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(f) Section 1101(c) (2) of such Act is amended

80 Stat. 1274. (1). by striking out "value of the property or project” and 12 USC 1749aaa. inserting in lieu thereof "replacement cost of the property or project"; and

(2) by striking out "The value" and inserting in lieu thereof “The replacement cost”. Approved December 24, 1969.

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HOUSE REPORTS: No. 91-539 (Comm. on Banking & Currency) and No.

91-740 (Comm. of Conference).
SENATE REPORT No. 91-392 (Comm. on Banking & Currency).
CONGRESS IONAL RECORD, Vol. 115 (1969):

Sept. 23: Considered and passed Senate.
Oct. 21-23: Considered and passed House, amended, in lieu

of H.R. 13827.
Dec. 12: Senate and House agreed to conference report.

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Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

National banks.

Taxation by 81. Temporary amendment of section 5219, Revised Statutes

States. (a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended by adding at the end thereof the following:

“5. (a) In addition to the other methods of taxation authorized by the foregoing provisions of this section and subject to the limitations and restrictions specifically set forth in such provisions, a State or political subdivision thereof may impose any tax which is imposed generally on a nondiscriminatory basis throughout the jurisdiction of such State or political subdivision (other than a tax on intangible personal property) on a national bank having its principal office within such State in the same manner and to the same extent as such tax is imposed on a bank organized and existing under the laws of such State.

"(b) Except as otherwise herein provided, the legislature of each State may impose, and may authorize any political subdivision thereof to impose, the following taxes on a national bank not having its principal office located within the jurisdiction of such State, if such taxes are imposed generally throughout such jurisdiction on a nondiscriminatory basis:

“(1) Sales taxes and use taxes complementary thereto upon purchases, sales, and use within such jurisdiction.

“(2) Taxes on real property or on the occupancy of real property located within such jurisdiction.

(3) Taxes (including documentary stamp taxes) on the execution, delivery, or recordation of documents within such jurisdiction.

“(4) Taxes on tangible personal property (not including cash or currency) located within such jurisdiction.

“(5) License, registration, transfer, excise, or other fees or taxes imposed on the ownership, use, or transfer of tangible personal

property located within such jurisdiction. “(c) No sales tax or use tax complementary thereto shall be imposed pursuant to this paragraph 5 upon purchases, sales, and use within the taxing jurisdiction of tangible personal property which is the subject matter of a written contract of purchase entered into by a national bank prior to September 1, 1969.

“(d) As used in this paragraph 5, the term “State' means any of the "State." several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, and Guam.”

(b). The amendment made by subsection (a) of this section shall be Effective effective from the date of enactment of this Act until the effective date date. of the amendment made by section 2(a) of this Act. § 2. Permanent amendment of section 5219, Revised Statutes

(a) Section 5219 of the Revised Statutes (12 U.S.C. 548) is amended to read:

“Sec. 5219. For the purposes of any tax law enacted under authority of the United States or any State, a national bank shall be treated as a bank organized and existing under the laws of the State or other jurisdiction within which its principal office is located."

(b) The amendment made by subsection (a) becomes effective on Effective January 1, 1972.

date.

83 STAT. 435

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8 3. Saving provision

(a) Except as provided in subsection (b) of this section, prior to January 1, 1972, no tax may be imposed on any class of banks by or under authority of any State legislation in effect prior to the enactment of this Act unless

(1) the tax was imposed on that class of banks prior to the enactment of this Act, or

(2) the imposition of the tax is authorized by affirmative action of the State legislature after the enactment of this Act. (b) The prohibition of subsection (a) of this section does not apply to

(1) any sales tax or use tax complementary thereto,

(2) any tax (including a documentary stamp tax) on the execution, delivery, or recordation of documents, or

(3) any tax on tangible personal property (not including cash or currency), or for any license, registration, transfer, excise or other fee or tax imposed on the ownership, use or transfer of tan

gible personal property, imposed by a State which does not impose a tax, or an increased rate of tax, in lieu thereof. § 4. Study by Board of Governors of the Federal Reserve System

(a) The Board of Governors of the Federal Reserve System (hereinafter referred to as the “Board”) shall make a study to determine the probable impact on the banking systems and other economic effects of the changes in existing law to be made by section 2 of this Act governing income taxes, intangible property taxes, so-called doing business taxes, and any other similar taxes which are or may be imposed on banks. In conducting the study the Board shall consult with the Secretary of the Treasury and appropriate State banking and taxing authorities.

(b) The Board shall make a report of the results of its study to the Congress not later than December 31, 1970. The report shall include the Board's recommendations as to what additional Federal legislation, if any, may be needed to reconcile the promotion of the economic efficiency of the banking systems of the Nation with the achievement of effectiveness and local autonomy in meeting the fiscal needs of the States and their political subdivisions.

Approved December 24, 1969.

Report to
Congress.

LEGISLATIVE HISTORY :

HOUSE REPORTS : No. 91-290 (Comm. on Banking & Currency) and

No. 91-728 (Comm. of Conference).
SENATE REPORT No. 91-530 (Comm. on Banking & Currency).
CONGRESS IONAL RECORD, Vol. 115 (1969):

July 17: Considered and passed House.
Nov. 21: Considered and passed Senate, amended.
Dec. 10: House agreed to conference report.
Dec. 12: Senate agreed to conference report.

91st Congress, S. 3685

July 24, 1970

An Act

84 STAT. 450

To increase the availability of mortgage credit for the financing of urgently

needed housing, and for other purposes.

Be it enacted by the Senate and House of Representatives of the l'nited States of America in Congress assembled, That this Act may Emergency Home be cited as the “Emergency Home Finance Act of 1970“.

Finance Act of 1970.

TITLE I-REDUCTION OF INTEREST CHARGES FOR
MEMBERS OF THE FEDERAL HOME LOAN BANK
SYSTEM

as

SEC. 101. (a) There is authorized to be appropriated not to exceed Appropriation. $250,000,000, without fiscal year limitation, to be used by the Federal Home Loan Bank Board for disbursement to Federal home loan banks for the purpose of adjusting the effective interest charged by such banks on short-term and long-term borrowing to promote an orderly flow of funds into residential construction. The disbursement of sums appropriated hereunder shall be made under such terms and conditions

may be prescribed by the Board to assure that such sums are used to assist in the provision of housing for low- and middle-income families, and that such families share fully in the benefits resulting from the disbursement of such sums. No member of a Federal home loan bank shall use funds the interest charges on which have been adjusted pursuant to the provisions of this section to make any loan, if

(1) the effective rate of interest on such loan exceeds the effective rate of interest on such funds payable by such member by a percentile amount which is in excess of such amount as the Board determines to be appropriate in furtherance of the purposes of this section; or

(2) the principal obligation of any such loan which is secured by a mortgage on a residential structure exceeds the dollar limitations on the maximum mortgage amount, in effect on the date the mortgage was originated, which would be applicable if the mortgage was insured by the Secretary of Housing and Urban Development under section 203(b) or 207 of the National Housing Act.

52 Stat. 10; (b) Not more than 20 per centum of the sums appropriated pursuant 83 Stat: 383. to subsection (a) shall be disbursed in any one Federal home loan bank 12 USC 1709:

52 Stat. 16; district.

83 Stat. 383.

12 USC 1713.

TITLE II--AUTHORITY FOR THE FEDERAL NATIONAL
MORTGAGE ASSOCIATION TO PROVIDE A SECONDARY
MARKET FOR CONVENTIONAL MORTGAGES

83 Stat. 385.

Sec. 201. (a) Section 302(b) of the National Housing Act is 68 Stat. 613; amended(1) by inserting “(1)" immediately following “(b)"; and

12 USC 1717. (2) by adding at the end thereof the following new paragraph: “(2) For the purposes set forth in section 301(a), and with the approval of the Secretary of Housing and Urban Development, the corporation is authorized, pursuant to commitments or otherwise, to purchase, service, sell, lend on the security of, or otherwise deal in mortgages which are not insured or guaranteed as provided in paragraph (1) (such mortgages referred to hereinafter as 'conventional mortgages'). No such purchase of a conventional mortgage shall be

84 STAT. 451

made if the outstanding principal balance of the mortgage at the time
of purchase exceeds 75 per centum of the value of the property securing
the mortgage, unless (A) the seller retains a participation of not less
than 10 per centum in the mortgage; (B) for such period and under
such circumstances as the corporation may require, the seller agrees to
repurchase or replace the mortgage upon demand of the corporation
in the event that the mortgage is in default; or (C) that portion of the
unpaid principal balance of the mortgage which is in excess of such 75
per centum is guaranteed or insured by a qualified private insurer as
determined by the corporation. The corporation shaît not issue a com-
mitment to purchase a conventional mortgage prior to the date the
mortgage is originated, if such mortgage is eligible for purchase under
the preceding sentence only by reason of compliance with the require-
ments of clause (A) of such sentence. The corporation may purchase
il conventional mortgage which was originated more than one year
prior to the purchase date only if the seller is currently engaged in
mortgage lending or investing activities and if, as a result thereof, the
(umulative aggregate of the principal balances of all conventional
mortgages purchased by the corporation which were originated more
than one year prior to the date of purchase does not exceed 10 per
(entum of the cumulative aggregate of the principal balances of all
conventional mortgages purchased by the corporation. The corpora-
tion shall establish limitations governing the maximum principal
obligation of conventional mortgages purchased by it which are com-
parable to the limitations which would be applicable if the mortgage
were insured by the Secretary of Housing and Urban Development
under section 203(b) or 207 of the National Housing Act."

(b) Section 5202 of the Revised Statutes (12 U.S.C. 82) is amended by adding at the end thereof the following:

-Eleventh. Liabilities incurred in connection with sales of mortgages, or participations therein, to the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation."

52 Stat. 10; 83 Stat. 383. 12 USC 1709. 52 Stat. 16; 83 Stat. 383. 12 USC 1713.

TITLE III—FEDERAL HOME LOAN MORTGAGE

CORPORATION

SHORT TITLE

Citation of title,

SEC. 301. This title may be cited as the “Federal Home Loan Mortgage Corporation Act".

DEFINITIONS

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Sec. 302. As used in this title

(a) The term “Board of Directors” means the Board of Directors of the Corporation.

(b) The term “Corporation" means the Federal Home Loan Mortgage Corporation created by this title.

(c) The term “law” includes any law of the United States or of any State (including any rule of law or of equity).

(d) The term "mortgage” includes such classes of liens as are commonly given or are legally effective to secure advances on, or the unpaid purchase price of, real estate under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby, and includes interests in mortgages.

(e) The term “organization" means any corporation, partnership, association, business trust, or business entity.

(f) The term "prescribe" means to prescribe by regulations or otherwise.

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