Page:United States Statutes at Large Volume 78.djvu/847

 78 STAT. ]

PUBLIC LAW 88-560-SEPT. 2, 1964

SEC. 904. Section 5(c) of the Home Owners" Loan Act of 1983 is amended by adding at the end thereof a new paragraph as follows: "'For the purpose of this section the terms 'real property' and 'real estate' shall include a leasehold or subleasehold estate in real property under a lease or sublease the term of which does not expire, or which is renewable automatically or at the option of the holder (or at the option of the association) so as not to expire, for at least hfteen years beyond the maturity of the debt." SEC. 905. Section 5(c) of the Home Owners' Loan Act of 1933 is further amended by adding at the end thereof (after the paragraph added by section 804 of this Act) the following new paragraph: "Any such association is authorized to invest in the capital stock, obligations, or other securities of any corporation organized under the laws of the State, District, Commonwealth, territory, or possession in which the home office of the association is located, if the entire capital stock of such corporation is available for purchase only by savings and loan associations of that State, District, Commonwealth, territory, or Ix>ssession and by Federal savings and loan associations having their home offices therein, but no association may make any investment under this sentence if its aggregate outstanding investment under this sentence, determined as prescribed by the Board, would thereupon exceed 1 per centum of its assets." SEC. 906. Section 10(b) of the Federal Home Loan Bank Act is J J ^ ^ amended— ^ ^ ... (1) by striking out "twenty-five" in clause (1) and inserting in lieu thereof "thirty"; and (2) by striking out "$35,000" in clause (2) and inserting in lieu thereof ^'$40,000". SEC. 907. The second proviso in the first paragraph of section 5(c) of the Home Owners' Loan Act of 1933 is amended to read as follows: ": And provided further, That any portion of the assets of such associations may be invested in obligations of, or fully guaranteed as to principal and interest by, the United States, or in the stock or bonds of a Federal Home Loan Bank, or in obligations, participations, or other instruments of or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association or any other agency of the United States; or in general obligations of any State or of any political subdivision thereof; and as used in this proviso the term 'State' shall include the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States". SEC. 908. The first sentence of the second paragraph of section 5(c) of the Home Owners' Loan Act of 1933 is amended to read as follows: "Without regard to any other provision of this subsection except the urea requirement, any such association is authorized to invest a sum not in excess of 20 per centum of the assets of such association in loans insured under title I of the National Housing Act, in home improvement loans insured under title II of the National Housing Act, in unsecured loans insured or guaranteed under the provisions of the Servicemen's Readjustment Act of 1944, as amended, or chapter 37 of title 38 of the United States Code, and in other loans for property alteration, repair, or improvement: Prcnrided, That no such loan, unless so insured or guaranteed, shall be made in excess of $5,000." SEC. 909. Title IV of the National Housing Act is amended by adding at the end thereof the following new section:

805 12 USC 1464.

ei Stat. 714; 76 Stat. 779. 12 USC 1430.

^^ use i464.

j/gg^^*^ ^^°^" 12 USC 1707i7i5y. ss Stat. 284, ^2 stat, 1203. ^730"^^ ^^^^

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