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1974/12/26 SJR263 Depository Insurance and Minting of Coins
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1974/12/26 SJR263 Depository Insurance and Minting of Coins
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The original documents are located in Box 16, folder "1974/12/26 SJR263 Depository
Insurance and Minting of Coins" of the White House Records Office: Legislation Case
Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
Digitized from Box 16 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED DEC
ACTION
THE WHITE HOUSE
Last Day: December 27
WASHINGTON
December 23, 1974
Posted
Colorado
MEMORANDUM FOR
THE PRESIDENT
FROM:
KEN COLE
12/30
SUBJECT:
Enroiled Resolution S.J. Res. 263
Depository Insurance and Minting of Coins
Attached for your consideration is S.J. Res. 263, sponsored
by Senator Sparkman, which:
-- Corrects certain statutory inconsistencies with
respect to the insurance of public deposits;
-- authorizes the Federal National Mortgage Association
to purchase mortgages made to private nonprofit
corporations;
-- increases the authorized number of public interest
directors of Federal Home Loan Banks;
-- authorizes an additional year for minting of
Bicentennial coins; and
-- provides for the continued duration and expanded
membership of the Federal Savings and Loan Advisory
Council.
OMB recommends approval and provides you with additional
background information in its enrolled bill report (Tab A).
Max Friedersdorf and Phil Areeda both recommend approval.
RECOMMENDATION
That you sign S.J. Res. 263 (Tab B)
FORD LIBARRY
OPPROVED
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 2 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Resolution S.J. Res. 263 - Depository
insurance and minting of coins
Sponsor - Sen. Sparkman (D) Alabama
Last Day for Action
December 27, 1974 - Friday
Purpose
Corrects certain statutory inconsistencies with respect to the
insurance of public deposits; authorizes the Federal National
Mortgage Association to purchase mortgages made to private
nonprofit corporations; increases the authorized number of public
interest directors of Federal Home Loan Banks; authorizes an
additional year for minting of Bicentennial coins; and provides
for the continued duration and expanded membership of the
Federal Savings and Loan Advisory Council.
Agency Recommendations
Office of Management and Budget
Approval
Federal Home Loan Bank Board
Approval (Sections
1, 2 and 6)
Department of the Treasury
Approval (Sections
4 and 5)
Board of Governors of the Federal
Reserve System
No objection (Informally)
Federal Deposit Insurance Corporation
No objection
Department of Housing and Urban
Development
No objection (Informally)
STATE FORD LIBRARY
2
Discussion
The enrolled joint resolution contains essentially five provisions,
three of which were requested by the Federal Home Loan Bank Board;
one of which was requested by the Treasury Department; and one
which was neither requested nor opposed by any executive agency.
Provisions Requested by the
Federal Home Loan Bank Board
Correction of inconsistencies regarding insurance of public
accounts (Section 1) - Public Law 93-495 (H.R. 11221) authorized
deposit insurance for public units to be increased from $20,000
to $100,000 per account. However, Guam and its political sub-
divisions were inadvertently excluded in the definitional section
relating to the geographical areas in which the Federal Savings
and Loan Insurance Corporation (FSLIC) could insure public accounts
in savings and loan associations. In contrast, the same legislation
extended the new $100,000 limit to public unit accounts of Guam
deposited in banks insured by the Federal Deposit Insurance
Corporation (FDIC).
S.J. Res. 263 would resolve this unequal treatment between banks
and savings and loan associations by extending the $100,000
insurance limit to public funds of Guam deposited in FSLIC-insured
institutions.
As a second inconsistency of Public Law 93-495, the FDIC was
specifically authorized to define the terms used in the new
provision relating to public funds, while the FSLIC was not so
authorized.
S.J. Res. 263 would give the FSLIC that definitional authority.
Increased number of Federal Home Loan Bank directors (Section 3) --
This section would increase the authorized number of members of
each Federal Home Loan Bank's board of directors from 12 to 14,
in order for the Federal Home Loan Bank Board (FHLBB) to appoint
six public interest directors instead of four.
The intended effect of this provision is to make the Federal Home
Loan Banks' boards of directors representative of a broader range
of non-thrift industry views. The change would put the FHLBB
system on a par with the Federal Reserve System, in the sense
that a majority of the directors of each Federal Reserve Bank is
selected from outside the banking industry.
Section 3 would also permit a Federal Home Loan Bank having juris-
diction over five or more States to have appointive directors up
to three-fourths (instead of one-half, as at present) of the number
of elective directors, if the FHLBB so authorizes by regulation.
LIBRARY
3
Continued duration and increased membership of the Federal
Savings and Loan Advisory Council (Section 6) -- The enrolled
joint resolution would assure the continued duration of the
Federal Savings and Loan Advisory Council (FSLAC) beyond
January 6, 1975 by amending section 8a of the Federal Home Loan
Bank Act, which created the FSLAC but did not specify its
duration.
Section 14 (a) of the Federal Advisory Committee Act provides
that advisory committees established by statute prior to the
effective date of the Act (such as the FSLAC) shall terminate on
January 6, 1975, unless their continuation is otherwise provided
for by law. Section 6 of the enrolled joint resolution would
remove any doubt as to the FSLAC's continued existence beyond
next January 6 in the absence of additional legislation. It
would provide for the FSLAC to continue in existence as long as
the FHLBB biannually determines it to be in the public interest,
subject to consultation with the Director of OMB.
The Committee Management Secretariat indicated no objection to
continuing the FSLAC in this manner.
Section 6 would also increase the number of public interest
representatives comprising the FSLAC's membership, from six to
twelve. The other twelve members would continue to be elected
by the Federal Home Loan Banks, as at present.
Provision Requested by the Treasury Department
Extension of period for minting Bicentennial coins (Sections 4
and 5) -- Public Law 93-127 provides that all dollar, half-dollar,
and quarter-dollar coins minted for issuance on or after July 4,
1975, shall bear a design to be emblematic of the U.S. Bicentennial.
It further requires that the coins in these three denominations
issued between July 4, 1975 and January 1, 1977 bear the inscrip-
tion "1776-1976" instead of the regular coinage date. Finally,
the Act requires the Secretary of the Treasury to mint prior to
July 4, 1975, for issuance on and after that date, 45 million
silver-clad alloy coins commemorating the U.S. Bicentennial.
An unexpected surge in coinage demand throughout this country
during the past year has made it impossible for the Mint to
strike the number of Bicentennial coins within the time allotted
in Public Law 93-127.
4
S.J. Res. 263 would resolve this problem by:
-- granting the Secretary of the Treasury stand-by
authority to continue until December 31, 1975,
minting for issuance dollars, half-dollars, and
quarter-dollars bearing the current design and
regular coinage date, along with the Bicentennial
coins of those denominations; and
-- extending the statutory deadline of July 4, 1975
to July 4, 1976 for minting the 45 million silver-
clad coins, leaving the time frame for their
issuance to the discretion of the Secretary of
the Treasury.
Provision not Opposed by the Administration
Expanding FNMA authority to purchase mortgages (Section 2) --
Under the medical facilities construction and modernization
amendments, HEW is authorized to make loans to public agencies
and loan guarantees to private agencies for modernization or
construction of hospitals. The Federal National Mortgage
Association (FNMA) is authorized to purchase the mortgages cover-
ing loans made to public agencies, but not to purchase the mort-
gages made to private nonprofit agencies.
Section 2 would authorize the FNMA to purchase mortgages made
to private nonprofit corporations.
H. Romard
Assistant Director for
Legislative Reference
Enclosures
GERALD k. FORD LIBRARY
12-20-74 Adrish m.
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 2 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Resolution S.J. Res. 263 - Depository
insurance and minting of coins
Sponsor - Sen. Sparkman (D) Alabama
Last Day for Action
December 27, 1974 - Friday
Purpose
Corrects certain statutory inconsistencies with respect to the
insurance of public deposits; authorizes the Federal National
Mortgage Association to purchase mortgages made to private
nonprofit corporations; increases the authorized number of public
interest directors of Federal Home Loan Banks; authorizes an
additional year for minting of Bicentennial coins; and provides
for the continued duration and expanded membership of the
Federal Savings and Loan Advisory Council.
Agency Recommendations
Office of Management and Budget
Approval
Federal Home Loan Bank Board
Approval (Sections
1, 2 and 6)
Department of the Treasury
Approval (Sections
4 and 5)
Board of Governors of the Federal
Reserve System
No objection (Informally)
Federal Deposit Insurance Corporation
No objection
Department of Housing and Urban
Development
No objection (Informally)
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 809
Date: December 20, 1974
difection
Time:
9:30 p.m.
FOR ACTION: Tod Hullin
no
ok
cc (for information): Warren Hendriks
Geoff Shepard
Phil Areeda ok -ok
Jerry Jones
Max Friedersdorf
-
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 23
Time: noon
SUBJECT:
Enrolled Resolution S.J. REs. 263
Depository Insurance and Minting of Coins
ACTION REQUESTED:
For Necessary Action
*
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Pleaserreturn to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
FEDERAL HOME LOAN BANK BOARD
HOME LOAN BANK
WASHINGTON. D.C. 20552
FEDERAL HOME LOAN BANK
PERIENT
SYSTEM
320 FIRST STREET N.W.
FEDERAL HOME LOAN
MORTGAGE CORPORATION
FEDERAL SAVINGS & LOAN
INSURANCE CORPORATION
OFFICE OF
GENERAL COUNSEL
December 19, 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Ms. Mohr
Dear Mr. Rommel:
This is in response to your Enrolled Bill Request dated
December 16, 1974 requesting the views and recommendations
of the Bank Board on Senate Joint Resolution 263.
Section 3 of S.J. Res. 263 relates to the authority of
the Federal National Mortgage Association to assist non-profit
hospital construction, and sections 4 and 5 relate to certain
coinage authority of the Secretary of the Treasury. As these
are beyond the expertise of the Bank Board, we make no comment
thereon.
Sections 1, 2 and 6 contain, respectively, certain technical
amendments to subsection 405(d) of the National Housing Act, which
was added by P.L. 93-495 (H.R. 11221), an increase in the number
of appointed members on the boards of directors of the Federal
Home Loan Banks, and, finally, statutory continuation of the
life of the Federal Savings and Loan Advisory Council. The Bank
Board initiated these legislative proposals and wholeheartedly
supports their enactment.
Sincerely,
Charles E. allen
Charles E. Allen
General Counsel
OF
THE TREASURY THE
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON. D.C. 20220
1789
DEC 181974
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Your office has requested the views of this Department on the
enrolled enactment of S.J. Res. 263, "Amending the National Housing
Act to clarify the authority of the Federal Savings and Loan
Insurance Corporation with respect to the insurance of public
deposits, and for other purposes."
Only sections 4 and 5 of the enrolled enactment are of concern
to this Department. These sections would amend Public Law 93-127
to (1) grant to the Secretary of the Treasury stand-by authority to
continue until December 31, 1975, minting for issuance dollars,
half-dollars, and quarter-dollars bearing the current design and
regular coinage date, along with the Bicentennial coins of these
three denominations; and (2) extend from July 4, 1975 to July 4,
1976, the period during which the Mint must produce 45 million
Bicentennial silver-clad coins for issuance on and after July 4,
1975.
Sections 4 and 5 incorporate the provisions of a draft bill
prepared in this Department and forwarded to the Congress after
clearance by your office.
The Department recommends that the enrolled enactment be
approved by the President insofar as sections 4 and 5 are concerned.
Sincerely yours,
General Counsel
EDIC
FEDERAL DEPOSIT INSURANCE CORPORATION, Washington, D.C. 20429
OFFICE OF THE CHAIRMAN
December 18, 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Dear Mr. Ash:
By enrolled bill request dated December 17, 1974, your Office
requested our views and recommendation on S.J. Res. 263, 93d Congress,
an enrolled bill "Amending the National Housing Act to clarify the
authority of the Federal Savings and Loan Insurance Corporation with
respect to the insurance of public deposits, and for other purposes."
The enrolled bill would permit the Federal Savings and Loan Insurance
Corporation to define the terms used in the provision of law recently
enacted (Pub. L. 93-495) increasing the insurance limit for public
funds to $100,000 and would amend that provision to make the increased
insurance limit for public funds applicable to "any territory or
possession of the United States", which would include American Samoa
and Guam. Among other technical changes, the enrolled bill would also
increase from 12 to 14 the number of directors authorized for
Federal Home Loan banks and from four to six the number thereof to
be appointed by the Federal Home Loan Bank Board, as well as permitting
a Federal Home Loan bank having jurisdiction over five or more States
to have appointive directors up to three-fourths (instead of one-half)
of the number of elective directors, if so authorized by the FHLBB by
regulation. In addition, the bill would extend the time limit for
minting bicentennial coins and would provide for the continued
existence of the Federal Savings and Loan Advisory Council for as
long as determined to be in the public interest by the FHLBB, after
consultation with your Office and timely notice in the Federal Register,
while increasing from six to twelve the number of Council members to be
appointed by the FHLBB.
The FDIC has no direct or substantial interest in any of the largely
technical amendments contained in S.J. Res. 263 and would have no
objection to its approval by the President.
Sincerely,
Frank Wille
Frank Wille
BEWEINED
Chairman
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 809
Date: December 20, 1974
Time: 9:30 p.m.
FOR ACTION: Tod Hullin
CC (for information): Warren Hendriks
Geoff Shepard
Jerry Jones
Phil Areeda
Max Friedersdorf
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 23
Time: noon
SUBJECT:
Enrolled Resolution S.J. REs. 263
Depository Insurance and Minting of Coins
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
x
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
no objection H
12.21.74
2PM
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 809
Date: December 20, 1974
Time: 9:30 p.m.
FOR ACTION: Tod Hullin
CC (for information): Warren Hendriks
Geoff Shepard
Jerry Jones
Phil Areeda
Max Friedersdorf
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 23
Time: noon
SUBJECT:
Enrolled Resolution S.J. REs. 263
Depository Insurance and Minting of Coins
ACTION REQUESTED:
For Necessary Action
X
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
x
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
he FLANK mobela
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
For
the
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 809
Date: December 20, 1974
Time: 9:30 p.m.
FOR ACTION: Tod Hullin
CC (for information): Warren Hendriks
Geoff Shepard
Jerry Jones
Phil Areeda
Max Friedersdorf
FROM THE STAFF SECRETARY
DUE: Date: Monday, December 23
Time: noon
SUBJECT:
Enrolled Resolution S.J. REs. 263
Depository Insurance and Minting of Coins
ACTION REQUESTED:
For Necessary Action
* For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
Ok.
H.L.R fir G.C.S
PLEASE ATTACH THIS.COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
Warren K. Hendriks
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
WASHINGTON
December 23, 1974
MEMORANDUM FOR:
FROM:
WARREN MAX L. HENDRIKS FRIEDERSDORF nuf
SUBJECT:
Action Memorandum - Log No. 809
Enrolled Resolution S.J. Res. 263
Depository Insurance and Minting of Coin
The Office of Legislative Affairs concurs in the attached proposal
and has no additional recommendations.
Attachment
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 2 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Resolution S.J. Res. 263 - Depository
insurance and minting of coins
Sponsor - Sen. Sparkman (D) Alabama
Last Day for Action
December 27, 1974 - Friday
Purpose
Corrects certain statutory inconsistencies with respect to the
insurance of public deposits; authorizes the Federal National
Mortgage Association to purchase mortgages made to private
nonprofit corporations; increases the authorized number of public
interest directors of Federal Home Loan Banks; authorizes an
additional year for minting of Bicentennial coins; and provides
for the continued duration and expanded membership of the
Federal Savings and Loan Advisory Council.
Agency Recommendations
Office of Management and Budget
Approval
Federal Home Loan Bank Board
Approval (Sections
1, 2 and 6)
Department of the Treasury
Approval (Sections
4 and 5)
Board of Governors of the Federal
Reserve System
No objection (Informally)
Federal Deposit Insurance Corporation
No objection
Department of Housing and Urban
Development
No objection (Informally)
2
Discussion
The enrolled joint resolution contains essentially five provisions,
three of which were requested by the Federal Home Loan Bank Board;
one of which was requested by the Treasury Department; and one
which was neither requested nor opposed by any executive agency.
Provisions Requested by the
Federal Home Loan Bank Board
Correction of inconsistencies regarding insurance of public
accounts (Section 1) -- Public Law 93-495 (H.R. 11221) authorized
deposit insurance for public units to be increased from $20,000
to $100,000 per account. However, Guam and its political sub-
divisions were inadvertently excluded in the definitional section
relating to the geographical areas in which the Federal Savings
and Loan Insurance Corporation (FSLIC) could insure public accounts
in savings and loan associations. In contrast, the same legislation
extended the new $100,000 limit to public unit accounts of Guam
deposited in banks insured by the Federal Deposit Insurance
Corporation (FDIC).
S.J. Res. 263 would resolve this unequal treatment between banks
and savings and loan associations by extending the $100,000
insurance limit to public funds of Guam deposited in FSLIC-insured
institutions.
As a second inconsistency of Public Law 93-495, the FDIC was
specifically authorized to define the terms used in the new
provision relating to public funds, while the FSLIC was not SO
authorized.
S.J. Res. 263 would give the FSLIC that definitional authority.
Increased number of Federal Home Loan Bank directors (Section 3) --
This section would increase the authorized number of members of
each Federal Home Loan Bank's board of directors from 12 to 14,
in order for the Federal Home Loan Bank Board (FHLBB) to appoint
six public interest directors instead of four.
The intended effect of this provision is to make the Federal Home
Loan Banks' boards of directors representative of a broader range
of non-thrift industry views. The change would put the FHLBB
system on a par with the Federal Reserve System, in the sense
that a majority of the directors of each Federal Reserve Bank is
selected from outside the banking industry.
Section 3 would also permit a Federal Home Loan Bank having juris-
diction over five or more States to have appointive directors up
to three-fourths (instead of one-half, as at present) of the number
of elective directors, if the FHLBB so authorizes by regulation.
3
Continued duration and increased membership of the Federal
Savings and Loan Advisory Council (Section 6) -- The enrolled
joint resolution would assure the continued duration of the
Federal Savings and Loan Advisory Council (FSLAC) beyond
January 6, 1975 by amending section 8a of the Federal Home Loan
Bank Act, which created the FSLAC but did not specify its
duration.
Section 14 (a) of the Federal Advisory Committee Act provides
that advisory committees established by statute prior to the
effective date of the Act (such as the FSLAC) shall terminate on
January 6, 1975, unless their continuation is otherwise provided
for by law. Section 6 of the enrolled joint resolution would
remove any doubt as to the FSLAC's continued existence beyond
next January 6 in the absence of additional legislation. It
would provide for the FSLAC to continue in existence as long as
the FHLBB biannually determines it to be in the public interest,
subject to consultation with the Director of OMB.
The Committee Management Secretariat indicated no objection to
continuing the FSLAC in this manner.
Section 6 would also increase the number of public interest
representatives comprising the FSLAC's membership, from six to
twelve. The other twelve members would continue to be elected
by the Federal Home Loan Banks, as at present.
Provision Requested by the Treasury Department
Extension of period for minting Bicentennial coins (Sections 4
and 5) -- Public Law 93-127 provides that all dollar, half-dollar,
and quarter-dollar coins minted for issuance on or after July 4,
1975, shall bear a design to be emblematic of the U.S. Bicentennial.
It further requires that the coins in these three denominations
issued between July 4, 1975 and January 1, 1977 bear the inscrip-
tion "1776-1976" instead of the regular coinage date. Finally,
the Act requires the Secretary of the Treasury to mint prior to
July 4, 1975, for issuance on and after that date, 45 million
silver-clad alloy coins commemorating the U.S. Bicentennial.
An unexpected surge in coinage demand throughout this country
during the past year has made it impossible for the Mint to
strike the number of Bicentennial coins within the time allotted
in Public Law 93-127.
4
S.J. Res. 263 would resolve this problem by:
--- granting the Secretary of the Treasury stand-by
authority to continue until December 31, 1975,
minting for issuance dollars, half-dollars, and
quarter-dollars bearing the current design and
regular coinage date, along with the Bicentennial
coins of those denominations; and
-- extending the statutory deadline of July 4, 1975
to July 4, 1976 for minting the 45 million silver-
clad coins, leaving the time frame for their
issuance to the discretion of the Secretary of
the Treasury.
Provision not Opposed by the Administration
Expanding FNMA authority to purchase mortgages (Section 2) --
Under the medical facilities construction and modernization
amendments, HEW is authorized to make loans to public agencies
and loan guarantees to private agencies for modernization or
construction of hospitals. The Federal National Mortgage
Association (FNMA) is authorized to purchase the mortgages cover-
ing loans made to public agencies, but not to purchase the mort-
gages made to private nonprofit agencies.
Section 2 would authorize the FNMA to purchase mortgages made
to private nonprofit corporations.
H. Romard
Assistant Director for
Legislative Reference
Enclosures
FEDERAL HOME LOAN BANK BOARD
HOME LOAN BANK
WASHINGTON. D.C. 20552
FEDERAL HOME LOAN BANK
FEDERAL
SYSTEM
320 FIRST STREET N.W.
FEDERAL HOME LOAN
MORTGAGE CORPORATION
FEDERAL SAVINGS & LOAN
INSURANCE CORPORATION
OFFICE OF
GENERAL COUNSEL
December 19, 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Ms. Mohr
Dear Mr. Rommel:
This is in response to your Enrolled Bill Request dated
December 16, 1974 requesting the views and recommendations
of the Bank Board on Senate Joint Resolution 263.
Section 3 of S.J. Res. 263 relates to the authority of
the Federal National Mortgage Association to assist non-profit
hospital construction, and sections 4 and 5 relate to certain
coinage authority of the Secretary of the Treasury. As these
are beyond the expertise of the Bank Board, we make no comment
thereon.
Sections 1, 2 and 6 contain, respectively, certain technical
amendments to subsection 405(d) of the National Housing Act, which
was added by P.L. 93-495 (H.R. 11221), an increase in the number
of appointed members on the boards of directors of the Federal
Home Loan Banks, and, finally, statutory continuation of the
life of the Federal Savings and Loan Advisory Council. The Bank
Board initiated these legislative proposals and wholeheartedly
supports their enactment.
Sincerely,
Chartes M. allen
Charles E. Allen
General Counsel
OF
DEPARTMENT THE THE TREASURY
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
1789
DEC 1 8 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Your office has requested the views of this Department on the
enrolled enactment of S.J. Res. 263, "Amending the National Housing
Act to clarify the authority of the Federal Savings and Loan
Insurance Corporation with respect to the insurance of public
deposits, and for other purposes."
Only sections 4 and 5 of the enrolled enactment are of concern
to this Department. These sections would amend Public Law 93-127
to (1) grant to the Secretary of the Treasury stand-by authority to
continue until December 31, 1975, minting for issuance dollars,
half-dollars, and quarter-dollars bearing the current design and
regular coinage date, along with the Bicentennial coins of these
three denominations; and (2) extend from July 4, 1975 to July 4,
1976, the period during which the Mint must produce 45 million
Bicentennial silver-clad coins for issuance on and after July 4,
1975.
Sections 4 and 5 incorporate the provisions of a draft bill
prepared in this Department and forwarded to the Congress after
clearance by your office.
The Department recommends that the enrolled enactment be
approved by the President insofar as sections 4 and 5 are concerned.
Sincerely yours,
General Counsel
FEDERAL DEPOSIT INSURANCE CORPORATION, Washington, D.C. 20429
OFFICE OF THE CHAIRMAN
December 18, 1974
Honorable Roy L. Ash
Director
Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Dear Mr. Ash:
By enrolled bill request dated December 17, 1974, your Office
requested our views and recommendation on S.J. Res. 263, 93d Congress,
an enrolled bill "Amending the National Housing Act to clarify the
authority of the Federal Savings and Loan Insurance Corporation with
respect to the insurance of public deposits, and for other purposes."
The enrolled bill would permit the Federal Savings and Loan Insurance
Corporation to define the terms used in the provision of law recently
enacted (Pub. L. 93-495) increasing the insurance limit for public
funds to $100,000 and would amend that provision to make the increased
insurance limit for public funds applicable to "any territory or
possession of the United States", which would include American Samoa
and Guam. Among other technical changes, the enrolled bill would also
increase from 12 to 14 the number of directors authorized for
Federal Home Loan banks and from four to six the number thereof to
be appointed by the Federal Home Loan Bank Board, as well as permitting
a Federal Home Loan bank having jurisdiction over five or more States
to have appointive directors up to three-fourths (instead of one-half)
of the number of elective directors, if so authorized by the FHLBB by
regulation. In addition, the bill would extend the time limit for
minting bicentennial coins and would provide for the continued
existence of the Federal Savings and Loan Advisory Council for as
long as determined to be in the public interest by the FHLBB, after
consultation with your Office and timely notice in the Federal Register,
while increasing from six to twelve the number of Council members to be
appointed by the FHLBB.
The FDIC has no direct or substantial interest in any of the largely
technical amendments contained in S.J. Res. 263 and would have no
objection to its approval by the President.
Sincerely,
Frank Wille
Frank Wille
Chairman
UNITED OFFICE ED OF
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
DATE: 12-23-74
TO:
Bob Linder
FROM:
Wilf Rommel
Attached is the Fed Reserve views
letter on SJRes 263 for inclusion
in the enrolled bill file.
OMB FORM 38
REV AUG 73
BOARD OF GOVERNORS
DEPARTMENT
OF THE
OF
,BOARD
FEDERAL RESERVE SYSTEM
OF
WASHINGTON, D. C. 20551
THE
SYSTEM
ADDRESS OFFICIAL CORRESPONDENCE
RESERVE
TO THE BOARD
December 17, 1974
Mr. William D. Skidmore
Chief, Business-General
Government Branch
Office of Management and Budget
New Executive Office Building - Room 7220
17th Street and Pennsylvania Avenue, N. W.
Washington, D. C. 20503
Dear Mr. Skidmore:
This letter is in response to your request for
the views of the Federal Reserve Board on Enrolled Bill
S.J. Res. 263.
As you were advised by telephone this morning,
the staff of the Federal Reserve Board has no objections
or comments concerning this proposal.
Sincerely yours,
Murdue E. acaim
Theodore E. Allison
Secretary of the Board
BECEIVED
OF
*
HOUSING
*
THE GENERAL COUNSEL OF HOUSING AND URBAN DEVELOPMENT
AND
URBAN
WASHINGTON, D. C. 20410
December 23, 1974
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Attention: Ms. Mohr
Dear Mr. Rommel:
Subject: Senate Joint Resolution 263, 93d Congress
Enrolled Enactment
This is in response to your request for our views on the en-
rolled enactment of Senate Joint Resolution 263, an Act
"Amending the National Housing Act to clarify the authority
of the Federal Savings and Loan Insurance Corporation with
respect to the insurance of public deposits, and for other
purposes. "
This legislation consists largely of technical amendments
to existing law.
Section 1 would correct certain deficiencies in section 405
of the National Housing Act relating to the authority of the
Federal Savings and Loan Insurance Corporation to insure
public accounts in Federal savings and loan associations and
other financial institutions. The FSLIC would be authorized
to define terms relating to such insurance and to provide
full insurance with respect to public accounts of a territory
or possession of the United States (notably Guam) which are
deposited in an insured institution in such territory or
possession.
Section 2 would amend section 302 (b) (1) of the National Housing
Act so as to authorize the Federal National Mortgage Association
and the Government National Mortgage Association to purchase,
service, sell, or otherwise deal in loans which are made to
nonprofit private agencies for the modernization or construction
2
of nonprofit private hospitals or other health facilities by
non-Federal lenders and guaranteed by the Department of
Health, Education, and Welfare under part B of title VI of
the Public Health Service Act. That subsection currently
limits FNMA and GNMA, with respect to hospital and health
facility loans under HEW's title VI authority, to dealing
in loans made by HEW to public agencies for the modernization
or construction of public health centers or hospitals or
other health facilities.
Section 3 would amend section 7 (a) of the Federal Home Loan
Bank Act to increase the prescribed membership of the board
of directors of each Federal home loan bank from twelve to
fourteen members; allow the Federal Home Loan Bank Board to
appoint six (rather than the present four) of the members
of each bank's board of directors; and alter the allowed
ratio of elective to appointive members on each bank's board.
Sections 4 and 5 would amend Public Law 93-127, which relates
to the minting of special coins to commemorate the approaching
Bicentennial of the American Revolution, to authorize additional
time for the minting of such coins.
Section 6 would amend section 8a of the Federal Home Loan
Bank Act to authorize continuation of the Federal Savings and
Loan Advisory Council.
This Department has no objection to the seemingly non-
controversial provisions contained in sections 1, 3, 4, 5,
and 6 of the measure, but would defer to the judgments of
other interested agencies and instrumentalities, notably the
Department of the Treasury and the Federal Home Loan Bank
System, as to their relative merits.
As to section 2, we see no strong reason not to expand the
FNMA/GNMA authority in the manner contemplated. However, we
would note two points for your consideration. First, an
increase in the dollar volume of FNMA/GNMA activities is
obviously contemplated. Any such increase would heighten
3
the demands ultimately made by those institutions on the
nation's capital markets. Second, the provision would
expand authority which is basically unrelated to the prime
purpose of FNMA/GNMA assistance, i.e., to assist housing.
Nevertheless, we do not view the provision as being subject
to strong objection because of the limited volume of activity
likely to be involved.
Accordingly, we have no objection to the President approving
the measure.
Sincerely,
Robert R. Elliott
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1322
CLARIFYING AMENDMENTS TO THE NATIONAL
HOUSING ACT
DECEMBER 11, 1974.-Ordered to be printed
Mr. SPARKMAN, from the Committee on Banking, Housing and Urban
Affairs, submitted the following
REPORT
[To accompany S.J. Res. 263]
The Committee on Banking, Housing and Urban Affairs, having
considered the same, favorably reports a Committee Senate Joint
Resolution, (S.J. Res. 263), amending the National Housing Act to
clarify the authority of the Federal Savings and Loan Insurance
Corporation with respect to the insurance of public deposits, and for
other purposes, and recommends that the Senate joint resolution do
pass.
PURPOSE OF THE RESOLUTION
TECHNICAL FSLIC AMENDMENTS
The Committee has been advised that Public Law 93-495 (H.R.
11221) approved October 28, 1974, contains two inconsistencies be-
tween the authority of the Federal Savings and Loan Corporation
(FSLIC) and the Federal Deposit Insurance Corporation (FDIC)
which were not intended when the measure was considered by the
Congress. The inconsistencies are of technical nature. The Committee
Resolution seeks to correct these inconsistencies.
The first inconsistency relates to the insurance of public funds de-
posits in Guam.
Section 101 (b) (3) of Public Law 93-495 added a new subsection
(d) to section 405 of the National Housing Act providing with respect
to insurance of accounts by the FSLIC that in the case of an officer,
employee, or agent of specified public units, "the account of such in-
sured member shall be insured in an amount not to exceed $100,000
per account". In specifying the public units eligible for such insurance,
the new subsection follows, up to a point, the pattern set in section
401 (b) of the National Housing Act (which defines a custodian of a
public unit account as an "insured member") by referring to the
United States, any State of the United States, the District of Colum-
bia, Puerto Rico, the Virgin Islands, and political subdivisions
thereof. However, Guam is covered under the definitional section 401
(b) as a "territory," but the new subsection does not mention terri-
38-010
2
3
tories or possessions of the United States. Thus the new amendment
modernization and construction of health facilities, the Congress
fails to extend this increased FSLIC insurance protection to deposits
passed the Medical Facilities Construction and Modernization Amend-
of public funds of territories or possessions.
ments. Among other things, that Act authorized direct HEW loans to
In contrast, section 101 (a) (3) of Public Law 93-495 added a new
public agencies and HEW loan-guarantees to private agencies for the
paragraph (2) to section 11 (a) of the Federal Deposit Insurance Act
modernization or construction of hospitals, facilities for long-term
establishing a similar $100,000 insurance ceiling for public unit ac-
care, out-patient facilities, and rehabilitation facilities. In order to
counts in FDIC-insured banks. The new paragraph follows the pat-
involve private financial participation in the program, the Act also
tern set in section 3 (m) of the Federal Deposit Insurance Act (which
amended FNMA's charter to provide express authority for FNMA to
defines a deposit of public funds as an "insured deposit"). Guam is
purchase HEW loans made pursuant to the Act. However, through
included by name, rather than as a "territory," in section 3 (m), and
apparent oversight in Conference, no reference was made to FNMA
the new paragraph repeats the listing in that subsection.
authority to purchase guaranteed loans authorized by the Act. This
Thus, by repeating the names of the governments listed in the
amendment would cure that defect by expressly authorizing FNMA
definitional section of the Federal Deposit Insurance Act, but incom-
purchases of HEW-guaranteed loans to private non-profit agencies
pletely repeating the list of governments contained in the definitional
under the Act and thus, insure that the purpose of the Medical Facili-
section of the National Housing Act, Public Law 93-495 has created
ties Construction and Modernization Amendments are fulfilled.
an unequal treatment of insured banks as compared to insured savings
and loan associations which was not intended.
PUBLIC INTEREST DIRECTORS
The second inconsistency relates to definitional authority of the
FEDERAL HOME LOAN BANKS
FSLIC. The last sentence of section 3 (m) of the Federal Deposit Insurance
The resolution would also increase the basic authorized number of
Act provides:
members of the board of directors of each Federal Home Loan Bank
For purposes of clarifying and defining the insurance cov-
from 12 to 14 by authorizing the Federal Home Loan Bank Board
erage under this subsection and subsection (i) of section 7
to appoint six public interest directors instead of four. The amend-
of this title, the Corporation is authorized to define with
ment would change the ratio of director elected by the members of
such classifications and exceptions as it may prescribe, the
terms used in those subsections, in subsection (p) of this
the particular Federal Home Loan Bank to directors appointed by
the Federal Home Loan Bank Board from the present 8: 4 to 8 6. The
section, and in subsection (a) and (i) of section 11 and the
provisos in section 7 authorizing and directing the Board to expand
extent of insurance coverage resulting therefrom.
further both elective and appointive membership in specified cases
As noted above, the new paragraph added to the Federal Deposit
are amended to maintain the new ratio. Thus, the boards of directors
Insurance Act relating to insurance of public unit accounts was in-
may become representative of a broader range of non-thrift-industry
serted in section 11 (a). Thus, under the quoted sentence, the FDIC is
views, with results expected to be beneficial to the provision of sound,
clearly authorized to define the terms used therein.
economical home financing.
The last sentence of section (a) of the National Housing Act is
similar to the language quoted above and provides:
EXTENSION OF TIME TO STRIKE CERTAIN MEDALS
For the purpose of clarifying and defining the insurance
coverage under this subsection and subsection (b) of sec-
Sections 4 and 5 of the resolution was recommended by the Admin-
tion 401, the Corporation is authorized to define, with such
istration to help ease some of the coinage problems which may arise
in the next few months.
classifications and exceptions as it may prescribe, terms used
in those subsections and in subsection (c) of section 401 and
The act of October 18, 1973, Public Law 93-127, requires that all
dollar, half dollar, and quarter dollar coins minted for issuance on or
the extent of the insurance coverage resulting therefrom.
after July 4, 1975, and until such time as the Secretary of the Treasury
Instead of inserting language into an existing subsection covered by
may determine shall bear a design to be emblematic of the Bicentennial
this definitional authority, Public Law 93-495 added a new subsection
of the United States. The act further provides that the coins in these
to section 405, and thus the FSLIC, unlike the FDIC, lacks explicit
three denominations issued between July 4, 1975 and January 1977,
authority to define the terms used in the amendment. Again, this dif-
shall bear "1776-1976" in lieu of the regular date of coinage.
ference was not intended.
This resolution would grant to the Secretary of the Treasury
stand-by authority to continue minting for issuance dollars, half dol-
TECHNICAL FNMA AMENDMENT
lars, and quarter dollars bearing the current design and date along
The Committee is further advised that legislation is needed in order
with the new Bicentennial coins until December 31, 1975.
to correct a technical defect in the law relating to the authority of
Public Law 93-127 also requires the Secretary to mint prior to
the Federal National Mortgage Association to assist non-profit hos-
July 4, 1975, 45 million silver clad coins commemorating our Bicen-
pital construction and modernization. In 1970, in order to assist both
tennial. This bill would extend this statutory deadline one year to
non-profit private agencies and public agencies in carrying out needed
July 4, 1976.
S.R. 1322
S.R. 1322
4
This legislation is necessitated by the unexpected surge in coinage
demand throughout the nation during the past year. At the time Pub-
lic Law 93-127 was enacted by Congress in October 1973 the Mint
planned to start producing and stockpiling circulating Bicentennial
coinage before the end of 1974 in sufficient quantities for release to the
public beginning July 4, 1975. However, since the total demand for
coinage has increased by about fifty percent during the past year, the
manufacturing facilities of the Bureau of the Mint are being fully
utilized for producing currently needed circulating coinage, particu-
larly one cent pieces, thus leaving no excess capacity for the produc-
tion of Bicentennial coins.
The Committee is assured by the Mint that the stand-by authority
to mint coins of current design until December 31, 1975 and the one
year extension of time for the minting of the 45 million silver clad
coins will go a long way in enabling the Mint to continue to supply
this nation with its needed coinage.
CONTINUATION OF FEDERAL SAVINGS AND LOAN ADVISORY COUNCIL
On September 25, the Committee reported a bill, S. 4004, to amend
the Federal Home Loan Bank Act to provide for the continuation of
the Federal Savings and Loan Advisory Council, a statutory advisory
committee to the Federal Home Loan Bank Board. The bill was sub-
sequently referred to the Senate Committee on Government Opera-
tions for their consideration. After consideration by that Committee,
the bill was reported to the Senate on December 10 with an amend-
ment. This resolution contains a provision for the continuation of the
Advisory Council. The provision is the same as was reported by the
Government Operations Committee.
The approach taken in the resolution is to continue the Federal
Savings and Loan Advisory Council as long as the Federal Home
Loan Bank Board determines, as a matter of formal record, that it is
in the public interest to continue the Council. In addition, the Council
shall be subject to all other provisions of the Federal Advisory Com-
mittee Act.
At the request of the Federal Home Loan Bank Board, the Com-
mittee has expanded the statutory membership of the Council from 18
to 24 members; 12 members are appointed by the boards of directors
of the 12 district bank boards, one from each district. The balance of
the membership is to be appointed from members of the public to rep-
resent the public interest. The Board has provided extensive docu-
mentation as to the need to continue this Council, as well as a state-
ment of intention to appoint true public interest representatives, not
merely more industry members. This material will be incorporated in
the report.
The resolution was ordered reported by the Committee without ob-
jection. The Committee urges favorable consideration of the resolution
by the Senate.
CORDON RULE
In the opinion of the committee, it is necessary to dispense with the
requirements of subsection 4 of rule XXIX of the Standing Rules of
the Senate in order to expedite the business of the Senate in connec-
tion with this report.
S.R. 1322
S. J. Res. 263
Ainety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
Joint Resolution
Amending the National Housing Act to clarify the authority of the Federal Sav-
ings and Loan Insurance Corporation with respect to the insurance of public
deposits, and for other purposes.
Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled, That section 405 of the
National Housing Act (12 U.S.C. 1728) is amended—
(1) by inserting after "this subsection" in the second sentence
of subsection (a) thereof a comma and the following: "subsection
(d) of this section,";
(2) by striking out "this subchapter" in subsection (d) and
inserting in lieu thereof "this title";
(3) by inserting immediately after "or of the Virgin Islands"
in subsection (d) (1) (iv) a comma and the following: "or of any
territory or possession of the United States"; and
(4) by striking out "or the Virgin Islands" in subsection (d)
(1) (iv) and inserting in lieu thereof a comma and the following:
"the Virgin Islands, or any such territory or possession".
SEC. 2. The first sentence of section 302(b) (1) of the National Hous-
ing Act (12 U.S.C. 1717(b) (1)) is amended by striking out "to a
public agency" and inserting in lieu thereof "or guaranteed".
SEC. 3. The first sentence of section 7(a) of the Federal Home Loan
Bank Act (12 U.S.C. 1427) is amended by striking "twelve", "four",
and "one-half" and inserting in lieu thereof "fourteen", "six", and
"three-fourths", respectively.
SEC. 4. Public Law 93-127 is amended by adding at the end thereof
the following new section:
"SEC. 6. Nothing in this Act prohibits the Secretary of the Treasury,
when he deems it necessary to assure an adequate supply of coins to
meet the national needs, from continuing the minting for issuance
during the calendar year 1975 of dollar, half-dollar, and quarter-dollar
coins bearing the design and coinage date provided for in section 3517
of the Revised Statutes, as amended (31 U.S.C. 324).
SEC. 5. The first sentence of section 4 of Public Law 93-127 is
amended by striking out "July 4, 1975, for issuance on and after such
date" and inserting in lieu thereof "July 4, 1976, for issuance on and
after July 4, 1975".
SEC. 6. Section 8a of the Federal Home Loan Bank Act (12 U.S.C.
1428a) is hereby amended by striking the first sentence thereof and
inserting in lieu thereof the following: "There is hereby created a
Federal Savings and Loan Advisory Council, which shall continue
to exist as long as the Board biannually determines, as a matter of for-
mal record, after consultation with the Director of the Office of Man-
agement and Budget, with timely notice in the Federal Register, to be
in the public interest in connection with the performance of duties
S.J. Res. 263-2
imposed on the Council by law. The Council shall, in all other
respects, be subject to the provisions of the Federal Advisory Commit-
tee Act. The Council shall consist of one member for each Federal
Home Loan Bank district to be elected annually by the board of direc-
tors of the Federal Home Loan Bank in such district and twelve mem-
bers to be appointed annually by the Board to represent the public
interest.".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
December 16, 1974
Dear Mr. Director:
The following bills were received at the White
House on December 16th:
L
S.J. Res. 263
H.R. 14349
H.R. 1355
VI.R. 15067
H.R. 5056
R.R. 15818
H.R. 7072
H.R. 16006
JR. TOTT
H.R. 1642
11013
Please let the President have reperts and
recommendations as to the approval. of these
bills as soon as pessible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.