12« Amount of obliga- tions au thor ized to issue, increased . Vol. 47, p. 9. Purch ase of n otes, when State l aws pro- hibit preferred- stock issues, etc. Post, p 111 1 . Condi tion s of pur- chase or loans by Cor- poration . Company mus t show unimpaired capital stock. New capital may be furnished . Proviso . Loans upon preferred stock or capital notes. Compensati on of Company officers, etc ., limited . Agreements required of Company . "Compensat ion", construed . Renewals of loans by Corporation ; when shall be denied . If co mpen sati on of officer, etc , excessive. Agreement not to increase, required . Emerg ency Relief and Construc tion Act of 1932, amendment . A nte, pp .20,99 . Post, p . 283 . 73d CONGRESS . SESS . I. CH. 55. JUNE 10, 1933 . Finance Corporation, under the provisions of this section and sec- tion 2, shall not exceed at any one time $50,000,000, and the amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount sufficient to carry out the provi- sions of this sect ion and s ection 2 . SEC. 2 . In the event that any such insurance company shall be incorporated under the laws of any State which does not permit it to issue preferred stock, exempt from assessment or additional lia- bility , or i f such laws permit such issue o f pref erred stock only b y unanimous consent of stockholders, or upon notice of more than twenty days, the Reconstruction Finance Corporation is authorized for the purposes of this Act to purchase the legally issued capital notes of such insurance company or to make loans secured by such notes as collateral, which may be subordinated in whole or in part or to any degree to claims of other creditors . SEC . 3 . The Reconstruction Finance Corporation shall not sub- scribe for or purchase any preferred stock or capital notes of any applicant insurance company, (1) until the applicant shows to the satisfaction of the Corporation that it has unimpaired capital stock, or that it will furnish new capital which will be subordinate to the preferred stock or capital notes to be subscribed for or purchased by the Corporation, equal to the amount of said preferred stock or capital notes so subscribed for or purchased by the Corporation Provided, That the Corporation may make loans upon said pre- ferred stock or capital notes, if, in its opinion, such loans will be adequa tely s ecured by sa id sto ck or capital notes , and/ or suc h othe r forms of security as the Corporation may require ; (2) if at the time of such subscription, purchase, or loan any officer, director, or employee of the applicant is receiving total compensation in a sum in excess of $17,500 per annum from the applicant and/or any of its affiliates, and (3) unless at such time the applicant agrees to the satisfaction of the Corporation not to increase the compensation of any of its officers, directors, or employees, and not to retire any of its stock, notes, bonds, or debentures issued for capital purposes, while any part of the preferred stock, notes, bonds, or debentures of such company is held by the Corporation . For the purposes of this sec- tion, the term " compensation " includes any salary, fee, bonus, com- mission, or other payment, direct or indirect, in money or otherwise, for personal services. SEC . 4 . The Reconstruction Finance Corporation shall not make, renew, or extend any loan under the Reconstruction Finance Cor- poration Act, as amended, or under th e Emergency Relief a nd Construction Act of 1932, (1) if at the time of making, renewing, or extending such loan any officer, director, or employee of the applicant is receiving compensation at a rate in excess of what appears reason- able to the Reconstruction Finance Corporation, and (2) unless at such time the applicant agrees to the satisfaction of the Corporation not to increase the compensation of any of its officers, directors, or employees to any amount in excess of what appears reasonable to the Reconstruction Finance Corporation while such loan is out- standing and unpaid . For the purposes of this section the term " compensation " includes any salary, fee, bonus, commission, or other payment, direct or indirect, in money or otherwise for personal services . SE C. 5 . That the second and third sentences of paragraph (6) of section 201 (a) of the Emergency Relief and Construction Act of 1932, as amended, are hereby amended to read as follows : " Obliga-
