87th Congress, H. R. 5723 An Act To extend the veterans' guaranteed and direct home loan program and to provide additional funds for the veterans' direct loan program. 75 STAT. 201. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section Veterans. 1803 of title 38, United States Code, is amended by striking out sub- Housing loans. section (a) and inserting in lieu thereof the following: "(a) (1) Any loan to a World War II or Korean conflict veteran, if made within the applicable period prescribed in paragraph (3) of this subsection for any of the purposes, and in compliance with the provisions, specified in this chapter is automatically guaranteed by the United States in an amount not more than 60 per centum of the loan if the loan is made for any of the purposes specified in section 1810 of this title and not more than 50 per centum of the loan if the loan is for any of the purposes specified in section 1812, 1813, or 1814 of this title. "(2) If a loan report or an application for loan guaranty relating to a loan under this chapter is received by the Administrator before the date of the expiration of the veteran's entitlement, the loan may be guaranteed or insured under the provisions of this chapter after such date. "(3)(A) A World War II veteran's entitlement to the benefits of this chapter will expire as follows: แ "(i) ten years from the date of discharge or release from the last period of active duty of the veteran, any part of which occurred during World War II, plus an additional period equal to one year for each three months of active duty performed by the veteran during World War II, except that entitlement shall not continue in any case after July 25, 1967, nor shall entitlement expire in any case prior to July 25, 1962; or "(ii) on July 25, 1967, for a veteran discharged or released for a service-connected disability from a period of active duty, any part of which occurred during World War II. "(B) A Korean conflict veteran's entitlement to the benefits of this chapter will expire as follows: "(i) ten years from the date of discharge or release from the last period of active duty of the veteran, any part of which occurred during the Korean conflict, plus an additional period equal to one year for each three months of active duty performed by the veteran during the Korean conflict, except that entitlement shall not continue in any case after January 31, 1975, nor shall entitlement expire in any case prior to January 31, 1965; or "(ii) on January 31, 1975, for a veteran discharged or released for a service-connected disability from a period of active duty, any part of which occurred during the Korean conflict." 72 Stat. 1205. (b) The last sentence of section 1802 (b) of title 38, United States 72 Stat. 1203. Code, is amended to read as follows: "Entitlement restored under this subsection may be used by a World War II veteran at any time before July 26, 1967, and by a Korean conflict veteran at any time before February 1, 1975." (c) Section 1814(b) of title 38, United States Code, is amended (1) 72 Stat. 1211. by striking out paragraph (3); (2) by striking out "; and" at the end of paragraph (2) and inserting a period; and (3) by inserting 8. "and" after the semicolon at the end of paragraph (1) SEC. 2. (a) Paragraphs (2) and (3) of subsection (d) of section 72 Stat. 1208. 1811 of title 38, United States Code, are amended by striking out 75 STAT. 202. 72 Stat. 1209. 74 Stat. 531. 72 Stat. 1214. "$13,500", wherever it appears in such paragraphs, and inserting in lieu thereof "$15,000”. (b) Subsection (h) of such section 1811 is amended to read as follows: "(h) No loan may be made under this section to any veteran after the expiration of his entitlement pursuant to section 1803 (a) (3) of this title except pursuant to a commitment issued by the Administrator before such entitlement expires." SEC. 3. (a) Section 1823 (a) of title 38, United States Code, is amended (1) by deleting "June 30, 1962" in the second sentence and substituting therefor "June 30, 1961"; (2) by changing the comma to a period in the fourth sentence and deleting the remainder of that sentence; (3) by inserting the following new sentences immediately after the third sentence: "The Secretary of the Treasury shall also advance to the Administrator from time to time such additional sums as the Administrator may request, not in excess of $100,000,000 to be immediately available, plus an additional amount not in excess of $400,000,000 after June 30, 1961, plus $200,000,000 after June 30, 1962, plus $150,000,000 after June 30, 1963, plus $150,000,000 after June 30, 1964, plus $100,000,000 after June 30, 1965, plus $100,000,000 after June 30, 1966. Any such authorized advance which is not requested by the Administrator in the fiscal year in which the advance may be made shall be made thereafter when requested by the Administrator, except that no such request or advance may be made after June 30, 1967. Such authorized advances are not subject to the quarter annual limitation in the second sentence of this subsection, but the amount authorized to be advanced in any fiscal year after June 30, 1962, shall be reduced only by the amount which has been returned to the revolving fund during the preceding fiscal year from the sale of loans pursuant to section 1811(g) of this title." (b) The last sentence of section 1823 (c) of title 38, United States Code, is amended by striking out "June 30, 1963" and inserting in lieu thereof the following: "June 30, 1976”. Approved July 6, 1961. 87th Congress, H. R. 7108 An Act 75 STAT. 482. To amend the Federal Home Loan Bank Act and title IV of the National Housing Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (c) Federal Home of section 6 of the Federal Home Loan Bank Act, as amended, is Loan Bank Act, hereby amended to read as follows: amendment. 12 USC 1426. 12 USC 1424. “(c) (1) The original stock subscription of each institution eligible 47 Stat. 727. 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 Capital stook. less than $500. The bank shall annually, as of the close of the calendar Subscription. 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 Oversubscripthe bank finds that the investment of any member in stock is greater tions. 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 otherwise, 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 Limitations. 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 elose 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 action 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 12 USC 1430. 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 Cancellation stock of any member the bank shall pay such member for the stock of over subretired an amount equal to the par value of such stock, or, at the elec- soription. tion 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 75 STAT. 483. "Aggregate unpaid member to the bank. In either such event, stock equal in par value to the amount of the payment or credit, or both, as the case may be, shall be canceled. "(4) For the purposes of this subsection, the term 'aggregate unpaid loan principal." loan principal' means the aggregate unpaid principal of a subscriber's or member's home mortgage loans, home-purchase contracts, and similar obligations. Reports and information. 64 Stat. 257. National Housing 12 USC 1726. Rules and regulations. Repeal, with exceptions. Additional premiums. "(5) The Federal Home Loan Bank Board, by regulations or otherwise, may require each member to submit such reports and information as said Board, in its discretion, may determine to be necessary or appropriate for the purposes of this subsection." SEC. 2. Subsection (1) of section 6 of the Federal Home Loan Bank Act, as amended, is hereby repealed. SEC. 3. Subsection (a) of section 404 of the National Housing Act, as amended, is hereby amended to read as follows: "(a) The Corporation shall establish a Primary Reserve which shall be the general reserve of the Corporation and a Secondary Reserve to which shall be credited the amounts of the prepayments made by insured institutions pursuant to subsection (d) and the credits made pursuant to the first sentence of subsection (e). "(b) (1) Each institution whose application for insurance is approved by the Corporation shall pay to the Corporation, in such manner as it shall prescribe, a premium for such insurance equal to one-twelfth of 1 per centum of the total amount of all accounts of the insured members of such institution plus any creditor obligations of such institution. Such premium shall be paid at the time the certificate is issued by the Corporation under section 403, and thereafter annually, except that under regulations prescribed by the Corporation such premium may be paid semiannually. "(2) If, at the close of any December 31, the Primary Reserve equals or exceeds 2 per centum of the total amount of all accounts of insured members and creditor obligations of all insured institutions as of such close, no premium under paragraph (1) of this subsection shall be payable by any insured institution with respect to its premium year beginning during the year commencing on May 1 next succeeding such December 31, except that the foregoing provisions of this sentence shall not be applicable to any insured institution with respect to any of the twenty premium years beginning with the premium year commencing with the date on which such certificate is issued. "(3) The Corporation is authorized to prescribe such rules and regulations as it may determine to be necessary or appropriate to accomplish the purposes and provisions of this subsection." SEC. 4. Subsection (c) of section 404 of the National Housing Act, as amended, is hereby repealed: Provided, That the repeal effected by this section shall not affect any right existing on the effective date of such repeal. SEC. 5. Subsection (b) of section 404 of the National Housing Act, as in effect prior to the amendments made by this Act, is hereby amended by striking “(b)" at the beginning thereof and inserting in lieu thereof "(c)". SEC. 6. Section 404 of the National Housing Act, as amended, is hereby amended by adding thereto at the end thereof the following new subsections: "(d) Each insured institution, except as otherwise provided in this section, shall annually pay to the Corporation, at such time and in 75 STAT. 484. such manner as the Corporation shall by regulations or otherwise prescribe, an additional premium in the nature of a prepayment with respect to future premiums of such institution under subsection (b) equal to 2 per centum of the net increase in all accounts of its insured members during the next preceding calendar year, less an amount equal to any requirement, as of the end of such calendar year, for the purchase of stock of the Federal Home Loan Bank of which such institution is a member, calculated in accordance with the provisions of subsection (c) of section 6 of the Federal Home Loan Bank Act Ante, p. 482. and without regard to any net increase during such calendar year in its holdings of such stock, and such prepayments shall be credited to the Secondary Reserve: Provided, That in the case of an insured institution which was not an insured institution at the beginning of such next preceding calendar year the 2 per centum aforesaid shall be 2 per centum of the net increase in all accounts of its insured members during that part of said calendar year which begins with the close of the day on which such institution becomes an insured institution and the amount deducted from such 2 per centum under the foregoing provisions of this sentence shall not exceed one-half of such 2 per centum as calculated in accordance with this proviso. The Federal Home Loan Bank Board shall by regulations or otherwise provide for the furnishing to the Corporation of all necessary information with respect to Federal Home Loan Bank stock. Credits. (e) The Corporation, in accordance with such regulations as it Annual earnmay prescribe, shall credit to the Secondary Reserve, as of the close ings. of each calendar year a return on the outstanding balances of the Secondary Reserve during such calendar year, as determined by the Corporation, at a rate equal to the average annual rate of return to the Corporation during the year ending at the close of November 30 of such calendar year, as determined by the Corporation, on the investments held by the Corporation in obligations of, or guaranteed as to principal and interest by, the United States. Except as provided in Restrictions. subsections (f) and (g), the Secondary Reserve shall be available to the Corporation only for losses of the Corporation and shall be so available only to such extent as other accounts of the Corporation which are available therefor are insufficient for such losses. No right, title, or interest of any institution in or with respect to its pro rata share of the Secondary Reserve shall be assignable or transferable, whether by operation of law or otherwise, except to such extent as the Corporation may by regulation or otherwise provide for transfer of such pro rata share in cases of merger or consolidation, transfer of bulk assets as defined by the Corporation by regulation or otherwise for the purposes of this sentence, and similar transactions as so defined. Assignment or transfer. 64 Stat. 259; "(f) If (i) the status of an insured institution as an insured institu- Termination tion is terminated pursuant to any provision of section 407 or the of insurance. insurance of accounts of an insured institution is otherwise terminated, 68 Stat. 633. (ii) a conservator, receiver, or other legal custodian is appointed for 12 USC 1730. an insured institution under the circumstances and for the purpose set forth in subdivision (d) of section 401, or (iii) the Corporation 12 USC 1724. makes a determination that for the purposes of this subsection an insured institution has gone into liquidation, the obligation of such institution to make prepayments under subsection (d) of this section, including any prepayments as to which such institution is obligated at the time of such termination, appointment, or determination, shall |