Page:United States Statutes at Large Volume 47 Part 1.djvu/754

 730 Management of banks. To be v ested in board of direc tors. Qualif ications, etc. Appoin tment of two by board. Terms . Division of nine di- re cto rs i nto three groups . App oint ment , etc. Successors to be ele ct ed for three years. Bank membership to be div ided int o three group Directors elected by each class. Regu lations govern- ing nominations and elect ions. Filling vacancies . Chairman and vice chai rman to be desig - nated. Filling places where stock held is lass than $1 ,000 ,000 . Co mpe nsat ion and expenses. 72d CONGRESS. SESS. I. CH. 522. JULY 22, 1932. of 2 per centum, the stock subscribed for by the United States shall be entitled to dividends at a rate not in excess of that paid on other stock. MANAGEMENT OF BANKS SEC. 7. (a) The management of each Federal Home Loan Bank shall be vested in a board of eleven directors, all of whom shall be citizens of the United States and bona fide residents of the district in which such bank is located. (b) Two of slich directors shall be appointed by the board. The terms of suc h directors sha ll expire one year and two y ears, respectively, from the end of the calendar year 1932, and their succes- sors shall be appointed by the board for terms of three years. (c) Nine o such directors, three of whom shall -be known as class A directors, three of whom shall be known as class B directors, and three of whom shall be known as class C directors, shall be first appointed by the board, and shall serve until the end of the cal- endar year 1932. Their successors shall be elected as provided in subse ction (d), and of such successors first elected one of each such class shall serve for one, two, and three years, respectively. There- after all such directors shall serve for three years. Directors of classes A, B, and C, whether appointed or elected, shall be chosen from among persons connected with the home-financing business. (d) The board shall divide all the members of each Federal Home Loan Bank into three groups which shall be designated as groups A, B, and C, which groups shall represent, respectively, and as fairly as may be, group A, the large, group B, the medium-sized, and group C, the small members, the size of such members to be determined according to the aggregate unpaid principal of the member's home mortgage loans. The board may revise the member- ship of such groups from time to time. Of the directors elected as hereinafter provided, each class A director shall be an officer or director of a member in group A, each class B director shall be an officer or director of a member in group B, and each class C director shall be an officer or director of a member in group C. E ach mem- ber shall be entitled to nominate suitably qualified persons for elec- tion as directors of the class corresponding to the group to which such memb er b elon gs, a nd s hall cast one vote for each dir ector in its class. The directors of each class shall be nominated and elected in accordance with such rules and regulations as may be prescribed by the board. (e) Any director appointed or elected as provided in this section to fill a vacancy shall hold office only until the expiration of the term of his predecessor. (f) The board shall designate one of the directors of each bank to be chairman, and one to be vice chairman, of the board of directors of such bank. (g) If at any time when nominations are required, members shall hold less than $1,000,000 of the capital stock of the Federal Home Loan Bank, the board shall appoint a director or directors to fill the place or places for which such nominations are required. A director so appointed shall serve until the expiration of the cal- endar year during which he fakes office. (h) Each bank may pay its direc tors reas onab le c ompen sati on fo r the time required of them, and their necessary expenses, in the per- formance of their duties, in accordance with the resolutions adopted by such directors, subject to the approval of the board.