Evening star., 1937-03-20
UNIFORM LAWS
URGED BY BOARD
State Statute Improvement
Is Held Necessity in
Financing.

UnlIOrmlUy OF SC6Ce laws GOVERN
. ing building and loan associations Is
AN immediate and major necessity
II the construction and financing OF
new homes is to keep pace with the
demand in this country the Federal
Home Loan Bank Board declared in
= statement today.
Coupled with this public appeal to
the 48 States was an announcement
that the legal department of the
board has drafted proposed legisla-
ton and amendments to existing leg
islation for use in many Of the States
and Is ready to cooperate with State
officials and others in improving their
legislative situation. The board itself
has not approved any particular uni
form State legislation on the subject,
but Is willing to cooperate with State
officials in the improvement OF the
legislative situation in any State.
Reports received indicate that much
progress Is being made in several
States, but much remains to be done
to complete the rehabilitation neces-
sary to attain complete public con-
f1dence in saving and loan associations
IN some areas.
"A complete revamping of State
laws along standard lines must take
place If thrift and home financing
institutions are to play their part In
the new national swing toward more
and better homes for the American
people" the statement said.
Better Organization One Benefit.
The suggested uniformity generally
viewed, would provide for better Or
eanization, reorganization, operation
and supervision of savings and loan
associations, which would benefit the
association, their investors and their
borrowers" it was stated
New funds would be attracted to
State-chartered associations if State
laws were improved. This would make
possible greater volume of thrift
funds available for home financing.
Rehabilitation of State chartered
associations in many States is urgently
needed, but such reorganization along
modern lines cannot proceed as long
Reference can be made to the work
being done in several States, includ-
ing Indiana and Kansas, where saw
ings and loan institutions have been
: rehablltated and made more helpful
to the progress of the State and its
citizens through better State laws and
methods of State supervision.
10
necessity. Many States have made
quate provisions for mergers of local
associations badly in need of such
amalgamation. 1t should be possible
Tor sales OF assets of one association
to another when circumstances re-
quired."
Institutions Merged.
AS an example, the statement called
attention to the reorganization and
liquidation of some Louisiana home
stead associations, as local thrift and
home-flnancing institutions are called
In Louisiana. There the State super
visor has ordered the more LIQUID
assets of some associations merged
into one new association. Less LIQUID
assets Of these associations are then
placed in another new association,
the Board of Directors of which is
made up of representatives of the
closed institutions. The statement
continued:
segregation of assets and write
downs of assets are too often prevent
ed by State laws just when they are
needed. New statutes should cover
these provisions as well.
Lack of uniform reserve require
ments is another important point in
reference to State laws. In the case
OF dividends funds should be set aside
to make possible a more uniform divi-
dend each year, instead of high one