488
Obligation limitation.
48 Stat. 167.
Obligation limitat ion.
PUBLIC LAW 86-251-SEPT. 9, 1959
[73
ST A T.
(c) Section 209(b) of the Act of March 4, 1923 (42 Stat. 1467; 12 U.S.C. 4, 6), is amended— (1) by striking out the first two sentences; and (2) by striking out "the two Deputy Comptrollers now provided for by law"" in the fifth sentence and inserting in lieu thereof "the Deputy Comptrollers", and by striking out the semicolon and all that follows in such fifth sentence and inserting in lieu thereof a period. (d) Section 326 of the Revised Statutes (12 U.S.C. 3) is amended by striking out "one hundred thousand dollars" and inserting in lieu thereof "$250,000". SEC. 2. Section 5202 of the Revised Statutes (12 U.S.C. 82) is amended by inserting after "or otherwise," the following: "plus 50 percent of the amount of its unimpaired surplus fund,". SEC. 3. (a) Paragraph (6) of section 5200 of the Revised Statutes (12 U.S.C. 84) is amended by striking out "secured upon" and inserting in lieu thereof "secured by", and by adding at the end of the paragraph the following new sentence: "Obligations of any person, copartnership, association, or corporation in the form of notes or drafts secured by shipping documents, warehouse receipts, or other such documents transferring or securing title covering refrigerated or frozen readily marketable staples when such property is fully covered by insurance, shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus when the market value of such staples securing such obligation is not at any time less than 115 per centum of the face amount of such additional obligation, but this exception shall not apply to obligations of any one person, copartnership, association, or corporation arising from the same transactions and/or secured by the identical staples for more than six months." (b) Paragraph (7) of such section 5200 is amended by adding at the end thereof the following new sentence: "Obligations arising out of the discount by dealers in dairy cattle of paper given in payment for dairy cattle, which bear a full recourse endorsement or unconditional guarantee of the seller and are secured by the cattle being sold, shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus." (c) Paragraph (8) of such section 5200 and subsection 11(m) of the Federal Reserve Act (12 U.S.C. 248 (m)) are amended by striking out "in the form of notes". (d) Such section 5200 is further amended by adding at the end thereof the following new paragraph: "(13) Obligations as endorser or guarantor of negotiable or nonnegotiable installment consumer paper which carries a full recourse endorsement or unconditional guarantee by the person, copartnership, association, or corporation transferring the same, shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus: Provided, however, That if the bank's files or the knowledge of its officers of the financial condition of each maker of such obligations is reasonably adequate, and upon certification by an officer of the bank designated for that purpose by the board of directors of the bank, that the responsibility of each maker of such obligations has been evaluated and the bank is relying primarily upon each such maker for the payment of such obligations, the limitations of this section as to the obligations of each such maker shall be the sole applicable loan limitation: Provided further. That such certification shall be in writing and shall be retained as part of the records of such bank."
�
