PUBLIC LAWS-CH. 13-FEB . 3, 1938 Proviso. Restriction on issu- ance of obligations. 12 U.S. C. § 1717; Supp. III , 1717. Outstanding obliga- tions. Aggregate amount. Ante, p. 9 . Borrowing by asso- ciation, restriction. Acceptance of its notes, etc., in payment of obligations due. Proviso. Cancelation. 12U.S.C.§1718. Investment of funds. Ante, p. 23. Maintenance of re- serves. 12 U. S. C. 1722. Taxation provi- sions. Notes, bonds, etc., exempt; exception. National mortgage associations, ex- emption. Real property of as- sociation not included. 12U. .C. §1731. Penalties. Misrepresentations. taken at such value as the Administrator may determine, not exceed- ing (except as to mortgages insured under title II of this Act) 60 per centum of the appraised value of the property as of the date of subscription, and that the remainder of the subscription to such cap- ital stock is payable in the same manner and at such time as may be determined by the Administrator: Provided, That no association shall issue notes, bonds, debentures, or other such obligations until such time as such subscriptions are paid in full in cash or Government securities at their par value or in mortgages or other liens as herein- before set forth." SEC. 6. Section 302 of such Act is amended to read as follows: "SEC. 302. Each national mortgage association is authorized to issue and have outstanding at any time notes, bonds, debentures, or other such obligations in an aggregate amount not to exceed (1) twenty times the amount of its paid-up capital and surplus, and in no event to exceed (2) the current unpaid principal of mortgages held by it and insured under the provisions of title II of this Act, plus the amount of its cash on hand and on deposit and the amortized value of its investments in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States. No national mortgage association shall borrow money otherwise than through the issuance of such notes, bonds, debentures, or other obligations, except with the approval of the Administrator and under such rules and regulations as he shall pre- scribe. An association may, if its bylaws so provide, accept any notes, bonds, debentures, or other obligations issued by it in payment of obligations due it at par plus accrued interest: Provided, That such notes, bonds, debentures, or other obligations so accepted shall be canceled and not reissued." SEC. 7. Section 303 of such Act is amended to read as follows: "SEC. 303 . Moneys of any national mortgage association not invested in first mortgages or other liens as provided in section 301, or in operating facilities approved by the Administrator, shall be kept in cash on hand or on deposit, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States; except that each such association shall keep and maintain such reserves as the Administra- tor shall by rules and regulations prescribe, and may purchase in the open market notes, bonds, debentures, or other such obligations issued under section 302." SEC. 8. Section 307 of such Act is amended to read as follows: "SEC. 307. All notes, bonds, debentures, or other obligations issued by any national mortgage association shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. Every national mortgage association, including its franchise, capital, re- serves, surplus, mortgage loans, income, and stock, shall be exempt from taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. Nothing herein shall be construed to exempt the real property of such association from taxation by any State, county, municipality, or local taxing authority to the same extent according to its value as other real property is taxed." SEC. 9. Section 512 (a) of such Act is amended to read as follows: "SEC. 512. (a) Whoever, for the purpose of obtaining any loan or advance of credit from any person, partnership, association, or cor- poration with the intent that such loan or advance of credit shall 24 [52 STAT.
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