Page:United States Statutes at Large Volume 48 Part 1.djvu/159

 73d CONGRESS. SESS. L CH. 64. JUNE 13, 1933. 133 (d) The Board shall have full power to provide in the rules and regulat ions h erein author ized f or the reorga nizati on, co nsolid ation, merger, or li quidat ion of such associ ations, inclu ding t he pow er to appoint a conservator or a receiver to take charge of the affairs of any such association, and to require an equitable readjustment of the capital structure of the same ; and to release any such association from such control and permit its further operation. (e) No charter shall be granted except to persons of good charac- ter and responsibility, nor unless in the judgment of the Board a necessity exists f or such a n institu tion in t he commun ity to be served, nor unle ss there is a reas onable pr obabilit y of its usefulnes s and suc - cess, nor unless the same can be established without undue injury to properly conducted existing local thrift and home-financing insti- tutions. (f) Each such association, upon its incorporation, shall become automatically a member of the Federal Home Loan Bank of the district in which it is located, or if convenience shall require and the Board approve, shall become a member of a Federal Home Loan Bank of an adjoining district. Such associations shall qualify for such membership in the manner provided in the Federal Home Loan Bank Act with respect to other members. (g) The Secretary of the Treasury is authorized on behalf of the United States to subscribe for preferred shares in such associations which shall be preferred as to the assets of the association and which shall be entitled to a dividend, if earned, after payment of expenses and provision for reasonable reserves, to the same extent as other shareholders. It shall be the duty of the Secretary of the Treasury to subscribe for such preferred shares upon the request of the Board but the subscription by him to the shares of any one association shall not excee d $100,00 0, and no such sub scription shall be called f or unless in the judgment of the Board the funds are necessary for the encour- agement of local home financing in the community to be served and for the reasonable financing of homes in such community. Payment on such shares may be called from time to time by the association, subject to the approval of the Board and the Secretary of the Treas- ury ; but the amount paid in by the Secretary of the Treasury shall at no time e xceed the am ount p aid in by all other share holder s, and the aggregate amount of shares held by the Secretary of the Treasury shall not ex ceed a t any time t he agg regate amount of sh ares h eld by all other shareholders. To enable the Secretary of the Treasury to make such subscriptions when called there is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appro- priated, the sum of $100,000,000, to be immediately available and to remain available until expended. Each such association shall issue receip ts for such paymen ts by the Se cretary of th e Trea sury i n such form as may be approved by the Board, and such receipts shall be evidence of the interest of the United States in such preferred shares to the extent of the amount so paid. Each such association shall make provision for the retirement of its preferred shares held by the Secretary of the Treasury, and beginning at the expiration of five years from the time of the investment in such shares, the association shall set aside one third of the receipts from its investing and bor- rowing shareholders to be used for the purpose of such retirement. In case of the liquidation of any such association the shares held by the Secretary of the Treasury shall be retired at par before any pay- ments are made to other shareholders. (h) Such associat ions, inc luding th eir fran chises, c apital, r eserves, and surplus, and their loans and income, shall be exempt from all taxation now or hereafter imposed by the United States, and all shares Ru les fo r reo rganiza- tion, etc., authorized . P rovis ions for grant - ing charters. I ncorp orat ed as socia - tion as member of Fed- e ral H ome Lo an Ba nk. Secretary authorized to subscribe for associa- tion preferred stock. Post, pp. 279, 647. Limitations. Not to exceed aggre- gate shares of all other holders. Sum authorized. Receipts. Provision for retiring prefe rred shar es h eld by Secretary . Such shares retired at par in event of liqui- dat ion. Association , etc ., tobetaxfree.