Page:United States Statutes at Large Volume 49 Part 1.djvu/744

 74TH CONGRESS. SESS. I. CH. 614. AUGUST 23, 1935. The Corporation, in its discretion, may make loans on the security of or may purchase and liquidate or sell any part of the assets of an insured bank which is now or may hereafter be closed on account of inability to meet the demands of its depositors, but in any case in which the Corporation is acting as receiver of a closed insured bank, no such loan or purchase shall be made without the approval of a court of compete nt jurisdiction. "(4) Until July 1, 1936, whenever in the judgment of the board of directors such action will reduce the risk or avert a threatened loss to the Corporation and will facilitate a merger or consolidation of an insured bank with another insured bank, or will facilitate the sale of th e assets of an open or closed insured bank to and assumpt ion of its liabilities by another insured bank, the Corporation may, upon such terms and conditions as it may determine, make loans secured in whole or in part by assets of an open or closed insured bank, which loans may be in subordination to the rights of depositors and other creditors, or the Corporation may purchase any such assets or may guarantee any other insured bank against loss by reason of its assuming the liabilities and purchasing the assets of an open or closed insured bank . Any insured national bank or District bank, or, with the approval of the Comptroller of the Currency, any receiver thereof, is authorized to contract for such sales or loans and to pledge any assets of the bank to secure such loans. "(o) (1) The Corporation is authorized and empowered to issue and to have outstanding its notes, debentures, bonds, or other such obligations, in a par amount aggregating not more than three times the amount received by th e Corporation in payment of i ts capital stock and in payment of the assessments upon insured banks for the year 1936 . The notes, debentures, bonds, and other such obligation-- issued under th is subsection shall be redeemable at t he option of the Corporation before maturity in such manner as may be stipulated in such obligations, and shall bear such rate or rates of interest, and shall mature at such time or times, as may be determined by the Corporation : Provided, That the Corporation may sell on a discount basis short-term obligations payable at maturity without interest . The notes, debentures, bonds, and other such obligations of the Cor- poration may be secured by assets of the Corporation in such manner as shall be prescribed by its board of directors. Such obligations may be offered for sale at such price or prices as the Corporation may determine. "(2) The Secretary of the Treasury, in his discretion, is authorized to purchase any obligations of the Corporation to be issued hereunder, and for such purpose the Secretary of the Treasury is authorized to' use as a pu blic-debt tran saction the pr oceeds of the s ale of any securities hereafter issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under the Sec ond Liberty Bo nd Act, as ame nded, are exte nded to includ e such purchases : Provided, That if the Reconstruction Finance Cor- poration fails for any reason to purchase any of the obligations of the Corporation as provided in subsection (b) of section 5e of the Reconstruction Finance Corporation Act, as amended, the Secretary of the Treasury is authorized and directed to purchase such obliga- tions in an amount equal to the amount of such obligations the Reconstruction Finance Corporation so fails to purchase : Provided further, That the Secretary of the Treasury is authorized and directed, whenever in the Judgment of the board of directors of the Corporation additional funds are required for insurance purposes, to purchase obligations of the Corporation in an additional amount of 699 Authority of Corpo- ration to assist closed in sur ed banks . Loans to avert threat- ened loss to Corpora- tion ; facilitate mergers . Post, p. 1237. Security. Guaranty of insured bank against l oss through assumption of liabilities of closed ban k. Contracts for sales or loans. Obligat ions of Cor poration ; issue and ag- gregate amount. Redemption. Interest rate ; matu- rity. Proviso. Sho rt-t erm obliga- tions. Security . Sale price. Purchase of Corpora- tion obligations by Sec- reta ry of Treas ury. Vol.40,P.288; V.S. C. A p . 1419. rite, pp. 20, 822. Provisos. When Reconstruc- tion Finance Corpora- tion fails to purchase. Vol. 4S,p.971 Ante, p.3. Aggregate amount.