Page:United States Statutes at Large Volume 47 Part 1.djvu/751

 72d CONGRESS. SESS. I. CH. 522. JULY 22,1932 . 727 (c) Notwithstanding the provisions of clause (2) of subsection Building, etc ., as- socia tions not under (a) of this sec tion req uiring i nspectio n and re gulation under l aw State - regulat ion ali - as a condition with respect to eli bilit for memberhi an buildin gable i subjecting to p gi y p, ~ g prescrb ed inspectio n, and loan association which would be eligible to become a member of a Federal Home Loan Bank except for the fact that it is not subject to inspection and regulation under the banking laws or similar laws of the State in which such association is organized shall, upon subjecting itself to such inspection and regulation as the board shall prescribe, be eligible to become a member. d An home owner who comes within the limits of this Act Ho me owners may obtain mortga ge money and who is unable to obtain mortgage money from any other source if una bl e elsewbere. may obtain same from any ba nk or anized under this Act : Pro- L Li io m s itaii on vided, That this subsection shall note effective when the Federal Governme nt has h ad its s tock ret ired. SEC. 5. No institution shall be admitted to or retained in member- Ho me mortgage loa ns ship, or granted the privileges of nonmember borrowers, if the com- Ins t. itution disquall- bined total of t he amounts paid to it for intere st, commission, b onus fled it its charges to discount, premium, and other similar charges, less a proper deduction legal rate, exc eed for all dividends, refunds, and cash credits of all kinds creates an actual net cost to the home owner in excess of the maximum legal rate of interest or, in case there is a lawful contract rate of interest con tr act interest applicable to such transactions, in excess of such rate (regardless of rate' any exemption from usury laws), or, in case there is no legal rate of interest or lawful contract rate of interest applicable to such transactions, in excess of 8 per centum per annum in the State where such property is located. This section applies only to home mortgage loans made after the enactment of this Act. Fed er al Hom e Loa n CAP IT AL OF FEDERAL HOME LOAN BANKS AND SUBSCRIPTIONS THERETO Banks. SEC. 6. (a) As soon -as practicable after the enactment of this Act, Minimum capital' the bo ard, with the approval of the Secretary of the T reasu ry, shall determine the minimum capital of each Federal Home Loan Bank which shall be not less than $5,000,000. The board shall, as Subscriptions. soon as practicable thereafter, open books in each district established under section 3 for subscription to the capital stock of the Federal Home Loan Bank of the district. (b) The capital stock of each Federal Home Loan Bank shall be Shares of stock. divided into shares ofa par value of $100 each. The mi nimu m capital stock shall be issued at par. Stock issued thereafter shall be issued at such price not less than par as may be fixed by the board. (c) The original stock subscription for each institution eligible to orig inal inve stme nt. become a member under section 4 shall be an amount equal to 1 per centum of the aggregate of the unpaid principal of the subscriber's home mortgage loans, but not less than $1,500. The board shall from Adjustments of time to time adjust the amount of stock held by each member so that, amounts' as nearly as possible, such member shall at all times have invested in the stock of the Federal Home Loan Bank at least an amount calculated in the manner provided in the preceding sentence (but not less than $1,500). If the board finds that the investment of any eatermember'shold- member in stock is greater than that reqwired under this. section, rugs maybe reduced. upon application of such member, the bank shall pay such member for each share of stock in excess of the amount so required an amount equal to the value of such stock, or, at the election of the bank, the whole or any part of the payments which would be so made shall be credited upon the indebtedness of the member to the bank. In st Paaymentf orcanceled either such event, stock equal in value to the amount of the payment or credit, or both, as the case may be, shall be surrendered and canceled. No share of stock shall be surrendered and canceled if the Restriction. s effect of such surrender and cancellation would be to violate the