§ 1020d. Purchase of consolidated farm loan bonds; loans to Federal and joint-stock land banks; investment in mortgages; extensions. The corporation is further authorized to purchase from time to time, for cash, such consolidated farm loan bonds at such prices and upon such terms as may be approved by the board of directors of the corporation; to make loans to Federal land banks and joint-stock land banks on the security of real estate mortgages, sheriff's certificates, sales contracts and real estate, upon such terms and conditions as shall be prescribed by the board of directors of the corporation: Provided, however, That loans outstanding to joint-stock land banks under this section shall not at any one time exceeded in the aggregate $10,000,000; to make loans Federal land banks on the security of consolidated farm loan bonds; and to invest its funds in mortgage loans made under section 1016 of this title.

When in the judgment of the directors conditions justify it, the corporation shall have power to extend, in whole or in part, any unpaid obligation under the terms of any mortgage, and to accept payment of any such obligation together with interest thereon, at a rate not exceeding 5 per centum per annum, during such period and in such amounts as may be agreed upon at the date of making such extension. (Jan. 31, 1934, ch. 7, § 4 (b), 48 Stat. 346; Aug. 19, 1937, ch. 704, §§ 2, 4, 50 Stat. 703.)

SAVING CLAUSE

See note under section 640a of this title.

§ 1020e. Preparation of bonds.-In order to furnish bonds for delivery by the Federal Farm Mortgage Corporation, the Secretary of the Treasury is hereby authorized to prepare suitable bonds in such form, subject to the provisions of this subchapter, as the board of directors may approve, such bonds when prepared to be held in the Treasury subject to delivery upon order of the corporation. The engraved plates, dies, bed pieces, and so forth, executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The corporation shall reimburse the Secretary of the Treasury for any expenditures made in the preparation, custody, and delivery of such bonds. (Jan. 31, 1934, ch. 7, § 4 (c), 48 Stat. 346.)

REFERENCES IN TEXT

In the original "this subchapter" reads "this Act," meaning the Federal Farm Mortgage Corporation Act (act Jan. 31, 1934, cited to text). For distribution of said Federal Farm Mortgage Corporation Act in this Code, see note under section 1020h of this title.

§ 1020f. Exemptions from taxation.-(a) The corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the corporation shall be subject to State, Territorial, county, municipal, or local taxation to the same extent, according to its value as other real property is taxed.

(b) Mortgages executed to the Land Bank Commissioner and mortgages held by the Corporation, and the credit instruments secured thereby, and bonds issued by the Corporation under the provisions of this subchapter, shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). (Jan 31, 1934, ch. 7, § 12, 48 Stat. 347; Feb. 26, 1934, ch. 33, 48 Stat. 360.)

REFERENCES IN TEXT

In the original "this subchapter" reads "this Act," meaning the Federal Farm Mortgage Corporation Act (act Jan. 31, 1934, cited to text). For distribution of said Federal Farm Mortgage Corporation Act in this Code, see note under section 1020h of this title.

CROSS REFERENCES

United States obligations and evidences of ownership issued after March 27, 1942, as subject to Federal taxation, see section 742a of Title 31, Money and Finance.

§ 1020g. Severability clause; reservation of right to amend.(a) If any provision of this subchapter, or the application thereof to any person or circumstances, is held invalid, the remainder of the subchapter, and the application of such provision to other persons or circumstances, shall not be affected thereby, (b) The right to alter, amend, or repeal this subchapter is hereby expressly reserved. (Jan. 31, 1934, ch. 7, § 17, 48 Stat. 348.)

REFERENCES IN TEXT

In the original "this subchapter" reads "this Act," meaning the Federal Farm Mortgage Corporation Act (act Jan. 31, 1934, cited to text). For distribution of said Federal Farm Mortgage Corporation Act in this Code, see note under section 1020h of this title.

§ 1020h. Citation of subchapter. This subchapter may be cited as the Federal Farm Mortgage Corporation Act." (Jan. 31, 1934, ch. 7, § 18, 48 Stat. 349.)

REFERENCES IN TEXT

The Federal Farm Mortgage Corporation Act was incorporated into the Code as sections 347, 355, 723, 772, 781, 897, 992a, 1016, 1020-1020h, 1061, 1131i, 1138b, and 1138d of this title.

LOANS TO FARMERS BY GOVERNOR OF FARM CREDIT

ADMINISTRATION

§ 1020i. Loans to farmers by Governor of Farm Credit Administration; purposes.-The Governor of the Farm Credit Administration, hereinafter in sections 10201-1020n and 10200 of this title referred to as the Governor, is hereby authorized to make loans to farmers in the United States (including Hawaii and Puerto Rico), for fallowing, for planting, for cultivation, for production of crops, for harvesting of crops, for supplies incident and necessary to such production or harvesting, and for feed for livestock, or for any of such purposes. Such loans shall be made and collected through such agencies, upon such terms and con

ditions, and subject to such regulations, as the Governor may prescribe. (Jan. 29, 1937, ch. 7, § 1, 50 Stat. 5.)

§ 1020j. Persons entitled; security; limitation on amount; interest. (a) No loan shall be made under sections 1020i-1020n and 10200 of this title to any applicant who shall not have first established to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such regulations as the Governor may prescribe, that such applicant is unable to procure from other sources a loan in an amount reasonably adequate to meet his needs for the purposes for which loans may be made under sections 10201-1020n and 10200 of this title; and preference shall be given to the applications of farmers whose cash requirements are small.

(b) There shall be required as security for any such loan a first lien, or an agreement to give a first lien, upon all crops of which the production or harvesting, or both, is to be financed, in whole or in part, with the proceeds of such loan; or, in case of any loan, for the purchase or production of feed for livestock, first lien upon the livestock to be fed.

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(c) No loan made under the provisions of sections 102011020n and 10200 of this title to any borrower shall exceed $400, nor shall a loan be so made in any calendar year which, together with the unpaid principal of prior loans so made to such borrower in that year, shall exceed $400 in amount: Provided, however, That in any area certified by the President of the United States to the Governor as a distressed emergency area, the Governor may make loans without regard to the foregoing limitations as to amount, under such regulations, with such maturities, and in such amounts as he may prescribe.

(d) Each loan shall bear interest at the rate of 4 per centum per annum. (Jan. 29, 1937, ch. 7, § 2, 50 Stat. 6.)

§ 1020k. Use of loan, purposes; exemption from execution, etc. -The proceeds of each loan made by the Governor under the provisions of sections 10201-1020n and 10200 of this title shall be impressed with a trust for the purposes for which loans may be made under said sections, and may be used only for the purposes stated in the application therefor, and such trust shall continue, and the proceeds shall be free from garnishment, attachment, or the levy of an execution, until such proceeds have been used by the borrower for such purposes. (Jan. 29, 1937, ch. 7, § 3, 50 Stat. 6.)

CROSS REFERENCES

Application to rural rehabilitation loans, see section 1007a of Title 7, Agriculture.

10201. Fees for making loans and releasing liens.-(a) Fees for recording, filing, registration, and examination of records (including certificates) shall not exceed 75 cents per loan, and may be paid from the proceeds of the loan.

(b) No fees for releasing liens given to secure loans made pursuant to sections 10201-1020n and 10200 of this title, nor any other fee not specified herein, shall be paid from the funds herein authorized to be appropriated. (Jan. 29, 1937, ch. 7, § 4, 50 Stat. 6.)

§ 1020m. Officers and employees; appointment and compensation; use by other institutions; use of employees of other institu• tions. (a) The Governor shall have power, without regard to the provisions of other laws applicable to the employment and compensation of officers and employees of the United States, to employ and fix the compensation and duties of such agents, officers, and employees as may be necessary to carry out the purposes of sections 10201-1020n and 10200 of this title; but the compensation of such officers and employees shall correspond, so far as the Governor deems practicable, to the rates established by sections 661-673 and 674 of Title 5.

(b) Such agents, officers, and employees, or any of them, and the agents, officers, employees, and facilities of the Farm Credit Administration available for use in connection with loans made under the provisions of sections 10201-1020n and 10200 of this title or of prior crop production, seeds, and feed loan Acts of the same general character, may be used by the Governor to perform services for any institution operating under the supervision of the Farm Credit Administration, upon such terms and conditions as the Governor may determine; and such institutions are hereby expressly empowered to enter into agreements with the Governor for such purpose.

(c) For the purpose of carrying out the provisions of sections 10201-1020n and 10200 of this title and for collecting loans made under other Acts of the same general character, including loans made by the Governor with funds appropriated by the Emergency Appropriation Act, fiscal year 1935 (act June 19, 1934, ch. 648, title II, 48 Stat. 1055), or the Emergency Relief Appropriation Act of 1935 (act April 8, 1935, ch. 48, 49 Stat. 115), the Governor is authorized also to use the facilities and services of any agency or corporation operating under the supervision of the Farm Credit Administration, and of any officer or employee of any such agency or institution, or of the Farm Credit Administration, and may pay for such services and the use of such facilities from the funds made available for the payment of necessary administrative expenses, and such agencies and institutions are hereby expressly empowered to enter into agreements with the Governor for the accomplishment of such purposes and to perform the services provided for therein. (Jan. 29, 1937, ch. 7, § 5, 50 Stat. 6.)

REFERENCES IN TEXT

In the original "sections 661-673 and 674 of Title 5" reads "the Classification Act of 1923, as amended."

§ 1020n. Unlawful use of loans; false representations; accepting fee for securing loans; penalties.-(a) Except with the written permission of the Governor or his duly authorized representative, it shall be unlawful for any borrower to willfully use the proceeds of any loan:

(a) For any purpose other than those specified in the application therefor; or

(2) For the purpose of fallowing, or for the planting, production, or harvesting of any crops on, any land other than that described in his application for such loan.

(b) It shall be unlawful for any person to make any material false representation for the purpose of obtaining, or assisting another to obtain, a loan under the provisions of sections 1020i1020n and 10200 of this title; or willfully to dispose of, or assist in disposing of, except for the account of the Governor, any crops or other property upon which there exists a lien securing a loan made under the provisions of said sections.

(c) It shall be unlawful for any person to charge or accept a fee for preparing or assisting in the preparation of any papers of an applicant for a loan under the provisions of sections 102011020n and 10200 of this title.

(d) Any person violating any provision of this section shall, upon conviction thereof, be punished by a fine of not more than $1,000, or by imprisonment for not more than six months, or both. (Jan. 29, 1937, ch. 7, § 6, 50 Stat. 7.)

CROSS REFERENCES

Application to rural rehabilitation loans, see section 1007a of Title 7, Agriculture.

§ 1020n-1. Fraudulently obtained loans; personal liability of Federal employees.-No employee of the United States on whose certificate or approal loans under sections 1020i-1020n and 10200 of this title, or other acts of the same general character, are or have been made, shall be held personally liable for any loss or deficiency occasioned by the fraud or misrepresentation of applicants or borrowers, if the Governor of the Farm Credit Administration shall determine that such employee has exercised reasonable care in the circumstances, and has complied with the regulations of the Farm Credit Administration in executing such certificate or giving such approval. Notwithstanding any such determination by the Governor of the Farm Credit Administration, this provision shall not be construed to prevent any criminal process against any person who was a party to or had guilty knowledge of such fraud or misrepresentation. (June 30, 1939, ch. 253, title II, 53 Stat. 979; June 25, 1940, ch. 421, § 1, 54 Stat. 569.)

REPEATED.-Act July 1, 1941, ch. 267, § 1, 55 Stat. 444; act July 22, 1942, ch. 516, § 1, 56 Stat. 701.

§ 10200. Appropriations; experditures for printing and binding. (a) There is hereby authorized to be appropriated, out of money in the Treasury not otherwise appropriated, the sum of $50,000,000 for the purpose of enabling the Governor to carry out the provisions of sections 10201-1020n and 10200 of this title. (b) The moneys appropriated in pursuance of subsection (a) of this section, any amounts collected for services rendered under section 5 (b), and all collections of principal and interest of loans made under sections 10201-1020n and 10200 of this title may be used by the Governor for making loans under said sections, and for all necessary administrative expenses incurred in connection with the making and collection of such loans.

(c) Expenditures for printing and binding necessary in corrying out the provisions of sections 1020i-1020n and 10200 of