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