20 (1) purchase, sell, and service mortgages, includ ing participation in mortgages, on one- to four-family residential properties which are insured by a mortgage insurance corporation under authority granted by this Act or are insured or guaranteed by an agency of the United States; (2) publish information concerning the prices, value, and other relevant data with respect to mortgages eligible for purchase or sale, in whatever form and frequency may be prescribed by the Joint Board; (3) issue with the approval of the Joint Board and have outstanding bonds, notes, or other obligations up to a maximum of twenty times the sum of its capital, surplus, reserves, and undistributed earnings, and pledge its assets as security for these obligations: Provided, That not less than ten days' notice shall be given to the Joint Board shall have authority to prohibit the sale of the aggregate amount of securities of the mortgage marketing corporation outstanding exceed the amount of its ownership, free of all liens of encumbrances, of cash, mortgages, and bonds or other obligations of, or guaran teed by, the United States. Bonds, notes, or other obli 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 21 gations issued by any mortgage marketing corporation, as provided herein, shall be lawful investments, and may be accepted as security for all fiduciary, trust, and pub lic funds, the investment or report of which shall be under the authority and control of the United States, or any officer or officers thereof; (4) set such underwriting fees, maturities, rights of redemption, rates of interest, discounts, and other terms of sale upon an issue of its obligations as conform to general standards prescribed by regulations of the Joint Board; and (5) purchase in the open market any of its outstanding obligations at any time and at any price. SUCCESSION SEC. 403. Each mortgage marketing corporation 16 organized under this title shall have succession from the date 17 of its organization unless it is dissolved by act of its share18 holders or its franchise becomes forfeited by order of the 19 Joint Board. 23 2 2 2 2 24 25 (1) to adopt and use a corporate seal; (2) to adopt bylaws for the conduct of its business; (3) to make contracts; 22 (4) to sue and be sued, complain and defend, in any court of law or equity, State or Federal; (5) to conduct its business in any State of the United States or in the District of Columbia or Puerto Rico and to have one or more offices in such State or in the District of Columbia or Puerto Rico, one of which offices shall be designated at the time of organization as its principal office; (6) to elect, select, appoint, employ, and remove officers, employees, attorneys, and agents; (7) to purchase, hold, and convey only such real estate as shall be (i) necessary for its accommodation in the transaction of its business, (ii) conveyed to it in satisfaction of debts previously contracted in the course of its dealings, or (iii) purchased by it at sales under judgments, decrees, or mortgages held by it, or to secure debts due to it; except that no such corporation shall hold title to and possession of any real estate for a period in excess of seven years, unless extended by the Joint Board, if such real estate was acquired in satisfaction of, or to secure, any debt owing to it; and (8) to do all things which are necessary or incidental to the proper management of its affairs and the 30-944 O 64-4 1 2 3 4 5 6 23 proper conduct of its business, but no mortgage marketing corporation shall transact any business except such as is incidental to its organization until it has been au thorized to do so by the Joint Board. CITIZENSHIP 7 SEC. 405. Each mortgage marketing corporation, for the purpose of all actions by or against it, real, personal, or 8 mixed, and all suits in equity, shall be deemed a citizen of 9 the State in which its principal office is located. 10 11 CAPITAL REQUIREMENTS SEC. 406. No authorization to commence business shall 12 be granted by the Joint Board to any mortgage marketing 13 corporation until the Joint Board is satisfied that initial capi14 tal in the amount of not less than $5,000,000 par value has 15 been subscribed for at not less than par and paid in full in 16 cash. Such capital shall be represented by shares of stock 17 each with a par value of $100. DIRECTORS AND OFFICERS SEC. 407. A mortgage marketing corporation shall have a board of directors numbering at least nine but no more than fifteen, to be elected by the shareholders. Each share of stock shall entitle the holder to cast one vote for each director. 24 1 The board of directors shall elect the officers and determine 2 their powers and duties. 3 4 5 TITLE V-CHANGES IN RELATED STATUTES NATIONAL BANK ACT SEC. 501. (a) The fifth sentence of the seventh para 6 graph of section 5136 of the Revised Statutes, as amended 7 8 (12 U.S.C. 24), is amended by inserting before the period a comma and the following: "except shares of stock of a 9 mortgage insurance corporation or of a mortgage marketing 10 corporation, as defined in the Mortgage Market Facilities 11 Act of 1963: Provided, That no association shall purchase 12 shares of stock of either type of corporation in an amount 13 exceeding 5 per centum of the capital and surplus of the 14 association". 15 (b) The seventh paragraph of section 5136 of the 16 Revised Statutes, as amended (12 U.S.C. 24), is further 17 amended by inserting immediately before the last proviso 18 the following: ", or obligations of a mortgage marketing 19 corporation as defined in the Mortgage Market Facilities 20 Act of 1963". 21 FEDERAL RESERVE ACT 22 SEC. 502. Section 24 of the Federal Reserve Act (12) 23 U.S.C. 371) is amended by striking out the period at the 24 end of the third sentence of the first paragraph and inserting 25 in lieu thereof the following: “, and shall not apply to real |