Page:United States Statutes at Large Volume 48 Part 1.djvu/1132

 1106 73d C ONGRESS. SESS. II. CH. 653. JUNE 19, 1934 . Direct loa ns to capital for any such established industrial or commercial business financing institution. to make loans or advances direct to any such financing institution on com mitm ents re- the security of such obligations ; and to make commitments with spe cting pur chas e of y obligatio ns. regard to such discount or purchase of obligations or with respect to such lo ans or advanc es on the secu rity thereof, including com mit- obllgtionsaequired by ments made in advance of the actual undertaking of such obligations. banks ; percent age. Each such financing institution shall obligate itself to the satisfac- tion of the Federal Reserve bank for at least 20 per centum of any loss which may be sustained by such bank upon any of the obliga- tions acquired from such financing institution, the existence and amount of any such loss to be determined in accordance with regula- AAdd vane by ins ti tu- tions of the Federal Reserve Board : Provided, That in lieu of such tion in lieu. obligation against loss any such financing institution may advance at least 20 per centum of such working capital for any established industrial or commercial business without obligating itself to the Federal Reserve bank against loss on the amount advanced by the Repayments. Federal Reserve bank : Provided, however, That such advances by the financing institution and the Federal Reserve bank shall be considered as one advance, and repayment shall be made pro rata under such regulations as the Federal Reserve Board may prescribe. Aggregate amount of » (c) The aggregate amount o credit extended ; hmi- f loans, advan ces, a nd co mmit- tation. ments of the Federal Reserve banks outstanding under this section at any one time, plus the amount of purchases and discounts under this section held at the same time, sh all not exceed the combined surplus of the Federal Reserve banks as of July 1, 1934, plus all amounts paid to the Federal Reserve banks by the Secretary of the Treasury und er subsection (e) of this section, and a ll operations of the Federal Reserve banks under this section shall be subject to such regulat ions as the F ederal Reserv e Board may pr escribe. Industrial Advisory Committee' "(d) For the purpose of aiding the Federal Reserve banks in Establishment . carrying out the provisions of this section, there is hereby estab- lished in each Federal Reserve district an industrial advisory com- Appointment . mittee, to be appointed by the Federal Reserve bank subject to the composition . approval and regulations of the Federal Reserve Board, and to be composed of not less than three nor more than five members as Qualifications of determined by the Federal Reserve Board . Each member of such members. committee shall be actively engaged in some industrial pursuit within the Federal Reserve district in which the committee is estab- service without °om- lished and each such member shall serve without compensation but pensation . shall be entitled to receive from the Federal Reserve bank of such district his necessary expenses while engaged in the business of the committee, or a per diem allowance in lieu thereof to be fixed by Application for loan the Fe deral Reserv e Boa rd. Each application for any such loan, sub ject approval of, advance, purchase, discount, or commitment shall be submitted to the appropriate committee and, after an examination by it of the business with respect to which the application is made, the applica- tion shall be transmitted to the Federal Reserve bank, together with the recommendation of the committee. Payments to Reserve "(e) In order to enable the Federal Reserve banks to make the ban ks, loans, discounts, advances, purchases, and commitments provided for in this section, the Secretary of the Treasury, upon the date this section takes effect, is authorized, under such rules and regula- tions as he shall prescribe, to pay to each Federal Reserve bank not basedpon 'par tvalue of to exceed such portion of the sum of $139,299,557 as may be repre- holdings of Federal sented by the par value of the holdings of each Federal Reserve Deposit Insurance cor- poration stock . b ank of Feder al Dep osit Insura nce Co rpora tion s tock, upon t he Agreement required . execution by each Federal Reserve bank of its agreement (to be endorsed on the certificate of such stock) to hold such stock unen-