73d CONGRESS . SESS . I. CH. 25. MAY 12, 1933 .
45 `~ Each such borr ower may coven ant i n hi s mor tgage that , wh en- n aB orone rrngto c ove- joi n there are ten or more borrowers who have obtained from a loan association wh en Federal land bank direct loans under the provisions of this section locally formed . aggregating not less than $20,000, and who reside in a locality which may, in the opinion of the Farm Loan Commissioner, be conveniently covered by the charter of and served by a national farm-loan asso- ciation, he will unite with such other borrowers to form a national farm-loan association . Such borrowers shall organize the associa- Organ izati on, etc • tion subject to the requirements and the conditions specified in this section, so far as the same may be applicable, and in accordance with rules and regulations of the Farm Loan Commissioner . As soon as Exchange of stock . the organization of the association has been approved by the Farm Loan Commissioner, the stock in the Federal land bank held by each of the members of such association shall be canceled at par, and in lieu thereof the bank shall issue in the name of the association an equal amount of stock in said bank, which stock shall be held by said bank as colla teral securi ty as provid ed in t his se ction with r espect s e H n r i t y o
co llater al to other loans through national farm-loan associations . Thereupon there shall be issued to each such member an amount of capital use as Is ofeapitalstock; collat eral . stock in the association equal to the amount which he previously held in said bank, which stock shall be held by said association as col- lateral security as provided in section 8 of this Act . The board of Lia bil ity for p ay- ment of mortgages . directors of said association shall adopt a resolution authorizing and directing its secretary-treasurer on behalf of said association to endorse, and thereby become liable for the payment of, the mort- gages taken from its charter members by the Federal land bank . When it shall appear to the satisfaction of the Farm Loan Commis- Interest reduced sioner that all the foregoing conditions have been complied with when con ditions com- > plied with . and upon the granting of the charter by the Farm Loan Commis- sioner, the interest rate paid by each charter member of such asso- ciat ion whose loan is in go od st andin g sh all, begin ning with his next regular installment date, be reduced to the rate of interest paid by borrowers on new loans made through national farm-loan asso- ciations in the same Federal land-bank district at the time the said loan was made to such charter member . " Charge s to b e paid by ap plican ts for direct loans from a Fede ral I. e...
for direct land bank shall not exceed amounts to be fixed by the Farm Loan Commissioner and shall in no case exceed the charges which may be made to applicants for loans and borrowers through national Vol . 39, pp. 369, 372 farm-loan associations under the provisions of sections 11 and 13 of this Act." LOANS TO RE CEIVE RS SEC . 27. Any receiver appointed by the Federal Farm Loan Board pursuant to section 29 of the Federal Farm Loan Act, as amended, or any receiver appointed by a district court of the United States, is authorized, for the purpose of paying taxes on farm real estate owned by the bank or securing the mortgages held by it, with the approval of the Farm Loan Commissioner, to borrow from the Reconstruction Finance Corporation and to issue receiver's certifi- cates against t he assets of such bank as s ecurity f or any lo an receiv ed from the Corporation under this section, and such certificates shall constitute a prior lien on such assets . The Reconstruction Finance Corporation is authorized to make loans to such receivers for the pur- poses of this s ection . Receivers to borrow on s ecu rity of rece iver 's cert ifica tes for p aying taxes, etc . Vol.39,p.381. Prior lien consti- tuted . Re con str uct ion Fi- nan ce Cor por ati on to mak e s uch loans .
