Page:United States Statutes at Large Volume 47 Part 1.djvu/756

 732 72d CON GRESS. SESS. I. CH. 522 . JULY 22, 1932 . the adva nce may be for an amount not in excess of 60 per centum M axi mum amo unt . of the unpaid prin cipal of th e hom e mor tgage loan • in no case shall the amount of the advance exceed 40 per centum o,i the value of the real estate securing the home mortgage loan. Secured by home . ( 2) If secured by a home mortgage given in res ect of any other m ortgage given on any o ther mor tga ge loan. hom e mortgage loan, the advance shall not be or an amount in excess of 50 per centum of the unpaid principal of the home mortgage Limitation. loan ; in no case shall the amount of such advance exceed 30 per centum of the value of the real estate securing the home mortgage loan. Acceptance as collat- (b) No home mortgage shall be accepted as collateral security for diass cpeC i led for bid - en an ad van ce by a Fe der al Hom e L oan Ba nk if, at the ti me suc h advance is made (1) the home mortgage loan secured by it has more than fifteen years to run to maturity, or (2) the value of the real estate with respect to which the hom e mortgage is given exce eds $20,000, or (3) is past due more than six months when presented. value of real estate For the purposes of this subsection and subsection (a) the value of considered as when loan made. real estate shall be as of the time the advance is made and shall be. established by such certification by the borrowing institution, or such Investigations . other evidence, as the board may require. For the purposes of this section, each Federal Home Loan Ba nk shall have power to make, or to cause or require to be made, such appraisals and other investiga- Restriction where tions as it may deem necessary. No home mortgage otherwise eligible agent is personally to be accepted as collateral security for an advance by a Federal liable. Home Loan Bank shall be accepted if any director, officer, employee, attorney, or agent of the Federal Ho me Loan Bank or of the b or- rowing institution is personally liable thereon, unless the board has spec ifica lly ap prove d by forma l reso lutio n suc h acce ptanc e. Advances made on (c) Such advances shall be made up on the note or obligation of pr oper ly s ecur ed n otes . the mem ber or no nmember b orrower s ecured as provided in this sect ion, bearin g suc h rat e of intere st as the board may a pprov e or stock of borrower as determine, and the Federal Home Loan Bank shall have a lien upon further security. and shall hold the stock of such member as further collateral security for all indebtedness of the member to the Federal Home Loan Bank. Advances not to At no time shall the aggregate outstandi ng advances made by any exceed twelve times Federal Home Loa n Bank to any memb er exceed twelve ti mes the amount of capital held, etc. amounts paid in by such member for outstanding capital stock held by it, or made to a nonmember borrower exceed twelve times the value of the security required to be deposited under section 6 (e). Appl icants r equired (d) The institution applying for an advance shall enter into a to enter int o obl ig ati on primary and unc onditiona l obliga tion to pay off all adva nces, to gether to pay, etc. with interest and any unpaid costs and expenses in connection there- with according to the terms under which they were made, in such form as shall meet the requirements of the bank and the approval Right to require of the board. The bank shall reserve the right to require at any time s additional security re- when deemed necessary for its protection, deposits of additional ser vedd collateral security or substitutions of security by the borrowing institu tion, an d each bo rrowing institut ion shal l assign additio nal or Sale, etc., of advances substituted security when and as so required. S ubje ct to the to oth er H ome Loa n approval of the bo ard, any Federal H ome Loan Bank shall have Banks. power to sell to any other Federal Home Loan Bank, with or without recourse, any advance made under the provisions of this Act, or to allow to such bank a participation therein, and any other Federal Home Loan Bank shall have power to purc hase such advance or to accept a participation therein, together w = th a,n appropriate assign- ment of se curity ther efor.