Page:United States Statutes at Large Volume 47 Part 1.djvu/753

 12d CONGRESS. SESS. I. CH. 522. JULY 22, 1932. 729 of $125,000,000, or so much thereof as may be necessary for such purpose, is hereby allocated and made available to the Secretary of the Treasury out of the capital of the corporation and/or the proceeds of notes, debentures, bonds, and other obligations issued by the corporation. For the purposes of this paragraph, the corporation Iss ued. etc ., to be shall issue such notes, bonds, debentures, and other obligations as may be necess ary ." Capitalstockheldby g) After the amount of capital of a Federal Home Loan Bank united states. paid in by members equals the amount paid in by the Secretary of tbo bbedrin~by whe the Treasury under subsection (f), such bank shall apply annually bars is at par . to the pa yment and retireme nt of the shares o f the cap ital stoc k held by the Un ited Stat es, 50 pe r centum of all su ms therea fter paid in as capital until al l such capital st ock held by the United States i s retired Retirement at any at par. Stock held by the United States may at any time, in the time if resources per. discretion of the Federal Home Loan Bank, and with the approval mit . of the board, be paid off at par and retired in whole or in part ; and the board may at any time require such stock to be paid off at par and retired in whole or in part if in the opinion of the board the Federa l Home Loan Bank h as res ources availa ble th erefor : Pr ov id ed, Py y me nt of divi- That accumulated dividends, as provided in subsection (k), have dends. been paid. Unauthorize d trans- (h) Stock subscribed for otherwise than by the United States, and fers, etc. the right to the proceeds thereof, shall not be transferred or hypothe- cated except as hereinafter provided and the certificates therefor shall so state. Withdrawals from (i) Any member may withdraw from membership in a Federal membership. Home Loan Bank six months after filing with the board written notice of intention so to do, and the board may, after hearing, remove any member from membership, or deprive any nonmember borrower of the p rivilege of obtain ing furth er advan ces, if, in the op inion of the b oard, such m ember or non member borrow er has faile d to c omply with any provision of this Act or the regulations of the board made pursuant thereto or if, in the opinion of the- board, such member or nonmember borrower is insolvent. In any such case, ness to be the indebtedness of such member or nonmember borrower to the liquida ted. Fede ral Ho me Loa n Bank shall be li quidate d, and the c apital stock in the Federal Home Loan Bank owned by such member shall be surrendered and canceled. Upon the liquidation of such indebtedness such membe r or n onmemb er bor rower shall b e enti tled t o the return atReturn of collateral, of its collateral, and, upon surrender and cancellation of such capital stock, the member shall receive a sum equal to its cash paid sub- Exception. scriptions for the capital stock surrendered, except that if at any time the board finds that the paid-in capital of a Federal Home Loan Bank is or is likely to be impaired as a result of losses in or depre- ciation of the assets held, the Federal Home Loan Bank shall on the order of the board withhold from the amount to be paid in retirement of the stock a pro rata share of the amount of such impairment as determined by the board. Transfer of stock . (j) A Federal Home Loan Bank may, with the approval of the board, permit the disposal of stock to another member, or to an institution eligible to become a member, but only to enable such an institution to become a member. Dividends. (k) All stock of any Federal Home Loan Bank shall share in di vidend distr ibutio ns wit hout p refere nce, ex cept t hat st ock su b- Stock held by United scribed for by the United States shall be entitled to dividends at states. a rate of 2 per centum per annum cumulative from the date of investmen t but in any case in which the rate of divide nd is in excess