Page:United States Statutes at Large Volume 40 Part 1.djvu/527

 SIXTY—FIFTH CONGRESS. Sess. II. Ch. 45. 1918. 509 reserve bank of the district in which the borrowing institution is _ located, but such rate of interest shall in no case be greater than the L“"“°“°"'· average rate receivable by the borrowinglsinstitution on its loans and investments made during the six 'mont prior to the date of the advance, except that where the average rate so receivable by the borrowing institution is less than such rate of discount for ninet - day commercial paper the rate of interest on such advance shall [Ye equal to such rate of discount. The Corporation shall retain power Ad°m°¤¤*=¤¢¤*i*r· to require additional security afany time. _ Sec. 9. That the Corporation shall be empowered and authorized, bu‘l1°i¤li?°c°?a?>$¥ii°$lZ0§Y in exceptional cases, to make advances directly to any rson, firm, Qgggujjgge fyatP*°*°°¤· corporation, or association, conducting an establishedw and going ` business in the United States, whose operations shall be necessary or °°“‘““°°$· contributory to the prosecution of the war (but only for the purpose of conducting such usiness in the United States and only when in the opinion o the board of directors of the Corporation such person, firm, coriporation, or association is unable to obtain funds upon reasonab e terms through banking channels or from the general public), for periods not exceeding live years from the respective dates of such advances, u on such terms, and subject to such rules and regulations as may be prescribed by the board of directors of the l_ Corporation. In no case shall the aggregate amount of the advances A“'°‘°°° 'mm ma e under this section exceed at any one time an amount equal to twelve and one-half r centum of the sum of (1) the authorized capital stock of the lC?>rporation plus (2) the aggre te amount of bonds of the Corporation authorized to be outstangiig at any one swam , time when the capital stock is fully paid in. Every such advance "°°°"°d` shall be secured by adequate security of such character as shall be prescribed by the card of directors of a value at the time of such advance (as estimated and determined by the board of directors), Empam equal to (except in case of an advance made to a railroad in thedplqlssession and control of the President, for the urpose of m g additions, betterments or road extensions to such railroad) at least gne lhurglred  twerrgzly-figs per centurlpdpf the amount advanced t e o oration. e o oration s retain ower to uire adrditionalrgecurity at any tilnlie. The rate of intdiest chargild on m•i¤iiti°r°st mw"` any such advance shall not be less than one per centum per annum in excess of the rate of discount for ninetidiy commercial gaper prevailing at the time of such advance at the ederal reserve ank ‘ of the district in which the borrower is located. Limit of mvmm to Sec. 10. That in no case shall the aggregate amount of the advances one pm¤¤,m. made under this title to any one person,, corporation, or association exceed at any one time an amount equal to ten per centum of Em um the authorized capital stock of the Corporation, but this section shall P ' not apply in the case of an advance made to a railroad in the (possession and control of the President; for the purpose of making ad itions, betterments or road extensions to such railroad. Dming in mn Sec. 11. That the Corporation shall be empowered and authorized 1»¤as,tm.,¤¤¢¤¤raZil to subscribe for, acquire, and own, buy, sell, and deal in bonds and obligations of the United States issued or converted after September twenty-fourth, nineteen hrmdred and seventeen, to such extent as the board of directors, with the approval of the Secretary of the Treasmy, may from time to time determine. mmm bwmd Sec. 12. That the Corporation shall be empowered and authorized by coqmmleu. to 1SSue and have outstanding at any one time its bonds in an amormt Limit aggregating not more than six times its paid-in capital, such bonds ` to mature not less than one (year nor more than live years from the wms,_ respective dates of issue, an to bear such rate or rates of interest, an_ may be redeemable before maturity at the option of the Corpo— ratron, as may be determined by the board of directors, but such rate