73d CONGRESS . SESS. I. CH. 98. JUNE 16, 1933 .
263 any of the purposes and subject to the conditions and limitations Po81, p. 265 . set forth in such Act, as so amended, and to make loans, by way of discount or otherwise and subject to such terms and conditions as may be prescribed by the chairman of the board of the Central Bank, Ante, p. 257. to Banks for Cooperatives established under section 2 of this Act . ST OCK SU BSC RIP TIO NS OF BORROWERS FROM CE NTR AL BAN K SEC. 35 . (a) Cooperative associations borrowing from the Central ow nership o f bank s Bank shall be required to own, at the time the loan is made, an tock required . amount of stock of the bank equal in fair book value (not to exceed Proportion to loan . par), as determined by the bank, to $100 per $2,000 or fraction thereof of the amount of the loan . Upon discharge of the loan the Stock to be canceled on payment of loan . stock held by the borrowing association shall be retired and canceled and the association shall be paid therefor, or in case the stock sub- scripti on is i ncluded in th e amoun t of th e loan there shall b e cred ited on the final payment of the loan, an amount equal to the amount paid for the stock or loan ed to subscri be for the st ock, as the ca se may be, minus the pro rata impairment, if any, of capital and guaranty fund of the Central Bank, as determined by the chairman of the board of the Central Bank.
Requirement waived (b) In any case in which a cooperative association applying for where state law does a loan is not authorized, under the law of the State in which it is no authorize such sub . organized, to subscribe for stock in the Central Bank, the bank shall, in lieu of sto ck subs cripti on, req uire th e borr owing a ssociat ion to pay into a guaranty fund, or the bank may retain out of the amount of the loan and credit to the guaranty fund, an amount equal to the Payment to banks guaranty food in lieu . amount which the borrowing association would have been required to own in stock if such association had been authorized to hold such stock . Upon discharge of its loan, the provisions of the last sen-
ceuaci on on die . c harge . tence of subsection (a) shall apply with respect to sums of such asso- ciation in the guaranty fund in the same manner as if such sums were repr esen ted by s tock . EARNINGS AND RESERVES OF CENTRAL BANK
Ear nin gs and re- serve s, SE C. 3 6 . The Cen tral Bank for Cooperatives shall, at the end of Surplus to be applied its fiscal year, apply the amount of its earnings in excess of operat- in covering losses, etc . ing expenses during such fiscal year, first, to making up any losses incurred ; second, to the restoration of the amount of the impairment, if any, of capital and guaranty fund as determined by the chairman of the board ; and at least 25 per centum of the remainder of such ate ed .arant y fund erc excess of earnings shall be applied to the creation and maintenance of a surplus equal to at least 25 per centum of the amount of the capital and guaranty fund . Any sums remaining may, with the Div ide nds ; restric. tion. approval of the chairman of the board, be devoted to the payment of dividends . Subscribers to the guaranty fund shall be entitled to dividends in the same amounts as subscribers to stock . No rate of dividend in excess of 7 per centum per annum shall be paid . Divi- govern. of, held by dends on stock held by the overnor, when paid, shall be credited to the r evolvi ng fun d cre ate un der se ction 6 of the Ag ricult ural Marketing Act, as amended . DEBENTURES OF CENTRAL BANK Debentu res . SEC . 37. The Central Bank is authorized to issue debentures, but limit e, etc . ; amount the amount of debentures which may be outstanding may not exceed at any one time five times the paid-in capital and surplus of the bank . Such debentures shall be issued at such times and subject to cur i rms, interest, se , such terms and conditions as the board of directors shall determine but shall bear such interest rates as may be fixed by the chairman of
