7 U.S.C. § 1504 — Capital stock of Corporation

Page 799 TITLE 7—AGRICULTURE § 1504 902 of Title 2, The Congress, and section 1014 of Title 18, Crimes and Criminal Procedure, repealing sections 1446i and 1508a of this title, enacting provisions set out as notes under sections 1501, 1506, and 1508 of this title and sections 901 and 902 of Title 2, and repealing provi- sions set out as a note under section 1421 of this title] and the amendments made by this title shall become effective on the date of enactment of this Act [Oct. 13, 1994] and shall apply to the provision of crop insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) beginning with the 1995 crop year. With respect to the 1994 crop year, the Federal Crop Insurance Act (as in effect on the day before the date of enactment of this Act) shall continue to apply.’’ § 1503. Federal Crop Insurance Corporation; cre- ation; offices To carry out the purposes of this subchapter, there is hereby created as an agency of and within the Department a body corporate with the name ‘‘Federal Crop Insurance Corpora- tion’’. The principal office of the Corporation shall be located in the District of Columbia, but there may be established agencies or branch of- fices elsewhere in the United States under rules and regulations prescribed by the Board. (Feb. 16, 1938, ch. 30, title V, § 503, 52 Stat. 72; Pub. L. 103–354, title I, § 102(b)(1), (4)(A), (B), Oct. 13, 1994, 108 Stat. 3180, 3181; Pub. L. 110–234, title XII, § 12033(c)(2)(B), May 22, 2008, 122 Stat. 1405; Pub. L. 110–246, § 4(a), title XII, § 12033(c)(2)(B), June 18, 2008, 122 Stat. 1664, 2167.) Editorial Notes CODIFICATION Pub. L. 110–234 and Pub. L. 110–246 made identical amendments to this section. The amendments by Pub. L. 110–234 were repealed by section 4(a) of Pub. L. 110–246. AMENDMENTS 2008—Pub. L. 110–246, § 12033(c)(2)(B), substituted ‘‘this subchapter’’ for ‘‘this chapter’’. 1994—Pub. L. 103–354 in first sentence struck out ‘‘of Agriculture’’ after ‘‘Department’’ and ‘‘(herein called the Corporation)’’ before period at end, and in second sentence struck out ‘‘of Directors’’ after ‘‘Board’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Amendment of this section and repeal of Pub. L. 110–234 by Pub. L. 110–246 effective May 22, 2008, the date of enactment of Pub. L. 110–234, see section 4 of Pub. L. 110–246, set out as an Effective Date note under section 8701 of this title. EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–354 effective Oct. 13, 1994, and applicable to provision of crop insurance under Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) begin- ning with 1995 crop year, with such Act, as in effect on the day before Oct. 13, 1994, to continue to apply with respect to 1994 crop year, see section 120 of Pub. L. 103–354, set out as a note under section 1502 of this title. Executive Documents TRANSFER OF FUNCTIONS Under authority of Ex. Ord. No. 9577, June 29, 1945, Secretary of Agriculture consolidated administration of program of Federal Crop Insurance Corporation in Production and Marketing Administration by Memo- randum 1118, Aug. 18, 1945. 1946 Reorg. Plan No. 3, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100, set out in the Appendix to Title 5, Government Organization and Employees, transferred administration of program of Federal Crop Insurance Corporation to Secretary of Ag- riculture. In his letter to Congress President stated that purpose of this transfer was to permit Secretary of Agriculture to continue consolidation already effected in Production and Marketing Administration. Federal Crop Insurance Corporation consolidated with other agencies into Agricultural Conservation and Adjustment Administration for duration of war, see Ex. Ord. No. 9069. § 1504. Capital stock of Corporation (a) Subscription by United States The Corporation shall have a capital stock of $500,000,000 subscribed by the United States of America, payment for which shall, with the ap- proval of the Secretary, be subject to call in whole or in part by the Board. (b) Appropriations There is authorized to be appropriated such sums as are necessary for the purpose of sub- scribing to the capital stock of the Corporation. (c) Issuance of stock to Secretary of the Treasury Receipts for payments by the United States of America for or on account of such stock shall be issued by the Corporation to the Secretary of the Treasury and shall be evidence of the stock ownership by the United States of America. (d) Cancellation of receipts; nonliability of Cor- poration Within thirty days after September 26, 1980, the Secretary of the Treasury shall cancel, with- out consideration, receipts for payments for or on account of the stock of the Corporation out- standing on September 26, 1980, and such re- ceipts shall cease to be liabilities of the Cor- poration. (Feb. 16, 1938, ch. 30, title V, § 504, 52 Stat. 72; Aug. 25, 1949, ch. 512, §§ 4, 6, 63 Stat. 665; Pub. L. 95–47, June 16, 1977, 91 Stat. 228; Pub. L. 95–181, § 1, Nov. 15, 1977, 91 Stat. 1373; Pub. L. 96–365, title I, § 101, Sept. 26, 1980, 94 Stat. 1312; Pub. L. 103–354, title I, § 102(b)(2), (4)(C), Oct. 13, 1994, 108 Stat. 3180, 3181.) Editorial Notes AMENDMENTS 1994—Subsec. (a). Pub. L. 103–354, § 102(b)(2)(A), (4)(C), struck out ‘‘of Agriculture’’ after ‘‘Secretary’’ and ‘‘of Directors of the Corporation’’ after ‘‘Board’’. Subsec. (d). Pub. L. 103–354, § 102(b)(2)(B), struck out ‘‘Federal Crop Insurance’’ before ‘‘Corporation out- standing’’. 1980—Subsec. (a). Pub. L. 96–365, § 101(a), substituted ‘‘$500,000,000’’ for ‘‘$200,000,000’’. Subsec. (d). Pub. L. 96–365, § 101(b), added subsec. (d). 1977—Subsec. (a). Pub. L. 95–181 substituted ‘‘$200,000,000’’ for ‘‘$150,000,000’’. Pub. L. 95–47 substituted ‘‘$150,000,000’’ for ‘‘$100,000,000’’. 1949—Subsec. (a). Act Aug. 25, 1949, § 4, struck out sec- ond sentence relating to restoration of impairment of capital stock. Subsec. (b). Act Aug. 25, 1949, § 6, authorized appro- priations for subscribing to corporation’s capital stock in order to offset losses suffered prior to time program was placed on an experimental basis in 1947. Page 800 TITLE 7—AGRICULTURE § 1504a Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–354 effective Oct. 13, 1994, and applicable to provision of crop insurance under Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) begin- ning with 1995 crop year, with such Act, as in effect on the day before Oct. 13, 1994, to continue to apply with respect to 1994 crop year, see section 120 of Pub. L. 103–354, set out as a note under section 1502 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–365, title I, § 112, Sept. 26, 1980, 94 Stat. 1319, provided that: ‘‘Except as otherwise provided in this Act, the provisions of this Act amending the Federal Crop Insurance Act [amending sections 1504, 1505 to 1507, 1508, and 1518 of this title and repealing section 1515 of this title] shall become effective on the date of enactment of this Act [Sept. 26, 1980].’’ Pub. L. 96–365, title I, § 101(a), Sept. 26, 1980, 94 Stat. 1312, provided that the amendment made by section 101(a) is effective Oct. 1, 1980. CANCELLATION OF OUTSTANDING RECEIPTS FOR STOCK IN EXCESS OF $27,000,000 Act Aug. 25, 1949, ch. 512, § 5, 63 Stat. 665, provided that: ‘‘The Secretary of the Treasury is authorized and directed to cancel, without consideration, outstanding receipts for payments for or on account of the stock of the Corporation in excess of $27,000,000.’’ INSTITUTION OF EXPANDED PROGRAM; PAYMENT OF COST FOR FISCAL YEAR 1950 Act Aug. 25, 1949, ch. 512, § 11, 63 Stat. 666, provided that: ‘‘The expanded program authorized herein [sec- tions 1504, 1505, 1506, 1507, and 1508 of this title] shall be instituted beginning with the 1950 crop year, the addi- tional cost for fiscal year 1950 to be financed, pending the appropriation of supplemental funds, from any ap- propriation available for operating and administrative expenses of the Corporation for such fiscal year.’’ Executive Documents TRANSFER OF FUNCTIONS Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note set out under section 1503 of this title. Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Ad- justment Administration, see note set out under sec- tion 1503 of this title. § 1504a. Capitalization of Corporation The payment for capital stock in the Federal Crop Insurance Corporation shall be effected by transfer of funds on the books of the Treasury Department to the credit of the Corporation. (June 27, 1940, ch. 437, title I, 54 Stat. 640.) Editorial Notes CODIFICATION Section was not enacted as part of the Federal Crop Insurance Act which comprises this subchapter. Executive Documents TRANSFER OF FUNCTIONS Administration of program of Federal Crop Insurance Corporation transferred to Secretary of Agriculture by 1946 Reorg. Plan No. 3, § 501, eff. July 16, 1946, 11 F.R. 7877, 60 Stat. 1100. See note set out under section 1503 of this title. Wartime consolidation of Federal Crop Insurance Corporation into Agricultural Conservation and Ad- justment Administration, see note set out under sec- tion 1503 of this title. § 1505. Management of Corporation (a) Board of Directors (1) Establishment The management of the Corporation shall be vested in a Board of Directors subject to the general supervision of the Secretary. (2) Composition The Board shall consist of only the following members: (A) The manager of the Corporation, who shall serve as a nonvoting ex officio member. (B) The Under Secretary of Agriculture re- sponsible for the Federal crop insurance pro- gram. (C) One additional Under Secretary of Ag- riculture (as designated by the Secretary). (D) The Chief Economist of the Depart- ment of Agriculture. (E) One person experienced in the crop in- surance business. (F) One person experienced in reinsurance or the regulation of insurance. (G) Four active producers who are policy holders, are from different geographic areas of the United States, and represent a cross- section of agricultural commodities grown in the United States, including at least one specialty crop producer. (3) Appointment of private sector members The members of the Board described in sub- paragraphs (E), (F), and (G) of paragraph (2)— (A) shall be appointed by, and hold office at the pleasure of, the Secretary; (B) shall not be otherwise employed by the Federal Government; (C) shall be appointed to staggered 4-year terms, as determined by the Secretary; and (D) shall serve not more than two consecu- tive terms. (4) Chairperson The Board shall select a member of the Board to serve as Chairperson. (b) Vacancies Vacancies in the Board so long as there shall be four members in office shall not impair the powers of the Board to execute the functions of the Corporation, and four of the members in of- fice shall constitute a quorum for the trans- action of the business of the Board. (c) Compensation The Directors of the Corporation who are em- ployed in the Department shall receive no addi- tional compensation for their services as such Directors but may be allowed necessary trav- eling and subsistence expenses when engaged in business of the Corporation, outside of the Dis- trict of Columbia. The Directors of the Corpora- tion who are not employed by the Federal Gov- ernment shall be paid such compensation for their services as Directors as the Secretary shall determine, but such compensation shall not ex- ceed the daily equivalent of the rate prescribed