Full text of Reconstruction Finance Corporation Act

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72d CONGRESS.

SESS. I.

CH. 8.

5

JANUARY 22, 1932.

[CHAPTER 8.]
AN ACT

January 22, 1932.

To provide emergency financing facilities for financial institutions, to aid in

[H. R. 7360.1

financing agriculture, commerce, and industry, and for other purposes.

[Public, No.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That there be,
and is hereby, created a body corporate with the name "Reconstruction Finance Corporation" (herein called the corporation).
That the principal office of the corporation shall be located in the
District of Columbia, but there may be established agencies or
branch offices in any city or cities of the United States under rules and

2.1

Reconstruction

Fi-

nance
ereated. Corporation
rra

Principal office and

br n ches-

regulations prescribed by the board of directors. This Act may be
cited as the " Reconstruction Finance Corporation Act."
SEC. 2. The corporation shall have capital stock of $500,000,000,

Citation of Act.
Capitalstock.

subscribed by the United States of America, payment for which
shall be subject to call in whole or in part by the board of directors
of the corporation.
There is hereby authorized to be appropriated, out of any money

Appropriation au-

in the Treasury not otherwise appropriated, the sum of $500,000,000, thPosp. 14.

for the purpose of making payments upon such subscription when

called: Provided, That $50,000,000 of the amount so subscribed, and
r
io.
or
the expansion of same through the notes, debentures, bonds, or other loans, etc., to farmers.

obligations as set out in section 9 shall be allocated and made avail-

able to the Secretary of Agriculture, which sum, or so much thereof

as may be necessary, shall be expended by the Secretary of Agriculture for the purpose of making loans or advances to farmers in
the several States of the United States in cases where he finds that
an emergency exists as a result of which farmers are unable to obtain
loans for crop production during the year 1932: Provided further,
That the Secretary of Agriculture shall give preference in making
such loans or advances to farmers who suffered from crop failures
in 1931. Such advances or loans shall be made upon such terms

Pot, PP. 9, 75 -

Preference where
failredues .
too

Terms, etc., to be

and conditions and subject to such regulations as the Secretary of prescribed.
Agriculture shall prescribe. A first lien on all crops growing, or Lienoncrops.
to be planted and grown, shall, in the discretion of the Secretary of

Agriculture, be deemed sufficient security for such loan or advance.
All such loans or advances shall be made through such agencies as agLnces: adethrough

the Secretary of Agriculture may designate, and in such amounts

as such agencies, with the approval of the Secretary of Agriculture,
may determine. Any person who shall knowingly make any material reresentaton.r

al

false representation for the purpose of obtaining an advance or loan,
or in assisting in obtaining such advance or loan under this section
shall, upon conviction thereof, be punished by a fine of not exceeding
$1,000 or by imprisonment not exceeding six months, or both.

Receipts for payments by the United States of America for or on
account of such stock shall be issued by the corporation to the Secre-

tary of the Treasury and shall be evidence of the stock ownership
of the United States of America.

SEC. 3. The management of the corporation shall be vested in a
board of directors consisting of the Secretary of the Treasury, or,
in his aosence, the Under Secretary of the Treasury, the governor
of the Federal Reserve Board, and the Farm Loan Commissioner,
who shall be members ex officio, and four other persons appointed
by the President of the United States, by and with the advice and
consent of the Senate. Of the seven members of the board of direc-

tors not more than four shall be members of any one political party
and not more than one shall be appointed from any one Federal
reserve district. Each director shall devote his time not otherwise
required by the business of the United States principally to the busi-

Receipts for stock
payments.

of corMembers ex officio.

Management
poration.
P

715

President,t.

by

Poutical afiations.
ReaS

Iction onv

6

72d CONGRESS.

Oath of office.

SESS. I.

CH. 8.

JANUARY 22, 1932.

ness of the corporation. Before entering upon his duties each of the
directors so appointed and each officer of the corporation shall take

an oath faithfully to discharge the duties of his office. Nothing conmFederalboardscom- tained in this or in any other Act shall be construed to prevent the
missions, etc.
appointment
Employment by corporation ofofficers,
etc.,

and compensation as an employee of the corporation of
any officer or employee of the United States in any board, commis-

Terms of dectrs sion, independent establishment, or executive department thereof.
by Presi- The terms of the directors appointed by the President of the United

appointed

dent.
When appointed to
f unexpirped termt

ever a vacancy shall occur among the directors so appointed, the
person appointed to fill such vacancy shall hold office for the unex-

salaries,

pired portion of the term of the director whose place he is selected

Restriction upon directornetqc, in detnffecia
ing personalinterest,

Corporate rights and

Loans and advances
byot, p. 71.
Terms

and

States shall be two years and run from the date of the enactment

hereof and until their successors are appointed and qualified. When-

condi-

to fill. The directors of the corporation appointed as hereinbefore

provided shall receive salaries at the rate of $10,000 per annum each.
No director, officer, attorney, agent, or employee of the corporation

shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his personal interests, or the interests of any corporation, partnership, or
association in which he is directly or indirectly interested.
SEC. 4. The corporation shall have succession for

of ten
years from the date of the enactment hereof, unless ait period
is sooner dissolved by an Act of Congress. It shall have power to adopt, alter,
and use a corporate seal; to make contracts; to lease such real estate
as may be necessary for the transaction of its business; to sue and
be sued, to complain and to defend, in any court of competent jurisdiction, State or Federal; to select, employ, and fix the compensation
of such officers, employees, attorneys, and agents as shall be necessary
for the transaction of the business of the corporation, without regard
to the provisions of other laws applicable to the employment and
compensation of officers or employees of the United States; to define
their authority and duties, require bonds of them and fix the penalties thereof, and to dismiss at pleasure such officers, employees,
attorneys, and agents; and to prescribe, amend, and repeal, by its
board of directors, by-laws, rules, and regulations governing the
manner in which its general business may be conducted and the
powers granted to it by law may be exercised and enjoyed, including
the selection of its chairman and vice chairman, together with provision for such committees and the functions thereof as the board
of directors may deem necessary for facilitating its business under
this Act. The board of directors of the corporation shall determine
and prescribe the manner in which its obligations shall be incurred
and its expenses allowed and paid. The corporation shall be entitled
to the free use of the United States mails in the same manner as the
executive departments of the Government. The corporation, with
the consent of any board, commission, independent establishment, or
executive department of the Government, including any field service
thereof, may avail itself of the use of information, services, facilities
officers, and employees thereof in carrying out the provisions of
this Act.
SEC. 5. To aid in financing agriculture, commerce, and industry,
including facilitating the exportation of agricultural and other products the corporation is authorized and empowered to make loans,
upon such terms and conditions not inconsistent with this Act as
it may determine, to any bank, savings bank, trust company, building and loan association, insurance company, mortgage loan company, credit union, Federal land bank, joint-stock land bank,
Federal intermediate credit bank, agricultural credit corporation,
livestock credit corporation, organized under the laws of any State

72d CONGRESS.

SESS. I.

CH. 8.

7

JANUARY 22, 1932.

or of the United States, including loans secured by the assets of any

When

secured

by

bank that is closed, or in process of liquidation to aid in the reor- banks.
'
ganization or liquidation of such banks, upon application of the
receiver or liquidating agent of such bank and any receiver of any
national bank is hereby authorized to contract for such loans and Contracts for.
i o.
to pledge any assets of the bank for securing the same: Provided, P ovis
Restriction on total
That not more than $200,000,000 shall be used for the relief of banks amount
to closed, etc..
that are closed or in the process of liquidation.

All loans made under the foregoing provisions shall be fully and
adequately secured.

banks.

Security required.

The corporation, under such conditions as it ofAdllatratio"cpte

shall prescribe, may take over or provide for the administration and as.
liquidation of any collateral accepted by it as security for such
loans. Such loans may be made directly upon promissory notes
or by way of discount or rediscount of obligations tendered for the
purpose, or otherwise in such form and in such amount and at such
interest or discount rates as the corporation may approve: Provided, Poi
Foreignsesecurity o
or
That no loans or advances shall be made upon foreign securities or acceptances as collatforeign acceptances as collateral or for the purpose of assisting in the eral barred.

carryingor liquidation of such foreign securities and foreign acceptances. In no case shall the aggregate amount of advances made advances
Aggrgteamount
o
to a corporaunder this section to any one corporation and its subsidiary or affili- tion, etc., limited.
ated organizations exceed at any one time 5 per centum of (1) the

authorized capital stock of the Reconstruction Finance Corporation
plus (2) the aggregate amount of bonds of the corporation authorized
to be outstanding when the capital stock is fully subscribed.
Each such loan may be made for a period not exceeding three
years, and the corporation may from time to time extend the time
of payment of any such loan, through renewal, substitution of new

POs" p. 714.

Per

of loan.

aunited

renewals

obligations, or otherwise, but the time for such payment shall not
be extended beyond five years from the date upon which such loan Restriction on loans
was made originally. Except as provided in section 5a hereof, to any enterprise not
no loan or advancement shall be made by the corporation for the heretofore initiated.
71
purpose of initiating, setting on foot, or financing any enterprise

not initiated, set on foot, or undertaken prior to the adoption of this
Act: Provided, That the foregoing limitation shall not apply to
loans made to agricultural or livestock credit corporations, or Federal land banks, joint-stock land banks, or Federal intermediate
credit banks, nor to loans made to banks for the purpose of financing

Exceptions.

agricultural operations. The corporation may make loans under ILons' ywithin which
this section at any time prior to the expiration of one year from the
may be made.
date of the enactment hereof; and the President may from time dexteuttizes Presi.

to time postpone such date of expiration for such additional period or
periods as he may deem necessary, not to exceed two years from the
date of the enactment hereof. Within the foregoing limitations upon approval
to railroads
of Interof this section, the corporation may also, upon the approval of the state Commerce ComInterstate Commerce Commission, make loans to aid in the tem- misson.
porary financing of railroads and railways engaged in interstate
commerce, to railroads and railways in process of construction,
and to receivers of such railroads and railways, when in the opinion of the board of directors of the corporation such railroads or
railways are unable to obtain funds upon reasonable terms through
banking channels or from the general public and the corporation
will be adequately secured: Provided, That no fee or commission Payment offee,etc,
shall be paid by any applicant for a loan under the provisions hereof for loan prohibited.
in connection with any such application or any loan made or to be
made hereunder, and the agreement to pay or payment of any such uAement to pay,
fee or commission shall be unlawful. Any such railroad may obligate itself in such form as shall be prescribed and otherwise comply

with the requirements of the Interstate Commerce Commission and

etebysrta'of't

8

72d CONGRESS.

SESS. I.

CH. 8.

JANUARY 22, 1932.

the corporation with respect to the deposit or assignment of security
hereunder, without the authorization or approval of any authority,
State or Federal, and without compliance with any requirement,

Notification.

Authorization to ceept drafts when involving exportation of
products sol abroad.

actions involving the exportation of agricultural or other products

actually sold or transported for sale subsequent to the enactment
hereof and in process of shipment to buyers in foreign countries:

f Provided That the corporation shall not make any such acceptances
etc., growing out of transactions involving the sale or shipment of arma-

Sale orshipment
munitions of war,

State or Federal, as to notification, other than such as may be
imposed by the Interstate Commerce Commission and the corporation under the provisions of this section.
SEC. 5a. The corporation is authorized and empowered to accept
drafts and bills of exchange drawn upon it which grow out of trans-

ments, munitions, or other war materials, or the sale or shipment into
countries which are at war of any merchandise or commodities
Maturity date of
except food and supplies for the actual use of noncombatants. No
ceptable drafts, etc.
bill of exchange or draft shall be eligible for acceptance if such bill
shall have at time of acceptance a maturity of more than twelve
Tenmsofdrafts, etc. months. All drafts and bills of exchange accepted
under this section shall be in terms payable in the United States, in currency of
the United States, and in addition to the draft or bill of exchange
To be fully secred shall at all times be fully secured by American securities deposited
yAmecanse
es. as collateral or shall be guaranteed by a bank or trust company of
undoubted solvency organized under the laws of the United States
or any State, Territory, or insular possession thereof: Provided,
Foreign
stored etc., That such securities shall not include goods stored or in process of
goods
as security.
shipment in foreign countries or the obligation of any foreign government, corporation, firm, or person.
SEC. 6. Section 5202 of the Revised Statutes of the United States,
5 2 02
o. I., se.
,
as amended, is hereby amended by striking out the words "War
excluded.

1006,amnded.

Finance Corporation Act" and inserting in lieu thereof the words
"Reconstruction Finance Corporation Act."
Deposit of corporate
SEC. 7. All moneys of the corporation not otherwise employed may
moneys
be deposited with the Treasurer of the United States subject to check
Redemptionofnotes, by authority of the corporation or in any Federal reserve bank, or
etc., authorized.
may, by authorization of the board of directors of the corporation,
S.
.

be used in the purchase for redemption and retirement of any notes,
debentures, bonds, or other obligations issued by the corporation, and
the corporation may reimburse such Federal reserve bank for their
Federalreservebanks services in the manner as may be agreed upon.
The Federal reserve
etc. as deo
banks are authorized and directed to act as depositaries, custodians,
and fiscal agents for the Reconstruction Finance Corporation in the
the xE general
performance of its powers conferred by this Act.
Reports,recordet.,
S a 8. In order to enable the corporation to carry out the protin.ble to coo- visions of this Act, the Treasury Department, the Federal Farm
Loan
Pots,P. 714.
Board, the Comptroller of the Currency, the Federal Reserve Board,
the Federal reserve banks, and the Interstate Commerce Commission
are hereby authorized, under such conditions as they may prescribe,
to make available to the corporation, in confidence, such reports,
records, or other information as they may have available relating
to the condition of financial institutions and railroads or railways
with respect to which the corporation has had or contemplates having
transactions under this Act, or relating to individuals, associations,
partnerships, or corporations whose obligations are offered to or held
Examination of - by the corporation as security for loans to financial institutions or
etc.

i

tis,

railroads or railways under this Act, and to make through their

examiners or other employees for the confidential use of the corporation, examinations of such financial institutions or railroads and
So in original.

72d CONGRESS.

SESS. I.

CH. 8.

JANUARY 22, 1932.

9

railways. Every applicant for a loan under this Act shall, as a condition precedent thereto, consent to such examinations as the corporation may require for the purposes of this Act and that reports of
examinations by constituted authorities may be furnished by such
authorities to the corporation upon request therefor.

SEC. 9. The corporation is authorized and empowered, with the

condition prece

As

to loan

ower

approval of the Secretary of the Treasury, to issue, and to have out- tions.
standing at any one time in an amount aggregating not more than
three times its subscribed capital, its notes, debentures, bonds, or

other such obligations; such obligations to mature not more than five
years from their respective dates of issue, to be redeemable at the

of corpora-

Maturity date and

thereof.

redemption

option of the corporation before maturity in such manner as may be
stipulated in such obligations, and to bear such rate or rates of inter- Interest rate.
est as may be determined by the corporation: Provided, That the o""o.
Sale of short-term
corporation, with the approval of the Secretary of the Treasury, may obligations.
sell on a discount basis short-term obligations payable at maturity
without interest.

The notes, debentures, bonds, and other obligations

Security for obliga-

vided, That the aggregate of all obligations issued under this section

Restriction on aggre-

of the corporation may be secured by assets of the corporation in tion' etc. of corpora
such manner as shall be prescribed by its board of directors: Pro-

shall not exceed three times the amount of the subscribed capital tions.n of obligastock.

Such obligations may be issued in payment of any loan

authorized by this Act or may be offered for sale at such price or
prices as the corporation may determine with the approval of the

asis forissueofobli-

at o

uncondition.
Secretary of the Treasury. The said obligations shall be fully and allyTo be
guaranteed
by
unconditionally guaranteed both as to interest and principal by the United States.
United States and such guaranty shall be expressed on the face
thereof. In the event that the corporation shall be unable to pay taryof e Treasuryif
upon demand, when due, the principal of or interest on notes, deben- corporation unable to

tures, bonds, or other such obligations issued by it, the Secretary of meet de obli ations.
the Treasury shall pay the amount thereof, which is hereby authorized to be appropriated, out of any moneys in the Treasury not other- thodrPiation a
wise appropriated, and thereupon to the extent of the amounts so
paid the Secretary of the Treasury shall succeed to all the rights of

the holders of such notes, debentures, bonds, or other obligations. The tins bySecretary
o
Secretary of the Treasury, in his discretion, is authorized to purchase the Treasury.

any obligations of the corporation to be issued hereunder, and for such
purpose the Secretary of the Treasury is authorized to use as a public-

debt transaction the proceeds from the sale of any securities here- salesfec^lroitiedsfr
after issued under the Second Liberty Bond Act, as amended, and the u""dler Seco(nl I.berty
Act, authorized.
purposes for which securities may be issued under the Second Liberty Bond
vol. 40p,. 2r.
Bond Act, as amended, are extended to include any purchases of the u. S., " 1026.
corporation's obligations hereunder. The Secretary of the Treasury poratonobligatios

may, at any time, sell any of the obligations of the corporation

acquired by him under this section. All redemptions, purchases, apublic-debt tratnsand sales by the Secretary of the Treasury of the obligations of the actions.

corporation shall be treated as public-debt transactions of the United
or d s
States. Such obligations shall not be eligible for discount or pur- count, et c
chase by any Federal reserve bank.
Exemption of obligaSEC. 10. Any and all notes, debentures, bonds, or other such obli- tionsfrom
taxation.
gations issued by the corporation shall be exempt both as to principal
and interest from all taxation (except surtaxes, estate, inheritance, Exception.
and gift taxes) now or hereafter imposed by the United States, by
any Territory, dependency, or possession thereof, or by any State,
county, municipality, or local taxing authority. The corporation,
including its franchise, its capital, reserves, and surplus, and its

income shall be exempt from all taxation now or hereafter imposed
by the United States, by any Territory, dependency, or possession
thereof, or by any State, county, municipality, or local taxing

Eemption

poration,

of

including

franchises, etc.

72d CONGRESS.

10
RealP
property

Preparation
forms.

ex-

fdeben-

SESS. I.

CH. 8.

JANUARY 22, 1932.

authority; except that any real property of the corporation shall
be subject to State, Territorial, county, municipal, or local taxation

to the same extent according to its value as other real property is
taxed.
SEC. 11. In order that the corporation may be supplied with such

forms of notes, debentures, bonds, or other such obligations as it
may need for issuance under this Act, the Secretary of the Treasury
is authorized to prepare such forms as shall be suitable and approved
by the corporation, to be held in the Treasury subject to delivery,
Custodyofengraved upon order of the corporation. The engraved plates, dies, bed
plates, etc.
-ic ji
1 in. connection i
, pieces, and so forth, cexecuted
expbensement

therewith shall remain
for in the custody of the Secretary of the Treasury. The corporation
shall reimburse the Secretary of the Treasury for any expenses

incurred in the preparation, custody and delivery of such notes,
debentures, bonds, or other obligations.
as de-

orporation

money.
As financialagent

orate

obliga-

tions as investments.

byLiidation

of ssets

by Directors npon ex-

piration of loan

period

or extensions.

SEC. 12. When designated for that purpose by the Secretary of
the Treasury, the corporation shall be a depositary of public money,

except receipts from customs, under such regulations as may be
prescribed by said Secretary; and it may also be employed as a
financial agent of the Government; and it shall perform all such
reasonable duties, as depositary of public money and financial agent
of the Government, as may be required of it. Obligations of the

corporation shall be lawful investments, 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.
SEC. 13. Upon the expiration of the period of one year within

which the corporation may make loans, or of any extension thereof
by the President under the authority of this Act, the board of directors of the corporation shall, except as otherwise herein specifically
authorized, proceed to liquidate its assets and wind up its affairs.

Dpaest of funds fonrIt may with the approval of the Secretary of the Treasury deposit

with the Treasurer of the United States as a special fund any money
belonging to the corporation or from time to time received by it in
the course of liquidation or otherwise, for the payment of principal
and interest of its outstanding obligations or for the purpose of
redemption of such obligations in accordance with the terms thereof,

funds.t

D

of

etireament of cor.

which fund may be drawn upon or paid out for no other purpose.

The corporation may also at any time pay to the Treasurer of the
United States as miscellaneous receipts any money belonging to the
corporation or from time to time received by it in the course of
liquidation or otherwise in excess of reasonable amounts reserved

to meet its requirements during liquidations.

Upon such deposit

being made, such amount of the capital stock of the corporation as
may be specified by the corporation with the approval of the Secretary of the Treasury but not exceeding in par value the amount so
inasto paid in shall be canceled and retired. Any balance remaining after
eousreceipts.
the liquidation of all the corporation's assets and after provision has

Treasuary

been made for payment of all legal obligations of any kind and char-

issolution of cor- acter shall be paid into the Treasury of the United States as miscelporation and retire- laneous receipts. Thereupon the corporation shall be dissolved and
metof residue'fe
a
the residue, if any, of its capital stock shall be canceled and retired.
r uty of liquidation
SEC. 14. If at the expiration of the ten years for which the cortransferredto Secretary
of the Treasury after poration has successsion hereunder its board of directors shall not
expiration

of corporate have completed the liquidation of its assets and the winding up of its

affairs, the duty of completing such liquidation and winding up
of its affairs shall be transferred to the Secretary of the Treasury,
who for such purpose shall succeed to all the powers and duties of
the board of directors of the corporation under this Act. In such

72d CONGRESS.

SESS. I.

CH. 8. JANUARY 22, 1932.

11

event he may assign to any officer or officers of the United States
in the Treasury Department the exercise and performance, under
his general supervision and direction, of any such powers and

Assignment of

pow-

ersandduties.

duties; and nothing herein shall be construed to affect any right
or privilege accrued, any penalty or liability incurred, any criminal

Accrued rights, lia-

bilities incurred
affected.

or civil proceeding commenced, or any authority conferred hereunder, except as herein provided in connection with the liquidation
of the remaining assets and the winding up of the affairs of the
corporation, until the Secretary of the Treasury shall find that such

Retirement

not

of out-

when
liquidation will no longer be advantageous to the United States and advtageou.
ger
that all of its legal obligations have been provided for, whereupon Payment of unused
he shall retire any capital stock then outstanding, pay into the balance intoTreasury.
standing stock
liquidation

Treasury as miscellaneous receipts the unused balance of the moneys

no longer

ReportCongress

belonging to the corporation, and make the final report of the cor-

eport to cluon

poration to the Congress. Thereupon the corporation shall be Faldiolution.
deemed to be dissolved.
SEC. 15. The corporation shall make and publish a report quarterly coQtrlY report to
of its operations to the Congress stating the aggregate loans made
to each of the classes of borrowers provided for and the number of
borrowers by States in each class. The statement shall show the Statementtherein.
assets and liabilities of the corporation, and the first report shall
be made on April 1, 1932, and quarterly thereafter. It shall also portSnnel salay re
show the names and compensation of all persons employed by the
corporation whose compensation exceeds $400 a month.
SEC. 16. (a) Whoever makes any statement knowing it to be false, Penalty provsions.
or whoever willfully overvalues any security, for the purpose of overvaluation
of se-

obtaining for himself or for any applicant any loan, or extension
thereof by renewal, deferment of action, or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose
of influencing in any way the action of the corporation, or for the
purpose of obtaining money, property, or anything of value, under
this Act, shall be punished by a fine of not more than $5,000 or by
imprisonment for not more than two years, or both.
(b) Whoever (1) falsely makes, forges, or counterfeits any note,
debenture, bond, or other obligation, or coupon, in imitation of or

curity.

porntereiting

purporting to be a note, debenture, bond, or other obligation, or Paing
coupon, issued by the corporation, or (2) passes, utters or publishes, in to
pass,

or attempts to pass, utter or publish, any false, forged or counterfeited terfeits.
note, debenture, bond, or other obligation, or coupon, purporting to
have been issued by the corporation, knowing the same to be false, Altrrate
forged or counterfeited, or (3) falsely alters any note, debenture,
bond, or other obligation, or coupon, issued or purporting to have
been issued by the corporation, or (4) passes, utters or publishes, or

cor-

attempt
etc., coun-

petc.

notes,

Paing or attempt

ingtopass etc.,ated

attempts to pass, utter or publish, as true any falsely altered or notesetc.
spurious note, debenture, bond, or other obligation, or coupon, issued
or purporting to have been issued by the corporation, knowing the
same to be falsely altered or spurious, or any person who willfully
violates any other provision of this Act, shall be punished by a fine
of not more than $10,000 or by imprisonment for not more than
five years, or both.
(c) Whoever, being connected in any capacity with the corpora- ratefumb

tion, (1) embezzles, abstracts, purloins, or willfully misapplies any
moneys, funds, securities, or other things of value, whether belonging
to it or pledged or otherwise entrusted to it, or (2) with intent to

et

defraud the corporation or any other body politic or corporate, or to defraud.

any individual, or to deceive any officer, auditor, or examiner of the
corporation, makes any false entry in any book, report, or statement
of or to the corporation, or, without being duly authorized, draws
any order or issues, puts forth or assigns any note, debenture, bond,

etc.

wit

intent

12

72d CONGRESS.

Receiving benefit
through loan, etc., with

mtenttodefraud.

SESS. I.

CHS. 8,9. JANUARY 22,23, 1932.

or other obligation, or draft, bill of exchange, mortgage, judgment,
or decree thereof, or (3) with intent to defraud participates, shares,
receives directly or indirectly any money, profit, property or benefit
through any transaction, loan, commission, contract, or any other

rivingnauthorized act of the corporation, or (4) gives any unauthorized information

cluive useof cor -

concerning any future action or plan of the corporation which might
affect the value of securities, or, having such knowledge, invests or
speculates, directly or indirectly, in the securities or property of any
company, bank, or corporation receiving loans or other assistance
from the corporation, shall be punished by a fine of not more than
$10,000 or by imprisonment for not more than five years, or both.
(d)

No individual, association, partnership, or corporation shall

use the words " Reconstruction Finance Corporation " or a combination of these three words, as the name or a part thereof under which

las hment for vio- he or it shall do business.

Vl.35,pp. 110, I09.

'isonseltended hereto.
Applicable

Every individual, partnership, associa-

tion, or corporation violating this prohibition shall be guilty of a
misdemeanor and shall be punished by a fine of not exceeding $1,000
or imprisonment not exceeding one year, or both.
(e) The provisions of sections 112, 114,
3, 1
11
6,
117and
of
the Criminal Code of the United States (U. S. C., title 18, ch. 5,
icuve
applicable
sees. 202 to 207, inclusive) in so far as applicable,
are extended to

apply to contracts or agreements with the corporation under this
Act, which for the purposes hereof shall be held to include loans,
advances, discounts, and rediscounts; extensions and renewals
thereof; and acceptances, releases, and substitutions of security
therefor.
reserved.toaend et
SEC. 17. The right to alter, amend, or repeal this Act is hereby
SepaSrabiit of pro- expressly reserved. If any clause, sentence, paragraph, or part of
this Act shall for any reason be adjudged by any court of competent

jurisdiction to be invalid, such judgment shall not affect, impair,
or invalidate the remainder of this Act, but shall be confined in its
operation to the clause, sentence, paragraph, or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.
Approved, January 22, 1932.
[CHAPTER 9.]
January 23, 1932.

-[ifI. 6172.1
[Public, No. S.]

AN ACT

To amend the Federal Farm Loan Act, as asmended, to provide for additional
capital for Federal land banks, and for other purposes.
- Be it enacted

by the Senate and House of RepresentativeC of the

Federal Farm Loan United AState8 of ALnme)ica in Congress asse'mbled, That section 5 of
At,
endent.
the Federal Farm Loan Act, as amended (U. S. C., title 12, ch. 7,

U.s. c.,p.s02.

sees. 691-697), is amended by inserting after the word " subscribed "

Retirement of orig. in the sixth paragraph thereof the words " by national farm loan
inalstockbysubscripi associations, by borrowers through agencies, and by borrowers
through branch banks ".

SeC. 2. Section 5 of the Federal Farm Loan Act, as amended
vol39 . 36,
. .
Post, pa. 3

u"pon
orcap

(U. S. C., title 12, ch. 7, secs. 691-697), is further amended by adding
at the end thereof a new paragraph as follows:

It shall be the duty of the Secretary of the Treasury on behalf

tal stock by United of the United States, upon the request of the board of directors of

States.

all provision.

any Federal land bank made with the approval of the Federal Farm
Loan Board, to subscribe from time to time for capital stock of such
bank in an amount or amounts specified in such approval or
approvals, such subscriptions to be subject to call in whole or in part
by the board of directors of said bank upon thirty days' notice with