proceeds thereof until the expiration of the time limited by said Acts for the institution of suit by such person or persons, and, in case suit shall be instituted within such time, shall hold said bonds or notes or proceeds subject to the order of the court having jurisdiction thereof: Provided further, That nothing herein contained shall affect or impair the priority of the claim of the United States against the bonds or notes deposited or any right or remedy granted by said Acts or by this section to the United States for default upon any obligation of said penal bond: Provided further, That all laws inconsistent with this section are hereby so modified as to conform to the provisions hereof: And provided further, That nothing contained herein shall affect the authority of courts over the security, where such bonds are taken as security in judicial proceedings, or the authority of any administrative officer. of the United States to receive United States bonds for security in cases authorized by existing laws. The Secretary may prescribe rules and regulations necessary and proper for carrying this section into effect. In order to avoid the frequent substitution of securities such rules and regulations may limit the effect of this section, in appropriate classes of cases, to bonds and notes of the United States maturing more than a year after the date of deposit of such bonds as security. The phrase 'bonds or notes of the United States' shall be deemed, for the purpose of this section, to mean any public-debt obligations of the United States and any bonds, notes, or other obligations which are unconditionally guaranteed as to both interest and principal by the United States." Section 304 of the act 10 to provide relief for the national emergency in banking is amended by adding at the end thereof the following new paragraph: "The Reconstruction Finance Corporation is authorized to purchase at par any part of the stock of any Federal home-loan bank owned by the United States, as evidenced by certificates, receipts, or otherwise, in amounts to be determined by the Corporation, with the approval of the Federal Loan Administrator; and the Secretary of the Treasury is authorized on behalf of the United States to sell such stock to the Corporation. Any such stock so purchased by the Corporation shall be held subject to the same conditions, requirements, rights, and privileges (including all dividend and retirement provisions) as are provided by law for or in connection with the ownership of such stock by the United States." 11 The Reconstruction Finance Corporation Act of 1932, section 2,11 as amended, provides as follows: 66* ** * The Corporation is authorized to make payments from time to time to the Secretary of the Treasury in amounts to be determined by the Corporation, with the approval of the Federal Loan Administrator, for the partial retirement of its capital stock at par and in payment of dividends from earnings. The aggregate amount of notes, debentures, bonds, or other such obligations which the Corporation is authorized to issue and have outstanding at any one time under the provisions of law in force on the date this paragraph takes 10 See United States Code, title 12, section 51d. 11 See United States Code, title 15, section 602. effect shall not be decreased by reason of any retirement of capital stock under this paragraph, and such aggregate amount is hereby increased by an amount sufficient to carry out the provisions of this paragraph and of the second paragraph of section 304 of the Act of March 9, 1933, as amended. "The Corporation, on or before June 30, 1941, may retire its capital stock and pay dividends under the preceding paragraph of this section, and may purchase stock of the Federal home-loan banks under section 304 of the Act of March 9, 1933, as amended, in an aggregate amount of not to exceed $300,000,000 to be determined by the Secretary of the Treasury; but the Corporation, with the approval of the Federal Loan Administrator, shall determine that portion of such aggregate amount which may be used for the retirement of the capital stock of the Corporation, the payment of dividends, and the purchase of such stock of the Federal home-loan banks." The President's Reorganization Plan No. I, approved April 3, 1939,12 part 4, section 402 (c) provides that: "The Administrator [Federal Loan Administrator] shall supervise the administration, and shall be responsible for the coordination of the functions and activities of the following agencies: * * * Federal Home Loan Bank Board, Home Owners' Loan Corporation, Federal Savings and Loan Insurance Corporation Chapter XII of the Bankruptcy Act of 1898, as amended,13 providing for real property arrangements by persons other than corporations, provides in section 517 that: "Nothing contained in this chapter shall be deemed to affect or apply to the creditors of any debtor under a mortgage insured pursuant to the National Housing Act and Acts amendatory thereof and supplementary thereto; nor shall its provisions be deemed to allow extension or impairment of any secured obligation held by Home Owners' Loan Corporation or by any Federal Home Loan Bank or member thereof." 12 See 53 Stat. 1423. 18 See 52 Stat. 840, 928. INDEX FEDERAL HOME LOAN BANK ACT AS AMENDED A Act, application to continental United States, Alaska, Hawaii, Section Page 2 (3) 1 Reservation of right to amend, alter, or repeal_ 30 21 Advances: Alterations, for... Separability, provision for. Title, "Federal Home Loan Bank Act". Administration expenses, appropriation for--- Amount, limitations on: If secured by mortgage insured under title II, National 10 (a) 1, 10b 9, 11 If secured by 6-year term amortized home mortgage. 10 (a) 2 10 (a) 3 199 If secured by stock maturing in 6 years or more- If secured by United States obligations.. 10 (a) 4 10 In relation to security deposited by nonmember.... Application for.......... Authority to grant.. Capital stock as security therefor... Of home mortgages maturing in more than 20 years. -- 10 (c) 11 To nonmember pending enabling legislative enactment. 6 (e) Of Federal Home Loan Bank Board, bonding, compensa- Allocation: Of borrowers to districts.. Of Federal home-loan banks.. Alterations, advances to finance_ Amendment of bylaws. - Section 4 (b) Amendment of Reconstruction Finance Act, section 2. Amortized home-mortgage loan: Attorneys: 3 10a Page 10 (a) 2, 10 (b) 9, 10 20 9 6 (c) 10 (b) 18 (a) 18 (b), 19 For Federal Home-Loan Bank Board, compensation, employment selection_. For Federal home loan banks bonding, compensation, dismissal, employment selection.... Personal liability affecting collateral for advance....... B Board (See Federal Home Loan Bank Board) defined... Acceptable by banks in payment of obligations.. Nature of, in respect of the United States Borrow, banks authorized to.. Adjustable by Board in proportion to unpaid principal outstanding. 6 (c) Authorized issue, minimum. 6 (a) Cancelation. (See Capital stock, surrender and cancelation.) Security for indebtedness of member.. 10 (c) 11 |