deposits accepted from member institutions and from other Federal Home Loan Banks.

OPERATIONS

The Federal Home Loan Banks implement the responsibility of Congress and the Board in the fields of savings and housing finance by providing appropriate financing to their members as a supplement to savings flows in meeting recurring variations in the supply of and demand for residential mortgage credit. Such financing, within the context of national housing goals, aids in stabilizing those sectors of the housing and mortgage markets served by the savings and loan industry. The Banks also provide a wide range of

services to member institutions including automated demand deposit and checking services, on-line data processing of mortgage and savings accounts, time deposit and securities safekeeping facilities, economic research, and investment management services.

The Banks are authorized to perform their debt marketing operations, liquidity portfolio management, and financial forecasting, through the Office of Finance located in Washington. D.C. The Office also coordinates financial planning for the Bank System.

ELIGIBLE INSTITUTIONS

The types of institutions eligible to become members of the Federal Home Loan Banks are savings and loan, building and loan and homestead associations, savings and cooperative banks, and insurance companies. Every Federal savings and loan association is required to become a member of its regional Federal Home Loan Bank, and to qualify for insurance of deposit accounts (see Federal Savings and Loan Insurance Corporation).

POWER TO BORROW

Consolidated Federal Home Loan Bank obligations, which are the joint

and several liabilities of all the Banks, are issued by the Board in the form of notes or bonds. Although the Banks are instrumentalities of the United States, such securities are not obligations of, and are not guaranteed by, the United States. In case of need the Secretary of the Treasury is authorized to purchase consolidated Federal Home Loan Bank obligations up to an aggregate amount of $4 billion outstanding at any one time. This stand-by borrowing authority has never been utilized.

Federal Savings and Loan
Associations

These associations are provided for by section 5 of the Home Owners' Loan Act of 1933 (48 Stat. 132), as amended. They are chartered and supervised by the Federal Home Loan Bank Board, and may be either new institutions or converted from Statechartered institutions upon application.

Federal Savings and Loan
Insurance Corporation

The Federal Savings and Loan Insurance Corporation was created by title IV of the National Housing Act, approved June 27, 1934 (48 Stat. 1255; 12 U.S.C. 1724, et seq.), to insure the safety of savings in thrift and homefinancing institutions.

MANAGEMENT

The operations of the Federal Savings and Loan Insurance Corporation come under the supervision of the Federal Home Loan Bank Board.

FUNCTIONS

The Corporation insures the safety of savings up to $20,000 for each qualified investor's account in an insured institution. All Federal savings and loan associations, and those State-chartered building and loan, savings and loan, homestead associations, and coopera

tive banks which apply and are approved, are insured.

DEFAULT PROCEDURE

To prevent the default of an insured institution or restore it to normal operation, the Corporation may make loans to, purchase assets of, or make a financial contribution to such an institution. In the event of a default by any insured institution, payment of each insured. account is made by the Corporation as soon as possible.

FUNDS

Income of the Corporation consists principally of premiums paid by insured institutions and interest earned on investments. Available reserves on December 31, 1973, totaled $3.4 billion. All income above expenses is transferred to reserves. The Corporation is authorized to obtain additional funds for insurance purposes from the United States Treasury not exceeding $750 million outstanding at any one time. In addition, insured associations may be required to deposit up to 1 percent of their savings capital with the Corporation. These borrowing and deposit authorities have never been exercised.

RETIREMENT OF CAPITAL STOCK

The capital stock of the Corporation, originally issued in the amount of $100 million and formerly held by the United States Treasury, has now been completely retired.

Federal Savings and Loan
Advisory Council

The Federal Savings and Loan Advisory Council is an independent statutory advisory body which consults with the Federal Home Loan Bank Board in its administration of the Federal Home Loan Bank System, the Federal Savings and Loan Insurance Corporation, and the Federal Savings

and Loan System. Meeting in Washington three or more times yearly, the Council initiates recommendations and requests information on matters within the jurisdiction of the Board.

The Council consists of 18 members one elected from each Federal Home Loan Bank District and six appointed by the Federal Home Loan Bank Board annually. The elected members are generally chosen from the ranks of active savings and loan managers. The appointed members are chosen on the basis of leadership in the home-financing and building industries.

Sources of Information

PUBLICATIONS

The Journal of the FHLBB, published monthly, may be obtained by writing to the Superintendent of Documents. Government Printing Office, Washington, D.C. 20402.

EMPLOYMENT

Contact Director of Personnel, Federal Home Loan Bank Board, 101 Indiana Avenue NW., Washington, D.C. 20552. A college recruitment program is conducted, and candidates are selected from the following civil service examinations: Junior Federal Assistant. FSEE, Mid-level, Senior-level, Accountant/Auditor, Economists, Steno

Typist.

PROCUREMENT

Contact the Director, Administration and Methods Division, Federal Home Loan Bank Board, 101 Indiana Avenue NW., Washington, D.C. 20552.

For further information, contact the Director, Office of Communications, Federal Home Loan Bank Board, 101 Indiana Avenue NW., Washington, D.C. 20552. Phone, 202-386-3157.

Approved.

THOMAS R. BOMAR, Chairman.