SUBPART I. GENERAL FISCAL STATUTES

ACT OF MARCH 8, 1938,1 AS AMENDED

AN ACT

To maintain unimpaired, the capital of the Commodity Credit Corporation at $100,000,000, and for other purposes.

To authorize annual appropriation to reimburse Commodity Credit Corporation for net realized losses sustained during any fiscal year in lieu of annual appropriations to restore capital impairment based on annual Treasury appraisals, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That sections 1 and 2 of the Act of March 8, 1938, as amended (15 U.S.C. 713a−1, 2), are hereby repealed.

SEC. 2. There is hereby authorized to be appropriated annually for each fiscal year, commencing with the fiscal year ending June 30, 1961, out of any money in the Treasury not otherwise appropriated, an amount sufficient to reimburse Commodity Credit Corporation for its net realized loss incurred during such fiscal year, as reflected in its accounts and shown in its report of its financial condition as of the close of such fiscal year. Reimbursement of net realized loss shall be with appropriated funds, as provided herein, rather than through the cancellation of notes. (15 U.S.C. 713a-11.)

SEC. 3. In the event the accounts of the Commodity Credit Corporation reflect a net realized gain for any such fiscal year, the amount of such net realized gain shall be deposited in the Treasury by the Commodity Credit Corporation and shall be credited to miscellaneous receipts. (15 U.S.C. 713a-12.)

SEC. 3. [This section provided for the transfer of stock of the Delaware corporation to the United States.]

BORROWING POWER

SEC. 4. With the approval of the Secretary of the Treasury, the Commodity Credit Corporation is authorized to issue and have out

152 Stat. 107, 15 U.S.C. 713a-1, et seq.

Sections 1 and 2 repealed by 75 Stat. 391, August 17, 1961.

75 Stat. 391, August 17, 1961.

standing at any one time, bonds, notes, debentures, and other similar obligations in an aggregate amount not exceeding $14,500,000,000.* Such obligations shall be in such forms and denominations, shall have such maturities, shall bear such rates of interest, shall be subject to such terms and conditions, and shall be issued in such manner and sold at such prices as may be prescribed by the Commodity Credit Corporation, with the approval of the Secretary of the Treasury. Such obligations shall be fully and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall be expressed on the face thereof, and such obligations 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. In the event that 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. The Secretary of the Treasury, in his discretion, is authorized to purchase any obligations of the Commodity Credit Corporation 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 hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of the Commodity Credit Corporation's obligations hereunder. The Secretary of the Treasury may at any time sell any of the obligations of the Commodity Credit Corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of the obligations of the Commodity Credit Corporation shall be treated as public-debt transactions of the United States. No such obligations shall be issued in excess of the assets of the Commodity Credit Corporation, including the assets to be obtained from the proceeds of such obligations, but a failure to comply with this provision shall not invalidate the obligations or the guaranty of the same: Provided, That this sentence shall not limit the authority of the Corporation to issue obligations for the purpose of carrying out its annual budget programs submitted to and approved by the Congress pursuant to the Government Corporation Control Act (31 U.S.C., 1946 edition, sec. 841). The Commodity Credit Corporation shall have power to purchase such obligations in the open market at any time and at any price. (15 U.S.C. 713a-4.)

This amount has been increased a number of times and was increased from $12,000,000,000 by the Act of August 1, 1956, 70 Stat. 783. See also section 4(i) of the Commodity Credit Corporation Charter Act (p. 155) and the Government Corporation Control Act (31 U.S.C. 841).

Proviso added by section 410 of the Agricultural Act of 1949, 63 Stat. 1057.

INTEREST

[Department of Agriculture Appropriation Act, 1966-*

**

To partially reimburse the Commodity Credit Corporation for net realized losses sustained but not previously reimbursed, pursuant to the Act of August 17, 1961 (15 U.S.C. 713a–11, 713a-12), $2,800,000,000: Provided, That after June 30, 1964, the portion of borrowings from Treasury equal to the unreimbursed realized losses recorded on the books of the Corporation after June 30 of the fiscal year in which such losses are realized, shall not bear interest and interest shall not be accrued or paid thereon. (November 2, 1965, 79 Stat. 1178.)]

TAXATION

SEC. 5. Bonds, notes, debentures, and other similar obligations issued by the Commodity Credit Corporation under the provisions of this Act 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). The Commodity Credit 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 authority; except that any real property of the Commodity Credit 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. (15 U.S.C. 713a-5.) *

FEDERAL RESERVE BANKS AS FISCAL AGENTS

Act of July 16, 1943-SEC. 3. The Federal Reserve Banks are hereby authorized to act as depositories, custodians, and fiscal agents for the Commodity Credit Corporation. (57 Stat. 566; 12 U.S.C. 395.)

ADMINISTRATIVE EXPENSE LIMITATIONS

[See the Commodity Credit Corporation item in the AgricultureEnvironmental and Consumer Protection Programs Appropriation Act, 1973, 86 Stat. 591, approved August 22, 1972, and the similar items in previous appropriation acts. Section 104 of the Government Corporation Control Act (approved Dec. 6, 1945, 59 Stat. 597; 31 U.S.C. 841) provides for enactment of necessary appropriations making available corporate funds of each wholly owned Government corporation for administrative expenses or limiting the use thereof.]

See Act of February 19, 1941, 55 Stat. 7, 9, as amended March 28, 1942, 56 Stat. 189, 190, 31 U.S.C. section 742a, abolishing tax exemption for income from obligations issued or guaranteed by the United States or any agency or instrumentality thereof.

REIMBURSEMENT BY OTHER AGENCIES

Act of July 16, 1943-SEC. 4. Full reimbursement shall be made. to the Commodity Credit Corporation for services performed, losses sustained, operating costs incurred, or commodities purchased or delivered to or on behalf of the Lend-Lease Administration, the Army or Navy, the Board of Economic Warfare, the Reconstruction Finance Corporation, or any other Government agency, from the appropriate funds of these agencies. (57 Stat. 566; 15 U.S.Č. 713a-9.)

CROP INSURANCE AND CONSERVATION MATERIALS

The Agricultural Adjustment Act of 1938-SEC. 391 (c).

(c) During each fiscal year, beginning with the fiscal year ending June 30, 1941, the Commodity Credit Corporation is authorized and directed to loan to the Secretary such sums, not to exceed $50,000,000, as he estimates will be required during such fiscal year, to make crop insurance premium advances and to make advances pursuant to the applicable provisions of sections 8 and 12 of the Soil Conservation and Domestic Allotment Act, as amended, in connection with programs applicable to crops harvested in the calendar year in which such fiscal year ends, and to pay the administrative expenses of county agricultural conservation associations for the calendar year in which such fiscal year ends. The sums so loaned during any fiscal year shall be transferred to the current appropriation available for carrying out sections 7 to 17 of such Act and shall be repaid, with interest at a rate to be determined by the Secretary but not less than the cost of money to the Commodity Credit Corporation for a comparable period, during the succeeding fiscal year from the appropriation available for that year or from any unobligated balance of the appropriation for any other year. (7 U.S.C. 1931 (c).)

COST OF CLASSING OR GRADING

Department of Agriculture Appropriation Act, 1950-*** On and after June 29, 1949, appropriations available for classing or grading any agricultural commodity without charge to the producers thereof may be reimbursed from nonadministrative funds of the Commodity Credit Corporation for the cost of classing or grading any such commodity for producers who obtain Commodity Credit Corporation price support. (June 29, 1949, 63 Stat. 324, 344, 7 U.S.C. 440.)

Department of Agriculture Appropriation Act, 1952-*** Hereafter there may be transferred to appropriations available for classing or grading any agricultural commodity without charge to the producers thereof such sums from nonadministrative funds of the Commodity Credit Corporation as may be necessary in addition to other funds available for these purposes, such transfers to be reimbursed from subsequent appropriations therefor. (Aug. 31, 1951, 65 Stat. 225, 239; 7 U.S.C. 414a.)

EMERGENCY CREDIT REVOLVING FUND

JOINT RESOLUTION'

To authorize the temporary funding of the Emergency Credit Revolving Fund.

Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That the Commodity Credit Corporation is hereby authorized and directed to make advances to the Emergency Credit Revolving Fund (7 U.S.C. 1966) in a total amount not to exceed $30,000,000. Such advances together with interest at a rate which will compensate Commodity Credit Corporation for its cost of money during the period in which the advance was outstanding shall be reimbursed out of appropriations to the fund hereafter made.

782 Stat. 169, approved June 4, 1968.