Chapter 215. To amend section 16 of the Act of Congress approved July 17, 1916, known as the Federal Farm Loan Act
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CHAP. 215.— An Act To amend section 16 of the Act of Congress approved July 17, 1916, known as the Federal Farm Loan Act. May 29, 1920. [[S. 3897](/us/bill/66/s/3897).] [[Public, No. 232](/us/pl/66/232).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* That section 16 ofFederal Farm Loan Act.Vol. 39, p. 375, amended. the Act of Congress approved July 17, 1916, known as the Federal Farm Loan Act, be amended by adding thereto the following:
" “Any joint-stock land bank organized and doing business underVoluntary liquidation of joint stock land banks. the provisions of this Act may go into voluntary liquidation by making provision, to be approved by the Federal Farm Loan Board, for the payment of its liabilities: *Provided*, That such method of liquidation*Proviso*.Action of stockholders. shall have been duly authorized by a vote of at least two-thirds of the shareholders of such joint-stock land bank at a regular meeting, or at a special meeting called for that purpose, of which at least ten days’ notice in writing shall have been given to stockholder.
“For the purpose of assisting in any such liquidation duly authorizedFederal land banks may acquire property, etc. as in the preceding paragraph provided, any Federal land bank may, with the approval of the Federal Farm Loan Board, acquire the assets and assume the liabilities of any joint stock land bank, and in such transaction may waive the provisions of this Act requiringLoan restrictions waived. such land bank to acquire its loans only through national farm loan associations, or agents, and those relating to status of borrower, purposes of loan, and also the limitation as to the amount of individual loans.
“No Federal land bank shall assume the obligations of any joint-stockLimitation on assumption by land bank. land bank, in such manner as to make its outstanding obligations more than twenty times its capital stock, except by the creation of a special reserve equal to one-twentieth of the amount of such additional obligations assumed.” " Approved, May 29, 1920.