Evening star., 1935-08-24
H. 0. |. c. OFFERS
ADDITIONAL CASH
800 Million Available for
Purchase of Shares in
Home Agencies.

Several thousand local home -hnanc-
ing institutions throughout the coun-
try, whose funds are inadequate to
meet the mortgage needs OF home
owners In their communities, may now
obtain capital from the Home Own
ers' Loan Corp. Through recent
act Of Congress, the corporation has
$500 o00, 900 available for the purchase
of shares in Federal savings and loan
associations, or shares. or certificates
of investment or deposit, in any saw
ings bank or building and loan asso-
citation which Is a member OF q Fed
eral Home Loan Bank, or any asso-
citation insured by the Federal Saw
!ngs and Loan Insurance Corp.
The objective Of such financial en-
couragement by the Federal Govern
ment is to stimulate the sound and
economical financing OF homes
through State-chartered institutions
in q way similar to the provision by
which the United States Treasury has
been authorized, during the last two
years, to subscribe to the capital Of
Federal savings and loan associations,
9ol Of which are now in operation,
and in which the Treasury has so far
invested approximately $4o,000,000.
Applications Urged.
"The board desires to get the funds
out where they can be used, and urges
eligible institutions needing additional
capital for home financing to apply
to the corporation" says an articel in
the August number Of the Federal
Home Loan Bank Review, describing
the method of application. Procedure
has been simplified and only mini
mum number Of forms are to be used,
according to the Review.
Associations insured or admitted to
membership in the Home Loan Bank
System in the last few months may
dispense with much Of the examina-
ton procedure otherwise necessary for
approval of the investments, since the
board already has detailed informa-
tion as to their current condition.
More rigorous examination is nat
urally required of other institutions.
To expedite the use Of these funds,
the board will establish an approved
list of both Federal savings and loan
associations and State chartered in
stitutions. Once an association is
thus approved, it may ordinarily ap-
ply for successive investments from
the corporation without further ex-
animation and without filing support
ing statements.
Rules Announced.
II q request cannot be approved on
the data submitted, the corporation
will inform the applicant that further
examination or appraisal is necessary.
The corporation will make no request
for the purchase of withdrawal of its
shares or certificates for a period OF
five years from the date Of purchase,
and thereafter no institution shall be
requested to repurchase or pay with
drewals in any one year in excess of
10 per cent of the corporations total
investment in that institution.
Apart from supplying proofs of their
eoundness, associations are expected
to make reasonable use of their own
credit, available through the home
loan banks, to secure funds to meet
the home-financing requirements Of
their communities before applying to
the corporation for investment.
The Federal Home Loan Bank Sys-
tenn now includes 3,340 thrift and
home financing institutions. Their as
sets. totaling $3,185 1922, ,286, amount
to more than half of the estimated
combined resources of the 10000
building and loan associations in the
country. OF the systems members,
2,448 are State-chartered institutions.