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hair solely to the producer as contained in paragraph 2 of the loan agreement must be signed personally by all lienholders listed or by their agents, whose duly executed authority must be attached firmly; or, if corporations, by the designated officer thereof customarily authorized to execute such instruments, in which case the duly executed authority need not be attached. Notes in which the waiver and consent to pledge, as contained in paragraph 2 of the Loan Agreement, are not signed by all prior lienholders listed by producer, will not be acceptable to Commodity Credit Corporation. The producer may direct in the Letter of Transmittal (1938 CCC Wool Form E) that the proceeds check for a direct loan from Commodity Credit Corporation be made payable to him and/or such other person or concern as he may direct thereon.
All wool or mohair pledged to secure wool pool notes on 1938 CCC Wool Form B must likewise be free and clear of all liens. The financial institution executing the note is required to state that each producer participating in the pool has represented and agreed that the wool or mohair delivered by him is free and clear of liens, and the bank must be satisfied as to the power of any lienholders listed by such producers to waive liens and consent to the pledge.*+
202.13 Insurance. Holders of notes desiring insurance coverage in addition to the insurance coverage provided by warehousemen should obtain such coverage at their own expense. Commodity Credit Corporation will make no allowance for insurance in purchasing eligible paper.**
202.14 Loan agencies of the Reconstruction Finance Corporation. The location of the loan agencies of the Reconstruction Finance Corporation previously referred to herein and the districts served by them are shown below:
All cities in 6th Federal Reserve District.
All cities in 7th Federal Reserve District.
All cities in 11th Federal Reserve District attached to
Kansas City------- All cities in 10th Federal Reserve District not attached to
Los Angeles-------. All cities in 12th Federal Reserve District attached to Los
All cities in 4th Federal Reserve District and cities in 8th
All cities in 9th Federal Reserve District.
All cities in 2d Federal Reserve District.
All cities in 10th Federal Reserve District attached to
All cities in 3d Federal Reserve District.
All cities in 12th Federal Reserve District attached to
All cities in 5th Federal Reserve District.
All cities in 11th Federal Reserve District except those attached to Houston.
San Francisco----- All cities in 12th Federal Reserve District attached to San
All cities in 8th Federal Reserve District except those attached to Louisville.*+
*For statutory citation, see note to § 202.1.
202.15 Release of collateral. If the producer's or wool pool's notes were made payable to Commodity Credit Corporation and it is desired to obtain the return of the note and the release of the collateral upon payment, the Federal Reserve bank or branch thereof serving the district in which the wool or mohair is stored should be notified. If note was made payable to a payee other than Commodity Credit Corporation, the producer or representative of the wool pool should notify the payee named therein. Warehouse receipts representing wool or mohair held by Commodity Credit Corporation will be released by the Federal Reserve bank or branch thereof holding the receipts, upon the payment of the amount of the loan, the accrued interest, and proper charges. No partial releases will be permitted. Upon written request of the producer or the lending agency, the note and warehouse receipts will be forwarded to an approved bank, to be released to the producer or his agent or the representative of the wool pool against payment. Where receipts are transmitted to a bank they will be sent with a request to return them to the sender if payment and release are not effected within 15 days. All charges and expenses of the collecting bank are to be paid by the producer or representative of the wool pool.*+
PART 251-COMMODITY CREDIT CORPORATION
251.1 Offering of notes.
251.2 Description of notes.
251.5 General powers of Federal Reserve banks.
Section 251.1 Offering of notes. The Secretary of the Treasury, on behalf of the Commodity Credit Corporation, invites subscriptions, at par and accrued interest, from the people of the United States for notes of the Commodity Credit Corporation, designated 34 percent notes of Series C. The amount of the offering is $200,000,000, or thereabouts.***†
**88 251.1 to 251.5, inclusive, issued under the authority contained in E.O. 6340, Oct. 16, 1933, sec. 7, 49 Stat. 4, sec. 2, 50 Stat. 5.
The source of §§ 251.1 to 251.5, inclusive, is Department Circular 583, Public Debt Service, Treas. Dept., Apr. 25, 1938, 3 F.R. 801.
251.2 Description of notes. (a) The notes will be dated May 2, 1938, and will bear interest from that date at the rate of 34 percent per annum, payable semiannually on November 2, 1938, and on May 2 and November 2, 1939. They will mature November 2, 1939, and will not be subject to call for redemption prior to maturity.
(b) These notes are issued under the authority of the act approved March 8, 1938, (52 Stat. 107) which provides that these notes shall be fully and unconditionally guaranteed both as to interest and principal by the United States; that they shall be deemed and held to be instrumentalities of the Government of the United States, and as such they and the income derived therefrom shall be exempt from Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes); and that the notes shall be lawful in
*For statutory citation, see note to § 202.1.
vestments and may be accepted as security for all fiduciary, trust and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof.
(c) The authorizing act further provides that in the event the Commodity Credit Corporation shall be unable to pay upon demand, when due, the principal of, or interest on, such obligations, the Secretary of the Treasury shall pay to the holder the amount thereof which is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such obligations.
(d) The notes will be acceptable to secure deposits of public moneys, but will not bear the circulation privilege.
(e) Bearer notes with interest coupons attached will be issued in denominations of $1,000, $5,000, $10,000 and $100,000. The notes will not be issued in registered form.*t
251.3 Subscription and allotment. (a) Subscriptions will be received at the Federal Reserve banks and branches and at the Treasury Department, Washington. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve banks and the Treasury Department are authorized to act as official agencies. Others than banking institutions will not be permitted to enter subscriptions except for their own account. Cash subscriptions from banks and trust companies for their own account will be received without deposit but will be restricted in each case to an amount not exceeding one-half of the combined capital and surplus of the subscribing bank or trust company. Cash subscriptions from all others must be accompanied by payment of 10 percent of the amount of notes applied for. The Secretary of the Treasury reserves the right to close the books as to any or all subscriptions or classes of subscriptions at any time without notice.
(b) The Secretary of the Treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount of notes applied for, to make allotments in full upon applications for smaller amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action in any or all of these respects shall be final. Subject to these reservations, subscriptions in payment of which Series B Collateral Trust Notes of the Corporation are tendered will be allotted in full. Allotment notices will be sent out promptly upon allotment, and the basis of the allotment will be publicly announced.*+
251.4 Payment. Payment at par and accrued interest, if any, for notes allocated on cash subscriptions must be made or completed on or before May 2, 1938, or on later allotment. In every case where payment is not so completed, the payment with application up to 10 percent of the amount of notes applied for shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited
**For statutory and source citations, see note to § 251.1.
to the United States. Series B Collateral Trust Notes of the Commodity Credit Corporation, maturing May 2, 1938, will be accepted at par in payment for any notes subscribed for and allotted and should accompany the subscription.*†
251.5 General powers of Federal Reserve banks. (a) As fiscal agents of the United States, Federal Reserve banks are authorized and requested to receive subscriptions, to make allotments on the basis and up to the amounts indicated by the Secretary of the Treasury to the Federal Reserve banks of the respective districts, to issue allotment notices, to receive payment for notes allotted, to make delivery of notes on full-paid subscriptions allotted, and they may issue interim receipts pending delivery of the definitive notes.
(b) The Secretary of the Treasury may at any time, or from time to time, prescribe supplemental or amendatory rules and regulations governing the offering, which will be communicated promptly to the Federal Reserve banks.**
**For statutory and source citations, see note to § 251.1.
Adequate living standards for rural rehabilitation clients in relation to sound farm management plans, Farm Security Administration. June 20, 1936. (A.O. 173) Collection of rural rehabilitation loans, Farm Security Administration. Mar. 18, 1937. (A.O. 178, rev. 1, and Supps.) Detailed procedure for entering into construction contracts, Farm Security Administration. June 16, 1937. (Adm. Instr. 127 and Supps.) Loans to occupants of rural resettlement type projects for operating capital, Farm Security Administration. Jan. 23, 1937. (A.O. 219 and Supps.) Medical examination for prospective occupants of rural resettlement type projects, Farm Security Administration. Sept. 21, 1936. (A.O. 157, rev. 1) Procedure for investigating and making grants to individuals for rural rehabilitation and relief in stricken agricultural areas, Farm Security Administration. Aug. 13, 1936. (Adm. Instr. 57, rev. 1, and Supps.) Procedure in making loans to individuals for rural rehabilitation, Farm Security Administration. Mar. 23, 1936. (Adm. Instr. 35, rev. 1, and Supps.) Sale and lease of land to resettlement clients, Farm Security Administration. June 4, 1938. (Adm. Instr. 141) Selection of families for resettlement projects, Farm Security Administration. Sept. 25, 1936. (A.O. 105, rev. 3) Tenant purchase procedure, Farm Security Administration. Jan. 22, 1938. (Adm. Instr. 137 and Supps.)
For list of abbreviations used in this chapter, see note to § 301.1.
The term "Farm Security Administration" has been substituted for the term "Resettlement Administration" throughout this chapter. See § 301.5.