(a) The functions of the Secretary of Agriculture as a member of the Federal Farm Board, and the offices of the appointed members of the Federal Farm Board, except the office of the member designated as chairman thereof, are abolished.

(b) The name of the Federal Farm Board is changed to the Farm Credit Administration.

(c) The name of the office of Chairman of the Federal Farm Board is changed to Governor of the Farm Credit Administration, and he is vested with all the powers and duties of the Federal Farm Board.

(d) The functions of the Secretary of the Treasury as a member of the Federal Farm Loan Board, and the offices of the appointed members of the Federal Farm Loan Board, except the office of the member designated as Farm Loan Commissioner, are abolished, and all the powers and functions of the Federal Farm Loan Board are transferred to and vested in the Farm Loan Commissioner, subject to the jurisdiction and control of the Farm Credit Administration as herein provided.

(e) There are transferred to the jurisdiction and control of the Farm Credit Administration:

(1) The Federal Farm Loan Bureau and the functions thereof; together with the functions of the Federal Farm Loan Board, including the functions of the Farm Loan Commissioner;

(2) The functions of the Treasury Department and the Department of Agriculture, and the Secretaries thereof, under Executive authorizations to give aid to farmers, dated July 26, 1918, and any extensions or amendments thereof;

(3) The functions of the Secretary of Agriculture under all provisions of law relating to the making of advances or loans to farmers, fruit growers, producers and owners of livestock and crops, and to individuals for the purpose of assisting in forming or increasing the capital stock of agricultural-credit corporations, livestock-loan companies, or like organizations, except Public Resolution No. 74, Seventieth Congress, approved December 21, 1928 (45 Stat. 1067), providing for the Puerto Rican Hurricane Relief Commission;

(4) The Crop Production Loan Office and the Seed Loan Office of the Department of Agriculture, and the functions thereof;

(5) The functions of the Reconstruction Finance Corporation and its Board of Directors relating to the appointment of officers and agents to manage regional agricultural credit corporations formed under section 201 (e) of the Emergency Relief and Construction Act of 1932 (47 Stat. 713; 12 U. S. C. 1148); relating to the establishment of rules and regulations for such management; and relating to the approval of loans and advances made by such corporations and of the terms and conditions thereof.

(f) The functions vested in the Federal Farm Board by section 9 of the Agricultural Marketing Act (46 Stat. 15; 12 U. S. C. 1141g) are abolished, except that such functions shall continue to be exercised to such extent and for such time as may be necessary to permit the orderly winding up of the activities of stabilization corporations heretofore recognized under authority of such section, and the government of the Farm Credit Administration shall take appropriate action for winding up at the earliest practicable date the activities of such corporations and all affairs related to the exercise of such functions.

(g) The records, property (including office equipment), and personnel used and employed in the execution of the functions hereinbefore transferred are transferred to the jurisdiction and control of the Farm Credit Administration.

(h) The sum of $2,000,000 of the unexpended balances of appropriations made to the Federal Farm Board by Public Resolutions No. 43 and No. 51 of the Seventy-second Congress (47 Stat. 741, 799) shall be impounded and returned to the Treasury, which sum shall be in addition to the other savings to be effected by the Farm Credit Administration as a result of this order.

(1) The unexpended balances of appropriations to the Secretary of Agriculture, the Federal Farm Loan Bureau, and the Federal Farm Board for salaries, expenses, and all other administrative expenditures in the execution of the functions herein vested in the Farm Credit Administration shall be transferred to and vested in the Farm Credit Administration as a single fund for its use for salaries, expenses, and all other administrative expenditures for the execution of any or all of such functions without restriction as to the particular functions for the execution of which the same were originally appropriated. All other

appropriations, allotments, and other funds available for use in connection with the functions and executive agencies hereby transferred and consolidated are hereby transferred to and vested in the Farm Credit Administration, and shall be available for use by it, for the same purposes as if the Farm Credit Administration were named in the law or authority providing such appropriations, allotments, or other funds.

(j) All, power, authority, and duties conferred by law upon any officer, executive agency, or head thereof, from which or from whom transfer is hereinbefore made, in relation to the executive agency or function transferred, are transferred to and vested in the Governor of the Farm Credit Administration.

(k) The Governor of the Farm Credit Administration is directed to dismiss, furlough, transfer, or make other appropriate disposition of such of the officers and employees under his jurisdiction and control as are not required for the proper execution of the functions of the Farm Credit Administration.

(1) The Governor of the Farm Credit Administration is authorized to execute any and all functions and perform any and all duties vested in him through such persons as he shall by order designate or employ.

(m) The Governor of the Farm Credit Administration, by order or rules and regulations, may consolidate, regroup, and transfer offices, bureaus, activities, and functions in the Farm Credit Administration, so far as may be required to carry out the purposes to which this order is directed, and may fix or change the names of such offices, bureaus, and activities and the duties, powers, and titles of their executive heads.

This order shall take effect upon the sixty-first calendar day after its transmission to Congress unless otherwise determined in accordance with the provisions of section 407 of the Legislative Appropriation Act, fiscal year 1933, as amended. (Secs. 401, 403, 407, as amended by sec. 16, 47 Stat. 1517-1519, 48 Stat. 16; 5 U. S. C. and Sup., 124, 126, 130) [E. O. 6084, Mar. 27, 1933]

§1.2 Transfer of Division of Cooperative Marketing to Federal Farm Board.'

The Farm Credit Administration has succeeded to the functions of the Federal Farm Board See E. O. 6084, Mar. 27, 1933, 6 CFR 1.1.

The whole of the Division of Cooperative Marketing in the Bureau of Agricultural Economics of the Department of Agriculture, all functions pertaining to the work and services of such division, its records, property, including office equipment, personnel, and unexpended balances of appropriation, pertaining to such work or services is hereby transferred from the Department of Agriculture to the jurisdiction and control of the Federal Farm Board. The transfer above mentioned shall be effective from and including October 1st, 1929. (Sec. 13 (e), 46 Stat. 18; 12 U. S. C. 1141 h) [E. O. 5200, Oct. 1, 19291

§ 1.3 Allocation of funds to meet the necessity for relief in stricken agricultural areas. There is hereby allocated to the Director of Emergency Conservation Work for the establishment and maintenance of Civilian Conservation Corps camps, the sum of $12,500,000; to the Farm Credit Administration for making loans to farmers for seed, feed, freight, summer fallowing, and similar purposes, under such terms and conditions as the Governor thereof may prescribe, the sum of $25,000,000; to the Federal Emergency Relief Administration for making grants to States the sum of $56,250,000, and for the purpose of increasing employment through the purchase of lands in the stricken areas, the sum of $12,500,000; and to the Secretary of Agriculture or such agency as he may designate the sum of $43,750,000 for the purchase, sale, gift, or other disposition of seed, feed, and livestock, and for transportation thereof. (49 Stat. 115) [E. O. 6747, June 23, 1934]

§ 1.4 Allocation of funds to the Farm Credit Administration for the making of emergency crop loans. (a) There is set aside from funds provided by the Emergency Relief Appropriation Act of 1935 (49 Stat. 115) for the use of the Farm Credit Administration for the purpose of making loans to farmers during the year 1936, under limitation (b) in section 1 of the said act, in the United States, Hawaii, and Puerto Rico, for fallowing, for the production of crops, for planting, cultivating, and harvesting crops, for supplies incident to and necessary for such production, planting, cultivating, and harvesting, and for feed for livestock, or for any of such purposes, under such terms and conditions as the Governor of the Farm Credit Administration (herein

after referred to as the Governor) may prescribe, a sum not to exceed $30,000,000, of which the sum of $7,000,000 is hereby allocated to the said Administration to be supplemented from time to time by such additional allocations as may be necessary.

(b) The amount which may be lent to any one borrower shall not exceed $200, and each applicant for a loan shall establish to the satisfaction of the proper officer or employee of the Farm Credit Administration, under such conditions as the Governor may prescribe, that the applicant is unable to procure such loans from any other source: Provided, That preference shall be given to the applications of farmers whose cash requirements are small.

(c) Loans made under the provisions of this section shall be secured by a first lien, or by an agreement to give a first lien, upon all crops of which the production, planting, cultivating, or harvesting is to be financed, in whole or in part, with the proceeds of such loan, or, in case of any loan for the purchase or production of feed for livestock, a first lien upon the livestock to be fed. Such loans shall be made and collected under such regulations as the Governor shall prescribe, and shall bear interest at the rate of 52 per centum per annum.

(d) Fees for recording, filing, registration, and examination of records (including certificates) in connection with each loan made hereunder shall be paid by the borrower: Provided, however, That such fees aggregating not to exceed 75 cents per loan may be paid by him from the proceeds of his loan. No fees for releasing liens given to secure loans `shall be paid from the funds made available hereunder.

(e) The funds hereby or hereafter allocated may be used also for all necessary administrative expenses in carrying out the provisions of this section to and including June 30, 1937.

(f) In carrying out the provisions of this section, the Farm Credit Administration may (1) make expenditures for supplies and equipment, traveling expenses, rental of offices, printing and binding, and other necessary expenses, and (2) accept voluntary and uncompensated services, appoint officers and employees without regard to the provisions of the Civil Service laws and regulations, and fix the compensation of any officers

and employees so appointed without regard to the Classification Act of 1923 (42 Stat. 1488, as amended; 5 U. S. C. and Sup., 661-674). [E. O. 7305, Feb. 28, $1936]

PART 2- ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE FARM CREDIT ADMINISTRATION, WASHINGTON, D. C.

Sec.

2.1 2.2

Organization.

Functions and procedures.

AUTHORITY: §§ 2.1 and 2.2 issued under sec. 40, 48 Stat. 51; 12 U.S.C. 636.

SOURCE: §§ 2.1 and 2.2, contained in Codification, Governor, Apr. 25, 1947, 12 F.R. 2682.

§ 2.1 Organization. All functions and activities of the Farm Credit Administration are conducted under the general -supervision of the Secretary of Agriculture. The work of the Farm Credit Administration is directed by the Governor of the Farm Credit Administration, assisted by the Deputy Governors, and is performed by the four Commissioners named in sec. 80, 48 Stat. 273, 12 U. S. C. 638, and the several divisions of the Farm Credit Administration as follows:

(a) The Land Bank Commissioner, assisted by the personnel of the Land Bank Division, regulates and supervises the twelve Federal land banks, the national farm loan associations, and the joint stock land banks under 39 Stat. 360, as amended; 12 U. S. C., Chap 7, Subchap. I; and regulates and supervises the Federal Farm Mortgage Corporation in the discharge of its functions as disposal agency for surplus agricultural and forest real property under the Surplus Property Act of 1944 (58 Stat. 765, as amended; 50 U. S. C. App., Sup. 16111646).

(b) The Intermediate Credit Commissioner, assisted by the personnel of the Intermediate Credit Division, regulates and supervises the twelve Federal intermediate credit banks under 42 Stat. 1454, as amended; 12 U. S. C. Chap. 7, Subchap. III.

(c) The Production Credit Commissioner, assisted by the personnel of the Production Credit Division, regulates and supervises the twelve production credit corporations and the production credit associations under 48 Stat. 257, as amended; 48 Stat. 266, as amended; 12 U. S. C. Chap 7, Subchaps. IV and VI.

(d) The Cooperative Bank Commissioner, assisted by the personnel of the Cooperative Division, regulates and supervises the twelve district banks for cooperatives and the Central Bank for Cooperatives under 48 Stat. 257, as amended; 48 Stat. 266, as amended; 12 U. S. C. Chap. 7, Subchaps. V and VI. The Cooperative Bank Commissioner is ex officio the chairman of the board of directors of the Central Bank for Cooperatives and that Bank has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration.

(e) The Mortgage Corporation Service Division, headed by the Director of that Division who is also the Executive Vice President of the Federal Farm Mortgage Corporation, performs various functions for that Corporation which conducts its affairs under 48 Stat. 48, as amended; 48 Stat. 344, as amended; 12 U. S. C. and Sup., Chap. 7, Subchaps. II and II A. The Governor and the Land Bank Commissioner, together with the Secretary of the Treasury or an officer of the Treasury designated by him, are ex officio the directors of the Federal Farm Mortgage Corporation, and that Corporation has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration. The Land Bank Commissioner makes loans on behalf of the Federal Farm Mortgage Corporation under 48 Stat. 48, amended; 12 U.S.C. and Sup., Chap. 7, Subchap. II.

as

(f) The Regional Agricultural Credit Division, headed by the Director of that Division, regulates and supervises the Regional Agricultural Credit Corporation of Washington, D. C., under 47 Stat. 713, as amended; 12 U. S. C., Chap. 7, Subchap. VIII. The Regional Agricultural Credit Corporation of Washington, D. C., has its headquarters with the Farm Credit Administration in Washington, D. C., and utilizes the personnel and facilities of the Farm Credit Administration.

(g) The Revolving Fund Section, headed by the Director of the Revolving Fund, conducts the liquidation of loans made to cooperative associations out of the Revolving Fund created by the Agricultural Marketing Act (46 Stat. 11, as amended; 12 U. S. C. 1141-1141j), and

the liquidation of loans made to individuals to capitalize local agricultural credit corporations under 46 Stat. 1932, as amended by 46 Stat. 1160, and 47 Stat. 60, as amended; 12 U. S. C. 1401-1404.

(h) The Cooperative Research and Service Division, headed by the Director of that Division, gathers and disseminates information pertaining to cooperatives and promotes the organization and development of cooperative associations, under the Cooperative Marketing Act (44 Stat. 802; 7 U. S. C. 451-457) and the Agricultural Marketing Act (46 Stat. 11, as amended; 12 U. S. C. 1141–1141j).

(i) The Examination Division, headed by the Chief Examiner, conducts examinations of the various institutions supervised by the Farm Credit Administration.

In addition, there are five other staff divisions in the Farm Credit Administration which perform, for the Administration as a whole, the services denoted by their titles as follows: Finance and Accounts; Administrative; Personnel; Information and Extension; and Economic and Credit Research.

Prior to the enactment of the Farmers' Home Administration Act of 1946 (Pub. Law 731, 79th Cong., 60 Stat. 1062), the Farm Credit Administration, through the Emergency Crop and Feed Loan Division, made and collected emergency crop, feed, drought, and rehabilitation loans under an act of Congress approved January 29, 1937 (50 Stat. 5), and a number of earlier statutes and Executive orders. The Farmers' Home Administration Act of 1946 abolished these functions of the Farm Credit Administration and vested in the Farmers' Home Administration the function of collecting such loans.

§2.2 Functions and procedures—(a) Supervision of institutions in farm credit districts. The Farm Credit Administration regulates and supervises the Federal land banks and national farm loan associations, the Federal intermediate credit banks, the production credit corporations and production credit associations, and the district banks for cooperatives, through the respective Commissioners under the general direction of the Governor. Such regulation and supervision is exercised in the various respects and by the methods stated in the respective statutes enumerated in § 2.1 (a) to

(d). The Farm Credit Administration also conducts examinations of these institutions. The substantive rules and regulations promulgated by the Farm Credit Administration with respect to these institutions are contained in Subchapters B, D, E, and F of this chapter.

(b) Functions with respect to the Federal Farm Mortgage Corporation. The Governor of the Farm Credit Administration and the Land Bank Commissioner, together with the Secretary of the Treasury or an officer of the Treasury designated by him, are ex officio the directors of the Federal Farm Mortgage Corporation and as such they direct its affairs. The loans of the Federal Farm Mortgage Corporation are made on its behalf by the Land Bank Commissioner. The Farm Credit Administration conducts examinations of the Federal Farm Mortgage Corporation.

The functions of the Department of Agriculture as disposal agency for surplus agricultural and forest real property under the Surplus Property Act of 1944 (58 Stat. 765; 50 U. S. C. App. Sup., 1611-1646), have been delegated by the Secretary of Agriculture to the Governor of the Farm Credit Administration, and redelegated by the Governor to the Federal Farm Mortgage Corporation, which utilizes the facilities of the Federal land banks in performing these functions. The Farm Credit Administration regulates and supervises the execution of these functions. The regulations issued by the Farm Credit Administration, with the approval of the Secretary of Agriculture, are contained in Part 5 of this subchapter.

(c) Functions with respect to the Central Bank for Cooperatives. The Cooperative Bank Commissioner is ex officio chairman of the board of directors of the Central Bank for Cooperatives, and the other six directors are appointed by the Governor of the Farm Credit Administration. The Cooperative Bank Commissioner is also the chief executive officer of the Central Bank. The Commissioner, as chairman of the Board, and the Governor prescribe rules and regulations governing the activities of the Central Bank and these rules and regulations are contained in Subchapter F of this chapter. The Farm Credit Administration conducts examinations of the Central Bank and supervises it in other respects and by the methods stated in

48 Stat. 257, 266, as amended; 12 U. S. C., Chap. 7, Subchaps. V and VI.

(d) Functions with respect to the Regional Agricultural Credit Corporation of Washington, D. C. The Farm Credit Administration prescribes the charter provisions and bylaws of the Regional Agricultural Credit Corporation of Washington, D. C., appoints its directors and officers, prescribes rules and regulations governing its activities, and conducts examinations of its affairs. The rules and regulations governing the Corporation are contained in Subchapter G of this chapter.

(e) Revolving Fund Section. The Farm Credit Administration, through this Section, conducts the liquidation of loans made to cooperative associations by the Federal Farm Board and the Farm Credit Administration out of the Revolving Fund created by the Agricultural Marketing Act (46 Stat. 11, as amended; 12 U. S. C. 1141-1141j). Since loans to cooperative associations for the purposes specified in the Agricultural Marketing Act are now available from the banks for cooperatives, loans under that act are not ordinarily made by the Farm Credit Administration out of the Revolving Fund, except in furtherance of the liquidation by outstanding loans. The requirements for such loans and the terms and conditions thereof are stated in the Agricultural Marketing Act.

The Farm Credit Administration, through the Revolving Fund Section, also conducts the liquidation of loans made to individuals by the Secretary of Agriculture to capitalize local agricultural credit corporations under 46 Stat. 1032, as amended by 46 Stat. 1160, and 47 Stat. 60, as amended: 12 U. S. C. 14011404. No loans under these statutes are now being made.

A cooperative association desiring to apply for a loan from the Revolving Fund should submit an application on a prescribed form to the Director of the Revolving Fund, together with evidence of the association's eligibility under the act, and of the authority of its officers to execute the loan documents, and statements of its financial condition. Forms for making application for loans may be obtained from the Director of the Revolving Fund upon request.

Real and personal properties acquired by the United States as a result of loans made from the Revolving Fund are leased