Chapter 78. To amend section 4 of the Act approved July 17, 1916, known as federal Farm Loan Act, extending its provisions to Porto Rico
457 words·~2 min read·
/statutes-at-large/vol-41/chapter-78-4790734·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 78.— An Act To amend section 4 of the Act approved July 17, 1916, known as federal Farm Loan Act, extending its provisions to Porto Rico. February 27, 1921. [[H. R. 8038](/us/bill/66/hr/8038).] [[Public, No. 334](/us/pl/66/334).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * Federal Farm Loan banks.Vol. 39, p. 362, amended. That paragraph 2 of section 4 of the Act approved July 17, 1916, known as the Federal Farm Loan Act, be amended to read as follows:
" “The Federal Farm Loan Board shall establish in each FederalBank for each district. land bank district a Federal land bank, with its principal office located in such city within the district as said board shall designate. Each Federal land bank shall include in its title the name of the city in which it is located. Subject to the approval of the Federal FarmBranches. Loan Board, any Federal land bank may establish branches within the land bank district. Subject to the approval of the FederalConditions extended to Porto Rico.
Farm Loan Board and under such conditions as it may prescribe, the provisions of this Act are extended to the island of Porto Rico; and such Federal land bank as may be designated by the Federal Farm Loan Board, is hereby authorized to establish a branch bank at such point as the Federal Farm Loan Board may direct on the island of Porto Rico. Loans made by such branch bank, when soLoans restricted. established, shall not exceed the sum of $5,000 to any one borrower and shall be subject to the restrictions and provisions of this Act, except that such branch bank may loan direct to borrowers, and subject to such regulations as the Federal Farm Loan Board may prescribe the rate charged borrowers may be 1| per centum in excess of the rate borne by the last preceding issue of farm loan bonds of the Federal land bank with which such branch bank is connected: *Provided,**Proviso.* Term. *however, *That no loans shall be made in the island of Porto Rico to run for a longer term than twenty years.
“Each borrower through such branch bank shall subscribe andSubscription for ¡stock by borrowers. pay for stock in the Federal land bank with which it is connected m the sum of $5 for each $100 or fraction thereof borrowed; such stock shall be held by such Federal land bank as collateral security for the loan of the borrower; shall participate in all dividends; and upon full payment of the loan shall be canceled at par and proceeds paid to borrower, or the borrower may apply the same to the final payments on his loan.
” " Approved, February 27, 1921.