Chapter 518. To amend section 16 of the Federal Farm Loan Act
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CHAP. 518.— An Act To amend section 16 of the Federal Farm Loan Act. March 4, 1931.[[H. R. 12063](/us/bill/71/hr/12063).][[Public, No. 865](/us/pl/71/865).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, Federal Farm Loan Act.Vol. 39, p. 374, amended.[U. S. C., p. 308](/us/usc/p308).Interest on mortgages. That section 16 of the Federal Farm Loan Act, as amended (U. S. C., title 12, ch. 7, secs. 811–823), be amended by substituting in the eighth paragraph thereof (U.
S. C., title 12, ch. 7, sec. 818) a comma for the period at the end of the first sentence and adding the following new matter: “except as hereinafter provided.” Sec. 2. New matter added.Vol. 39, p. 374, amended.Vol. 43, p. 1263, amended.[U. S. C., p. 308](/us/usc/p308). That section 16 of the Federal Farm Loan Act, as amended, be further amended by inserting after the last paragraph thereof (U. S. C., title 12, ch. 7, sec. 823) the following new paragraph: " Joint-stock land banks.Federal land bank, etc., may acquire assets, etc., of, in insolvency.“In any case where a joint-stock land bank has been, or may be, declared insolvent and placed in the hands of a receiver by the Federal Farm Loan Board, any Federal land bank or joint-stock land bank may, in the manner as may be prescribed by the Federal Farm Loan Board and with the approval of the Federal Farm Loan Loans secured by first mortgages on farm lands, thereafter authorised.Board, acquire the assets and assume the liabilities of said joint-stock land bank in the hands of a receiver.
Any joint-stock land bank which has acquired or may hereafter acquire the assets and which has assumed or may hereafter assume the liabilities of another joint-stock land bank may, if authorized by the Federal Farm Loan Board, make loans secured by first mortgages on farm lands within the States in which the other joint-stock land bank was authorized to make loans at the time of such acquisition, and the acquiring bank may, with the approval of the Federal Farm Loan Board, continue to make loans in the States where it was authorized to make loans *Proviso*.Restriction.at the time of such acquisition: *Provided*, *however*, That the acquiring bank shall not be authorized to make loans at any one time in more than five States, of which one shall be the State in which the bank has its principal office, one shall be contiguous to such State, the other shall be the States in which the acquired joint-stock land banks were authorized to make loans at the time of such acquisition, and all of said five States shall be situated in contiguous territory.
” " Approved, March 4, 1931.