charged may be based on estimated average cost of determination of title so long as, in the aggregate, the fees collected for such cases do not exceed such actual cost. In any case, though, the fee charged may be in the amount of the actual cost of appraisal and determination of title involved in the particular case. § 19.74 Release of personal liability. Where, upon transfer of title to the mortgaged property, an application is made for release from personal liability, the bank may require a fee of $10 in connection with each application, such fee to be refunded in its entirety to the applicant in the event an appraisal of the property is not made. § 19.75 Forbearance agreements. No fees may be charged in connection with forbearance agreements but borrowers may be charged with direct outlays for determination of title including filing or notarial expense. An amount not to exceed actual costs, such as abstract notarial recording and necessary incidental items, incurred in connection with a reamortization, may be charged the borrower. § 19.77 Reinstatement of loans. When a bank has instituted foreclosure or has taken necessary steps preliminary to foreclosure, it may require a borrower who wishes to reinstate such defaulted loan to reimburse it for any items of actual expense which it legally could include in its foreclosure fee; but no fee may be charged upon a reinstatement for any items of expense which legally could not be included in the foreclosure fee (such as purely collection costs), even though the amount of such outside items is less than the charges which could lawfully be imposed were the foreclosure to be completed. ASSOCIATION FEES § 19.78 Applications. Associations may collect an association application fee of not more than $5 in connection with each application, except that in cases wherein the appraisal is made for the bank by association per sonnel, an application fee of not more than $15 may be collected: Provided, however, That the amount of any such fee shall not exceed 1 percent of the amount of the loan applied for. If the property offered as security is subject to any outstanding mortgage loan or loans held by the bank, regardless of the amount stated in the application, the application fee shall be based on an amount applied for which includes the unmatured principal, as of the date of the application, of such outstanding mortgage loan or loans. The application fee may be collected at the time the application is filed. It may be retained by the association regardless of whether the loan is rejected or closed as a new, additional, or refunding bank loan: Provided, however, That if no association investigation or appraisal by association personnel is made for the bank after a fee provided for in this section has been collected, the amount of such fee shall be refunded. [27 F.R. 10931, Nov. 9, 1962] § 19.79 Closed loans. Except as hereinafter provided when a bank loan is closed, associations may collect a closed loan fee in an amount which, when added to the association application fee already collected, will equal but not exceed 1 percent of the amount of the bank loan closed. § 19.80 Additional and refunding loans. Where, upon the basis of an application in which there is offered as security property which is mortgaged in whole or in part to a bank, an additional loan is closed and the association currently endorses only the additional loan, the association may collect a closed loan fee which, when added to the association application fee already collected, will not exceed 1 percent of the amount of the additional loan. If the outstanding land bank loan or loans and the additional loan are written as one loan, and the association currently endorses for the full amount, the association may collect a closed loan fee which, when added to the association application fee already collected, will not exceed 1 percent of the full amount of the loan closed. [27 F.R. 10931, Nov. 9, 1962] SUBCHAPTER C-[RESERVED] SUBCHAPTER D-FEDERAL INTERMEDIATE CREDIT BANKS AND PRODUCTION CREDIT ASSOCIATIONS 40.282 Suspension of right to borrow and rediscount. 40.282-1 Same; operations during suspension. 40.283-2 Insolvency; other financing institutions. AUTHORITY: §§ 40.101 to 40.283-2 issued under sec. 209, 42 Stat. 1459, as amended; 12 U.S.C. 1101. SOURCE: $40.101 to 40.283-2 appear at 27 F.R. 12803, Dec. 28, 1962. Correction noted at 28 F.R. 279, Jan. 10, 1963. NOTE: That part of each section number which follows the decimal is the same as the section number of the corresponding provision in the Manual for Federal Intermediate Credit Banks. Subpart A-General Provisions § 40.101 Management. Each Federal intermediate credit bank operates under a board of directors which consists of the seven members of the district Farm Credit board (12 U.S.C. 640b) who are also, ex officio, directors of the Federal land bank and the bank for cooperatives of the district (12 U.S.C. 1022). § 40.102 Supervision. The Governor of the Farm Credit Administration, under the direction and control of the Federal Farm Credit Board, has the responsibility for supervision of the Federal intermediate credit banks and production credit associations. (12 U.S.C. 636d.) By order of the Governor, the exercise of this authority has been delegated to the Deputy Governor and Director of Short-Term Credit Service. Unless otherwise indicated, all matters pertaining to these banks and associations requiring attention or action by the Farm Credit Administration are to be referred to the office of the Director of Short-Term Credit Service. § 40.111 Capital stock; participation certificates. (a) Each Federal intermediate credit bank is authorized to issue two classes of capital stock. Class A stock, preferred as to assets in event of liquidation, may be issued only to the Governor of the Farm Credit Administration on behalf of the United States and represents the investment of the United States in such bank. Class B stock may be issued to and held by production credit associations only. (b) Other financing institutions dealing with a credit bank may not acquire capital stock in the bank but will receive participation certificates in payment of patronage refunds due them out of net earnings of the bank. (c) All capital stock and participation certificates shall have a designated issue date, which shall determine its order of retirement. An additional series designation may be used if approved by the board of directors. § 40.111-3 Same; class B stock. (a) Class B stock shall have a par value of $5.00 per share. Class B stock certificates shall be in a form prescribed by the board of directors of the bank, subject to the approval of the Farm Credit Administration. No fractional shares shall be issued. (b) In the discretion of the bank, class B stock certificates need not be furnished unless a request therefor is made by the production credit association concerned. In the event a certificate is not issued, an "Advice of Class B Stock Issued", in form approved by the Farm Credit Administration, should be furnished to the association. § 40.111-4 cates. Same; participation certifi to Participation certificates issued other financing institutions shall be in multiples of $5.00 and shall be in form prescribed by the board of directors of the bank, subject to the approval of the Farm Credit Administration. Ordinarily, participation certificates will be issued and delivered to the owners thereof; however, upon request of the owner an "Advice In Lieu of Participation Certificate", in form approved by the Farm Credit Administration, may be furnished. § 40.112-1 Retirements of class B stock and participation certificates; general. After all class A stock has been retired, and under policies established by the Farm Credit Administration, the bank may retire class B stock and participation certificates at par or face amount without preference and in such order that the oldest shares of stock and participation certificates outstanding at any time shall be retired first (12 U.S.C. 1061(a) (2)). The amount of class B stock owned by any active production credit association shall not be less than the original subscription made by the association pursuant to the Farm Credit Act of 1956, unless a different amount is approved by the Farm Credit Administration. § 40.112-2 Same; institutions in liquidation. In case of liquidation or dissolution of a production credit association or other financing institution, the class B stock or participation certificates of the bank owned by such association or other institution may be retired by the bank at the fair book value thereof, not exceeding par or face amount, as the case may be (12 U.S.C. 1061(a)(2)). A financing institution holding participation certificates issued by a Federal intermediate credit bank will be deemed to be in "liquidation or dissolution" if it is going out of business, liquidating its assets for distribution of the proceeds to those entitled thereto, and taking appropriate steps to terminate its corporate existence in accordance with applicable State laws. Merely paying its indebtedness to the credit bank and suspending the making of loans will not qualify a corporation for retirement of its participation certificates. § 40.112-3 Same; institutions in default. In the event of default by the holder of class B stock or participation certificates, the bank may retire and cancel all or any part of such stock or participation certificates, as the case may be, in total or partial liquidation of the debt of the holder to the bank. § 40.113-1 Transfers of class B stock and participation certificates; class B stock-general. Class B stock of a credit bank may be transferred to another production credit association, with the approval of the issuing bank (12 U.S.C. 1061(a) (2)). § 40.113-2 Saine; disposition of class B stock in merger or consolidation of associations. In the event of the merger or consolidation of two or more production credit associations, class B stock held by the associations involved shall be disposed of in the manner provided in the agreement of consolidation or merger. § 40.113-3 cates. Same; participation certifi § 40.113-4 Same; preservation of statutory lien. All changes in ownership of class B stock and participation certificates shall be subject to the statutory lien of the bank for any indebtedness of the transferor to the issuing bank (12 U.S.C. 1061(b)). § 40.114 Surrender of certificates; issuance of new certificates. Upon retirement of any class B stock or participating interest, evidenced by an outstanding certificate, the certificate involved shall be surrendered to the bank for cancellation. In case of partial retirement a new certificate shall be issued for the balance not retired, which shall bear the same issue date and series designation, if any, as the cancelled certificate. In the event of a transfer of class B stock or participation certificates from one holder to another, including transfers resulting from mergers or consolidations, any new class B stock or participation certificates issued shall bear the same issue dates and series designations, if any, as the original certificates for which new certificates are substituted. § 40.115 Lost, destroyed, or stolen stock or participation certificates. Whenever a class B stock certificate or a participation certificate which has been issued by the bank is lost, stolen, destroyed, or so mutilated as to impair its value, the bank may issue in lieu thereof a new certificate which shall bear the same issue date and series designation, if any, upon compliance with the following requirements: (a) The owner shall furnish an affidavit of loss, acceptable to the bank setting forth: (1) The issue date or series, number of shares, and any other information required to establish its identity; (2) a detailed statement of the circumstances surrounding the loss, theft, destruction, mutilation or defacement of the certificate; and (3) a statement that the affidavit was made for the purpose of obtaining a new certificate. Since class B stock and participation certificates may not be transferred except with the approval of the bank, a bond of indemnity ordinarily will not be required. (b) If a class B stock certificate or participation certificate which was reported lost, stolen or destroyed is recovered by the owner, he should notify the bank immediately; and if a new certificate was issued, the owner shall promptly return the old certificate to the bank. § 40.147 Lost, stolen, destroyed, or defaced collateral trust debentures. (a) Authorization for relief. Whenever a debenture issued by an individual Federal intermediate credit bank, or a consolidated debenture, is lost, stolen, destroyed or so mutilated or defaced as to impair its value to the owner, the Farm Credit Administration may authorize the issuance of a new debenture in lieu thereof upon the owner's compliance with the following requirements: (b) Application. In the event of the loss, theft, destruction, mutilation, or defacement of a debenture, issued by a Federal intermediate credit bank, or a consolidated debenture, the owner or his authorized representative, to protect his interest, should immediately file an application with the Farm Credit Administration for the issuance of another debenture in lieu thereof. Such application must be filed within a reasonable time after the loss, theft, destruction, mutilation, or defacement is discovered. (c) Affidavit of loss. The owner of the debenture which has been lost, stolen, mutilated, or destroyed, or his authorized representative, shall furnish to the Farm Credit Administration his affidavit, duly acknowledged before a notary public or other officer authorized by law to administer oaths, setting forth: (1) That he is the lawful owner (or authorized representative of the owner) of such debenture, and that he is legally entitled to its possession; (2) A complete identification of such debenture, including serial number, date of issue, face amount, date of maturity, and interest rate; (3) A detailed statement of the circumstances surrounding the loss, theft, destruction, mutilation, or defacement of such debenture; (4) A statement that the affidavit is made for the purpose of obtaining a new debenture, and an undertaking that, should the original debenture come into possession or control of the deponent, he will immediately surrender it to the Farm Credit Administration. (d) Bond of indemnity. (1) The owner of the lost, stolen, or destroyed debenture or his authorized representative, shall also furnish to the Farm Credit Administration a bond of indemnity in a penal amount equal to the sum of the principal and interest to maturity of the said debenture, plus 10 percent, with corporate surety satisfactory to the Farm Credit Administration, with conditions to indemnify and save harmless the Farm Credit Administration and any and all Federal intermediate credit banks and officers, employees, and representatives thereof, of and from all liability, loss, claims, or demands, arising in any manner by reason or on account of the debenture for which the issuance of another is requested. (2) The owner of a mutilated or defaced debenture, or his authorized representative, shall, before another debenture is issued in lieu thereof, surrender such debenture or as much thereof as remains, to the Farm Credit Administration, and shall, if required of him, also furnish a bond of indemnity in a penal sum satisfactory to the Farm Credit Administration, with corporate surety and conditions as above stated. (3) A bond of indemnity which is otherwise satisfactory will be accepted if the corporation which is surety thereon holds a certificate from the Secretary of the Treasury as being acceptable on surety bonds. A list of such corporations (Section of Surety Bonds Form 356) may be obtained from the United States Treasury. (e) Additional evidence of loss. The owner of a lost, stolen, mutilated, or destroyed debenture, or his authorized representative, shall also furnish such other and further evidence relating to the loss, theft, destruction, mutilation, or defacement of the debenture for which a new debenture is requested as may be required by the Farm Credit Administration in any specific case. (f) Recovery of debenture reported lost, stolen, or destroyed. If a debenture reported lost, stolen, or destroyed is recovered by the owner, or his authorized representative, prior to the issuance of a new debenture in lieu thereof, the Farm Credit Administration should be notified immediately, whereupon the application for the issuance of the new debenture will be canceled, and any bond and affidavits relative thereto will be returned to the owner, or his authorized representative. If the original debenture is recovered by the owner, or his authorized representative, after a new debenture in lieu thereof has been issued, the said original shall be returned to the |