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LIBRARY OF CONGRESS
CREATION OF A SYSTEM OF FEDERAL HOME LOAN
THURSDAY, JANUARY 14, 1932
UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON BANKING AND CURRENCY,
Washington, D. C. The subcommittee met, pursuant to call, at 10 o'clock a. m., in the hearing room of the Committee on Interstate Commerce in the Capitol, Senator James E. Watson presiding.
Present: Senator Watson (chairman of the subcommittee), Couzens Townsend, and Morrison.
The subcommittee thereupon proceeded to the consideration of the bill (S. 35) to create Federal home loan banks, to provide for the supervision thereof, and for other purposes, and the bill (S. 2959) to create Federal home banks, to provide for the supervision thereof, and for other purposes.
[S. 2959, Seventy-second Congress, first session] A BILL To create Federal home loan banks, to provide for the supervision thereof, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act may be cited as the “Federal home loan bank act."
DEFINITIONS SEC. 2. As used in this act (1) The term “board” means the Federal home loan bank board.
(2) The term “Federal home loan bank” means a bank established by the board under authority of this act.
(3) The term “State" includes the District of Columbia and the Territories of Alaska and Hawaii.
(4) The term “member" (except when used in reference to a member of the board) means any institution which has subscribed for the stock of a Federal home loan bank, and includes any institution which has, in lieu of subscribing for stock, deposited cash or securities, as authorized in section 5 (e).
(5) The term "home-mortgage loan” means a loan made by a member upon the security of a home mortgage.
(6) The term “home mortgage” means a first mortgage upon real estate upon which there is located a dwelling for not more than three families, and shall include such classes of first liens other than mortgages as are commonly given to secure advances on real estate by institutions authorized under this act to become members, under the aws of the State in which the same are located, together with the credit instruments, if any, secured thereby.
(7) The term “unpaid principal” when used in respect of a loan secured by a home mortgage means the principal thereof less the sum of (1) payments made on such principal, and (2) in cases where shares of stock pledged as security for the loan may, to the extent they are paid, be applied toward discharging the principal of the loan, the amounts paid on such shares either directly or by credit, of dividends, or otherwise.