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74TH CONGRESS. SESS . I. CH. 614. AUGUST 23, 1935 . such representative shall be elected annually in the same manner . The meetings of said Committee shall be held at Washington, Dis- trict of Columbia, at least four times each year upon the call of the chairman of the Bo ard of Gov ernors of the Feder al Reserve System or at the request of any three members of the Committee . Regulations govern- " ( b) No Federal Reserve bank shall engage or decline to engage ing open-market trans- acti ons .
in open-market operations under section 14 of this Act except in Vol . 38,3 p.264; U. s. .,p.96. accordance wi th the direction of and regulations adopted by the Committee. The Committee shall consider, adopt, and transmit to the several Federal Reserve banks, regulations relating to the open- market transactions of such banks . "( c) The time, character, and volume of all purchases and sales o f paper described in section 14 o f this Act as eli gible for open- market operations shall be governed with a view to accommodating commerce and business and wi th regard to their bearing upon the general credit situation of the country ." Vol . 38, p. 265 ;
SEC . 206 . (a) Subsection (b) of section 14 of the Federal Reserve II.S.C.,p .396. Purchase and sa le of Act, as amended, is amended by inserting before the semicolon at obligations of the United States in open the end thereof a colon and the following : Provided, That any b onds, notes, or o ther obligations which are direct obligations of the Unit ed States or which are fully guarantee d by the U nited S tates as to princ ipal and interes t may be bought a nd sold without regard to maturities but only in the open market ". (b) Subsection (d) of section 14 of the Federal Reserve Act, as amended, is amended by adding at the end thereof the following : " but each such bank shall establish such rates every fourteen days, or oftener if deemed necessary by the Board ; " . SEC. 207. The sixth paragraph of section 19 of the Federal Reserve Act as amended , is amended to read as follows "'Notwithstanding the other provisions of this section, the Board of Governors of the Federal Reserve System, upon the affirmative vote of not less than four of its members, in order to prevent injurious credit expansion or contraction, may by regulation change the requirements as to reserves to be maintained against demand or time deposits or both by member banks in reserve and central reserve cities or by member banks not in reserve or central reserve cities or by all member banks ; but the amount of the reserves req uired to b e maintain ed by any such memb er bank a s a result of any such change shall not be less than the amount of the reserves required by law to be maintained by such ba nk on the date of enactm ent of th e Banking Act of 1935 nor more than twice such amount ." SEC . 208 . The first paragraph of section 24 of the Federal Reserve Act, as amended, is amended to read as follows "S E C. 2 4 . Any national banking association may m ake real-estate loans secured by first liens upon improved real estate, including improved farm land and improved business and residential proper- ti es . A loan secured by real estate within the meaning of this section shall be in the form of an obligation or obligations secured by mort- gage, trust deed, or other such instrument upon real estate, and any national banking association may purchase any obligation so secured when the entire amount of such obligation is sold to the association . The am ount of any such loan hereafter m ade shall not exc eed 50 per centum of the appraised value of the real estate offered as security and no such loan shall be made for a longer term than five years ; except that (1) any such loan may be made in an amount not to exceed 60 per centum of the appraised value of the real estate offered as security and for a term not longer than ten years if the loan is se cured by an amor tized mortg age, deed of tru st, o r oth er su ch ins tru- ment under the terms of which the installment payments are sufficient mar ket. Me etings , Vol . 38, p. 265 ; U.S.C.,p.396. Dis coun t rates ; es- ta blish ing . Vol. 38, p. 270; Vol . 40, p.239; Vol.48, p.54; U.S.C.,p.403. Bank reserves
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changing re- quirements. Amoun t of. Vol . 38, p. U. S. C.,p.397. Vol. 44,p. 1232. Loans on farm lands and improved re al es- tat e by national banks . 273 ; Form of oblig ation . Amount of loan . Excep tions .
