Page:United States Statutes at Large Volume 47 Part 1.djvu/750

 726 72d CONGRESS. SESS. I. CH. 522 . JU LY 22,1932. "Unpaid principal ." (7 ) The term " unpaid princ ipal," when used in respe ct of a loan secured b a home mortgage means the principal thereof less the sum of (1) payments made on such principal, and (2) in cases where shares or stock are pledged as security for the loan, the payments made on such shares or stock plus earnings or dividends apportioned or credited thereon. st "Amortized" memg (8) An "amortized" or "installment" home mortgage loan shall, gage loan. for the purposes of this Act, be a home mortgage loan to be repaid or liquidated in not less than eight years by means of regular weekly, monthly, or quarterly payments made directly in reduction of the debt or upon stock or shares pledged as collateral for the repayment of such loan. "Nonmember bor- (9) The term "nonmember borrower" includes an institution rower, authorized to secure advances from a Federal Home Loan Bank under the provisio ns of sec tion 6 ( e) . Federal Home Loan Banks . FED ERAL HOM E L OAN BANK S pesignatsd number SEC. 3. As soon as practicable the board shall divide the con- ba nk ki i each district tinental United States, Puerto Rico, the Virgin Islands, and the to be created . Territories of Alaska and Hawaii into not less than eight nor more than twelve districts . Such districts shall be apportioned with due regard to the conve nience and c ustoma ry cour se of busine ss of the institutions eligible to and likely to subscribe for stock of a Federal Home Loan Bank to be formed under this Act, but no such district shall contain a fractional part of any State . The districts thus created may be readjusted and new districts may from time to time be create d by the board, no t to exce ed twelve in all. Such dis tricts shall be known as Federal Home Loan Bank districts and may be designated by number. As soon as practicable the board shall estab- lish in each district, a Federal Home Loan Bank at such city as may be designated by the board. Its title shall include the name of the city at which it is established. Member and non- ELI GIBI LITY OF MEMB ERS AND NONM EMBE R BO RROW ERS member borrowers. Eligible institutions. SEC. 4 . (a) Any bu ilding and l oan as sociat ion, sa vings and lo an association, cooperative bank, homestead association, insurance com- pany, or savings bank, shall be eligible to become a member of, or a conditions. nonmember borrower of, a Federal Home Loan Bank if such institu- tion (1) is duly organized under the laws of any State or of the United States ; (2) is subjec t to insp ection an d regulat ion under the banking laws or under similar laws, of the State or of the United States ; and ~3) makes such home mortgage loans as, in the judg- ment of the board, are long-term loans (and in the case of a savings bank, if, in the j udgment o f the boa rd, its t ime depos its, as defined in section 19 of the Federal Reserve Act, warrant its making such Disguaiificatiops . loans) . No institution shall be eligible to become a member of, or a nonmember borrower of, a Federal Home Loan Bank if, in the judgment of the board, its financial condition is such that advances may not safely be made to such institution or the character of its management or its home-financing policy is inconsistent with sound and economical home financing, or with the purposes of this Act . Membership and (b) An institution eligible to become a member or a nonmember privilege restrict ons . borrower under this section may become a member only of, or secure advances from, the Federal Home Loan Bank of the district in which is located the institution's principal place of business, or of the bank of a district adjoining such district if demanded by convenience and then only with the approval of the board.