Page:United States Statutes at Large Volume 47 Part 1.djvu/752

 728 72d CONGRESS. SESS. I. CH. 522. JULY 2 2,1932. provisions of section 10 (c) requiring the amount of stock held by such member to equal at least one-twelft h of the outstanding advances to such member. (d) Stock subscriptions other than by the United States shall be paid' for in cash, and shall be paid for at the time of application therefor, or, at the election of the subscribe r, in installmen ts, but not less than one-fourth of the total amount payable shall be paid at the time of filing application, and a further sum of not less than one-fourth of such total shall have been paid at the end of each succee ding p eriod of fou r mont hs. (e) If the law of the State under which an institution described in section 4 operates does not permit such institution to subscribe for stock in the Federal Home Loan Bank but if such institution has the power to borrow money and give security therefor, the board may permit such institution to obtain advances on the same terms and conditions and subject to the same limitations as members (except that such institution shall not be required, during the period during which advances may be made under this subsection, to sub- scribe for s tock i n the Federa l Home Loan B ank or to de posit such stock as collateral security as required in section 10), but such insti- tution s hall be r equired t o keep on deposit such sec urity in addition to home mortgages, for such advances, as the board shail determine which shall equal in value 1 per centum of the aggregate unpaid princi pal of such instit ution' s home mortga ge loa ns (bu t not less than $1,500). No adva nce to an y suc h ins titu tion shall be made under authority of this subsection after the State in which the insti- tution is organized enacts legislation authorizing such institution to subscribe for Federal Home Loan Bank stock or after the expiration of the next regular session of the legislature of such State Ligtilaation and tar. beg un urination if authority after the enactment of this Act, whichever is earlier. If, at the end withheld. of such time such institution is not authorized to subscribe for stock ,, the bank shall pr oceed to liquidate the ind ebtedness of such institu- tion to the bank and to te rminate i ts relat ions with such ins titution. No adv ance s hall b e made under autho rity of this subsec tion w hich matures more than one year after the advance is made, but the bank may renew any such advance for yearly periods, or less, thereafter. The maturity of no advance authorized under this subsection shall be later than the time of the enactment of legislation authorizing such inst itution t o become a member or the ex piration of such s ession of the legislature of the State, whichever is earlier. (f ) The Secret ary of the T reasur y shal l subsc ribe, on beh alf of the United States, for such part of the minimum capital of each Federal Home Loan Bank as is not subscribed for by members under subsection (c) of this section within thirty days after books have been opened for stock subscriptions as provided in subsection (a). Payment s for stock subscr iption s by t he Secr etary of the Treas ury shall be subject to, call in whole or in part by the board, with the approval of the Secretary of the Treasury, at such time or times as may be deemed advisable. Each Federal' Home Loan Bank receiving such payments shall issue receipts therefor to the Secretary of the Treasury, and such receipts shall be evidence of the stock ownership of the United States. The aggregate amount expended by the United States for the purchase of stock under this Act shall not exceed $125,000,000. The Reconstruction Finance Corporation Act, approved January 22, 1932, is amended by adding at the end of section 2 thereof the following new paragraph "In order to enable the Secretary of the Treasury to make pay- ments upon stock of Federal Home Loan Banks subscribed for by him in accordance with the Federal Home Loan Bank Act, the sum Cash payment for stock subscriptions . Ins tal lme nt pay- ments . Institutions where State laws d o not per- mit stock purchase. Admitted to borrow- ing privileges on speci- fied terms, etc . Securi ty requ ired . Permissive only pending State authori- zation . Limitation on ad- vance s. Unsubscribed por- tions of minimum cap- ital to be taken over by Secretary of the Treas- ury . Such subscriptions subject to call by board . Receipts to issue; effect . Sum for stock pur- chase limited . Reconstruction Fi- nance Corporation Act, amendment . Ante, p. 5 . Necessary funds for payment to be fur- nished by corporation.