Page:United States Statutes at Large Volume 82.djvu/898

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[82 STAT. 856]
[82 STAT. 856]
PUBLIC LAW 90-000—MMMM. DD, 1968

856

PUBLIC LAW 90-505-SEPT. 21, 1968

[82 STAT.

Public Law 90-505 AN ACT September21, 1968 [S.3133] To extend for one year the authority to limit the rates of interest or dividends payable on time and savings deposits and accounts, and for other purposes. Interest and dividends. Controls, extension. 81 Stat. 22612 USC 461 note.

Repeal. 80 Stat. 824.

48 Stat. 180. 38 Stat. 264; 80 Stat. 825. 12 USC 355. 48 Stat. 7.

Liquidity requirements, 64 Stat. 257. 12 USC 1425a.

48 Stat. 1255. 12 USC 1724.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,, SECTION 1. Section 7 of the Act of September 21, 1966 (Public Law 89-597; 80 Stat. 823) is amended to read: "SEC. 7. Effective September 22, 1969— "(1) so much of section 19(j) of the Federal Reserve Act (12 U.S.C. 371b) as precedes the third sentence thereof is amended to read as it would without the amendment made by section 2(c) of this Act; "(2) the second and third sentences of section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) are amended to read «.s they would without the amendment made by section 3 of this Act; and "(3) section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is repealed." SEC. 2. (a) The first sentence of section 19(j) of the Federal Reserve Act (12 U.S.C. 37lb) is amended by changing "limit by r e f lation" to read "prescribe rules governing the payment and advertisement of interest on deposits, including limitations on". (b) The second sentence of section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) is amended by changing "limit by regulation" to read "prescribe rules governing the payment and advertisement of interest on deposits, including limitations on". (c) The first sentence of section 5B of the Federal Home Loan Bank Act (12 U.S.C. 1425b) is amended by changing "limit by r e f lation" to read "prescribe rules governing the payment and advertisement of interest or dividends on deposits, shares, or withdrawable accounts, including limitations on". SEC. 3. (a) The first sentence of the eighth full paragraph of section 13 of the Federal Reserve Act (12 U.S.C. 347) is amended by inserting ", or secured by such obligations as are eligible for purchase under section 14(b) of this Act" immediately before the period at the end thereof. (b) The first sentence of the last full paragraph of such section (12 U.S.C. 347c) is amended by inserting "or by any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States" immediately before the period at the end thereof. SEC, 4. Section 5A of the Federal Home Loan Bank Act is amended to read as follows: "SEC. 5A. (a) The purpose of this section is to provide a means for creating meaningful and flexible liquidity in savings and loan associations and other members which can be increased when mortgage money is plentiful, maintained in easily liquidated instruments, and reduced to add to the flow of funds to the mortgage market in periods of credit stringency. More flexible liquidity will help support two main purposes of the Federal Home Loan Bank Act—sound mortgage credit and a more stable supply of such credit. " (b) Any institution which is a member or which is an insured institution as defined in section 401(a) of the National Housing Act shall maintain the aggregate amount of its assets of the following types at not less than such amount as, in the opinion of the Board, is appropriate: (1) cash, (2) to such extent as the Board may approve