Page:United States Statutes at Large Volume 48 Part 1.djvu/209

 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933. 183 fined not more than $10,000, and may be fined a further sum equal to the amount so loaned or credit so extended ." SE C. 13 . The Federal Reserve Act, as amended, is amended by us.c, pp .7263, ss3; inserting between sections 23 and 24 thereof (U.S.C., title 12, sees. Supp. VI, p. 137. 64 and 371 ; Supp . VI, title 12, sec . 371) the following new section : "SEC. 23A. No member bank shall (1) make any loan or any et Loans, investments, extension of credit to, or purchase securities under repurchase agree- member too afiili . ment from, any of its affil iates, or (2) inve st any of its fund s in the ates. capital stock, bonds, debentures, or other such obligations of any such affiliate, or (3) accept the capital stock, bonds, debentures, or other s uch ob ligati ons of any s uch affiliate as collateral security for advances made to any person, partnership, association, or corpora- tion, if, in the case of any such affiliate, the aggregate amount of Pe rcentage per mit- ted such loans, extensions of credit, repurchase agreements, investments, and advances against such collateral security will exceed 10 per centum of the capital stock and surplus of such member bank, or if, in the case of all such affiliates, the aggregate amount of such loans, extensions of credits, repurchase agreements, investments, and advance s agai nst su ch col latera l secu rity wi ll exc eed 20 per c entum of the capital stock and surplus of such member bank. " Within the foregoing limitations, each loan or extension of credit sty of any ki nd or cha racter to an affil iate shal l be secu red by co llateral in the form o f stoc ks, bo nds, d ebentu res, or other such obliga tions having a market value at the time of making the loan or extension of credit of at least 20 per centum more than the amount of the loan or exten sion o f cred it, or of at least 10 per centu m more than the amount of the loan or extension of credit if it is secured by obligat ions o f any State, or of any p olitica l subd ivisio n or a gency thereof : Provided, That the provisions of this paragraph shall not IM- e"i 8o d apply to loans or extensions of credit secured by obligations of the bones, etc .states obuga Unite d Sta tes G over nment, the Fed eral inter media te c redit bank s, the Federal land banks, the Federal Home Loan Banks, or the Home Owners' Loan Corporation, or by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Federal reserve banks. A loan or extension of credit to a ablates to officers of directo r offi cer, c lerk, or oth er emp loyee o r any repres entati ve of any such affiliate shall be deemed a loan to the affiliate to the extent that the proceeds of such loan are used for the benefit of, or trans- ferred to, the affiliate. "Fo r the purpos es of this s ection the t erm `a ffi liat e' shall include "A ffiliate", con- holding company affiliates as well as other affiliates, and the pro- store d. visions of this section shall not apply to any affiliate (1) engaged clAff iliates net in- solely in holding the bank premises of the member bank with which it is aff iliated, (2) engag ed solely in condu cting a s afe-depos it busi- ness or t he busine ss of an agricultu ral credi t corpora tion or l ivestock loan company, (3) in the capital stock of which a national banking association is authorized to invest pursuant to section 25 of the Vol.38,p. 273. Federal Reserve Act, as amended, (4) organized under section U.S.C., p. 292.. 25 (a) of the Federal Reserve Act, as amended, or (5) engaged solely in holding obligations of the United States Government, the Federal intermediate credit banks, the Federal land banks, the Fed- eral Home Loan Banks, or the Home Owners' Lo an Corporation ; but as to any such affiliat e, member banks sh all conti nue to be subject to other provisions of law applicable to loans by such banks and investments by such banks in stocks, bonds, debentures, or other such obl iga tio ns ." S EC. 14 . The Federal Reserve Act, as amended, is amended by u•k 8 ,pp . 2s z; inserting between section 24 and section 25 thereof (U .S .C ., title 12, Supp . vI . P . 137.