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. 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"

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

CODIFICATION: The following sentence was added at the end of § 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 purchase 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."

Part

203

Operation. [Amended]

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 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.

PART 202-INCORPORATION, CONVERSION, AND ORGANIZATION

Sec.

202.9 Charter and bylaws. [Revised]

§ 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

of

State

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 a 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,

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 as 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, affixed by imprint, facsimile or otherwise; to appoint officers and agents as its business shall require, and allow them suitable compensation; 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 a 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 qualified, 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 fail 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