Page:United States Statutes at Large Volume 48 Part 1.djvu/1289

 73d C ONGRESS. SESS. II. CH. 847. JUNE 27, 1934. 1263 which may be made without the security of home mortgages or other securi ty, up on suc h term s and condit ions as the b oard m ay pre scribe. "(h) Such part of the assets of each Federal Home Loan Bank Investment of su r- (exc ept reser ves a nd a mount s pro vided for in s ubsec tion (g)) as plus funds . are not required for advances to members or nonmember borrowers, may be invested, to such extent as the bank may deem desirable and subjec t to s uch re gulati ons, r estric tions, and li mitati ons as may b e prescribed by the board, in obligations of the United States and in such securities as fiduciary and trust funds may be invested in under the laws of the State in which the Federal Home Loan Bank is located ." SEC. 504. The Farm Cred it A ct of 19 3 3 is amended b y adding after ame ndmments . Ac t, section 86 thereof the following new section : Ante, p . 273. " SEC . 8 6a . With the appr oval of t he Govern or of the Farm Cre dit Assoc ations n credit Administration and under rules and regulations to be prescribed by the Production Credit Commissioner, production credit associa- tions organized under the provisions of the Farm Credit Act of 1933 are authorized and empowered (without regard to the provi- Powers . sions of this Act relating to the requirement for the ownership of Class B stock or any other limitations therein contained) (1) to Loans to farmers . make loans to farmers for the purpose of enabling them to make home alterations, repairs, and improvements, (2) to sell, discount, to Transactions in assign, or otherwise dispose of any loans made by them under the provisions of this section, under such restrictions and limitations as to endorsement and liability as may be approved by the Governor of the Farm Credit Administration, (3) to avail themselves of the Insurance under Na- benefits of insurance under the provisions of section 2 of the ti An te, Hos ing Hp. .1246. Act. National Housing Act, and (4) to do all such things as may be General powers. reasonably necessary to carry out the provisions of this section ." Federal Reserve Act, SEC . 505 . (a) Section 24 of the Federal Reserve Act, as amended . amendment . is amended by adding at the end of the third sentence thereof the u s oc .,p$283p- 211; following : " Provided, That in the case of loans secured by real Loans on real estate. estate which are insured under the provisions of title II of the Restrictions not ap- National Housing Act, such restrictions as to the amount of the loan pli cab le. i n relation to the actual value of the real estate and as to the five- year limit on the terms of such loans shall not apply ." (b) Section 24 of such Act, as amended, is further amended by adding at the end thereof the following new paragraph " Loans made to finan ce th e con stru ction of r esid entia l or farm Loans to finance con- struction of residential buildings and having maturities of not to exceed six months, whether or farm buildings. or not secure d by a mortg age or simil ar lien on th e real estat e upon which the residential or farm building is being constructed, shall Classification. not be consid ered a s loan s secu red by real e state within the m eaning of this section but shall be classed as ordinary commercial loans Provid ed, That no national banking association shall invest in, or Proviso. be liable on, any such loans in an aggregate amount in excess of 50nationatl banking Investm ents banking aso sso - per centum of its actually paid-in and unimpaired capital. Notes Ci Eligibility of loans representing such loans shall be eligible for discount as commercial for discount. paper within the terms of the second paragraph of section 13 of the Vol. 38, p. 263; Federal Reserve Act, as amended, if acco mpanied by a valid and us .C., p. 281" binding agreement to advance the full amount of the loan upon the completion of the building entered into by an individual, partner- ship, association, or corporation acceptable to the discounting bank ." SEC. 506 . (a) The first sentence of section 4(c) of the Home Home owners' Loan Owners' Loan Act of 1933, as amended, is further amended to read Act pp. 129, 643. as follows "(c) The Corporation is authorized to issue bonds in an aggre- p and issues by Cor- gate amount not to exceed $3,000,000,000, which may be exchanged Aggregate amount . a s hereinafter provided, or which may be sold by the Corporation to