72d CONGRESS . SESS. I. CH. 8. JANUARY 22, 1932 .
9 railways. Every applicant for a loan under this Act shall, as a con- dns to co ion p rece- dition precedent thereto, consent to such examinations as the cor- poration may require for the purposes of this Act and that reports of examinations by constituted authorities may be furnished by such auth oriti es to the corp orati on up on re ques t the refor . . SEc. 9. The corporation is authorized and empowered, with the ti Power Issne r por approval of the Secretary of the Treasury, to issue, and to have out- ,ions. standing at any one time in an amount aggregating nqt more than three times its subscribed capital, its notes, debentures, bonds, or other such obligations ; such obligations to mature not more than five Maturit y data and years from their respective dates of issue2 to be redeemable at the red em pti on thereof . option of the corporation before maturity in such manner as may be stipulated in such obligations, and to bear such rate or rates of inter- Inte rest rat e . est as may be determined by the corp oration : Provided, That the a° Pro vi sos . short-term corporation, with the approval of the Secretary of the Treasury, may obligations. sell on a discount basis short-term obligations payable at maturity without interest . The notes, debentures, bonds, and other obligations Security for oblige. of the corporation may be secured by assets of the corporation' in boo ns, etc ., of corpora' such manner as shall be prescribed by its board of directors : Pro- vided, That the aggregate of all obligations issued under this section Restriction on aggra- gat e amount of obl ig a- shall not exceed three times the amount of the subscribed capital tions. stock. Such obligations may be issued in payment of any loan gaIl a sii s for issue of obli- authorized by this Act or may be offered for sale at such price or prices as the corporation may determine with the approval of the To be uncondition- Secretar of the Treasury . The said obligations shall be fully and ally guaranteed by unconditionally guaranteed both as to interest and principal by the United States . United States and su ch guara nty sha ll be e xpresse d on th e face paymen t by se cre. thereof. In the event that the corporation shall be unable to pay tary of the Treasury if upon demand, when due, the principal of or interest on notes, deben- corporat ion unab le to tures, bonds, or other such obligations issued by it, the Secretary of meet due obligati ons . the Treasury shall pay the amount thereof, which is hereby author- ized to be appropriated, out of any moneys in the Treasury not other- thonaedprlacion a wise appropriated, and thereupon to the extent of the amounts so paid the Secretary of the Treasury shall succeed to all the rights of t he holder s of such notes, de bentures, bonds, o r other ob ligations . The lions Purchase cr arylgof 7
f
obligations .
by Sereta of Secretary of the Treasury, in his discretion, is authorized to purchase the Trea sury . any obligations of the corporation to be issued hereunder, and for such purpose the Secretary of the Treasury is authorized to use as a public- ise of proceeds f rom debt transaction the proceeds from the sale of any securities here- sat eof eecu rnny is sued after issued under the Second Liberty Bond Act, as amended, and the under Second Liberty Act , au thor ized . purposes for which securities may be issued under the Second Libert 130114 A y Vol. 40, p. na. Bond Act, as amended, are extended to include any purchases of the U.S.c.,p.tosii. Sale of acquired cor- corporations obligations hereunder. The Secretary of the Treasury porationo bligatio ns, may, at any time, sell any of the obligations of the corporation acquired by him under this section . A ll rede m17 tio ns pur chas es, as ohu(at ions treated ~
public-de bt trans. and sales by the Secretary of the Treasury of the obligations of the actions. corporation shall be treated as public-debt transactions of the United States . Such obligations shall not be eligible for discount or pur- co~„°t etcgible fur dis . chase by any Federal reserve bank . SEc. 10. Any and all notes debentures, bonds, or other such obli- Exemption of ob li ga- t
tion s fr ont taxa tion . gations issued by the corporation shall be exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance, ExceptionI and gift taxes) now or hereafter imposed by the United States, by any . Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority . The corporation , r Pnran tiw o n , eti ar nchtding ing ng incl uding its franc hise , its capi tal, rese rves, and surpl us, and its franchises, e. income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependen cy, or possession thereof, or by any State, county, municipality, or local taxing
