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72d CONGRESS . SESS . I. CH. 522. JU LY 22,1932 . Loan banks wben so designated to be de- posit aries of public money . Exc ept ion . To act as f inancia l agents . Obligations of Fed- eral Home Loan Banks . Acc ept anc e of, as security, etc. To plainly state not Federal obligations nor guaranteed by United states . SEC. 14. When designated for that purpose by the Secretary of the Trea sury, each Fede ral Home Loan Bank shal l be a de posit ary o f public money, except receipts from customs, under such regulations as may be prescribed by said Secretary ; and it may also be employed as a financial agent of the Government ; and it shall perform all such reasonable duties as depositary of public money and financial agent of the Government as may be required of it . SEO.15 . Obligations of the Federal Home Loan Banks issued with the appr oval of t he board under thi s Act sh all be la wful inve stments, and may b e accepte d as secu rity, for all fidu ciary, tr ust, and public funds the investment or deposit of which shall be under the author- ity or control of the United States or any officer or officers thereof . The Fede ral reser ve banks are autho rized to act as d epositari es, cus- todians, and/or fiscal agents for Federal Home Loan Banks in the general performance of their powers under this Act. All obligations of Federa l Home Lo an Banks shall pla inly stat e that su ch 'oblig ations are not obligations of the United States and are not guaranteed by the United States . RESERVES AND DIVIDENDS Ba nk
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SEC . 16. Each Federal Home Loan Bank shall carry to a reserve Provisions for accu- mulati ng, an d main te- account semiannually 20 per centum of its net earnings until said nance of . reserve account shall show a credit balance equal to 100 per centum of the paid-in capital of such bank . After said reserve has reached 100 per centum of the paid-in capital of said bank, 5 per centum of its net earnings shall be added thereto semiannually . Whenever said reserve shall have been impaired below 1 00 per centum of the paid-in capital it shall be restored before any dividends are paid . Each Federal Home Loan Bank shall establish such additional reserves and/or make such charge-offs on account of depreciation or impairment of its assets as the board shall require from time to dl°i- time . No dividends shall be paid except out of net earnings remain- ing after all reserves and charge-offs required under this Act have been provided for, and then only with the approval of the board . The r eserv es of eac h Fed eral Home Loan Bank shal l be inve sted, subject to su ch reg ulatio ns, re strict ions, a nd lim itatio ns as may be prescribed by the board, in direct obligations of the United States and in such securi ties a s fidu ciary a nd tru st fun ds may be invested in under the laws of the State in which the Federal Home Loan Bank is located . Payment of dends . Federal Home Loan Bank Board . Composition.
SEC. 17. For the purposes of this Act there shall be a board, to be' known as the "Federal Home Loan Bank Board ", which shall con- Appointment, oath, sist of five citizens of the United States appointed -by the President political affiliations, etc . of the United States, 15y and with the advice and consent of the Senate . Not more than three members of the board shall be members of the-same political party . Each member shall devote his entire time to the business of the board . Before entering upon his duties each of the members shall take an oath faithfully to discharge the duties of his office . The President of the United States shall designate one of Terms of office . the members of the board to serve for a term of two years, one for three yea rs, one f or four y ears, one for five years, a nd one fo r_ six years from the date of the enactment hereof, and thereafter the term of each member shall be six years from the date of the expira- vacancies .
tion of the term for which his predecessor was appointed . Whenever a vacancy shall occur among the members the person appointed FED ERAL HOM E L OAN BANK BOA RD
