PUBLIC LAW 87-21 l - S E P T. 8, 1961
ST A T.
Public Law 87-211 September 8, 1961 [H. R. 8277]
Federal Home Loan B a n k Act, amendment. 47 Stat. 730; 49 Stat. 294. Board of D i r e ctors. Appointment and election. 69 Stat. 640. 12 USC 1437.
E l e c t i v e d i r e ctorships.
Apporti o n m e n t among States in bank district.
AN ACT To amend the Federal Home Loan Bank Act to simplify and improve the election and appointment of directors of the Federal home loan banks.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress a.'^sembled^ That subsections (a) through (h) of section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) are amended to read as follows: " (a) The management of each Federal home loan bank shall be vested in a board of twelve directors, eight of whom shall be elected by the members as hereinafter provided in this section and four of whom shall be appointed by the Federal Home Loan Bank Board referred to in subsection (b) of section 17, hereinafter in this section referred to as the Board, all of whom shall be citizens of the United States and bona fide residents of the district in which such bank is located: Provided, That in any district which includes five or more States the Board may by regulation increase the elective directors to a number not exceeding thirteen and may increase the appointive directors to a number not exceeding one-half the number of elective directors: Provided further. That if at any time the number of elective directors in the case of any district is not at least equal to the number of States in such district the Board shall exercise the authority conferred by the next preceding proviso so as to increase such elective directors to a number at least equal to the number of States in such district. "(b) Each elective directorship shall be designated by the Board as representing the members located in a particular State, and shall be filled by a person who is an officer or director of a member located in that State, each of which members shall be entitled to nominate an eligible person for such directorship, and such office shall be filled from such nominees by a plurality of the votes which such members may cast in an election held for the purpose of filling such office, in which election each such member may cast for such office a number of votes equal to the number of shares of stock in such bank required by this Act to be held by such member at the end of the calendar year next preceding the election, as determined pursuant to regulation of the Board, but not in excess of the average number of shares of stock in such bank required by this Act to be held at the end of such calendar year by the respective members of such bank located in such State, as so determined. As used in this subsection and in subsection (c) of this section, the term 'member' means a member of a Federal home loan bank which was a member of such bank at the end of such calendar year. "(c) The number of elective directorships designated as representing the members located in each separate State in a bank district shall be determined by the Board in the approximate ratio of the percentage of the required stock, as determined pursuant to regulation of the Board, of the members located in that State at the end of the calendar year next preceding the date of the election to the total required stock, as so determined, of all members of such bank at the end of such year, except that in the case of each State such number shall not be less than one and shall not be more than six. Notwithstanding any other provision of this section, if at any time the number of elective directorships so designated as representing the members located in any State would not be at least equal to the total number of elective directorships which, on December 31, 1960, were filled by officers or directors of members whose principal places of business were located in such State, the Board shall add to the board of directors of the bank of the district