Chapter 154. To amend certain sections of the Federal Farm Loan Act, approved July 17, 1916
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CHAP. 154.— An Act To amend certain sections of the Federal Farm Loan Act, approved July 17, 1916. April 20, 1920. [[H. R. 9065](/us/bill/66/hr/9065).] [[Public, No. 182](/us/pl/66/182).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* Federal Farm Loan Act Amendments. That the seventh paragraph of section 3 be amended by adding after the word “Act” the words Deputy registrars authorized.“and may appoint a deputy registrar who shall during the unavoidable absence or disability of the registrar perform the duties of that office” and also by adding after “registrars,” in the sixth line of said paragraph the words “deputy registrars,” so that the paragraph as amended will read:
" Farm loan registrars.Vol. 39, p. 361, amended.“The Federal Farm Loan Board shall appoint a farm loan registrar in each land bank district to receive applications for issues of farm loan bonds and to perform such other services as are prescribed by Deputy registrars.this Act, and may appoint a deputy registrar who shall during the unavoidable absence or disability of the registrar perform the duties Appraisers and examiners.of that office. It shall also appoint one or more land bank appraisers for each land bank district and as many land bank examiners as it Other employments restricted.shall deem necessary.
Farm loan registrars, deputy registrars, land bank appraisers, and land bank examiners appointed under this section shall be public officials and shall, during their continuance in office, have no connection with or interest in any other institution, association, or partnership engaged in banking or in the business of *Proviso*.Temporary employees.making land mortgage loans or selling land mortgages: *Provided*, That this limitation shall not apply to persons employed by the board temporarily to do special work.
” " Sec. 2. Appraisal of lands. That the first paragraph of section 10 be amended to read as follows: " Action of loan committee on applications for loans.Vol. 39, p. 369, amended.Vol. 39, p. 366.“That whenever an application for a mortgage loan is made through a national farm loan association, the loan committee provided for in section 7 of this Act, shall forthwith make, or cause to be made, such investigation as it may deem necessary as to the character and solvency of the applicant, and the sufficiency of the security offered, and cause written report to be made of the result of such investigation, and shall, if it concurs in such report, approve the same in Approval.writing.
No loan shall be made unless the report is favorable, and the loan committee is unanimous in its approval thereof. Submission to land bank.“The written report required in the preceding paragraph shall be submitted to the Federal land bank, together with the application for the loan, and the directors of said land bank shall examine said written report when they pass on the loan application which it accompanies, but they shall not be bound by said appraisal.” " Sec. 3. Powers of land associations.
That the third paragraph of section 11 be amended to read as follows: " To fix charges.Vol. 39 ,p. 370, amended.“Third. To fix reasonable initial charges to be made against applicants for loans and to borrowers in order to meet the necessary expenses *Proviso*.Limit.of the association: *Provided*, That such charges shall not exceed amounts to be fixed by the Farm Loan Board, and shall in no Property ownership.case exceed 1 per centum of the amount of the loan applied for; to acquire and dispose of property, real and personal, that may be necessary or convenient for the transaction of its business.
” " Sec. 4. Loan restrictions.Amortization requirements modified. That section 12 of said Act be amended by striking out in the second provision the words “additional payments in sums of $25, or any multiple thereof for the reduction of the principal, or the payment of the entire principal, may be made on any regular installment date,” and inserting in lieu thereof the words “the mortgagor may, upon any regular installment date, make in advance any number of payments or any portion thereof on account of the principal of his loan as provided by his contract or pay the entire principal of such loan,” so that the provision as amended will read:
" 571 “Every such mortgage shall contain an agreement providing forAmortization agreement required.Vol. 39, p. 370, amended. the repayment of the loan on an amortization plan by means of a fixed number of annual or semiannual installments sufficient to cover, first, a charge on the loan at a rate not exceeding the interest rate in the last series of farm-loan bonds issued by the land bank making the loan; second, a charge for administration and profits at a rate not exceeding 1 per centum per annum on the unpaid principal, said two rates combined constituting the interest rate on the mortgage; and, third, such amounts to be applied on the principal as will extinguish the debt within an agreed period, not less than five years nor more than forty years: *Provided*, That after five years from the date*Provisos*.Advance payments not limited. upon which a loan is made the mortgagor may, upon any regular installment date, make, in advance, any number of payments or any portion thereof on account of the principal of his loan as provided by his contract or pay the entire principal of such loan, under the rules and regulations of the Federal Farm Loan Board: *And provided further*, That before the first issues of farm-loan bonds by any land bankDetermination of interest rate. the interest rate on mortgages may be determined in the discretion of said land bank, subject to the provisions and limitations of this Act.
” " And that the fourth provision in said section be amended byA Existing debts specified. striking out in subdivision
(d)all after the word “mortgaged” and inserting in lieu thereof the words “incurred for agricultural purposes, or incurred prior to the organization of the first Farm Loan Association established in and for the county in which the land is situated,” so that the provision as amended will read: " “Fourth. Such loans maybe made for the following purposes andPurposes of loans. for no other. “(a) To provide for the purchase of land for agricultural uses.Purchase of land. “(b) To provide for the purchase of equipment, fertilizers, andEquipment, live stock, etc. live stock necessary for the proper and reasonable operation of the mortgaged farm; the term ‘equipment’ to be defined by the Federal Farm Loan Board. “(c) To provide buildings and for the improvement of farm lands;Improvement, etc. the term ‘improvement’ to be defined by the Federal Farm Loan Board. “(d) To liquidate indebtedness of the owner of the land mortgagedPayment of prior debts. incurred for agricultural purposes, or incurred prior to the organization of the first Farm Loan Association established in and for the county in which the land is situated.” " Sec. 5. That section 20 of said Act be amended by striking outFarm loan bonds.Denominations modified. $25 and $50, in line 2 of paragraph 1, and inserting in lieu thereof the numeral $40, and also by inserting after $1,000 the words “and such larger denominations as the Federal Farm Loan Board may authorize,” so that the paragraph as amended will read: " “Sec. 20. That bonds provided for in this Act shall be issued inDenominations, terms, etc.Vol. 39, p. 377, amended.*Post*, p. 1362. denominations of $40, $100, $500, $1,000, and such larger denominations as the Federal Farm Loan Board may authorize; they shall run for specified minimum and maximum periods, subject to payment and retirement, at the option of the land bank, at any time after five years from the date oi their issue. They shall have interest coupons attached, payable semiannually, and shall be issued in series of not less than $50,000, the amount and terms to be fixed by the Federal Farm Loan Board. They shall bear a rate of interestInterest limit. not to exceed 5 per centum per annum.” " Sec. 6. That the last paragraph of section 21 of said Act beSpecial bond provisions.Additional officers authorized. amended by inserting after the word “president” the words “or vice president” and by inserting after the word “secretary” the words “or assistant secretary” and also the words “For the purpose of signing such bonds the board of directors of any Federal land572bank is authorized to select a vice president who need not be a member of the board of directors,” and also by striking out the words “and shall” and inserting in lieu thereof the words “such bonds shall also,” so that the paragraph as amended will read: " Form requisites.Vol. 39, p. 377, amended.Vice president.“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; Certificate by Farm Loan Commissioner.such bonds shall also contain in the face thereof a certificate signed by the Farm Loan 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 Federal Farm Loan Board, 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 of United States Government bonds, or indorsed first mortgages on farm lands, at least equal in amount to the bonds issued; and that all Federal land banks are liable for the payment of each bond.” " Approved, April 20, 1920.