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amended (39 Stat. 372, as amended; 12 U.S.C. 781 "Second”), the Federal land bank acquiring the mortgage shall, by registered mail, notify the owner of the real estate securing the mortgage (if he was such owner at the time the mortgage was acquired) of his right to have the farm mortgage indebtedness refinanced and the amount at which such indebtedness may be refinanced. The notice shall also advise such owner that in order to refinance such indebtedness he must file an application for a refinancing loan within a reasonable period of time which shall be fixed in the notice and which shall extend not less than three months nor more than six months from the date of mailing of the notice. The right to refinance may be exercised only by a person who, at the time when the mortgage was acquired, was the owner of the property securing the mortgage. Said right may be availed of only in a case where an application for a refinancing loan is filed within the time specified in the notice given by the Federal land bank as herein provided or within such further period of time as may be consented to in writing by the Federal land bank: Provided, however, That the Federal land bank shall not extend such period of time beyond six months from the date of mailing of said notice. Stock required to be subscribed by the owner in connection with a refinancing loan shall be paid for in cash except that such cost may, at the option of the Federal land bank, be included in the amount of the loan to the extent that 50 per centum of the normal value of the land mortgaged and 20 per centum of the value of the permanent insured improvements thereon as determined by appraisal exceeds the price paid for the mortgage by the Federal land bank.t (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
PREPAYMENT OF LOANS 10.386 Payments in advance after five years. Any borrower from a Federal or joint stock land bank may without advance notice at the end of five years from the date of his mortgage, or on any regular installment date thereafter, make in advance any number of installment payments or any portion thereof on account of principal of his loan, or may pay the entire principal.t (Sec. 6, 47 Stat. 14, sec. 12 “Second”, 39 Stat. 370, as amended; 12 U.S.C. 665,771 "Second”)
10.387 Payment in full before five years. While the borrower has no legal right to pay off his mortgage within five years from its date, the acceptance of such payment is not prohibited to either Federal or joint stock land banks where unforeseen circumstances arise making it to the interest of the borrower to pay. Should a land bank accept such payment, it may collect from the borrower such a sum as will reimburse the bank for the expense of making the loan. (Sec. 6, 47 Stat. 14, sec. 12 "Second", 39 Stat. 370, as amended; 12 U.S.C. 665, 771 “Second")
EXCHANGE OF BONDS 10.662 Bonds issued by Federal land banks individually and bonds issued by joint stock land banks. Upon reasonable request by any holder of outstanding farm loan bonds issued by a Federal land bank individually or by a joint stock land bank, such bank shall make exchanges of its farm loan bonds of the same issue. No charge Page 36
†For source citation, see note to $ 10.7.
shall be made by the bank for the issuance of coupon bonds of $500 denomination or over in exchange for coupon bonds of smaller denomination, nor for the issuance of registered bonds in exchange for registered bonds of the same denomination, nor for the issuance of registered bonds of $500 denomination or over in exchange for registered bonds of smaller denomination. For the issuance of coupon bonds of less than $500 denomination the bank may make a charge not to exceed that permitted in schedules which are sent to the banks from time to time by the Farm Credit Administration based upon average costs of preparation. Except as otherwise provided in this section, the bank may make a charge for exchanges not to exceed 50 cents for each bond issued. Application to exchange or transfer bonds should be made to the issuing bank. Where request for the exchange or transfer of bonds is made by guardians, executors, administrators, trustees, or other fiduciary officers holding such bonds in their official capacities, the request should be accompanied by authenticated copies of the appointment of such officer and other court orders, showing the authority under which the bonds are held and the right to exchange or transfer the same. Such copies of court records should be examined by the legal officers of the bank to determine their sufficiency and retained in the files of the bank. The request should be forwarded to the registrar of the district in which the bank is located accompanied by the certificate of the legal officer of the bank to the effect that he has examined such papers and that they are sufficient to show legal ownership of the bonds in the officer making the request. A copy of the request and certificate should be forwarded by the registrar to the Custodian of Securities of the Farm Credit Administration. The foregoing provisions with respect to the proof to be submitted by persons acting in representative capacities with requests for the exchange or transfer of bonds shall not be applicable to assignments of matured or called registered farm loan bonds issued individually by the Federal land banks and paid or redeemed through the Federal reserve banks. All assignments of matured or called registered individual bonds of Federal land banks paid or redeemed through the Federal reserve banks shall be executed in accordance with the regulations of the United States Treasury Department governing assignments of United States bonds insofar as such regulations may be applicable. Provided, however, That the officers indicated in the instructions appearing on the bonds may witness assignments of such matured or called registered individual bonds of Federal land banks, and that detached assignments of such bonds, which are properly executed and attached to the bonds, may be accepted. Provided, further, That assignments of such bonds executed by an attorney-in-fact may be accepted when accompanied by an executed power of attorney authorizing such assignments, or when accompanied by a copy of a power of attorney that has been duly recorded in an office of public record and properly certified to be a true copy by an officer in charge of such records.t (Sec. 6, 47 Stat. 14, secs. 16, 20, 39 Stat. 374, 377; 12 U.S.C. 665, 813, 864)
CROSS REFERENCE: For general regulations with respect to United States bonds and notes, see 31 CFR Part 306.
*For source citation, see note to 10.7.
10.663 Consolidated bonds issued by the 12 Federal land banks. Consolidated bonds issued by the 12 Federal land banks may be exchanged for bonds of the same issue, and assignments of registered consolidated bonds of all issues may be effected, under and in accordance with the regulations of the United States Treasury Department governing exchanges and transfers of United States bonds.t (Sec. 6, 47 Stat. 14, sec. 20, 39 Stat. 377, sec. 7, 47 Stat. 1550; 12 U.S.C. 665, 864, 881 (e))
CROSS REFERENCE: For general regulations with respect to United States bonds and notes, see 31 CFR Part 306.
10.664 Maximum fees for exchange of bonds of individual banks.
(Sec. 6, 47 Stat. 14, sec. 20, 39 Stat. 377, sec. 7, 47 Stat. 1550; 12 U.S.C. 665, 864, 881 (e)) LOST, STOLEN, DESTROYED, MUTILATED, OR DEFACED BONDS AND COUPONS
10.671 Bonds issued by individual Federal land banks. When ever it appears to the Land Bank Commissioner, by clear and satisfactory evidence, that any interest-bearing bond or any coupon thereof issued by any Federal land bank or joint stock land bank has, without bad faith on the part of the owner, been lost, stolen, or destroyed, and is not lawfully held by any person as his own property, or has been so mutilated or defaced as to impair its value to the owner, and is identified by number and description, the Land Bank Commissioner may authorize such Federal land bank or joint stock land bank to issue another bond in lieu of such bond, having the same time to run, and bearing like interest; Provided, That in the case of a matured interest coupon no duplicate will be issued, but payment of the face amount of such coupon may be authorized,
and, Provided, further, That the regulations prescribed by the Land Bank Commissioner have been complied with. When such bond is of a class or series that has been or will be called for redemption before the application for issuance of a bond to replace it can be acted upon, it shall be paid with such interest only as would have been paid if it had been presented in accordance with the call; Provided, That the regulations prescribed by the Land Bank Commissioner have been complied with. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
* For source citation, see note to § 10.7.
10.672 Bonds issued by individual banks; indemnity by applicants for relief. The owner of any such lost, stolen, or destroyed coupon bond or coupon thereof shail file with the bank of issue a bond of indemnity in a penal amount double the sum of the face amount of such coupon bond and the interest which wculd accrue thereon until the principal becomes due and payable, or double the amount of such coupon, as the case may be; and the owner of any such lost, stolen, or destroyed registered bond shall file with the bank of issue a bond of indemnity in a penal amount equal to the sum of the face amount of such bond and the interest which would accrue thereon until the principal thereof becomes due and payable; with good and sufficient corporate surety to be approved by the bank of issue and the Land Bank Commissioner, and with conditions to indemnify and save harmless the bank of issue from all claims, demands, or loss, on account of the bond in lieu of which the issuance of another is requested. The owner of a partially destroyed, mutilated, or defaced bond or coupon shall surrender the same or so much thereof as may remain, before another bond will be issued in lieu thereof or payment will be made, and in such case the owner shall, if required, file with the bank of issue a bond of indemnity in a penal sum satisfactory to the bank of issue and the Land Bank Commissioner with conditions to indemnify and save harmless the bank of issue as above stated.† (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.673 Consolidated Federal farm loan bonds. Claims for lost, stolen, destroyed, mutilated, or defaced consolidated Federal farm loan bonds, or coupons attached thereto, shall be presented in accordance with United States Treasury Department Regulations now or hereafter in force with respect to United States bonds and notes. (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
CROSS REFERENCE: For regulations of the Treasury Department in regard to claims for lost, stolen, destroyed, mutilated, or defaced bonds and notes, see 31 CFR 306.78 306.88.
10.674 Proof required from applicants-(a) Consolidated Federal farm loan bonds. Proof shall be required from applicants on account of lost, stolen, destroyed, mutilated, or defaced consolidated Federal farm loan bonds, or coupons attached thereto, in accordance with the United States Treasury Department Regulations now or hereafter in force with respect to United States bonds and notes.
(b) Bonds issued by individual Federal land banks. The applicant, who must be the owner of the bond or coupon in connection with which application for relief is made, or his authorized representative, will be required to establish to the satisfaction of the bank of issue and the Land Bank Commissioner, by clear and satisfactory evidence:
(1) The complete identification of the bond or coupon alleged to have been lost, stolen, destroyed, mutilated, or defaced;
(2) The ownership thereof;
For source citation, see note to $ 10.7.
(3) All material facts and circumstances in connection with the loss, theft, destruction, mutilation, or defacement of the bond or coupon on account of which payment or the issuance of the new bond is requested;
(4) In the case of a coupon bond, whether any unmatured coupons had been detached from the bond before the alleged loss, theft, destruction, mutilation, or defacement, and, if so, the maturity dates and disposition thereof;
(5) In the case of a registered bond, whether an assignment or transfer of the bond had been made by the owner thereof in person or by attorney; if assigned, whether it was assigned in blank or to some person specifically by name; and if assigned to a specific person, the name of the assignee. If relief be granted, the new bond will be issued in the name of the registered owner of record, or to the applicant upon presentation of an appropriate assignment from the registered owner of record.* (Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
CROSS REFERENCE: For regulations of the Treasury Department in regard to proof required in connection with lost, stolen, destroyed, mutilated, or defaced bonds and notes, see 31 CFR 306.78_306.88.
10.675 Affidavits of persons having knowledge of facts. The proof required by $ 10.674 (b) must include affidavits by the applicant and all other persons having knowledge of the facts, which must be supported, with respect to each person making such an affidavit, by the affidavit of a responsible and disinterested person who is in no manner related to the applicant, and who should, wherever possible, be an officer of the United States or an executive officer of an incorporated bank or trust company, identifying the affiant and showing that such affiant is a person known to him whose statements are worthy of the confidence and consideration of the bank of issue and the Land Bank Commissioner.(Sec. 6, 47 Stat. 14; 12 U.S.C. 665)
10.676 Submission of application to Land Bank Commissioner. Affidavits and other evidence which an applicant is required by § 10.674 (b) to submit shall be transmitted to the Federal land bank or joint stock land bank which issued the bond of which replacement is sought. Upon receipt thereof the board of directors or executive committee of such bank and its counsel shall examine and determine the sufficiency thereof. If found sufficient and it appears that relief may be granted under & 10.671 and the board of directors or executive committee will so recommend, the bank shall obtain from the applicant a bond of indemnity with good and sufficient corporate surety in accordance with the provisions of $ 10.672. If the bond of indemnity be approved by the board of directors or executive committee of the bank and its counsel, such bond, the evidence and proofs submitted by the applicant, and, in connection with a registered bond, a statement of the bank's record of registration showing the date to which interest has been paid, together with a statement of the findings and recommendations of the board of directors or the executive committee of the bank and its counsel, shall be submitted to the Land Bank Commissioner for approval, and, if he
*For source citation, see note to s 10.7.