in, underwriting, and unlimited holding by National Banks under the provisions of paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The New York State Housing Finance Agency is a public corporation created in 1960 pursuant to the New York State Housing Finance Agency Act, Article III of the Private Housing Finance Law of the State of New York. One purpose of the Agency is to provide safe and sanitary dwelling accommodations at rentals which families and persons of low income can afford, and which the ordinary operations of private enterprise cannot provide. To accomplish such purpose, and to encourage the investment of private capital through the Agency in mortgage loans to companies which, subject to State regulation as to rents, profits, dividends and disposition of their property, supply multiple dwelling accommodations, and other facilities incidental or appurtenant thereto, to such families and persons, the Agency has issued these bonds. The bonds of the Agency are the direct and general obligations of the Agency, and its full faith and credit are pledged for the payment thereof. The bonds are further secured by a pledge of the mortgages securing the mortgage loans made by the Agency from the proceeds from the sale of the bonds, by a pledge of and lien upon the payments required to be made to the Agency by the mortgagors under such mortgages, and by a Capital Reserve Fund, established and maintained by the Agency for the benefit of bondholders, containing an amount equal to the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on all outstanding bonds of the Agency. All bonds of the Agency are secured equally and proportionately by the foregoing. The Capital Reserve Fund of the Agency is required to be created by the provisions of the New York State Housing Finance Agency Act, and was established by an appropriation in the amount of $2,000,000 by the State of New York and to which portions of the proceeds of the sale of bonds in 1961 and 1963 have been added. The New York State Housing Finance Agency

Act provides that in order to insure the maintenance of the Capital Reserve Fund, there shall be annually apportioned and paid to the Agency for deposit in the Capital Reserve Fund such amounts as shall be certified by the chairman of the Agency to the Governor and Director of the Budget as necessary to restore the Capital Reserve Fund to an amount equal to the maximum amount of principal and interest maturing and becoming due in any succeeding calendar year on the bonds of the Agency then outstanding. The subject bonds of the New York State Housing Finance Agency are the general obligations of a political subdivision of the State of New York as defined in §1.3(d) and (e).

(c) Ruling. It is the conclusion of this Office that the $84,735,000 General Housing Loan Bonds of the New York State Housing Finance Agency, 1965 Series A, are "public securities" as set forth in §1.3(c) of this part, issued pursuant to paragraph Seventh of 12 U.S.C. 24, and are therefore eligible for dealing in, underwriting, and unlimited holding by National Banks. Dated: October 28, 1965

§ 1.167 The Port of New York Authority, Consolidated Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $25,000,000 Consolidated Bonds, Thirtieth Series, Due 1998 (First Installment) of The Port of New York Authority for dealing in, underwriting, and unlimited holding by National Banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The Port of New York Authority is a municipal corporate instrumentality of the States of New York and New Jersey, created in 1921 by Compact between the two States, with the consent of the Congress of the United States. The purpose of the States in establishing the Authority was to provide transportation, terminal and other facilities of commerce with the Port of New York District, and for such purposes they have from time to time authorized specific facilities and have given the

Authority power to borrow money upon its bonds or other obligations and to make charges for the use of such facilities. The proceeds of the subject bonds will provide funds for capital expenditures in connection with facilities of the Authority and for purposes incidental thereto. The Port of New York Authority, possessing resources sufficient to justify faith and credit, has, as authorized under applicable law, pledged its full faith and credit for the payment of principal and interest on these bonds, which are thus direct and general obligations of the Authority. The subject bonds of The New York Port Authority are, therefore, the general obligations of a political subdivision of the State of New York as defined in §1.3 (d) and (e).

(c) Ruling. It is the conclusion of this Office that the $25,000,000 Consolidated Bonds, 30th Series, due 1998 (First Installment) of The Port of New York Authority, are "public securities" as set forth in § 1.3(c), issued pursuant to paragraph Seventh of 12 U.S.C. 24, and are therefore, eligible for dealing in, underwriting, and unlimited holding by National Banks.

Dated: November 1, 1965

§ 1.168 Commodity Credit Corporation Certificates of Interest in Pools of Price Support Loans.

(a) Request. The Comptroller of the Currency has been requested to rule that Certificates of Interest issued by Commodity Credit Corporation in pools of price support loans are eligible for purchase, dealing in, underwriting and unlimited holding by National Banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. Commodity Credit Corporation is created by the Commodity Credit Corporation Charter Act, 15 U.S.C. 714, as an agency and instrumentality of the United States within the Department of Agriculture for the purpose of stabilizing, supporting and protecting farm income and prices, assisting in the maintenance of balanced and adequate supplies of agricultural commodities and

facilitating the orderly distribution thereof. It is authorized by law to enter into and carry out such contracts or agreements as are necessary in the conduct of its business and to borrow up to $14.5 billion. It undertakes to pay the Certificates of Interest which it is issuing and represents that it has reserved a sufficient amount of its uncommitted borrowing authority to redeem such certificates at maturity and has arranged to borrow from the Treasury of the United States any portion of such reserved amount as may be necessary for that purpose.

(c) Ruling. It is the conclusion of this Office that Commodity Credit Corporation Certificates of Interest in pools of price support loans are "public securities" as set forth in Section 1.3 (c), issued pursuant to paragraph Seventh of 12 U.S.C. 24, and are therefore eligible for purchase, dealing in, underwriting and unlimited holding by National Banks.

Dated: April 5, 1966

§ 1.169 San Diego Stadium Authority Bonds

(a) Request. The Comptroller of the Currency has been requested to rule that the $27 million Stadium Authority Revenue Bonds of the San Diego Stadium Authority are eligible for purchase, dealing in, underwriting and unlimited holding by National Banks pursuant to the provisions of paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The San Diego Stadium Authority is a public entity created pursuant to the laws of the State of California under an agreement between the City of San Diego and the County of San Diego. Under the agreement and as authorized by California law, the Authority is empowered to acquire a site for, and to construct, maintain, operate and lease a proposed athletic stadium and to issue revenue bonds for the purpose of raising funds necessary to accomplish these objects.

(2) The bonds and the interest thereon will be payable from, and secured by a pledge of, and lien on, revenues to be derived by the Authority from an unconditional lease of the stadium to the City of San Diego. The City

of San Diego is obligated, under the unconditional lease, to make rental payments to the Authority in an amount sufficient to meet the Authority's semiannual bond interest and principal payments and to pay additional rentals to the Authority sufficient to pay other charges incurred by the Authority. The lease recites that the city's obligation to meet the rental payments is an annual charge against the general fund of the city for which the city agrees to make annual appropriations in its budget.

(3) While the city's revenues from the operation of the stadium and certain other sources are expected to be available to meet the lease rental payments, the city's projections indicate that a tax increase within the limits permitted by the City Charter would provide sufficient income to satisfy its lease rental obligation. Thus, it appears that the City of San Diego, a political subdivision of the State of California which possesses sufficient resources to justify full faith and credit, has pledged its full faith and credit to make payments to the Authority of amounts which will be sufficient to provide for all required payments in connection with the subject bonds.

(c) Ruling. It is our conclusion that the $27 million Stadium Authority Revenue Bonds of the San Diego Stadium Authority are public securities as defined in § 1.3(c), (d), and (e), of the Investment Securities Regulation (12 CFR 1.3(c), (d), and (e)) issued pursuant to paragraph Seventh of 12 U.S.C. 24, and are, therefore, eligible for purchase, dealing in, underwriting and unlimited holding by National Banks. Dated: April 6, 1966

§ 1.170 City of Santa Monica Parking Authority Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that the $7,500,000 Parking Revenue Bonds, 1966, of the Parking Authority of the City of Santa Monica are eligible for purchase, dealing in, underwriting, and unlimited holding by National Banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Parking Authority of the City of Santa Monica is a public body, corporate and politic, created under and exercising its power pursuant to the laws of the State of California. The governing body of the Authority is the Santa Monica City Council acting as the Parking Authority. Under the laws of California and pursuant to a proposition adopted by the Santa Monica electorate, the Authority has the power to issue bonds for the purposes of financing public parking facilities and improvements thereon and refunding any revenue bonds previously issued. The Authority presently owns, and is operating, surface public parking facilities.

(2) The bonds and the interest thereon will be payable solely from revenues to be derived by the Authority from a lease of parking structures to the City of Santa Monica. The city is obligated, under the lease, to make rental payments in an amount which the Authority estimates to be sufficient to meet the Authority's semiannual bond interest and principal payments. The lease recites that the city agrees to take such actions as may be necessary to include and maintain in its budget for each fiscal year all rentals payable by the city during such fiscal year, to make the necessary appropriations for all such rentals and to provide the funds necessary to meet such appropriations.

(3) The lease rental obligation is a general obligation of the City of Santa Monica. While the city intends to meet its lease rental obligation from the proceeds of special business taxes and on-street parking meter revenues, the city's obligation is not limited to funds derived from such sources. The city's projections indicate that an increase in the general purpose tax within the limits permitted by the city charter, based on present assessed valuation, would yield enough income to equal the maximum annual debt service requirement of the bonds. Thus, it appears that the City of Santa Monica, a political subdivision of the State of California, which possesses sufficient resources to justify full faith and credit, has pledged its full faith and credit to make payments to the Authority of amounts which will

be sufficient to provide for all required payments in connection with the subject bonds.

(c) Ruling. It is our conclusion that the $7,500,000 Parking Revenue Bonds, 1966, of the Parking Authority of the City of Santa Monica are public securities as defined in § 1.3(c), (d), and (e) of the Investment Securities Regulation (12 CFR 1.3 (c), (d), and (e)), issued pursuant to paragraph Seventh of 12 U.S.C. 24 and are, therefore, eligible for purchase, dealing in, underwriting, and unlimited holding by National Banks. Dated: May 4, 1966

§ 1.171 State of Israel Bonds, Development Investment Issue.

(a) Request. The Comptroller of the Currency has been requested to rule that the $100 million Development Investment Issue of State of Israel Bonds, March 30, 1966, are investment securities eligible for purchase by national banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The Development Investment issue is similar to the Third issue, which was the subject of our ruling of May 27, 1964, 12 CFR 1.139, except that the State of Israel is offering the present bonds only to banks, insurance companies, labor unions, and employee benefit funds and that, under certain conditions, the State of Israel has undertaken to purchase with U.S. currency any bond held by the original owner. Our rulings of February 6, 1964, and May 27, 1964, on the eligibility of the Second and Third issues, 12 CFR 1.133 and 1.139, respectively, will also be applicable to the Development Investment issue.

(c) Ruling. It is our conclusion that the $100 million Development Investment Issue of State of Israel Bonds, March 30, 1966, are investment securities as defined in § 1.3(b) of the Investment Securities Regulation (12 CFR 1.3(b)) issued pursuant to paragraph Seventh of 12 U.S.C. 24 and are eligible for purchase by national banks, subject to the 5 percent limitation of § 1.6 (b) and (c) of the

Investment Securities Regulation (12 CFR 1.6 (b) and (c)).

Dated: May 9, 1966.

§ 1.172 Federal National Mortgage Association Participation

Certificates.

(a) Request. The Comptroller of the Currency has been requested to rule that Participation Certificates in the Small Business Obligations Trust, issued by the Federal National Mortgage Association, as trustee, are eligible for purchase, dealing in, underwriting, and unlimited holding by National Banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) Paragraph Seventh of 12 U.S.C. 24 provides that a National Bank may, without limitations or restrictions, deal in, underwrite, and purchase for its own account participations of, or issued by, the Federal National Mortgage Association.

(2) Pursuant to the Participation Sales Act of 1966, which amended the Federal National Mortgage Association Charter Act, the Administrator of the Small Business Administration, as trustor, and the Federal National Mortgage Association, as trustee, have created the Small Business Obligations Trust. The Federal National Mortgage Association is authorized to act in a fiduciary and representative capacity with respect to the trust and, in accordance with the trust indenture, to issue Participation Certificates to the public. The Association has guaranteed, in its corporate capacity, payment of principal and interest of Participation Certificates issued under the Small Business Obligations Trust.

(c) Ruling. It is our conclusion that Participation Certificates in the Small Business Obligations Trust issued by Federal National Mortgage Association, as Trustee, are participations of, or issued by, the Federal National Mortgage Association within the meaning of paragraph Seventh of 12 U.S.C. 24 and are, therefore, eligible for purchase, dealing in, underwriting, and unlimited holding by National Banks.

Dated: June 3, 1966.

§ 1.173 Alaska State Housing Authority

Revenue Bonds

(a) Request. The Comptroller of the Currency has been requested to rule that the $4,735,000 Alaska State Housing Authority State Building Lease Revenue Bonds are eligible for purchase, dealing in, underwriting and unlimited holding by National Banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Alaska State Housing Authority is a public corporate authority created by and existing under the laws of the State of Alaska. Pursuant to Alaska Law, the Authority is empowered, inter alia, to provide for acquisition, construction, and financing of public building projects, to issue bonds to raise funds for such purposes, and to enter into leases to the State for the use of space in such projects.

(2) The Alaska State Housing Authority State Building Lease Revenue Bonds are general obligations of the Authority supported by its full faith and credit. All of the Authority's resources, which are sufficient to justify faith and credit, are available for payment of principal and interest on the bonds. The Authority's resources include the right, pursuant to a noncancellable lease to the State of Alaska for the use of space in certain public building projects, to receive and collect net rental payments from the State in amounts sufficient to meet the Authority's annual bond interest and principal payments. The State's lease rental obligation is not limited to payment from any particular source of revenue and shall remain in effect for the duration of the bonds.

(c) Ruling. It is our conclusion that the $4,735,000 Alaska State Housing Authority State Building Lease Revenue Bonds are public securities as defined in Section 1.3(c), (d) and (e) of the Investment Securities Regulation (12 CFR 1.3(c), (d) and (e)) issued pursuant to paragraph Seventh of 12 U.S.C. 24 and are, therefore, eligible for purchase, dealing in, underwriting and unlimited holding by National Banks.

Dated: June 14, 1966.

§ 1.174 Louisiana Capital Construction and Improvement Commission Public Improvement Bonds

(a) Request. The Comptroller of the Currency has been requested to rule that the $15 million Public Improvement Bonds issued by the Capital Construction and Improvement Commission of the State of Louisiana are eligible for purchase, dealing in, underwriting and unlimited holding by National Banks pursuant to paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Capital Construction and Improvement Commission is a body politic and corporate created by an act of the Louisiana State Legislature. The Commission is authorized and empowered, inter alia, to borrow money for the purpose of obtaining funds for the construction and improvement of the state highway system and to issue bonds not in excess of $140 million to evidence such borrowing.

(2) The bonds will be payable solely from revenue derived from the Louisiana sales tax which has been irrevocably and irrepealably pledged and dedicated (subject to seven percent of such revenues pledged to certain obligations of the Louisiana Fiscal Authority) to the payment of the bonds and which will be levied and collected so long as any of the Commission's obligations are outstanding. On the basis of current revenue levels, as well as the Commission's projections, sales tax revenues will be sufficient to exceed by ten times the maximum annual bond interest and principal payments of the Commission, assuming the maximum permissible amount of bonds are issued, and of the Louisiana Fiscal Authority.

(3) The State of Louisiana has made adequate provision and is obligated for payments of amounts which will be sufficient to provide for all required payments in connection with the bonds. These bonds are thus general obligations of a state or political subdivision thereof within the meaning of section 1.3 (d) and (e) of the Investment Securities Regulation (12 CFR 1.3(d) and (e) ).

(c) Ruling. It is, therefore, our conclusion that the $15 million Public Improvement Bonds issued by the Capital Construction and Improvement Commission of the State of