An Act to lower interest rates and fight inflation, to help housing, small business, and employment, and for other purposes
PL 91-151 (S.2577), enacted 12/23/1969

83 STAT. ] 
PUBLIC LAW 91-151-DEC. 23, 1969 
371 
Public Law 91-150 
A N A C T 
December 22, 1969 
To authorize the disposal of certain real property in the Chickamauga and Chat- 
[H. R. 9163] 
tanooga National Military Park, Georgia, under the Federal Property and 
Administrative Services Act of 1949. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That, notwithstand- and^chatunooga 
ing section 3(d) of the Federal Property and Administrative Services National Military 
Act of 1949 (40 U.S.C. 472(d)), the Secretary of the Interior may Park, Ga. 
designate as excess property subject to the retention by the Depart- dup^osa''L°^'"^*^' 
ment of the Interior of a reversionary interest in perpetuity with 
72 stat. 29. 
respect to any portion of such property not utilized for educational 
purposes under that Act, lot 94 in the ninth district and fourth section 
of Catoosa County, Georgia, the same consisting of one hundred and 
sixty acres, more or less, in the Chickamauga battlefield section of the 
Chickamauga and Chattanooga National Military Park in the State of 
Georgia, and such lot shall be utilized or disposed of by the Adminis-
trator of General Services in accordance with the remaining provisions 
of such Act. 
Approved December 22, 1969. 
Public Law 91-151 
A N A C T 
December 23, 1969 
To lower interest rates and fight inflation; to help housing, small business, and 
[s.2577] 
eiuployment; to increase the availability of mortgage credit; and for other 
purposes. 
12 use 461 
Be it enacted hy the Snmte and House of Representatice'i 
of the 
United States of America In Congress assembled. 
interest rates 
and mortgage 
credit controls. 
TITLE I—AMENDMENTS TO EXISTING ACTS 
Extension 
SECTION 1. Section 7 of the Act of September 21, 1966 (Public Law 
89-587; 80 Stat. 823) is amended to read: 
82 stat. 856; 
"SEC. 7. Effective March 22, 1971: 
^"i^;"' ''^• 
"(1) So much of section 19(j) of the Federal Reserve Act (12 note. 
LT.S.C. 371(b)) as precedes the third sentence thereof is amended 
to read as it would without tlie amendment made by section 2(c) 
of this Act. 
"(2) The second and third sentences of section 18(g) of the 
Federal Deposit Insurance Act (12 U.S.C. 1828(g)) are amended 
to read as they v/ould without the amendment made by section 3 
of this Act. 
"(3) The last three sentences of section 18(g) of the Federal 
372 
PUBLIC LAW 91-151-DEC. 23, 1969 
[83 STAT. 
Deposit Insurance Act (12 U.S.C. 1828(g)) are repealed. 
^"P^^^- 
"(4) Section oB of the Federal Home Loan Bank Act (12 
U.S.C. 1425b) is repealed.*' 
SEC. 2. (a) Section 18(g) of the Federal Deposit Insurance Act (12 
64 Stat. 893. 
U.S.C. 1828(g)) is amended by adding at the end thereof the follow-
ing new sentences: ''The authority conferred by this subsection shall 
also apply to noninsured banks in any State if (1) the total amount 
of time and savings deposits held in all such banks in the State, plus 
the total amount of deposits, shares, and withdrawable accounts held 
in all building and loan, savings and loan, and homestead associations 
(including cooperative banks) in the State which are not members of 
a Federal home loan bank, is more than 20 per centum of the total 
amount of such deposits, shares, and withdrawable accounts held in all 
banks, and building and loan, savings and loan, and homestead associa-
tions (including cooperative banks) in the State, and (2) there does 
not exist under the laws of such State a bank supervisory agency with 
authority comparable to tliat conferred by this subsection, including 
specifically the authority to regulate the rates of interest and dividends 
paid by such noninsured banks on time and savings deposits, or if 
such agency exists it has not issued regulations in the exercise of that 
authority. Such authority shall only be exercised by the Board of 
Directors with respect to such noninsured banks prior to July 31,1970, 
to limit the rates of interest or dividends which such banks may pay 
on time and savings deposits to maximum rates not lower than 51/2 
per centum per annum. Whenever it shall appear to the Board of 
Directors that any noninsured bank or any affiliate thereof is engaged 
or has engaged or is about to engage in any acts or practices which 
constitute or will constitute a violation of the provisions of this sub-
section or of any regulations thereunder, the Board of Directors may, 
in its discretion, bring an action in the United States district court for 
the judicial district in which the principal office of the noninsured bank 
or affiliate thereof is located to enjoin such acts or practices, to enforce 
compliance with this subsection or any regulations thereunder, or for a 
combination of the foregoing, and such courts shall have jurisdiction 
of such actions, and, upon a proper showing, an injunction, restraining 
order, or other appropriate order may be granted without bond." 
savrn%"nd''^'' 
^^^ Scctlou oB of the Federal Home Loan Bank Act (12 U.S.C. 
ioan"as\ociations. 1425b) is amended to read as follows: 
80 stat^ 824; 
"SEC. OB. (a) The Board may from time to time, after consulting 
with the Board of Governors of the Federal Eeserve System and the 
Board of Directors of the Federal Deposit Insurance Corporation, 
prescribe rules governing the payment and advertisement of interest 
or dividends on deposits, shares, or withdrawable accounts, including 
limitations on the rates of interest or dividends on deposits, shares, or 
withdraw^able accounts that may be paid by members, other than those 
the deposits of which are insured in accordance with the provisions of 
64 Stat. 873. 
^j^g Federal Deposit Insurance Act, by institutions which are insured 
82 Stat. 856. 
Supra. 
12 u s e 1811 
83 STAT. ] 
PUBLIC LAW 91-151-DEC. 23, 1969 
373 
institutions as defined in section 401(a) of the National Housing Act, go^stat^^osl;^^' 
and by nonmember building and loan, savings and loan, and homestead 
12 use 17V4. 
associations, and cooperative banks. The Board may prescribe different 
rate limitations for different classes of deposits, shares, or with-
drawable accounts, for deposits, shares, or withdrawable accounts of 
different amounts or with different maturities or subject to different 
conditions regarding withdrawal or repayment, according to the 
nature or location of such members, institutions, or nonmembers or 
their depositors, shareholders or withdrawable account holders, or 
according to such other reasonable bases as the Board may deem desir-
able in the public interest. The authority conferred by this subsection 
shall apply to nonmember building and loan, savings and loan, and 
homestead associations, and cooperative banks in any State if (1) the 
total amount of deposits, shares, and withdrawable accounts held in 
all such nonmember associations and banks in the State, plus the total 
amount of time and savings deposits held in all banks in the State 
which are not insured by the Federal Deposit Insurance Corporation, 
is more than '20 per centum of the total amount of such deposits, shares, 
and AvithdraAvable accounts held in all banks, and building and loan, 
savings and loan, and homestead associations (including cooperative 
banks) in the State, and (2) there does not exist under the laws of such 
State a bank supervisory agency with authority comparable to that 
conferred by the first two sentences of this subsection, including 
specifically the authority to regulate the rates of interest and dividends 
])aid by any such association or bank on deposits, shares, or with-
drawable accounts, or if such agency exists it has not issued regulations 
in the exercise of that authority. Such authority shall only be exercised 
by the Board with respect to such nonmember associations and banks 
prior to July 81,1970, to limit the rates of interest or dividends which 
such associations or banks may pay on deposits, shares, or withdraw-
able accounts to maximum rates not lower than 5^/^ per centum per 
annum. 
" (b) In addition to any other penalty provided by this or any other 
Penalty. 
law, any institution subject to this section which violates a rule promul-
gated pursuant to this section shall be subject to such civil penalties, 
which shall not exceed $100 for each violation, as may be prescribed 
by said Board by rule and such rule may provide with respect to any 
or all such violations that each day on which the violation continues 
shall constitute a separate violation. The Board may recover any such 
civil penalty for its own use, through action or otherwise, including 
recovery thereof in any other action or proceeding under this section. 
The Board may, at any time before collection of any such penalty, 
whether before or after the bringing of an action or other legal pro-
ceeding, the obtaining of any judgment or other recovery, or the issu-
ance or levy of any execution or other legal process therefor, and with 
or without consideration, compromise, remit, or mitigate in whole or 
in part any such penalty or any such recovery. 
374 
PUBLIC LAW 91-151-DEC. 23, 1969 
[83 STAT. 
"(c) Whenever it shall appear to the Board that any nonmember 
institution is engaged or has engaged or is about to engage in any acts 
or practices which constitute or will constitute a violation of the provi-
sions of this section or of any regulations thereunder, the Board may, 
in its discretion, bring an action m the United States district court for 
the judicial district in which the principal office of the institution is 
located to enjoin such acts or practices, to enforce compliance with this 
section or any regulations thereunder, or for a combination of the fore-
going, and such courts shall have jurisdiction of such actions, and, 
upon a proper showing, an injunction, restraining order, or other ap-
propriate order may be granted without bond. 
Expenses. 
«(^) ^Ij expeuses of the Board under this section shall be considered 
as nonadministrative expenses." 
SEC. 3. Section 11 (i) of the Federal Home Loan Bank Act (12 U.S.C. 
?2 usr ff.'; 
l^^l(i)) i's amended— 
(1) by striking out "$1,000,000,000" and inserting in lieu thereof 
"$4,000,000,000"; 
(2) by striking out the last sentence thereof and inserting in 
lieu thereof the following: "Each purchase of obligations by the 
Secretary of the Treasury under this subsection shall be upon 
terms and conditions as shall be determined by the Secretary of 
the Treasury and shall bear such rate of interest as may be deter-
mined by the Secretary of the Treasury taking into consideration 
the current average market yield for the month preceding the 
month of such purchase on outstanding marketable obligations 
of the United Stains."; and 
(8) by adding at the end thereof a new paragraph as follows: 
"The authority provided in this subsection shall be used by the 
Secretary of the Treasury, when alternative means cannot effectively 
be employed, to permit members of the Home Loan Bank System to 
continue to supply reasonable amounts of funds to the mortgage mar-
ket whenever the ability to supply such funds is substantially impaired 
during periods of monetary stringency and rapidly rising interest 
rates and any funds so borrowed shall be repaid by the Home Loan 
Bank Board at the earliest practicable date." 
SEC. 4. (a) Section 19(a) of the Federal Reserve Act (12 U.S.C. 
80 Stat. 823. 
461) ig amended by inserting after the word "interest," the following: 
"to determine what types of obligations, whether issued directly by 
a member bank or indirectly bv an affiliate of a member bank or by 
other means, shall be deemed a deposit,". 
(b) (1) The fourth sentence of section 18(g) of the Federal Deposit 
64 Stat. 893. 
Insurauce Act (12 U.S.C. 1828(g)) is amended to read as follows: 
"The Board of Directors is authorized for the purposes of this subsec-
tion to define the terms 'time deposits' and 'savings deposits', to 
determine what shall be deemed a payment of interest, and to 
prescribe such regulations as it may deem necessary to effectuate the 
purposes of this subsection and to prevent evasions thereof." 
(2) Section 18(g) of such Act is further amended by inserting after 
the fifth sentence the following: "The provisions of this subsection 
and of regulations issued thereunder shall also apply, in the discre-
tion of the Board of Directors, to obligations other than deposits 
that are undertaken by insured nonmember banks or their affiliates 
for the purpose of obtaining funds to be used in the banking business. 
As used in this subsection, the term 'affiliate' has the same meaning as 
when used in section 2(b) of the Banking Act of 1938, as amended 
48 Stat. 162; 
(^g U.S.C. 221a(b)), except that the term 'member bank', as used in 
80 Stat. 242. 
^^^^ sectlou 2(b), shall be deemed to refer to an insured nonmember 
bank." 
12 use 1727. 
83 STAT. ] 
PUBLIC LAW 91-151-DEC. 23, 1969 
375 
(c) The first sentence of section 18 (g) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1828(g)) is amended by inserting "or dividends" 
^^ stat. 893. 
*i "ftpT* '^intGrGst 
SEC. 5. Section 19(b) of the Federal Reserve Act (12 U.S.C. 461) 
«« stat. 823. 
is amended by adding at the end thereof a new sentence as follows: 
"The Board may, however, prescribe any reserve ratio, not more than 
22 per centum, with respect to any indebtedness of a member bank that 
arises out of a transaction in the' ordinary course of its banking busi-
ness with respect to either funds received or credit extended by such 
bank to a bank organized under the law of a foreign country or a 
dependency or insular possession of the United States." 
SEC. 6. (a) Effective as of the close of December 31,1969, section 404 ^^^f 
^'^"''^ 
of the National Housing Act is amended 
_ 
°48"stat. i258; 
(1) by striking out "plus any creditor obligations of such insti- 75 stat. 483. 
tution" m subsection (b) (1), and the amendment made by this 
^^ "^^ ^^' 
subdivision (1) shall be applicable also to any then unexpired 
portion of any then current premium year under subsection 
(b)(1). 
. . 
(2) by striking out "and creditor obligations' m subsection 
(b)(2). 
(3) by striking out "and its creditor obligations" in sub-
section (c). 
(4) by striking out "and creditor obligations" each place it 
appears in subsection (g). The condition m the first sentence of 
that subsection shall be deemed to be met as of the close of Decem-
ber 31, 1969. The words "such year" in that sentence shall be 
deemed to include also the year beginning January 1, 1970. 
(b) The Federal Savings and Loan Insurance Corporation is 
authorized by regulation or otherwise 
(1) to make such provisions as it may deem advisable with 
respect to the order in which and the extent to which the compo-
nents of a pro rata share of its secondary reserve shall be applied 
or be deemed to have been applied in the case of a reduction of 
such share through a use under the second sentence of section 
404^6) of the National Housing Act or the first sentence of section 
404(g), a transfer of part of such share under the third sentence 
of section 404(e), or otherwise. 
(2) to take such action, including without limitation such 
adjustments and refunds and such deferrals of premium payments 
and other payments, as it may determine to be necessary or appro-
priate for or in connection with the implementation of this section 
or other legislation amending or supplementing said section 404. 
SEC. 7. (a) The following provisions of the Federal Deposit Insur-
ance Act are amended by changing "$15,000", each place it appears 
therein, to read "$20,000'"': 
note. 
(1) The first sentence of section 3(m) (12 U.S.C. 1813 (m)). 
so stat. 1055 
(2) The first sentence of section 7 (i) (12 U.S.C. 18l7(i)). 
(3) The last sentence of section 11 (a) (12 U.S.C. 1821(a)). 
(4) The fifth sentence of section 11 (i) (12 U.S.C. 1821 (i)). 
(b) The amendments made by this section are not applicable to any 
claim arising out of the closing of a bank prior to the date of enact-
ment of this Act. 
SEC. 8. (a) The following provisions of title IV of the National 
Housing Act are amended by changing "$15,000", each place it appears 
"^^ stat. 1255; 
therein, to read "$20,000": 
6 ^ 
» 
» 
F 
F F 
«I «.„. .,, 
64 Stat. 873. 
12 u s e 1811 
(1) Section 401(b) (13 U.S.C. lT»4(b)). 
(2) Section406(a) (12U.S.C. 1728(a)). 
81 Stat. 611. 
12 u s e 1724-
17S*c. 
• « Jtat. 1055. 
376 
PUBLIC LAW 91-151-DEC. 23, 1969 
[83 STAT. 
(b) The amendments made by this section are not applicable to any 
claim arising out of a default, as defined in section 401(d) of the 
12 us*' ^^^^' 
National Housing Act, where the appointment of a conservator, re-
ceiver, or other legal custodian as set forth in that section becomes 
effective prior to the date of enactment of this Act. 
SEC. 9. (a) Section 708(b) of the Defense Production Act of 1950 
egttH^'ssV.^' 
(^? U.S.C. 2158(b)) is amended by striking out everything after 
50 use app. 
"United States", the first time it appears, and inserting a })eriod in 
2158. 
lieu thereof. 
fl^'sTat. 305. 
(^) Section 708(f) of that Act (50 F.S.C. 2158(f)) is rei)ealed. 
50 use app. 
2158 
TITLE II—AUTHORITY FOR CREDIT CONTROL 
Sec. 201. Short title 
This title may be cited as the Credit Control Act. 
Sec. 202. Definitions and rules of construction 
(a) The definitions and rules of construction set forth in this 
section apply to the provisions of this title. 
(b) The term "Board" refers to the Board of Governors of the 
Federal Reserve System. 
(c) The term "organization" means a corporation, government or 
governmental subdivision or agency, trust, estate, partnership, coop-
erative, or association. 
(d) The term "person" means a natural person or an organization. 
(e) The term "credit" means the right granted by a creditor to a 
debtor to defer payment of debt or to incur debt and defer its 
l>ayment. 
(f) The term "creditor" refers to any person wlio extends, or 
arranges for the extension of, credit, whether in connection with a loan, 
a sale of property or services, or otherwise. 
(g) The term "credit sale" refers to any sale wdth respect to Avhich 
credit is extended or arranged by the seller. The term includes any 
rental-purchase contract and any contract or arrangement for the bail-
ing or leasing of property when used as a financing device. 
(h) The terms "extension of credit" and "credit transaction" include 
loans, credit sales, the supplying of funds through the underwriting, 
distribution, or acijuisition of securities, the making or assisting in 
the making of a direct placement, or otherwise participating in the 
offering, distribution, or acquisition of securities. 
(i) The term "borrower" includes any person to whom credit is 
extended. 
(j) The term "loan" includes any type of credit, including credit 
extended in connection with a credit sale. 
(k) The term "State" refers to any State, the Commonwealth of 
Puerto Rico, the District of Columbia, and any territory or possession 
of the United States. 
(1) Any reference to any requirement imposed under this title of 
any provision thereof includes reference to the regulations of the 
Board under this title or the provision thereof in question. 
Sec. 203. Regulations 
The Board shall prescribe regulations to carry out the purposes 
of this title. These regulations may contain such classifications, differ-
entiations, or other provisions, and may provide for such adjustments 
and exceptions for any class of transactions, as in the judgment of 
the Board are necessary or proper to effectuate the purposes of this 
title, to prevent circumvention or evasion thereof, or to facilitate com-
pliance therewith. 
83 STAT. ] 
PUBLIC LAW 91-151-DEC. 23, 1969 
377 
Sec. 204. Determination of interest charge 
Except as otherwise provided by the Board, the amount of the inter-
est charge in connection with any credit transaction shall be deter-
mined under the regulations of the Board as the sum of all charges 
payable directly or indirectly to the person by whom the credit is 
extended in consideration of the extension of credit. 
Sec. 205. Authority for institution of credit controls 
(a) Whenever the President determines that such action is necessary 
or appropriate for the purpose of preventing or controlling inflation 
generated by the extension of credit in an excessive volume, the Presi-
dent may authorize the Board to regulate and control any or all exten-
sions of credit. 
(b) The Board may, in administering this Act, utilize the services of 
the Federal Reserve banks and any other agencies, Federal or State, 
which are available and appropriate. 
Sec. 206. Extent of control 
The Board, upon being authorized by the President under section 205 
and for such period of time as he may determine, may by regulation 
(1) require transactions or persons or classes of either to be 
registered or licensed. 
(2) prescribe appropriate limitations, terms, and conditions 
for any such registration or license. 
(3) provide for suspension of any such registration or license 
for violation of any provision thereof or of any regulation, rule, 
or order prescribed under this Act, 
(4) prescribe appropriate requirements as to the keeping of 
records and as to the form, contents, or substantive provisions of 
contracts, liens, or any relevant documents. 
(5) prohibit solicitations by creditors which would encourage 
evasion or avoidance of the requirements of any regulation, license, 
or registration under this Act. 
(6) prescribe the maximum amount of credit which may be 
extended on, or in connection with, any loan, purchase, or other 
extension of credit. 
(7) prescribe the maximum rate of interest, maximum matu-
rity, mmimum periodic payment, maximum period between pay-
ments, and any other specification or limitation of the terms and 
conditions of any extension of credit. 
(8) prescribe the methods of determining purchase prices or 
market values or other bases for computing permissible extensions 
of credit or required downpayment. 
(9) prescribe special or different terms, conditions, or exemp-
tions with respect to new or used goods, minimum original cash 
jDayments, temporary credits which are merely incidental to cash 
purchases, payment or deposits usable to liquidate credits, and 
other adjustments or special situations. 
378 
PUBLIC LAW 91-151-DEC. 23, 1969 
[83 STAT. 
(10) prescribe maximum ratios, applicable to any class of either 
creditors or borrowers or both, of loans of one or more types or 
of all types 
^A) to deposits of one or more types or of all types. 
(B) to assets of one or more types or of all types. 
(11) prohibit or limit any extensions of credit under any cir-
cumstances the Board deems appropriate. 
Sec. 207. Reports 
Reports concerning the kinds, amounts, and characteristics of any 
extensions of credit subject to this title, or concerning circumstances 
related to such extensions of credit, shall be filed on such forms, under 
oath or otherwise, at such times and from time to time, and by such 
persons, as the Board may prescribe by regulation or order as neces-
sary or appropriate for enabling the Board to perform its functions 
under this title. The Board may require any person to furnish, under 
oath or otherwise, complete information relative to any transaction 
within the scope of this title including the production of any books of 
account, contracts, letters, or other papers, in connection therewith in 
the custody or control of such person. 
Sec. 208. Injunctions 
Whenever it appears to the Board that any person has engaged, is 
engaged, or is about to engage in any acts or practices constituting a 
violation of any regulation under this title, it may in its discretion 
bring an action, in the proper district court of the United States or the 
proper United States court of any territory or other place subject to 
the jurisdiction of the United States, to enjoin such acts or practices, 
and upon a proper showing a permanent or temporary injunction or 
restraming order shall be granted w ithout bond. Upon application of 
Ihe Board, any such court may also issue mandatory injunctions com-
manding any person to comply with any regulation of the Board 
under this title. 
Sec. 209. Civil penalties 
(a) For each willful violation of any regulation under this title, the 
Board may assess upon any person to which the regulation applies, 
and upon any partner, director, officer, or employee thereof who will-
fully participates in the violation, a civil penalty not exceeding $1,000. 
(b) In the event of the failure of any person to pay any penalty 
assessed under this section, a civil action for the recovery thereof may, 
in the discretion of the Board, be brought in the name of the United 
States, 
Sec. 210. Criminal penalty 
Whoever willfully violates any regulation under this title shall be 
fined not more than $1,000 or imprisoned not more than one year, or 
both. 
TITLE III—SMALL BUSINESS ADMINISTRATION 
ACTIVITY 
SEC. 301. The Small Business Administration shall promptly increase 
the level of its financing functions utilizing the business loan and 
investment fund established under section 4(c) (1) (B) of the Small 
80 Stat. 132. 
Business Act (15 U.S.C. 633 (c) (1) (B)) by $70,000,000 above the level 
Report to 
prevailing at the time of enactment of this Act. The Small Business 
Congress. 
Administration shall submit to Congress a monthly report of its imple-
mentation of this section. 
Approved December 23, 1969.