Page:United States Statutes at Large Volume 49 Part 1.djvu/762

 74TH CONGRESS. SESS.I. CH. 614 . AUGUST 23, 1935 . SEC. 327. The third paragraph of section 23A of the Fe deral Reserve Act, as amended, is amend ed to read as fol lows "For the purpose of this section, the term `affiliate' shall include holding-company affiliates as well as other affiliates, and the pro- visions of t his section shall not apply to any affiliate (1) engaged on June 16, 1934, in holding the bank premises of the member bank with which it is affiliated or in maintaining and operating properties acquired for banking purposes prior to such date ; (2) engaged solely in conducting a safe-deposit business or the business of an agricul- tural credit corporation or livestock loan company ; (3) in the capital stock of which a national banking association is authorized to invest pur suant to section 25 of this Act, a s amended, or a s ubsidiary of such affiliate, all the stock of which (except qualifying shares of directors in an amount not to exceed 10 per centum) is owned by such affiliate ; (4) organized under section 25 (a) of this Act, as amended, or a subsidi ary of such affiliate, all the stock of which (except quali- fying shares of directors in an amount not to exceed 10 per centum) is owned by such affiliate ; (5) engaged solely in holding obligations of the United States or obligations f ully guaranteed b y the United States as to principal and interest, the Federal intermediate credit ban ks, the Federal l and banks, the Fe deral Home Loan B anks, or the H ome Own ers' Loan Corporation ; (6) where the affiliate relationship has arisen out of a bona fide debt contracted prior to the date of the c rea ti on of suc h rel ati ons hip ; or (7) where the affiliate relationship exists by reason of the ownership or control of any voting shares there of by a mem ber b ank as exec utor, admin istra tor, trust ee, re ceive r, agent, depositary, or in any other fiduciary capacity, except where such shares are held for the benefit of all or a majority of the stock- holders of such member bank ; but as to any such affiliate, member banks shall continue to be subject to other provisions of law appli- cable to loans by such banks and investments by such banks in stocks, bonds, debentures, or other such obligations. The provisions of this section shall likewise not apply to indebtedness of any affiliate for unpaid balances due a bank on assets purchased from such bank or to loans secured by, or extensions of credit against, obligations of the United States or obligations fully guaranteed by the United S tates as to prin cipal and i ntere st ." SEC. 328 . Section 24 of the Federal Reserve Act, as amended, is amended by adding at the end thereof the following new paragraph "Loans made to established industrial or commercial businesses (a) which are in whole or in part discounted or purchased or loaned aga inst as security by a Federal Rese rve bank under th e provisions of section 13b of th is Act, (b) for a ny part of which a commitment shall have been made by a Federal Reserve bank under the provisions of said section, (c) in the making of which a Federal Reserve bank p artici pates unde r the provi sions of s aid se ction, or (d) in whic h the R econ struc tion Fin ance Corp orat ion coope rate s or purc hase s a par- ticipation under the provisions of section 5d of the Reconstruction Finance Corporation Act, shall not be subject to the restrictions or limitations of this section upon loans secured by real estate ." SEC . 329 . Section 25 of the Federal Reserve Act, as amended, is further amended by striking out the last paragraph of such section ; the paragraph of section 25 (a) of the Federal Reserve Act, as amended, which commences with the words "A majority of the shares of the capital stock of any such corporation " is amended by striking out all of said paragraph except the first sentence thereof ; and the Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes" (38 Stat . 730), approved October 15, 1914, as amended, is further amended (a) by 717 Vol.48,p.183;U.S. C.,p .397. Loans to affiliates ; restriction. "Affiliate" con- s trued . Aff iliates exempted f rom l imita tions . V ol. 38, p. 273; Vol. 44, p. 1232 397 . Loans to industrial or co mme rci al busi- nesses exem pt from restrictions on real estate loans . Vol. 39, p . 755; U. S. C ., p . 410 . Interlocking person- nel between n ational b ank and foreign bank- ing c orporation . Vol. 39, p. 756; Vol. 48, p. 194; L.S.C.,p. 411.
 * U.5.C.,p.