Chapter 377.
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/statutes-at-large/vol-44/chapter-377-19819497·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 377.— AN ACT To prohibit offering for sale as Federal farm loan bonds any securities not issued under the terms of the Farm Loan Act, to limit the use of the words “Federal,” “United States,” or “reserve,” or a combination of such words, to prohibit false advertising, and for other purposes.May 24, 1926.[[S. 2606](/us/bill/69/s/2606).][[Public, No. 279](/us/pl/69/279).] *Be it enacted by the Senate and, House of Representatives of the United States of America in Congress assembled*,Farm Loan Act.Banks, etc., not organized under, forbidden to advertise as farm loan bonds any bond not issued under its provisions.Vol. 39, p. 360.
That no bank, banking association, trust company, corporation, association, firm, partnership, or person not organized under the provisions of the Act of July 17, 1916. known as the Federal Farm Loan Act, as amended, shall advertise or represent that it makes Federal farm loans or advertise of offer for sale as Federal farm loan bonds any bond not Using “Federal” “United States” etc., in advertising sale of a security not issued under any Act of Congress.issued under the provisions of the Federal Farm Loan Act, or make use of the word “ Federal ” or the words “ United States ” or any other word or words implying Government ownership, obligation, or supervision in advertising or offering for sale any bond, note, mortgage, or other security not issued by the Government of the United States or under the provisions of the said Federal Farm Loan Act or some other Act of Congress.
Sec. 2. Use forbidden of use of “Federal,” “United States” “reserve,” or combination thereof as business name. That no bank, banking association, trust company, corporation, association, firm, partnership, or person engaged in the banking, loan, building and loan, brokerage, factorage, insurance, indemnity, or trust business shall use the word “ Federal,” the words “ United States,” or the word “ reserve,” or any combination of such words, as a portion of its corporate, firm, or trade name or *Proviso*.Government departments, organizations, etc., excepted.title or of the name under which it does business: *Provided, however*, That the provisions of this section shall not apply to the Federal Reserve Board, the Federal Farm Loan Board, the Federal Trade Commission, or any other department, bureau, or independent establishment of the Government of the United States, nor to any Federal reserve bank, Federal land bank, or Federal reserve agent, nor to the Federal Advisory Council, nor to any corporation Banks, etc., in business under such name prior hereto, excepted.organized under the taws of the United States, nor to any bank, banking association, trust company, corporation, association, firm, partnership, or person actually engaged in business under such name or title prior to the passage of this Act.
Sec. 3. Banks, etc., not in Federal Reserve system forbidden to represent in any way membership therein. That no bank, banking association, or trust company which is not a member of the Federal Reserve system shall advertise or represent in any way that it is a member of such system or publish or display any sign, symbol, or advertisement reasonably calculated to convey the impression that it is a member of such system. Sec. 4. Penalty for violation by bank, etc. That any bank, banking association, trust company, corporation, association, firm, or partnership violating any of the provisions of this Act shall be guilty of a misdemeanor and shall be Punishment for violation by any person, bank officer, etc.subject to a fine of not exceeding $1,000.
Any person violating any of the provisions of this Act, or any officer of any bank, banking association, trust company, corporation, or association, or member of any firm or partnership violating any of the provisions of this Act who participates in, or knowingly acquiesces in, such violations shall be guilty of a misdemeanor and shall be subject to a fine of not exceeding $1,000 or imprisonment not exceeding one629 year, or both. Any such illegal use of such word or words, or any Injunction authorized for illegal use of forbidden words, etc.combination of such words, or any other violation of any of the provisions of this Act, may be enjoined by the United States district court having jurisdiction, at the instance of any United States district attorney, any Federal land bank, joint-stock land bank, Federal reserve bank, or the Federal Farm Loan Board or the Federal Reserve Board.
Sec. 5. That if any clause, sentence, paragraph, or part of thisInvalidity of any clause, etc., not to affect remaindered Act. Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly involved in the controversy in which such judgment shall have been rendered. Approved, May 24, 1926.