SUBCHAPTER VIII.-REGIONAL AGRICULTURAL CREDIT

CORPORATIONS

HISTORICAL NOTE

The Executive Order of March 27, 1933, set forth at the beginning of this chapter under "Introductory," transferred to the jurisdiction and control of the Farm Credit Administration the functions defined in section 5 (e) of the Order, as follows: "The functions of the Reconstruction Finance Corporation and its Board of Directors relating to the appointment of officers and agents to manage regional agricultural credit corporations formed under section 201 (e) of the Emergency Relief and Construction Act of 1932; relating to the establishment of rules and regulations for such management; and relating to the approval of loans and advances made by such corporations and of the terms and conditions thereof." The section of the Emergency Relief and Construction Act of July 21, 1932, to which reference is made in the above quoted paragraph of the Executive Order, is contained in section 605 (e) of Title 15, U. S. Code, and is also incorporated in this subchapter.

The Regional Agricultural Credit Corporation of Washington, D. C., the last remaining regional agricultural credit corporation, was abolished and its functions transferred to the Secretary of Agriculture by Public Law No. 38, 81st Congress, approved April 6, 1949.

12 U. S. C., § 1148

Regional agricultural credit corporations; creation; capital; management; loans; rediscounts; supervision.-The Farm Credit Administration is authorized to create in any of the twelve farm credit districts where it may deem the same to be desirable a regional agricultural credit corporation with a paid-up capital of not less than $3,000,000, to be subscribed for by the Farm Credit Administration and paid for out of the unexpended balance of the amounts allocated and made available to the Secretary of Agriculture under section 602 of Title 15. Such corporations shall be managed by officers and agents to be appointed by the Farm Credit Administration under such rules and regulations as it may prescribe. Such corporations are hereby authorized and empowered to make loans or advances to farmers and stockmen, the proceeds of which are to be used for an agricultural purpose (including crop production), or for the raising, breeding, fattening, or marketing of livestock, to charge such rates of interest or discount thereon as in their judgment are fair and equitable, subject to the approval of the Farm Credit Administration, and to rediscount with the Farm Credit Administration and the various Federal reserve banks and Federal intermediate credit banks any paper that they acquire which is eligible for such purpose. All expenses incurred in connection with the operation of such corporations shall be supervised and paid by the Farm Credit Administration under such rules and regulations as its board of directors may prescribe. (July) 21, 1932, c. 520, § 201, (e), 47 Stat. 713; Mar. 27, 1933, Ex. Or. 6084; Aug. 19, 1937, c. 704, § 5 (a), 50 Stat. 704; June 30, 1947, c. 166, title II, sec. 206, 61 Stat. 202.)

"Farm Credit Administration" mentioned in the text was substituted for "Reconstruction Finance Corporation" pursuant to the Executive Order cited thereto, which is set out in full at the beginning of this circular.

Pursuant to the Act of Feb. 24, 1938, 52 Stat. 79, the Act of March 8, 1938, 52 Stat. 107, and Executive Order No. 7848, dated March 22, 1938, the capital of the regional agricultural credit corporations is held by the Secretary of the Treasury, for and on behalf of the United States.

Act June 30, 1948, 62 Stat. 1192, authorized Regional Agricultural Credit Corporation of Washington, D. C., to make loans to fur farmers.

For restrictions on regional agricultural credit corporation loans, see Department of Agriculture appropriation acts, fiscal years 1944 et seq.

Financial control of corporations, see Chap. 14, Title 31, Money and Finance.

12 U. S. C., § 1148a

Reduction of capital stock of regional agricultural credit corporation; revolving fund from stock proceeds.-The Farm Credit Administration is authorized, with the approval of the Governor of the Farm Credit Administration, to reduce the capital of any Regional Agricultural Credit Corporation by such action as may be suitable for the purpose. The funds made available by any such reduction shall constitute a revolving fund, all or any part of which shall be available for use from time to time by the Farm Credit Administration for the purpose of increasing, with the approval of the Governor of the Farm Credit Administration, the capital of any Regional Agricultural Credit Corporation. (June 16, 1933, c. 98, § 84, 48 Stat. 273; June 30, 1947, c. 166, title II, § 206, 61 Stat. 202.)

12 U.S. C., § 1148b

Additional powers of regional agricultural credit corporations. Each regional agricultural credit corporation, created under the authority of section 1148 of this title [201 (e) of the Emergency Relief and Construction Act of 1932] in addition to the powers granted prior to Aug. 19, 1937, shall have and, upon order or approval of the Farm Credit Administration, shall exercise the following rights, powers, and authority:

(a) Places of transacting business.-To conduct, transact, and operate its business in any State in the continental United States, in the District of Columbia, and in Puerto Rico.

(b) Borrow money. To borrow money (other than by way of discount) from any other regional agricultural credit corporation, or any Federal intermediate credit bank, and to give security therefor.

(c) Loans. To lend any of its available funds to any other regional agricultural credit corporation at such rates of interest and upon such terms and conditions as may be approved by the Farm Credit Administration.

(d) Sale to or purchase from other like corporations. To sell to or purchase from any other regional agricultural credit corporation or any corporation formed by consolidation or merger as provided in section 1148c of this title, any part of or all the assets of any such corporation, upon such terms and conditions as may be approved by the Farm Credit Administration, including the assumption of the liabilities of any such corporation, in whole or in part. (Aug. 19, 1937, c. 704, § 32, 50 Stat. 716; June 30, 1947, c. 166, title II, § 206 (s), 61 Stat. 209.)

12 U. S. C., § 1148c

Consolidation or merger-(a) Power of Farm Credit Administration. The Farm Credit Administration shall have the power and authority to order and effect the consolidation or merger of two or more regional agricultural credit corporations, on such terms and conditions as it shall direct.

(b) Status of corporations formed by consolidation.-The Farm Credit Administration is authorized to grant charters to, prescribe bylaws for, and fix the capital of, regional agricultural credit cor

porations which may be formed by the consolidation of two or more regional agricultural credit corporations, and to approve or prescribe such amendments to the charter and bylaws of any regional agricultural credit corporation as it may from time to time deem necessary. Corporations formed by the consolidation of two or more regional agricultural credit corporations, as herein provided, shall have all the rights, powers, authority, and exemptions and shall be subject to the same supervision and control as provided by law in respect to regional agricultural credit corporations organized under section 1148 of this title. (Aug. 19, 1937, c. 704, § 33, 50 Stat. 717; June 30, 1947, c. 166, title II, § 206 (s), 61 Stat. 209.)

The United States Code omits the last sentence of this section.

Capital of regional agricultural corporations formed by consolidation held by Secretary of the Treasury, see note to § 1148.

12 U. S. C., § 1148d

Rights and powers unaffected by sections 1148b and 1148c.Nothing contained in sections 1148b and 1148c of this title shall be construed as limiting the rights, powers, and authority granted prior to August 19, 1937, to the regional agricultural credit corporations, the Farm Credit Administration, or the Governor thereof by any Acts. of Congress or Executive orders. (Aug. 19, 1937, c. 704, § 34, 50 Stat. 717.)

Title 7.-Agriculture

CHAPTER 18.-COOPERATIVE MARKETING ACT 7 U.S. C., § 451

Agricultural products defined. When used in this chapter the term "agricultural products" means agricultural, horticultural, viticultural, and dairy products, livestock and the products thereof, the products of poultry and bee raising, the edible products of forestry, and any and all products raised or produced on farms and processed or manufactured products thereof, transported or intended to be transported in interstate and/or foreign commerce. (July 2, 1926, c. 725, § 1, 44 Stat. 802.)

7 U. S. C., § 452

Establishment of division of cooperative marketing.-The Governor of the Farm Credit Administration is hereby authorized and directed to establish a division of cooperative marketing with suitable personnel in the Farm Credit Administration. Such division shall be under the direction and supervision of the Governor of the Farm Credit Administration. (July 2, 1926, c. 725, § 2, 44 Stat. 802; Oct. 1, 1929, Ex. Or. 5200; Mar. 27, 1933, Ex. Or. 6084.)

"Governor of Farm Credit Administration" and "Farm Credit Administration" mentioned in the text were substituted for "Secretary of Agriculture" and "Department of Agriculture," respectively, pursuant to the Executive Orders cited thereto, which are set out in full at the beginning of this circular.

7 U.S. C., § 453

Authority and duties of division.-(a) The division shall render service to associations of producers of agricultural products, and federations and subsidiaries thereof, engaged in the cooperative marketing of agricultural products, including processing, warehousing, manufacturing, storage, the cooperative purchasing of farm supplies, credit, financing, insurance, and other cooperative activities. (b) The division is authorized

(1) To acquire, analyze, and disseminate economic, statistical, and historical information regarding the progress, organization, and business methods of cooperative associations in the United States and foreign countries.

(2) To conduct studies of the economic, legal, financial, social, and other phases of cooperation, and publish the results thereof. Such studies shall include the analyses of the organization, operation, financial, and merchandising problems of cooperative associations.

(3) To make surveys and analyses if deemed advisable of the accounts and business practices of representative cooperative associations upon their request; to report to the association so surveyed the results thereof; and with the consent of the association so surveyed to publish summaries of the results of such surveys, together with similar facts, for the guidance of cooperative associations and for the purpose of assisting cooperative associations in developing methods of business and market analysis.

(4) To confer and advise with committees or groups of producers, if deemed advisable, that may be desirous of forming a cooperative association and to make an economic survey and analysis of the facts surrounding the production and marketing of the agricultural product or products which the association, if formed, would handle or market.. (5) To acquire from all available sources information concerning crop prospects, supply, demand, current receipts, exports, imports, and prices of the agricultural products handled or marketed by cooperative associations, and to employ qualified commodity marketing specialists to summarize and analyze this information and disseminate the same among cooperative associations and others.

(6) To promote the knowledge of cooperative principles and practices and to cooperate, in promoting such knowledge, with educational and marketing agencies, cooperative associations, and others.

(7) To make such special studies, in the United States and foreign countries, and to acquire and disseminate such information and findings as may be useful in the development and practice of cooperation. (July 2, 1926, c. 725, § 3, 44 Stat. 802.)

7 U. S. C., § 454

Advisers to counsel with Governor of the Farm Credit Administration; expenses and subsistence.-The Governor of the Farm Credit Administration is authorized, in his discretion, to call advisers to counsel with him and/or his representatives relative to specific problems of cooperative marketing of farm products or any other cooperative activity. Any person, other than an officer, agent, or employee of the United States, called into conference, as provided for in this

section, may be paid actual transportation expenses and not to exceed $10 per diem to cover subsistence and other expenses while in conference and en route from and to his home. (July 2, 1926, c. 725, § 4, 44 Stat. 803; Oct. 1, 1929, Ex. Or. 5200; Mar. 27, 1933, Ex. Or. 6084.)

"Governor of Farm Credit Administration" mentioned in the text was substituted for "Secretary of Agriculture" pursuant to the Executive Orders cited thereto, which are set out in full at the beginning of this circular.

7 U. S. C., § 455

Dissemination of crop, market, etc., information by cooperative marketing associations.-Persons engaged, as original producers of agricultural products, such as farmers, planters, ranchmen, dairymen, nut or fruit growers, acting together in associations, corporate or otherwise, in collectively processing, preparing for market, handling, and marketing in interstate and/or foreign commerce such products of persons so engaged, may acquire, exchange, interpret, and disseminate past, present, and prospective crop, market, statistical, economic, and other similar information by direct exchange between such persons, and/or such associations or federations thereof, and/or by and through a common agent created or selected by them. (July 2, 1926, c. 725, § 5, 44 Stat. 803.)

7 U. S. C., § 456

Rules and regulations; appointment, removal, and compensation of employees; expenditures; appropriations.-The Governor of the Farm Credit Administration may make such rules and regulations as may be deemed advisable to carry out the provisions of this chapter and may cooperate with any department or agency of the Government, any State, Territory, District, or possession, or department, agency, or political subdivision thereof, or any person; and may call upon any other Federal department, board, or commission for assistance in carrying out the purposes of this chapter; and shall have the power to appoint, remove, and fix the compensation of such officers and employees not in conflict with existing law and make such expenditure for rent, outside the District of Columbia, printing, telegrams, telephones, books of reference, books of law, periodicals, newspapers, furniture, stationery, office equipment, travel, and other supplies and expenses as shall be necessary to the administration of this chapter in the District of Columbia and elsewhere, and there is hereby authorized to be appropriated, such sums as may be necessary after the fiscal year 1927, for carrying out the purposes of this chapter. (July 2, 1926, c. 725, § 6, 44 Stat. 803; Oct. 1, 1929, Ex. Or. 5200; Mar. 27, 1933, Ex. Or. 6084.)

"Governor of Farm Credit Administration" mentioned in the text was substituted for "Secretary of Agriculture" pursuant to the Executive Orders cited thereto, which are set out in full at the beginning of this circular.

7 U. S. C., § 457

Separability of provisions.-If any provision of this chapter is declared unconstitutional or the applicability thereof to any person or circumstance is held invalid, the validity of the remainder of the chapter and the applicability of such provision to other persons and