1258 Agreement to pay ex- amination costs . To permit examina- tions after insurance granted . To pay premium charges . Addi tio nal agr ee- ment . Fifty-mile limit on loans . Agree not to issue securities guaranteeing definite return or ma- turity. To carry on unau- thorized sales plan . Agree to provide ade- quate reserves . Regulations, To prohibit payment of dividends from re- serves. Rejec tion of ap plica - tion . Ground s for . Notification of ap- proval . Certificate to issue. Factors to be con- sidered when applica- tion pending . Admission fee . Pre miu ms on ins ur- ance . Payment hy institu- tion having approved application . Amount. 73d CONGRESS . SESS. II. CH. 847. JUNE 27, 1934 . such form as the Corporation shall prescribe, and shall contain an agreement (1) to pay the reasonable cost of such examinations as the Cor pora tion sha ll d eem nece ssar y in con nect ion with suc h in sura nce, and (2) if the insurance is granted, to permit and pay the cost of such examinations as in the judgment of the Corporation may from time to time be necessary for its protection and the protection of other insure d inst itution s, to p ermit the Cor poratio n to h ave acc ess to any information or report with respect to any examination made by any public regul atory autho rity a nd to furni sh any addit ional information with respect thereto as the Corporation )nay require, and to pay the premium charges for insurance as hereinafter pro- vided . Each applicant for such insurance shall also file with its application an agreement that during the period that the insurance is in force it will not make any loans beyond fifty miles from its principal office except with the approval of, and pursuant to regula- tions of, the Corporation, but any applicant which, prior to the date of enactment of this Act, has been permitted to make loans beyond such fifty mile limit may continue to make loans within the territory in which the applicant is operating on such date ; will not, after it becomes an insured institution, issue securities which guarantee a definite return or which have a definite maturity except with the specific approval of the Corporation, or issue any securities the form of which has not been approved by the Corporation ; will not carry on any sales plan or practices, or any advertising, in violation of regulations to be made by the Corporation ; will provide adequate reserves satisfactory to the Corporation, to be established in accord- ance with regulations made by the Corporation, before paying divi- dends to its insured members ; but such regulations shall require the building up of reserves to 5 per centum of all insured accounts within a reasonable period, not exceeding ten years, and shall prohibit the payment of dividends from such reserves, or the payment of any dividends if any losses are chargeable to such reserves . (c) The Corp orat ion shal l re ject the app lica tion of any appl ican t if it finds that the capital of the applicant is impaired or that its financial policies or management are unsafe ; and the Corporation may reject the application of any applicant if it finds that the char- acter of the management of the applicant or its home financing policy is in consistent wi th economical home financin g or with the purposes of this title . Upon the approval of any application for insurance the Corporation shall notify the applicant, and upon the payment of t he initial pr emium charge for such insur ance, as pro . vided in section 404, the Corporation shall issue to the applicant a certificate stating that it has become an insured institution . In con- sidering applications for such insurance the Corporation shall give full c onsider ation to all factors in co nnectio n with the fi nancial con- dition of applicants and insured institutions, and shall have power to make such adjustments in their financial statements as the Corpora- tion finds to be necessary . (d) Any applic ant which app lies for insur ance under th is title after the first year of the operation of the Corporation, shall pay an admission fee based upon the reserve fund of the applicant which, in the judgment of the Corporation, is an equitable contribution . PREMIUMS ON INSURANCE SEC . 404 . (a) 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 charge for such insurance equal to one-fourth of 1 per centum of the total amount of all
