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approve, the bank will be authorized to grant the relief requested by the applicant.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.677 Recovery of original bond. If a bond or coupon reported lost, stolen, or destroyed should be recovered, the bank of issue should be notified immediately. If prior to such recovery a bond has been issued to replace such bond reported lost, stolen, or destroyed, pursuant to § 10.671, such replacement bond shall be delivered to the bank of issue for cancelation. If prior to such recovery payment has been made of a bond or coupon reported lost, stolen, or destroyed, such recovered bond or coupon shall be delivered to the bank of issue for cancelation.t (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.678 Immaterial defacements and mutilations. When the defacement or mutilation of a registered bond, a coupon bond, or a coupon thereof, is immaterial and so slight that the bond or coupon may be identified fully and completely, and the missing fragments could not by any possibility form a basis of a claim against the bank of issue, the appropriate relief may be granted by authority of the executive committee or board of directors of the bank without reference to the Land Bank Commissioner and without bond of indemnity, upon presentation to the bank of such bond or coupon.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.679 Affidavits. Every affidavit submitted pursuant hereto must be acknowledged before a notary public, or other officer authorized by law to administer oaths, and, unless authenticated by the official impression seal of the officer, should be accompanied by a certificate from the proper official showing that the officer was in commission on the date of the acknowledgement. The date when the officer's commission expires should appear in any event. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.680 Bonds of indemnity. A bond of indemnity signed by a surety company will be accepted, if such company has been duly incorporated and holds a certificate from the Secretary of the Treasury as being acceptable on surety bonds.
(a) Forms of affidavits and indemnity bonds. Forms of affidavits for use by applicants for relief on account of the loss, theft, or destruction of individual Federal farm loan bonds or the coupons thereof, together with a form of bond of indemnity to be executed and filed with the bank of issue by the applicant for relief, have been furnished to all Federal land banks.
(b) Open penalty bonds in connection with lost, stolen, or destroyed bonds. To file with the bank an open penalty bond of indemnity which has no other limit than the maximum amount for which the surety may obligate itself rather than a penal bond in a fixed amount may result in a material saving in the premium paid by the principal in view of the fact that the rate of an open penalty bond is based on the market value of the lost, stolen, etc., bonds at the time of the execution of the indemnity bond. An open penalty bond affording in fact coverage in an amount in excess of the amount of the fixed penalty bond which would be required in a particular case will be deemed sufficient.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
ACKNOWLEDGMENT OF TRANSFER OF BONDS
10.681 Bonds issued by individual Federal land banks. The following officers are authorized to witness assignments of registered farm loan bonds issued by Federal land banks individually and by joint stock land banks: (a) Officers who are authorized to witness assignments of United States registered bonds; (b) The Land Bank Commissioner; (c) Farm loan registrars; (d) Secretary-treasurers of national farm loan associations; and (e) Notaries public, Provided, That the signatures of notaries public shall be authenticated by their official seals and the dates of expiration of their commissions. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.682 Consolidated Federal farm loan bonds. Transfers of consolidated Federal farm loan bonds_shall be acknowledged in accordance with United States Treasury Department Regulations now or hereafter in force with respect to United States bonds and notes.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
CROSS REFERENCE: For regulations of the Treasury Department with respect to transfer of United States bonds and notes, see 31 CFR Part 306.
CALL OF BONDS
10.697 Method of calling bonds issued by individual Federal land banks. Any Federal land bank desiring to call any bond or bonds issued by such bank (or of which the payment has been assumed by it), then callable according to the terms and tenor thereof, shall file with the Land Bank Commissioner, at least 20 days prior to the date on which the call is to become effective, a certified copy of the resolution (s) of its board of directors authorizing such call, and a formal notice of such call, describing by date of issue, date of maturity, call date, interest rate, and serial numbers (except in the case of a call of all the outstanding bonds, not theretofore called for redemption, of one or more issues) the bond or bonds so called for redemption, and designating the place or places where the same will be paid and the date on which payment will be made. A copy of said notice shall at the same time be mailed, postage prepaid, to each Federal reserve bank and this fact certified under the seal of the bank making the call and submitted with the notice of call filed with the Land Bank Commissioner. The Land Bank Commissioner shall, at least 15 days prior to the date on which the call is to become effective, approve or disapprove the call and cause the Federal land bank concerned and the Federal reserve banks to be notified of his approval or disapproval. If the call is approved, the land bank calling such bonds for payment shall cause notice of such call to be published at least 15 days prior to the effective date of the call, in such journals and newspapers as the Land Bank Commissioner may direct; and a certificate that the required publicity has been given shall be filed with the Land Bank Commissioner. Approval of the call, and publication of the notice as herein required, shall be deemed a complete call; and thereupon the bank making same will be relieved from paying any interest on the bonds called, after the date of payment specified in
For source citation, see note to § 10.7.
(Sec. 6, 47 Stat. 14, secs. 13 "First", 20, 39 Stat. 372,
10.698 Procedure where less than entire issue called. In any case in which it is desired to call for redemption less than all of the outstanding bonds of any issue or issues, the bonds to be so called shall be determined by said bank in such manner as the Land Bank Commissioner shall direct or approve.† (Sec. 6, 47 Stat. 14, secs. 13 "First", 20, 39 Stat. 372, 377; 12 U.S.C. 665, 781 "First", 862)
EXEMPTED SECURITIES UNDER SECURITIES EXCHANGE ACT OF 1934
10.709 Exempted securities under Securities Exchange Act of 1934. Individual and consolidated farm loan bonds issued by Federal land banks and debentures issued by Federal intermediate credit banks under the authority of the Federal Farm Loan Act, approved July 17, 1916 (39 Stat. 360), as amended, have been designated for exemption in accordance with the provisions of paragraph 12 of section 3 (a) of the Securities Exchange Act of 1934 (48 Stat. 884; 15 U.S.C. 78c (a) (12)).† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665; T.D. 1 (Misc.), Sec. Treas., July 30, 1934)
CONDITIONAL PAYMENTS BY BORROWERS FOR SUBSEQUENT CREDIT
10.769 Conditional payments by borrowers for subsequent credit upon indebtedness to land bank. (a) Conditional payments under the provisions of paragraph "Eighteenth" of section 13 of the Federal Farm Loan Act, as amended, shall be accepted by a land bank only for subsequent credit upon indebtedness to the bank incurred pursuant to section 12 or 16 of said Act (39 Stat. 370, 374, as amended; 12 U.S.C. 771, 818, and Sup.).
(b) Wherever used in this section the term "balance of unapplied conditional payments" shall mean the amount of unapplied conditional payments to the credit of the borrower, including interest thereon allowed to the borrower.
(c) The terms and conditions upon which any conditional payment is accepted shall
(1) Identify the indebtedness in connection with which the conditional payment is accepted.
(2) Specify the rate of interest which shall be allowed by the bank, in accordance with regulations of the Farm Credit Administration, on the conditional payment.
(3) Provide that interest allowed upon the conditional payment shall be credited to the borrower and held by the bank in the same manner in which the conditional payment is credited to the borrower and held by the bank.
(4) Provide that the bank shall, out of and to the extent of the balance of unapplied conditional payments held in connection with the indebtedness, as the borrower may direct in writing, pay any portion of said indebtedness as the same becomes due and payable and, after five years from the date upon which the borrower's loan was made, upon any regular installment date, pay in advance any portion of or all the principal of the indebtedness.
For source citation, see note to § 10.7.
(5) Provide that at its option the bank may, out of and to the extent of the balance of unapplied conditional payments held in connection with the indebtedness, pay any portion of said indebtedness as and when the same becomes due and payable if it is not otherwise paid by the borrower at or before maturity.
(6) Provide that if at any time after five years from the date when the borrower's loan was made the balance of unapplied conditional payments held in connection with the indebtedness, equals or exceeds the total thereof, the whole indebtedness shall become due and payable at once and shall be paid out of such balance.
(7) Provide that if at any time before five years from the date when the borrower's loan was made, the balance of unapplied conditional payments equals or exceeds the total of the indebtedness, at the option of the bank the whole indebtedness shall be paid out of such balance.
(8) Provide that any balance of unapplied conditional payments held in connection with the indebtedness, shall be refunded to the borrower by the bank when the indebtedness is paid in full.
(9) Provide that any balance of unapplied conditional payments held in connection with the indebtedness, shall be applied to the unpaid balance thereof prior to a transfer of title to the loan by the bank.
(10) Be consistent with law and with any applicable rules and regulations prescribed by the Farm Credit Administration.
(d) Except with the written approval of the Land Bank Commissioner, the rate of interest allowed by a land bank upon conditional payments shall not exceed 3 percent per annum or the interest rate in the last series of farm loan bonds issued by the bank or a rate 1 percent per annum less than the loan rate specified in the mortgage securing the indebtedness in connection with which the conditional payment is held, whichever is the lower.
(e) A land bank shall not accept conditional payments to an amount exceeding the unpaid balance of the indebtedness in connection with which the conditional payments are held.
(f) Interest shall not be allowed upon any amount which has not been held for the credit of the borrower as an unapplied conditional payment for a period of at least one month.
(g) Interest allowed on conditional payments shall be credited to the borrower upon regular installment dates, Provided, however, That where such payments are held in connection with loans with annual installment dates interest allowed may be credited upon the regular installment dates and the dates midway between such installment dates; Provided, further, That interest allowed shall be credited to the borrower at any time when the loan in connection with which the conditional payments are held is paid in full or the entire balance of conditional payments to the credit of the borrower is applied upon the loan.
(h) A conditional payment shall not be accepted in connection with a delinquent indebtedness. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665,
sec. 17, 50 Stat. 708; 12 U.S.C. 781 "Eighteenth", and Sup.)
For source citation, see note to $10.7.
Section 11.2016 Membership as determined by location of land to be mortgaged. A land owner shall be eligible to membership in the chartered association within whose territory the land to be mortgaged is located, regardless of the applicant's place of residence. A farmer may become a member of two or more associations if he owns eligible land within the territory of each association.*†
*§§ 11.2016 to 11.2023, inclusive, issued under the authority contained in sec. 6, 47 Stat. 14, secs. 7, 8, 9, 12 "Sixth", 39 Stat. 365 ff., as amended; 12 U.S.C. 665, 716, 733, 745, 771 "Sixth", and Sup.
In §§ 11.2016 to 11.2228, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in the Manual for Federal land banks, issued as of April 1, 1938, by the Land Bank Commissioner and approved by the Executive Committee of the Federal Farm Mortgage Corporation insofar as the Manual sections deal with matters relating to the Federal Farm Mortgage Corporation.
11.2017 Land situated in territory of more than one association. If the farm to be mortgaged lies within the territory of two or more chartered associations, the applicant shall be eligible to join any one of the associations, but if the lands to be mortgaged are not contiguous, they will be treated as a single farm for loan purposes only if the separate units are under common management and are in such proximity to each other as to constitute practically one operative agricultural unit.*+
11.2018 Husband or wife as sole owner. When husband and wife both sign a mortgage but one or the other is sole owner, the one in whose name the title stands is the one who is eligible to membership in the association.*†
11.2019 Joint owners. In cases of joint ownership, each owner who assumes personal liability for a loan must be elected to membership in the national farm loan association through which the
For statutory and source citations, see note to § 11.2016.