An Act to amend the Federal Home Loan Bank Act to simplify and improve the election and appointment of directors of the Federal home loan banks
PL 87-211 (H.R.8277), enacted 09/08/1961

486 
PUBLIC LAW 87-21 l - S E P T . 8, 1961 
[75 ST A T . 
September 8, 1961 
[H. R. 8277] 
F e d e r a l 
H o m e 
Loan B a n k 
A c t , 
amendment. 
47 Stat. 730; 49 
Stat. 294. 
Board of D i r e c-
tors. 
Appointment and 
election. 
69 Stat. 640. 
12 u s e 1437. 
Elective d i r e c-
torships. 
"Member.'» 
Apporti o n m e n t 
among S t a t e s in 
bank district. 
Public Law 87-211 
AN ACT 
To amend the Federal Home Loan Bank Act to simplify and improve the elec-
tion and appointment of directors of the Federal home loan banks. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress a.'^semhled^ That subsections 
(a) through (h) of section 7 of the Federal Home Loan Bank Act (12 
IJ.S.C. 1427) are amended to read as follows: 
"(a) The management of each Federal home loan bank shall be 
vested in a board of twelve directors, eight of whom shall be elected by 
the members as hereinafter provided in this section and four of whom 
shall be appointed by the Federal Home Loan Bank Board referred 
to in subsection (b) of section 17, hereinafter in this section referred 
to as the Board, all of whom shall be citizens of the United States 
and bona fide residents of the district in which such bank is located: 
Provided, That in any district which includes five or more States 
the Board may by regulation increase the elective directors to a num-
ber not exceeding thirteen and may increase the appointive directors 
to a number not exceeding one-half the number of elective directors: 
Provided further. That if at any time the number of elective directors 
in the case of any district is not at least equal to the number of States 
in such district the Board shall exercise the authority conferred by 
tlie next preceding proviso so as to increase such elective directors to a 
number at least equal to the number of States in such district. 
"(b) Each elective directorship shall be designated by the Board 
as representing the members located in a particular State, and shall 
be filled by a person who is an officer or director of a member located 
in that State, each of which members shall be entitled to nominate 
an eligible person for such directorship, and such office shall be filled 
from such nominees by a plurality of the votes which such members 
may cast in an election held for the purpose of filling such office, in 
which election each such member may cast for such office a number 
of votes equal to the number of shares of stock in such bank required 
by this Act to be held by such member at the end of the calendar year 
next preceding the election, as determined pursuant to regulation of 
the Board, but not in excess of the average number of shares of stock 
in such bank required by this Act to be held at the end of such calendar 
year by the respective members of such bank located in such State, 
as so determined. 
As used in this subsection and in subsection (c) 
of this section, the term 'member' means a member of a Federal home 
loan bank which was a member of such bank at the end of such 
calendar year. 
"(c) The number of elective directorships designated as represent-
ing the members located in each separate State in a bank district shall 
be determined by the Board in the approximate ratio of the percentage 
of the required stock, as determined pursuant to regulation of the 
Board, of the members located in that State at the end of the calendar 
year next preceding the date of the election to the total required stock, 
as so determined, of all members of such bank at the end of such year, 
except that in the case of each State such number shall not be less than 
one and shall not be more than six. Notwithstanding any other pro-
vision of this section, if at any time the number of elective director-
ships so designated as representing the members located in any State 
would not be at least equal to the total number of elective directorships 
which, on December 31, 1960, were filled by officers or directors of 
members whose principal places of business were located in such State, 
the Board shall add to the board of directors of the bank of the district 
75 S T A T . ] 
PUBLIC LAW 87-211-SEPT. 8, 1961 
487 
in which such State is located such number of elective directorships, 
and shall so designate the directorship or directorships thus added, 
that the number of elective directorships designated as representing 
the members located in such State will equal said total number. Any 
elective directorship so added shall exist only until the expiration of its 
first term. The Board shall, with respect to each member of a 
Federal home loan bank, designate the State in the district of such 
bank in which such member shall, for the purposes of this subsection 
and subsection (b) of this section, be deemed to be located, and may 
from time to time change any such designation, but if the principal 
place of business of any such member is located in a State of such 
district it shall be the duty of the Board to designate such State as 
the State in which such member shall, for said purposes, be deemed 
to be located. As used in the second sentence of this subsection, the 
term 'total number of elective directorships' means the total number 
of elective directorships on the board of directors of the bank of the 
district in which such State was located on December 31, 1960, and 
the term 'members' where used for the second time in such sentence 
means members of such bank. 
"(d) The term of each elective directorship shall be two years and 
the term of ench appointive directorship shall be four years. If any 
person, before or after, or partly before and partly after, the date of 
the enactment of this sentence, has been elected to each of three con-
secutive full terms as an elective director of a Federal home loan 
bank in any elective directorship or elective directorships and has 
served for all or part of each of said terms, such person shall not be 
eligible for election to an elective directorship of such bank for a term 
which begins earlier than two years after the expiration of the last 
expiring of said three terms. The Board is hereby authorized to pre-
scribe such rules and regulations as it may deem necessary or appro-
priate for the nomination and election of directors of Federal home 
loan banks, including, without limitation on the generality of the 
foregoing, rules and regulations with respect to the breaking of ties 
and with respect to the inclusion of more than one directorship on a 
single ballot and the methods of voting and of determining the results 
of voting in such cases. 
"(e) Each term, outstanding on the effective date of the amendment 
to this section abolishing the division of elective directors into classes, 
of an elective or appointive directorship then existing shall continue 
until its original date of expiration, and any elective or appointive 
directorship in existence on said date shall continue to exist to the 
same extent as if it had been established by or under this section 
on or after said date. The Board in its discretion may shorten the 
next succeeding term of any such elective directorship to one year, 
and may fill such term by appointment. The term 'States' or 'State' 
as used in this section shall mean the States of the Union and the 
District of Columbia. 
"(f) In the event of a vacancy in any appointive or elective director-
ship, such vacancy shall be filled through appointment by the Board 
for the unexpired term: Provided^ That if any director shall cease 
to have the qualifications set forth in subsection (a), or if any elective 
director shall cease to have any qualification set forth in this section, 
the office held by such director shall immediately become vacant, but 
such director may continue to act as such director until his successor 
assumes the vacated office or the term of such office expires, whichever 
shall first occur. 
"(g) The Board shall designate one of the directors of each bank 
to be chairman, and one to be vice chairman, of the board of directors 
of such bank. 
Member. 
Designation of 
State location. 
Definitions. 
Directorsihips. 
Tenure. 
Rules 
lations. and regu-
"S t a t 
•'State.'» 
Vacancies. 
Chairman and 
vie e c h al rm a n, 
designation. 
488 
PUBLIC LAW 87-212-SEPT. 8, 1961 
[75 ST A T . 
Initial appoint-
ments. 
47 Stat. 735. 
12 u s e 1432. 
Effective date. 
"(h) If at any time when nominations are required members shall 
hold less than $1,000,000 of the capital stock of the Federal home loan 
bank, the Board shall appoint a director or directors to fill the place 
pr places for which such nominations are required, and the Board may, 
prior to the filing of the certificate mentioned in section 12, appoint 
directors who shall be respectively designated by it as appointive 
directors and as elective directors, in accordance with the provisions 
of this section." 
SEC. 2. The amendment made by this Act shall take effect on the 
second day of the first calendar year which begins after the date of 
enactment of this Act. 
Approved September 8, 1961. 
Septembers, 1961 
[H. R. 7934] 
Public Law 87-212 
AN ACT 
To authorize the Secretaries of the military departments to make emergency 
payments to persons who are injured or whose property is damaged as a 
result of aircraft or missile accidents, and for other purposes. 
Armed Forces. 
Aircraft and mis-
sile accidents. 
70A Stat. 152. 
10 u s e 
2 7 3 1-
2735. 
74 Stat. 878. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ That chapter 163 of 
title 10, United States Code, is amended— 
(1) by adding the following new section at the end thereof: 
"§2736. Property loss; personal injury or death: incident to air-
craft or missile operation 
"(a) Under such regulations as the Secretary of a military depart-
ment may prescribe, payment of an amount not in excess of $1,000 may 
be made in advance of the submission of a claim to or for any person, 
or his legal representatives, who was injured or killed, or whose 
property was damaged or lost, as the result of an accident involving 
an aircraft or missile under the control of that department for which 
allowance of a claim is authorized by law. Payments under this 
subsection are limited to those which would otherwise be payable under 
section 2733 or 2734 of this title or section 715 of title 32. 
"(b) Any amount paid under subsection (a) shall be deducted from 
any amount that may be allowed under any other provision of law to 
the person, or his legal representative, for injury, death, damage, or 
loss attributable to the accident concerned. 
"(c) So far as practicable, regulations prescribed under this section 
shall be uniform for the military departments, 
"(d) Payment of an amount under subsection (a) is not an admis-
sion by the United States of liability for the accident concerned."; and 
(2) by adding the following new item at the end of the analysis: 
"2736. Property loss; personal injury or death: incident to aircraft or missile 
operation." 
Approved September 8, 1961. 
September 8, 1961 
[H. R.566] 
Public Law 87-213 
AN ACT 
Authorizing the establishment of a national historic site at Fort Davis, JefC 
l>avis County, Texas. 
Be it enacted hy the Senate and House of Representatives of the 
Fort Da vi 8 Na- United Sttttcs of America in Congress assembled, That the Secretary 
of the Interior shall acquire, on behalf of the United States, by gift, 
tional 
H i s t o r i c 
Site, Tex.