Public Law 80–166

Section 1.

The Reconstruction Finance Corporation Act, as amended, is hereby amended to read as follows:

“Sec. 1.

There is hereby created a body corporate with the name ‘Reconstruction Finance Corporation’ (herein called the Corporation), with a capital stock of $325,000,000 subscribed by the United States

Principal office.

of America. Its principal office shall be located in the District of Columbia, but there may be established agencies or branch offices in any city or cities of the United States under rules and regulations

Short title.

prescribed by the board of directors. This Act may be cited as the ‘Reconstruction Finance Corporation Act’.

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“Sec. 2.

The management of the Corporation shall be vested in a board of directors consisting of five persons appointed by the President of the United States by and with the advice and consent of the Senate. Of the five members of the board, not more than three shall be members of any one political party and not more than one shall be appointed from any one Federal Reserve district. Each director shall

Terms of directors.

devote his time principally to the business of the Corporation. The terms of the directors shall be two years but they may continue in office until their successors are appointed and qualified. Whenever a vacancy shall occur other than by expiration of term the person appointed to fill such vacancy shall hold office for the unexpired portion of the term of the director whose place he is selected to fill.

Salaries.

The directors, except the chairman, shall receive salaries at the rate of $12,500 per annum each. The chairman of the board of directors shall receive a salary at the rate of $15,000 per annum.

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“Sec. 3.

(a)(a)

The Corporation shall have succession through June 30, 1948, unless it is sooner dissolved by an Act of Congress. It shall have power to adopt, alter, and use a corporate seal; to make contracts; to lease or purchase such real estate as may be necessary for the transaction of its business; to sue and be sued, to complain and to defend, in any court of competent jurisdiction, State or Federal: Provided, That the Corporation shall be entitled to and granted the same immunities and exemptions from the payment of costs, charges, and fees as are granted to the United States pursuant to the provisions of law codified in sections 543, 548, 555, 557, 578, and 578a of title 28 of the United States Code, 1940 edition; to select, employ, and

26 Stat. 826; 43 Stat. 857, 858; 40 Stat. 1182; 29 Stat. 179, 186.

fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the transaction of the business of the Corporation, in accordance with laws, applicable to the Corporation, as in effect on June 30, 1947, and as thereafter amended; and to prescribe, amend, and repeal, by its board of directors, bylaws, rules, and regulations governing the manner in which its general business may be conducted. Except as may be otherwise provided in this Act or in the Government Corporation Control Act, the board of directors

59 Stat. 597.

31 U. S. C. §§ 841–869.

Post, p. 584.

of the Corporation shall determine the necessity for and the character and amount of its obligations and expenditures under this Act and the manner in which they shall be incurred, allowed, paid, and accounted for, without regard to the provisions of any other laws governing the expenditure of public funds and such determinations shall be final and conclusive upon all other officers of the Government. The Corporation shall be entitled to the use of the United States mails

Use of U.S. mails.

in the same manner as the executive departments of the Government.

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“(b)“(b)

Notwithstanding any other provision of law, the right to

Injury or death of employee.

recover compensation granted by the Act approved September 7, 1916, as amended (5 U. S. C., sec. 751), shall be in lieu of, and shall be

39 Stat. 742.

5 U. S. C. §§ 751–791, 793.

construed to abrogate, any and all other rights and remedies which any person, except for this provision, might, on account of injury or death of an employee, assert against the Corporation or any of its subsidiaries.

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“Sec. 4.

(a)(a)

To aid in financing agriculture, commerce, and industry,

Authority of RFC to aid in financing agriculture, commerce, etc.

to help in maintaining the economic stability of the country and to assist in promoting maximum employment and production, the Corporation, within the limitations hereinafter provided, is authorized—

“(1)“(1)

To purchase the obligations of and to make loans to any

Purchase of obligations of business enterprises, etc.

business enterprise organized or operating under the laws of any State or the United States: Provided, That the purchase of obligations (including equipment trust certificates) of, or the making of loans to railroads or air carriers engaged in interstate commerce or receivers or trustees thereof, shall be with the approval of the Interstate Commerce Commission or the Civil Aeronautics Board, respectively: Provided further, That in the case of railroads or air carriers not in receivership or trusteeship, the Commission or the Board, as the case may be, in connection with its approval of such purchases or loans, shall also certify that such railroad or air carrier, on the basis of present and prospective earnings, may be expected to meet its fixed charges without a reduction thereof through judicial reorganization except that such certificates shall not be required in the case of loans or purchases made for the acquisition of equipment or for maintenance.

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“(2)“(2)

To make loans to any financial institution organized under

Loans to financial institutions.

the laws of any State or of the United States.

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“(3)“(3)

In order to aid in financing projects authorized under

Financing of projects, etc.

Federal, State, or municipal law, to purchase the securities and obligations of, or make loans to, (A) municipalities and political subdivisions of States, (B) public agencies and instrumentalities of one or more States, municipalities, and political subdivisions of States, and (C) public corporations, boards, and commissions:

Restriction.

Provided, That no such purchase or loan shall be made for payment of ordinary governmental or nonproject operating expenses as distinguished from purchases and loans to aid in financing specific public projects.

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“(4)“(4)

To make such loans, in an aggregate amount not to exceed $25,000,000 outstanding at any one time, as it may determine to be necesssary or appropriate because of floods or other catastrophes.

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“(b)“(b)

No financial assistance shall be extended pursuant to paragraphs (1), (2), and (3) of subsection (a) of this section, unless the financial assistance applied for is not otherwise available on reasonable terms. All securities and obligations purchased and all loans made under paragraphs (1), (2), and (3) of subsection (a) of this section shall be of such sound value or so secured as reasonably to assure retirement or repayment and such loans may be made either directly or in cooperation with banks or other lending institutions through agreements to participate or by the purchase of participations, or otherwise.

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“(c)“(c)

The total amount of investments, loans, purchases, and commitments made pursuant to this section 4 shall not exceed $2,000,000,000 outstanding at any one time.

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“(d)“(d)

No fee or commission shall be paid by any applicant for financial assistance under the provisions of this Act in connection with any such application, and any agreement to pay or payment of any such fee or commission shall be unlawful.

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“(e)“(e)

No director, officer, attorney, agent, or employee of the Corporation in any manner, directly or indirectly, shall participate in the deliberation upon or the determination of any question affecting his personal interests, or the interests of any corporation, partnership, or association in which he is directly or indirectly interested.

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“(f)“(f)

The powers granted to the Corporation by this section shall terminate at the close of business on June 30, 1948, but the termination of such powers shall not be construed (1) to prohibit disbursement of funds on purchases of securities and obligations, on loans, or on commitments or agreements to make such purchases or loans, made under this Act prior to the close of business on such date, or (2) to affect the validity or performance of any other agreement made or entered into pursuant to law.

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“(g)“(g)

As used in this Act, the term ‘State’ includes the District of Columbia, Alaska, Hawaii, and Puerto Rico.

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“Sec. 5.

Section 5202 of the Revised Statutes of the United States, as amended, is hereby amended by striking out the words ‘War Finance Corporation Act’ and inserting in lieu thereof the words ‘Reconstruction Finance Corporation Act’.

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“Sec. 6.

The Federal Reserve banks are authorized and directed to act as custodians and fiscal agents for the Corporation in the general performance of its powers conferred by this Act and the Corporation may reimburse such Federal Reserve banks for such services in such manner as may be agreed upon.

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“Sec. 7.

The Corporation may issue to the Secretary of the Treasury its notes, debentures, bonds, or other such obligations in an amount outstanding at any one time sufficient to enable the Corporation to carry out its functions under this Act or any other provision of law, such obligations to mature not more than five years from their respective dates of issue, to be redeemable at the option of the Corporation before maturity in such manner as may be stipulated in such obligations. Such obligations may mature subsequent to the period of succession of the Corporation. Each such obligation shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the issuance of the obligation of the Corporation. The Secretary of the Treasury is authorized to purchase any obligations of the Corporation to be issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities

40 Stat. 288.

31 U.S. C. § 774 (2).

may be issued under the Second Liberty Bond Act, as amended, are extended to include any purchases of the Corporation’s obligations hereunder.

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“Sec. 8.

The Corporation, including its franchise, capital, reserves

Exemption from taxation.

and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, comity, municipality, or local taxing authority, except that any real property of the Corporation

Exception.

shall be subject to special assessments for local improvements and shall be subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed: Provided, That the special assessment and taxation of real property as authorized herein shall not. include the taxation as real property of possessory interests, pipe lines, power lines, or machinery or equipment owned by the Corporation regardless of their nature, use, or manner of attachment or affixation to the land, building, or other structure upon or in which the same may be located. The

Other public corporations financed, etc., by KFC.

exemptions provided for in the preceding sentence with respect to taxation (which shall, for all purposes, be deemed to include sales, use, storage, and purchase taxes) shall be construed to be applicable not only with respect to the Corporation but also with respect to any other public corporation which is now or which may be hereafter wholly financed and wholly managed by the Corporation. Such exemptions shall also be construed to be applicable to loans made, and personal property owned by the Corporation or such other corporations, but such exemptions shall not be construed to be applicable in any State to any buildings which are considered by the laws of such State to be personal property for taxation purposes. Nothwithstanding any other provision of law or any privilege or consent to tax expressly or impliedly granted thereby, the shares of preferred stock of national banking associations, and the shares of preferred stock, capital notes, and debentures of State banks and trust companies, acquired prior to July 1, 1947. by the Corporation, and the dividends or interest derived therefrom by the Corporation, shall not, so long as the Corporation shall continue to own the same, be subject to any taxation by the United States, by any Territory, dependency or possession thereof, or the District of Columbia, or by any State, county, municipality, or local taxing authority, whether now, heretofore, or hereafter imposed, levied, or assessed, and whether for a past, present, or future taxing period.

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“Sec. 9.

In the event of termination of the powers granted to the

Termination of powers prior to expiration of succession.

Corporation by section 4 of this Act prior to the expiration of its succession as provided in section 3, the board of directors shall, except as otherwise herein specifically authorized, proceed to liquidate its assets and wind up its affairs. It may with the approval of the Secretary of the Treasury deposit with the Treasurer of the United States as a special fund any money belonging to the Corporation or from time to time received by it in the course of liquidation, for the payment of its outstanding obligations, which fund may be drawn upon or paid out for no other purpose. Any balance remaining after the liquidation of all the Corporation’s assets and after provision has been made for payment of all legal obligations shall be paid into the Treasury of the United States as miscellaneous receipts. Thereupon the Corporation shall be dissolved and its capital stock shall be canceled and retired.

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“Sec. 10.

If at the expiration of the succession of the Corporation, its board of directors shall not have completed the liquidation of its assets and the winding up of its affairs, the duty of completing such liquidation and winding up of its affairs shall be transferred to the Secretary of the Treasury, who for such purpose shall succeed to all the powers and duties of the board of directors under this Act. In such event he may assign to any officer or officers of the United States in the Treasury Department the exercise and performance, under his general supervision and direction, of any such powers and duties.

Report to Congress, etc.

When the Secretary of the Treasury shall find that such liquidation will no longer be advantageous to the United States and that all of the Corporation’s legal obligations have been provided for, he shall retire any capital stock then outstanding, pay into the Treasury as miscellaneous receipts the unused balance of the moneys belonging to the Corporation, and make a final report to the Congress. Thereupon the Corporation shall be deemed to be dissolved.

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“Sec. 11.

(a)(a)

Whoever makes any statement knowing it to be false, or whoever willfully overvalues any security, for the purpose of obtaining for himself or for any applicant any loan, or extension thereof by removal, deferment of action or otherwise, or the acceptance, release, or substitution of security therefor, or for the purpose of influencing in any way the action of the Corporation, or for the purpose of obtaining money, property, or anything of value, under this Act, shall be punished by a fine of not more than $5,000 or by imprisonment for not more than two years, or both.

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“(b)“(b)

Whoever (1) falsely makes, forges, or counterfeits any note, debenture, bond, or other obligation, or coupon, in imitation of or purporting to be a note, debenture, bond, or other obligation, or coupon, issued by the Corporation; or (2) passes, utters, or publishes or attempts to pass, utter or publish, any false, forged or counterfeited note, debenture, bond, or other obligation, or coupon, purporting to have been issued by the Corporation, knowing the same to be false, forged, or counterfeited; or (3) falsely alters any note, debenture, bond, or other obligation, or coupon, issued or purporting to have been issued by the Corporation; or (4) passes, utters, or publishes, or attempts to pass, utter, or publish, as true any falsely altered or spurious note, debenture, bond, or other obligation, or coupon, issued or purporting to have been issued by the Corporation, knowing the same to be falsely altered or spurious, or any person who willfully violates any other provision of this Act, shall be punished by a fine of not more than $10,000, by imprisonment for not more than five years, or both.

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“(c)“(c)

Whoever, being connected in any capacity with the Corporation, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise entrusted to it; or (2) with intent to defraud the Corporation or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or statement of or to the Corporation, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof; or (3) with intent to defraud participates, shares, receives directly or indirectly any money, profit, property, or benefit through any transaction, loan, commission, contract, or any other act of the Corporation; or (4) gives any unauthorized information concerning any future action or plan of the Corporation which might affect the value of securities, or having such knowledge, invests or speculates, directly or indirectly, in the securities or property of any company, bank, or corporation receiving loans or other assistance from the Corporation, shall be punished by a fine of not more than $10,000 or by imprisonment for not more than five years, or both.

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“(d)“(d)

No individual, association, partnership, or corporation shall

Restriction on use of name.

use the words ‘Reconstruction Finance Corporation’ or a combination of these three words, as the name or a part thereof under which lie or it shall do business. Every individual, partnership, association, or corporation violating this prohibition shall be guilty of a misdemeanor and shall be punished by a fine of not exceeding $1,000 or imprisonment not exceeding one year, or both.

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“(e)“(e)

The provisions of sections 112, 113, 114, 115, 116, and 117 of the Criminal Code of the United States (U. S. C., title 18, ch. 5, secs. 202 to 207, inclusive), insofar as applicable, are extended to apply to contracts

35 Stat. 1108, 1109.

or agreements with the Corporation under this Act, which for the purposes hereof shall be held to include loans, advances, discounts, and rediscounts; extensions and renewals thereof; and acceptances, releases, and substitutions of security therefor.

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“Sec. 12.

The Corporation is authorized to exercise the functions, powers, duties, and authority transferred to the Corporation by Public Law 109, Seventy-ninth Congress, approved June 30, 1945, but only

59 Stat. 810.

15 U. S. C. § 606b note.

with respect to programs, projects, or commitments outstanding on June 30, 1947.

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“Sec. 13.

If any provision of this Act or the application of such

Separability of provisions.

provision to any person or circumstances shall be held invalid, the validity of the remainder of this Act, and the applicability of such provision to other persons or circumstances, shall not be affected thereby.”

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Sec. 201.

No provision of this Act shall be construed so as to prevent

Prior disbursement of funds on purchase of securities, etc.

the Corporation from disbursing funds on purchases of securities and obligations, on loans made, or on commitments or agreements to make such purchases or loans, or on liabilities incurred, pursuant to law prior to the effective date of this Act.

Sec. 202.

The succession of U. S. Commercial Company, a corporation

Extension of succession of U. S. Commercial Co.

54 Stat. 573, 961.

15 U. S. C. § 606b (3).

created by the Reconstruction Finance Corporation pursuant to section 5d (3) of the Reconstruction Finance Corporation Act, as amended, is hereby extended through June 30 1948.

Sec. 203.

All assets and liabilities of every kind and nature, together

Transfer of assets, etc., of The RFC Mortgage Co.

with all documents, books of account, and records, of The RFC Mortgage Company, a corporation organized under the laws of the State of Maryland, all the capital stock of which is owned and held by the Reconstruction Finance Corporation, shall be transferred to the Reconstruction Finance Corporation. With respect to the assets, liabilites, and records transferred, “Reconstruction Finance Corporation” for all purposes is hereby substituted for “The RFC Mortgage Company”, and no suit, action, or other proceeding lawfully commenced by or against such corporation shall abate by reason of the enactment of this Act, but the court, on motion or supplemental petition filed at any time within twelve months after the date of such enactment, showing a necessity for the survival of such suit, action, or other proceeding to obtain a determination of the questions involved, may allow the same to be maintained by or against the Reconstruction Finance Corporation.

Sec. 204.

The Federal Loan Agency, created by Reorganization Plan Numbered 1 pursuant to the provisions of the Reorganization Act of 1939, approved April 3, 1939, is hereby abolished, and all its property and records are hereby transferred to the Reconstruction Finance Corporation.

Sec. 205.

The Reconstruction Finance Corporation is authorized and directed to transfer as soon as practicable after the effective date of this Act, to the Secretary of the Treasury, and the Secretary of the Treasury is authorized and directed to receive, all of the stock of the Federal home-loan banks held by the Reconstruction Finance Corporation. The Secretary of the Treasury shall cancel notes of the Reconstruction Finance Corporation, and sums due and unpaid upon or in connection with such notes at the time of such cancellation, in an amount equal to the par value of the stock so transferred.

Sec. 206.

Section 201 (e) of the Emergency Relief and Construction Act of 1932, approved July 21, 1932 (47 Stat. 709), as amended, and section 84 of the Farm Credit Act of 1933, approved June 16,

47 Stat. 713; 48 Stat. 273.

12 U. S. C. §§ 1148, 1148a.

1933 (48 Stat. 257), as amended, are hereby further amended by striking out the name “Reconstruction Finance Corporation” wherever it appears in such sections and substituting therefor the name “Farm Credit Administration”.

Repeals.

The following Acts and portions of Acts are hereby repealed:

Sec. 207.

The liquidation of the affairs of the Smaller War Plants

Abolition of Smaller War Plants Corp., etc.

Corporation administered by the Reconstruction

50 U. S. C. app. § 1104 note.

Finance Corporation pursuant to Executive Order 9665 shall be carried out by the Reconstruction Finance Corporation, notwithstanding the provisions of the last paragraph of section 5 of the First War Powers Act, 1941.

55 Stat. 839.

50 U. S. C. app. § 605.

The Smaller War Plants Corporation is hereby abolished.

Sec. 208.

Sec. 209.

During the period between June 30, 1947, and the date

Authority to incur and pay administrative expenses.

of enactment of legislation making funds available for administrative expenses for the fiscal year ending June 30, 1948, the Corporation is authorized to incur, and pay out of its general funds, administrative expenses in accordance with laws in effect on June 30, 1947, such obligations and expenditures to be charged against funds when made available for administrative expenses for the fiscal year 1948.

Sec. 210.

This Act shall take effect as of midnight June 30, 1947.

Effective date.