An Act to extend for 2 years the authority for more flexible regulation of maximum rates of interest or dividends, higher reserve requirements, and open market operations in agency issues.
PL 90-505 (S.3133), enacted 09/21/1968

856 
PUBLIC LAW 90-505-SEPT. 21, 1968 
[82 STAT. 
Public Law 90-505 
September21, 1968 
[S.3133] 
AN ACT 
To extend for one year the authority to limit the rates of interest or dividends 
payable on time and savings deposits and accounts, and for other purposes. 
Interest and 
dividends. 
Controls, ex-
tension. 
81 Stat. 226-
12 use 461 
note. 
Repeal. 
80 Stat. 824. 
48 Stat. 180. 
38 Stat. 264; 
80 Stat. 825. 
12 u s e 355. 
48 Stat. 7. 
Liquidity 
requirements, 
64 Stat. 257. 
12 use 1425a. 
48 Stat. 1255. 
12 u s e 1724. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled,, 
SECTION 1. Section 7 of the Act of September 21, 1966 (Public Law 
89-597; 80 Stat. 823) is amended to read: 
"SEC. 7. Effective September 22,1969— 
"(1) so much of section 19(j) of the Federal Reserve Act (12 
U.S.C. 371b) as precedes the third sentence thereof is amended 
to read as it would without the amendment made by section 2(c) 
of this Act; 
"(2) the second and third sentences of section 18(g) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1828(g)) are amended to 
read «.s they would without the amendment made by section 3 of 
this Act; and 
"(3) section 5B of the Federal Home Loan Bank Act (12 
U.S.C. 1425b) is repealed." 
SEC. 2. (a) The first sentence of section 19(j) of the Federal Re-
serve Act (12 U.S.C. 37lb) is amended by changing "limit by r e f -
lation" to read "prescribe rules governing the payment and advertise-
ment of interest on deposits, including limitations on". 
(b) The second sentence of section 18(g) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(g)) is amended by changing "limit by 
regulation" to read "prescribe rules governing the payment and adver-
tisement of interest on deposits, including limitations on". 
(c) The first sentence of section 5B of the Federal Home Loan 
Bank Act (12 U.S.C. 1425b) is amended by changing "limit by r e f -
lation" to read "prescribe rules governing the payment and advertise-
ment of interest or dividends on deposits, shares, or withdrawable 
accounts, including limitations on". 
SEC. 3. (a) The first sentence of the eighth full paragraph of section 
13 of the Federal Reserve Act (12 U.S.C. 347) is amended by insert-
ing ", or secured by such obligations as are eligible for purchase under 
section 14(b) of this Act" immediately before the period at the end 
thereof. 
(b) The first sentence of the last full paragraph of such section (12 
U.S.C. 347c) is amended by inserting "or by any obligation which is 
a direct obligation of, or fully guaranteed as to principal and interest 
by, any agency of the United States" immediately before the period 
at the end thereof. 
SEC, 4. Section 5A of the Federal Home Loan Bank Act is amended 
to read as follows: 
"SEC. 5A. (a) The purpose of this section is to provide a means for 
creating meaningful and flexible liquidity in savings and loan associa-
tions and other members which can be increased when mortgage money 
is plentiful, maintained in easily liquidated instruments, and reduced 
to add to the flow of funds to the mortgage market in periods of credit 
stringency. More flexible liquidity will help support two main pur-
poses of the Federal Home Loan Bank Act—sound mortgage credit 
and a more stable supply of such credit. 
"(b) Any instiitution which is a member or which is an insured 
institution as defined in section 401(a) of the National Housing Act 
shall maintain the aggregate amount of its assets of the following 
types at not less than such amount as, in the opinion of the Board, is 
appropriate: (1) cash, (2) to such extent as the Board may approve 
Amount. 
Classification. 
Penalty assess-
ment. 
82 STAT. ] 
PUBLIC LAW 90-505-SEPT. 21, 1968 
857 
for the purposes of this section, time and savings deposits in Federal 
Home Loan Banks and commercial banks, and (3) to such extent as the 
Board may so approve, such obligations, including such special obliga-
tions, of the United States, a State, any territory or possession of the 
United States, or a political subdivision, agency, or instrumentality of 
any one or more of the foregoing, and bankers' acceptances, as the 
Board may approve. The requirement prescribed by the Board pur-
suant to this subsection (hereinafter in this section referred to as the 
'liquidity requirement') may not be less than 4 per centum or more 
than 10 per centum of the obligation of the institution on withdrawable 
accounts and borrowings payable on demand or with unexpired 
maturities of one year or less or, in the case of institutions which are 
insurance companies, such other base or bases as the Board may deter-
mine to be comparable. 
"(c) The amount of any institution's liquidity requirement, and 
any deficiency in compliance therewith, shall be calculated as the 
Board shall prescribe. The Board may prescribe different liquidity 
requirements, within the limitations specified herein, for different 
classes of institutions, and for such purposes the Board is authorized 
to classify institutions according to type, size, location, rate of with-
drawals, or, without limitation by or on the foregoing, on such other 
basis or bases of differentiation as the Board may deem to be reasonably 
necessary or appropriate for effectuating the purposes of this section. 
"(d) For any deficiency in compliance with the liquidity require-
ment, the Board may, in its discretion, assess a penalty consisting of 
the payment by the mstitution of such sum as may be assessed by the 
Board but not in excess of a rate equal to the highest rate on advances 
of one year or less, plus 2 per centum per annum, on the amount of 
the deficiency for the period with respect to which the deficiency 
existed. Any penalty assessed under this subsection against a member 
sliall be paid to the Federal Home Loan Bank of which it is a member, 
and any such penalty assessed against an insured institution which is 
not a member shall be paid to the Federal Savings and Loan Insurance 
Corporation. The right to assess or to recover, or to assess and recover, 
any such penalty is not abated or affected by an institution's ceasing 
to be a member or ceasing to be insured. The Board may authorize or 
require that, at any time before collection thereof, and whether before 
or after the bringing of any action or other legal proceeding, the ob-
taining of any judgment or other recovery, or the issuance or levy of 
any execution or other legal process therefor, and wnth or w^ithout 
consideration, any such penalty or recovery be compromised, remitted, 
or mitigated in whole or part. The penalties authorized under this sub-
section are in addition to all remedies and sanctions otherwise available. 
"(e) Whenever the Board deems it advisable in order to enable an 
Reduction, 
institution to meet withdrawals or to pay obligations, the Board may, 
to such extent and subject to such conditions as it may prescribe, per-
mit the institution to reduce its liquidity below the minimum amount. 
Whenever the Board determines that conditions of national emer- „ Liquidity re-
, 
. 
• 
1 
T
-
» 
1 
1 
quirements, sus-
gency or unusual economic stress exist, the Board may suspend any pension in time 
part or all of the liquidity requirements hereunder for such period as °^ national emer-
the Board may prescribe. Any such suspension, unless sooner termi- ^^"''^ 
nated by its terms or by the Board, shall terminate at the expiration 
of ninety days next after its commencement, but nothing in this sen-
tence prevents the Board from again exercising, before, at, or aftei 
any such termination, the authority conferred by this subsection. 
"(f) The Board is authorized to issue such rules and regulations, la^o^^g! fnvesu^-'' 
including definitions of terms used in this section, to make such exami- gations' by'eoard 
nations, and to conduct such investigations as it deems necessary or 
appropriate to effectuate the purposes of this section. The reasonable 
cost of any such examination or investigation, as determined by the 
858 
PUBLIC LAW 90-505-SEPT. 21, 1968 
[82 STAT. 
80 Stat. 1044. 
12 u s e 1730. 
48 Stat. 132; 
79 Stat. 507. 
12 u s e 1464. 
Ante, 
p. 856. 
Additional pre-
liums. 
75 Stat. 483. 
"Net account 
increase." 
75 Stat. 482. 
12 u s e 1426. 
Board, shall be paid by the institution. In connection with any such 
examination or investigation the Board has the same functions and 
authority that the Federal Savings and Loan Insurance Corporation 
has under subsection (m) of section 407 of the National Housing Act, 
and for purposes of this subsection the provisions of said subsection 
(m), including the next to last sentence but not including the last sen-
tence, and the provisions of the first sentence of subsection (n) of that 
section are applicable in the same manner and to the same extent that 
they would be applicable if all references therein to the Corporation 
were also references to the Board and all references therein to that 
section or any part thereof were also references to this section." 
SEC. 5. Section 5(c) of the Home Owners' Loan Act of 1933 is 
amended by inserting immediately before the last paragraph thereof 
the following new paragraph: 
"Any such association may invest in any investment which, at the 
time of the making of the investment, is an asset eligible for inclusion 
toward the satisfaction of any liquidity requirement imposed on the 
association pursuant to section 5A of the Federal Home Loan Bank 
Act, but only to the extent that the investment is permitted to be 
so included under regulations issued by the Board pursuant to that 
section, or is otherwise authorized." 
^SEC. 6. (a) Section 404(d) of the National Housing Act (12 U.S.C. 
1727 (d)) is amended to read as follows: 
"(d) (1) Except as otherwise provided in this section, each insured 
institution shall pay to the Corporation, with respect to any calendar 
year in which it has a net account increase (as defined in paragraph (2) 
of this subsection), at such time and in such manner as the Corporation 
shall by regulations or otherwise prescribe, an additional premium 
(referred to in this subsection as the 'additional premium') in the 
nature of a prepayment with respect to future premiums of the institu-
tion under subsection (b) of this section. Any additional premium, 
when paid, shall be credited to the secondary reserve. 
"(2) The 'net account increase', if any, for any insured institution 
wdth respect to any calendar year is equal to the amount, if any, by 
which the total of all accounts of its insured members at the end of 
that year exceeds the largest of the following: 
"(A) the total of all accounts of its insured members at the 
close of the most recent day, if any, after 1965 on which it became 
an insured institution. 
"(B) the total of all accounts of its insured members at the close 
of the year in which it most recently became an insured institution, 
or at the close of 1966, whichever is later. 
"(C) the largest total of all accounts of its insured members at 
the close of any year after the most recent year referred to in 
subparagraph (B). 
"(3) The additional premium, if any, for any institution with 
respect to any calendar year shall be equal to 2 per centum of its net 
account increase, computed in accordance with paragraph (2) of this 
subsection, less an amount equal to any requirement, as of the end of 
that year, for the purchase of Federal Home Loan Bank stock in 
accordance with section 6(c) of the Federal Home Loan Bank Act and 
without regard to any net increase during that year in its holdings of 
such stock, except that the additional premium for any institution for 
the first calendar year following the calendar year in which it becomes 
an insured institution shall not be less than 1 per centum of its net 
account increase for the year in which it becomes an insured institution. 
The Federal Home Loan Bank Board shall by regulations or otherwise 
provide for the furnishing to the Corporation of all necessary informa-
tion with respect to Federal Home Loan Bank stock. 
Effective date. 
82 STAT. ] 
PUBLIC LAW 90-506-SEPT. 21, 1968 
859 
"(4) The Corporation may provide, by regulation or otherwise, for aj^Tsfment o'f" a 
the adjustment of payments made or to be made under this subsection ments. 
and subsections (b) and (c) of this section in cases of merger or con-
solidation, transfer of bulk assets or assumption of liabilities, and 
similar transactions, as defined by the Corporation for the purposes of 
this paragraph." 
(b) The amendment made by subsection (a) of this section shall be 
effective only with respect to additional premiums due with respect to 
calendar years beginning after 1968. 
Approved September 21, 1968. 
Public Law 90-506 
A N A C T 
September21, 196J 
To provide for the disposition of funds appropriated to pay a judgment in favor 
[H.R. I621I] 
of the Creek Nation of Indians in Indian Claims Commission docket numbered 
276, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Gon.gress assemhled^ That (a) the Secre- j^gj^'^^^"^' ^^^^^ 
tary of the Interior shall prepare a roll of the Creek Indians who meet 
judgment funds, 
the following requirements: (1) they were born on or prior to and liv- disposition. 
ing on the date of this Act, and (2) their names or the names of lineal 
ancestors through whom eligibility is claimed appear on either the 1857 
or 1859 payment roll prepared pursuant to Article VI of the Treaty of 
August 7,1856 (11 Stat. 699), or on the Final Roll of Creeks by Blood 
closed as of March 4,1907, pursuant to statute. 
(b) Applications for enrollment shall be filed with the Area Direc-
tor, Bureau of Indian Affairs, Muskogee, Oklahoma, in the manner, 
within the time limit, and on the form prescribed for that purpose. 
The determination of the Secretary of the eligibility for enrollment of 
Eligibility. 
an applicant shall be final. 
SEC. 2. All costs incident to carrying out the provisions of this Act 
shall be paid by appropriate withdrawals from the judgment funds 
referred to in this section. After deducting attorney fees and all other 
Equal shares, 
costs, the remainder of the funds, including interest, to the credit of 
the Creek Nation appropriated by the Act of Octdber 27,1966 (80 Stat. 
1057), shall be distributed in equal shares to those persons whose names 
appear on the roll prepared in accordance with section 1 of this Act. 
The funds so distributed shall not be subject to Federal or State 
'^^'^ exemption. 
income taxes. 
SEC. 3. The Secretary shall distribute a share payable to a living 
enroUee directly to such enrollee or in such manner as is deemed by the 
Secretary to be in the enrollee's best interest and the per capita share 
of a deceased enrollee shall be paid to his heirs or legatees upon proof 
of death and inheritance satisfactory to the Secretary, whose findings 
upon such proof shall be final and conclusive. Sums payable to enrollees 
or their heirs or legatees who are less than twenty-one years of age or 
who are under legal disability shall be paid to the persons whom the 
Secretary of the Interior determines will best protect their interests. 
SEC. 4. The Secretary of the Interior is authorized to prescribe rules ^
^
f
'
^
^
"
^ deadline 
and regulations to carry out the provisions of this Act, including an -
appropriate deadline for filing applications for enrollment. 
Approved September 21, 1968. 
Heirs of de-
ceased enrollees.