7 U.S.C. § 1504a — Capitalization of Corporation

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