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72d CONGRESS.  SESS. I.  CHS. 521, 522.  725  JULY 21, 22, 1932.  (b) Subdivision (1) of section 502 of such Act, as amended Direct loans. (U. S. C., Sup. V, title 38, sec. 642 (1)), is amended by striking out creased. 41/2 per centum" and inserting in lieu thereof " 3Y2 per centum ". af (c) The amendments made by subsections (a) and (b) of this Prior loans not section shall not apply with respect to interest accrued prior to the fte date of the enactment of this Act. SEC. 3. Subdivision (m) of section 502 of such Act, as amended (U. S. C., Sup. V, title 38, sec. 642 (m)), is hereby amended to read as follows: "(m) Loans made by the Administrator of Veterans' Affairs under Funds available for this section may at his option be made out of the United States loV. 43, p. 128. Government life insurance fund, or out of the Adjusted Service Certificate Fund created under section 505. In case of loans made out of the United States Government life insurance fund the fund shall be entitled to receive interest at the rate of 4 2per centum per inpnte ation of annum, compounded annually, but, in respect of interest on any such loan accruing after this subdivision as amended takes effect, the amount by which interest at such rate exceeds 31/2 per centum per annum, compounded annually, shall be paid to the United States Government life insurance fund out of the Adjusted Service Certificate Fund ". Approved, July 21, 1932. [CHAPTER 522.]  AN ACT July 22, 1932.  [H. R. 12280.] [Public, No. 304.]  To create Federal Home Loan Banks, to provide for the supervision thereof, and for other purposes.  Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may Federal Home Loan Bank Act. be cited as the " Federal Home Loan Bank Act." Definitions.  DEFINITIONS  SEC. 2. As used in this Act(1) The term "board" means the Federal Home Loan Bank Board. (2) The term "Federal Home Loan Bank" means a bank established by the board under authority of this Act. (3) The term " State " includes the District of Columbia, Puerto  Rico, the Virgin Islands of the United States, and the Territories of Alaska and Hawaii. (4) The term "member" (except when used in reference to a member of the board) means any institution which has subscribed for the stock of a Federal Home Loan Bank.  "Board." ederal Home Lan B  "state." "Member," io  excep.  mortgage  (5) The term "home mortgage loan" means a loan made by a  "Home  (6) The term "home mortgage " means a first mortgage upon real  "Home mortgag."  member or a nonmember borrower upon the security of a home loan" mortgage. estate, in fee simple, or leasehold under a renewable lease for not less than ninety-nine years, upon which there is located a dwelling for not more than three families, and shall include, in addition to  first mortgages, such classes of first liens as are commonly given to secure advances on real estate by institutions authorized under this Act to become members, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby.  726 "npaid  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  (7) The term " unpaid principal," when used in respect of a loan secured by a home mortgage means the principal thereof less the sum of (1) payments made on such principal, and (2) in cases where  principal."  shares or stock are pledged as security for the loan, the payments ,"Amortized" "instalmnent" homeormortgage  loan.  made on such shares or stock plus earnings or dividends apportioned or credited thereon.  (8) An "amortized" or " installment" home mortgage loan shall, for the purposes of this Act, be a home mortgage loan to be repaid  or liquidated in not less than eight years by means of regular weekly,  "Nonmember  bor-  monthly, or quarterly payments made directly in reduction of the debt or upon stock or shares pledged as collateral for the repayment of such loan. (9) The term "nonmember borrower" includes an institution  authorized to secure advances from a Federal Home Loan Bank under the provisions of section 6 (e). Federal Home Loan Banks.  fDesignate bank in each  FEDERAL HOME LOAN BANKS  mctber SEC. 3. As soon as practicable the board shall divide the condistrict tinental United States, Puerto Rico, the Virgin Islands, and the  Territories of Alaska and Hawaii into not less than eight nor more than twelve districts. Such districts shall be apportioned with due regard to the convenience and customary course of business of the institutions eligible to and likely to subscribe for stock of a Federal Home Loan Bank to be formed under this Act, but no such district shall contain a fractional part of any State. The districts thus created may be readjusted and new districts may from time to time be created by the board, not to exceed twelve in all. Such districts shall be known as Federal Home Loan Bank districts and may be designated by number. As soon as practicable the board shall establish, in each district, a Federal Home Loan Bank at such city as may be designated by the board. Its title shall include the name of the city at which it is established.  Member and nonmember borrowers.  ElIGIBILITY OF MEMIBERS AND NONIMEIBER BORROWERS  SEa. 4. (a) Any building and loan association, savings and loan association, cooperative bank, homestead association, insurance company, or savings bank, shall be eligible to become a member of, or a Conditions. nonmember borrower of, a Federal Home Loan Bank if such institution (1) is duly organized under the laws of any State or of the United States; (2) is subject to inspection and regulation under the banking laws, or under similar laws, of the State or of the United States; and (3) makes such home mortgage loans as, in the judgment of the board, are long-term loans (and in the case of a savings bank, if, in the judgment of the board, its time deposits, as defined in section 19 of the Federal Reserve Act, warrant its making such Disquaifications. loans). No institution shall be eligible to become a member of, or a nonmember borrower of, a Federal Home Loan Bank if, in the judgment of the board, its financial condition is such that advances may not safely be made to such institution or the character of its management or its home-financing policy is inconsistent with sound and economical home financing, or with the purposes of this Act. Membership and (b) An institution eligible to become a member or a nonmember rie restrictionsborrower under this section may become a member only of, or secure Eligible institutions.  advances from, the Federal Home Loan Bank of the district in which  is located the institution's principal place of business, or of tle bank of a district adjoining such district, if demanded by convenience and then only with the approval of the board.  72d CONGRESS.  SESS. I.  CH. 522.  727  JULY 22,1932.  (c) Notwithstanding the provisions of clause (2) of subsection Building, etc., as(a) of this section requiring inspection and regulation under law gible tate ifsubjecting regulationelito as a condition with respect to eligibility for memberhip, any building prescre i subpectiont.  and loan association which would be eligible to become a member of a Federal Home Loan Bank except for the fact that it is not subject to inspection and regulation under the banking laws or similar laws of the State in which such association is organized shall, upon subjecting itself to such inspection and regulation as the board shall prescribe, be eligible to become a member.  (d) Any home owner who comes within the limits of this Act obmemoer moeay obtain mortgage money and who is unable to obtain mortgage money from any other source ifunableelsewhere. may obtain same from any bank organized under this Act: Pro- Limitation.  vided, That this subsection shall not be effective when the Federal Government has had its stock retired. SEC. 5. No institution shall be admitted to or retained in member-  Home  mortgage  ship, or granted the privileges of nonmember borrowers, if the corm- Institution disqualibined total of the amounts paid to it for interest, commission, bonus, ome"onetchaxeeto discount, premium, and other similar charges, less a proper deduction legal rate, etc.  for all dividends, refunds, and cash credits of all kinds, creates an actual net cost to the home owner in excess of the maximum legal rate of interest or, in case there is a lawful contract rate of interest  applicable to such transactions, in excess of such rate (regardless of any exemption from usury laws), or, in case there is no legal rate of interest or lawful contract rate of interest applicable to such transactions, in excess of 8 per centum per annumi the State where such property is located. This section applies only to home mortgage loans made after the enactment of this Act. CAPITAL OF FEDERAL HOME LOAN BANKS AND SUBSCRIPTIONS  Contract  interest  rate  Federal Home Loan THERETO Banks.  SEC. 6. (a) As soon as practicable after the enactment of this Act  Minimum capital.  the board, with the approval of the Secretary of the Treasury, shall determine the minimum capital of each Federal Home Loan Bank which shall be not less than $5,000,000.  The board shall, as  Subscriptions.  soon as practicable thereafter, open books in each district established under section 3 for subscription to the capital stock of the Federal Home Loan Bank of the district. (b) The capital stock of each Federal Home Loan Bank shall be  Sh "esofstock.  divided into shares of a par value of $100 each. The minimum capital stock shall be issued at par. Stock issued thereafter shall be issued at such price not less than par as may be fixed by the board. (c) The original stock subscription for each institution eligible to  Originalnvestment.  become a member under section 4 shall be an amount equal to 1 per centum of the aggregate of the unpaid principal of the subscriber's home mortgage loans, but not less than $1,500. The board shall from time to time adjust the amount of stock held by each member so that,  Adjustments  of  as nearly as possible such member shall at all times have invested in the stock of the Federal Home Loan Bank at least an amount calculated in the manner provided in the preceding sentence (but  not less than $1,500). If the board finds that the investment of any if stoc hld member in stock is greater than that required under this section, ngsmaybereduced.  upon application of such member, the bank shall pay such member for each share of stock in excess of the amount so required an amount equal to the value of such stock, or, at the election of the bank, the whole or any part of the payments which would be so made shall be credited upon the indebtedness of the member to the bank. In Paymntforae either such event, stock equal in value to the amount of the payment or credit, or both, as the case may be, shall be surrendered and canceled. No share of stock shall be surrendered and canceled if the  effect of such surrender and cancellation would be to violate the  Rcpio  d  728  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  provisions of section 10 (c) requiring the amount of stock held by such member to equal at least one-twelfth of the outstanding advances to such member. stockshubspat for (d) Stock subscriptions other than by the United States shall be ay Installment P - paid for in cash, and shall be paid for at the time of application therefor, or, at the election of the subscriber, in installments, but not less than one-fourth of the total amount payable shall be paid at the time of filing application, and a further sum of not less than one-fourth of such total shall have been paid at the end of each succeeding period of four months. Istitetio (e) If the law of the State under which an institution described State laws dono not here permit stock purchase. in section 4 operates does not permit such institution to subscribe for stock in the Federal Home Loan Bank but if such institution has Admitted to barrow- the power to borrow money and give security therefor, the board uingprivileges on specifed terms, etc. may permit such institution to obtain advances on the same terms and conditions and subject to the same limitations as members (except that such institution shall not be required, during the period during which advances may be made under this subsection, to subscribe for stock in the Federal Home Loan Bank or to deposit such stock as collateral security as required in section 10), but such instiSecurityrequired. tution shall be required to keep on deposit such security, in addition to home mortgages, for such advances, as the board shall determine, which shall equal in value 1 per centum of the aggregate unpaid permissive only principal of such institution's home mortgage loans (but not less pending State asutori- than $1,500). No advance to any such institution shall be made zation. under authority of this subsection after the State in which the institution is organized enacts legislation authorizing such institution to subscribe for Federal Home Loan Bank stock or after the expiration quidation and ter- of the next regular session of the legislature of such State begun minttion if authority after the enactment of this Act, whichever is earlier. If, at the end withheld, of such time, such institution is not authorized to subscribe for stock, the bank shall proceed to liquidate the indebtedness of such instituLimitation on ad. tion to the bank and to terminate its relations with such institution. vances. No advance shall be made under authority of this subsection which matures more than one year after the advance is made, but the bank may renew any such advance for yearly periods, or less, thereafter. The maturity of no advance authorized under this subsection shall be later than the time of the enactment of legislation authorizing such institution to become a member or the expiration of such sessiof of the legislature of the State, whichever is earlier. tiois of lSinri'lllm er (f) Tile Secretary of the Treasury shall subscribe, on behalf of italtohbetakteovertby the United States, for such part of the mini.mum capital of each ury.  Federal Home Loan Bank as is not subscribed for by members under  subsection (c) of this section within thirty days after books have Shsurn been opened for stock subscriptions as provided in subsection (a). subjettocallbyboans. Payments for stock subscriptions by the Secretary of the Treasury shall be subject to call in whole or in part by the board, with the approval of the Secretary of the Treasury, at such time or times as Recelpts to issue; may be deemed advisable. Each Federal-Home Loan Bank receiving such payments shall issue receipts therefor to the Secretary of the Treasury, and such receipts shall be evidence of the stock ownership cm for stock pur- of the United States. The aggregate amount expended by the chaelimited. lRecoutruetion Fi- Tnited States for the purchase of stock under this Act shall not "amendment.Act'n exceed $125,000,00. The Reconstruction Finance Corporation Act, Ante,P. 5. approved January 22, 1932, is amended by adding at the end of Neeessary funds for section 2 thereof the following new paragraph pament to be fr'"Inorder to enable the Secretary of the Treasury to make paynihed by corporation. ments upon stock of Federal Home Loan Banks subscribed for by  him in accordance with the Federal Home Loan Bank Act, the sum  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22, 1932.  729  of $125,000,000, or so much thereof as may be necessary for such purpose, is hereby allocated and made available to the Secretary of the Treasury out of the capital of the corporation and/or the proceeds of notes, debentures, bonds, and other obligations issued by the corporation.  For the purposes of this paragraph, the corporation iBon ds, et.,  shall issue such notes, bonds, debentures, and other obligations as may be necessary."  to be  (g) After the amount of capital of a Federal Home Loan Bank CiSsttockheldb paid in by members equals the amount paid in by the Secretary of To be retired when the Treasury under subsection (f), such bank shall apply annually bers is at mep.  to the payment and retirement of the shares of the capital stock held by the United States, 50 per centum of all sums thereafter paid in as capital until all such capital stock held by the United States is retired at par. Stock held by the United States may at any time, in the tme ment rt discretion of the Federal Home Loan Bank, and with the approval mit. of the board, be paid off at par and retired in whole or in part; and the board may at any time require such stock to be paid off at par and retired in whole or in part if in the opinion of the board the Federal Home Loan Bank has resources available therefor: Provided, J^O That accumulated dividends, as provided in subsection (k), have dends.  My  d  been paid. (h)  Stock subscribed for otherwise than by the United States, and fei,Unauthoriazed etc.  the right to the proceeds thereof, shall not be transferred or hypothecated except as hereinafter provided and the certificates therefor shall so state. (i) Any member may withdraw from membership in a Federal  Home Loan Bank six months after filing with the board written notice of intention so to do, and the board may, after hearing, remove any member from membership, or deprive any nonmemberborrower of the privilege of obtaining further advances, if, in the opinion of the board, such member or nonmember borrower has failed to comply with any provision of this Act or the regulations of the board made pursuant thereto or if, in the opinion of the board, such member or nonmember borrower is insolvent.  In any such case,  (j) A Federal Home Loan Bank may, with the approval of the board, permit the disposal of stock to another member, or to an institution eligible to become a member, but only to enable such  Iundbtedess to  oU  ransrof stock.  an institution to become a member.  Dividens.  dividend distributions without preference, except that stock sub-  S  (k) All stock of any Federal Home Loan Bank shall share in  fr  mewhmehip  the indebtedness of such member or nonmember borrower to the Federal Home Loan Bank shall be liquidated, and the capital stock in the Federal Home Loan Bank owned by such member shall be surrendered and canceled. Upon the liquidation of such indebtedness such member or nonmember borrower shall be entitled to the return etc.b o of its collateral, and, upon surrender and cancellation of such capital stock, the member shall receive a sum equal to its cash paid sub- Ep . scriptions for the capital stock surrendered, except that if at any time the board finds that the paid-in capital of a Federal Home Loan Bank is or is likely to be impaired as a result of losses in or depreciation of the assets held, the Federal Home Loan Bank shall on the order of the board withhold from the amount to be paid in retirement of the stock a pro rata share of the amount of such impairment as determined by the board.  trans-  dbU  scribed for by the United States shall be entitled to dividends at ssto.chdbu a rate of 2 per centum per annum cumulative from the date of investment but in any case in which the rate of dividend is in excess  o  m  be  730  72d CONGRES  SESS. S.I.  CH. 522.  JULY 22,1932.  of 2 per centum, the stock subscribed for by the United States shall be entitled to dividends at a rate not in excess of that paid on other stock. MANAGEMENST OF BANKS Management of SEC. 7. (a) The management of each Federal Home Loan Bank bTobevestedinboard shall be vested in a board of eleven directors, all of whom shall  be citizens of the United States and bona fide residents of the district in which such bank is located. Appointment of two (b) Two of such directors shall be appointed by the board. The Terms. terms of such directors shall expire one year and two years, respectively, from the end of the calendar year 1932, and their successors shall be appointed by the board for terms of three years. Division of nine di(c) Nine of such directors, three of whom shall be known as groups. into three class A directors, three of whom shall be known as class B directors, uppoi'ntent, to be and three of whom shall be known as class C directors, shall be first elected forthree years. appointed by the board, and shall serve until the end of the calendar year 1932. Their successors shall be elected as provided in subsection (d), and of such successors first elected one of each such class shall serve for one, two, and three years, respectively. Thereafter all such directors shall serve for three years. Directors of classes A, B, and C, whether appointed or elected, shall be chosen from among persons connected with the home-financing business. be dividedmi tree (d) The board shall divide all the members of each Federal groups. Home Loan Bank into three groups which shall be designated as ions groups A, B, and C, which groups shall represent, respectively, and as fairly as may be, group A, the large, group B, the medium-sized, etc  f diretors,  and group C, the small members, the size of such members to be determined according to the aggregate unpaid principal of the member's home mortgage loans. The board may revise the memberDirectors elected by ship of such groups from time to time. Of the directors elected as hereinafter provided, each class A director shall be an officer or director of a member in group A, each class B director shall be an officer or director of a member in group B, and each class C director iegnulations goSvern shall be an officer or director of a member in group C. Each nmember shall be entitled to nominate suitably qualified persons for elec-  elections.  tion as directors of the class corresponding to the group to which such member belongs, and shall east one vote for each director in its class. The directors of each class shall be nominated and elected in accordance with such rules and regulations as may be prescribed Fiingvaanes Chairman and vice hairan to be designated.  stock hlld is less tbn  $1,000,000.  Copensaton  and  by the board.  (e) Any director appointed or elected as provided in this section to fill a vacancy shall hold office only until the expiration of the termf of his predecessor. f)  The board shall designate one of the directors of each bank  to be chairman, and one to be vice chairman, of the board of directors of such bank. (g) If at any time when nominations are required, members shall hold less than $1,000,000 of the capital stock of the Federal  Home Loan Bank, the board shall appoint a director or directors to fill the place or places for which such nominations are required. A director so appointed shall serve until the expiration of the calendar year during which he takes office. (h) Each bank may pay its directors reasonable compensation for the time required of them, and their necessary expenses, in the performance of their duties, in accordance with the resolutions adopted by such directors, subject to the approval of the board.  72d CONGRESS.  SESS. I.  CH. 522.  (i) Such board of directors shall administer the affairs of the bank fairly and impartially and without discrimination in favor of or against any member or nonmember borrower, and shall, subject to the provisions hereof, extend to each institution authorized to secure advances such advances as may be made safely and reasonably with due regard for the claims and demands of other institutions, and with due regard to the maintenance of adequate credit standing for the Federal Home Loan Bank and its obligations. EXAMINATIONS  AND  731  JULY 22,1932.  Administration.  STUDIES BY THE BOARD  SEC. 8. The board shall cause to be made from time to time exam- Examination and inations of the laws of the various States of the United States and sdi by the b the regulations and procedure thereunder governing conditions under which institutions of the kinds which may become members or nonmember borrowers under this Act are permitted to be formed or to do business, or relating to the conveying or recording of land titles, or to homestead and other rights, or to the enforcement of the rights of holders of mortgages on lands securing loans, or otherwise. If any such examination shall indicate, in the opinion of the Operatons restricted board, that under the laws of any such State or the regulations or satisfactory. procedure thereunder there would be inadequate protection to a Federal Home Loan Bank in making or collecting advances under this Act, the board may withhold or limit the operation of any Federal Home Loan Bank in such State until satisfactory conditions of ofe Estabishment law, regulation, or procedure shall be established. In any State. amination of borrowers where State examination of members or nonmember borrowers is where State law inadequa te. deemed inadequate for the purposes of the Federal Home Loan Banks, the board shall establish such examination, all or part of the cost of which may be considered as part of the cost of making advances in such State. The banks and/or the board may make Trends of values to studies of trends of home and other property values, methods of bestudied. appraisals, and other subjects such as they may deem useful for the general guidance of their policies and operations and those of institutions authorized to secure advances. ELIGIBILITY TO SECURE ADVANCES  Eligibility to secure advances.  cat ° SEC. 9. Any member or nonmember borrower of a Federal Home et rm of app s ion, Loan Bank shall be entitled to apply in writing for advances. Such application shall be in such form as shall be required by the Federal Home Loan Bank with the approval of the board. Such Fed- Discretlonarystion. eral Home Loan Bank may at its discretion deny any such application or, subject to the approval of the board, may grant it on such conditions as the Federal Home Loan Bank may prescribe. ADVANCES TO MEMBERS  SEC. 10. (a) Each Federal Home Loan Bank is authorized to make advances to members and nonmember borrowers, upon the security of home mortgages, such advances to be made subject to such regulations, restrictions, and limitations as the board may prescribe. Any such advance shall be subject to the following limitations as to amount: (1) If secured by a home mortgage given in respect of an amortized home mortgage loan which was for an original term of eight years or more, or in cases where shares of stock, which are pledged as security for such loan, mature in a period of eight years or more,  Advances to ra. s to m be  Authority  to  make,  mortgages conerred. sibatto  sp c f  e ed  tiefed nbytmorgage.  732  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  the advance may be for an amount not in excess of 60 per centum Maximum amount. of the unpaid principal of the home mortgage loan; in no case shall the amount of the advance exceed 40 per centum of the value of the real estate securing the home mortgage loan. secured by home mortgage given on any othermortgageloan.  (2) If  secured by a home mortgage given in respect of any other  home mortgage loan, the advance shall not be for an amount in excess of 50 per centum of the unpaid principal of the home mortgage loan; in no case shall the amount of such advance exceed 30 per  Limitation.  centum of the value of the real estate securing the home mortgage loan. Acceptance as collat(b) No home mortgage shall be accepted as collateral security for den in specified eases. an advance by a Federal Home Loan Bank if, at the time such advance is made (1) the home mortgage loan secured by it has more than fifteen years to run to maturity, or (2) the value of the real estate with respect to which the home mortgage is given exceeds $20,000, or (3) is past due more than six months when presented. Value of real estate For the purposes of this subsection and subsection (a) the value of considered as when real estate shall be as of the time the advance is made and shall be loan made. established by such certification by the borrowing institution, or such Investigations. other evidence, as the board may require. For the purposes of this section, each Federal Home Loan Bank shall have power to make, or to cause or require to be made, such appraisals and other investigaRestriction where tions as it may deem necessary. No home mortgage otherwise eligible agent is personally to be accepted as collateral security for an advance by a Federal iable. Home Loan Bank shall be accepted if any director, officer, employee, attorney, or agent of the Federal Home Loan Bank or of the borrowing institution is personally liable thereon, unless the board has specifically approved by formal resolution such acceptance. Advances made on properly secured notes.  Stock of h furt;her seu'rity  (c) Such advances shall be made upon the note or obligation of  the member or nonmember borrower secured as provided in this section, bearing such rate of interest as the board may approve or and the Federal Home Loan Bank shall have a lien upon r adetermine, s  and shall hold the stock of such member as further collateral security  for all indebtedness of the member to the Federal Home Loant Bank. t n time shall the aggrega.te outstanding advances made by any XAdvlmces not tio exeed twelve times Federal Hlome Loan Bankl to any member exceed twelve times the amount of eaitaleld, amounts paid in by such member for outstanding capital stock held  by it, or made to a onmebe brrower bexeedtl twelve times the value of the seeurity required to be deposited under section 6 (e). (d) The institutiolL applying for an advance shall enter into a Applicants r0euired toenter into oblratior primary and unconditional obligation to pay off all advances, together topay, etc. with interest and any unpaid costs and expenses in connection therewith according to the terms under which they were made, in such form as shall meet the requirements of the bank and the approval of the board. The bank shall reserve the right to require at any time, additional secity seurty re-d. re when deemed necessary for its protection, deposits of additional additiond served. collateral security or substitutions of security by the borrowing institution, and each borrowing institution shall assign additional or Saleet. of advaaces substituted security when and as so required. Subject to the to other Home Loan approval of the board. any Federal Home Loan Bank shall have Banks.  power to sell to any other Federal Home Loan Bank, with or without recourse, any advance made under the provisions of this Act, or to allow to such bank a participation therein, and any other Federal Home Loan Bank shall have power to purchase such advance or to accept a participation therein, together with an appropriate assignment of security therefor.  72d CONGRESS.  SESS. I.  CH. 522.  733  JULY 22,1932.  GENERAL POWERS AND DUTIES OF BANKS  SEC. 11. (a) Each Federal Home Loan Bank shall have power,  subject to the approval of the board, (1) to borrow money, to give security therefor, and to pay interest thereon, and (2) to issue bonds and debentures having such maturities as may be determined by the board, secured by the transfer of eligible obligations of borrowing institutions on advances made by the bank to borrowing institutions and by the deposit of home mortgages. (b) The board shall prescribe rules and regulations governing  the assignment, deposit, custody, substitution, and release of the obligations of borrowing institutions to the bank which are transferred and of the home mortgages securing such bonds and debentures, the forms and terms of such bonds and debentures, and the conditions under which they may be issued and retired, including any option with respect to payment and retirement thereof in advance of maturity, and such regulations shall provide for the deposit in trust, under such terms and conditions as it may deem advisable, of the home mortgages securing such bonds and debentures. For the purposes of this section the board is authorized to appoint, and fix the compensation and prescribe the duties of, a registrar in each district, who shall not be connected with or interested in any Federal Home Loan Bank, any member, any nonmem-  General powers and duties.  Borrow money, etc.  To prescrib 6e  rla-  tiens governing obltgationsofborrowinginstitutions, etc.  ber borrower, or any institution of a class eligible to become a member or a nonmember borrower under this Act, and to require pointed in ae dstricp of such registrar a bond, in such amount and with such sureties as Surety requ"ed.  the board may fix, conditioned on the faithful performance of the duties required of him. (c) Such deposits in trust shall be so maintained that the aggre-  Isseo  bonds, etc.  gate unpaid principal of the home mortgage loans secured by the mortgs depositedas home mortgages deposited as security for bonds or debentures shall, furity'eor,tmoustequ as nearly as possible, be at all times not less than an amount equal to 190 per centum of the total outstanding amount of such issue. Cash deposited under authority of subsection (d) shall be security for an amount of bonds and debentures equal to the amount of cash deposited. Direct obligations of the United States deposited under authority of subsection (d) shall be security for an amount of bonds and debentures equal to the par value of such obligations. Depsit of addition (d) The board may at any time require any Federal Home Loan or sulbstiution as so  Bank to deposit additional home mortgages or to make substitutions curity of home mortgages to secure such bonds and debentures, except that when in the opinion of the board home mortgages are not available for such purpose, it may permit, for such limited periods as it may deem advisable, the deposit of cash or direct obligations of the  Cash eto.. In eu.  United States in lieu of the deposit of substitute or additional home  loan mortgages. (e) The board shall approve or determine the rates of interest to be paid by the Federal Home Loan Banks upon the notes, deben-  rates notes, bonds, etc. Limtati-n.  tures, or bonds which they may issue except that no bond or debenture issued within seven years after the enactment of this Act shall bear a rate of interest in excess of 512 per centum per annum, and  no bond or debenture issued thereafter shall bear a rate of interest  M  in excess of 5 per centum per annum, and shall provide such margins peM' (not to exceed 1/2 per centum) between interest rates received upon advances made to borrowing institutions and interest paid upon obligations which the Federal Home Loan Bank may issue as will cover  to o  -  expenses of operation and reserves and, under such regulations as Retiet oFedermay be provided by the board, some part of such reserve may be asubscription.  devoted to retirement of the stock subscribed by the United States.  734  72d CONGRESS.  Joint,etc.,liabilityof s an .  Proziso.  peific accounts.  Mutual  arrange-  gations authorizned.i  Liabilitynotwaived.  Deposit restrictions.  bGener  Board to fix price of t  ls rateseand red eoun  CH. 522.  JULY 22,1932.  (f) The Federal Home Loan Banks shall be jointly and severally liable for the payment when due of all bonds and debentures, and of notes and other obligations issued by any Federal Home Loan Bank, and interest thereon, in accordance with their terms: Proided, That this shall not prevent any particular Federal Home Loan Bank, when specifically so authorized by the board, from borrowing funds temporarily under the terms of obligations which shall expressly state in substance in such manner as shall be approved by the board that the liability therefor is confined to the issuing bank. The Federal Home Loan Banks shall from time to time in accordance with rules, regulations, and orders of the board make adequate  agreements and arrangements among themselves for meeting the payment of the bonds, debentures, notes, or other obligations on which they are jointly and severally liable, and the interest thereon, but such agreements and arrangements shall not restrict in any respect the joint and several liability herein established. (g) Each Federal Home Loan Bank shall have power to accept only such deposits as are made by members and nonmember borrowers of such bank, or by other Federal Home Loan Banks. Such deposits shall not be subject to check, and no rate of interest in excess of 2 per centum per annum shall be paid thereon. " Deposits " as used in this section, does not include deposits made under section  fobanking 6 (e).  Rediscounts, etc.  SESS. I.  No Federal Home Loan Bank shall transact any banking  or other business not expressly authorized by this Act. (h) The board is authorized and empowered to permit, or, whenever in the judgment of at least four members of the board an emergency exists requiring such action, to require, Federal Home Loan Banks to rediscount the discounted notes of members or nonmember borrowers held by other Federal Home Loan Banks, or to purchase the bonds issued by any other Federal Home Loan Bank, or to make deposits with other Federal Home Loan Banks. In any case in which the board requires the purchase of bonds, the board  shall fix the price therefor, or if the board requires the acceptance of a deposit, it shall fix the security therefor. The rediscount rates and the rates of interest to be paid upon deposits shall be fixed by the board. Duties of bank. To carry stum equal to capital Useftitions, aetc, invtel ill Deposit in banks, ethort-termloans.  (i) Each Federal Home Loan Bank shall at all times have an o amount, equal to the sums paid in on outstanding capital subscriptions of its members, plus an amount, equal to tle current deposits received froim its menmbers and from nonueirber borrowers, invested in (1) obligations of the. United States, (2) deposits in banks or  trust companies, (8) advances with maturity not greater than one year made to members or nonmember borrowers, upon such terms and conditions as the board may prescribe, and (4) advances with maturity not greater than one year made to members or nonmember borrowers the amount of whose creditor liabilities (not including advances from the Federal Home Loan Bank) does not exceed 5 per Advances without centum of such member's or nonmember borrower's net assets, which mortgage securit. advances may be made without the security of home mortgages or  other security, upon such terms and conditions as the board may prescribe. Investent o desig-  (j) Such part of the assets of each Federal Home Loan Bank (except reserves and except sums provided for in subsection (i)) as  such bank may deem available therefor, and as are not required for advances to members or nonmember borrowers, may be invested, subject to such regulations, restrictions, and limitations as may be prescribed by the board, in direct obligations of the United States  72d CONGRESS.  SESS. I.  CH. 522.  735  JULY 22, 1932.  and in such securities as fiduciary and trust funds may be invested in under the laws of the State in which the Federal Home Loan Bank is located. INCORPORATION OF BANKS, AND CORPORATE POWERS  SEC. 12. The directors of each Federal Home Loan Bank shall, in accordance with such rules and regulations as the board may prescribe, make and file with the board at the earliest practicable date after the establishment of such bank, an organization certificate which shall contain such information as the board may require. Upon the making and filing of such organization certificate with the board, such bank shall become, as of the date of the execution of its organization certificate, a body corporate, and as such and in its  name as designated by the board it shall have power to adopt, alter, and use a corporate seal; to make contracts; to purchase or lease and hold or dispose of such real estate as may be necessary or convenient for the transaction of its business, but no bank building shall be bought or erected to house any such bank, nor shall any such bank make any lease for such purpose which has a term of more than ten years; to sue and be sued, to complain, and to defend, in any court of competent jurisdiction, State or Federal; to select, employ, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the transaction of its business, subject to the approval of the board; to define their duties, require bonds of them and fix the penalties thereof, and to dismiss at pleasure such officers, employees, attorneys, and agents; and, by its board of directors, to prescribe, amend, and repeal by-laws, rules, and regulations governing the manner in which its affairs may be administered; and the powers granted to it by law may be exercised and enjoyed subject to the approval of the board. The president of  Ipoerp ofrn  an  Establishment,  d  on  tinfcate.  Authority,  duties,  Limitation on build-  Bank president may  a Federal Home Loan Bank may also be a member of the board ofso dito directors thereof, but no other officer, employee, attorney, or agent No paid officer, etc., of such bank, who receives compensation, may be a member of the to be director.  board of directors. Each such bank shall have all such incidental powers, not inconsistent with the provisions of this Act, as are customary and usual in corporations generally. EXEMPTION  FROM TAXATION  SEC. 13. Any and all notes, debentures, bonds, or other such obli- Bank obligations to gations issued by any bank shall be exempt both as to principal and beexempt from taxrs  interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. The bank, including its Designated resources franchise, its capital, reserves, and surplus, its advances, and its ta ances included. income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that in any real property of the bank shall be Exception. subject to State, Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. The notes, debentures, and bonds issued by any bank, with unearned  coupons attached, shall be accepted at par by such bank in payment of or as a credit against the obligation of any home-owner debtor  of such bank.  Acceptance of notes  ., atpaif unearne ou  at  736 Loan bankts psitaies of  72d CONGRESS. hen so  public  Exepytion. To act as financial agents.  rbligations oBa  e-  SESS. I.  CH. 522.  JULY 22, 1932.  SEC. 14. When designated for that purpose by the Secretary of the Treasury, each Federal Home Loan Bank shall be a depositary of public money, except receipts from customs, under such regulations as may be prescribed by said Secretary; and it may also be employed as a financial agent of the Government; and it shall perform all such reasonable duties as depositary of public money and financial agent of the Government as may be required of it. S E . 15. Obligations of the Federal Home Loan Banks issued with  the approval of the board under this Act shall be lawful investments, of, as and may be accepted as security, for all fiduciary, trust, and public securcptane funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. The Federal reserve banks are authorized to act as depositaries, custodians, and/or fiscal agents for Federal Home Loan Banks in the To plainly state not general performance of their powers under this Act. All obligations Frederal obligations nor guaranteed by United of Federal Home Loan Banks shall plainly state that such obligations States. are not obligations of the United States and are not guaranteed by the United States. RESERVES AND DIVIDENDS Bank reserve. Provisions for aceumulating, and mainte-  nance of.  Payment of ends.  SEC. 16. Each Federal Home Loan Bank shall carry to a reserve account semiannually 20 per centum of its net earnings until said reserve account shall show a credit balance equal to 100 per centum of the paid-in capital of such bank. After said reserve has reached 100 per centum of the paid-in capital of said bank, 5 per centum of its net earnings shall be added thereto semiannually. Whenever said reserve shall have been impaired below 100 per centum of the paid-in capital it shall be restored before any dividends are paid. Each Federal Home Loan Bank shall establish such additional reserves and/or make such charge-offs on account of depreciation or impairment of its assets as the board shall require from time to divi- time. No dividends shall be paid except out of net earnings remaining after all reserves and charge-offs required under this Act have been provided for, and then only with the approval of the board. The reserves of each Federal Iome Loan Bank shall be invested, subject to such regulations, restrictions, and limnitations as may be prescribed by the board, in direct obligations of the United States and in such securities as fiduciary and trust funds may be invested in under the laws of the State in which the Federal Home Loan Bank is located.  Federal Home Loan Bank Board.  FEDERAL HOM1E LOAN BANK BOARD  SEC. 17. For the purposes of this Act there shall be a board, to be known as the " Federal Home Loan Bank Board ", which shall contppointment osatnsist of five citizens of the United States appointed by the President oiticalaftionet of the United States, by and with the advice and consent of the Senate. Not more than three members of the board shall be members  Composition.  of the same political party.  Tenrsofoffice.  Vaeancies.  Each member shall devote his entire time  to the business of the board. Before entering upon his duties each of the members shall take an oath faithfully to discharge the duties of his office. The President of the United States shall designate one of the members of the board to serve for a term of two years, one for three years, one for four years, one for five years, and one for six years from the date of the enactment hereof, and thereafter the term of each member shall be six years from the date of the expiration of the term for which his predecessor was appointed. Whenever a vacancy shall occur among the members the person appointed  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  to fill such vacancy shall hold office for the unexpired portion of the term of the member whose place he is selected to fill. Each of the members of the board shall receive a salary at the rate of $10,000 per annum: Provided, That during the fiscal year 1933 the salary shall be $9,000 per annum.  The President shall designate  one of the members as chairman of the board. The chairman shall be the chief executive officer of the board and in his absence or disability the duties of his office shall be performed by some one of the other members to be designated as acting chairman by the chairman in such order as he may determine. The board shall supervise the Federal Home Loan Banks created by this Act, shall  737 Salary. Proviso. Salary, fiscal year 1933. Chairman to be designated.  Authority, board.  etc., of  perform the other duties specifically prescribed by this Act, and shall have power to adopt, amend, and require the observance of such rules, regulations, and orders as shall be necessary from time to time for carrying out the purposes of the provisions of this Act. The board shall have power to suspend or remove any director, officer  employee, or agent of any Federal Home Loan Bank, the cause of such suspension or removal to be communicated in writing forthwith to such director, officer, employee, or agent and to such Federal Home Loan Bank. ADMINISTRATIVE EXPENSES  Administrative penses.  ex-  SEC. 18. (a) There is hereby authorized to be appropriated the saluriesandexpenesd.r sum of not to exceed $300,000 for salaries, travel and subsistence expenses, rents, printing and binding, furniture and equipment, law books, books of reference, periodicals newspapers, maps, contract stenographic reporting services, telephone and telegraph services, and all other necessary expenses of the board, together with expenses preliminary to the organization and establishment of the banks created hereunder, until the end of the fiscal year 1933. emianal (b) The board shall have power to levy semiannually upon the ments to be levied Federal Home Loan Banks, and they shall pay, on such equitable uponbanks. basis as the board shall determine, an assessment sufficient in its judgment to provide for the payment of its estimated expenses for the half year succeeding the levying of each such assessment, begin- Available for pay ning with the second half of the calendar year 1933. All expenses of mentof expenses. the board incurred in carrying out the provisions of this Act, as determined by it, beginning July 1, 1933 shall be paid from the proceeds of such assessments, and if any deficiency shall occur in such Provison in event of  fund at any time between such semiannual assessments the board shall  have power to make an immediate assessment against the banks to cover such deficiency on the same basis as the original assessment. If any surplus shall remain from any assessment after the expiration of the semiannual period for which it was levied, such surplus may be deducted from the next following assessment. SEC. 19. The board shall have power to select, employ, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the performance of its duties under this Act without regard to the provisions of other laws applicable to the employment or compensation of officers, employees, attorneys, and agents of the United States. No such officer, employee, attorney, or agent shall be paid compensation at a rate in excess of the rate provided in the case of members of the board. The board shall be entitled to the free use of the United States mails for its official business in the same manner as the executive departments of the Government; and shall determine its necessary expenditures under this Act and the manner in which they shall be incurred, allowed, and paid. 3051'--33---47  deficiency or surplus.  thorized  i  Paylimtaton.  kigpriileev.  a-  738  72d CONGRESS.  SESS. I.  CH. 522. JULY 22,1932.  EXAMINATIONS AND REPORTS  Examinations  and  reprts.  Annual report subited  SEC. 20. The board shall from time to time, at least twice annually, require examinations and reports of condition of all Fed-  eral Home Loan Banks in such form as the board shall prescribe and shall furnish periodically statements based upon the reports to be of the banks to the board. The board shall annually make a full  Emners.  report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of  the Congress. For the purposes of this Act, examiners appointed by the board shall be subject to the same requirements, responsibilities, and penalties as are applicable to examiners under the National Bank Act and the Federal Reserve Act, and shall have, in the exercise of functions under this Act, the same powers and privileges as are vested in such examiners by law.  Unlawful acts and penalties. Willfully overvaluv ing security.  Punishmentor  unismenor.  UNLAWFUL ACTS, AND PENALTIES  SEC. 21. (a) Whoever makes any statement, knowing it to be false, or whoever willfully overvalues any security, for the purpose of influencing in any way the action of a Federal Home Loan Bank or the board upon any application, advance, discount, purchase, or repurchase agreement, or loan, under this Act, or any extension thereof by renewal, deferment, or action or otherwise, or the  acceptance, release, or substitution of security therefor, shall be punished by a fine of not more than $5,000, or by imprisonment for not more than two years, or both.  ounterfeitg,etc.  Embezzlement, etc.  (b) Whoever (1) falsely makes, forges, or counterfeits any note, debenture, bond, or other obligation, or coupon, in imitation of or purporting to be a note, debenture, bond, or other obligation, or coupon, issued by a Federal Home Loan Bank; or (2) passes, utters, or publishes, or attempts to pass, utter, or publish, any false, forged, or counterfeited note, debenture, bond, or other obligation, or coupon, purporting to have been issued by a Federal Home Loan Bank, knowing the same to be false, forged, or counterfeited; or (3) falsely alters any note, debenture, bond, or other obligation, or coupon, issued or purporting to have been issued by a LFederal Home Loan Bank, or (4) passes, utters, or publishes, or attempts to pass, utter, or publish, as true any falsely altered or spurious note, debenture, bond, or other obligation, or coupon, issued or purporting to have been issued by a Federal Home Loan Bank, knowing the same to be falsely altered or spurious, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than five years, or both. bo  (c) Whoever, being connected in any capacity with the board or a Federal Home Loan Bank, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belonging to it or pledged or otherwise intrusted to it; or (2) with intent to defraud the board or any Federal Home Loan Bank, or any other body politic or corporate, or any individual, or to deceive any officer, auditor, or examiners of the board or a Federal Home Loan Bank, makes any false entry in any book, report, or statement of or to the board or a Federal Home Loan Bank, or, without being duly authorized, draws any order or issues, puts forth, or assigns any note, debenture, bond, or other obligation, or draft, mortgage, judgment, or decree thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than five years, or both.  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  739  (d) It shall be unlawful for any individual, partnership, asso- Unauthorized  use of  elation, or corporation (1) which is not a Federal Home Loan Bank to use the words " Federal home loan bank," or a combination of the word " Federal" with any of such words, as a name or a part of a name under which he or it shall do business (except in the case of a name under which business is being done at the time of the  me etc  enactment of this Act), or (2) which is not a Federal Home Loan  Misrepresentations.  Bank, to advertise or represent in any way that he or it is a Federal Home Loan Bank, or to publish or display any sign, symbol, or advertisement reasonably calculated to convey the impression that he or it is a Federal Home Loan Bank, or (3) which is not a member, Falsely claiming to advertise or represent in any way that he or it is a member, or members to publish or display any sign, symbol, or advertisement reasonably calculated to convey the impression that he or it is a member. Violations of this section shall be punishable by a fine of not Punishment for. exceeding $1,000 or by imprisonment of not exceeding one year, or both. (e) The provisions of sections 112, 113, 114, 115, 116, and 117 Contracts andagree of the Criminal Code of the United States (U. S. C., title 18, secs. mesignated provi. proiiDesignaldn 202 to 207, inclusive), in so far as applicable, are extended to apply sindepplrimiable.  to contracts or agreements of any Federal Home Loan Bank under this Act, which, for the purposes hereof, shall be held to include  Vol. 35 pp. lo-110i. U.. .. 475.  advances, loans, discounts, and purchase and repurchase agreements; extensions and renewals thereof; and acceptances, releases, and substitutions of security therefor. MISCEIL.T.AEOJU  Miscellaneous.  SEC. 22. (a) In order to enable the board to carry out the pro- nDesiatoele ton visions of this Act, the Treasury Department, the Comptroller of fdence, needed data,  the Currency, the Federal Reserve Board, and the Federal reserve etc. banks are hereby authorized, under such conditions as they may prescribe, to make available to the board in confidence for its use and the use of any Federal Home Loan Bank such reports, records, or other information as may be available, relating to the condition of institutions with respect to which any such Federal Home Loan Bank has had or contemplates having transactions under this Act or relating to persons whose obligations are offered to or held by any Federal Home Loan Bank, and to make through their examiners or other employees, for the confidential use of the board or any Federal Home Loan Bank, examinations of such institutions. (b) Every institution which shall apply for advances under this tconsent t e  .x  Act shall, as a condition precedent thereto, consent to such exami- cedentetc.  nation as the bank or the board may require for the purposes of this Act and/or that reports of examinations by constituted authorities may be furnished by such authorities to the bank or the board upon request therefor.  of sock, etc. SEO. 23. In order that the Federal Home Loan Banks may be tForms to be prepared.  supplied with such forms of stock, debentures, and bonds as may be necessary under this Act, the Secretary of the Treasury is authorized to prepare such forms thereof as shall be suitable and approved by the board, which shall be held in the Treasury subject to delivery, upon order of the board.  The engraved plates, dies, and bed pieces Custody  of  plates,  executed in connection therewith shall remain in the custody of the Secretary of the Treasury.  The board shall reimburse the Secre-  Rimbursmentofex-  tary of the Treasury for any expense incurred in the preparation, custody, and delivery of such stock, debentures, and bonds.  SEC. 24. (a) Any organization organized under the laws of any beilty fo  State and subject to inspection and regulation under the banking  mem  -  ft  740  72d CONGRESS.  SESS. I.  CH. 522.  JULY 22,1932.  or similar laws of such State shall be eligible to become a member under this Act if(1) it is organized solely for the purpose of supplying credit to its members; (2) its membership (A) is confined exclusively to building and loan associations, savings and loan associations, cooperative banks, and homestead associations; or (B) is confined exclusively to savings banks; and (3) of the institutions to which its membership is confined which are organized within the State, its membership includes a majority of such institutions. To become member  (b) In all respects, but subject to such additional rules and regu-  as the board may provide, any such organization shall be a member for the purposes of this Act. SEC. 25. Each Federal Home Loan Bank shall have succession until dissolved by the board under this Act or by further Act of qlations  Succession. Liquidation, reganization', etc.l  Congress.  SEC. 26. Whenever the board finds that the efficient and economi-  cal accomplishment of the purposes of this Act will be aided by such action, and in accordance with such rules, regulations, and orders as the board may prescribe, any Federal Home Loan Bank may be liquidated or reorganized, and its stock paid off and retired in whole or in part in connection therewith after paying or making provision for the payment of its liabilities. In the case of any such liquidation or reorganization, any other Federal Home Loan Bank may, with the approval of the board, acquire assets of any such liquidated or reorganized bank and assume liabilities thereof, tElgibilit of inSt  stoetiosk.  in whole or in part. SEC. 27 Any institution, except a national bank, trust company, or  other banking organization organized under any law of the United States, inclu(ing the laws relating to the District of Columbia, shall be authorized to subscribe for stock of a Federal Home Loan Bank if otherwise eligible to make such subscription under the terms of this Act, any provision in any such law to the contrary  noita tlt affeet rtsinr of  e  notwithstauding. Sl Ix. 28. If any provision of this Act, or the application thereof  to any person or ciremnstanees, is held invalid, the remainder of  the Act, and the application of such provision to other persons or  Ou tstanding,o beisueanensuinSlthleo  ciretunstances. shall not be affected therebv. St 2.. 9. Th notw.ithstanding any provisions of law prohibiting  bonds of the United States from bearing the circulation privilege, cent interest, orlessto for a period of three years from the date of enactment of this Act iete.r .mttion priv- all outstanding bonds of the United States heretofore issued or . 1026, issued during such period, bearing interest at a rate not exceeding  wSe'iS.  Vol. 31, p. 49. LTS. C., p. 267.  3% per centum per annum, shall be receivable by securityfheisa o the Treasurer of the United States as security for the issuance o circulating notes to national banking associations, and upon the deposit with the Treasurer of the United States by a national banking association of any such bonds, such association shall be entitled to receive circulating notes in the same manner and to the same extent and subject to the same conditions and limitations no provided by law in the ase of 2 per centun grold b o n ds of the United States bearing the  tionsnot applcable.  circulation privilege; except that the limitation contained in sec-  voa1.voI.  tion 9 of the Act of July 12, 1882, as amended, with respect to the amount of lawful money which may be deposited with the Treasurer of the Lnited States by national banking associations for the pur-  bse asbyerysnational banks ane of cirlating nTSbe delivered on deposit of bonds.  p.ss1. . s.C.,p.271.  pose of withdrawing bonds held as security for their circulating  notes, shall not apply to the bonds of the United States to which the circulation privilege is extended by this section and which are  72d CONGRESS.  SESS. I.  CHS. 522-525.  741  JULY 22,1932.  held as security for such notes. Nothing contained in this section aisting laws not shall be construed to modify, amend, or repeal any law relating to aec bonds of the United States which now bear the circulation privilege. As used in this section, the word " bonds " shall not include notes, Useofword "bonds." certificates, or bills issued by the United States. There are hereby authorized to be appropriated such sums as tioNeeoSsryadpropr may be necessary to carry out the provisions of this section. SEC. 30. The right to alter, amend, or repeal this Act is hereby Amendment. expressly reserved. Approved, July 22, 1932. [CHAPTER 523.]  A  July 22,1932.  AN ACT  [H. R. 12768.1  Making an appropriation for the Federal Home Loan Bank Board for the fiscal year ending June 30, 1933.  [Public, No. 30.]  Be it enacted by the Senate and House of Representatives of the BFedeard l Ho Loan United States of America in Congress assembled, That for the pay- Appropriation for exment of all authorized expenses of the Federal Home Loan Bank pen ses, fsc year 933. Board in carrying out the provisions of the Act of the Seventy- Ate, p. 72&  second Congress entitled "An Act to create Federal Home Loan Banks, to provide for the supervision thereof, and for other purposes," there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $250,000 for the fiscal year ending June 30, 1933, to be available for the purposes and subject to the conditions and limitations specified in such Act, including personal services and rent in the District of Columbia and elsewhere and expenses preliminary to the organization and establishment of the banks created thereunder. Approved, July 22, 1932. [CHAPTER 524.]  July 22, 1932. IS.461.]  AN ACT To repeal an Act entitled "An Act to legalize the incorporation of National Trades Unions," approved June 29, 1886.  [  Be it enacted by the Senate and House of Representatives of the un^nsaonl Trades United States of America in Congress assembled, That the Act Act legalizing incorentitled "An Act to legalize the incorporation of National Trades PVon. 24, Pra  Unions," approved June 29, 1886, be, and the same hereby is, repealed. Approved, July 22, 1932. [CHAPTER 525.] JOINT RESOLUTION Making appropriations to enable the Federal Farm Board to distribute Government-owned wheat and cotton to the American National Red Cross and other organizations for relief of distress.  , e  peaed.  July 22,1932. [H. J. Res. 461.]  [Pub. Res., No. 43.]  Resolved by the Senate and House of Representatives of the United wovearndmcottown. States of America in Congress assembled, That to enable the Federal penses Appropriation foreexecuting disFarm Board to carry into effect the provisions of the public resolution tribution, by American entitled "Joint resolution authorizing the distribution of Govern- National ed Cros.  ment-owned wheat and cotton to the American National Red Cross and other organizations for relief of distress," approved July 5, 1932, not to exceed $40,000,000 is hereby appropriated, out of any money in the Treasury not otherwise appropriated, to be used only for the  Apo,  p. 7W.  se r