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employee, attorney, or agent of the Corporation, of any officer, attorney, or employee of any board, corporation, commission, establishment, executive department, or instrumentality of the Government;

(6) to utilize with the consent of and in the discretion of any department, establishment, board, conmission, corporation, or other instrumentality of the Government, including any field service, any such entity being referred to hereinafter in this subsection as "agency", such of the facilities, information, and per

sonnel of such agency as it deems necessary to carry out its duties under this Act, and to pay compensation there

for, and each agency is authorized to furnish the same

to the Corporation upon request made by the chairman of the Board;

(7) to use the United States mails for the official business of the Corporation in the same manner as the executive departments of the Government;

(8) subject to the Government Corporation Control Act, to determine the necessity for and the character and

amount of its obligations and expenditures, and the man

ner in which they shall be incurred, allowed, and paid; and

(9) to exercise by the Board, or by duly authorized officers or agents, all powers granted by this Act, and

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such incidental powers as shall be necessary to carry out

the powers so granted.

BORROWINGS

SEC. 6. For the purposes of this Act, the Corporation 5 shall have power to borrow money, and to issue notes, bonds, 6 debentures, or other such obligations upon such terins and 7 conditions as the Board may determine, but the amount of 8 all such obligations outstanding at any one time shall not 9 exceed ten times the sum of its capital, surplus, and reserves. 10 Such notes, bonds, debentures, or other such obligations are 11 hereby declared to be legal investments for federally char12 tered savings and loan associations. Moneys of the Corpora13 tion not required for current operation shall be deposited 14 with the Treasurer of the United States or, upon the approval 15 of the Secretary of the Treasury, in any Federal Reserve 16 bank or in any Federal home loan bank, or shall be in17 vested in obligations of, or obligations guaranteed as to 18 principal and interest by, the United States. When desig

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nated for that purpose by the Secretary of the Treasury, the 20 Corporation shall be a depository of public money, under 21 such regulations as may be prescribed by the Secretary of the Treasury, and may also be employed as fiscal agent of 23 the United States, and it shall perform all such reasonable

24 duties as such depository or agent as may be required of it.

2 SEC. 7. The Corporation shall make an annual report of 3 its operations to the Congress as soon as practicable after the 4 first day of January in each year. Such report may be a part 5 of the annual report of the Federal Home Loan Bank Board.

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USE OF CORPORATE NAME

SEC. 8. No individual, association, partnership, or cor8 poration, except the body corporate created by section 3 9 of this Act, shall hereafter use the words "Home Mortgage 10 Corporation", or any combination of such words, as a name 11 or part thereof under which he or it does business, but 12 this sentence shall not make unlawful the use of any name 13 under which business is being done on the date of the

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enactment of this Act. Any individual, association, partner

ship, or corporation violating this prohibition shall be guilty 16 of a misdemeanor and shall be punished by a fine of not

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exceeding $100 for each day during which such violation 18 is committed or repeated.

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MISCELLANEOUS

SEC. 9. (a) Section 201 of the Government Corporation Control Act is amended by striking out "and (5) Federal Deposit Insurance Corporation" and inserting in lieu thereof

the following: "(5) Federal Deposit Insurance Corporation, and (6) Home Mortgage Corporation".

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1 (b) In order that the Corporation may be supplied 2 with such forms of obligations or certificates as it may 3 need for issuance under this Act, the Secretary of the 4 Treasury is authorized, upon request of the Corporation, to

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prepare such forms as shall be suitable and approved by 6 the Corporation, to be held in the Treasury subject to de7 livery upon order of the Corporation. The engraved plates, 8 dies, bed pieces, and other material executed in connection 9 therewith shall remain in the custody of the Secretary of 10 the Treasury. The Corporation shall reimburse the Sec11 retary of the Treasury for any expenses incurred in the 12 preparation, custody, and delivery of such forms.

S. 811-SECTION BY SECTION OUTLINE

Section 1. Title: "Home Mortgage Corporation Act."

Section 2. Definitions.

Section 3. (a) Power given to the Home Mortgage Corporation by buy and sell participations in mortgages on residential properties containing not more than four family units.

(b) The Corporation to be managed by a Board made up of members of the Federal Home Loan Bank Board and the presidents of the Federal home loan banks, one of which presidents to be Chairman.

(c) Corporation shall have principal office in District of Columbia, with agencies in such other places as may be appropriate.

Section 4. (a) Capital stock of Corporation shall be in shares of $100 par value each. The Federal home loan banks shall subscribe to the preferred stock, at the call of the Board from time to time, up to a $50 million aggregate, in proportion to the outstanding capital of each bank at time of the call.

(b) Each Federal home loan bank member shall be eligible to purchase the common stock, and shall do so in an amount approximating 1 percent of the dollar volume of mortgage loans sold by such member to the Corporation. Common stock may be redeemed under certain conditions.

(c) Cash deposit permitted in lieu of purchase of stock by any member not permitted by law to invest in such stock.

(d) Provision for retirement of stock if such retirement does not reduce the assets of the Corporation to less than (1) $50 million, or (2) one-tenth of the dollar amount of the outstanding obligations of the Corporation, whichever is the greater. Senior stock shall be retired first.

(e) Ten percent of net earnings shall be transferred to reserves for losses annually until reserves equal 50 percent of outstanding capital, and thereafter 5 percent of net earnings shall be so transferred. After allocations to loss reserves, Board may pay dividends from remaining net earnings.

Section 5. General Powers of Corporation: Those normal to other governmental agencies.

Section 6. Authorization to borrow money and to issue obligations therefor up to 10 times the aggregate of outstanding assets. Such obligations will be legal investments for Federal savings and loan associations. Corporation authorized to invest in U.S. obligations or obligations guaranteed as to principal and interest by the United States. Secretary of the Treasury may designate Corporation as depositary of public money and it may be employed as fiscal agent for United States.

Section 7. Corporation shall make annual report to Congress.

Section 8. Use of any combination of words such as "Home Mortgage Corporation" prohibited to others, subject to $100 a day penalty for violation.

Section 9. (a) Amends Government Corporation Control Act to include Home Mortgage Corporation.

(b) Provision for Treasury to supply Corporation with such forms of obligations or certificates as it may need for issuance under the act, subject to reimbursement of the Secretary of Treasury for expenses thereby incurred.

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