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TITLE 24-HOUSING CREDIT

Chapter I-Home Loan Bank Board.....
Chapter II—Federal Savings and Loan System...
Chapter III—Federal Savings and Loan Insurance Corporation.
Chapter IV-Home Owners' Loan Corporation...
Chapter V-Federal Housing Administration.
Chapter VI–Public Housing Administration..
Chapter VII—Housing and Home Finance Agency.
Chapter VIII–Office of Housing Expediter..

Part

3 201 300 401 500 602 703 801

CHAPTER I-HOME LOAN BANK BOARD

N, B.: Dates appearing in the citations of source of documents codified in this chapter, such as dates of issuance, approval, or effectiveness, are obtained from the original document. For general statutory provisions governing effective dates, validity, and constructive notice see section 7 of the Federal Register Act (49 Stat. 502; 44 U.S.C. 307) and sections 3 and 4 of the Administrative Procedure Act (60 Stat. 238; 5 U.S.C. 1002, 1003).

NOTE: The Federal Home Loan Bank Administration was consolidated in the Housing and Home Finance Agency, consisting of the Home Loan Bank Board, the Federal Housing Administration, and the Public Housing Administration, by Reorganization Plan No. 3 of 1947, Title 3, Chapter IV, supra. Because of this action, the heading of Chapter I was changed to read as set forth above.

Part
3 Members of banks. (Amended)
4 Operations of the banks. (Amended]
8 Miscellaneous. (Amended]

ABBREVIATIONS: The following abbreviations are used in this chapter:
FŘ.

Federal Register
Sec. Section
Stat. Statutes at Large
U.S.C. United States Code

volve the operations of financial institutions. [Paragraph (c) amended, Feb. 14, 1947, effective Feb. 19, 1947, 12 F.R. 1141]

OPER

PART 3—MEMBERS OF BANKS Sec. 3.7 Withdrawal and removal from member

ship. (Amended] $ 3.7 Withdrawal and removal from membership.

(c) Procedure for removal. Adjudications pursuant to section 6 (i) of the Federal Home Loan Bank Act, in connection with the removal of Bank members, will be determined in accordance with, and follow the requirements of, the provisions of the Administrative Procedure Act, as now or hereafter amended. All such hearings are determined under the provisions of the Administrative Procedure Act to be of such a character that either the filing or publication of notice of any such hearing would be in conflict with the public interest since they in

PART 4-OPERATIONS OF THE

BANKS Sec. 4.1 General powers. (Amended] 4.7 Safe-keeping accounts. (Amended]

§ 4.1 General powers.

(f) Deposits from members. (1) Banks may accept demand deposits from members, but no interest shall be paid thereon. At least 25% of such funds on deposit shall be reserved in the form of cash and/or U. S. Treasury Bills. The remaining 75% of such funds on deposit shall be invested within the provisions

shall not include deposits in any other Bank. [Paragraph (f) amended, June 25, 1947, effective June 28, 1947, 12 F.R. 4228]

of section 11 (g) of the act. The Goyernor may, in his discretion, upon the application of a Bank, waive all or a part of these reserve requirements, subject to the provisions of the Federal Home Loan Bank Act, as now or hereafter amended. Immediate withdrawal may be permitted in the form of the check of the Bank or as otherwise authorized from time to time by order of the Federal Home Loan Bank Administration.

(2) Banks may accept time deposits from members but shall reserve the right to require, in writing, thirty days' notice of intention to withdraw such deposits or any part thereof. At least 25% of such funds on deposit shall be reserved in the form of cash and/or U. S. Treasury Bills. The remaining 75% of such funds on deposit shall be invested within the provisions of section 11 (g) of the act. The Governor may, in his discretion, upon the application of a Bank, waive all or a part of these reserve requirements, subject to the provisions of the Federal Home Loan Bank Act, as now or hereafter amended. The rates of interest to be paid on such deposits as remain unwithdrawn for periods of thirty days or more may be established by the board of directors of each Bank, within the ranges established by the Federal Home Loan Bank Administration. Withdrawals of such deposits shall be in the form of the check of the Bank, or in such other manner as may from time to time be authorized by order of the Federal Home Loan Bank Administration.

(3) As used in subparagraphs (1) and (2) of this paragraph, the word "cash”

CODIFICATION: The following sentence was added at the end of g 4.1 (b) (1) by Resolution No. 114, Nov, 24, 1947, effective Nov. 29, 1947, 12 F.R. 7998: “The foregoing provisions of this subparagraph, the provisions of paragraph (c), and the provisions of subparagraph (1) of paragraph (d) of this section shall not apply to special series United States Treasury Notes, and authority is hereby given by the Home Loan Bank Board for any pur. chase or purchases of or other action or actions with respect to special series United States Treasury Notes by or for the account of any Bank where approved by the Governor or by such person or persons as may be designated (a) by the Governor or (b) by, or pursuant to authority conferred by, the Home Loan Bank Board."

$ 4.7 Safe-keeping accounts.

CODIFICATION: The following sentence was added at the end of $ 4.7 by Resolution No. 114, Nov. 24, 1947, effective Nov, 29, 1947, 12 F.R. 7998: "Without regard to the foregoing provisions of this section, any special series United States Treasury Notes held by or for the account of any Bank may be held with the Treasurer of the United States or with such depositary or depositaries as may be designated by the Home Loan Bank Board."

PART 8-MISCELLANEOUS Sec. 8.3 Amendments. (Amended]

$ 8.3 Amendments.

CODIFICATION: The last sentence of $8.3 (c) was deleted by Resolution No. 47, Sept. 25, 1947, effective Oct. 1, 1947, 12 F.R. 6452.

CHAPTER II-FEDERAL SAVINGS AND LOAN SYSTEM

N. B.: Dates appearing in the citations of source of documents codified in this chapter, such as dates of issuance, approval, or effectiveness, are obtained from the original document. For general statutory provisions governing effective dates, validity, and constructive notice see section 7 of the Federal Register Act (49 Stat. 502; 44 U.S.C. 307) and sections 3 and 4 of the Administrative Procedure Act (60 Stat. 238; 5 U.S.C. 1002, 1003).

Part 201 Promulgation, amendment, and repeal of rules and regulations. (Amended] 202 Incorporation, conversion, and organization. (Amended) 203 Operation. (Amended]

ABBREVIATIONS: The following abbreviations are used in this chapter: Bull.

Bulletin
CFR

Code of Federal Regulations
Cum. Supp. Cumulative Supplement, Code of Federal Regulations
E.O.

Executive order
F.R.

Federal Register Sec.

Section Stat,

Statutes at Large U.S.C.

United States Code

PART 201—PROMULGATION, AMEND

MENT, AND REPEAL OF RULES

AND REGULATIONS Sec. 201.1 Publication of rules, regulations or

amendments. (Amended) 201.2 Rules, regulations and amendments.

(Amended) $ 201.1 Publication of rules, regulations or amendments.

CODIFICATION: In the first sentence of g 201.1, the words "in the Federal Home Loan Bank Review, in the issue immediately following the publication thereof” were deleted by Resolution No. 50, Home Loan Bank Board, Sept. 25, 1947, effective Oct. 31, 1947, 12 F.R. 6453.

$ 201.2 Rules, regulations and amendments.

CODIFICATION: In the last sentence of $201.2 (c), a period was inserted after the word “Council," and the words "and filed with the editor of the Federal Home Loan Bank Review for publication in the next available issue of such Review” were deleted by Resolution No. 48, Home Loan Bank Board, Sept. 25, 1947, effective Oct. 1, 1947, 12 F.R. 6453.

$ 202.9 Charter and bylaws-(a) Issuance of Charter K. If the Petition for Charter is approved, the following charter (hereinafter referred to as a “Charter K”) shall be issued:

CHARTER K Pursuant to the provisions of section 5 of the Home Owners' Loan Act of 1933, the following charter is hereby issued:

1. Name. The name of the Federal savings and loan association hereby chartered (hereinafter referred to as the "association") is

Federal Savings and Loan Association

2. Office. The home office of the association shall be located at in the County of

State of

No office of the association shall be moved from its immediate vicinity except as may be provided in regulations made by the Home Loan Bank Board.

3. Objects and powers. The objects of the association are to promote thrift by providing & convenient and safe method for people to save and Invest money and to provide for the sound and economical financing of homes. The statute, this charter, and rules and regulations made thereunder provide for examination and supervision and at the same time for the protection of all private rights concerned, and shall be construed in keeping with the best practices of local mutual thrift and home financing institutions in the United States.

The association shall act as fiscal agent of the Government when designated for that purpose by the Secretary of the Treasury,

PART 202—INCORPORATION, CON

VERSION, AND ORGANIZATION Sec. 202.9 Charter and bylaws. (Revised ]

under such regulations as he may prescribe, and shall perform all such reasonable duties as fiscal agent of the Government as he may require. The association may act us agent for any other instrumentality of the United States when designated for that purpose by any such instrumentality.

The association shall have perpetual succession and power to sue and be sued, complain and defend in any court of law or equity; to have a corporate seal, aiixed by Imprint, facsimile or otherwise; to appoint officers and agents as its business shall require, and allow them suitable compensa. tion; to have bylaws not inconsistent with the Constitution or laws of the United States, this charter, and rules and regulations of the Home Loan Bank Board, providing for the management of its property and regulation and government of its affairs; to wind up and dissolve, merge, consolidate, or reorganize in the manner provided by law and rules and regulations made thereunder; and to conduct business in the territory of the United States except as otherwise limIted in this charter. The association may purchase, hold, and convey real and personal estate consistent with its objects, purposes, and powers, may mortgage or lease any real and personal estate; and may take such property by gift, devise, or bequest. Unless authorized by the Home Loan Bank Board, the association may not invest in an office building or buildings for the transaction of the business of the association an amount representing the cost of land and buildings in excess of the sum of its undivided profits and reserve accounts.

In addition to the foregoing powers expressly enumerated, the association shall have power to do all things reasonably incident to the accomplishment of its express objects and the performance of its express powers. The association shall have such powers as are conferred by law and shall exercise its powers in conformity with the Home Owners' Loan Act of 1933 and all laws of the United States as they now are, or as they may hereafter be amended, and with the rules and regulations made thereunder which are not in conflict with this charter.

4. Members. All holders of share accounts of the association and all borrowers therefrom shall be deemed and held to be members thereof. In the consideration of all questions requiring action by the members, each holder of a share account shall be permitted to cast one vote for each $100, or fraction thereof, of the participation value of his share account. A borrowing member shall be permitted, as a borrower, to cast one vote, and to cast the number of votes to which he may be entitled as the holder of & share account. No member, however, shall cast more than 50 votes. Voting may be by proxy. Any number of members present at a regular or special meeting of the members shall constitute a quorum. A majority of all votes cast at any meeting of members shall determine any question. The members who shall be entitled to vote at any meeting

of the members shall be those owning share accounts and borrowing members of record on the books of the association at the end of the calendar month next preceding the date of the meeting of members.

5. Directors and officers. The association shall be under the direction of a board of directors of not less than 5 nor more than 15, as determined and elected by the members. Directors shall be elected by ballot from the membership of the association, and a director shall cease to be a director when he ceases to be a member. At the first meeting of members of the association, directors shall be elected to serve until the first annual meeting and until their successors are duly . elected and qualified. Thereafter directors shall be elected for periods of 3 years and until their successors are elected and quali. fied, but provision shall be made for the election of approximately one-third of the board of directors each year. In the event of a vacancy, including vacancies created by an increase by vote of the members of the number of directors within the limits hereinabove specified, the board of directors may fill the vacancy, if the members fall so to do, by electing a director to serve until the next annual meeting of the members, at which time a director shall be elected to fill the vacancy for the unexpired term. At its meeting, which shall be held as soon as practicable after the annual meeting of members, the board of directors shall elect a president, one or more vice presidents, a secretary, and a treasurer. It may appoint such additional officers and employees as it may from time to time determine. The offices of secretary and treasurer may be held by the same person, and a vice president may also be either the secretary or the treasurer. The term of Office of all Officers shall be one year or until their respective successors are elected and qualified; but any officer may be removed at any time by the board of directors. In the absence of designation from time to time of powers and duties by the board of directors, the officers shall have such powers and duties as generally pertain to their respective offices.

6. Share capital. The share capital of the association shall consist of the aggregate of payments upon share accounts and dividends credited thereto less redemption and repurchase payments. The participation value in the share capital of each share account held by a member shall be the aggregate of payments upon such share account and dividends credited thereto less redemption and repurchase payments. Share accounts of $100 or multiples thereof may be known as investment share accounts, consisting of full-paid income shares. All other share accounts shall be known as savings share accounts. Payments upon share accounts shall be called share payments. Outstanding share accounts, if any, created pursuant to a previous charter of the association issued by the Federal Home Loan Bank Board, the Federal Home Loan Bank Administration, or the Home Loan Bank Board shall continue to be known and treated as provided in the Federal

charter in effect at the time each such share It shall not represent itself as a deposit account was created, until exchanged for in- institution. vestment or savings share accounts. Share 9. Reserves, undivided profits, and divt. accounts may be issued for cash, or property dends. As of June 30 and December 31 of in which the association is authorized to in- each year, after payment or provision for vest, and, in the absence of actual fraud in payment of all expenses and appropriate the transaction, the value of property taken transfers to the reserve required below, and in payment therefor, as determined by the additional transfers to other reserve acboard of directors, shall be conclusive. All counts, and provision for an undivided share accounts shall be nonassessable, and profits account, the board of directors shall no holder thereof shall be responsible for any declare as dividends the remainder of the losses incurred by the association beyond the net earnings of the association for the 6 loss of the participation value of his share months' period. All dividends shall be accounts at the time the loss is determined. declared as of said dividend dates. The

7. Ownership of share accounts. All share board of directors may declare dividends as accounts shall be represented by share ac- of said dividend dates payable out of the count books containing a certificate of mem- amounts remaining from previous periods in bership and evidencing the participation the undivided profits account. Profits to value of the share account, except that in- holders of share accounts shall be termed vestment share accounts may be represented dividends (except bonus payments) and by separate membership certificates. Share shall not be referred to as interest. The accounts may be purchased and held abso- association shall maintain the reserve relutely by, or in trust for, any person, includ- quired for insurance of accounts by sufficient ing an individual, male, female, adult or credits on each dividend date. If and whenminor, single or married, a partnership, as- ever the aggregate reserves of the association sociation, and corporation. The receipt or (less reserve for bonus) are not equal to 10 acquittance of any member, including a percent of the share capital, the association minor person or a married woman, who holds shall, at each dividend date, transfer to a share account shall be a valid and sufficient reserves (other than reserve for bonus) a release and discharge of the association for credit equivalent to at least percent of the any payment to such person on any share net earnings of the association, until such account. Two or more persons may hold aggregate reserves are equal to 10 percent of share accounts Jointly in any manner per- the share capital. Any losses may be charged mitted by law. Trustees and other fiduci- against reserves. Dividends upon investment aries, including, but not limited to, fiduct- share accounts shall be promptly paid in arles empowered to invest in first mortgages, cash as of the dividend date. Dividends on may invest in share accounts. Share ac- savings share accounts shall be credited to counts shall be transferable only upon the such share accounts on the books of the books of the association and upon proper association as of the dividend date. All application by the transferee and the accept- holders of share accounts shall participate ance of the transferee as a member upon equally in dividends pro rata to the particiterms approved by the board of directors. pation value of their share accounts; proThe association may treat the holder of vided that the association shall not be rerecord of share accounts as the owner for quired to credit dividends on inactive share all purposes without being affected by any accounts of $5 or less. Except as provided notice to the contrary unless the association above, dividends shall be declared on the has acknowledged in writing notice of a participation value of each share account at pledge. The association shall not directly or the beginning of the dividend period, plus indirectly charge any membership, admission, the share payments made during the divirepurchase, withdrawal, or any other fee or dend period (less amounts repurchased and sum of money, for the privilege of becoming, noticed for repurchase and, for dividend remaining, or ceasing to be a member of the purposes, deducted from the latest previous association,

share payments), computed at the dividend 8. Power to obtain advances. The associa- rate for the time invested, determined as tion shall have power to obtain advances of provided below. The date of investment not more than an amount equal to one-half

shall be the date of actual receipt of such of its share capital on the date of the ad

share payments by the association, unless

the board of directors fix a date, not later vance. A subsequent reduction of share

than the tenth of the month, for determincapital shall not affect in any way outstand

ing the date of investment of payments on ing obligations for advances. The associa

either investment or savings share accounts tion shall not have power to obtain advances

or on both types of share accounts. Share from any source other than a Federal home

payments, affected by such determination loan bank of more than an amount equal to

date, received by the association on or before 10 percent of its share capital on the date

such determination date, shall receive diviof the advance. The association may pledge dends as if invested on the first of such or otherwise encumber any of its assets to month. Share payments, affected by such secure its debts. The association shall not determination date, received subsequent to accept deposits from the public or issue any such determination date, shall receive divievidence of indebtedness except for advances. dends as if invested on the first of the next

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