Page:United States Statutes at Large Volume 48 Part 1.djvu/1285

 73d C ONGRESS. SESS. II. CH. 847. JUNE 27, 1934. accounts of the insured members of such institution plus any creditor obligations of such institution. Such premium shall be paid at the time the certificate is issued by the Corporation under section 403, and thereafter annually until a reserve fund has been established by the Corporation equal to 5 per centum of all insured accounts and creditor obligations of all insured institutions ; except that under regulations prescribed by the Corporation such premium charge may be paid semiannually. If at any time such reserve fund falls below such 5 per cen tum, the paym ent of such a nnual premium charge for insurance shall be resumed and shall be continued until the reserve is brought back to such 5 per centum. For the purposes of this sub- section, the amount in all accounts of insured members and the amount of creditor obligations of any institution may be determined from adjusted statements made within one year prior to the approval of the application of such institution for insurance, or in such other manner as the Corporation m ay by rules a nd regulations prescribe. (b) The Corporation is further authorized to assess against each insured institution additional premiums for insurance until the amount of such premiums equals the amount of all losses and expe nses of the Corp orat ion ; exc ept tha t the total a mount s o asse ssed in any one year against any such institution shall not exceed one- fourth of 1 per centum of the total amount of the accounts of its insured members and its creditor obligations. PAY MENT OF INS URAN CE SEC. 4 05 . (a) Eac h institution whose applica tion for insu rance under this title is approved by the Corporation shall be entitled to insurance up to the full withdrawal or repurchasable value of the accounts of each of its members and investors (including individuals, partnerships, associations, and corporations) holding withdrawable or repurchasable shares, investment certificates, or deposits, in such institution ; except that no member or investor of any such institu- tion shall be insured for an aggregate amount in excess of $5,000. (b) In the event of a default by any insured institution the Corpo- ration shall promptly determine the insured members thereof and the amount of their insured accounts, and shall make available to each of them, after notice by mail at his last-known address as shown by the books of the insured institution, and upon surrender and transfer to the Corporation of his insured account, either (1) a new insured account in an insured institution not in default, in an amount equal to the insured account so transferred, or (2) at the option of the insured member, the amount of his account which is insured under this section, as follows : Not to exceed 10 per centum in cash, and 50 per centum of the remainder within one year, and the balance within three years from the date of such default, in negotiable noninterest-bearing debentures of the Corporation. The Corp orat ion shal l fu rnis h to all ins ured ins titu tion s a cert ific ate stating that the insurance of accounts in such institution is to be paid in the manner described in this subsection. 1259 T ime of payment. Annual payments until reserve fund es- tablished . Resumption o f pay- ments. De termination of amount of accounts and obligations. Assessment of addi- tional premiums. Payment of insur- ance. Amount of insurance institution having ap- proved application en- tit led to. Procedure up on de- fault of insured cor- poration. C ertif icat e reg ardin g payment of insured de- posits. L iquid atio n of in- LIQUIDATION OF INSURED INST11 U TIONS sured institutions. SEC. 406 . (a) In order to facilitate the liquidation of insured institutions, the Corporation is authorized (1) to contract with any insu red inst itut ion with res pect to the maki ng a vail able of insu red accoun ts to the in sured membe rs of any in sured insti tution in default, or (2 ) to provide for the organ ization of a n ew Federal organization of new savings and loan association for such purpose. subject iatia ose subject to the cla ng s and loan also nn approv al of the Fe deral Home Loan B ank Bo ard. Authority of Corpo- ration. C ontra cts with in- sured institution.