482
PUBLIC LAW 8 7 - 2 1 0 - S E P T. 8, 1961
[75
ST A T.
Public Law 87-210 September 8, 1961 [H. R. 7108]
Federal Home L o a n B a nlc Act, amendment. 47 Stat. 727. 12 USC 1426. Capital stock. Subscription. 12 USC 1424.
Overs u b s c r i ptions.
Limitations.
12 USC 1430.
Cancellation o f o ver sub s cript ion.
AN ACT To amend the Federal Home Loan Bank Act and title IV of the National Housing Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (c) of section 6 of the Federal Home Loan Bank Act, as amended, is hereby amended to read as follows: "(c)(1) The original stock subscription of each institution eligible to become a member under section 4 shall be an amount equal to 1 per centum of the subscriber's aggregate unpaid loan principal, but not less than $500. The bank shall annually, as of the close of the calendar year, adjust, at such time and in such manner and upon such terms and conditions as the Federal Home Loan Bank Board may by regulations or otherwise prescribe, the amount of stock held by each member so that such member shall have invested in the stock of the Federal Home Loan Bank at least an amount calculated in the manner provided in the next preceding sentence (but not less than $500). If the bank finds that the investment of any member in stock is greater than that required under this subsection it may, unless prohibited by said Board or by the provisions of paragraph (2) of this subsection, in its discretion and upon application of such member retire the stock of such member in excess of the amount so required. Said Board, in its discretion, may, by regulations or otherw^ise, provide for adjustments in amounts of stock to be issued or retired in order that stock may be issued or retired only in entire shares. "(2) The provisions of paragraph (1) of this subsection shall be subject to the following limitations: " (i) No member which is a member on the date of the enactment of this paragraph (2) shall be permitted to reduce its stock to an amount which is less than the amount held by it as of the close of such date, except that a member may at any time reduce its stock to an amount which is not less than 2 per centum of its aggregate unpaid loan principal as of the beginning of the calendar year in which the reduction is made (but not less than $500): Provided, That if the amount to which such stock is so reduced is less than 2 per centum of such member's aggregate unpaid loan principal as of the close of the date of the enactment of this paragraph (2) such reduction may be made only to such extent as said Board in its discretion may by regulations or otherwise provide. "(ii) Notwithstanding any other provision of this subsection, no adtion shall be taken by any bank with respect to any member pursuant to any of the foregoing provisions of this subsection if the effect of such action would be to cause the aggregate outstanding advances, within the meaning of the last sentence of subsection (c) of section 10 or within the meaning of regulations of said Board defining said term for the purposes of this sentence, made by such bank to such member to exceed twelve times the amounts paid in by such member for outstanding capital stock held by such member. "(3) Except as provided in subsection (i), upon retirement of stock of any member the bank shall pay such member for the stock retired an amount equal to the par value of such stock, or, at the election of the bank, the whole or any part of the payment which would otherwise be so made shall be credited upon the indebtedness of the
�
