Page:United States Statutes at Large Volume 48 Part 1.djvu/1288

 1262 Issue dehentures, honds. Issue of consolidated Federal Home Lo an Bank deben tures. Limitation. Aggre gate amo unt. Amount to members. Ret ire me nt of de- hentures. Depos it of add ition al colla teral. Deposits, acc eptance authorized. Limitation on trans- acting ban king husi- ness. Rediscounting notes of members. Ter ms and condi- tions. Purch ase of h onds, deben ture s. Reserves to b e main- tained. Amount. 73d C ONGRESS. SESS. II. CH. 847. JUNE 27, 1934. and give security therefor and to pay interest thereon, to issue debentures, bonds, or other obligations upon such terms and condi- tions as the board may approve, and to do all things necessary for carrying out the provisions of this Act and all things incident thereto. "( b) The board may issue consolidated Federal Home Loan Bank debentures which shall be the joint and several obligations of all Federal H ome Loan Banks organized an d existing un der this Act, in order to provide funds for any such bank or banks, and such deben- tures shall be issued upon such terms and conditions as the board may prescribe . No such debentures shall be issued at any time if any of the assets of any Federal Home Loan Bank are pledged to secure any debts or subject to any lien, and neither the board nor any Federal Home Loan Bank shall have power to pledge any of the assets of any Federal Home Loan Bank, or voluntarily to permit any lien to attach to the same while any of such debentures so issued are outstanding . The debentures issued under this section and outstand- ing shall at no time exceed five times the total paid-in capital of all the Federal Home Loan Banks as of the time of the issue of such debentures. It shall be the duty of the board not to issue debentures under this section in excess of the notes or obligations of member institutions held and secured under section 10 (a) of this Act by all the Federal Home Loan Banks. "(c) At any time that no deben tures are out standing under this Act, or in order to refund all outstanding consolidated debentures issued under this section, the board may issue consolidated Federal Home Loan Ba nk bonds whic h shall be th e joint and se veral obliga- tions of all the Federal Home Loan Banks, and shall be secured and be issued upon such terms and conditions as the board may prescribe . "(d) The board shall have full p ower t o requ ire a ny Fed eral Home Loan Bank to deposit additional collateral or to make substi- tutions of collateral or to adjust equities between the Federal Home Loan Bank s. "(e) Each Federal Home Loan Bank shall have power to accept deposits made by members of such bank or by any other Federal Home Loan B ank or othe r inst rument ality of th e Unit ed Sta tes, upon such terms and con ditions as th e board may p rescribe, but no Federal Home Loan Bank shall transact any banking or other busi- ness not authorized by this Act . " (f) The b oard is author ized and empo wered to perm it, or when- ever in the judgment of at least four members of the board an emer- gency exists requiring su ch action, to require, Fede ral Home Loan Banks, upon such terms and conditions as the board may prescribe, to rediscount the discounted notes of members held by other Federal Home Loan Ba nks, or to ma ke loans to, or make deposi ts with, such other Federal Home Loan Banks, or to purchase any bonds or debentures issued under this section. "(g) Each Federal Home Loan Bank shall at all times have an amount equal to the sums paid in on outstanding capital subscrip- tions of its members, plus an amount equal to the current deposits received from its members, invested in (1) obligations of the United States, (2) deposits in banks or trust companies, (3) advances with a maturity o f not to exce ed one year w hich are made to members or nonmember borrowers, upon such terms and conditions as the board may prescribe, and (4) advances with a maturity of not to exceed one year which are made to members or nonmember borrowers whose creditor liabilities (not including advances from the Federal Home Loan Bank) do not exceed 5 per centum of their net assets, and