Page:United States Statutes at Large Volume 47 Part 1.djvu/758

 734 72d CONGRESS. SESS. I. CH. 522. JULY 22, 1932. Joint, etc ., liability of (f) The Federal Home Loan Banks shall be jointly and severally banks. liable for the payment when due of all bonds and debentures, and of notes and other obligations issued by any Federal Home Loan proviso. Bank, and interest thereon, in accordance with their terms : Pro- Specific accounts. vided, That this shall not prevent any particular Federal Home Loan Bank, when specifically so authorized by the board, from borrow- ing funds temporarily under the terms of obligations which shall expressly state in substance in such manner as shall be approved by the board that the liability therefor is confined to the issuing bank. Mutual arrange- The Fe deral Ho me Loan anks shall from time to time in accord- ments for meeti ng obli- g ations authorized, ante with rules, regulations, and orders of the board make adequate agreements and arrangeme nts among them selves for meet ing the payment of the bonds, debentures, notes, or other obligations on Liab ility not waived. Which they are jointly and severally liable, and the interest thereon, but such agreements and arrangements shall not restrict in any respect the joint and several liability herein established. Depo sit restr ictions. (g) Each Federal Home Loan Bank shall have power to accept only such deposits as ar e made by memb ers and nonmemb er bor- rowers of such bank, or by other Federal Home Loan Banks. S u c h deposits shall not be subject to check, and no rate of interest in excess of 2 per centum per annum shall be paid thereon. "Deposits" as u sed in this sectio n, do es not inclu de dep osits made under sectio n General banking 6 (e). No Federal Home Loan Bank shall transact any banking bu sine ss f orbi dden. or other business not expressly authorized by this Act. Rediscounts, etc. (h) The board is authorized and empowered to permit, or, when- ever in the judgment of at least four members of the board an emergency exists requiring such action, to require, Federal Home Loan Banks to rediscount the discounted notes of members or non- member borrowers held by other Federal Home Loan Banks, or to purchase the bonds issued by any other Federal Home Loan Bank, Board to fix price of or to make deposits with other Federal H ome Loan Banks. In any bona, and rediscount rates, etc. case in which the board requires the purchase of bonds, the board shal l fix the pr ice th erefo r, or if the board requi res t he acc eptanc e of a d eposit, it shall fix the security therefor. The rediscount rates and the rates of interest to be paid upon deposits shall be fixed by the board. Duties of banks. (i) Each Federal Home Loan Bank shall at all times have an To ca rry sum equp- to capital subscrip- amount equal to the sums paid in on outstanding capital subscrip- tions, etc„ invested in tions of its members, plus an amount, equal to the current deposits Federal obligations . Deposits in banks, received from its members and from nonmember borrowers, invested et c. Short-term loans. in (1) obligations of the United States, (2) deposits in banks or trust companies, (3) advances with maturity not greater than one year made to members or non member borrowe rs, upon such terms and conditions as the board may prescribe, and (4) advances with maturity not greater than one year made to members or nonmember borrowers the amount of whose creditor liabilities (not including advances from the Federal Home Loan Bank) does not exceed 5 per Adva nces w ith out centum of such member's or nonmember borrower's net assets, which mortgage security advances may be made without the security of home mortgages or other security, upon such terms and conditions as t he board may prescribe. Investment of desig. (j) Such part of the assets of each Federal Home Loan Bank noted assets . (except reserves and except sums provided for in subsection (i)) as such bank may deem available therefor, and as are not required for advances to members or nonm ember borrower s, may be inve sted, subject to such regulations, restrictions, and limitations as may be prescribed by the board, in direct obligations of the United States