest of farm loan bonds as they become due. (July 17, 1 12 U. S. C., § 896 F. F. L. Act, § 22 Payment of bonds, coupons and interest at maturity.-Whenever any bond matures, or the interest on any registered bond is due or the coupon on any coupon bond matures, and the same shall be presented for payment as provided in this subchapter, the full face value thereof shall be paid to the holder. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) 12 U. S. C., § 897 F. F. L. Act, § 22 Same; trust fund from payments on mortgages held as collateral.-Amortization and other payments on the principal of first mortgages held by a farm loan registrar as collateral security for the issue of farm loan bonds shall constitute a trust fund in the hands of the Federal land bank or joint stock land bank receiving the same, and shall be applied or employed as follows: In the case of a Federal land bank (a) To pay off farm loan bonds issued by or in behalf of said bank as they mature. (b) To purchase at or below par Federal Farm loan bonds. 8 To loan on first mortgages on farm lands within the farm credit district, qualified under this chapter as collateral security for an issue of farm loan bonds. (d) To purchase United States Government bonds. (e) To purchase Federal Farm Mortgage Corporation bonds. (a) To pay off farm loan bonds issued by said bank as they mature. (c) To loan on first mortgages qualified under sections 811-824 of this title. (d) To purchase United States Government bonds. (e) To purchase Federal Farm Mortgage Corporation bonds. (July 17,1916, c. 245, § 22, 39 Stat. 378; Mar. 4, 1923, c. 252, § 309, 42 Stat. 1477; Jan. 31, 1934, c. 7, § 8 (b), 48 Stat. 347; Aug. 19, 1937, c. 704, §§ 5 (a), 15 (c), 50 Stat. 704, 708.) New loans by joint stock land banks prohibited after May 12, 1933, except in circumstances permitted under § 810 of this title. 12 U. S. C., § 898 F. F. L. Act, § 22 Same; deposit of trust funds with registrars as substituted collateral security. The farm loan bonds, first mortgages, United States Government bonds, or cash constituting the trust funds aforesaid, shall be forthwith deposited with the farm loan registrar as substituted collateral security in place of the sums paid on the principal of indorsed mortgages held by him in trust. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) 12 U. S. C., § 899 F. F. L. Act, § 22 Same; notice to registrar of disposition of principal payments on mortgages held as collateral; transfer to registrar on demand. Every Federal land bank, or joint stock land bank, shall notify the farm loan registrar of the disposition of all payments made on the principal of mortgages held as collateral security for an issue of farm loan bonds, and said registrar is authorized, at his discretion, to order any of such payments, or the proceeds thereof, wherever deposited or however invested, to be immediately transferred to his account as trustee aforesaid. (July 17, 1916, c. 245, § 22, 39 Stat. 378.) RESERVES AND DIVIDENDS OF LAND BANKS 12 U.S. C., § 901 F. F. L. Act, § 23 Amount carried to reserve account; making good impairment; debit to reserve account. (a) Federal land banks; amount carried to reserve; making good impairment.-Every Federal land bank shall semiannually carry to reserve account a sum not less than 50 per centum of its net earnings until said reserve account shall show a credit balance equal to the outstanding capital stock of said land bank. After said reserve is equal to the outstanding capital stock 10 per centum of the net earnings shall be added thereto semiannually. Whenever said reserve shall have been impaired it shall be fully restored before any dividends are paid. (July 17, 1916, c. 245, § 23, 39 Stat. 379; Jan. 23, 1932, c. 9, §3 (a), 47 Stat. 13.) (b) Joint stock land banks; amount carried to reserve; making good impairment.-Every joint stock land bank shall semiannually carry to reserve account 25 per centum of its net earnings until said reserve account shall show a credit balance equal to 20 per centum of the outstanding capital stock of said land bank. After said reserve has reached the sum of 20 per centum of the outstanding capital stock, 5 per centum of the net earnings shall be annually added thereto. Whenever said reserve shall have been impaired, said balance of 20 per centum shall be fully restored before any dividends are paid. (July 17, 1916, c. 245, § 23, 39 Stat. 379.) (c) Debit to reserve account.-For the period of two years from the date when any default occurs in the payment to any land bank of the interest, amortization installments, or principal on any first mortgage, by both mortgagor and indorser, the amount so defaulted shall be carried to a suspense account, and at the end of the two-year period specified, unless collected, shall be debited to reserve account. (July 17, 1916, c. 245, § 23, 39 Stat. 379.) 12 U. S. C., § 902 F. F. L. Act, § 23 Dividends on balance of net earnings; investment of reserves.(a) Federal land bank dividends.-After deducting the 50 per centum or the 10 per centum directed to be deducted for credit to reserve account by section 901 of this title, any Federal land bank may declare a dividend or dividends to shareholders of the whole or any part of the balance of its net earnings, but only with the approval of the Farm Credit Administration. (July 17, 1916, c. 245, § 23, 39 Stat. 379; Jan. 23, 1932, c. 9, § 3 (a), 47 Stat. 13; Mar. 27, 1933, Ex. Or. 6084.) (b) Joint stock land bank dividends.-After deducting the 25 per centum or the 5 per centum directed to be deducted for credit to reserve account by section 901 of this title, any joint stock land bank may |