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202.8 Preparation of documents. A producer or wool pool desiring a loan upon eligible wool or mohair may obtain the necessary forms from the Loan Agencies of the Reconstruction Finance Corporation listed in § 202.14 of the instructions in this part. Such forms may also be obtained from Commodity Credit Corporation, Washington, D. C. The forms are identified, and no reprints or substitutes may be used.
All blanks in both the note and loan agreement must be filled in with ink, indelible pencil, or typewriter in the manner indicated therein, and no documents containing additions, alterations, or erasures will be accepted by Commodity Credit Corporation. Only the white copy of the note and loan agreement marked "original" is to be executed; the colored copy marked "duplicate" is to be retained by the producer.*†
202.9 Direct loans. It is contemplated that producers will ordinarily arrange for loans through local banks or other lending agencies, which, in turn, may sell the eligible paper evidencing such loans to Commodity Credit Corporation. Arrangements, however, have been made for making direct loans to producers on or before October 31, 1938. In the case of direct loans the notes must be made payable to Commodity Credit Corporation and must be tendered to the Loan Agency of the Reconstruction Finance Corporation serving the district in which the wool or mohair is stored, accompanied by a Producer's Letter of Transmittal (1938 CCC Wool Form E), in duplicate, postmarked not later than midnight of October 31, 1938, if tendered by mail. Upon delivery of all necessary documents properly executed and upon their approval, payment will be made in accordance with the directions of the producer contained in said 1938 CCC Wool Form E. When the Letter of Transmittal and documents are presented by the producer in person, the certificate printed at the bottom of the letter need not be executed, provided the producer can furnish evidence satisfactory to the Loan Agency as to his identity.**
202.10 Wool pools. Producers may join with other producers to form informal wool pools for the purpose of obtaining loans from Commodity Credit Corporation. In this connection assistance may be obtained from county extension agents or other governmental representatives. The representative of such informal pools must obtain authority from the producers for the pooling of the wool or mohair and the pledging thereof to Commodity Credit Corporation on a Producer's Authority to Pool, 1938 CCC Wool Form G. Under this arrangement the representative will execute the note evidencing the advance and pledging the wool or mohair without further liability on the part of such representative to Commodity Credit Corporation, except in the case of fraud or misrepresentation. Banks or agricultural or livestock credit corporations may act as representatives of wool pools. Such notes may be made payable to Commodity Credit Corporation and submitted immediately with a Lending Agency's Letter of Transmittal (1938 CCC Wool Form F) in which case no allowance for interest will be made by Commodity Credit
*For statutory citation, see note to § 202.1.
Corporation. However, if the representative of the wool pool has executed a Contract to Purchase (1938 CCC Wool Form H), allowance will be made by Commodity Credit Corporation for the interest from the date of the note.**
202.11 Obligation of lending agencies. Commodity Credit Corporation will purchase eligible paper as above defined only from lending agencies which have executed and delivered to the Loan Agency of the Reconstruction Finance Corporation serving the district in which the pledged wool or mohair is stored, a Contract to Purchase (1938 CCC Wool Form H) obtainable only from Loan Agencies. Such eligible paper must be tendered to the proper Loan Agency for purchase prior to February 1, 1939. The purchase price for such eligible paper will be the face amount of the notes, plus interest thereon at the rate of two and one-half percent (212%) per annum from the respective dates of such notes to the date of purchase. In this connection the representative of a wool pool or pools may carry under the terms of the Contract to Purchase, the notes which it has executed. Under the terms of the Contract to Purchase, lending agencies are required to report on 1938 CCC Wool Form J all payments or collections on notes held by them, and to remit promptly to Commodity Credit Corporation, Washington, D. C., an amount equivalent to 12 percent per annum interest on the principal amount collected from the respective dates of the notes to the date of payment. Notes on 1938 CCC Wool Form A, B, or C may be endorsed without recourse by lending agencies tendering same.
Care should be exercised by the lending agency to determine the genuineness of the signatures to such notes and loan agreements, and that the warehouse receipts are genuine and represent merchantable wool or mohair in existence. No provision is made for any deduction from the loan proceeds as a charge for handling the loan documents. Lending agencies must complete the "Advice of Loan" slip appended to the loan agreement, detach, and mail same to Commodity Credit Corporation, Washington, D. C., at the time such notes are executed. The Advice of Loan and also the Schedule of Repayments (1938 CCC Wool Form J) must be filled in with ink, indelible pencil, or typewriter.*+
202.12 Listing of lienholders. All wool or mohair tendered to Commodity Credit Corporation as security to notes on 1938 CCC Wool Form A must be free and clear of all liens except in favor of the lienholders listed in the space provided therefor in the Loan Agreement. The names of the holders of all existing liens on the pledged wool or mohair (but not warehousemen) must be listed in the space provided therefor in paragraph 2 of the loan agreement. A misrepresentation as to prior liens, or otherwise, will render the producer personally liable under the terms of the loan agreement (1938 CCC Wool Form A) and subject to criminal prosecution under the provisions of section 16 (a) of the Reconstruction Finance Corporation Act, as amended (47 Stat. 11; 15 U.S.C. 616 (a)), which section is printed at the end of the loan agreement. The waiver and consent to the pledge of the wool or mohair and the payment of the proceeds of the loan and the proceeds of the sale of the wool or mo
*For statutory citation, see note to § 202.1.
hair solely to the producer as contained in paragraph 2 of the loan agreement must be signed personally by all lienholders listed or by their agents, whose duly executed authority must be attached firmly; or, if corporations, by the designated officer thereof customarily authorized to execute such instruments, in which case the duly executed authority need not be attached. Notes in which the waiver and consent to pledge, as contained in paragraph 2 of the Loan Agreement, are not signed by all prior lienholders listed by producer, will not be acceptable to Commodity Credit Corporation. The producer may direct in the Letter of Transmittal (1938 CCC Wool Form E) that the proceeds check for a direct loan from Commodity Credit Corporation be made payable to him and/or such other person or concern as he may direct thereon.
All wool or mohair pledged to secure wool pool notes on 1938 CCC Wool Form B must likewise be free and clear of all liens. The financial institution executing the note is required to state that each producer participating in the pool has represented and agreed that the wool or mohair delivered by him is free and clear of liens, and the bank must be satisfied as to the power of any lienholders listed by such producers to waive liens and consent to the pledge.*+
202.13 Insurance. Holders of notes desiring insurance coverage in addition to the insurance coverage provided by warehousemen should obtain such coverage at their own expense. Commodity Credit Corporation will make no allowance for insurance in purchasing eligible paper.**
202.14 Loan agencies of the Reconstruction Finance Corporation. The location of the loan agencies of the Reconstruction Finance Corporation previously referred to herein and the districts served by them are shown below:
All cities in 6th Federal Reserve District.
All cities in 7th Federal Reserve District.
All cities in 11th Federal Reserve District attached to
Kansas City------- All cities in 10th Federal Reserve District not attached to
Los Angeles-------. All cities in 12th Federal Reserve District attached to Los
All cities in 4th Federal Reserve District and cities in 8th
All cities in 9th Federal Reserve District.
All cities in 2d Federal Reserve District.
All cities in 10th Federal Reserve District attached to
All cities in 3d Federal Reserve District.
All cities in 12th Federal Reserve District attached to
All cities in 5th Federal Reserve District.
All cities in 11th Federal Reserve District except those attached to Houston.
San Francisco----- All cities in 12th Federal Reserve District attached to San
All cities in 8th Federal Reserve District except those attached to Louisville.*+
*For statutory citation, see note to § 202.1.
202.15 Release of collateral. If the producer's or wool pool's notes were made payable to Commodity Credit Corporation and it is desired to obtain the return of the note and the release of the collateral upon payment, the Federal Reserve bank or branch thereof serving the district in which the wool or mohair is stored should be notified. If note was made payable to a payee other than Commodity Credit Corporation, the producer or representative of the wool pool should notify the payee named therein. Warehouse receipts representing wool or mohair held by Commodity Credit Corporation will be released by the Federal Reserve bank or branch thereof holding the receipts, upon the payment of the amount of the loan, the accrued interest, and proper charges. No partial releases will be permitted. Upon written request of the producer or the lending agency, the note and warehouse receipts will be forwarded to an approved bank, to be released to the producer or his agent or the representative of the wool pool against payment. Where receipts are transmitted to a bank they will be sent with a request to return them to the sender if payment and release are not effected within 15 days. All charges and expenses of the collecting bank are to be paid by the producer or representative of the wool pool.*+
PART 251-COMMODITY CREDIT CORPORATION
251.1 Offering of notes.
251.2 Description of notes.
251.5 General powers of Federal Reserve banks.
Section 251.1 Offering of notes. The Secretary of the Treasury, on behalf of the Commodity Credit Corporation, invites subscriptions, at par and accrued interest, from the people of the United States for notes of the Commodity Credit Corporation, designated 34 percent notes of Series C. The amount of the offering is $200,000,000, or thereabouts.***†
**88 251.1 to 251.5, inclusive, issued under the authority contained in E.O. 6340, Oct. 16, 1933, sec. 7, 49 Stat. 4, sec. 2, 50 Stat. 5.
The source of §§ 251.1 to 251.5, inclusive, is Department Circular 583, Public Debt Service, Treas. Dept., Apr. 25, 1938, 3 F.R. 801.
251.2 Description of notes. (a) The notes will be dated May 2, 1938, and will bear interest from that date at the rate of 34 percent per annum, payable semiannually on November 2, 1938, and on May 2 and November 2, 1939. They will mature November 2, 1939, and will not be subject to call for redemption prior to maturity.
(b) These notes are issued under the authority of the act approved March 8, 1938, (52 Stat. 107) which provides that these notes shall be fully and unconditionally guaranteed both as to interest and principal by the United States; that they 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); and that the notes shall be lawful in
*For statutory citation, see note to § 202.1.
vestments 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.
(c) The authorizing act further provides that in the event 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.
(d) The notes will be acceptable to secure deposits of public moneys, but will not bear the circulation privilege.
(e) Bearer notes with interest coupons attached will be issued in denominations of $1,000, $5,000, $10,000 and $100,000. The notes will not be issued in registered form.*t
251.3 Subscription and allotment. (a) Subscriptions will be received at the Federal Reserve banks and branches and at the Treasury Department, Washington. Banking institutions generally may submit subscriptions for account of customers, but only the Federal Reserve banks and the Treasury Department are authorized to act as official agencies. Others than banking institutions will not be permitted to enter subscriptions except for their own account. Cash subscriptions from banks and trust companies for their own account will be received without deposit but will be restricted in each case to an amount not exceeding one-half of the combined capital and surplus of the subscribing bank or trust company. Cash subscriptions from all others must be accompanied by payment of 10 percent of the amount of notes applied for. The Secretary of the Treasury reserves the right to close the books as to any or all subscriptions or classes of subscriptions at any time without notice.
(b) The Secretary of the Treasury reserves the right to reject any subscription, in whole or in part, to allot less than the amount of notes applied for, to make allotments in full upon applications for smaller amounts and to make reduced allotments upon, or to reject, applications for larger amounts, or to adopt any or all of said methods or such other methods of allotment and classification of allotments as shall be deemed by him to be in the public interest; and his action in any or all of these respects shall be final. Subject to these reservations, subscriptions in payment of which Series B Collateral Trust Notes of the Corporation are tendered will be allotted in full. Allotment notices will be sent out promptly upon allotment, and the basis of the allotment will be publicly announced.*+
251.4 Payment. Payment at par and accrued interest, if any, for notes allocated on cash subscriptions must be made or completed on or before May 2, 1938, or on later allotment. In every case where payment is not so completed, the payment with application up to 10 percent of the amount of notes applied for shall, upon declaration made by the Secretary of the Treasury in his discretion, be forfeited
**For statutory and source citations, see note to § 251.1.