Page:United States Statutes at Large Volume 48 Part 1.djvu/997

 73d C ONGRESS. SESS. II. CH. 546. JUNE 16, 1934 . 971 (10) By amending the first sentence of the second paragraph of ex Mem rsh ipo fFn d subsection (y) by inserting within the parentheses and immediately etc. after the words " District of Columbia " the words " and the Terri- Ante, p . 179. tories of Hawaii and Alaska ". SEC. 2 . The first paragraph of section 9 of the Federal Reserve Ante, p. 164. Act, as amended (U .S .C ., title 12, sec . 321), is amended by adding p.169_ c ., supp. Vi i, after the second sentence thereof a new sentence to read as follows

Membership of State banks. " For the purposes of membership of any such bank the terms . - Cap ital° and "eai- italstock construed. 'capital' and `capital stock' shall include the amount of outstanding 'tai stack construed. capital notes and debentures legally issued by the applying bank and purchased by the Reconstruction Finance Corporation ." SE c. 3. a The Reconstructio n Finance Corporatio n Act, as x eeenst rpo t ion Finance Cor porat ion amended, is amended by adding before section 6 thereof the follow- Act V61.47,1>.8; U .S .C., ing new section : Supp . VII, p. 151. " SEC. 5e. (a) The Corporation is authorized and empowered to Banks closed durin g make loans upon or purchase the assets of any bank, savings bank, 19iany to, or purchase or t rust compa ny, w hich has been clos ed on or a fter Dece mber 31, of assets of, authorized 1929, and prior to January 1, 1934, and the affairs of which have not been fully liquidated or wound up, upon such terms and conditions as the Corporation may by regulations prescribe. If in connection with the reorganization, stabilization, or liquidation of any such bank, assets have been trusteed or are otherwise held for the benefit of depos itors or depositor s and oth ers, the authorit y, subjec t to regu - lation s, as provid ed in the pr ecedin g sente nce sh all be exten ded fo r the purpose of authorizing the Corporation to purchase or make loans on such ass ets held for the b enefit o f such de positors or deposi - tors and others. This authority shall also extend to any such insti- tution that has reopened without payment of deposits in full. In making any purchase of or loan on the assets of any closed bank, the Corporation shall appraise such assets in anticipation of an orderly liquidation over a period of years, rather than on the basis of forced selling values in a period of business depression. This authority shall also extend to assets of the character made eligible by this section as security for loans without regard to whether the Corporation has heretofore made loans thereon. "(b) The Corporation shall purchase at par value such debentures or other obligations of the Federal Deposit Insurance Corporation as are authorized to be issued under subsection (o) of section 12B of the Federal Reserve Act, as amended, upon request of the board of direc tors o f the Federa l Depo sit In surance Corpo ration, when ever i n the judgment of said board additional funds are required for insur- ance purposes : Provided, That the Corporation shall not purchase or hold at any time said debentures or other obligations in excess of $250,000,000 par value : Provided further, That the proceeds derived from the purchase by the Corporation of any such debentures or other such obligations shall be used by the Federal Deposit Insur- ance Corporation solely in carrying out its functions with respect to such insurance . "( c) The am ount o f note s, bon ds, de bentur es, and other such obli- gations which the Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby incre ased b y $250 ,000,0 00. " SEC . 4. So much of section 31 of the Banking Act of 1933 as relates to stock ownership by directors, trustees or members of similar gov- erning bodies of member banks of the Federal Reserve System, is hereby repealed . Appro ved, June 16, 1934 . Loans on assets held for benefit of deposi- itors . Bank reopened, with- out paying deposits in full . Appraisal of assets . Auth orit y ext ende d to other eligible assets Obligations of Fed- eral Deposit Insurance Corporation . Purchase of, n hen add iti on al funds re- quired . Provisos . Limitation . Proceeds from such purc hases for insu rance purp oses sole ly . Maximum outstand- ing obligations p er- mitted . Provisions concern- ing stock ownership by dire ctors , etc., re- pealed . Ante, p 194.