(2) For the purpose of determining the most practical plan, terms, and conditions of insurance with respect to corn, dry beans, oats, barley, rye, tobacco, rice, peanuts, soybeans, sugar beets, sugarcane, timber and forests, potatoes and other vegetables, citrus and other fruits, tame hay, and any other agricultural commodity, if sufficient actuarial data are available, as determined by the Board, to insure upon such terms and conditions not inconsistent with the provisions of this chapter as it may determine, producers of such agricultural commodities against loss due to the unavoidable causes covered in paragraph (1) of this subsection: Provided, That such insurance shall be limited in 1945 to corn and tobacco and to not more than three additional crops for each year thereafter. Insurance provided for any agricultural commodity under this paragraph shall be subject to the limitations and conditions provided in paragraph (1) of this subsection, shall be for a period of not more than three years, and shall be limited to producers in not to exceed twenty counties selected by the Board as representative of the several areas where the agricultural commodity is normally produced: Provided, however, That such insurance may cover a percentage not in excess of 75 per centum of the investment in the crop, as determined by the Board. The Corporation shall report annually to the Congress the results of its operations as to each commodity under this paragraph. (b) Premiums. To fix adequate premiums for insurance in the agricultural commodity or in cash, at such rates as the Board deems sufficient to cover claims for crop losses on such insurance and to establish as expeditiously as possible a reasonable reserve againt unforeseen losses. Such premiums shall be collected at such time or times, or shall be secured in such manner, as the Board may determine: Provided, That, after the crop year of 1949, not more than a sum equivalent to 25 per centum of the premiums collected in the preceding year (beginning calculation of premiums collected in the crop year of 1949) shall be used for administrative expenses in any current operating year. (c) Payment of claims; actions on claims. To adjust and pay claims for losses in the agricultural commodity or in cash, under rules prescribed by the Board: Provided, however, That, after the crop year of 1949, if the total amount of accumulated claims for losses on any agricultural commodity for any year exceeds the total amount of the premiums collected less the accumulated premium reserves of the Corporation with respect to any such commodity, which reserves, after the crop year of 1948, shall not be less than 10 per centum of the premiums collected on such commodity), such claims shall be paid on a pro rata reduced basis. The Corporation shall provide for the posting annually in each county at the county courthouse of a list of indemnities paid for losses on farms in such county. In the event that any claim for indemnity under the provisions of this chapter is denied by the Corporation, an action on such claim may be brought against the Corporation in the United States district court, or in any court of record of the State having general jurisdiction, sitting in the district or county in which the insured farm is located, and jurisdiction is hereby conferred upon such district courts to determine such controversies without regard to the amount in controversy: Provided, That no suit on such claim shall be allowed under this section unless the same shall have been brought within one year after the date when notice of denial of the claim is mailed to and received by the claimant. (d) Purchase and sale of agricultural commodity.-From time to time, in such manner and through such agencies as the Board may determine, to purchase, handle, store, insure, provide storage facilities for, and sell the agricultural commodity, and pay any expenses incidental thereto, it being the intent of this provision, however, that, insofar as practicable, the Corporation shall purchase the agricultural commodity only at the rate and to a total amount equal to the payment of premiums in cash by farmers or to replace promptly the agricultural commodity sold to prevent deterioration; and shall sell the agricultural commodity only to the extent necessary to cover payments of indemnities and to prevent deterioration: Provided, however, That nothing in this section shall prevent prompt offset purchase and sales of the agricultural commodity for convenience in handling. Nothing in this section shall prevent the Corporation from accepting, for the payment of premiums, notes payable in the commodity insured, or the cash equivalent, upon such security as may be determined pursuant to subsection (b) of this section, and from purchasing the quantity of the commodity represented by any of such notes not paid at maturity. The restriction on the purchase and sale of the agricultural commodity provided in this section shall be made a part of any crop insurance agreement made under this chapter. Notwithstanding any provision of this chapter, there shall be no limitation upon the legal or equitable remedies available to the insured to enforce against the Corporation the foregoing restriction with respect to purchases and sales of the agricultural commodity. (e) In connection with insurance upon yields of cotton, to include provision for additional premium and indemnity in terms of lint cotton to cover loss of cottonseed, such additional premium and indemnity to be determined on the basis of the average relationship between returns from cottonseed and returns from lint cotton for the same period of years as that used for computing yields and premium rates. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 508, 52 Stat. 74; June 22, 1938, ch. 563, 52 Stat. 835; June 21, 1941, ch. 214, §§ 3-7, 10, 55 Stat. 255, 256; Dec. 23, 1944, ch. 731, §§ 1-3, 58 Stat. 918, 919.) AMENDMENTS 1944-Subsec. (a) amended generally by act Dec. 23, 1944, cited to text, to provide insurance against loss not only for wheat and cotton crops but also for flax, corn, oats, etc. Subsec. (b) amended by act Dec. 23, 1944, cited to text, which provided for the establishment of such rates as would cover crop losses and build up a reasonable reserve, and added proviso. Subsec. (c) amended by act Dec. 23, 1944, cited to text, which inserted first proviso, and inserted "and received" following "mailed to" in last proviso. 1941-Subsec. (a) was amended by act June 21, 1941, cited to text, which struck out comma following "1939" and inserted in lieu thereof "and with the cotton crop planted for harvest in 1942;" struck out the words "producers of wheat against loss in yields of wheat" and substituted in lieu thereof "producers of the agricultural commodity against loss in yields of the agricultural commodity" in the first sentence; and substituted "the agricultural commodity" for "wheat" in the third sentence. Subsecs. (b), (c), (d) were amended by act June 21, 1941, cited to text, which substituted the words "the agricultural commodity" for "wheat" throughout, and in subsec. (d) second sentence was inserted. Subsec. (e) was added by act June 21, 1941, cited to text. TRANSFER OF FUNCTIONS Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Adjustment Administration, see note under section 1503 of this title. § 1509. Exemption of indemnities from levy.-Claims for indemnities under this chapter shall not be liable to attachment, levy, garnishment, or any other legal process before payment to the insured or to deduction on account of the indebtedness of the insured or his estate to the United States except claims of the United States or the Corporation arising under this chapter. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 509, 52 Stat. 75.) § 1510. Deposit and investment of funds; Federal Reserve banks as fiscal agents.-All money of the Corporation not otherwise employed may be deposited with the Treasurer of the United States or in any bank approved by the Secretary of the Treasury, subject to withdrawal by the Corporation at any time, or with the approval of the Secretary of the Treasury may be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. Subject to the approval of the Secretary of the Treasury, the Federal Reserve banks are hereby authorized and directed to act as depositories, custodians, and fiscal agents for the Corporation in the performance of its powers conferred by this chapter. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 510, 52 Stat. 75.) § 1511. Tax exemption.-The Corporation, including its franchise, its capital, reserves, and surplus, and its income and property, shall be exempt from all taxation now or hereafter imposed by the United States or by any Territory dependency,, or possession thereof, or by any State, county, municipality, or local taxing authority. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 511, 52 Stat. 75.) § 1512. Corporation as fiscal agent of government.-When designated for that purpose by the Secretary of the Treasury, the Corporation shall be a depository of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary; and it may also be employed as a financial agent of the Government; and it shall perform all such reasonable duties, as a depository of public money and financial agent of the Government, as may be required of it. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 512, 52 Stat. 75.) § 1513. Accounting by corporation.-The Corporation shall at all times maintain complete and accurate books of account and shall file annually with the Secretary of Agriculture a complete report as to the business of the Corporation. The financial transactions of the Corporation shall be audited at least once each year by the General Accounting Office for the sole purpose of making a report to Congress, together with such recommendations as the Comptroller General of the United States may deem advisable: Provided, That such report shall not be made until the Corporation shall have had reasonable opportunity to examine the exceptions and criticisms of the Comptroller General or the General Accounting Office, to point out errors therein, explain or answer the same, and to file a statement which shall be submitted by the Comptroller General with his report. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 513, 52 Stat. 76.) § 1514. Crimes and offenses-(a) False statements; overvaluation of securities.-Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining for himself or another money, property, or anything of value, under this chapter, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. (b) Speculation by employers in commodities or stock of handling corporations.-No person shall, while acting in any official capacity in the administration of this chapter, speculate, directly or indirectly, in any agricultural commodity or product thereof, to which this chapter applies, or in contracts relating thereto, or in the stock or membership interests of any association or corporation engaged in handling, processing, or disposing of any such commodity or product. Any person violating this subsection shall upon conviction thereof be fined not more than $10,000 or imprisoned not more than two years, or both. (c) Embezzlement, etc.; false entries; fraudulent issue of obligations of corporation.-Whoever, being connected in any capacity with the Corporation, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to the Corporation or pledged or otherwise entrusted to it; or (2) with intent to defraud the Corporation, or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or statement of, or to, the Corporation or draws any order, or issues, puts forth, or assigns any note or other obligation or draft, mortgage, judgment, or decree thereof; or (3) with intent to defraud the Corporation, participates or shares in or receives directly or indirectly any money, profit, property, or benefits through any transaction, loan, commission, contract, or any other act of the Corporation, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both. (d) Misappropriation of pledged securities.-Whoever willfully shall conceal, remove, dispose of, or convert to his own use or to that of another, any property mortgaged or pledged to, or held by, the Corporation, as security for any obligation, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both. (e) Conspiracy to commit offense.-Whoever conspires with another to accomplish any of the acts made unlawful by the pre ceding provisions of this section shall, on conviction thereof, be subject to the same fine or imprisonment, or both, as is applicable in the case of conviction for doing such unlawful act. (f) Application of laws on interest of members of Congress in contracts. The provisions of sections 202-207 of Title 18 insofar as applicable, are extended to apply to contracts or agreements with the Corporation under this chapter: Provided, however, That the provisions of section 22 of Title 41 and sections 204 and 205 of Title 18 shall not apply to any crop-insurance agreements made under this chapter. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 514, 52 Stat. 76.) § 1515. Advisory committee; appointment and compensation.— The Secretary of Agriculture is authorized to appoint from time to time, an advisory committee, consisting of not more than five members experienced in agricultural pursuits and appointed with due consideration to their geographical distribution, to advise the Corporation with respect to carrying out the purposes of this chapter. The compensation of the members of such committee shall be determined by the Board but shall not exceed $10 per day each while actually employed and actual necessary traveling and subsistence expenses, or a per diem allowance in lieu thereof. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 515, 52 Stat. 77.) § 1516. Appropriations and regulations.—(a) There are hereby authorized to be appropriated such sums, not in excess of $12,000,000 for each fiscal year beginning after June 30, 1938, as may be necessary to cover the operating and administrative costs of the Corporation, which shall be allotted to the Corporation in such amounts and at such time or times as the Secretary of Agriculture may determine: Provided, That expenses in connection with the purchase, transportation, handling, or sale of the agricultural commodity may be considered by the Corporation as being nonadministrative or nonoperating expenses. For the fiscal year ending June 30, 1939, the appropriation authorized under this subsection is authorized to be made only out of the unexpended balances for the fiscal year ending June 30, 1938, of the sums appropriated pursuant to section 5900 of Title 16, as amended. (b) The Secretary and the Corporation, respectively, are authorized to issue such regulations as may be necessary to carry out the provisions of this chapter. (Feb. 16, 1938, 3 p. m., ch. 30, title V, § 516, 52 Stat. 77; June 21, 1941, ch. 214, §§ 6, 8, 55 Stat. 255, 256.) AMENDMENTS 1941-Subsec. (a) was amended by act June 21, 1941, cited to text, which substituted the words "the agricultural commodity" for "wheat", and substituted "$12,000,000" for "$6,000,000". TRANSFER OF FUNCTIONS Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Adjustment Administration, see note under section 1503 of this title. § 1517. Separability clause. The sections of this chapter and subdivisions of sections are hereby declared to be separable, and. in the event any one or more sections or parts of the same of |