3*23 TITLE 15.-COJ1;$1i§I€ 339. Purchase of bonds of United Stetes.·——'1`he corporzltion I-in skull be empowered and authorized to snbscribefor, acquire, a xml own, buy, sell, anddenl in bonds stud obligatione of the t" l`nitl·d States issued or converted after September 24, 1917, :1 I , meh extent as the bourcl of directors, with the approval ei I pmt- Seeretzxry of the TrcaSury,"~mey from time to time deter- 1; mano. (Apr. 5, 1918, c. 45Q § 11, ’40Stog 509.) v -0 ~ , ;= 310. Bonds of corporintion; iésue, etc.——The corporation il? quell he ’empewered amlauthorizcd to issue 8Il(!‘h£lV€ out- 0 `mndihg at any one time its notes onbpnds in an emount t
- —;;~;;·¤·og;1ting not more `tlmn three times its paid-in gapttal, such S
notes or bonds to nmture not less tluonrsix months nor more 5 when five years from the respective dates} of issue, and may be F rodwxnzible before maturity at the option of the corporation, as S may he stipulated in such notes or bonde, and tobear such- rate ”S kw rates: of interest 1;:2 nmy be determined by the board of i t dirwtere, but such rate or rates "of lixtereet shrill be subject to li the approval of the Secretary of the Treasury. Such notes/or $~ mmls ehallxhave an tlrst and paramount floating charge on all é the Assets of the corporation, ond thecorporetion shallnot at pany time rnortgage or pledge eny ot its assets. Such notes or I lmmls mayW‘be issued at not less than parin payment of any T mlvzmces authorized l§y=this_ subdivision of this chapter, or may U he olfered for sale publicly or to any individuulk tlrm, corpora- E tion. or association, at such price or prices at. not `léssfthan ‘ · pur use the l;oa1·¢ltof"dlre<·t0rS, with theoupproval of the Sec~;·e— a‘ wry of the Treasury, may determine. ‘The power of the cor— ' iwmtion to issue notes or bonds may be exercised at any time 3 prior to January 31; 192], but no .euch.bonds or notes shall * , mgxtureslatér than June 30, 1927. ¤ · · _ J -i Vpon sueh terms not jnconsletent herewith as may be deter- ` mined from time to‘tlme’by the board of directors, 'with`~thé { approval, of the Secretary oto the/1‘reesury, at or 'before the I ismo thereof, any ot such bonds may beiesuedp payhble in,an;¤ ` ixmsign m·oney_ or foreign moneys, or issued lpeyublew at the {»p;i’o:n of the respective holders thereof elltherlu dollars or in may `forelgn money or foreign moneys utjsuch Qxed rate of { t~miz1nge° as may be stated in any such bonds. For the purpose of determining the emount ot bonds issued payable in gmy for- · oixn a;umey or torelgn moneys thedollar equivalent shall be deter- 1 ' mined byjthe pero! exchenge at the--date of issue thereof, as vstixnnted by the°Dlrector of the Mint and proclaimed by, the Secretary ot the Trusury le pursuance of the provisions of { section 372 ot'»'1‘ltle 31,- Mortar Ami Fgzuxcu. (Apr. 5, 1918, c.e ` 45. §_12. 40 Stat. 509; Aug: 24, 1921, c. $0. § 5, 42 St¤t.'_183;_ I June 10, 1922, c. 215, §# 2, 42 Stat. $34; Mar. 4, 1923,}. 252, _‘ ffitle V, Q 502, 42 Stet..14$1..)‘ n l - A i 341% Discount by reserve banks of obligations of member 1 banks; secured by bonde.·———·The Federal reserve bunks `shell" be ·, authorized, subject to the maturity liuiltations __ofcl1apter 3, , · Title 12, Bzmnwnzee Bemmm, and to regxxletioneot .f.hB’F€d81'&1" _i/ieseiwe Board, to discount the direct obligetlom jot member I , bzmksisecured by-'such netee or bonds ot the corporation and to rediecount notes or odxer negotltgble instruments 'mcured by such 'I wwtes or bonds enddedoreed by. g xnembefbauk. Discounts or , rediecounte under this section shell be at an lntereev rate , equal, to the prevailing rate for eligible commercial paper of j correepondingmaturities; `_ · i ·, A ‘ q _ Any Federal reeerre bank may, with the approval of the ; I—‘euerel Reserve Boerd, use any obligation or paper · so ec- 1 y quired for any purpose for_wh1ch·it_ls authorized to um oblige- 4 iioneor paper seemed by bonds or notes of the United States J what bearing the elreuletton privilege: pPreeeided, however, < That whenever Federal reserve notes ere issued egelnst the 1 security of such obligations or] pope; the Federal iteeerve élsoerd-may nuke e special interest charge on such notes}, which, ~a
@1;: AND Tzzllzw § 343
- 1 the discretion of tll€?AFi‘§€l(‘l‘5ll Roscrvo llmml, need not bv
npplicahlp to other Fedcml 1'€S€I‘\`(! notes which may from imo to time be issued and outstanding. All provigesiezls of law, not inconsistent herewith, `in rcépcct to the sxcquisitiou by any Federal reserve bank got ollligationxe or »pnper secured by such »onds or notes of the United States; and in respect to Federal eserve notcslssucd ngninst the security of such obligations or »aper,i shall extend, in so far as applicable, to the acquisition »f obligntions or paper secured by the bonds of the corporaion and to the Federal reserve `notos issued against the lecu1·°ity or such obligations or paper. (Alber. 5, 1918, c. 45, E l3,_40 Stat; 510;`Aug. 2-1, 1921, c. 80, § 6, 42 Stat, 181.) 342. Authorization to commence business.>—'l§‘l1e_(corporation 2hnll not exercise any of .,tl1 pqxyeré granted bytthis subdivilon of this chapter or perform any business, except such as is ncldentnl nnd necessarily preliminary .to its organization mtil tt has been authorized by the President of. the United States to commence business under' the provisions of this subllwfision of this chapter. . (Amz.5, 1918, c. 45, 5 14, 40 Stat. 510.) ,343; Moneys of corporntion;°hdep0sit,and disposition thereof; iql1idétion.——·All moneys_ of "tbe corporation not otherwise emiloyed mny"be kept on deposit, subject to checkfwith the llreasuren of the United States, or jn any ot the Federal relerve banks, or may, upon `the dlrectionof the board of {lirectors of the corporation, with the approval ot 'the Secretary St the Treasury, be invested lu bonds or other obligations of _
- he United ‘ States issued or conyerted after September 24,_
l917, or upon, like direction and approval; may be used from Time to time- in the purchase or redemption of-any bonds ssued by the corporation. . · " , , 'The Federal reserve banks are authorized to not as deposizorieq gfor and as llscal agents of the corporation in the
- enérnli-performance ot the powers conferred by this subdi· `
vision ot this’chnpte‘r. " " l ‘ Beginning January 1, 1925, .the·dlrect0rs,0i' thelcorporntion shall proceed to liquidate its assets and 'wlnd up its; nifnirs, except an speclilcnlly provided my thfs subdivision ‘ct this zhapter; ebut the directors of the corporation, in their dlscre= · tion, may, from time to time prior to such liquidation, sell and meme ot any, securities or other property acquired by the corporation. _ t — _· ._ " After January 1, 1925, the corporation mag, with the upproval ot the Secretiry of the Treasury, deposit with the ` Treaéurerl et the United Staten, es n special deposit, out or money belonging to the corporation, hrs from time to time received by it in the `course ohllquldation or. otherwise; an amount equal to lhe aggregate amount of all outstanding Bonds or notes Loot the corporation, including prlnclpel and lnterest te\mnturity. §Monejvs so gleposited shall constitute. n special fund, for the tl payment of principal “¤nd_ interest pf such bonds or notes, or for the*purchns»e or redemption ot such bonds! or notes at .not more than oper; andnccrued interest, and may be drawn upon or pale out for no other purpose. Yifhenover there shall here been depobited _ ln such special fund an amount equal to the aggregate amount ot all bonds or note; ot `the corporation then outstanding, lncluding principal andlnterest to maturity, the corporation may, with the gnpprdval of the Secretary ot- the Trensury,,pay into the Treasury of the United States, as miscellaneous receipts, any moneys belonging to the. corporation, or received from tlzne to time in the course of liquidation or otherwlberin exoe.ss_ of a jreneonnble reéerve to meet all liabilities and expenses ·during ’—· llqulclation. ’Whcnover`any suehpoymeut lscmade, an amount of capital stock ortho corporation egunl in per value to the amount so pnld-ln shall be canceled and retired. _ _ V ' A1l,net earnings ot the corporation not requ`h·e·d for its operations smll be a€:cumu1uted_, us n reserve fund until such time
