Page:United States Statutes at Large Volume 48 Part 1.djvu/670

 644 73d CONGRESS. SESS. II. CH. 168. APRIL 27, 1934 . Treat ment of, as pu b- under this subsection. All redemptions, purchases, and sales by the lie -debt transac tions. Secretary of the Treasury of the bonds of the Corporation shall be Tax exemptions. treated as public-debt transactions of the United States. The bonds issued by the Corporation under this subsection shall be exempt, Exc ept ion. both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or any District, Territory, dependency, or posses- sion thereof, or by any State, county, municipality, or local taxing auth orit y. The Corpor ation, includ ing its franc hise, its capi tal, reserves and surplus, and its loans and income, shall likewise be Real property. exempt from such t axati on ; exc ept that any real property of the Corporation shall be subject to taxation to the same extent, accord- Bo nd issue not to ing to its value, as other real property is taxed. No such bonds exceed assets. shall be issued in excess of the assets of the Corporation, including the assets to be obtained from the proceeds of such bonds, but a failure to comply with this provision shall not invalidate the bonds Open market trans- or the guaranty of the same. The Corporation shall have power actions. to purchase in the open market at any time and at any price not to exceed par any of the bonds issued by it. Any such bonds so pur- chased may, with the approval of the Secretary of the Treasury, be Resale, refund, and sold or resold at any time and at any price. For a period of six exchange. months after the date this subsection, as amended, takes effect, the Corporation is authorized to refund any of its bonds issued prior to such date or any bonds issued after such date in compliance with commit ments of the Corp oratio n outs tandin g on such d ate, u pon application of the holders thereof, by exchanging therefor bonds of an equal face amount issued by the Corporation under this sub- Interest rate. section as amended, and bearing interest at such rate as may be prescribed by the Corporation with the approval of the Secretary of the Treasury ; but such rate shall not be less than that first fixed after this subsection, as amended, takes effect on bonds exchanged amount r reefunded. to by the Corporation for home mortgages. For the purpose of such refunding the Corporation is further authorized to increase its total bond issue in an amount equal to the amount of the bonds so Existing commit- refunded. Nothing in this subsection, as amended, shall be con- ments . strued to prevent the Corporation from issuing bonds in compliance with commitments of the Corporation on the date this subsection, as amended, takes effect ." Bonds heretofore is- (b) The amendments made by subsection (a) of this section sued Corporation (except with respect to refunding) shall not apply to any bonds heretofore issued by the Home Owners' Loan Corporation under such sec tion 4 ( c), or to any bonds hereaft er issued in compliance with c ommitm ents o f the Crpor ation outsta nding on th e date of enactment of this Act . Ante, p. 132. SEC . 2 . Section 4 of the Home Owners' Loan Act is further amended by adding at the end thereof the following new subsections Bond exchan ge for "(1) No home mortgage or other obligation or lien shall be wh en mortgages baave. loans; acquired by the Corporation under subsection (d), and no cash advance shall be made under subsection (f), unl ess the appl ican t was in involuntary default on June 13, 1933, with respect to the indebtedness on his real estate and is unable to carry or refund his Proviso. cr limits- present mortgage indebtedness : Provided, That the foregoing limita- tions tion shall not apply in any case in which it is specifically shown to the satisfaction of the Corporation that a default after such date was due to unemployment or to economic conditions or misfortune beyond the control of the applicant, or in any case in which the home mortgage or other obligation or lien is held by an institution which is in liquidation.