of Division of Federal Savings and Loan Operations pursuant to delegated authority from Board.) 5, 6. Transmittal of notices of final approval of insurance and FHLB membership to district bank, which transmits notices to applicant association. 7. Billing by FSLIC of applicant association for initial premium and admission Insurance effective upon receipt of required payment. fee. NOTE.-Estimated liability for employees' accumulated annual leave at June 30, 1956, aggregated $485,489.02. DUTIES AND FUNCTIONS OF THE FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION (Supplied by the Bureau of the Budget) With respect to insurance of accounts of savings and loan associations Shall insure accounts of all Federal savings and loan associations, and may insure accounts of other building and loan or savings and loan institutions. May reject the application of any association whose capital is impaired or whose financial policies or management are unsafe or inconsistent with economical home financing. May conduct such examinations as it deems necessary of associations desiring insurance. May charge such associations reasonable costs for examination. May require associations to furnish additional information with respect to any examination made by other public authority. 84258-56- -8 Created by Title IV of the National Housing Act, 1934, for the purpose of insuring savings in all Federal savings FEDERAL HOME LOAN BANK BOARD The Board provides a number of staff services for it- GENERAL MANAGER Under supervision and authority of the Federal Home Loan Bank Board, plans, organizes and directs the operations of the Corporation. UNDERWRITING DIVISION Develops programs for insurance of accounts; passes upon all applications for insurance of accounts, and proposals relating to mergers, consolidations, purchases of assets, changes in capital structure, etcetera, which involve the question of insurance risk; coordinates underwriting activities with officials of Federal Home Loan Banks and State Supervisory authorities. Supervises the payment and settlement of insurance to insured shareholders of institutions in receivership. Responsible for taking necessary steps as provided by law to prevent a default in an insured institution or restore an insured institution in default to normal operation. Supervises recoveries and conversion into cash of assets in institutions for which the Corporation has been appointed receiver. Provides analyses of financial and other operating information pertaining to the administrative and supervisory problems of the Corporation and the Federal Home Loan Bank System; compiles and analyzes statistical series in thrift, home mortgage, housing and real estate activities; provides economic background and other data bearing upon problem cases of the Corporation. COMPTROLLER'S DIVISION Plans, organizes and directs accounting and fiscal activities of the Corporation. Controls all accounting operations including liquidation of assets and insurance settlement and prepares financial statements, reports and analyses. Controls all operations pertaining to the receipt and disbursement of funds of the Corporation. Responsible for preparation of annual budget submission and control of administrative expenses. May borrow from the Treasury up to $750 million for insurance purposes if such funds are required in the judgment of the Federal Home Loan Bank Board. May assess additional premiums against insured institutions to cover all losses and expenses of the Corporation. Determines admission fees to be charged to newly insured associa tions. Prescribes manner in which regular insurance premiums shall be paid. Regulates areas in which insured institutions may make loans. Approves issuance by insured associations of securities having a definite return or maturity period. Regulates sales plans and development of reserves of insured associations. To prevent default, the Corporation may make loans or contributions to, or purchase the assets of an insured association. Acts as conservator or receiver of any Federal savings and loan association in default upon appointment by the Federal Home Loan Bank Board. May serve as conservator or receiver of any other insured institution in default if requested to do so by the authority with the power of appointment. As conservator or receiver, the Corporation may operate the insured association in default, take action to put it in a sound condition, merge it with another institution, or organize a new association. 1 Capital stock outstanding $66,779,000 less provision for retirement of $11,932,000. 2 Preliminary estimates. 2 26, 100, 000, 000 2 14, 800, 000 22, 050, 000, 000 2 9, 073, 000 NOTE. The value of unused annual leave to the credit of employees amounts to $81,935.52. Income and expense statement, 12 months ending June 30, 1955 Net income before payment of return on capital stock_ $19, 020, 899 54, 234 5, 376, 830 200, 000 842 24, 652, 805 459, 454 358 323, 056 6, 905 789, 773 23, 863, 032 757, 241 23, 105, 791 Percent of total 77. 4 22. 6 3. 2 3. 1 93. 7 |