rther
deny
mber

7.
ad tO
safes
y any
ted

WED
oF
1930

CQ

aks,
ject
4 a8

wot

nal
ural

any;
edit
ers,
arneral

any
auch
1 or
3 or
ive
aeh

res
nk:

tural

APPENDIX

(3) To make loans or advances direct to any cooperative
 association organized under the laws of any State
and composed of persons engaged in producing, or producing
 and marketing, staple agricultural products, or
live stock, if the notes or other such obligations representing
 such loans are secured by warehouse receipts,
ind /or shipping documents covering such products and/or
mortgages on live stock: Provided, That no such loan or
tdvance shall exceed 75 per centum of the market value
of the products covered by said warehouse receipts and/or
shipping documents, or of the live stock covered by said
mortgages.
(b) No paper shall be purchased from or discounted for
any national bank, State bank, trust company, or savings
‘stitution under this section, if the amount of such paper
added to the aggregate liabilities of such national bank,
State bank, trust company or savings institution, whether
direct or contingent (other than bona fide deposit liabilities),
 exceeds the amount of such liability permitted
under the laws of the jurisdiction creating the same;
or exceeds twice the paid in and unimpaired capital
and surplus of such national bank, State bank, trust
‘ompany, or savings institution. No paper shall under
this section be purchased from or discounted for any other
‘orporation engaged in making loans for agricultural
Purposes or for the raising, breeding, fattening, or marketing
 of live stock, if the amount of such paper added to
the aggregate liabilities of such corporation exceeds the
Amount of such liabilities permitted under the laws of the
jurisdiction creating the same; or exceeds ten times the
paid in and unimpaired capital and surplus of such
corporation. It shall be unlawful for any national bank
which is indebted to any Federal Intermediate Credit
Bank upon paper discounted or purchased under this
section, to incur any additional indebtedness, if by virtue
of such additional indebtedness its aggregate liabilities,
direct or contingent, will exceed the limitations herein
*ontained.’
(¢) Loans, advances, or discounts made under this
section shall have a maturity at the time they are made
or discounted bv the Federal Intermediate Credit Bank

"This provision in effect amends sec. 5202, Revised Statutes, and sec. 13, Federal
Reserve Act.

I