Page:United States Statutes at Large Volume 48 Part 1.djvu/1287

 73d C ONGRESS. SESS. II. CH. 847. JU NE 27, 1934. ti tle shal l immedi ately te rminate ; but the obl igat ion of the ins titu - tion to pay the premium charges for insurance shall continue for a period of three years after the date of such termination. (b) The Corporation shall ha ve po wer to terminate the in su red status of any insured institution at any time, after ninety days' notice in writing, for violation of any provision of this title, or of any rule or regu lation made there under, or of an y agre ement made pursuant to section 403 . In the event the insured status of any insured institution is so terminated it shall be unlawful thereafter for it to advertise or represent itself as an insured institution, but the in sured acco unts o f its membe rs ex istin g on the date of such termination shall continue as such for a period of five years there- after, and the institution shall be required to continue the payment of the premium charge for insurance during such five-year period. TITL E I T-M ISC ELL ANE OUS SECTION 501. Section 10(a) of the Federal Home Loan Bank Act is amended to read as follows " SEC. 10. (a) Ea ch Federal Ho me L oan Bank is authorized to make adva nces to its memb ers, upo n the se cur ity of h ome mort - gages, subject to such regulations, restrictions, and limitations as the board may prescribe . Any such advance shall be subject to the following limitations as to amount "(1) If sec ur ed by a mortgage insured und er the pro vi si ons of title II of the National Housing Ac t, the advance may be for an amount not in excess of 90 per ce ntum of the unpaid principal of the mortgage loan. "(2) If secured by a home mortgage given in respect of an amor- tized home mortgage loan which was for an original term of eight years or more, or in cases where shares of stock, which are pledged as security for such loan, mature in a period of eight years or more, the advance may be for an amount not in excess of 65 per centum of the u npaid principal of the home mortgage loan ; but in no case shall the amount of the advance exceed 60 per centum of the value of the r eal esta te secur ing the home mor tgage loa n . "(3) If secured by a home mortgage given in respect of any other home mort gage loa n, the a dvan ce s hall not be for an amou nt in excess of 50 per centum of the unpaid principal of the home mort- gage loan ; but in no case shall the amount of such advance exceed 40 per centum of the value of the real estate securing the ho me mortg age loan ." SEC . 502 . The Federal Ho me Loan Ba nk Act is further amended by adding after se ction 10 thereof the fol lowing n ew secti on " SEC. 10a. Until Ju ly 1, 1936, each Federal Hom e Loa n Ban k is authorized to make advances to its members, in order to enable such members to finance home repairs, improvements, and alterations. Such advances shall not be subject to the provisions and restrictions of section 10 of this Act, but shall be made upon the security of notes representing obligations incurred pursuant to and insurable under, se ctio n 2 of the N atio nal Hous ing Act. Advances made under the terms of this section shall be at such rates of interest and upon such terms and cond ition s as s hall be de termin ed by the Federal Home Loan Bank Board ." SEC . 503 . Secti on 11 of the Federal Home Loan Bank Act is a mended to read as follows " SEC. 11. (a) E ach Fede ral Home Loa n Ba nk s hall hav e po wer, subject to rules and regulations prescribed by the board to borrow 1261 Obligation to pay premium charg e to continue . Termination by cor- poration. For violation th ereof. Mis representati on of status thereafter un- lawful. Insured accounts . Payment of pre mium cha rge. Mis cellaneous. Fe deral Rome Loan B ank A ct, amendment. Vol. 47, p . 731; U.S. C., Supp. VI I, p. 226. Ad vances to mem- bers. Limitations on amount. Ad vances for home repairs, improvements, and alterations. Security. Ante, p. 1246. Inter est rate ; te rms and conditions. Vol .47,p.733; U.S. C.,Supp.VII,P.227 . Powers and duties of hanks. Bo rrow money.