Page:United States Statutes at Large Volume 47 Part 1.djvu/757

 72d CONGRESS. SESS. I. CH. 522 . JULY 22,1932. 733 General powers and duties. SEC. 11. (a) Each Federal Home Loa n Bank shall have power, Borrow bonds, Issue etc. subject to the approval of the board, (1) to borrow money, to give security therefor, and to pay interest thereon, and (2) to issue bonds and debentures having such maturities as may be determined by the board, secur ed by the transf er of eligible o bligations of bo r- rowing institutions on adv an ces m ade by the ba nk to borrowing institut ions and by the deposit of home mortgages. b The b oard shall rescribe rules and re ulations To prescribe a- ) 1> g govern ing tions governing oblig o bliga - the assignment, deposit, custody, substitution, and release of the tionsofborrowing insti- obligations of borrowing institutions to the bank which are trans- tutions, etc' ferred and of the home mortgages securing such bonds and deben- tures, the forms and terms of such bonds and debentures, and the conditions under which they may be issued and retired, including any option with respect to payment and retirement thereof in advance of maturity, and such regulations shall provide for the deposit in trust, under such terms and conditions as it may de em advisable, of the home mortgages securing such bonds and deben- tur es . F or the p urposes of this section the boar d is aut horized to appoint, and fix the compensation, and prescribe the duties of, a registrar in eac h district, who shall not be con nected with or in ter- ested in any Federal Home Loan Bank, any member, any nonmem- ber borrower, or any institution of a class eligible to become a Registrar to be ap. member or a nonmember borrower under this Act, and to re qu i re pointed in each district. of such registrar a bond, in such amount and with such sureties as Surety required. the board may fix, conditioned on the faithful performance of the duties required of him. (c) Such deposits in trust shall be so maintained that the aggre- i e bon ds, of gate unpaid principal of the home mortgage loans secured by the mortgages de ep positeedas home mortgages deposited as security for bonds or debentures shall, 190 per cent of issue. as nearly as possible, be at all times not less than an amount equal to 190 per centum of the total outstanding amount of such issue. Cash dep osited u nder aut hority o f subsec tion (d) shall be securit y for an amount of bonds and debentures equal to the amount of cash deposited. Direct obligations of the United States deposited under authority of subsection (d) shall be security for an amount of bonds and debentures equal to the par value of such obligations. Deposit or additions (d) The boa rd may at any time require any Federal Home Loa n or substitut ions as se • Bank to deposit additional home mortgages or to make substitutions cnrity of home mortgages to secure such bonds and debentures, except that when in the opinion of the board home mortgages are not available for such purpose, it may permit, for such limited periods as it may deem advisable, the deposit of cash or direct obligations of tale cash etc .,Inlieu. United States in lieu of the d eposit of substi tute or addition al home loan mortgages. Int ere st rates on (e) The board shall approve or determine the rates of interest notes, bonds, etc. to be paid by the Federal Home Loan Banks upon the notes, deben- Limitation. tures, or bonds which they may issue except that no bond or deben- ture issued within seven years after the enactment of this Act shall bear a rate of interest in excess of 51/ 2 per centum per annum, and no bond or debenture issued thereafter shall bear a rate of interest in excess of 5 per centum per annum, and shall provide such margins pensTrargin, to cover ex- in (not to exceed 11/2 per centum) between interest rates received upon advances made to borrowing institutions and interest paid upon obli- gations which the Federal Home Loan Bank may issue as will cover expens es of op eration and rese rves and, under such reg ulations as may be pro vi ded by the board some part of suc h res er ve may be al subscription. Reti reme nt of Ned er- scriptony devoted to retirement of the stock subscribed by the United States. GENERAL POWERS AND DUIJJiS OF BANKS