664
PUBLIC LAW 809-JULY 26, 1956
[70 S T A T,
obligation presented by such association; and to make loans and advances to any such association secured by such collateral as may be approved by the Governor of the F a r m Credit Administration; "(2) to discount for, or purchase from, any national bank, State bank, trust company, agricultural credit corporation, incorporated livestock loan company, savings institution, credit union, and any association of agricultural producers engaged in the making of loans to farmers and ranchers, with its endorsement, any note, draft, or other such obligation the proceeds of which have been advanced or used in the first instance for any agricultural purpose, including the breeding, raising, fattening, or marketing of livestock; and to make loans and advances to any such financing institution secured by such collateral as may be approved by the Governor of the F a r m Credit Administration: Provided, That no such loan or advance shall be made upon the security of collateral other than notes or other such obligations of farmers and ranchers eligible for discount or purchase under the provisions of this section, unless such loan or advance is made to enable the financing institution to make or carry loans for any agricultural purpose; and " (3) to make loans to and discount paper for any other Federal intermediate credit bank, any Federal land bank, or any bank i*^u*sc^^M3i ^^^ cooperatives organized under the F a r m Credit Act of 1933, note. as amended, all upon terms and at rates of interest or discount approved by the F a r m Credit Administration." 12 USC fo33. (c) Section 202(c) of the Federal F a r m Loan Act, as amended, is amended by changing the word "three" to the word "five". 12 USC \olV. \^) Section 204(a) of the Federal F a r m Loan Act, as amended, is amended to read as follows: cowirrate8°' '^^ "SEC. 204. (a) Loans and discounts by any Federal intermediate credit bank shall bear such rates of interest or discount as the board of directors of the bank shall from time to time determine with the {approval of the F a r m Credit Administration, but the rates charged financing institutions other than production credit associations shall be the same as those charged production credit associations." 12 USC* 78 f.' (®) Section 13 of the Federal F a r m Loan Act, as amended, is hereby amended by inserting in paragraph "Seventeenth", after the words "Federal land banks, a comma and the words "to Federal intermediate credit banks, or to banks for cooperatives organized under the ^12 USC 113 1 F a r m Credit Act of 1933, as amended,". 49*Stat. 315. (f) Section 203 of the Federal F a r m Loan Act, as amended, is 12 USC 1041. amended (i) by inserting in subsection (a) thereof, after the words "outstanding consolidated debentures" the words "or other similar 1045."^^ ^°^*' obligations"; and (ii) by inserting in subsections (d) and (e) thereof, after the word "debentures" wherever used therein, except in the last sentence of subsection (d), the words "or other similar obligations". I2^U*SVM3I, SEC. 105. (a) Section 2 of the F a r m Credit Act of 1933, as amended, 1134. ' is amended to read as follows: ope'rati'J^.."' * *
- * "SEC. 2. The Governor of the F a r m Credit Administration, herein'
after in this Act referred to as the 'Governor', is authorized and directed to organize and charter twelve banks to be known as 'banks for cooperatives'. One such bank shall be established in each city in which there is located a Federal land bank. The members of the several farm credit boards of the farm credit districts provided for in 12 USC' 640*' section 5 of the F a r m Credit Act of 1937, as amended, shall be ex officio the directors of the respective banks for cooperatives. Such directors shall have power, subject to the approval of the Governor, to employ and fix the compensation of such officers and employees of
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