An Act to amend the lending and borrowing limitations applicable to national banks, to authorize the appointment of an additional Deputy Comptroller of the Currency, and for other purposes
PL 86-251 (H.R.8160), enacted 09/09/1959

73 
S T A T . ] 
PUBLIC LAW 86-251--SEPT. 9, 1959 
487 
(b) Add a clause (7) to section 3 of said Act as follows: 
"(7) procure services as authorized by the Act of August 2, 
1946 (5 U.S.C. 55a), but at rates for individuals not to exceed 
$50 per diem." 
(c) Clause (3) of section 3 of said Act is hereby amended to read 
as follows: 
"(3) erect such buildings and other structures as may be appro-
priate for the United States participation in the exposition on 
land (six and one-half acres or more and including land neces-
sary for ingress and egress) conveyed to the United States in fee 
simple and free and clear of liens and encumbrances, in consider-
ation of the participation by the United States in the exposition,' 
and without other consideration. 
In the design and construction 
of such buildings and other structures consideration, including 
consultation with the General Services Administration, shall be 
given to their utility for governmental purposes and needs after 
the close of the exposition." 
SEC. 3. (a) Section 7 of said Act is hereby amended to read as 
follows: 
"SEC. 7. There are hereby authorized to be appropriated, to remain 
available until expended, not to exceed $12,500,000 to carry out the 
provisions of this Act, including participation in the exposition." 
(b) Add a new section 8 to said Act, as follows: 
"SEC. 8. The functions authorized in this Act may be performed 
without regard to the prohibitions and limitations of the following 
laws: section 3648, Kevised Statutes, as amended (31 U.S.C. 529); 
section 3735, Revised Statutes (41 U.S.C. 13)." 
Approved September 9, 1959. 
60 Stat. 810. 
Appropr Lat ion. 
Exception. 
Public Law 86-251 
A N A C T 
September 9, 1959 
To amend the lending and borrowing limitations applicable to national banks, 
[H. R. 8160] 
to authorize the appointment of an additional Deputy Comptroller of the 
Currency, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That (a) section 
327 of the Revised Statutes (12 U.S.C. 4) is amended to read as 
follows: 
"SEC. 327. The Secretary of the Treasury shall appoint no more 
than four Deputy Comptrollers of the Currency, one of whom shall 
be designated First Deputy Comptroller of the Currency, and shall 
fix their salaries. Each Deputy Comptroller shall take the oath of 
office and give the United States a surety bond in the penalty of 
$100,000, to be approved by the Secretary of the Treasury, condi-
tioned for the faithful discharge of the duties of his office, and shall 
perform such duties as the Comptroller shall direct. 
During a va-
cancy in the office or during the absence or disability of the Comp-
troller, each Deputy Comptroller shall possess the power and perform 
the duties attached by law to the office of the Comptroller under such 
order of succession following the First Deputy Comptroller as the 
Comptroller shall direct." 
(b) The first paragraph under the heading "Treasury Department" 
and subheading "Office of the Comptroller of the Currency" in the 
first section of the Act of March 4, 1909 (35 Stat. 867; 12 U.S.C. 5), 
is repealed. 
National banks. 
Lending powers. 
D e p u t y Comp-
trollers. 
Appointment. 
Repeal. 
488 
PUBLIC LAW 86-251-SEPT. 9, 1959 
[73 ST A T . 
Obligation limi-
tation. 
48 Stat. 167. 
Obligation 
tat ion. 
limi-
(c) Section 209(b) of the Act of March 4, 1923 (42 Stat. 1467; 
12 U.S.C. 4, 6), is amended— 
(1) by striking out the first two sentences; and 
(2) by striking out "the two Deputy Comptrollers now pro-
vided for by law"" in the fifth sentence and inserting in lieu thereof 
"the Deputy Comptrollers", and by striking out the semicolon and 
all that follows in such fifth sentence and inserting in lieu thereof 
a period. 
(d) Section 326 of the Revised Statutes (12 U.S.C. 3) is amended 
by striking out "one hundred thousand dollars" and inserting in lieu 
thereof "$250,000". 
SEC. 2. Section 5202 of the Revised Statutes (12 U.S.C. 82) is 
amended by inserting after "or otherwise," the following: "plus 50 
percent of the amount of its unimpaired surplus fund,". 
SEC. 3. (a) Paragraph (6) of section 5200 of the Revised Statutes 
(12 U.S.C. 84) is amended by striking out "secured upon" and insert-
ing in lieu thereof "secured by", and by adding at the end of the para-
graph the following new sentence: "Obligations of any person, co-
partnership, association, or corporation in the form of notes or drafts 
secured by shipping documents, warehouse receipts, or other such 
documents transferring or securing title covering refrigerated or 
frozen readily marketable staples when such property is fully covered 
by insurance, shall be subject under this section to a limitation of 15 
per centum of such capital and surplus in addition to such 10 per 
centum of such capital and surplus when the market value of such 
staples securing such obligation is not at any time less than 115 per 
centum of the face amount of such additional obligation, but this 
exception shall not apply to obligations of any one person, copartner-
ship, association, or corporation arising from the same transactions 
and/or secured by the identical staples for more than six months." 
(b) Paragraph (7) of such section 5200 is amended by adding at 
the end thereof the following new sentence: "Obligations arising out 
of the discount by dealers in dairy cattle of paper given in payment 
for dairy cattle, w^hich bear a full recourse endorsement or uncondi-
tional guarantee of the seller and are secured by the cattle being sold, 
shall be subject under this section to a limitation of 15 per centum of 
such capital and surplus in addition to such 10 per centum of such 
capital and surplus." 
(c) Paragraph (8) of such section 5200 and subsection 11 (m) of 
the Federal Reserve Act (12 U.S.C. 248 (m)) are amended by striking 
out "in the form of notes". 
(d) Such section 5200 is further amended by adding at the end 
thereof the following new paragraph: 
"(13) Obligations as endorser or guarantor of negotiable or non-
negotiable installment consumer paper w^hich carries a full recourse 
endorsement or unconditional guarantee by the person, copartner-
ship, association, or corporation transferring the same, shall be sub-
ject under this section to a limitation of 15 per centum of such capital 
and surplus in addition to such 10 per centum of such capital and 
surplus: Provided^ hotvever, That if the bank's files or the knowledge 
of its officers of the financial condition of each maker of such obliga-
tions is reasonably adequate, and upon certification by an officer of the 
bank designated for that purpose by the board of directors of the 
bank, that the responsibility of each maker of such obligations has 
been evaluated and the bank is relying primarily upon each such 
maker for the payment of such obligations, the limitations of this 
section as to the obligations of each such maker shall be the sole appli-
cable loan limitation: Provided further. That such certification shall 
be in writing and shall be retained as part of the records of such 
bank." 
73 S T A T . ] 
PUBLIC LAW 86-251-SEPT. 9, 1959 
489 
SEC, 4. (a) The second sentence of section 24 of the Federal Reserve j^|^^g°^ e s t a t e 
Act (12 IJ.S.C. 371) is amended to read as follows: "A loan secured "aslstat. 273. 
by real estate within the meaning of this section shall be in the form 
of an obligation or obligations secured by a mortgage, trust deed, 
or other instrument upon real estate, which shall constitute a first lien 
on real estate in fee simple or, under such rules and regulations as 
may be prescribed by the Comptroller of the Currency, on a leasehold 
under a lease which does not expire for at least 10 years beyond the 
maturity date of the loan, and any national banking association may 
purchase any obligation so secured when the entire amount of such 
obligation is sold to the association." 
(b) (1) The third sentence of section 24 of such Act is amended 
by inserting after "and (3)" the following: "any such loan may be 
made in an amount not to exceed 75 per centum 01 the appraised value 
^°^" n.iiitation. 
of the real estate offered as security and for a term not longer than 
20 years if the loan is secured by an amortized mortgage, deed of 
trust, or other such instrument under the terms of which the install-
ment payments are sufficient to amortize the entire principal of the 
loan within the period ending on the date of its maturity, and (4)". 
(2) The third sentence of such section 24 is further amended by 
inserting before the period at the end of the third sentence a comma 
and the following: "and shall not apply to real estate loans which ^^state-guaranteed 
are fully guaranteed or insured by a State, or by a State authority for 
the payment of the obligations of which the faith and credit of the 
State is pledged, if under the terms of the guaranty or insurance 
agreement the association will be assured of repayment in accordance 
with the terms of the loan". 
(c) The third paragraph of section 24 of such Act is amended to 
read as follows: 
"Loans made to finance the construction of industrial or commer- j^c^onstruction 
cial buildings and having maturities of not to exceed eighteen months 
where there is a valid and binding agreement entered into by a finan-
cially responsible lender to advance the full amount of the bank's loan 
upon the completion of the buildings and loans made to finance the 
construction of residential or farm buildings and having maturities 
of not to exceed nine months, shall not be considered as loans secured 
by real estate within the meaning of this section but shall be classed 
as ordinary commercial loans whether or not secured by a mortgage 
or similar lien on the real estate upon which the building or buildings 
are being constructed: Provided, That no national banking association 
shall invest in, or be liable on, any such loans in an aggregate amount 
in excess of 100 per centum of its actually paid-in and unimpaired 
capital plus 100 per centum of its unimpaired surplus fimd. 
Notes 
representing loans made under this section to finance the construction 
of residential or farm buildings and having maturities of not to exceed 
nine months shall be eligible for discount as commercial paper within 
the terms of the second paragraph of section 13 of this Act if accom-
panied by a valid and binding agreement to advance the full amount 
of the loan upon the completion of the building entered into by an 
individual, partnership, association, or corporation acceptable to the 
discounting bank." 
(d) Section 24 of such Act is further amended by adding at the 
1
2 use 371. 
end thereof the following new paragraph: 
"Loans made to manufacturing and industrial businesses where the ^^^° m m erelai 
association looks for repaj^ment out of the operations of the borrow- °""^" 
er's business, relying primarily on the borrower's general credit 
standing and forecast of operations, with or without other security, 
490 
PUBLIC LAW 86-252-SEPT. 9, 1959 
[73 ST A T . 
but wisRes to take a mortgage on the borrower's real estate as a pre-
caution against contingencies, shall not be considered as real estate 
loans within the meaning of this section but shall be classed as ordi-
nary commercial loans." 
Approved September 9, 1959. 
September 9, 1959 
[H. R. 6939] 
Public Law 86-252 
AN ACT 
To repeal the Act of October 20, 1914 (38 Stat. 741), as amended (48 U.S.C., 
sees. 432-452), and for other purposes. 
Alaska, 
C o a l 
leasing. 
Be it enacted by the Senate and House of Representatives 
of the 
lands. United States of America m Congress asserribled^ That the Act en-
titled "An Act to provide for the leasing of coal lands in the Territory 
of Alaska, and for other purposes", approved October 20, 1914 (38 
Stat. 741), is repealed. 
SEC. 2. The first sentence of section 2 of the Act of February 25, 
1920 (41 Stat. 437, 438), as amended (30 U.S.C, sec. 201), is further 
amended by the deletion of the words "outside of the Territory of 
Ahiska,". 
Approved September 9, 1959. 
September 9, 1959 
[H. R. 6118] 
Public Law 86-253 
AN ACT 
To amend section 4 and section 6 of the Act of September 11, 1957. 
u.s 
8 use 1182c 
66 Stat. 182. 
8 use 1182. 
Be it enacted hy the Senate and House of Representatives 
of the 
la^^^*"^' *"^®''*^"' United States of America in Congress assembled^ That section 6 of 
Admission to the Act of September 11, 1957 (71 Stat. 640) is hereby amended to 
read as follows: 
"SEC. 6. Notwithstanding the provisions of section 212(a)(6) of 
the Immigration and Nationality Act as far as they relate to aliens 
afflicted with tuberculosis, any alien who (A) is the spouse or child, 
including the minor unmarried adopted child, of a United States 
citizen, or of an alien lawfully admitted for permanent residence, or 
of an alien who has been issued an immigrant visa, or (B) has a son 
or daughter who is a United States citizen or an alien lawfully ad-
mitted for permanent residence or an alien who has been issued an 
immigrant visa, shall, if otherwise admissible, be issued a visa and 
admitted to the United States for permanent residence in accordance 
with such terms, conditions, and controls, if any, including the giving 
of a bond, as the Attorney General, in his discretion, after consulta-
tion with the Surgeon General of the United States Public Health 
Service, may by regulations prescribe. 
No visa shall be issued under 
the authority of this section after June 30,1961." 
SEC. 2. Section 4(a) and (b) of the Act of September 11, 1957, 
(71 Stat. 639-640) is hereby amended to read as follows: 
"SEC. 4. (a) On or before June 30, 1960, special nonquota immi-
grant visas may be issued in accordance with the provisions of sub-
section (b) of this section to eligible orphans as therein defined who 
are under fourteen years of age at the time the visa is issued. 
Not 
more than two such special nonquota immigrant visas may be issued 
to eligible orphans adopted or to be adopted by any one United States 
citizen and spouse, unless necessary to prevent the separation of 
brothers or sisters. No natural parent of any such eligible orphan 
E 1 
phans 
Special 
extension 
g i b le