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FEDERAL
VOLUME 9

REGISTE

r& É 934- p A /IT E O

NUMBER 191

Washington, Saturday, September 23, 1944
Regulations TITLE 6AGRICULTURAL CREDIT
Chapter IFarm Credit Administration P art 11N ational F arm L oan A ssociations CLASSIFICATION OF ASSOCIATIONS; RETIRE
MENT OF STOCK UPON REPAYMENT OF
LOANS

Part 11 of Title 6, Code of Federal Reg ulations is hereby amended as follows;
Present 11.392 to 11.395, inclusive, are revoked and new 11.65,11.392, and 11.393 are added to read as follows r 11.65 Classification of associations.
The banks shall review periodically the financial condition of each association, and e a c h completed compartment formed under the provisions of section 25 b of the Farm Credit Act of 1937
12 U.S.C. 724, to determine whether its capital stock is impaired or unim paired. For this purpose, the stock of an association shall be considered im paired if the total pf its liabilities in cluding estimated losses on contingent liabilities and capital stock is in excess of its total assets and such excess may not reasonably be regarded, under all the circumstances, as negligible in amount or percentage, as apparent rather than real, or as temporary only.
11.392 Disposition of stock proceeds where association stock is unimpaired.
When a mortgage loan through an asso ciation with unimpaired stock is paid in full, the bank shall retire its stock out standing in connection with such loan and shall pay its par value in cash to the association. Upon the retirement of the bank stock, the association shall retire, its stock outstanding in connection with such loan and shall pay the full proceeds thereof, less the amount of any claim of the association which may properly be offset against such stock proceeds, to the owner of, or the holder of a valid assign ment of the beneficial interest in, such stock. The bank may, however, pursuant to a general resolution adopted by its board of directors and approved by the Farm Credit Administration, retire its stock and, with the consent of the asso
ciation, credit an amount equal to the par value thereof as a last payment on the retiring borrowers loan. Before crediting stock of an unimpaired asso ciation to the retiring borrowers loan, the bank shall have satisfactory evidence th at the person paying off the loan either owns, or holds a valid assignment of the beneficial interest in, stock issued by the association in connection with such loan and the association does not have a valid claim which properly may" be offset against the proceeds of such stock upon its retirement.
1093 Disposition of stock proceeds where association stock is impaired.
When a mortgage loan through an as sociation with impaired stock is paid in full, the bank shall retire its stock out standing in connection with such loan, and, if the association is indebted to the bank, it may retain the full amount of the proceeds of such stock and apply it as a credit on such indebtedness or it may pay to the association from the proceeds of such retired stock an amount sufficient to permit the association to make settlements pursuant to conserva torship proceedings, under section 29 of the Federal Farm Loan Act as amended, in which case any balance of such pro ceeds shall be retained by the bank and applied as a credit on the indebtedness of the association to it. Upon the re tirement of the bank stock the associa tion shall retire its stock outstanding in connection with such loan, and, unless it has been through conservatorship as provided in said section 29, it shall not make any payments to its retired share holders of record or their heirs or as signs until it has paid, or made adequate provision for paying, its indebtedness to its creditors and has sufficient funds available to make a distribution among its retired shareholders or their heirs or assigns on a pro rata basis. Except where settlement is made pursuant to conservatorship proceedings, an associ ation with impaired stock shall issue to each retiring shareholder, or his heirs or assigns, a certificate which recites, in effect, that the holder of the certificate is entitled to share in the distribution of any assets of the association which is Continued on next page
"CONTENTS
REGULATIONS AND NOTICES
C ivil A eronautics B oard;

p age
Airmen, physical standards for_ 11675
Pilot certificates, aeronautical skill__________________ 11675
F arm C redit A dm inistration ;

National Farm Loan Associa tions; classification, retire ment of stock upon repay ment of loans____________ 11673
F ederal P ower C om m ission :

Hearings, etc.;
Central N e b r a s k a Public Power and Irrigation Dis tric t_________________ 11715
Loup River Public Power Dis tric t_________________ 11715
F ederal T rade C om m ission :

Chaitt, Benjamin, et al., cease and desist order___ ______ 11675
F orest S ervice :

Trespass; settlement of cases_11713
I nterior D epartment :

Lillybrook Coal Co., et al., pos session taken____________ 11714
M in e s B ureau :

Koontz, C. G., revocation of li censes, etc______________ 11713
O ffice
of
D efense T ransportation :

Common carriers, coordinated operations:
Aberdeen and Ipswich, S.
Dak___________________11715
Ashtabula, Ohio, and Kenosha, Wis__________________ 11716
Taxicab operators, coordinated operations in Quincy, 111___ 11716
Traffic movement in railway tank cars ODT 7, Rev. 2, Revocation; ODT 7, Rev., Am. 1 2 documents___ 11713, 11716
O ffice
of E conomic
S tabilization :

Price stabilization, maximum prices; apples for process ing, 1944 crop___________ 11713
O ffice
of
P rice A dm inistration :

Adjustments:
Arjoh Coal & Coke Co., et al_ 11718
Gibraltar Mfg. Co., Inc______ 11719
Gunn Furniture Co_________11717
Marion Tool Corp__________ 11718
Packet Co_________________ 11717
Schreiber, Albert G_________11719
Service Cabinet Co., Inc______ 11719
Continued on next page 11673