(c) The making or purchasing of any loan approved for insurance protection under the provisions of the National Housing Act, as now or hereafter amended, where one qualified person selected by the board of directors shall have submitted a signed appraisal of the realestate security for such loan: Provided, That the making or purchasing of any such loan shall be otherwise subject to any applicable limitations imposed by law, the association's Charter, or any rule or regulation, or otherwise. [Paragraph (c) added by Bull. 83, Dec. 27, 1946, effective Jan. 1, 1947, 12 F.R. 5]

(d) The making or purchasing of any loans as to which such association has any insurance under Title I of the National Housing Act, as from time to time in force, which such association has, under the Home Owners' Loan Act of 1933 or otherwise, the legal power to make or purchase.

(e) The making or purchasing of any loans which such association has, under the last sentence of subsection (c) of section 5 of the Home Owners' Loan Act of 1933, as added by Public Law 372, 80th Congress, the legal power to make or purchase. Except as may be otherwise required or authorized by regulations hereafter adopted, each loan made or purchased under this paragraph (other than loans which such association has the legal power to make or purchase under other provisions of said subsection (c) of said section 5 and which conform to all provisions of Charter, rules, and regulations which would be applicable thereto in the absence of this paragraph, and loans as to which such association has any guaranty or insurance, or commitment for any guaranty or insurance, under the Servicemen's Readjustment Act of 1944, as from time to time in force, or as to which such association has any insurance under Title I of the National Housing Act, as from time to time in force) shall conform to the following provisions:

(1) Each such uninsured or unguaranteed loan shall be made only after

the association shall have in its possession an application therefor duly executed by the borrower, subject to applicable penal provisions under section 8 of the Home Owners' Loan Act of 1933, for the purposes of obtaining credits and influencing the association to make the said loan. Such application shall state: (i) the applicant's name and address, including the name and address of any other person to be obligated upon said loan, (ii) the applicant's legal or equitable ownership or interest in the real property (used at least in part as a residence) to be altered, repaired, or improved with the proceeds of the loan, including any liens against said property or secured by it, and any condition which would terminate said interest before six months after the loan term, (iii) a description of the proposed project and the estimated cost thereof, (iv) the applicant's assets (including life insurance and the name of the insurer), (v) the applicant's previous and present income and employment, (vi) the amount and term of the loan desired, (vii) the applicant's proposal for repayment, (viii) the applicant's agreement to furnish the association with a certificate of completion of the project by the contractor, or if none, by the applicant, and (ix) such other information as the association may require for its protection and to ascertain compliance with its charter, applicable laws, rules and regulations.

(2) Each such loan shall be evidenced by one or more negotiable notes, bonds or other written evidences of debt, or combination thereof, which shall (i) reflect that said loan is made in reliance on statements contained in the borrower's application for said loan, (ii) provide a loan term to be computed on the basis of a maximum of one year for each $300 but not less than $150, (iii) provide that repayment shall be in substantially equal monthly installments, (iv) provide for acceleration of maturity, either automatic or at the option of the holder, in the event of default in the payment of any installment upon the due date thereof and (v) contain such other provisions as the association may require in the locality.

(3) The association shall (i) maintain such records as will readily permit a determination as to compliance with the proviso to the last sentence of said subsection (c) of section 5 of the Home Owners' Loan Act of 1933, (ii) make such

loans for a financing charge of not in excess of an amount equivalent to a $6.00 discount per $100 original face amount of a one year note to be paid in equal monthly installments calculated from the date of the note, (iii) provide that upon any full loan prepayment the borrower shall be rebated an amount not less than that computed by applying the discount rate (if on a discount basis) to the prepayment for the unexpired term of such loan, (iv) provide a charge, if any, for late payments of not to exceed 1% a month thereon and (v) provide for additional charges, if any, covering the initial

loan cost, which charges shall not exceed 1% of the original face amount of the loan or $5.00 whichever is greater. [Paragraphs (d) and (e) added by Res. No. 102, Nov. 6, 1947, effective Nov. 11, 1947, 12 F.R. 7356]

§ 203.22 Sales commissions on shares. No sales commission shall be paid by any Federal association to any of its officers or directors for the sale of its shares. (Sec. 5 (a), 48 Stat. 132; 12 U.S.C. 1464 (a); E.O. 9070, Feb. 24, 1942, 3 CFR Cum. Supp.) [Bull. 84, Jan. 27, 1947, 12 F.R. 685]

Part

(f) Authority is conferred upon the General Manager or a Deputy General Manager, or such person or persons as may be designated in writing by the General Manager or a Deputy General Manager, to exercise procurement functions (including procurement of personal or other services) by Bulletin No. 38,' dated March 24, 1947, to the extent set forth in said bulletin, the authority conferred by said bulletin being subject to conditions, limitations, and exceptions as set forth in said bulletin. [Paragraph (f) added Mar. 24, 1947, 12 F.R. 2027]

Amendments. [Amended]

Publication of rules and regulations for insurance of accounts. [Amended]

§ 301.7 Sales plans and practices.

(d) Collection of sales commissions. No sales commissions shall be paid by any insured institution to any of its officers or directors for the sale of a withdrawable or repurchasable share, investment certificate, or deposit account issued by such institution. [Sentence added, effective Jan. 27, 1947, 12 F.R. 685]

$301.22 Amendments.

CODIFICATION: In § 301.22 (c), the last sentence was deleted by Resolution No. 49, Sept. 25, 1947, effective Oct. 1, 1947, 12 F.R. 6457.

§ 301.23 Publication of rules and regulations for insurance of accounts.

CODIFICATION: The text "in the Federal Home Loan Bank Review, in the issue immediately following the filing for publication thereof" was deleted from the first sentence of § 301.23, by Resolution No. 51, Sept. 25, 1947, effective Oct. 31, 1947, 12 FR. 6457.

Sec. 401.05-1

401.05-2

United States Code

PART 401-GENERAL

CREDIT REPORTS

Who may order; cost limits. [Revised]

Additional costs. [Revised]

FEE ASSIGNMENTS TO SALARIED EMPLOYEES

401.07-1 To salaried employees of the U. S., etc. [Revised]

GOVERNMENT REQUESTS FOR TRANSPORTATION 401.10-20 Charges, how paid. [Revised]

401.12-4

PURCHASE AND SUPPLY

Variations in quantity. [Amended]

AUTHORITY: §§ 401.05-1 to 401.12-4, appearing in this Supplement, issued under secs. 4 (a), 4 (k), 48 Stat. 129, 132, 643, 647, 59 Stat. 986; 12 U.S.C. 1463; E.O. 9070, Feb. 24, 1942, 3 CFR Cum. Supp.

SOURCE: 401.05-1 to 401.12-4, appearing in this Supplement, contained in Bulletin 428, effective July 1, 1947, 12 F.R. 4263, except as noted following provisions affected.

CREDIT REPORTS

§ 401.05-1 Who may order; cost limits. Credit reports may be ordered from es

tablished and approved credit agencies by the Regional Manager or Regional Counsel, or by brokers when such credit reports are permitted or required by the regulations or are necessary in the business of the Corporation. The cost of such reports shall not exceed one dollar per report, except as is otherwise provided herein. Credit agencies must be approved by the General Manager or the Regional Manager, and notice of such approval shall be filed with the Comptroller.

§ 401.05-2 Additional costs. The General Manager may authorize compensation not exceeding two dollars per report to approved credit agencies in localities where such reports can not be obtained at a lower cost, and shall file with the Comptroller and with the Auditor a schedule of fees in excess of one dollar per report which are authorized generally for any locality; and such reports may be ordered within the limits of such schedules by the officers or brokers mentioned in § 401.05-1.

FEE ASSIGNMENTS TO SALARIED EMPLOYEES

§ 401.07-1 To salaried employees of the U. S., etc. Assignments for services to be performed on a fee basis shall not be made to a person who is a full-time or part-time salaried employee of the United States, or any department or agency thereof, or any corporate agency or instrumentality of the United States having no capital stock, or all of whose capital stock (except any qualifying shares of directors or similar officers which may be otherwise owned) is beneficially owned directly or indirectly, by the United States: Provided, That the foregoing is not applicable where an employee has ceased active duty under notice of separation by reduction in force and has ceased to receive salary. [Bull. 424, effective June 10, 1947, 12 F.R. 3858]

REPAIRS AND RECONDITIONING OF SECURITY PROPERTIES

§ 402.08-3 Processing advances for reconditioning under § 402.08–2 (a)

When the home owner informs the Corporation of the satisfactory completion of the work and furnishes the necessary forms, properly executed, the Analysis and Real Estate Section shall prepare and process a voucher for payment of the work performed by the contractor, provided that the amount of such voucher shall not exceed the amount of the advance, assemble all papers, and transmit with Form R-18 to the Comptroller for certification and disbursement. Any unexpended portion of the advance shall be credited to the home owner's account. With the advice of the Regional Counsel, the Regional Manager may direct that the funds advanced by the Corporation be made payable to both the contractor and the home owner. [Sixth paragraph amended by Bull. 429, effective July 1, 1947, 12 F.R. 4263]

§ 402.08-4 Processing advances for reconditioning under § 402.08–2 (b)

Upon completion of the reconditioning and its acceptance by the home owner and by the Corporation, and after review by the Legal Department, if required, the Analysis and Real Estate Section shall prepare the proper vouchers for payment of the work and services performed, assemble all papers and transmit with Form R-18 to the Comptroller for certification and disbursement. Any unexpended portion of the advance shall be credited to the home owner's account. [Third paragraph