Page:United States Statutes at Large Volume 47 Part 1.djvu/760

 736 72d CONGRESS. SESS. I. CH. 522. JU LY 22,1932. Loan banks wben so designated to be de- posit aries of public money. Exc ept ion. To act as f inancia l agents. Obligations of Fed- eral Home Loan Banks. Acc ept anc e of, as security, etc. To plainly state not Federal obligations nor guaranteed by United states. SEC. 14. When designated for that purpose by the Secretary of the Trea sury, each Fede ral Home Loan Bank shal l be a de posit ary o f public money, except receipts from customs, under such regulations as may be prescribed by said Secretary ; and it may also be employed as a financial agent of the Government ; and it shall perform all such reasonable duties as depositary of public money and financial agent of the Government as may be required of it. SEO.15. Obligations of the Federal Home Loan Banks issued with the appr oval of t he board under thi s Act sh all be la wful inve stments, and may b e accepte d as secu rity, for all fidu ciary, tr ust, and public funds the investment or deposit of which shall be under the author- ity or control of the United States or any officer or officers thereof. The Fede ral reser ve banks are autho rized to act as d epositari es, cus- todians, and/or fiscal agents for Federal Home Loan Banks in the general performance of their powers under this Act. All obligations of Federa l Home Lo an Banks shall pla inly stat e that su ch 'oblig ations are not obligations of the United States and are not guaranteed by the United States. RESERVES AND DIVIDENDS Ba nk fo SEC. 16. Each Federal Home Loan Bank shall carry to a reserve Provisions for accu- mulati ng, an d main te- account semiannually 20 per centum of its net earnings until said nance of. reserve account shall show a credit balance equal to 100 per centum of the paid-in capital of such bank. After said reserve has reached 100 per centum of the paid-in capital of said bank, 5 per centum of its net earnings shall be added thereto semiannually. Whenever said reserve shall have been impaired below 1 00 per centum of the paid-in capital it shall be restored before any dividends are paid. Each Federal Home Loan Bank shall establish such additional reserves and/or make such charge-offs on account of depreciation or impairment of its assets as the board shall require from time to dl°i- time. No dividends shall be paid except out of net earnings remain- ing after all reserves and charge-offs required under this Act have been provided for, and then only with the approval of the board. The r eserv es of eac h Fed eral Home Loan Bank shal l be inve sted, subject to su ch reg ulatio ns, re strict ions, a nd lim itatio ns as may be prescribed by the board, in direct obligations of the United States and in such securi ties a s fidu ciary a nd tru st fun ds may be invested in under the laws of the State in which the Federal Home Loan Bank is located. Payment of dends. Federal Home Loan Bank Board. Composition. SEC. 17. For the purposes of this Act there shall be a board, to be' known as the "Federal Home Loan Bank Board ", which shall con- Appointment, oath, sist of five citizens of the United States appointed -by the President political affiliations, etc. of the United States, 15y and with the advice and consent of the Senate. Not more than three members of the board shall be members of the-same political party. Each member shall devote his entire time to the business of the board. Before entering upon his duties each of the members shall take an oath faithfully to discharge the duties of his office. The President of the United States shall designate one of Terms of office. the members of the board to serve for a term of two years, one for three yea rs, one f or four y ears, one for five years, a nd one fo r_ six years from the date of the enactment hereof, and thereafter the term of each member shall be six years from the date of the expira- vacancies. tion of the term for which his predecessor was appointed. Whenever a vacancy shall occur among the members the person appointed FED ERAL HOM E L OAN BANK BOA RD