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US (United States) Code. Title 12. Chapter 11: Federal Home Loan Banks

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-CITE-

12 USC CHAPTER 11 - FEDERAL HOME LOAN BANKS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-MISC1-

Sec.

1421. Short title.

1422. Definitions.

1422a. Federal Housing Finance Board.

(a) Establishment.

(b) Management.

(d) Vacancies.

1422b. Powers and duties.

(a) General powers.

(b) Staff.

(d) Annual report.

1423. Federal Home Loan Bank districts; number and boundaries;

establishment of Federal Home Loan Banks; names.

1424. Eligibility for membership.

(a) Criteria for eligibility.

(b) Location requirement.

1425 to 1425b. Repealed.

1426. Capital structure of Federal home loan banks.

(a) Regulations.

(b) Capital structure plan.

(d) Termination of membership.

(e) Redemption of excess stock.

(f) Impairment of capital.

(g) Rejoining after divestiture of all shares.

(h) Treatment of retained earnings.

1427. Directors.

(a) Number; appointment and election; qualifications;

conflicts of interest.

(b) Elective directorships; qualifications;

nominations and election.

designation of State location.

(d) Terms; rules and regulations governing

nominations and elections.

(e) Continuation of existing terms; directorship for

the Commonwealth of Puerto Rico.

(f) Vacancies.

(g) Chairperson and Vice Chairperson.

(h) Appointment where members hold less than

$1,000,000 of capital stock.

(i) Directors' compensation.

(j) Duties of directors.

(k) Indemnification of directors, officers, and

employees.

1428. Examination of State laws, regulations, and procedures;

studies of values, etc.

1428a. Repealed.

1429. Eligibility to secure advances.

1430. Advances to members.

(a) In general.

(b) Appraisals and other investigations; acceptance

of home mortgages as collateral security only

by formal Board resolution.

on stock.

(d) Obligation to repay; additional security; sale of

advances to other banks.

(e) Priority of certain secured interests.

(g) Community support requirements.

(h) Special liquidity advances.

(i) Community investment program.

(j) Affordable housing program.

1430a. Omitted.

1430b. Advances to nonmember mortgagee; terms and conditions.

(a) In general.

(b) Exception.

1431. Powers and duties of banks.

(a) Borrowing money; issuing bonds and debentures;

general powers.

(b) Issuance of consolidated Federal Home Loan Bank

debentures; restrictions.

(d) Additional or substituted collateral on

adjustment of equities.

(e) Acceptance of deposits; restrictions on

transaction of banking business; collection and

settlement of checks, drafts, etc.; charges;

rules and regulations.

(f) Rediscount of notes held by other banks; purchase

of bonds of other banks.

(g) Reserves.

(h) Investment of surplus funds.

(i) Treasury purchase of banks' obligations; exercise

of authority.

(j) Audits.

(k) Bank losses to Deposit Insurance Fund.

1432. Incorporation of banks; corporate powers; housing project

loans.

1433. Exemption from taxation; obligations acceptable as credit on

debt of home owner.

1434. Depositaries of public money; financial agents.

1435. Obligations as lawful investments; liability of United States

for debentures, etc., issued by banks.

1436. Reserves and dividends; emergency suspensions of

requirements.

(a) Accumulation and maintenance of reserves; payment

of dividends.

(b) Assistance to member institutions in event of

severe financial conditions.

Financing Corporation stock.

1437. Repealed.

1438. Administrative expenses.

(a) Repealed.

(b) Assessments for administrative expenses.

obligations of United States; legal

investments; approval of plans and designs;

custody, management, and control; receipts;

expense exclusions; property defined; budget

preparation program; audit; zoning regulations;

delegation of functions; limitation on

obligations.

1438a. Nonadministrative expenses; expenses of studies and

investigations.

1439, 1439-1. Repealed.

1439a. Deposits in special fund; availability for all purposes of

Federal Home Loan Bank Board and Federal Home Loan Bank

Administration.

1440. Examinations and audits.

1441. Financing Corporation.

(a) Establishment.

(b) Management of Financing Corporation.

(d) Capitalization of Financing Corporation.

(e) Obligations of Financing Corporation.

(f) Sources of funds for interest payments; Financing

Corporation assessment authority.

(g) Use and disposition of assets of Financing

Corporation not invested in FSLIC.

(h) Miscellaneous provisions relating to Financing

Corporation.

(i) Termination of Financing Corporation.

(j) Regulations.

(k) Definitions.

1441a. Thrift Depositor Protection Oversight Board and Resolution

Trust Corporation.

(a) Thrift Depositor Protection Oversight Board

established.

(b) Resolution Trust Corporation established.

(d) National and regional advisory boards.

(e) Institutions organized by Corporation.

(f) Limitation on certain Corporation activities.

(g) Exemption from State and local taxation.

(h) Guarantees of FSLIC.

(i) Funding.

(j) Maximum amount limitations on outstanding

obligations.

(k) Reporting and disclosure obligations.

(l) Power to remove; jurisdiction.

(m) Termination.

(n) Conflict of interest.

(o) Status of employees.

(p) Management enhancement goals.

(q) RTC, Thrift Depositor Protection Oversight Board,

and RTC contractor employee protection remedy.

(r) Review and evaluation procedure for contracts.

(s) Acquisition of branch facilities in minority

neighborhoods.

(t) Assistance under circumstances for acquisition of

majority-owned institutions.

(u) Minority interim capital assistance program.

(v) Continuation of obligation to provide services.

(w) RTC management reforms.

(x) Limitation on excessive compensation and cash

awards.

(y) Authority to execute contracts.

(z) Additional contracting requirements.

1441a-1. Definitions.

1441a-2. Authorization for State housing finance agencies and

nonprofit entities to purchase mortgage-related assets.

(a) Authorization.

(b) Investment requirement.

1441a-3. RTC and FDIC properties.

(a) Reports.

(b) Limitation on transfer.

1441b. Resolution Funding Corporation established.

(a) Purpose.

(b) Establishment.

(d) Powers of Funding Corporation.

(e) Capitalization of Funding Corporation, etc.

(f) Obligations of Funding Corporation.

(g) Use and disposition of assets of Funding

Corporation not transferred to Resolution Trust

Corporation.

(h) Miscellaneous provisions.

(i) Annual report.

(j) Termination of Funding Corporation.

(k) Definitions.

(l) Regulations.

1442. Member financial information.

(a) In general.

(b) Consent by members.

1442a. Repealed.

1443. Forms of bank stock and obligations.

1444. Eligibility to membership in banks.

1445. Succession of Federal Home Loan Banks.

1446. Liquidation or reorganization; acquisition of assets by other

banks; assumption of liabilities.

1447. Repealed.

1448. Effect of partial invalidity of chapter.

1449. Reservation of right to amend or repeal chapter.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1464, 4501 of this title.

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12 USC Sec. 1421 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1421. Short title

-STATUTE-

This chapter may be cited as the ''Federal Home Loan Bank Act.''

-SOURCE-

(July 22, 1932, ch. 522, Sec. 1, 47 Stat. 725.)

-MISC1-

SHORT TITLE OF 1999 AMENDMENT

Pub. L. 106-102, title VI, Sec. 601, Nov. 12, 1999, 113 Stat.

1450, provided that: ''This title (amending sections 250, 1422,

1422b, 1424, 1426, 1427, 1429, 1430, 1432, 1436, 1438, 1441b, 1464,

and 1467a of this title, repealing sections 1442a and 1447 of this

title, and enacting provisions set out as a note under section

1441b of this title) may be cited as the 'Federal Home Loan Bank

System Modernization Act of 1999'.''

SHORT TITLE OF 1993 AMENDMENT

Pub. L. 103-204, Sec. 1(a), Dec. 17, 1993, 107 Stat. 2369,

provided that: ''This Act (enacting section 1447 of this title and

section 8C of the Inspector General Act of 1978, Pub. L. 95-452,

set out in the Appendix to Title 5, Government Organization and

Employees, amending sections 1441a, 1811, 1813, 1815, 1817, 1818,

1821, 1822, 1824, 1831j, and 1831q of this title, sections 5314 and

5315 of Title 5, and sections 8D to 8G and 11 of the Inspector

General Act of 1978, Pub. L. 95-452, set out in the Appendix to

Title 5, enacting provisions set out as notes under sections 1441a,

1811, 1817, 1821, 1822, 1827, and 1831q of this title and section 3

of the Inspector General Act of 1978, Pub. L. 95-452, set out in

the Appendix to Title 5, and amending provisions set out as notes

under section 396f of Title 16, Conservation, and section 1611 of

Title 43, Public Lands) may be cited as the 'Resolution Trust

Corporation Completion Act'.''

SHORT TITLE OF 1991 AMENDMENTS

Pub. L. 102-233, Sec. 1, Dec. 12, 1991, 105 Stat. 1761, provided

that: ''This Act (enacting section 2907 of this title, amending

sections 1441, 1441a, 1441b, 1786, 1818, 1821, 1821a, 1833b, 1833e,

3345, and 3348 of this title, sections 5313 and 5314 of Title 5,

Government Organization and Employees, and section 11 of the

Inspector General Act of 1978, Pub. L. 95-452, set out in the

Appendix to Title 5, enacting provisions set out as notes under

this section and sections 1441, 1441a, and 1831n of this title, and

amending provisions set out as notes under sections 1437 and 1441a

of this title) may be cited as the 'Resolution Trust Corporation

Refinancing, Restructuring, and Improvement Act of 1991'.''

Pub. L. 102-233, title III, Sec. 301, Dec. 12, 1991, 105 Stat.

1767, provided that: ''This title (amending sections 1441, 1441a,

1441b, 1786, 1818, 1821, 1833b, and 1833e of this title, sections

5313 and 5314 of Title 5, Government Organization and Employees,

and section 11 of the Inspector General Act of 1978, Pub. L.

95-452, set out in the Appendix to Title 5, enacting provisions set

out as notes under sections 1441 and 1441a of this title, and

amending provisions set out as notes under sections 1437 and 1441a

of this title) may be cited as the 'Resolution Trust Corporation

Thrift Depositor Protection Reform Act of 1991'.''

Pub. L. 102-18, Sec. 1, Mar. 23, 1991, 105 Stat. 58, provided

that: ''This Act (amending sections 1441a and 1812 of this title

and enacting provisions set out as notes under section 1441a of

this title) may be cited as the 'Resolution Trust Corporation

Funding Act of 1991'.''

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12 USC Sec. 1422 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1422. Definitions

-STATUTE-

As used in this chapter -

(1) Board. - The terms ''Finance Board'' and ''Board'' mean the

Federal Housing Finance Board established under section 1422a of

this title.

(2)(A) Bank. - The term ''Federal Home Loan Bank'' or ''Bank''

means a bank established under the authority of this chapter.

(B) Bank system. - The term ''Federal Home Loan Bank System''

means the Federal Home Loan Banks under the supervision of the

Board.

(3) State. - The term ''State'', in addition to the States of

the United States, includes the District of Columbia, Guam,

Puerto Rico, the United States Virgin Islands, American Samoa,

and the Commonwealth of the Northern Mariana Islands.

(4) The term ''member'' means any institution which has

subscribed for the stock of a Federal Home Loan Bank.

(5) The term ''home mortgage loan'' means a loan made by a

member upon the security of a home mortgage.

(6) The term ''home mortgage'' means a mortgage upon real

estate, in fee simple, or on a leasehold (1) under a lease for

not less than ninety-nine years which is renewable or (2) under a

lease having a period of not less than fifty years to run from

the date the mortgage was executed, upon which is located, or

which comprises or includes, one or more homes or other dwelling

units, all of which may be defined by the Board and shall

include, in addition to first mortgages, such classes of first

liens as are commonly given to secure advances on real estate by

institutions authorized under this chapter to become members,

under the laws of the State in which the real estate is located,

together with the credit instruments, if any, secured thereby.

(7) The term ''unpaid principal,'' when used in respect of a

loan secured by a home mortgage means the principal thereof less

the sum of (1) payments made on such principal, and (2) in cases

where shares or stock are pledged as security for the loan, the

payments made on such shares or stock plus earnings or dividends

apportioned or credited thereon.

(8) An ''amortized'' or ''installment'' home mortgage loan

shall, for the purposes of this chapter, be a home mortgage loan

to be repaid or liquidated in not less than eight years by means

of regular weekly, monthly, or quarterly payments made directly

in reduction of the debt or upon stock or shares pledged as

collateral for the repayment of such loan.

(9) Savings association. - The term ''savings association'' has

the meaning given to such term in section 3 of the Federal

Deposit Insurance Act (12 U.S.C. 1813).

(10) Chairperson. - The term ''Chairperson'' means the

Chairperson of the Board.

(11) Secretary. - The term ''Secretary'' means the Secretary of

Housing and Urban Development.

(12) Insured depository institution. - The term ''insured

depository institution'' means -

(A) an insured depository institution (as defined in section

3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), and

(B) except as used in sections 1441a and 1441b of this title,

an insured credit union (as defined in section 1752 of this

title).

(13) Community financial institution. -

(A) In general. - The term ''community financial

institution'' means a member -

(i) the deposits of which are insured under the Federal

Deposit Insurance Act (12 U.S.C. 1811 et seq.); and

(ii) that has, as of the date of the transaction at issue,

less than $500,000,000 in average total assets, based on an

average of total assets over the 3 years preceding that date.

(B) Adjustments. - The $500,000,000 limit referred to in

subparagraph (A)(ii) shall be adjusted annually by the Finance

Board, based on the annual percentage increase, if any, in the

Consumer Price Index for all urban consumers, as published by

the Department of Labor.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 2, 47 Stat. 725; June 27, 1934, ch.

847, Sec. 507, 48 Stat. 1264; May 28, 1935, ch. 150, Sec. 1, 49

Stat. 293; July 14, 1952, ch. 723, Sec. 10(c), 66 Stat. 604; Pub.

L. 86-70, Sec. 9(a), June 25, 1959, 73 Stat. 142; Pub. L. 86-624,

Sec. 5(a), July 12, 1960, 74 Stat. 411; Pub. L. 87-779, Sec. 2(a),

Oct. 9, 1962, 76 Stat. 779; Pub. L. 101-73, title VII, Sec. 701(a),

710(b)(1), Aug. 9, 1989, 103 Stat. 411, 418; Pub. L. 106-102, title

VI, Sec. 602, Nov. 12, 1999, 113 Stat. 1450.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Deposit Insurance Act, referred to in par.

(13)(A)(i), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873,

as amended, which is classified generally to chapter 16 (Sec. 1811

et seq.) of this title. For complete classification of this Act to

the Code, see Short Title note set out under section 1811 of this

title and Tables.

-MISC2-

AMENDMENTS

1999 - Par. (1). Pub. L. 106-102, Sec. 602(1), substituted

''terms 'Finance Board' and 'Board' mean'' for ''term 'Board'

means''.

Par. (3). Pub. L. 106-102, Sec. 602(2), added par. (3) and struck

out former par. (3) which read as follows: ''The term 'State'

includes the District of Columbia, Guam, Puerto Rico, and the

Virgin Islands of the United States.''

Par. (13). Pub. L. 106-102, Sec. 602(3), added par. (13).

1989 - Pars. (1), (2). Pub. L. 101-73, Sec. 701(a)(1), added

pars. (1) and (2) and struck out former pars. (1) and (2) which

defined ''board'' and ''Federal Home Loan Bank''.

Par. (4). Pub. L. 101-73, Sec. 701(a)(2), which directed

amendment of par. (4) by striking out ''(except when used in

reference to the member of the Board)'' after '' 'member' '', was

executed by striking out ''(except when used in reference to a

member of the board)'' as the probable intent of Congress.

Par. (5). Pub. L. 101-73, Sec. 710(b)(1), struck out ''or a

nonmember borrower'' after ''member''.

Pars. (9) to (12). Pub. L. 101-73, Sec. 701(a)(3), added pars.

(9) to (12) and struck out former par. (9) which read as follows:

''The term 'nonmember borrower' includes an institution authorized

to secure advances from a Federal Home Loan Bank under the

provisions of subsection (e) of section 1426 of this title.''

1962 - Subsec. (6). Pub. L. 87-779 substituted ''upon which is

located, or which comprises or includes, one or more homes or other

dwelling units, all of which may be defined by the Board'' for

''upon which there is located a dwelling for not more than four

families''.

1960 - Subsec. (3). Pub. L. 86-624 struck out reference to

Territory of Hawaii.

1959 - Subsec. (3). Pub. L. 86-70 substituted ''Territory of

Hawaii'' for ''Territories of Alaska and Hawaii''.

1952 - Subsec. (3). Act July 14, 1952, inserted ''Guam,''.

1935 - Subsec. (6). Act May 28, 1935, substituted ''four

families'' for ''three families''.

1934 - Subsec. (6). Act June 27, 1934, struck out ''first''

before ''mortgage'' and inserted ''or (2) under a lease having a

period of not less than fifty years to run from the date the

mortgage was executed''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 248, 461, 1424, 1735f-7a

of this title; title 18 section 20.

-CITE-

12 USC Sec. 1422a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1422a. Federal Housing Finance Board

-STATUTE-

(a) Establishment

(1) In general

There is established the Federal Housing Finance Board, which

shall succeed to the authority of the Federal Home Loan Bank

Board with respect to the Federal Home Loan Banks.

(2) Status

The Board shall be an independent agency in the executive

branch of the Government.

(3) Duties

(A) Safety and soundness

The primary duty of the Board shall be to ensure that the

Federal Home Loan Banks operate in a financially safe and sound

manner.

(B) Other duties

To the extent consistent with subparagraph (A), the duties of

the Board shall also be -

(i) to supervise the Federal Home Loan Banks;

(ii) to ensure that the Federal Home Loan Banks carry out

their housing finance mission; and

(iii) to ensure that the Federal Home Loan Banks remain

adequately capitalized and able to raise funds in the capital

markets.

(b) Management

(1) In general

The management of the Board shall be vested in a Board of

Directors consisting of 5 directors as follows:

(A) The Secretary who shall serve without additional

compensation.

(B) Four citizens of the United States, appointed by the

President, by and with the advice and consent of the Senate,

each of whom shall hold office for a term of 7 years.

(2) Provisions relating to appointed directors

(A) In general

The directors appointed pursuant to paragraph (1)(B) shall be

from among persons with extensive experience or training in

housing finance or with a commitment to providing specialized

housing credit. An appointed director shall not hold any other

appointed office during his or her term as director. Not more

than 3 directors shall be members of the same political party.

Not more than 1 appointed director shall be from any single

district of the Federal Home Loan Bank System. Nominations

pursuant to this subparagraph shall be referred in the Senate

to the Committee on Banking, Housing, and Urban Affairs.

(B) Consumer representative

At least 1 director shall be chosen from an organization with

more than a 2-year history of representing consumer or

community interests on banking services, credit needs, housing,

or financial consumer protections.

No director may -

(i) serve as a director or officer of any Federal Home Loan

Bank or any member of any Bank; or

(ii) hold shares of, or any other financial interest in,

any member of any such Bank.

(D) Clarification of status

(i) In general

The directors appointed pursuant to paragraph (1)(B) shall

serve on a full-time basis after December 31, 1993.

(ii) Rule of construction

Clause (i) shall not be construed as implying that any

other position may be filled or held on a less than full-time

basis.

(3) Initial terms

Notwithstanding paragraph (2), of the directors first appointed

(A) one shall be appointed for a term of 1 year;

(B) one shall be appointed for a term of 3 years; and

(1) In general

The President shall designate 1 of the appointed directors to

be the Chairperson of the Board. The Chairperson shall designate

another director to serve as Acting Chairperson during the

absence or disability of the Chairperson.

(2) Transitional provision

Beginning on August 9, 1989, until such time that at least 2

directors are appointed and confirmed pursuant to subsection (b)

of this section, the Secretary shall act for all purposes and

with the full powers of the Board of Directors. The Secretary may

utilize the services of employees from the Department of Housing

and Urban Development to perform services for the Board of

Directors during such transition period.

(d) Vacancies

(1) In general

Any vacancy on the Board of Directors shall be filled in the

manner in which the original appointment was made. Any director

appointed to fill a vacancy occurring before the expiration of

the term for which such director's predecessor was appointed

shall be appointed only for the remainder of such term. Each

director may continue to serve until a successor has been

appointed and qualified.

(2) The Secretary

In the event of a vacancy in the office of Secretary or during

the absence or disability of the Secretary, the Acting Secretary

shall act as a director in place of the Secretary.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 2A, as added Pub. L. 101-73, title

VII, Sec. 702(a), Aug. 9, 1989, 103 Stat. 413; amended Pub. L.

102-550, title XIII, Sec. 1391, title XVI, Sec. 1608, Oct. 28,

1992, 106 Stat. 4009, 4089.)

-MISC1-

AMENDMENTS

1992 - Subsec. (a)(3). Pub. L. 102-550, Sec. 1391, amended par.

(3) generally. Prior to amendment, par. (3) read as follows: ''The

duties of the Board shall be -

''(A) to supervise the Federal Home Loan Banks,

''(B) to ensure that the Federal Home Loan Banks carry out

their housing finance mission,

''(C) to ensure the Federal Home Loan Banks remain adequately

capitalized and able to raise funds in the capital markets, and

''(D) to ensure the Federal Home Loan Banks operate in a safe

and sound manner.''

Subsec. (b)(2)(D). Pub. L. 102-550, Sec. 1608, added subpar. (D).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by section 1608 of Pub. L. 102-550 effective as if

included in the Federal Deposit Insurance Corporation Improvement

Act of 1991, Pub. L. 102-242, as of Dec. 19, 1991, see section

1609(a) of Pub. L. 102-550, set out as a note under section 191 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1422, 1427 of this title.

-CITE-

12 USC Sec. 1422b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1422b. Powers and duties

-STATUTE-

(a) General powers

The Board shall have the following powers:

(1) To supervise the Federal Home Loan Banks and to promulgate

and enforce such regulations and orders as are necessary from

time to time to carry out the provisions of this chapter.

(2) To suspend or remove for cause a director, officer,

employee, or agent of any Federal Home Loan Bank or joint

office. The cause of such suspension or removal shall be

communicated in writing to such director, officer, employee, or

agent and to such Bank or joint office. Notwithstanding any

other provision of this chapter, no officer, employee, or agent

of a Bank or joint office shall be a Federal officer or employee

under any definition of either term in title 5.

(3) To determine necessary expenditures of the Board under this

chapter and the manner in which such expenditures shall be

incurred, allowed, and paid.

(4) To use the United States mails in the same manner and under

the same conditions as a department or agency of the United

States.

(5) To issue and serve a notice of charges upon a Federal home

loan bank or upon any executive officer or director of a Federal

home loan bank if, in the determination of the Finance Board, the

Bank, executive officer, or director is engaging or has engaged

in, or the Finance Board has reasonable cause to believe that the

Bank, executive officer, or director is about to engage in an

unsafe or unsound practice in conducting the business of the

bank, or any conduct that violates any provision of this chapter

or any law, order, rule, or regulation or any condition imposed

in writing by the Finance Board in connection with the granting

of any application or other request by the Bank, or any written

agreement entered into by the Bank with the agency, in accordance

with the procedures provided in subsection (c) or (f) of section

1371 of the Federal Housing Enterprises Financial Safety and

Soundness Act of 1992 (12 U.S.C. 4631). Such authority includes

the same authority to issue an order requiring a party to take

affirmative action to correct conditions resulting from

violations or practices or to limit activities of a Bank or any

executive officer or director of a Bank as appropriate Federal

banking agencies have to take with respect to insured depository

institutions under paragraphs (6) and (7) of section 1818(b) of

this title, and to have all other powers, rights, and duties to

enforce this chapter with respect to the Federal home loan banks

and their executive officers and directors as the Office of

Federal Housing Enterprise Oversight has to enforce the Federal

Housing Enterprises Financial Safety and Soundness Act of 1992

(12 U.S.C. 4501 et seq.), the Federal National Mortgage

Association Charter Act (12 U.S.C. 1716 et seq.), or the Federal

Home Loan Mortgage Corporation Act (12 U.S.C. 1451 et seq.) with

respect to the Federal housing enterprises under subtitle C (12

U.S.C. 4631 et seq.) (other than section 1371 (12 U.S.C. 4631))

of the Federal Housing Enterprises Financial Safety and Soundness

Act of 1992.

(6) To address any insufficiencies in capital levels resulting

from the application of section 1464(f) of this title.

(7) To act in its own name and through its own attorneys -

(A) in enforcing any provision of this chapter or any

regulation promulgated under this chapter; or

(B) in any action, suit, or proceeding to which the Finance

Board is a party that involves the Board's regulation or

supervision of any Federal home loan bank.

(b) Staff

(1) Board staff

Subject to title IV of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989, the Board may employ,

direct, and fix the compensation and number of employees,

attorneys, and agents of the Federal Housing Finance Board,

except that in no event shall the Board delegate any function to

any employee, administrative unit of any Bank, or joint office of

the Federal Home Loan Bank System. The prohibition contained in

the preceding sentence shall not apply to the delegation of

ministerial functions including issuing consolidated obligations

pursuant to section 1431(b) of this title. In directing and

fixing such compensation, the Board shall consult with and

maintain comparability with the compensation at the Federal bank

regulatory agencies. Such compensation shall be paid without

regard to the provisions of other laws applicable to officers or

employees of the United States, except the Chairperson and other

Directors shall be compensated as prescribed in sections 5314 and

5315 of title 5, respectively.

(2) Abolition of joint offices

The joint or collective offices of the Federal Home Loan Bank

System, except for the Office of Finance, are hereby abolished.

Receipts of the Board derived from assessments levied upon the

Federal Home Loan Banks and from other sources (other than receipts

from the sale of consolidated Federal Home Loan Bank bonds and

debentures issued under section 1431 of this title) shall be

deposited in the Treasury of the United States. Salaries of the

directors and other employees of the Board and all other expenses

thereof may be paid from such assessments or other sources and

shall not be construed to be Government Funds or appropriated

monies, or subject to apportionment for the purposes of chapter 15

of title 31, or any other authority.

(d) Annual report

The Board shall make an annual report to the Congress.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 2B, as added Pub. L. 101-73, title

VII, Sec. 702(a), Aug. 9, 1989, 103 Stat. 414; amended Pub. L.

106-102, title VI, Sec. 606(e)(1), Nov. 12, 1999, 113 Stat. 1454.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Housing Enterprises Financial Safety and Soundness

Act of 1992, referred to in subsec. (a)(5), is title XIII of Pub.

L. 102-550, Oct. 28, 1992, 106 Stat. 3941, which is classified

principally to chapter 46 (Sec. 4501 et seq.) of this title.

Subtitle C of the Act is classified generally to subchapter III

(Sec. 4631 et seq.) of chapter 46 of this title. For complete

classification of this Act to the Code, see Short Title note under

section 4501 of this title and Tables.

The Federal National Mortgage Association Charter Act, referred

to in subsec. (a)(5), is title III of act June 27, 1934, ch. 847,

48 Stat. 1252, as amended, which is classified generally to

subchapter III (Sec. 1716 et seq.) of chapter 13 of this title.

For complete classification of this Act to the Code, see Short

Title note set out under section 1716 of this title and Tables.

The Federal Home Loan Mortgage Corporation Act, referred to in

subsec. (a)(5), is title III of Pub. L. 91-351, July 24, 1970, 84

Stat. 451, as amended, which is classified generally to chapter 11A

(Sec. 1451 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title and Statement of Purpose note

set out under section 1451 of this title and Tables.

The Financial Institutions Reform, Recovery, and Enforcement Act

of 1989, referred to in subsec. (b)(1), is Pub. L. 101-73, Aug. 9,

1989, 103 Stat. 183. Title IV of the Act is set out as a note under

section 1437 of this title. For complete classification of this

Act to the Code, see Tables.

-MISC2-

AMENDMENTS

1999 - Subsec. (a)(5) to (7). Pub. L. 106-102 added pars. (5) to

(7).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 5 section 5373.

-CITE-

12 USC Sec. 1423 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1423. Federal Home Loan Bank districts; number and boundaries;

establishment of Federal Home Loan Banks; names

-STATUTE-

As soon as practicable the Board shall divide the continental

United States, Puerto Rico, the Virgin Islands, Guam, and the

Territories of Alaska and Hawaii into not less than eight nor more

than twelve districts. Such districts shall be apportioned with

due regard to the convenience and customary course of business of

the institutions eligible to and likely to subscribe for stock of a

Federal Home Loan Bank to be formed under this chapter, but no such

district shall contain a fractional part of any State. The

districts thus created may be readjusted and new districts may from

time to time be created by the Board, not to exceed twelve in all.

Such districts shall be known as Federal Home Loan Bank districts

and may be designated by number. As soon as practicable the Board

shall establish, in each district, a Federal Home Loan Bank at such

city as may be designated by the Board. Its title shall include the

name of the city at which it is established.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 3, 47 Stat. 726; July 14, 1952, ch.

723, Sec. 10(c), 66 Stat. 604; Pub. L. 101-73, title VII, Sec.

701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 substituted ''Board'' for ''board''

wherever appearing.

1952 - Act July 14, 1952, inserted ''Guam,'' after ''Virgin

Islands,''.

ADMISSION OF ALASKA AND HAWAII TO STATEHOOD

Alaska was admitted into the Union on Jan. 3, 1959, on issuance

of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and

Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of

Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. c74. For

Alaska Statehood Law, see Pub. L. 85-508, July 7, 1958, 72 Stat.

339, set out as a note preceding section 21 of Title 48,

Territories and Insular Possessions. For Hawaii Statehood Law, see

Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4, set out as a note

preceding section 491 of Title 48.

-CITE-

12 USC Sec. 1424 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1424. Eligibility for membership

-STATUTE-

(a) Criteria for eligibility

(1) In general

Any building and loan association, savings and loan

association, cooperative bank, homestead association, insurance

company, savings bank, or any insured depository institution (as

defined in section 1422 of this title), shall be eligible to

become a member of a Federal Home Loan Bank if such institution -

(A) is duly organized under the laws of any State or of the

United States;

(B) is subject to inspection and regulation under the banking

laws, or under similar laws, of the State or of the United

States; and

Board, are long-term loans (except that in the case of a

savings bank, this subparagraph applies only if, in the

judgment of the Board, its time deposits, as defined in section

461 of this title, warrant its making such loans).

(2) Qualified thrift lender

An insured depository institution that is not a member on

January 1, 1989, may become a member of a Federal Home Loan Bank

only if -

(A) the insured depository institution (other than a

community financial institution) has at least 10 percent of its

total assets in residential mortgage loans;

(B) the insured depository institution's financial condition

is such that advances may be safely made to such institution;

and

policy are consistent with sound and economical home financing.

(3) Certain institutions

An insured depository institution commencing its initial

business operations after January 1, 1989, may become a member of

a Federal Home Loan Bank if it complies with regulations and

orders prescribed by the Board for the 10 percent asset

requirement (described in the (FOOTNOTE 1) paragraph (2)) within

one year after the commencement of its operations.

(FOOTNOTE 1) So in original. The word ''the'' probably should

not appear.

(4) Limited exemption for community financial institutions

A community financial institution that otherwise meets the

requirements of paragraph (2) may become a member without regard

to the percentage of its total assets that is represented by

residential mortgage loans, as described in subparagraph (A) of

paragraph (2).

(b) Location requirement

An institution eligible to become a member under this section may

become a member only of, or secure advances from, the Federal Home

Loan Bank of the district in which is located the institution's

principal place of business, or of the bank of a district adjoining

such district, if demanded by convenience and then only with the

approval of the Board.

Notwithstanding the provisions of clause (2) of subsection (a) of

this section requiring inspection and regulation under law as a

condition with respect to eligibility for membership, any building

and loan association which would be eligible to become a member of

a Federal Home Loan Bank except for the fact that it is not subject

to inspection and regulation under the banking laws or similar laws

of the State in which such association is organized shall, upon

subjecting itself to such inspection and regulation as the Board

shall prescribe, be eligible to become a member.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 4, 47 Stat. 726; June 13, 1933, ch.

64, Sec. 3, 48 Stat. 129; Pub. L. 101-73, title VII, Sec.

701(b)(1), (3)(A), 704(a), 710(b)(1), Aug. 9, 1989, 103 Stat. 412,

415, 418; Pub. L. 106-102, title VI, Sec. 605, Nov. 12, 1999, 113

Stat. 1452.)

-REFTEXT-

REFERENCES IN TEXT

Section 461 of this title, referred to in subsec. (a)(1)(C), was

in the original ''section 19 of the Federal Reserve Act''.

Definition provisions of section 19 are classified to section 461

of this title. Other provisions of section 19 are classified to

sections 142, 371a, 371b, 371b-1, 374, 374a, 463 to 466, 505, and

506 of this title.

-MISC2-

AMENDMENTS

1999 - Subsec. (a)(2) to (4). Pub. L. 106-102 inserted ''(other

than a community financial institution)'' after ''institution'' in

par. (2)(A), designated concluding provisions of par. (2) as par.

(3), inserted heading and substituted ''paragraph (2)'' for

''preceding sentence'', and added par. (4).

1989 - Subsec. (a). Pub. L. 101-73, Sec. 704(a), amended subsec.

(a) generally. Prior to amendment, subsec. (a) read as follows:

''Any building and loan association, savings and loan association,

cooperative bank, homestead association, insurance company, or

savings bank shall be eligible to become a member of, or a

nonmember borrower of, a Federal Home Loan Bank if such institution

(1) is duly organized under the laws of any State or of the United

States; (2) is subject to inspection and regulation under the

banking laws, or under similar laws, of the State or of the United

States; and (3) makes such home mortgage loans as in the judgment

of the board, are long-term loans (and in the case of a savings

bank if, in the judgment of the board, its time deposits, as

defined in section 461 of this title, warrant its making such

loans). No institution shall be eligible to become a member of, or

a nonmember borrower of, a Federal Home Loan Bank if, in the

judgment of the board, its financial condition is such that

advances may not safely be made to such institution or the

character of its management or its home-financing policy is

inconsistent with sound and economical home financing, or with the

purposes of this chapter.''

Subsec. (b). Pub. L. 101-73, Sec. 710(b)(1), struck out ''or a

nonmember borrower'' after ''eligible to become a member''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board''.

Subsec. (c). Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted

''Board'' for ''board''.

1933 - Subsec. (d). Act June 13, 1933, struck out subsec. (d)

which provided for direct loans to homeowners. See chapter 12

(Sec. 1461 et seq.) of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1431 of this title.

-CITE-

12 USC Sec. 1425 to 1425b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1425 to 1425b. Repealed. Pub. L. 101-73, title VII, Sec. 705,

716, 720, Aug. 9, 1989, 103 Stat. 416, 421, 423

-MISC1-

Section 1425, acts July 22, 1932, ch. 522, Sec. 5, 47 Stat. 727;

Dec. 24, 1969, Pub. L. 91-152, title IV, Sec. 416(a), 83 Stat. 401,

related to limitation on lawful contract rate of interest

receivable by members and nonmember borrowers, and applicability to

home mortgage loans on single-family dwellings.

Section 1425a, act July 22, 1932, ch. 522, Sec. 5A, as added June

27, 1950, ch. 369, Sec. 1, 64 Stat. 256; amended Aug. 11, 1955, ch.

783, title I, Sec. 109(a)(3), 69 Stat. 640; Sept. 21, 1968, Pub. L.

90-505, Sec. 4, 82 Stat. 856; Mar. 31, 1980, Pub. L. 96-221, title

I, Sec. 104(b), title IV, Sec. 405, 94 Stat. 139, 158; Oct. 8,

1980, Pub. L. 96-399, title III, Sec. 325(a), 94 Stat. 1648; Oct.

15, 1982, Pub. L. 97-320, title III, Sec. 332, 96 Stat. 1504; Oct.

17, 1984, Pub. L. 98-479, title II, Sec. 207, 98 Stat. 2235,

related to liquidity requirements for savings and loan associations

and other members.

Section 1425b, act July 22, 1932, ch. 522, Sec. 5B, as added

Sept. 21, 1966, Pub. L. 89-597, Sec. 4, 80 Stat. 824; amended Sept.

21, 1968, Pub. L. 90-505, Sec. 2(c), 82 Stat. 856; Dec. 23, 1969,

Pub. L. 91-151, Sec. 2(b), 83 Stat. 372; Oct. 29, 1974, Pub. L.

93-501, title I, Sec. 103, title III, Sec. 303, 88 Stat. 1558,

1560; Nov. 5, 1979, Pub. L. 96-104, title II, Sec. 203, 93 Stat.

793; Dec. 28, 1979, Pub. L. 96-161, title II, Sec. 210, 93 Stat.

1239; Mar. 31, 1980, Pub. L. 96-221, title II, Sec. 207(b)(7)-(9),

title V, Sec. 529, 94 Stat. 144, 168, related to rate of interest

payable on deposits, shares or withdrawable accounts by members,

insured institutions and other nonmember financial institutions.

-CITE-

12 USC Sec. 1426 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1426. Capital structure of Federal home loan banks

-STATUTE-

(a) Regulations

(1) Capital standards

Not later than 18 months after November 12, 1999, the Finance

Board shall issue regulations prescribing uniform capital

standards applicable to each Federal home loan bank, which shall

require each such bank to meet -

(A) the leverage requirement specified in paragraph (2); and

(B) the risk-based capital requirements, in accordance with

paragraph (3).

(2) Leverage requirement

(A) In general

The leverage requirement shall require each Federal home loan

bank to maintain a minimum amount of total capital based on the

total assets of the bank and shall be 5 percent.

(B) Treatment of stock and retained earnings

In determining compliance with the minimum leverage ratio

established under subparagraph (A), the paid-in value of the

outstanding Class B stock and the amount of retained earnings

shall be multiplied by 1.5, and such higher amounts shall be

deemed to be capital for purposes of meeting the 5 percent

minimum leverage ratio, except that a Federal home loan bank's

total capital (determined without taking into account any such

multiplier) shall not be less than 4 percent of the total

assets of the bank.

(3) Risk-based capital standards

(A) In general

Each Federal home loan bank shall maintain permanent capital

in an amount that is sufficient, as determined in accordance

with the regulations of the Finance Board, to meet -

(i) the credit risk to which the Federal home loan bank is

subject; and

(ii) the market risk, including interest rate risk, to

which the Federal home loan bank is subject, based on a

stress test established by the Finance Board that rigorously

tests for changes in market variables, including changes in

interest rates, rate volatility, and changes in the shape of

the yield curve.

(B) Consideration of other risk-based standards

In establishing the risk-based standard under subparagraph

(A)(ii), the Finance Board shall take due consideration of any

risk-based capital test established pursuant to section 1361 of

the Federal Housing Enterprises Financial Safety and Soundness

Act of 1992 (12 U.S.C. 4611) for the enterprises (as defined in

that Act (12 U.S.C. 4501 et seq.)), with such modifications as

the Finance Board determines to be appropriate to reflect

differences in operations between the Federal home loan banks

and those enterprises.

(4) Other regulatory requirements

The regulations issued by the Finance Board under paragraph (1)

shall -

(A) permit each Federal home loan bank to issue, with such

rights, terms, and preferences, not inconsistent with this

chapter and the regulations issued hereunder, as the board of

directors of that bank may approve, any 1 or more of -

(i) Class A stock, which shall be redeemable in cash and at

par 6 months following submission by a member of a written

notice of its intent to redeem such shares; and

(ii) Class B stock, which shall be redeemable in cash and

at par 5 years following submission by a member of a written

notice of its intent to redeem such shares;

(B) provide that the stock of a Federal home loan bank may be

issued to and held by only members of the bank, and that a bank

may not issue any stock other than as provided in this section;

loan bank may be sold, transferred, redeemed, or repurchased;

and

(D) provide the manner of disposition of outstanding stock

held by, and the liquidation of any claims of the Federal home

loan bank against, an institution that ceases to be a member of

the bank, through merger or otherwise, or that provides notice

of intention to withdraw from membership in the bank.

(5) Definitions of capital

For purposes of determining compliance with the capital

standards established under this subsection -

(A) permanent capital of a Federal home loan bank shall

include -

(i) the amounts paid for the Class B stock; and

(ii) the retained earnings of the bank (as determined in

accordance with generally accepted accounting principles);

and

(B) total capital of a Federal home loan bank shall include -

(i) permanent capital;

(ii) the amounts paid for the Class A stock;

(iii) consistent with generally accepted accounting

principles, and subject to the regulation of the Finance

Board, a general allowance for losses, which may not include

any reserves or allowances made or held against specific

assets; and

(iv) any other amounts from sources available to absorb

losses incurred by the bank that the Finance Board determines

by regulation to be appropriate to include in determining

total capital.

(6) Transition period

Notwithstanding any other provision of this chapter, the

requirements relating to purchase and retention of capital stock

of a Federal home loan bank by any member thereof in effect on

the day before November 12, 1999, shall continue in effect with

respect to each Federal home loan bank until the regulations

required by this subsection have taken effect and the capital

structure plan required by subsection (b) of this section has

been approved by the Finance Board and implemented by such bank.

(b) Capital structure plan

(1) Approval of plans

Not later than 270 days after the date of publication by the

Finance Board of final regulations in accordance with subsection

(a) of this section, the board of directors of each Federal home

loan bank shall submit for Finance Board approval a plan

establishing and implementing a capital structure for such bank

that -

(A) the board of directors determines is best suited for the

condition and operation of the bank and the interests of the

members of the bank;

(B) meets the requirements of subsection (c) of this section;

and

established under subsection (a) of this section and other

regulations prescribed by the Finance Board.

(2) Approval of modifications

The board of directors of a Federal home loan bank shall submit

to the Finance Board for approval any modifications that the bank

proposes to make to an approved capital structure plan.

The capital structure plan of each Federal home loan bank shall

contain provisions addressing each of the following:

(1) Minimum investment

(A) In general

Each capital structure plan of a Federal home loan bank shall

require each member of the bank to maintain a minimum

investment in the stock of the bank, the amount of which shall

be determined in a manner to be prescribed by the board of

directors of each bank and to be included as part of the plan.

(B) Investment alternatives

(i) In general

In establishing the minimum investment required for each

member under subparagraph (A), a Federal home loan bank may,

in its discretion, include any 1 or more of the requirements

referred to in clause (ii), or any other provisions approved

by the Finance Board.

(ii) Authorized requirements

A requirement is referred to in this clause if it is a

requirement for -

(I) a stock purchase based on a percentage of the total

assets of a member; or

(II) a stock purchase based on a percentage of the

outstanding advances from the bank to the member.

Each capital structure plan of a Federal home loan bank shall

require that the minimum stock investment established for

members shall be set at a level that is sufficient for the bank

to meet the minimum capital requirements established by the

Finance Board under subsection (a) of this section.

(D) Adjustments to minimum required investment

The capital structure plan of each Federal home loan bank

shall impose a continuing obligation on the board of directors

of the bank to review and adjust the minimum investment

required of each member of that bank, as necessary to ensure

that the bank remains in compliance with applicable minimum

capital levels established by the Finance Board, and shall

require each member to comply promptly with any adjustments to

the required minimum investment.

(2) Transition rule

(A) In general

The capital structure plan of each Federal home loan bank

shall specify the date on which it shall take effect, and may

provide for a transition period of not longer than 3 years to

allow the bank to come into compliance with the capital

requirements prescribed under subsection (a) of this section,

and to allow any institution that was a member of the bank on

November 12, 1999, to come into compliance with the minimum

investment required pursuant to the plan.

(B) Interim purchase requirements

The capital structure plan of a Federal home loan bank may

allow any member referred to in subparagraph (A) that would be

required by the terms of the capital structure plan to increase

its investment in the stock of the bank to do so in periodic

installments during the transition period.

(3) Disposition of shares

The capital structure plan of a Federal home loan bank shall

provide for the manner of disposition of any stock held by a

member of that bank that terminates its membership or that

provides notice of its intention to withdraw from membership in

that bank.

(4) Classes of stock

(A) In general

The capital structure plan of a Federal home loan bank shall

afford each member of that bank the option of maintaining its

required investment in the bank through the purchase of any

combination of classes of stock authorized by the board of

directors of the bank and approved by the Finance Board in

accordance with its regulations.

(B) Rights requirement

A Federal home loan bank shall include in its capital

structure plan provisions establishing terms, rights, and

preferences, including minimum investment, dividends, voting,

and liquidation preferences of each class of stock issued by

the bank, consistent with Finance Board regulations and market

requirements.

The capital structure plan of a Federal home loan bank may

provide for a reduced minimum stock investment for any member

of that bank that elects to purchase Class B (FOOTNOTE 1) in a

manner that is consistent with meeting the minimum capital

requirements of the bank, as established by the Finance Board.

(FOOTNOTE 1) So in original. Probably should be ''Class B

stock''.

(D) Liquidation of claims

The capital structure plan of a Federal home loan bank shall

provide for the liquidation in an orderly manner, as determined

by the bank, of any claim of that bank against a member,

including claims for any applicable prepayment fees or

penalties resulting from prepayment of advances prior to stated

maturity.

(5) Limited transferability of stock

The capital structure plan of a Federal home loan bank shall -

(A) provide that any stock issued by that bank shall be

available only to and held only by members of that bank and

tradable only between that bank and its members; and

(B) establish standards, criteria, and requirements for the

issuance, purchase, transfer, retirement, and redemption of

stock issued by that bank.

(6) Bank review of plan

Before filing a capital structure plan with the Finance Board,

each Federal home loan bank shall conduct a review of the plan by

(A) an independent certified public accountant, to ensure, to

the extent possible, that implementation of the plan would not

result in any write-down of the redeemable bank stock

investment of its members; and

(B) at least one major credit rating agency, to determine, to

the extent possible, whether implementation of the plan would

have any material effect on the credit ratings of the bank.

(d) Termination of membership

(1) Voluntary withdrawal

Any member may withdraw from a Federal home loan bank if the

member provides written notice to the bank of its intent to do so

and if, on the date of withdrawal, there is in effect a

certification by the Finance Board that the withdrawal will not

cause the Federal Home Loan Bank System to fail to meet its

obligation under section 1441b(f)(2)(C) of this title to

contribute to the debt service for the obligations issued by the

Resolution Funding Corporation. The applicable stock redemption

notice periods shall commence upon receipt of the notice by the

bank. Upon the expiration of the applicable notice period for

each class of redeemable stock, the member may surrender such

stock to the bank, and shall be entitled to receive in cash the

par value of the stock. During the applicable notice periods,

the member shall be entitled to dividends and other membership

rights commensurate with continuing stock ownership.

(2) Involuntary withdrawal

(A) In general

The board of directors of a Federal home loan bank may

terminate the membership of any institution if, subject to

Finance Board regulations, it determines that -

(i) the member has failed to comply with a provision of

this chapter or any regulation prescribed under this chapter;

(ii) the member has been determined to be insolvent, or

otherwise subject to the appointment of a conservator,

receiver, or other legal custodian, by a Federal or State

authority with regulatory and supervisory responsibility for

the member.

(B) Stock disposition

An institution, the membership of which is terminated in

accordance with subparagraph (A) -

(i) shall surrender redeemable stock to the Federal home

loan bank, and shall receive in cash the par value of the

stock, upon the expiration of the applicable notice period

under subsection (a)(4)(A) of this section;

(ii) shall receive any dividends declared on its redeemable

stock, during the applicable notice period under subsection

(a)(4)(A) of this section; and

(iii) shall not be entitled to any other rights or

privileges accorded to members after the date of the

termination.

With respect to an institution, the membership of which is

terminated in accordance with subparagraph (A), the applicable

notice period under subsection (a)(4) of this section for each

class of redeemable stock shall commence on the earlier of -

(i) the date of such termination; or

(ii) the date on which the member has provided notice of

its intent to redeem such stock.

(3) Liquidation of indebtedness

Upon the termination of the membership of an institution for

any reason, the outstanding indebtedness of the member to the

bank shall be liquidated in an orderly manner, as determined by

the bank and, upon the extinguishment of all such indebtedness,

the bank shall return to the member all collateral pledged to

secure the indebtedness.

(e) Redemption of excess stock

(1) In general

A Federal home loan bank, in its sole discretion, may redeem or

repurchase, as appropriate, any shares of Class A or Class B

stock issued by the bank and held by a member that are in excess

of the minimum stock investment required of that member.

(2) Excess stock

Shares of stock held by a member shall not be deemed to be

''excess stock'' for purposes of this subsection by virtue of a

member's submission of a notice of intent to withdraw from

membership or termination of its membership in any other manner.

(3) Priority

A Federal home loan bank may not redeem any excess Class B

stock prior to the end of the 5-year notice period, unless the

member has no Class A stock outstanding that could be redeemed as

excess.

(f) Impairment of capital

If the Finance Board or the board of directors of a Federal home

loan bank determines that the bank has incurred or is likely to

incur losses that result in or are expected to result in charges

against the capital of the bank, the bank shall not redeem or

repurchase any stock of the bank without the prior approval of the

Finance Board while such charges are continuing or are expected to

continue. In no case may a bank redeem or repurchase any

applicable capital stock if, following the redemption, the bank

would fail to satisfy any minimum capital requirement.

(g) Rejoining after divestiture of all shares

(1) In general

Except as provided in paragraph (2), and notwithstanding any

other provision of this chapter, an institution that divests all

shares of stock in a Federal home loan bank may not, after such

divestiture, acquire shares of any Federal home loan bank before

the end of the 5-year period beginning on the date of the

completion of such divestiture, unless the divestiture is a

consequence of a transfer of membership on an uninterrupted basis

between banks.

(2) Exception for withdrawals from membership before 1998

Any institution that withdrew from membership in any Federal

home loan bank before December 31, 1997, may acquire shares of a

Federal home loan bank at any time after that date, subject to

the approval of the Finance Board and the requirements of this

chapter.

(h) Treatment of retained earnings

(1) In general

The holders of the Class B stock of a Federal home loan bank

shall own the retained earnings, surplus, undivided profits, and

equity reserves, if any, of the bank.

(2) Exception

Except as specifically provided in this section or through the

declaration of a dividend or a capital distribution by a Federal

home loan bank, or in the event of liquidation of the bank, a

member shall have no right to withdraw or otherwise receive

distribution of any portion of the retained earnings of the bank.

(3) Limitation

A Federal home loan bank may not make any distribution of its

retained earnings unless, following such distribution, the bank

would continue to meet all applicable capital requirements.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 6, 47 Stat. 727; June 27, 1934, ch.

847, Sec. 509, 48 Stat. 1264; May 28, 1935, ch. 150, Sec. 2, 49

Stat. 293; June 27, 1950, ch. 369, Sec. 2, 64 Stat. 257; Aug. 11,

1955, ch. 783, title I, Sec. 109(a)(1), 69 Stat. 640; Pub. L.

87-210, Sec. 1, 2, Sept. 8, 1961, 75 Stat. 482, 483; Pub. L.

96-153, title III, Sec. 327, Dec. 21, 1979, 93 Stat. 1121; Pub. L.

97-320, title III, Sec. 353, 355, Oct. 15, 1982, 96 Stat. 1507,

1508; Pub. L. 97-457, Sec. 16, Jan. 12, 1983, 96 Stat. 2509; Pub.

L. 101-73, title VII, Sec. 701(b)(1), (3)(A), 706, 710(b)(2), (3),

715, Aug. 9, 1989, 103 Stat. 412, 416, 418, 421; Pub. L. 106-102,

title VI, Sec. 608, Nov. 12, 1999, 113 Stat. 1456; Pub. L. 106-569,

title XII, Sec. 1224, Dec. 27, 2000, 114 Stat. 3036.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Housing Enterprises Financial Safety and Soundness

Act of 1992, referred to in subsec. (a)(3)(B), is title XIII of

Pub. L. 102-550, Oct. 28, 1992, 106 Stat. 3941, which is classified

principally to chapter 46 (Sec. 4501 et seq.) of this title. For

complete classification of this Act to the Code, see Short Title

note under section 4501 of this title and Tables.

-MISC2-

AMENDMENTS

2000 - Subsec. (a)(1). Pub. L. 106-569 substituted ''18 months''

for ''1 year'' in introductory provisions.

1999 - Pub. L. 106-102 amended section generally, substituting

present provisions for provisions authorizing banks to issue

capital stock and providing for minimum subscriptions, retirement

of oversubscriptions, cancellation of oversubscriptions, aggregate

unpaid loan principal, reports and information, payments for stock,

transfer or hypothecation of stock, withdrawal or removal of

members, surrender and cancellation of stock, prepayment penalties,

disposal of stock, dividends, and acquisition of membership after

expiration of period of withdrawal.

1989 - Subsec. (a). Pub. L. 101-73, Sec. 701(b)(1), (3)(A),

706(1), redesignated subsec. (b) as (a), substituted ''Board'' for

''board'', and struck out former subsec. (a) which related to

minimum amount of capital stock and subscription books.

Subsec. (b). Pub. L. 101-73, Sec. 701(b)(1), (3)(A), 706(1),

redesignated subsec. (c) as (b) and substituted ''Board may'' for

''Federal Home Loan Bank Board may'' in par. (1), and ''The Board''

for ''The Federal Home Loan Bank Board'' in par. (5). Former

subsec. (b) redesignated (a).

Subsecs. (c), (d). Pub. L. 101-73, Sec. 706(1), redesignated

subsecs. (d) and (h) as (c) and (d), respectively. Former subsec.

Subsec. (e). Pub. L. 101-73, Sec. 710(b)(3), which directed

amendment of subsec. (e) by striking out ''or deprive any nonmember

borrower of the privilege of further advances,'' after ''remove any

member from membership,'' was executed by striking ''or deprive any

nonmember borrower of the privilege of obtaining further

advances,'' as the probable intent of Congress.

Pub. L. 101-73, Sec. 710(b)(2), struck out ''or nonmember

borrower'' after ''such member'' wherever appearing.

Pub. L. 101-73, Sec. 706(2), substituted ''If any member's

membership in a Federal Home Loan Bank is terminated, the

indebtedness of such member to the Federal Home Loan Bank shall be

liquidated in an orderly manner (as determined by the Federal Home

Loan Bank), and upon completion of such liquidation, the capital

stock in the Federal Home Loan Bank owned by such member shall be

surrendered and canceled. Any such liquidation shall be deemed a

prepayment of any such indebtedness, and shall be subject to any

penalties or other fees applicable to such prepayment.'' for ''In

any such case, the indebtedness of such member or nonmember

borrower to the Federal Home Loan Bank shall be liquidated, and the

capital stock in the Federal Home Loan Bank owned by such member

shall be surrendered and canceled, except that in the case of a

voluntary withdrawal, such liquidation shall be deemed a prepayment

of any such indebtedness, and shall be subject to any penalties

applicable to such prepayment.''

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), 706(1), redesignated

subsec. (i) as (e), substituted ''Board'' for ''board'' wherever

appearing, and struck out former subsec. (e) which related to loans

to institutions not authorized to subscribe to stock.

Subsec. (f). Pub. L. 101-73, Sec. 701(b)(1), (3)(A), 706(1),

redesignated subsec. (j) as (f), substituted ''Board'' for

''board'', and struck out former subsec. (f) which related to

subscription by United States, maximum amounts, and payments.

Subsec. (g). Pub. L. 101-73, Sec. 706(1), redesignated subsec.

(k) as (g) and struck out former subsec. (g) which related to

retirement of stock of United States.

Subsec. (h). Pub. L. 101-73, Sec. 715, substituted ''10'' for

''five''.

Pub. L. 101-73, Sec. 706(3), substituted ''charter as a Federal

savings association (as defined in section 1813 of this title)''

for ''charter from the Federal Home Loan Bank Board''.

Pub. L. 101-73, Sec. 706(1), redesignated subsec. (m) as (h).

Former subsec. (h) redesignated (d).

Subsecs. (i) to (k). Pub. L. 101-73, Sec. 706(1), redesignated

former subsecs. (i) to (k) as (e) to (g), respectively.

Subsec. (m). Pub. L. 101-73, Sec. 706(1), redesignated former

subsec. (m) as (h).

1983 - Subsec. (m). Pub. L. 97-457 substituted ''banks or in

connection with obtaining a charter from the Federal Home Loan Bank

Board'' for ''Banks'' after ''between''.

1982 - Subsec. (c)(2). Pub. L. 97-320, Sec. 353, struck out cl.

(i) limitations which had prohibited members from reducing stock to

less than the amount held on Sept. 8, 1961, except for a reduction

at any time to not less than 2 percent of its aggregate unpaid loan

principal as of the beginning of the calendar year in which

reduction was made, but not less than $500, or if reduced to less

than 2 percent, such reduction to be in the discretion of the

Board; and reenacted cl. (ii) limitations as par. (2), substituting

''the Board defining such term'' for ''said Board defining said

term''.

Subsec. (i). Pub. L. 97-320, Sec. 355(a), provided for treatment

of a liquidation of indebtedness, in the case of a voluntary

withdrawal of an institution from membership, as a prepayment of

the indebtedness, subject to applicable prepayment penalties.

Subsec. (m). Pub. L. 97-320, Sec. 355(b), added subsec. (m).

1979 - Subsec. (c)(2)(ii). Pub. L. 96-153 substituted ''twenty''

for ''twelve''.

1961 - Subsec. (c). Pub. L. 87-210, Sec. 1, amended subsection

generally, and among other changes, authorized the bank to adjust

at the end of each calendar year, under Board regulations, the

stock held by each member, to retire stock of members in excess of

required amounts, prohibited members to reduce stock to less than

the amount held on Sept. 8, 1961, except for a reduction at any

time to not less than 2 percent of its aggregate unpaid loan

principal as of the beginning of the calendar year in which

reduction is made, but not less than $500, or if reduced to less

than 2 percent, such reduction to be in the discretion of the

Board, provided that no bank shall act so as to cause the aggregate

outstanding advances, within the meaning of regulations of the

Board defining said term, to exceed 12 times the amounts paid in by

members for outstanding capital stock held by such members, defined

term ''aggregate unpaid loan principal'' and authorized the board

to require members to submit reports and information for purposes

of this subsection.

Subsec. (l). Pub. L. 87-210, Sec. 2, repealed subsec. (l) which

required members to acquire, hold and maintain their stock holding

in an amount equal to at least 2 per centum of the aggregate of the

unpaid principal of such member's home mortgage loans,

home-purchase contracts, and similar obligations, but not less than

$500, and provided for the retirement of Government-owned stock.

1955 - Subsec. (i). Act Aug. 11, 1955, provided that a Federal

savings and loan association may not withdraw voluntarily, inserted

proviso clause in item (ii), and inserted provisions authorizing

removal of a member institution which has a management or

home-financing policy of a character inconsistent with sound and

economical home financing or with the purposes of this chapter.

1950 - Subsec. (l). Act June 27, 1950, added subsec. (l).

1935 - Subsec. (k). Act May 28, 1935, omitted exception clause

relating to stock held by the United States.

1934 - Subsecs. (c), (e). Act June 27, 1934, substituted ''$500''

for ''$1,500''.

EFFECTIVE DATE OF 1961 AMENDMENT

Section 7 of Pub. L. 87-210 provided that: ''This Act (amending

this section and section 1727 of this title and enacting provisions

set out as a note under section 1727 of this title) shall become

effective on January 1 next following the date of its enactment

(Sept. 8, 1961).''

-CITE-

12 USC Sec. 1427 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1427. Directors

-STATUTE-

(a) Number; appointment and election; qualifications; conflicts of

interest

The management of each Federal home loan bank shall be vested in

a board of fourteen directors, eight of whom shall be elected by

the members as hereinafter provided in this section and six of whom

shall be appointed by the Board referred to in section 1422a of

this title, all of whom shall be citizens of the United States, and

each of whom shall be either a bona fide resident of the district

in which such bank is located or an officer or director of a member

of such bank located in that district: Provided, That in any

district which includes five or more States the Board may by

regulation increase the elective directors to a number not

exceeding thirteen and may increase the appointive directors to a

number not exceeding three-fourths 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 the next preceding proviso so

as to increase such elective directors to a number at least equal

to the number of States in such district. At least 2 of the

Federal Home Loan Bank directors who are appointed by the Board

shall be representatives chosen from organizations with more than a

2-year history of representing consumer or community interests on

banking services, credit needs, housing, or financial consumer

protections. No Federal Home Loan Bank director who is appointed

pursuant to this subsection may, during such Bank director's term

of office, serve as an officer of any Federal Home Loan Bank or a

director or officer of any member of a Bank, or hold shares, or any

other financial interest in, any member of a Bank.

(b) Elective directorships; qualifications; nominations and

election

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 chapter 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 chapter to be held at the end of such calendar

year by the respective members of such bank located in such State,

as so determined. No person who is an officer or director of a

member that fails to meet any applicable capital requirement is

eligible to hold the office of Federal Home Loan Bank director. 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.

State location

The number of elective directorships designated as representing

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 provision of this

section, if at any time the number of elective directorships 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 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) Terms; rules and regulations governing nominations and

elections

The term of each director, whether elected or appointed, shall be

3 years. The board of directors of each Federal home loan bank and

the Finance Board shall adjust the terms of members first elected

or appointed after November 12, 1999, to ensure that the terms of

the members of the board of directors are staggered with

approximately 1/3 of the terms expiring each year. If any person,

before or after, or partly before and partly after, September 8,

1961, has been elected to each of three consecutive 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 authorized to prescribe

such rules and regulations as it may deem necessary or appropriate

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) Continuation of existing terms; directorship for the

Commonwealth of Puerto Rico

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, the District of

Columbia, and the Commonwealth of Puerto Rico. The Board, by

regulation or otherwise, may add an additional elective

directorship to the board of directors of the bank of any district

in which the Commonwealth of Puerto Rico is included at the time

such directorship is added and which does not then include five or

more States, may fix the commencement and the duration, which shall

not exceed two years, of the initial term of any directorship so

added, and may fill any such initial term by appointment: Provided,

That (1) any directorship added pursuant to the foregoing

provisions of this sentence shall be designated by the Board,

pursuant to subsection (b) of this section, as representing the

members located in the Commonwealth of Puerto Rico, (2) such

designation of such directorship shall not be changed, and (3) such

directorship shall automatically cease to exist if and when the

Commonwealth of Puerto Rico ceases to be included in such district.

(f) Vacancies

(1) In general

A Bank director appointed or elected to fill a vacancy shall be

appointed or elected for the unexpired term of his or her

predecessor in office.

(2) Appointed Bank directors

In the event of a vacancy in any appointive Bank directorship,

such vacancy shall be filled through appointment by the Board for

the unexpired term. If any appointive Bank director shall cease

to have the qualifications set forth in subsection (a) of this

section, the office held by such person shall immediately become

vacant, but such person may continue to act as a Bank director

until his or her successor assumes the vacated office or the term

of such office expires, whichever occurs first.

(3) Elected Bank directors

In the event of a vacancy in any elective Bank directorship,

such vacancy shall be filled by an affirmative vote of a majority

of the remaining Bank directors, regardless of whether such

remaining Bank directors constitute a quorum of the Bank's board

of directors. A Bank director so elected shall satisfy the

requirements for eligibility which were applicable to his

predecessor. If any elective Bank director shall cease to have

any qualification set forth in this section, the office held by

such person shall immediately become vacant, and such person

shall not continue to act as a Bank director.

(g) Chairperson and Vice Chairperson

(1) Election

The Chairperson and Vice Chairperson of the board of directors

of each Federal home loan bank shall be elected by a majority of

all the directors of such bank from among the directors of the

bank.

(2) Terms

The term of office of the Chairperson and the Vice Chairperson

of the board of directors of a Federal home loan bank shall be 2

years.

(3) Acting Chairperson

In the event of a vacancy in the position of Chairperson of the

board of directors or during the absence or disability of the

Chairperson, the Vice Chairperson shall act as Chairperson.

(4) Procedures

The board of directors of each Federal home loan bank shall

establish procedures, in the bylaws of such board, for

designating an acting chairperson for any period during which the

Chairperson and the Vice Chairperson are not available to carry

out the requirements of that position for any reason and removing

any person from any such position for good cause.

(h) Appointment where members hold less than $1,000,000 of capital

stock

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 or places for which such nominations are required, and the

Board may, prior to the filing of the certificate mentioned in

section 1432 of this title, appoint directors who shall be

respectively designated by it as appointive directors and as

elective directors, in accordance with the provisions of this

section.

(i) Directors' compensation

(1) In general

Subject to paragraph (2), each bank may pay its directors

reasonable compensation for the time required of them, and their

necessary expenses, in the performance of their duties, in

accordance with the resolutions adopted by such directors,

subject to the approval of the board.

(2) Limitation

(A) In general

The annual salary of each of the following members of the

board of directors of a Federal home loan bank may not exceed

the amount specified:

In the case of the - The annual compensation

may not exceed -

Chairperson $25,000

Vice Chairperson $20,000

All other members $15,000.

(B) Adjustment

Beginning January 1, 2001, each dollar amount referred to in

the table in subparagraph (A) shall be adjusted annually by the

Finance Board, based on the annual percentage increase, if any,

in the Consumer Price Index for all urban consumers, as

published by the Department of Labor.

Subparagraph (A) shall not be construed as prohibiting the

reimbursement of expenses incurred by members of the board of

directors of any Federal home loan bank in connection with

service on the board of directors.

(j) Duties of directors

Such board of directors shall administer the affairs of the bank

fairly and impartially and without discrimination in favor of or

against any member, and shall, subject to the provisions hereof,

extend to each institution authorized to secure advances such

advances as may be made safely and reasonably with due regard for

the claims and demands of other institutions, and with due regard

to the maintenance of adequate credit standing for the Federal Home

Loan Bank and its obligations.

(k) Indemnification of directors, officers, and employees

The board of directors of each Bank shall determine the terms and

conditions under which such Bank may indemnify its directors,

officers, employees or agents.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 7, 47 Stat. 730; May 28, 1935, ch.

150, Sec. 3, 49 Stat. 294; Aug. 11, 1955, ch. 783, title I, Sec.

109(a)(2), 69 Stat. 640; Pub. L. 86-349, Sec. 1, 2, Sept. 22, 1959,

73 Stat. 625; Pub. L. 87-211, Sec. 1, Sept. 8, 1961, 75 Stat. 486;

Pub. L. 87-676, Sept. 19, 1962, 76 Stat. 559; Pub. L. 93-541, Sec.

3, Dec. 26, 1974, 88 Stat. 1739; Pub. L. 101-73, title VII, Sec.

707, 710(b)(4), Aug. 9, 1989, 103 Stat. 417, 418; Pub. L. 106-102,

title VI, Sec. 606(a), (b), Nov. 12, 1999, 113 Stat. 1452, 1453.)

-REFTEXT-

REFERENCES IN TEXT

The effective date of the amendment to this section, referred to

in subsec. (e), probably means the effective date of Pub. L.

87-211. See Effective Date of 1961 Amendment note below.

-MISC2-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-102, Sec. 606(a)(1), substituted

'', and each of whom shall be either a bona fide resident of the

district in which such bank is located or an officer or director of

a member of such bank located in that district'' for ''and bona

fide residents of the district in which such bank is located''.

Subsec. (d). Pub. L. 106-102, Sec. 606(a)(2), substituted ''The

term of each director, whether elected or appointed, shall be 3

years. The board of directors of each Federal home loan bank and

the Finance Board shall adjust the terms of members first elected

or appointed after November 12, 1999, to ensure that the terms of

the members of the board of directors are staggered with

approximately 1/3 of the terms expiring each year.'' for ''The term

of each elective directorship shall be two years and the term of

each appointive directorship shall be four years.''

Subsec. (g). Pub. L. 106-102, Sec. 606(a)(3), added subsec. (g)

and struck out former subsec. (g) which read as follows: ''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.''

Subsec. (i). Pub. L. 106-102, Sec. 606(b), inserted heading,

designated existing provisions as par. (1), inserted heading,

substituted ''Subject to paragraph (2), each bank may pay its

directors'' for ''Each bank may pay its directors'', and added par.

(2).

1989 - Subsec. (a). Pub. L. 101-73, Sec. 707(1), inserted

provisions relating to requirements for at least 2 of the directors

and provisions respecting conflicts of interests, and substituted

provisions relating to appointment under section 1422a of this

title for provisions relating to appointment under section 1437(b)

of this title.

Subsec. (b). Pub. L. 101-73, Sec. 707(2), inserted after first

sentence ''No person who is an officer or director of a member that

fails to meet any applicable capital requirement is eligible to

hold the office of Federal Home Loan Bank director.''

Subsec. (f). Pub. L. 101-73, Sec. 707(3), amended subsec. (f)

generally. Prior to amendment, subsec. (f) read as follows: ''In

the event of a vacancy in any appointive or elective directorship,

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) of this

section, 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.''

Subsec. (j). Pub. L. 101-73, Sec. 710(b)(4), struck out ''or

nonmember borrower'' after ''against any member''.

Subsec. (k). Pub. L. 101-73, Sec. 707(4), added subsec. (k).

1974 - Subsec. (a). Pub. L. 93-541 increased number of directors

from twelve to fourteen, increased number of appointive directors

from four to six, and in proviso relating to districts including

five or more States, substituted provisions authorizing increase of

appointive directors to a number not exceeding three-fourths the

number of elective directors for provisions authorizing increase of

appointive directors to a number not exceeding one-half the number

of elective directors.

1962 - Subsec. (e). Pub. L. 87-676 included Commonwealth of

Puerto Rico within term ''States'' or ''State'', and authorized

Board to add an additional elective directorship to board of bank

of any district in which Commonwealth of Puerto Rico is included at

time such directorship is added and which doesn't include five or

more States, and to fill such initial term by appointment,

provided, that any such added directorship shall be designated as

representing members in Commonwealth of Puerto Rico, that such

designation shall not be changed, and that such directorship shall

cease to exist if and when Commonwealth of Puerto Rico ceases to be

included in such district.

1961 - Subsec. (a). Pub. L. 87-211 authorized Board to increase

appointive directors in any district which includes five or more

States to a number not exceeding one-half number of elective

directors, directed Board to exercise its authority to increase the

elective directors to a number at least equal to number of States

in a district whenever number of elective directors in district is

not at least equal to number of States in district, and struck out

provisions which related to apportionment of additional elective

directors, required at least one but not more than three elective

directors from any of the States in any district in which number of

elective directors is increased, limited number of elective

directors in any one district to not more than eleven, and defined

term ''States''. See subsec. (c) of this section.

Subsec. (b). Pub. L. 87-211 amended subsection generally,

substituting provisions relating to designation of elective

directorships, nominations for such office, manner of election, and

voting power of each member, for provisions which required four

directors to be appointed by Board, limited their term of office to

four years, and which authorized Board to increase total number of

appointive directors to not more than one-half total number of

elective directors in cases where number of elective directors has

been increased. See subsec. (a) of this section.

Subsec. (c). Pub. L. 87-211 required number of elective

directorships designated as representing members located in each

separate State in a bank district to be determined by Board in

approximate ratio of percentage of required stock of members

located in that State at end of calendar year next preceding date

of election to total required stock of all members of such bank at

end of such year, except that in case of each State such number

shall not be less than one and not more than six, directed Board,

in cases where number of elective directorships in any State would

not be at least equal to total number of elective directorships in

such State on Dec. 31, 1960, to add such number of elective

directorships so that their number will equal such total number,

provided that an elective directorship so added shall exist only

until expiration of its first term, authorized designation of State

location of each member, defined terms ''total number of elective

directorships'' and ''members'', and struck out provisions which

related to election of two directors from each of classes A, B, and

C and limited their term of office to two years. See subsec. (d)

of this section.

Subsec. (d). Pub. L. 87-211 established term of each elective

directorship at two years and of each appointive directorship at

four years, restricted eligibility for election of persons elected

to each of three consecutive full terms and who have served for all

or part of each of said terms, empowered Board to prescribe rules

and regulations for nomination and election of directors, and

struck out provisions which required two directors to be elected by

members of bank without regard to classes and limited their term of

office to two years.

Subsec. (e). Pub. L. 87-211 amended subsection generally,

substituting provisions permitting continuation of terms of

elective and appointive directorships, empowering Board to shorten

next succeeding term of any elective directorship to one year and

to fill such term by appointment, defining terms ''States'' and

''State'', for provisions which required the Board to divide

members of each bank into either group A, B, or C, permitted each

member to nominate persons for election as directors of class

corresponding to group to which member belongs, and limited each

member to one vote for each director in its class.

Subsec. (f). Pub. L. 87-211 substituted ''In the event of a

vacancy in any appointive or elective directorship, such vacancy

shall be filled through appointment by the Board for the unexpired

term'' for ''Any director appointed or elected as provided in this

section to fill a vacancy shall hold office only until the

expiration of the term of his predecessor'', and inserted proviso

stating that if any director ceases to have the qualifications set

forth in this section his office shall immediately become vacant

but permits him to act as such director until his successor assumes

the vacated office or the term of his office expires, whichever

first occurs.

Subsec. (g). Pub. L. 87-211 reenacted subsec. (g) without change.

Subsec. (h). Pub. L. 87-211 authorized Board, prior to filing of

the certificate mentioned in section 1432 of this title, to appoint

directors and required Board to designate appointees as either

appointive or elective directors, and struck out provisions which

permitted directors appointed under this subsection to serve until

expiration of the calendar year during which they took office.

1959 - Subsec. (a). Pub. L. 86-349, Sec. 1, authorized increase

of up to 13 in number of elective directors of bank having district

which includes five or more States.

Subsec. (b). Pub. L. 86-349, Sec. 2, authorized increase in

number of appointive directors of up to one-half number of elective

directors in district in which number of elective directors were

increased pursuant to subsec. (a), and provided for expiration of

term of initial incumbent of any office so established.

1955 - Subsec. (a). Act Aug. 11, 1955, authorized an increase in

number of elective directors of any Federal Home Loan Bank having a

district which includes five or more States.

1935 - Act May 28, 1935, amended subsecs. (a) to (c) generally,

added subsec. (d), and redesignated former subsecs. (d) to (i) as

(e) to (j).

EFFECTIVE DATE OF 1961 AMENDMENT

Section 2 of Pub. L. 87-211 provided that: ''The amendment made

by this Act (amending this section) shall take effect on the second

day of the first calendar year which begins after the date of

enactment of this Act (Sept. 8, 1961).''

EFFECTIVE DATE OF 1935 AMENDMENT

Section 3 of act May 28, 1935, provided that the amendment made

by that section is effective Jan. 1, 1936.

-CITE-

12 USC Sec. 1428 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1428. Examination of State laws, regulations, and procedures;

studies of values, etc.

-STATUTE-

The Board shall cause to be made from time to time examinations

of the laws of the various States of the United States and the

regulations and procedure thereunder governing conditions under

which institutions of the kinds which may become members or

nonmember borrowers under this chapter are permitted to be formed

or to do business, or relating to the conveying or recording of

land titles, or to homestead and other rights, or to the

enforcement of the rights of holders of mortgages on lands securing

loans, or otherwise. If any such examination shall indicate, in

the opinion of the Board, that under the laws of any such State or

the regulations or procedure thereunder there would be inadequate

protection to a Federal Home Loan Bank in making or collecting

advances under this chapter, the Board may withhold or limit the

operation of any Federal Home Loan Bank in such State until

satisfactory conditions of law, regulation, or procedure shall be

established. In any State where State examination of members or

nonmember borrowers is deemed inadequate for the purposes of the

Federal Home Loan Banks, the Board shall establish such

examination, all or part of the cost of which may be considered as

part of the cost of making advances in such State. The banks and/or

the Board may make studies of trends of home and other property

values, methods of appraisals, and other subjects such as they may

deem useful for the general guidance of their policies and

operations and those of institutions authorized to secure advances.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 8, 47 Stat. 731; Pub. L. 101-73,

title VII, Sec. 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 substituted ''Board'' for ''board''

wherever appearing.

-CITE-

12 USC Sec. 1428a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1428a. Repealed. Pub. L. 101-73, title VII, Sec. 718, Aug. 9,

1989, 103 Stat. 422

-MISC1-

Section, act July 22, 1932, ch. 522, Sec. 8a, as added May 28,

1935, ch. 150, Sec. 4, 49 Stat. 294; amended 1947 Reorg. Plan No.

3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954; Dec. 26, 1974,

Pub. L. 93-541, Sec. 6, 88 Stat. 1739; Oct. 15, 1982, Pub. L.

97-320, title III, Sec. 354, 96 Stat. 1508, established Federal

Savings and Loan Advisory Council.

-CITE-

12 USC Sec. 1429 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1429. Eligibility to secure advances

-STATUTE-

Any member of a Federal Home Loan Bank shall be entitled to apply

in writing for advances. Such application shall be in such form as

shall be required by the Federal Home Loan Bank. Such Federal Home

Loan Bank may at its discretion deny any such application, or may

grant it on such conditions as the Federal Home Loan Bank may

prescribe.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 9, 47 Stat. 731; Pub. L. 101-73,

title VII, Sec. 701(b)(1), (3)(A), 710(a), Aug. 9, 1989, 103 Stat.

412, 418; Pub. L. 106-102, title VI, Sec. 606(f)(1), Nov. 12, 1999,

113 Stat. 1455.)

-MISC1-

AMENDMENTS

1999 - Pub. L. 106-102 struck out ''with the approval of the

Board'' after ''Federal Home Loan Bank'' in second sentence and

struck out '', subject to the approval of the Board,'' after ''deny

any such application, or'' in third sentence.

1989 - Pub. L. 101-73, Sec. 710(a), struck out ''or nonmember

borrower'' after ''Any member''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board'' wherever appearing.

-CITE-

12 USC Sec. 1430 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1430. Advances to members

-STATUTE-

(a) In general

(1) All advances

Each Federal Home Loan Bank is authorized to make secured

advances to its members upon collateral sufficient, in the

judgment of the Bank, to fully secure advances obtained from the

Bank under this section or section 1431(g) of this title.

(2) Purposes of advances

A long-term advance may only be made for the purposes of -

(A) providing funds to any member for residential housing

finance; and

(B) providing funds to any community financial institution

for small businesses, small farms, and small agri-businesses.

(3) Collateral

A Bank, at the time of origination or renewal of a loan or

advance, shall obtain and maintain a security interest in

collateral eligible pursuant to one or more of the following

categories:

(A) Fully disbursed, whole first mortgages on improved

residential property (not more than 90 days delinquent), or

securities representing a whole interest in such mortgages.

(B) Securities issued, insured, or guaranteed by the United

States Government or any agency thereof (including without

limitation, mortgage-backed securities issued or guaranteed by

the Federal Home Loan Mortgage Corporation, the Federal

National Mortgage Corporation, and the Government National

Mortgage Association).

(D) Other real estate related collateral acceptable to the

Bank if such collateral has a readily ascertainable value and

the Bank can perfect its interest in the collateral.

(E) Secured loans for small business, agriculture, or

securities representing a whole interest in such secured loans,

in the case of any community financial institution.

(4) Additional bank authority

Subparagraphs (A) through (E) of paragraph (3) shall not affect

the ability of any Federal Home Loan Bank to take such steps as

it deems necessary to protect its security position with respect

to outstanding advances, including requiring deposits of

additional collateral security, whether or not such additional

security would be eligible to originate an advance. If an

advance existing on August 9, 1989, matures and the member does

not have sufficient eligible collateral to fully secure a renewal

of such advance, a Bank may renew such advance secured by such

collateral as the Bank determines is appropriate. A member that

has an advance secured by such insufficient eligible collateral

must reduce its level of outstanding advances promptly and

prudently in accordance with a schedule determined by the Federal

home loan bank.

(5) Review of certain collateral standards

The Board may review the collateral standards applicable to

each Federal home loan bank for the classes of collateral

described in subparagraphs (D) and (E) of paragraph (3), and may,

if necessary for safety and soundness purposes, require an

increase in the collateral standards for any or all of those

classes of collateral.

(6) Definitions

For purposes of this subsection, the terms ''small business'',

''agriculture'', ''small farm'', and ''small agri-business''

shall have the meanings given those terms by regulation of the

Finance Board.

(b) Appraisals and other investigations; acceptance of home

mortgages as collateral security only by formal Board

resolution

For the purposes of this section, each Home Loan Bank shall have

power to make, or to cause or require to be made, such appraisals

and other investigations as it may deem necessary. No home

mortgage otherwise eligible to be accepted as collateral security

for an advance by a Home Loan Bank shall be accepted if any

director, officer, employee, attorney or agent of the Home Loan

Bank or of the borrowing institution is personally liable thereon,

unless the Board has specifically approved by formal resolution

such acceptance.

Such advances shall be made upon the note or obligation of the

member secured as provided in this section, bearing such rate of

interest as the Federal home loan bank may approve or determine,

and the Federal Home Loan Bank shall have a lien upon and shall

hold the stock of such member as further collateral security for

all indebtedness of the member to the Federal Home Loan Bank.

(d) Obligation to repay; additional security; sale of advances to

other banks

The institution applying for an advance shall enter into a

primary and unconditional obligation to pay off all advances,

together with interest and any unpaid costs and expenses in

connection therewith according to the terms under which they were

made, in such form as shall meet the requirements of the bank. The

bank shall reserve the right to require at any time, when deemed

necessary for its protection, deposits of additional collateral

security or substitutions of security by the borrowing institution,

and each borrowing institution shall assign additional or

substituted security when and as so required. Any Federal Home

Loan Bank shall have power to sell to any other Federal Home Loan

Bank, with or without recourse, any advance made under the

provisions of this chapter, or to allow to such bank a

participation therein, and any other Federal Home Loan Bank shall

have power to purchase such advance or to accept a participation

therein, together with an appropriate assignment of security

therefor.

(e) Priority of certain secured interests

Notwithstanding any other provision of law, any security interest

granted to a Federal Home Loan Bank by any member of any Federal

Home Loan Bank or any affiliate of any such member shall be

entitled to priority over the claims and rights of any party

(including any receiver, conservator, trustee, or similar party

having rights of a lien creditor) other than claims and rights that

(1) would be entitled to priority under otherwise applicable

law; and

(2) are held by actual bona fide purchasers for value or by

actual secured parties that are secured by actual perfected

security interests.

(g) (FOOTNOTE 1) Community support requirements

(FOOTNOTE 1) So in original. No subsec. (f) has been enacted.

(1) In general

Before the end of the 2-year period beginning on August 9,

1989, the Board shall adopt regulations establishing standards of

community investment or service for members of Banks to maintain

continued access to long-term advances.

(2) Factors to be included

The regulations promulgated pursuant to paragraph (1) shall

take into account factors such as a member's performance under

the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.)

and the member's record of lending to first-time homebuyers.

(h) Special liquidity advances

(1) In general

Subject to paragraph (2), the Federal Home Loan Banks may, upon

the request of the Director of the Office of Thrift Supervision,

make short-term liquidity advances to a savings association that

(A) is solvent but presents a supervisory concern because of

such association's poor financial condition; and

(B) has reasonable and demonstrable prospects of returning to

a satisfactory financial condition.

(2) Interest on and security for special liquidity advances

Any loan by a Federal Home Loan Bank pursuant to paragraph (1)

shall be subject to all applicable collateral requirements,

including the requirements of subsection (a) of this section, and

shall be at an interest rate no less favorable than those made

available for similar short-term liquidity advances to savings

associations that do not present such supervisory concern.

(i) Community investment program

(1) In general

Each Bank shall establish a program to provide funding for

members to undertake community-oriented mortgage lending. Each

Bank shall designate a community investment officer to implement

community lending and affordable housing advance programs of the

Banks under this subsection and subsection (j) of this section

and provide technical assistance and outreach to promote such

programs. Advances under this program shall be priced at the

cost of consolidated Federal Home Loan Bank obligations of

comparable maturities, taking into account reasonable

administrative costs.

(2) Community-oriented mortgage lending

For purposes of this subsection, the term ''community-oriented

mortgage lending'' means providing loans -

(A) to finance home purchases by families whose income does

not exceed 115 percent of the median income for the area,

(B) to finance purchase or rehabilitation of housing for

occupancy by families whose income does not exceed 115 percent

of median income for the area,

that benefit low- and moderate-income families or activities

that are located in low- and moderate-income neighborhoods, and

(D) to finance projects that further a combination of the

purposes described in subparagraphs (A) through (C).

(j) Affordable housing program

(1) In general

Pursuant to regulations promulgated by the Board, each Bank

shall establish an Affordable Housing Program to subsidize the

interest rate on advances to members engaged in lending for long

term, low- and moderate-income, owner-occupied and affordable

rental housing at subsidized interest rates.

(2) Standards

The Board's regulations shall permit Bank members to use

subsidized advances received from the Banks to -

(A) finance homeownership by families with incomes at or

below 80 percent of the median income for the area; or

(B) finance the purchase, construction, or rehabilitation of

rental housing, at least 20 percent of the units of which will

be occupied by and affordable for very low-income households

for the remaining useful life of such housing or the mortgage

term.

(3) Priorities for making advances

In using advances authorized under paragraph (1), each Bank

member shall give priority to qualified projects such as the

following:

(A) purchase of homes by families whose income is 80 percent

or less of the median income for the area,

(B) purchase or rehabilitation of housing owned or held by

the United States Government or any agency or instrumentality

of the United States; and

nonprofit organization, any State or political subdivision of

any State, any local housing authority or State housing finance

agency.

(4) Report

Each member receiving advances under this program shall report

annually to the Bank making such advances concerning the member's

use of advances received under this program.

(5) Contribution to program

Each Bank shall annually contribute the percentage of its

annual net earnings prescribed in the following subparagraphs to

support subsidized advances through the Affordable Housing

Program:

(A) In 1990, 1991, 1992, and 1993, 5 percent of the preceding

year's net income, or such prorated sums as may be required to

assure that the aggregate contribution of all the Banks shall

not be less than $50,000,000 for each such year.

(B) In 1994, 6 percent of the preceding year's net income, or

such prorated sum as may be required to assure that the

aggregate contribution of the Banks shall not be less than

$75,000,000 for such year.

preceding year's net income, or such prorated sums as may be

required to assure that the aggregate contribution of the Banks

shall not be less than $100,000,000 for each such year.

(6) Grounds for suspending contributions

(A) In general

If a Bank finds that the payments required under this

paragraph are contributing to the financial instability of such

Bank, it may apply to the Federal Housing Finance Board for a

temporary suspension of such payments.

(B) Financial instability

In determining the financial instability of a Bank, the

Federal Housing Finance Board shall consider such factors as

(i) whether the Bank's earnings are severely depressed, (ii)

whether there has been a substantial decline in membership

capital, and (iii) whether there has been a substantial

reduction in advances outstanding.

The Board shall review the application and any supporting

financial data and issue a written decision approving or

disapproving such application. The Board's decision shall be

accompanied by specific findings and reasons for its action.

(D) Monitoring suspension

If the Board grants a suspension, it shall specify the period

of time such suspension shall remain in effect and shall

continue to monitor the Bank's financial condition during such

suspension.

(E) Limitations on grounds for suspension

The Board shall not suspend payments to the Affordable

Housing Program if the Bank's reduction in earnings is a result

of (i) a change in the terms for advances to members which is

not justified by market conditions, (ii) inordinate operating

and administrative expenses, or (iii) mismanagement.

(F) Congressional notification and action

The Federal Housing Finance Board shall notify the Committee

on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and

Urban Affairs of the Senate not less than 60 days before such

suspension takes effect. Such suspension shall become

effective unless a joint resolution is enacted disapproving

such suspension.

(7) Failure to use amounts for affordable housing

If any Bank fails to utilize or commit the full amount provided

in this subsection in any year, 90 percent of the amount that has

not been utilized or committed in that year shall be deposited by

the Bank in an Affordable Housing Reserve Fund administered by

the Board. The 10 percent of the unutilized and uncommitted

amount retained by a Bank should be fully utilized or committed

by that Bank during the following year and any remaining portion

must be deposited in the Affordable Housing Reserve Fund. Under

regulations established by the Board, funds from the Affordable

Housing Reserve Fund may be made available to any Bank to meet

additional affordable housing needs in such Bank's district

pursuant to this section.

(8) Net earnings

The net earnings of any Federal Home Loan Bank shall be

determined for purposes of this paragraph -

(A) after reduction for any payment required under section

1441 or 1441b of this title; and

(B) before declaring any dividend under section 1436 of this

title.

(9) Regulations

The Federal Housing Finance Board shall promulgate regulations

to implement this subsection. Such regulations shall, at a

minimum -

(A) specify activities eligible to receive subsidized

advances from the Banks under this program;

(B) specify priorities for the use of such advances;

only to assist projects for which adequate long-term monitoring

is available to guarantee that affordability standards and

other requirements of this subsection are satisfied;

(D) ensure that a preponderance of assistance provided under

this subsection is ultimately received by low- and

moderate-income households;

(E) ensure that subsidies provided by Banks to member

institutions under this program are passed on to the ultimate

borrower;

(F) establish uniform standards for subsidized advances under

this program and subsidized lending by member institutions

supported by such advances, including maximum subsidy and risk

limitations for different categories of loans made under this

subsection; and

(G) coordinate activities under this subsection with other

Federal or federally-subsidized affordable housing activities

to the maximum extent possible.

(10) Other programs

No provision of this subsection or subsection (i) of this

section shall preclude any Bank from establishing additional

community investment cash advance programs or contributing

additional sums to the Affordable Housing Reserve Fund.

(11) Advisory Council

Each Bank shall appoint an Advisory Council of 7 to 15 persons

drawn from community and nonprofit organizations actively

involved in providing or promoting low- and moderate-income

housing in its district. The Advisory Council shall meet with

representatives of the board of directors of the Bank quarterly

to advise the Bank on low- and moderate-income housing programs

and needs in the district and on the utilization of the advances

for these purposes. Each Advisory Council established under this

paragraph shall submit to the Board at least annually its

analysis of the low-income housing activity of the Bank by which

it is appointed.

(12) Reports to Congress

(A) The Board shall monitor and report annually to the Congress

and the Advisory Council for each Bank the support of low-income

housing and community development by the Banks and the

utilization of advances for these purposes.

(B) The analyses submitted by the Advisory Councils to the

Board under paragraph (11) shall be included as part of the

report required by this paragraph.

and evaluate the Affordable Housing Program established by this

subsection after such program has been operating for 2 years.

The Comptroller General shall report to Congress on the

conclusions of the audit and recommend improvements or

modifications to the program.

(13) Definitions

For purposes of this subsection -

(A) Low- or moderate-income household

The term ''low- or moderate-income household'' means any

household which has an income of 80 percent or less of the area

median.

(B) Very low-income household

The term ''very low-income household'' means any household

that has an income of 50 percent or less of the area median.

The term ''low- or moderate-income neighborhood'' means any

neighborhood in which 51 percent or more of the households are

low- or moderate-income households.

(D) Affordable for very-low income households

For purposes of paragraph (2)(B) the term ''affordable for

very-low income households'' means that rents charged to

tenants for units made available for occupancy by low-income

families shall not exceed 30 percent of the adjusted income of

a family whose income equals 50 percent of the income for the

area (as determined by the Secretary of Housing and Urban

Development) with adjustment for family size.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 10, 47 Stat. 731; Apr. 27, 1934, ch.

168, Sec. 10, 48 Stat. 646; June 27, 1934, ch. 847, Sec. 501, 48

Stat. 1261; May 28, 1935, ch. 150, Sec. 5, 6, 49 Stat. 294, 295;

Mar. 28, 1941, ch. 31, Sec. 7, 55 Stat. 62; Aug. 1, 1947, ch. 431,

61 Stat. 714; Apr. 20, 1950, ch. 94, title V, Sec. 501, 64 Stat.

80; Sept. 1, 1951, ch. 378, title II, Sec. 208, 65 Stat. 303; Aug.

2, 1954, ch. 649, title V, Sec. 502, 68 Stat. 634; Pub. L. 85-857,

Sec. 13(e), Sept. 2, 1958, 72 Stat. 1264; Pub. L. 87-779, Sec.

2(b), Oct. 9, 1962, 76 Stat. 779; Pub. L. 88-560, title IX, Sec.

906, Sept. 2, 1964, 78 Stat. 805; Pub. L. 93-449, Sec. 4(c), Oct.

18, 1974, 88 Stat. 1367; Pub. L. 95-128, title IV, Sec. 406, Oct.

12, 1977, 91 Stat. 1137; Pub. L. 97-320, title III, Sec. 352, Oct.

15, 1982, 96 Stat. 1507; Pub. L. 97-457, Sec. 15, Jan. 12, 1983, 96

Stat. 2509; Pub. L. 100-86, title I, Sec. 105, title III, Sec.

306(d), Aug. 10, 1987, 101 Stat. 575, 601; Pub. L. 101-73, title

VII, Sec. 701(b)(1), (3)(A), 710(b)(4), (5), (c), 714, 721, Aug. 9,

1989, 103 Stat. 412, 418, 419, 423; Pub. L. 102-550, title XIII,

Sec. 1392(a), Oct. 28, 1992, 106 Stat. 4009; Pub. L. 106-102, title

VI, Sec. 604(a)-(c), 606(f)(2), Nov. 12, 1999, 113 Stat. 1451,

1452, 1455.)

-REFTEXT-

REFERENCES IN TEXT

The Community Reinvestment Act of 1977, referred to in subsec.

(g)(2), is title VIII of Pub. L. 95-128, Oct. 12, 1977, 91 Stat.

1147, as amended, which is classified generally to chapter 30 (Sec.

2901 et seq.) of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 2901 of

this title and Tables.

-MISC2-

AMENDMENTS

1999 - Pub. L. 106-102, Sec. 604(b), amended section catchline

generally.

Subsec. (a). Pub. L. 106-102, Sec. 604(a), inserted heading,

designated first sentence of introductory provisions as par. (1)

and inserted heading, substituted par. (2) for former second

sentence of introductory provisions which read as follows: ''All

long-term advances shall only be made for the purpose of providing

funds for residential housing finance.'', designated third sentence

of introductory provisions as par. (3), inserted heading,

redesignated former pars. (1) to (4) as subpars. (A) to (D),

respectively, of par. (3) and realigned margins, in subpar. (C),

substituted ''Cash or deposits'' for ''Deposits'', in subpar. (D),

struck out at end ''The aggregate amount of outstanding advances

secured by such other real estate related collateral shall not

exceed 30 percent of such member's capital.'', and added subpar.

(E), redesignated former par. (5) as (4), inserted heading,

substituted ''Subparagraphs (A) through (E) of paragraph (3)'' for

''Paragraphs (1) through (4)'', struck out ''and the Board'' after

''such collateral as the Bank'' and substituted ''determined by the

Federal home loan bank'' for ''determined by the Board'', and added

pars. (5) and (6).

Subsec. (c). Pub. L. 106-102, Sec. 606(f)(2)(A), substituted

''Federal home loan bank'' for ''Board'' before ''may approve or

determine'' and struck out at end ''At no time shall the aggregate

outstanding advances made by any Federal Home Loan Bank to any

member exceed twenty times the amounts paid in by such member for

outstanding capital stock held by it exceed twenty times the value

of the security required to be deposited under subsection (e) of

section 1426 of this title.''

Subsec. (d). Pub. L. 106-102, Sec. 606(f)(2)(B), struck out ''and

the approval of the Board'' after ''requirements of the bank'' in

first sentence and substituted ''Any'' for ''Subject to the

approval of the Board, any'' in third sentence.

Subsec. (e). Pub. L. 106-102, Sec. 604(c), struck out subsec. (e)

relating to qualified thrift lender status.

1992 - Subsec. (e)(2). Pub. L. 102-550 added sentence at end and

struck out former second sentence which read as follows: ''The

aggregate amount of any Bank's advances to members that are not

qualified thrift lenders shall not exceed 30 percent of a Bank's

total advances.''

1989 - Subsec. (a). Pub. L. 101-73, Sec. 714(a), substituted

''upon collateral sufficient, in the judgment of the Bank, to fully

secure advances obtained from the Bank under this section or

section 1431(g) of this title. All long-term advances shall only

be made for the purpose of providing funds for residential housing

finance. A Bank, at the time of origination or renewal of a loan

or advance, shall obtain and maintain a security interest in

collateral eligible pursuant to one or more of the following

categories:'' and pars. (1) to (5) for ''upon such security as the

Board may prescribe.''

Subsec. (b). Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted

''Board'' for ''board''.

Subsec. (c). Pub. L. 101-73, Sec. 710(b)(4), (5), struck out ''or

nonmember borrower'' after ''obligation of the member'', and '', or

made to a nonmember borrower'' after ''stock held by it''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board''.

Subsec. (d). Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted

''Board'' for ''board'' wherever appearing.

Subsec. (e). Pub. L. 101-73, Sec. 714(b), which directed the

general amendment of subsec. (e), was executed to the subsec. (e)

added by section 105 of Pub. L. 100-86, as the probable intent of

Congress. As thus executed, the amendment substituted provisions

relating to qualified thrift lender status for provisions relating

to reduced eligibility for advances for certain members which were

not qualified thrift lenders.

Subsec. (g). Pub. L. 101-73, Sec. 710(c), added subsec. (g).

Subsec. (h). Pub. L. 101-73, Sec. 714(c), added subsec. (h).

Subsecs. (i), (j). Pub. L. 101-73, Sec. 721, added subsecs. (i)

and (j).

1987 - Subsec. (e). Pub. L. 100-86, Sec. 306(d), added subsec.

(e) relating to priority of certain secured interests.

Pub. L. 100-86, Sec. 105, added subsec. (e) relating to reduced

eligibility for advances for certain members which are not

qualified thrift lenders.

1982 - Subsec. (a). Pub. L. 97-320, Sec. 352(1), as amended by

Pub. L. 97-457, amended subsec. (a) generally. Prior to amendment

subsec. (a) read as follows: ''Each Federal Home Loan Bank is

authorized to make advances to its members upon the security of

home mortgages, or obligations of the United States, or obligations

fully guaranteed by the United States, subject to such regulations,

restrictions, and limitations as the Board may prescribe. Any such

advance shall be subject to the following limitations as to amount:

''(1) If secured by a mortgage insured under the provisions of

title I, title II, title VI, title VIII, or title IX of the

National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq., 1736

et seq., 1748 et seq., and 1750 et seq., respectively), the

advance may be for an amount not in excess of 90 per centum of

the unpaid principal of the mortgage loan.

''(2) If secured by a home mortgage given in respect of an

amortized home mortgage loan which was for an original term of

six years or more, or in cases where shares of stock, which are

pledged as security for such loan, mature in a period of six

years or more, the advance may be for an amount not in excess of

65 per centum of the unpaid principal of the home mortgage loan;

but in no case shall the amount of the advance exceed 60 per

centum of the value of the real estate securing the home mortgage

loan.

''(3) If secured by a home mortgage given in respect of any

other home mortgage loan, the advance shall not be for an amount

in excess of 50 per centum of the unpaid principal of the home

mortgage loan; but in no case shall the amount of such advance

exceed 40 per centum of the value of the real estate securing the

home mortgage loan.

''(4) If secured by obligations of the United States, or

obligations fully guaranteed by the United States, the advance

shall not be for an amount in excess of the face value of such

obligations.''

Subsec. (b). Pub. L. 97-320, Sec. 352(2), struck out provisions

relating to acceptance of home mortgages as collateral security for

advances by a Home Loan Bank.

Subsec. (c). Pub. L. 97-320, Sec. 352(3), substituted ''twenty''

for ''twelve'' wherever appearing.

1977 - Subsec. (b). Pub. L. 95-128 substituted prohibition

against acceptance of a home mortgage as collateral security for an

advance by a Federal Home Loan Bank if, at the time the advance is

made, the home mortgage exceeds a sum equal to the dollar

limitation under the first proviso of the first sentence of section

1464(c) of this title for each home or other dwelling unit covered

by such mortgage for prior prohibition where the home mortgage

exceeded a sum equal to $55,000 (except that with respect to

dwellings in Alaska, Guam, and Hawaii the foregoing limitation,

might, by regulation of the Board, be increased by not to exceed 50

per centum) for each home or other dwelling unit covered by the

mortgage.

1974 - Subsec. (b). Pub. L. 93-449 substituted provisions

limiting the home mortgage to a sum not to exceed $55,000, except

with respect to dwellings in Alaska, Guam, etc., for provisions

limiting the home mortgage to a sum not to exceed $40,000.

1964 - Subsec. (b). Pub. L. 88-560 substituted ''thirty'' for

''twenty-five'' in cl. (1) and ''$40,000'' for ''$35,000'' in cl.

(2).

1962 - Subsec. (b). Pub. L. 87-779 substituted ''exceeds a sum

equal to $35,000 for each home or other dwelling unit covered by

such mortgage'' for ''exceeds $35,000''.

1958 - Subsec. (b). Pub. L. 85-857 inserted ''chapter 37 of title

38,'' after ''Servicemen's Readjustment Act of 1944, as amended,''.

1954 - Subsec. (b)(2). Act Aug. 2, 1954, substituted ''$35,000''

for ''$20,000''.

1951 - Subsec. (a)(1). Act Sept. 1, 1951, inserted a reference to

subchapter X of chapter 13 of this title.

1950 - Subsec. (a) (1). Act Apr. 20, 1950, Sec. 501(1),

substituted ''subchapters I, II, VI, and VIII of chapter 13 of this

title'' for ''sections 1707-1715b and 1736-1742 of this title''.

Subsec. (b). Act Apr. 20, 1950, Sec. 501(2), inserted ''unless

such home mortgage is insured under the National Housing Act, as

amended, or insured or guaranteed under the Servicemen's

Readjustment Act of 1944, as amended'' after ''Maturity'' in first

sentence.

1947 - Subsec. (b). Act Aug. 1, 1947, increased period collateral

security can run from twenty years to twenty-five years.

1941 - Subsec. (a)(1). Act Mar. 28, 1941, inserted reference to

sections 1736-1742 of this title.

1935 - Subsec. (a). Act May 28, 1935, Sec. 5, added cl. (4).

Subsec. (b)(1). Act May 28, 1935, Sec. 6, substituted ''twenty''

for ''fifteen'' and omitted reference to value of real estate in

cl. 2.

1934 - Subsec. (a). Act June 27, 1934, amended subsec. (a)

generally.

Subsec. (b). Act Apr. 27, 1934, inserted ''unless the amount,''

etc. to end of first sentence.

-CHANGE-

CHANGE OF NAME

Committee on Banking, Finance and Urban Affairs of House of

Representatives treated as referring to Committee on Banking and

Financial Services of House of Representatives by section 1(a) of

Pub. L. 104-14, set out as a note preceding section 21 of Title 2,

The Congress. Committee on Banking and Financial Services of House

of Representatives abolished and replaced by Committee on Financial

Services of House of Representatives, and jurisdiction over matters

relating to securities and exchanges and insurance generally

transferred from Committee on Energy and Commerce of House of

Representatives by House Resolution No. 5, One Hundred Seventh

Congress, Jan. 3, 2001.

-MISC4-

EFFECTIVE DATE OF 1958 AMENDMENT

Amendment by Pub. L. 85-857 effective Jan. 1, 1959, see section 2

of Pub. L. 85-857, set out as an Effective Date note preceding Part

1 of Title 38, Veterans' Benefits.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(j)(12)(A) of this section relating to requirement to report

annually to Congress, see section 3003 of Pub. L. 104-66, as

amended, set out as a note under section 1113 of Title 31, Money

and Finance, and page 170 of House Document No. 103-7.

AUTHORIZATION OF APPROPRIATIONS FOR DISBURSEMENT TO FEDERAL HOME

LOAN BANKS FOR ADJUSTMENT OF INTEREST CHARGES

Pub. L. 91-351, title I, Sec. 101, July 24, 1970, 84 Stat. 450,

provided that:

''(a) There is authorized to be appropriated not to exceed

$250,000,000, without fiscal year limitation, to be used by the

Federal Home Loan Bank Board for disbursement to Federal home loan

banks for the purpose of adjusting the effective interest charged

by such banks on short-term and long-term borrowing to promote an

orderly flow of funds into residential construction. The

disbursement of sums appropriated hereunder shall be made under

such terms and conditions as may be prescribed by the Board to

assure that such sums are used to assist in the provision of

housing for low- and middle-income families, and that such families

share fully in the benefits resulting from the disbursement of such

sums. No member of a Federal home loan bank shall use funds the

interest charges on which have been adjusted pursuant to the

provisions of this section to make any loan, if -

''(1) the effective rate of interest on such loan exceeds the

effective rate of interest on such funds payable by such member

by a percentile amount which is in excess of such amount as the

Board determines to be appropriate in furtherance of the purposes

of this section; or

''(2) the principal obligation of any such loan which is

secured by a mortgage on a residential structure exceeds the

dollar limitations on the maximum mortgage amount, in effect on

the date the mortgage was originated, which would be applicable

if the mortgage was insured by the Secretary of Housing and Urban

Development under section 203(b) or 207 of the National Housing

Act (section 1709(b) or 1713 of this title).

''(b) Not more than 20 per centum of the sums appropriated

pursuant to subsection (a) shall be disbursed in any one Federal

home loan bank district.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1430b, 1431, 1441b, 1733,

2705 of this title.

-CITE-

12 USC Sec. 1430a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1430a. Omitted

-COD-

CODIFICATION

Section, act July 22, 1932, ch. 522, Sec. 10a, as added June 27,

1934, ch. 847, Sec. 502, 48 Stat. 1261, provided for advances by

Federal Home Loan Banks to finance home repairs, improvements, and

alterations until July 1, 1936.

-CITE-

12 USC Sec. 1430b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1430b. Advances to nonmember mortgagee; terms and conditions

-STATUTE-

(a) In general

Each Federal Home Loan Bank is authorized to make advances to

nonmember mortgagees approved under title II of the National

Housing Act (12 U.S.C. 1707 et seq.). Such mortgagees must be

chartered institutions having succession and subject to the

inspection and supervision of some governmental agency, and whose

principal activity in the mortgage field must consist of lending

their own funds. Such advances shall not be subject to the other

provisions and restrictions of this chapter, but shall be made upon

the security of insured mortgages, insured under title II of the

National Housing Act. Advances made under the terms of this section

shall be at such rates of interest and upon such terms and

conditions as shall be determined by the Board, but no advance may

be for an amount in excess of 90 per centum of the unpaid principal

of the mortgage loan given as security.

(b) Exception

An advance made to a State housing finance agency for the purpose

of facilitating mortgage lending that benefits individuals and

families that meet the income requirements set forth in section

142(d) or 143(f) of title 26, need not be collateralized by a

mortgage insured under title II of the National Housing Act (12

U.S.C. 1707 et seq.) or otherwise, if -

(1) such advance otherwise meets the requirements of this

subsection; and

(2) such advance meets the requirements of section 1430(a) of

this title, and any real estate collateral for such loan

comprises single family or multifamily residential mortgages.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 10b, as added May 25, 1935, ch. 150,

Sec. 7, 49 Stat. 295; amended Pub. L. 101-73, title VII, Sec.

701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412; Pub. L. 102-550,

title XIII, Sec. 1392(b), Oct. 28, 1992, 106 Stat. 4009.)

-REFTEXT-

REFERENCES IN TEXT

The National Housing Act, referred to in text, is act June 27,

1934, ch. 847, 48 Stat. 1246, as amended. Title II of the Act is

classified generally to subchapter II (Sec. 1707 et seq.) of

chapter 13 of this title. For complete classification of this Act

to the Code, see section 1701 of this title and Tables.

-MISC2-

AMENDMENTS

1992 - Pub. L. 102-550 designated existing provisions as subsec.

(a), inserted heading, and added subsec. (b).

1989 - Pub. L. 101-73 substituted ''Board'' for ''Federal Home

Loan Bank Board''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1733, 2705 of this title.

-CITE-

12 USC Sec. 1431 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1431. Powers and duties of banks

-STATUTE-

(a) Borrowing money; issuing bonds and debentures; general powers

Each Federal Home Loan Bank shall have power, subject to rules

and regulations prescribed by the Board, to borrow and give

security therefor and to pay interest thereon, to issue debentures,

bonds, or other obligations upon such terms and conditions as the

Board may approve, and to do all things necessary for carrying out

the provisions of this chapter and all things incident thereto.

(b) Issuance of consolidated Federal Home Loan Bank debentures;

restrictions

The Board may issue consolidated Federal Home Loan Bank

debentures which shall be the joint and several obligations of all

Federal Home Loan Banks organized and existing under this chapter,

in order to provide funds for any such bank or banks, and such

debentures shall be issued upon such terms and conditions as the

Board may prescribe. No such debentures shall be issued at any

time if any of the assets of any Federal Home Loan Bank are pledged

to secure any debts or subject to any lien, and neither the Board

nor any Federal Home Loan Bank shall have power to pledge any of

the assets of any Federal Home Loan Bank, or voluntarily to permit

any lien to attach to the same while any of such debentures so

issued are outstanding. The debentures issued under this section

and outstanding shall at no time exceed five times the total

paid-in capital of all the Federal Home Loan Banks as of the time

of the issue of such debentures. It shall be the duty of the Board

not to issue debentures under this section in excess of the notes

or obligations of member institutions held and secured under

section 1430(a) of this title by all the Federal Home Loan Banks.

At any time that no debentures are outstanding under this

chapter, or in order to refund all outstanding consolidated

debentures issued under this section, the Board may issue

consolidated Federal Home Loan Bank bonds which shall be the joint

and several obligations of all the Federal Home Loan Banks, and

shall be secured and be issued upon such terms and conditions as

the Board may prescribe.

(d) Additional or substituted collateral on adjustment of equities

The Board shall have full power to require any Federal Home Loan

Bank to deposit additional collateral or to make substitutions of

collateral or to adjust equities between the Federal Home Loan

Banks.

(e) Acceptance of deposits; restrictions on transaction of banking

business; collection and settlement of checks, drafts, etc.;

charges; rules and regulations

(1) Each Federal Home Loan Bank shall have power to accept

deposits made by members of such bank or by any other Federal Home

Loan Bank or other instrumentality of the United States, upon such

terms and conditions as the Board may prescribe, but no Federal

Home Loan Bank shall transact any banking or other business not

incidental to activities authorized by this chapter.

(2)(A) The Board may, subject to such rules and regulations,

including definitions of terms used in this paragraph, as the Board

shall from time to time prescribe, authorize Federal Home Loan

Banks to be drawees of, and to engage in, or be agents or

intermediaries for, or otherwise participate or assist in, the

collection and settlement of (including presentment, clearing, and

payment of, and remitting for), checks, drafts, or any other

negotiable or nonnegotiable items or instruments of payment drawn

on or issued by members of any Federal Home Loan Bank or by

institutions which are eligible to make application to become

members pursuant to section 1424 of this title, and to have such

incidental powers as the Board shall find necessary for the

exercise of any such authorization.

(B) A Federal Home Loan Bank shall make charges, to be determined

and regulated by the Board consistent with the principles set forth

in section 248a(c) of this title, or utilize the services of, or

act as agent for, or be a member of, a Federal Reserve bank,

clearinghouse, or any other public or private financial institution

or other agency, in the exercise of any powers or functions

pursuant to this paragraph.

collection and settlement of any items by Federal Home Loan Banks,

and with respect to the collection and settlement (including

payment by the payor institution) of items payable by Federal

savings and loan associations and Federal mutual savings banks, to

prescribe rules and regulations regarding the rights, powers,

responsibilities, duties, and liabilities, including standards

relating thereto, of such Federal Home Loan Banks, associations, or

banks and other parties to any such items or their collection and

settlement. In prescribing such rules and regulations, the Board

may adopt or apply, in whole or in part, general banking usage and

practices, and, in instances or respects in which they would

otherwise not be applicable, Federal Reserve regulations and

operating letters, the Uniform Commercial Code, and clearinghouse

rules.

(f) Rediscount of notes held by other banks; purchase of bonds of

other banks

The Board is authorized and empowered to permit,, (FOOTNOTE 1) to

require, (FOOTNOTE 1) Federal Home Loan Banks, upon such terms and

conditions as the Board may prescribe, to rediscount the discounted

notes of members held by other Federal Home Loan Banks, or to make

loans to, or make deposits with, such other Federal Home Loan

Banks, or to purchase any bonds or debentures issued under this

section.

(FOOTNOTE 1) So in original. See 1989 Amendment note below.

(g) Reserves

Each Federal Home Loan Bank shall at all times have at least an

amount equal to the current deposits received from its members

invested in (1) obligations of the United States, (2) deposits in

banks or trust companies, (3) advances with a maturity of not to

exceed five years which are made to members, upon such terms and

conditions as the Board may prescribe, and (4) advances with a

maturity of not to exceed five years which are made to members

whose creditor liabilities (not including advances from the Federal

home loan bank) do not exceed 5 per centum of their net assets, and

which may be made without the security of home mortgages or other

security, upon such terms and conditions as the Board may

prescribe.

(h) Investment of surplus funds

Such part of the assets of each Federal Home Loan Bank (except

reserves and amounts provided for in subsection (g) of this

section) as are not required for advances to members, may be

invested, to such extent as the bank may deem desirable and subject

to such regulations, restrictions, and limitations as may be

prescribed by the Board, in obligations of the United States, in

obligations, participations, or other instruments of or issued by

the Federal National Mortgage Association or the Government

National Mortgage Association, in mortgages, obligations, or other

securities which are or ever have been sold by the Federal Home

Loan Mortgage Corporation pursuant to section 1454 or section 1455

of this title, in the stock of the Federal National Mortgage

Association, in stock, obligations, or other securities of any

small business investment company formed pursuant to section 681 of

title 15, for the purpose of aiding members of the Federal Home

Loan Bank System, and in such securities as fiduciary and trust

funds may be invested in under the laws of the State in which the

Federal Home Loan Bank is located.

(i) Treasury purchase of banks' obligations; exercise of authority

The Secretary of the Treasury is authorized in his discretion to

purchase any obligations issued pursuant to this section, as

heretofore, now, or hereafter in force and for such purpose the

Secretary of the Treasury is authorized to use as a public-debt

transaction the proceeds of the sale of any securities hereafter

issued under chapter 31 of title 31, as now or hereafter in force,

and the purposes for which securities may be issued under chapter

31 of title 31, as now or hereafter in force, are extended to

include such purchases. The Secretary of the Treasury may, at any

time, sell, upon such terms and conditions and at such price or

prices as he shall determine, any of the obligations acquired by

him under this subsection. All redemptions, purchases, and sales

by the Secretary of the Treasury of such obligations under this

subsection shall be treated as public-debt transactions of the

United States. The Secretary of the Treasury shall not at any time

purchase any obligations under this paragraph if such purchase

would increase the aggregate principal amount of his then

outstanding holdings of such obligations under this paragraph to an

amount greater than $4,000,000,000. Each purchase of obligations by

the Secretary of the Treasury under this subsection shall be upon

terms and conditions as shall be determined by the Secretary of the

Treasury and shall bear such rate of interest as may be determined

by the Secretary of the Treasury taking into consideration the

current average market yield for the month preceding the month of

such purchase on outstanding marketable obligations of the United

States.

In addition to obligations authorized to be purchased by the

preceding paragraph, the Secretary of the Treasury is authorized to

purchase any obligations issued pursuant to this section in amounts

not to exceed $2,000,000,000. The authority provided in this

paragraph shall expire August 10, 1975.

Notwithstanding the foregoing, the authority provided in this

subsection may be exercised during any calendar quarter beginning

after October 28, 1974, only if the Secretary of the Treasury and

the Chairperson of the Board certify to the Congress that (1)

alternative means cannot be effectively employed to permit members

of the Federal Home Loan Bank System to continue to supply

reasonable amounts of funds to the mortgage market, and (2) the

ability to supply such funds is substantially impaired because of

monetary stringency and a high level of interest rates. Any funds

borrowed under this subsection shall be repaid by the Home Loan

Banks at the earliest practicable date.

(j) Audits

Notwithstanding the provisions of section 9105(a)(1)(B) (FOOTNOTE

2) of title 31, audits by the General Accounting Office of the

financial transactions of a Federal Home Loan Bank shall not be

limited to periods during which Government capital has been

invested therein. The provisions of sections 9107(c)(2) and

9108(d)(1) of title 31 shall not apply to any Federal Home Loan

Bank.

(FOOTNOTE 2) See References in Text note below.

(k) Bank loans to SAIF

(1) Loans authorized

Subject to paragraph (3), the Federal Home Loan Banks may, upon

the request of the Federal Deposit Insurance Corporation, make

loans to such Corporation for the use of the Savings Association

Insurance Fund.

(2) Liability of the Fund

Any loan by a Federal Home Loan Bank pursuant to paragraph (1)

shall be a direct liability of the Savings Association Insurance

Fund.

(3) Interest on and security for such loans

Any loan by a Federal Home Loan Bank pursuant to paragraph (1)

shall -

(A) bear a rate of interest not less than such Bank's current

marginal cost of funds, taking into account the maturities

involved; and

(B) be adequately secured.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 11, 47 Stat. 733; June 27, 1934, ch.

847, Sec. 503, 48 Stat. 1261; June 27, 1950, ch. 369, Sec. 3, 4, 64

Stat. 257; Aug. 2, 1954, ch. 649, title II, Sec. 204(a), 68 Stat.

622; Pub. L. 88-560, title VII, Sec. 701(d)(1), Sept. 2, 1964, 78

Stat. 800; Pub. L. 90-448, title VIII, Sec. 807(k), Aug. 1, 1968,

82 Stat. 545; Pub. L. 91-151, title I, Sec. 3, Dec. 23, 1969, 83

Stat. 374; Pub. L. 91-609, title IX, Sec. 914, Dec. 31, 1970, 84

Stat. 1815; Pub. L. 93-383, title VIII, Sec. 805(c)(2), Aug. 22,

1974, 88 Stat. 727; Pub. L. 93-495, title I, Sec. 112, Oct. 28,

1974, 88 Stat. 1506; Pub. L. 96-153, title III, Sec. 324, Dec. 21,

1979, 93 Stat. 1121; Pub. L. 96-221, title III, Sec. 311, Mar. 31,

1980, 94 Stat. 149; Pub. L. 97-320, title I, Sec. 125(c), Oct. 15,

1982, 96 Stat. 1485; Pub. L. 101-73, title VII, Sec.

701(b)(1)-(3)(A), (c), 709, 710(b)(6), Aug. 9, 1989, 103 Stat. 412,

418; Pub. L. 104-208, div. A, title II, Sec. 2704(d)(11)(A), div.

D, title II, Sec. 208(h)(2), Sept. 30, 1996, 110 Stat. 3009-489,

3009-747.)

-REFTEXT-

REFERENCES IN TEXT

Section 9105 of title 31, referred to in subsec. (j), was amended

generally by Pub. L. 101-576, title III, Sec. 305, Nov. 15, 1990,

104 Stat. 2853, and, as so amended, subsec. (a) does not contain a

par. (1)(B). Prior to the general amendment, subsec. (a)(1)(B)

related to audits of mixed-ownership Government corporations during

periods in which capital of the United States Government was

invested therein.

-COD-

CODIFICATION

In subsecs. (i) (first par.) and (j), ''chapter 31 of title 31''

substituted for ''the Second Liberty Bond Act'', and ''section

9105(a)(1)(B) of title 31'' and ''sections 9107(c)(2) and

9108(d)(1) of title 31'' substituted for ''the first sentence of

section 202 of the Government Corporation Control Act (31 U.S.C.

857)'' and ''the first sentence of subsection (d) of section 303 of

the Government Corporation Control Act (31 U.S.C. 868(d))'',

respectively, on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13,

1982, 96 Stat. 1067, the first section of which enacted Title 31,

Money and Finance.

-MISC3-

AMENDMENTS

1996 - Subsec. (h). Pub. L. 104-208, Sec. 208(h)(2), substituted

''section 681 of title 15'' for ''section 681(d) of title 15''.

Subsec. (k). Pub. L. 104-208, Sec. 2704(d)(11)(A), which directed

the amendment of subsec. (k) by substituting ''the Deposit

Insurance Fund'' for ''SAIF'' in heading and ''Deposit Insurance

Fund'' for ''Savings Association Insurance Fund'' in pars. (1) and

(2), was not executed. See Effective Date of 1996 Amendment note

below.

1989 - Subsecs. (a) to (d). Pub. L. 101-73, Sec. 701(b)(1),

(3)(A), substituted ''Board'' for ''board'' wherever appearing.

Subsec. (e)(1). Pub. L. 101-73, Sec. 709(1), inserted

''incidental to activities'' after ''other business not''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board''.

Subsec. (e)(2)(C). Pub. L. 101-73, Sec. 701(c)(1), which directed

insertion of ''Federal Home Loan'' before ''Banks,'' was executed

the second time that term appeared, because ''Federal Home Loan''

already preceded the term ''Banks,'' the first place it appeared.

Subsec. (f). Pub. L. 101-73, Sec. 709(2), which directed

amendment of subsec. (f) by striking out ''or whenever in the

judgment of at least 4 members of the board an emergency exists

requiring such action'' after ''empowered to permit,'', was

executed by striking out ''or whenever in the judgment of at least

four members of the board an emergency exists requiring such

action'', as the probable intent of Congress. The amendment

probably should also have struck out the comma after ''empowered to

permit'' and the words '', to require,'' after ''such action''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board'' wherever appearing.

Subsec. (g). Pub. L. 101-73, Sec. 710(b)(6), struck out ''or

nonmember borrowers'' after ''made to members'' wherever appearing.

Subsec. (h). Pub. L. 101-73, Sec. 710(b)(6), struck out ''or

nonmember borrowers'' after ''advances to members''.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board''.

Subsec. (i). Pub. L. 101-73, Sec. 701(c)(2), inserted ''Federal''

before ''Home Loan Bank System''.

Pub. L. 101-73, Sec. 701(b)(1), (2), substituted ''Chairperson of

the Board'' for ''Chairman of the Federal Home Loan Bank Board''.

Subsec. (k). Pub. L. 101-73, Sec. 709(3), amended subsec. (k)

generally. Prior to amendment, subsec. (k) read as follows: ''The

Federal Home Loan Banks are hereby authorized, as directed by the

Board, to make loans to the Federal Savings and Loan Insurance

Corporation. All such loans shall be made in accordance with the

provisions of section 1725(d) of this title.''

1982 - Subsec. (k). Pub. L. 97-320 added subsec. (k).

1980 - Subsec. (e). Pub. L. 96-221 designated existing provisions

as par. (1) and added par. (2).

1979 - Subsec. (h). Pub. L. 96-153 inserted provisions relating

to stock, obligations, or other securities of any small business

investment company formed pursuant to section 681(d) of title 15,

for the purpose of aiding members of the Federal Home Loan Bank

System.

1974 - Subsec. (h). Pub. L. 93-383 inserted reference to

mortgages, obligations, or other securities sold by the Federal

Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of

this title.

Subsec. (i). Pub. L. 93-495 substituted ''obligations under this

paragraph'' for ''obligations under this subsection'' wherever

appearing in fourth sentence of initial par., in second par.

substituted provisions authorizing purchase of obligations issued

pursuant to this section in amounts not to exceed $2,000,000,000,

for provisions relating to exercise of authority of this subsection

by the Secretary of the Treasury, and added third par.

1970 - Subsec. (g). Pub. L. 91-609 substituted ''five years'' for

''one year'' in items (3) and (4).

1969 - Subsec. (i). Pub. L. 91-151 increased the borrowing limit

to $4,000,000,000 and made it a requirement that the rate charged

on such borrowing be set at the current market yield on Treasury

obligations and added a new paragraph which allows the Secretary to

permit members of the Home Loan Bank System to continue to supply

funds to the mortgage market during tight market conditions.

1968 - Subsec. (h). Pub. L. 90-448 inserted ''or the Government

National Mortgage Association, in the stock of the Federal National

Mortgage Association''.

1964 - Subsec. (h). Pub. L. 88-560 substituted ''in obligations,

participations, or other instruments of or issued by the Federal

National Mortgage Association'' for ''in obligations of the Federal

National Mortgage Association''.

1954 - Subsec. (h). Act Aug. 2, 1954, inserted reference to

obligations of the Federal National Mortgage Association.

1950 - Subsec. (g). Act June 27, 1950, Sec. 3, struck out

requirement that sums paid in on outstanding capital subscriptions

of members from the base for determining the amount of money which

the Federal Home Loan Banks shall at all times have invested.

Subsecs. (i), (j). Act June 27, 1950, Sec. 4, added subsecs. (i)

and (j).

1934 - Subsecs. (i), (j). Act June 27, 1934, among other changes,

struck out subsecs. (i) and (j).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 2704(d)(11)(A) of Pub. L. 104-208 effective

Jan. 1, 1999, if no insured depository institution is a savings

association on that date, see section 2704(c) of Pub. L. 104-208,

set out as a note under section 1821 of this title.

EFFECTIVE DATE OF 1968 AMENDMENT

For effective date of amendment by title VIII of Pub. L. 90-448,

see section 808 of Pub. L. 90-448, set out as an Effective Date

note under section 1716b of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1422b, 1430, 1438, 2705

of this title.

-CITE-

12 USC Sec. 1432 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1432. Incorporation of banks; corporate powers; housing

project loans

-STATUTE-

(a) The directors of each Federal Home Loan Bank shall, in

accordance with such rules and regulations as the Board may

prescribe, make and file with the Board at the earliest practicable

date after the establishment of such bank, an organization

certificate which shall contain such information as the Board may

require. Upon the making and filing of such organization

certificate with the Board, such bank shall become, as of the date

of the execution of its organization certificate, a body corporate,

and as such and in its name as designated by the Board it shall

have power to adopt, alter, and use a corporate seal; to make

contracts; to purchase or lease and hold or dispose of such real

estate as may be necessary or convenient for the transaction of its

business; to sue and be sued, to complain and to defend, in any

court of competent jurisdiction, State or Federal; to select,

employ, and fix the compensation of such officers, employees,

attorneys, and agents as shall be necessary for the transaction of

its business,; (FOOTNOTE 1) to define their duties, require bonds

of them and fix the penalties thereof, and to dismiss at pleasure

such officers, employees, attorneys, and agents; and, by the board

of directors of the bank, to prescribe, amend, and repeal by-laws

governing the manner in which its affairs may be administered,

consistent with applicable laws and regulations, as administered by

the Finance Board. No officer, employee, attorney, or agent of a

Federal home loan bank who receives compensation, may be a member

of the board of directors. Each such bank shall have all such

incidental powers, not inconsistent with the provisions of this

chapter, as are customary and usual in corporations generally.

(FOOTNOTE 1) So in original.

(b) Subject to such regulations as may be prescribed by the

Board, one or more Federal home loan banks may acquire, hold, or

dispose of, in whole or in part, or facilitate such acquisition,

holding, or disposition by members of any such bank of, housing

project loans, or interests therein, having the benefit of any

guaranty under section 2181 of title 22, as now or hereafter in

effect, or loans, or interests therein, having the benefit of any

guaranty under section 2184 of title 22 or any commitment or

agreement with respect to such loans, or interests therein, made

pursuant to either of such sections. This authority extends to the

acquisition, holding, and disposition of loans, or interests

therein, having the benefit of any guaranty under section 2181 or

2182 of title 22 or such sections as hereafter amended or extended,

or of any commitment or agreement for any such guaranty.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 12, 47 Stat. 735; Pub. L. 89-754,

title X, Sec. 1016(a), Nov. 3, 1966, 80 Stat. 1293; Pub. L. 90-448,

title XVII, Sec. 1717, Aug. 1, 1968, 82 Stat. 609; Pub. L. 91-609,

title IX, Sec. 907(a), Dec. 31, 1970, 84 Stat. 1811; Pub. L.

101-73, title VII, Sec. 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat.

412; Pub. L. 106-102, title VI, Sec. 606(d), Nov. 12, 1999, 113

Stat. 1454.)

-REFTEXT-

REFERENCES IN TEXT

Section 2184 of title 22, referred to in subsec. (b), which

related to housing projects in Latin American countries, was

omitted in the general amendment made by section 105 of Pub. L.

91-175, Dec. 30, 1969, 83 Stat. 807. See section 2182 of Title 22,

Foreign Relations and Intercourse.

-MISC2-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-102, Sec. 606(d)(1), struck out

'', but, except with the prior approval of the Board, no bank

building shall be bought or erected to house any such bank, or

leased by such bank under any lease for such purpose which has a

term of more than ten years'' after ''convenient for the

transaction of its business'', struck out ''subject to the approval

of the Board'' after ''necessary for the transaction of its

business'', substituted ''and, by the board of directors of the

bank, to prescribe, amend, and repeal by-laws governing the manner

in which its affairs may be administered, consistent with

applicable laws and regulations, as administered by the Finance

Board. No officer, employee, attorney, or agent of a Federal home

loan bank'' for ''and, by its Board of directors, to prescribe,

amend, and repeal bylaws, rules, and regulations governing the

manner in which its affairs may be administered; and the powers

granted to it by law may be exercised and enjoyed subject to the

approval of the Board. The president of a Federal Home Loan Bank

may also be a member of the Board of directors thereof, but no

other officer, employee, attorney, or agent of such bank,'', and,

in penultimate sentence, substituted ''board of directors'' for

''Board of directors'' after ''may be a member of the''.

Subsec. (b). Pub. L. 106-102, Sec. 606(d)(2), substituted

''Federal home loan banks'' for ''Federal home loans banks''.

1989 - Subsec. (a). Pub. L. 101-73 substituted ''Board'' for

''board'' wherever appearing.

1970 - Subsec. (b). Pub. L. 91-609 extended authority to make

housing project loans to acquisition, holding, and disposition of

loans, or interest therein, having benefit of any guaranty under

section 2181 or 2182 of title 22 or such sections as hereafter

amended or extended, or of any commitment or agreement for any such

guaranty.

1968 - Pub. L. 90-448 designated existing provisions as subsec.

(a) and added subsec. (b).

1966 - Pub. L. 89-754 substituted ''but, except with the prior

approval of the board, no bank building shall be bought or erected

to house any such bank, or leased by such bank under any lease''

for ''but no bank building shall be bought or erected to house any

such bank, nor shall any such bank make any lease'' in second

sentence.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1427 of this title.

-CITE-

12 USC Sec. 1433 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1433. Exemption from taxation; obligations acceptable as

credit on debt of home owner

-STATUTE-

Any and all notes, debentures, bonds, and other such obligations

issued by any bank, and consolidated Federal Home Loan Bank bonds

and debentures, shall be exempt both as to principal and interest

from all taxation (except surtaxes, estate, inheritance, and gift

taxes) now or hereafter imposed by the United States, by any

Territory, dependency, or possession thereof, or by any State,

county, municipality, or local taxing authority. The bank,

including its franchise, its capital, reserves, and surplus, its

advances, and its income, shall be exempt from all taxation now or

hereafter imposed by the United States, by any Territory,

dependency, or possession thereof, or by any State, county,

municipality, or local taxing authority; except that in (FOOTNOTE

1) any real property of the bank shall be subject to State,

Territorial, county, municipal, or local taxation to the same

extent according to its value as other real property is taxed. The

notes, debentures, and bonds issued by any bank, with unearned

coupons attached, shall be accepted at par by such bank in payment

of or as a credit against the obligation of any home-owner debtor

of such bank.

(FOOTNOTE 1) So in original. Word ''in'' probably should not

appear.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 13, 47 Stat. 735; May 28, 1935, ch.

150, Sec. 8, 49 Stat. 295.)

-MISC1-

AMENDMENTS

1935 - Act May 28, 1935, inserted ''and consolidated Federal Home

Loan Bank bonds and debentures'' in first sentence.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1441, 1441b of this

title.

-CITE-

12 USC Sec. 1434 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1434. Depositaries of public money; financial agents

-STATUTE-

When designated for that purpose by the Secretary of the

Treasury, each Federal Home Loan Bank shall be a depositary of

public money, except receipts from customs, under such regulations

as may be prescribed by said Secretary; and it may also be employed

as a financial agent of the Government; and it shall perform all

such reasonable duties as depositary of public money and financial

agent of the Government as may be required of it.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 14, 47 Stat. 736.)

-CITE-

12 USC Sec. 1435 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1435. Obligations as lawful investments; liability of United

States for debentures, etc., issued by banks

-STATUTE-

Obligations of the Federal Home Loan Banks issued with the

approval of the Board under this chapter shall be lawful

investments, and may be accepted as security, for all fiduciary,

trust, and public funds the investment or deposit of which shall be

under the authority or control of the United States or any officer

or officers thereof. The Federal reserve banks are authorized to

act as depositaries, custodians, and/or fiscal agents for Federal

Home Loan Banks in the general performance of their powers under

this chapter. All obligations of Federal Home Loan Banks shall

plainly state that such obligations are not obligations of the

United States and are not guaranteed by the United States.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 15, 47 Stat. 736; Pub. L. 101-73,

title VII, Sec. 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412.)

-MISC1-

AMENDMENTS

1989 - Pub. L. 101-73 substituted ''Board'' for ''board''.

-CITE-

12 USC Sec. 1436 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1436. Reserves and dividends; emergency suspensions of

requirements

-STATUTE-

(a) Accumulation and maintenance of reserves; payment of dividends

Each Federal Home Loan Bank may carry to a reserve account from

time-to-time such portion of its net earnings as may be determined

by its board of directors. Each Federal Home Loan Bank shall

establish such additional reserves and/or make such charge-offs on

account of depreciation or impairment of its assets as the Board

shall require from time to time. No dividends shall be paid except

out of previously retained earnings or current net earnings

remaining after reductions for all reserves, chargeoffs, purchases

of capital certificates of the Financing Corporation, and payments

relating to the Funding Corporation required under this chapter

have been provided for, other than chargeoffs or expenses incurred

by a Bank in connection with the purchase of capital stock of the

Financing Corporation under section 1441 of this title or payments

relating to the Funding Corporation Principal Fund under section

1441b(e) of this title. The reserves of each Federal Home Loan

Bank shall be invested, subject to such regulations, restrictions,

and limitations as may be prescribed by the Board, in direct

obligations of the United States, in obligations, participations,

or other instruments of or issued by the Federal National Mortgage

Association or the Government National Mortgage Association, in

mortgages, obligations, or other securities which are or ever have

been sold by the Federal Home Loan Mortgage Corporation pursuant to

section 1454 or section 1455 of this title, and in such securities

as fiduciary and trust funds may be invested in under the laws of

the State in which the Federal Home Loan Bank is located.

(b) Assistance to member institutions in event of severe financial

conditions

Notwithstanding subsection (a) of this section or any other

provision of this chapter, if the Board determines that severe

financial conditions exist threatening the stability of member

institutions, the Board may suspend temporarily the requirements of

subsection (a) of this section that a portion of net earnings be

set aside semiannually by each Federal Home Loan Bank to a reserve

account and permit each Federal Home Loan Bank to declare and pay

dividends out of undivided profits.

Corporation stock

(1) In general

Notwithstanding subsection (a) of this section, if -

(A) a Federal Home Loan Bank incurs a chargeoff or an expense

in connection with such bank's investment in the stock of the

Financing Corporation under section 1441 of this title;

(B) the Board determines there is an extraordinary need for

the member institutions of the bank to receive dividends; and

account required by the first 2 sentences of subsection (a) of

this section) to zero,

the Board may authorize such bank to declare and pay dividends

out of undivided profits (as such term is defined in section

1441(d)(7) of this title) or the reserve account required by the

first 2 sentences of subsection (a) of this section.

(2) Requirements of section 1441 of this title not affected

Notwithstanding any payment of dividends by any Federal Home

Loan Bank pursuant to an authorization by the Board under

paragraph (1), the applicable provisions of section 1441 of this

title shall continue to apply with respect to such bank, and to

such bank's investment in the Financing Corporation, in the same

manner and to the same extent as if such payment had not been

made.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 16, 47 Stat. 736; Aug. 2, 1954, ch.

649, title II, Sec. 204(a), 68 Stat. 622; Pub. L. 88-560, title

VII, Sec. 701(d)(2), Sept. 2, 1964, 78 Stat. 800; Pub. L. 90-448,

title VIII, Sec. 807(l), Aug. 1, 1968, 82 Stat. 545; Pub. L.

93-383, title VIII, Sec. 805(c)(3), Aug. 22, 1974, 88 Stat. 727;

Pub. L. 97-320, title I, Sec. 124, Oct. 15, 1982, 96 Stat. 1485;

Pub. L. 100-86, title III, Sec. 306(a), Aug. 10, 1987, 101 Stat.

600; Pub. L. 101-73, title VII, Sec. 701(b)(1), (3)(A), 724(a),

Aug. 9, 1989, 103 Stat. 412, 428; Pub. L. 106-102, title VI, Sec.

606(g), Nov. 12, 1999, 113 Stat. 1455.)

-MISC1-

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-102, in third sentence

substituted ''previously retained earnings or current net

earnings'' for ''net earnings'' and struck out '', and then only

with the approval of the Federal Housing Finance Board'' after

''section 1441b(e) of this title'' and struck out fourth sentence

which read as follows: ''Beginning on January 1, 1992, the

preceding sentence shall be applied by substituting 'previously

retained earnings or current net earnings' for 'net earnings'.''

1989 - Subsec. (a). Pub. L. 101-73, Sec. 724(a)(1), substituted

''Each Federal Home Loan Bank may carry to a reserve account from

time-to-time such portion of its net earnings as may be determined

by its board of directors.'' for ''Each Federal Home Loan Bank

shall carry to a reserve account semiannually 20 per centum of its

net earnings until said reserve account shall show a credit balance

equal to 100 per centum of the paid-in capital of such bank. After

said reserve has reached 100 per centum of the paid-in capital of

said bank, 5 per centum of its net earnings shall be added thereto

semiannually. Whenever said reserve shall have been impaired below

100 per centum of the paid-in capital it shall be restored before

any dividends are paid.''

Pub. L. 101-73, Sec. 724(a)(2), substituted ''No dividends shall

be paid except out of net earnings remaining after reductions for

all reserves, chargeoffs, purchases of capital certificates of the

Financing Corporation, and payments relating to the Funding

Corporation required under this chapter have been provided for,

other than chargeoffs or expenses incurred by a Bank in connection

with the purchase of capital stock of the Financing Corporation

under section 1441 of this title or payments relating to the

Funding Corporation Principal Fund under section 1441b(e) of this

title, and then only with the approval of the Federal Housing

Finance Board. Beginning on January 1, 1992, the preceding sentence

shall be applied by substituting 'previously retained earnings or

current net earnings' for 'net earnings'.'' for ''No dividends

shall be paid except out of net earnings remaining after all

reserves and charge-offs required under this chapter have been

provided for, and then only with the approval of the board.''

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board'' wherever appearing.

1987 - Subsec. (c). Pub. L. 100-86 added subsec. (c).

1982 - Pub. L. 97-320 designated existing provisions as subsec.

(a) and added subsec. (b).

1974 - Pub. L. 93-383 inserted reference to mortgages,

obligations, or other securities sold by the Federal Home Loan

Mortgage Corporation pursuant to section 1454 or section 1455 of

this title.

1968 - Pub. L. 90-448 authorized investments in obligations,

participations, or other instruments issued by the Government

National Mortgage Association.

1964 - Pub. L. 88-560 substituted ''in obligations,

participations, or other instruments of or issued by the Federal

National Mortgage Association'' for ''in obligations of the Federal

National Mortgage Association''.

1954 - Act Aug. 2, 1954, inserted reference to obligations of

Federal National Mortgage Association in last sentence.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 724(b) of Pub. L. 101-73 provided that: ''The amendment

made by subsection (a)(1) (amending this section) shall take effect

on January 1, 1992.''

EFFECTIVE DATE OF 1968 AMENDMENT

For effective date of amendment by title VIII of Pub. L. 90-448,

see section 808 of Pub. L. 90-448, set out as an Effective Date

note under section 1716b of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1430, 1438, 1441, 1441b

of this title.

-CITE-

12 USC Sec. 1437 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1437. Repealed. Pub. L. 101-73, title VII, Sec. 703(a), Aug.

9, 1989, 103 Stat. 415

-MISC1-

Section, acts July 22, 1932, ch. 522, Sec. 17, 47 Stat. 736; 1947

Reorg. Plan No. 3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954;

Aug. 11, 1955, ch. 783, title I, Sec. 109(a)(3), 69 Stat. 640; June

29, 1977, Pub. L. 95-56, 91 Stat. 252; Aug. 4, 1977, Pub. L. 95-90,

Sec. 1, 2, 91 Stat. 564; Oct. 15, 1982, Pub. L. 97-320, title I,

Sec. 127, 96 Stat. 1486; Jan. 12, 1983, Pub. L. 97-457, Sec. 8, 96

Stat. 2507; Nov. 30, 1983, Pub. L. 98-181, title VII, Sec. 702(b),

97 Stat. 1267, set forth powers and duties, etc., of Federal Home

Loan Bank Board.

TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY OF FEDERAL SAVINGS

AND LOAN INSURANCE CORPORATION AND FEDERAL HOME LOAN BANK BOARD

Pub. L. 101-73, title IV, Sec. 401-406, Aug. 9, 1989, 103 Stat.

354-363, as amended by Pub. L. 102-233, title III, Sec. 313, Dec.

12, 1991, 105 Stat. 1770, provided that:

''SEC. 401. FSLIC AND FEDERAL HOME LOAN BANK BOARD ABOLISHED.

''(a) In general. -

''(1) FSLIC. - Effective on the date of the enactment of this

Act (Aug. 9, 1989), the Federal Savings and Loan Insurance

Corporation established under section 402 of the National Housing

Act (former 12 U.S.C. 1725) is abolished.

''(2) FHLBB. - Effective at the end of the 60-day period

beginning on the date of the enactment of this Act, the Federal

Home Loan Bank Board and the position of Chairman of the Federal

Home Loan Bank Board are abolished.

''(b) Disposition of Affairs. -

''(1) In general. - During the 60-day period beginning on the

date of the enactment of this Act (Aug. 9, 1989), the Chairman of

the Federal Home Loan Bank Board -

''(A) shall, solely for the purpose of winding up the affairs

of the Federal Savings and Loan Insurance Corporation and the

Federal Home Loan Bank Board -

''(i) manage the employees of the Board and provide for the

payment of the compensation and benefits of any such employee

which accrue before the effective date of the transfer of

such employee pursuant to section 403; and

''(ii) manage any property of the Board and the Corporation

until such property is transferred pursuant to section 405;

and

''(B) may take any other action necessary for the purpose of

winding up the affairs of the Corporation and the Board.

''(2) Availability of funds in fslic resolution fund on a

reimbursable basis. -

''(A) Availability of funds. - Notwithstanding any provision

of section 11A of the Federal Deposit Insurance Act (12 U.S.C.

1821a) (as added by section 215 of this Act), funds in the

FSLIC Resolution Fund shall be available to the Chairman of the

Federal Home Loan Bank Board to pay any expense incurred in

carrying out the requirements of paragraph (1).

''(B) Payment by fdic. - Upon the request of the Chairman of

the Federal Home Loan Bank Board, the Federal Deposit Insurance

Corporation shall pay to the Chairman from the FSLIC Resolution

Fund the amounts requested for expenses described in

subparagraph (A).

''(C) Exclusive source of funds. - No funds or other property

of the Federal Home Loan Bank Board or the Federal Savings and

Loan Insurance Corporation (other than the FSLIC Resolution

Fund) may be used by the Chairman of the Federal Home Loan Bank

Board to pay any expense incurred in carrying out any provision

of this title (see Tables for classification).

''(D) Reimbursement by successor agencies. - Disbursements

from the FSLIC Resolution Fund pursuant to subparagraph (A)

which are attributable to employees described in paragraph

(1)(A)(i) and property described in paragraph (1)(A)(ii) shall

be reimbursed by the agency to which any such employee or

property is transferred.

''(c) Authority and Status of Chairman of the Federal Home Loan

Bank Board. -

''(1) In general. - Notwithstanding the repeal of section 17 of

the Federal Home Loan Bank Act (12 U.S.C. 1437) by section 703 of

this Act, the repeal of section 402(c) of the National Housing

Act (12 U.S.C. 1725(c)) by section 407 of this title, the

abolishment of the Federal Savings and Loan Insurance Corporation

under section 401 of this title, the Chairman of the Federal Home

Loan Bank Board shall have any authority vested in the Chairman

or the Board before such date of enactment (Aug. 9, 1989) which

is necessary for the Chairman to carry out the requirements of

this section, paragraphs (1) and (2) of section 403(b), and

section 405(a) during the 60-day period beginning on such date.

''(2) Other provisions. - For purposes of paragraph (1), the

Chairman of the Federal Home Loan Bank Board shall continue to be

''(A) treated as an officer of the United States during the

60-day period referred to in such subparagraph; and

''(B) entitled to compensation at the annual rate of basic

pay payable for level III of the Executive Schedule (5 U.S.C.

5314).

''(3) No additional compensation if appointed director. -

During the 60-day period beginning on the date of the enactment

of this Act (Aug. 9, 1989), the Chairman of the Federal Home Loan

Bank Board shall not be entitled to any additional compensation

by reason of his appointment as Director of the Office of Thrift

Supervision.

''(d) Status of Employees Before Transfer. -

''(1) Employees of fslic. - Any employee of the Federal Savings

and Loan Insurance Corporation shall be treated as an employee of

the Federal Home Loan Bank Board for purposes of subsection

(b)(1)(A)(i).

''(2) Rule of construction. - The repeal of section 17 of the

Federal Home Loan Bank Act (12 U.S.C. 1437) by section 703 of

this Act, the repeal of section 402(c) of the National Housing

Act (12 U.S.C. 1725(c)) by section 407 of this title, and the

abolishment of the Federal Savings and Loan Insurance Corporation

under section 401 of this title, shall not be construed as

affecting the status of employees of such Corporation or of the

Federal Home Loan Bank Board as employees of an agency of the

United States for purposes of any other provision of law before

the effective date of the transfer of any such employee pursuant

to section 403.

''(e) Continuation of Services. -

''(1) In general. - The Director of the Office of Thrift

Supervision, the Chairperson of the Oversight Board of the

Resolution Trust Corporation, the Chairperson of the Federal

Deposit Insurance Corporation, and the Chairperson of the Federal

Housing Finance Board may use the services of employees and other

personnel and the property of the Federal Home Loan Bank Board

and the Federal Savings and Loan Insurance Corporation, on a

reimbursable basis, to perform functions which have been

transferred to such agencies for such time as is reasonable to

facilitate the orderly transfer of functions transferred pursuant

to any other provision of this Act (see Tables for

classification) or any amendment made by this Act to any other

provision of law.

''(2) Reimbursement. - The reimbursement required under

paragraph (1) with respect to employees, personnel, and property

described in such paragraph shall be made to the FSLIC Resolution

Fund and shall be taken into account in determining the amount of

any reimbursement required under subsection (b)(2)(D).

''(3) Agency services. - Any agency, department, or other

instrumentality of the United States (including any Federal home

loan bank), and any successor to any such agency, department, or

instrumentality, which was providing supporting services to the

Federal Home Loan Bank Board or the Federal Savings and Loan

Insurance Corporation before the enactment of this Act (Aug. 9,

1989) in connection with functions that are transferred to the

Office of Thrift Supervision, the Resolution Trust Corporation,

the Federal Deposit Insurance Corporation, or the Federal Housing

Finance Board shall -

''(A) continue to provide such services, on a reimbursable

basis, until the transfer of such functions is complete; and

''(B) consult with any such agency to coordinate and

facilitate a prompt and reasonable transition.

''(f) Savings Provisions Relating to FSLIC. -

''(1) Existing rights, duties, and obligations not affected. -

Subsection (a) shall not affect the validity of any right, duty,

or obligation of the United States, the Federal Savings and Loan

Insurance Corporation, or any other person, which -

''(A) arises under or pursuant to any section of title IV of

the National Housing Act (former 12 U.S.C. 1724 et seq.); and

''(B) existed on the day before the date of the enactment of

this Act (Aug. 9, 1989).

''(2) Continuation of suits. - No action or other proceeding

commenced by or against the Federal Savings and Loan Insurance

Corporation, or any Federal home loan bank with respect to any

function of the Corporation which was delegated to employees of

such bank, shall abate by reason of the enactment of this Act

(see Tables for classification), except that the appropriate

successor to the interests of such Corporation shall be

substituted for the Corporation or the Federal home loan bank as

a party to any such action or proceeding.

''(g) Savings Provisions Relating to FHLBB. -

''(1) Existing rights, duties, and obligations not affected. -

Subsection (a) shall not affect the validity of any right, duty,

or obligation of the United States, the Federal Home Loan Bank

Board, or any other person, which -

''(A) arises under or pursuant to the Federal Home Loan Bank

Act (12 U.S.C. 1421 et seq.), the Home Owners' Loan Act of 1933

(12 U.S.C. 1461 et seq.), or any other provision of law

applicable with respect to such Board (other than title IV of

the National Housing Act (former 12 U.S.C. 1724 et seq.)); and

''(B) existed on the day before the date of the enactment of

this Act (Aug. 9, 1989).

''(2) Continuation of suits. -

''(A) (sic) In general. - No action or other proceeding

commenced by or against the Federal Home Loan Bank Board, or

any Federal home loan bank with respect to any function of the

Board which was delegated to employees of such bank, shall

abate by reason of the enactment of this Act (see Tables for

classification), except that the appropriate successor to the

interests of such Board shall be substituted for the Board or

the Federal home loan bank as a party to any such action or

proceeding.

''(h) Continuation of Orders, Resolutions, Determinations, and

Regulations. - Subject to section 402, all orders, resolutions,

determinations, and regulations, which -

''(1) have been issued, made, prescribed, or allowed to become

effective by the Federal Savings and Loan Insurance Corporation

or the Federal Home Loan Bank Board (including orders,

resolutions, determinations, and regulations which relate to the

conduct of conservatorships and receiverships), or by a court of

competent jurisdiction, in the performance of functions which are

transferred by this Act (see Tables for classification); and

''(2) are in effect on the date this Act takes effect (Aug. 9,

1989),

shall continue in effect according to the terms of such orders,

resolutions, determinations, and regulations and shall be

enforceable by or against the Director of the Office of Thrift

Supervision, the Federal Deposit Insurance Corporation, the Federal

Housing Finance Board, or the Resolution Trust Corporation, as the

case may be, until modified, terminated, set aside, or superseded

in accordance with applicable law by the Director of the Office of

Thrift Supervision, the Federal Deposit Insurance Corporation, the

Federal Housing Finance Board, or the Resolution Trust Corporation,

as the case may be, by any court of competent jurisdiction, or by

operation of law.

''(i) Identification of Regulations Which Remain in Effect

Pursuant to This Section. - Before the end of the 60-day period

beginning on the date of the enactment of this Act (Aug. 9, 1989),

the Director of the Office of Thrift Supervision and the

Chairperson of the Federal Deposit Insurance Corporation shall -

''(1) identify the regulations and orders which relate to the

conduct of conservatorships and receiverships in accordance with

the allocation of authority between them under this Act (see

Tables for classification) and the amendments made by this Act;

and

''(2) promptly publish notice of such identification in the

Federal Register.

''SEC. 402. CONTINUATION AND COORDINATION OF CERTAIN REGULATIONS.

''(a) Regulations Relating to Insurance Functions. - All

regulations and orders of the Federal Savings and Loan Insurance

Corporation, or the Federal Home Loan Bank Board (in such Board's

capacity as the board of trustees of such Corporation), which are

in effect on the date of the enactment of this Act (Aug. 9, 1989)

and relate to -

''(1) the provision, rates, or cancellation of insurance of

accounts; or

''(2) the administration of the insurance fund of the Federal

Savings and Loan Insurance Corporation,

shall remain in effect according to the terms of such regulations

and orders and shall be enforceable by the Federal Deposit

Insurance Corporation unless determined otherwise by such

Corporation after consultation with the Director of the Office of

Thrift Supervision and, with respect to regulations and orders

relating to the scope of deposit insurance coverage, pursuant to

subsection (c).

''(b) Identification of Regulations Which Remain in Effect

Pursuant to This Section. - Before the end of the 60-day period

beginning on the date of the enactment of this Act (Aug. 9, 1989),

the Director of the Office of Thrift Supervision and the

Chairperson of the Federal Deposit Insurance Corporation shall -

''(1) identify the regulations and orders referred to in

subsection (a) of this section in accordance with the allocation

of authority between them under this Act (see Tables for

classification) and the amendments made by this Act; and

''(2) promptly publish notice of such identification in the

Federal Register.

''(c) Procedure for Differences in Deposit Insurance Coverage

Between FSLIC and FDIC. -

''(1) Transition rule. - Until the effective date of

regulations prescribed under paragraph (3)(B), any determination

of the amount of any insured deposit in any depository

institution which becomes an insured depository institution as a

result of the amendment made to section 4(a) of the Federal

Deposit Insurance Act (12 U.S.C. 1814(a)) by section 205(1) of

this Act shall be made in accordance with the regulations and

interpretations of the Federal Savings and Loan Insurance

Corporation for determining the amount of an insured account

which were in effect on the day before the date of the enactment

of this Act (Aug. 9, 1989).

''(2) Limitation on extent of coverage. - During the period

beginning on the date of the enactment of this Act and ending on

the effective date of regulations prescribed under paragraph

(3)(B), the amount of any insured account which is required to be

treated as an insured deposit pursuant to paragraph (1) shall not

exceed the amount of insurance to which such insured account

would otherwise have been entitled pursuant to the regulations

and interpretations of the Federal Savings and Loan Insurance

Corporation which were in effect on the day before the date of

the enactment of this Act.

''(3) Uniform treatment of insured deposits. - The Federal

Deposit Insurance Corporation shall -

''(A) review its regulations, principles, and interpretations

for deposit insurance coverage and those established by the

Federal Savings and Loan Insurance Corporation; and

''(B) on or before the end of the 270-day period beginning on

the date of the enactment of this Act, prescribe a uniform set

of regulations which shall be applicable to all insured

deposits in insured depository institutions (except to the

extent any provision of this Act, any amendment made by this

Act to the Federal Deposit Insurance Act (12 U.S.C. 1811 et

seq.), or any other provision of law requires or explicitly

permits the Federal Deposit Insurance Corporation to treat

insured deposits of Savings Association Insurance Fund members

differently than insured deposits of Bank Insurance Fund

members).

''(4) Factors required to be considered. - In prescribing

regulations providing for the uniform treatment of deposit

insurance coverage, the Federal Deposit Insurance Corporation

shall consider all relevant factors necessary to promote safety

and soundness, depositor confidence, and the stability of

deposits in insured depository institutions.

''(5) Notice; effective date. - Regulations prescribed under

this subsection shall -

''(A) provide for effective notice to depositors in insured

depository institutions of any change in deposit insurance

coverage which would result under such regulations; and

''(B) take effect on or before the end of the 90-day period

beginning on the date such regulations become final.

''(6) Definitions. - For purposes of this subsection -

''(A) Insured account. - The term 'insured account' has the

meaning given to such term in section 401(c) of the National

Housing Act (former 42 U.S.C. 1724(c)) (as in effect before the

date of the enactment of this Act (Aug. 9, 1989)).

''(B) Insured depository institution. - The term 'insured

depository institution' has the meaning given to such term in

section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C.

1813(c)(2)).

''(d) Interim Treatment of Custodial Accounts. -

''(1) In general. - Subject to paragraph (2) and

notwithstanding subsection (a) or any limitation contained in the

Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) relating

to the amount of deposit insurance available to any 1 borrower,

amounts held in custodial accounts in insured depository

institutions (as defined in section 3(c)(2) of such Act (12

U.S.C. 1813(c)(2))) for the payment of principal, interest, tax,

and insurance payments for mortgage borrowers, shall be insured

under the Federal Deposit Insurance Act in the amount of $100,000

per mortgage borrower.

''(2) Treatment after effective date of new regulations. -

After the effective date of the regulations prescribed under

subsection (c) -

''(A) the amount of deposit insurance available for custodial

accounts shall be determined in accordance with such

regulations; and

''(B) paragraph (1) shall cease to apply with respect to such

accounts.

''(e) Treatment of References in Adjustable Rate Mortgage

Instruments. -

''(1) In general. - For purposes of adjustable rate mortgage

instruments that are in effect as of the date of enactment of

this Act (Aug. 9, 1989), any reference in the instrument to the

Federal Savings and Loan Insurance Corporation, the Federal Home

Loan Bank Board, or institutions insured by the Federal Savings

and Loan Insurance Corporation before such date shall be treated

as a reference to the Federal Deposit Insurance Corporation, the

Federal Housing Finance Board, the Office of Thrift Supervision,

or institutions which are members of the Savings Association

Insurance Fund, as appropriate on the basis of the transfer of

functions pursuant to this Act (see Tables for classification),

unless the context of the reference requires otherwise.

''(2) Substitution for indexes. - If any index used to

calculate the applicable interest rate on any adjustable rate

mortgage instrument is no longer calculated and made available as

a direct or indirect result of the enactment of this Act, any

index -

''(A) made available by the Director of the Office of Thrift

Supervision, the Chairperson of the Federal Deposit Insurance

Corporation, or the Chairperson of the Federal Housing Finance

Board pursuant to paragraph (3); or

''(B) determined by the Director of the Office of Thrift

Supervision, the Chairperson of the Federal Deposit Insurance

Corporation, or the Chairperson of the Federal Housing Finance

Board, pursuant to paragraph (4), to be substantially similar

to the index which is no longer calculated or made available,

may be substituted by the holder of any such adjustable rate

mortgage instrument upon notice to the borrower.

''(3) Agency action required to provide continued availability

of indexes. - Promptly after the enactment of this subsection

(Aug. 9, 1989), the Director of the Office of Thrift Supervision,

the Chairperson of the Federal Deposit Insurance Corporation, and

the Chairperson of the Federal Housing Finance Board shall take

such action as may be necessary to assure that the indexes

prepared by the Federal Savings and Loan Insurance Corporation,

the Federal Home Loan Bank Board, and the Federal home loan banks

immediately prior to the enactment of this subsection and used to

calculate the interest rate on adjustable rate mortgage

instruments continue to be available.

''(4) Requirements relating to substitute indexes. - If any

agency can no longer make available an index pursuant to

paragraph (3), an index that is substantially similar to such

index may be substituted for such index for purposes of paragraph

(2) if the Director of the Office of Thrift Supervision, the

Chairperson of the Federal Deposit Insurance Corporation, or the

Chairperson of the Federal Housing Finance Board, as the case may

be, determines, after notice and opportunity for comment, that -

''(A) the new index is based upon data substantially similar

to that of the original index; and

''(B) the substitution of the new index will result in an

interest rate substantially similar to the rate in effect at

the time the original index became unavailable.

''SEC. 403. DETERMINATION OF TRANSFERRED FUNCTIONS AND EMPLOYEES.

''(a) All FHLBB and FSLIC Employees Shall Be Transferred. - All

employees of the Federal Home Loan Bank Board and the Federal

Savings and Loan Insurance Corporation shall be identified for

transfer under subsection (b) to the Federal Deposit Insurance

Corporation, the Office of Thrift Supervision, or the Federal

Housing Finance Board.

''(b) Functions and Employees Transferred. -

''(1) In general. - The Director of the Office of Thrift

Supervision, the Chairperson of the Oversight Board of the

Resolution Trust Corporation, the Chairperson of the Federal

Deposit Insurance Corporation, the Chairperson of the Federal

Housing Finance Board, and the Chairman of the Federal Home Loan

Bank Board (as of the day before the date of the enactment of

this Act (Aug. 9, 1989)) shall jointly determine the functions or

activities of the Federal Home Loan Bank Board and the Federal

Savings and Loan Insurance Corporation, and the number of

employees of such Board and Corporation necessary to perform or

support such functions or activities, which are transferred from

the Federal Home Loan Bank Board and the Federal Savings and Loan

Insurance Corporation to the Office of Thrift Supervision, the

Resolution Trust Corporation, the Federal Deposit Insurance

Corporation, or the Federal Housing Finance Board, as the case

may be.

''(2) Allocation of employees. - The Director of the Office of

Thrift Supervision, the Chairperson of the Oversight Board of the

Resolution Trust Corporation, the Chairperson of the Federal

Deposit Insurance Corporation, and the Chairperson of the Federal

Housing Finance Board shall allocate the employees of the Federal

Home Loan Bank Board and the Federal Savings and Loan Insurance

Corporation consistent with the number determined pursuant to

paragraph (1) in a manner which such Director, Chairman, and

Chairpersons, in their sole discretion, deem equitable, except

that, within work units, the agency preferences of individual

employees shall be accommodated as far as possible.

''(c) Federal Home Loan Bank Personnel. - Employees of the

Federal home loan banks or the joint offices of such banks who, on

the day before the date of the enactment of this Act (Aug. 9,

1989), are performing functions or activities on behalf of the

Federal Home Loan Bank Board or the Federal Savings and Loan

Insurance Corporation shall be treated as employees of the Federal

Home Loan Bank Board or the Federal Savings and Loan Insurance

Corporation for purposes of determining, pursuant to subsection

(b)(1), the number of employees performing or supporting functions

or activities of such Board or Corporation to the extent such

functions or activities are transferred to the Federal Deposit

Insurance Corporation, the Office of Thrift Supervision, the

Resolution Trust Corporation, or the Federal Housing Finance Board.

''(d) FSLIC Employees Engaged in Conservatorship or Receivership

Functions. - Individuals who, on the day before the date of the

enactment of this Act (Aug. 9, 1989), are employed by the Federal

Savings and Loan Insurance Corporation in such Corporation's

capacity as conservator or receiver of any insured depository

institution shall be treated as employees of the Federal Savings

and Loan Insurance Corporation for purposes of determining,

pursuant to subsection (b)(1), the number of employees performing

or supporting functions or activities of such Corporation if such

conservatorship or receivership is transferred to the Federal

Deposit Insurance Corporation or the Resolution Trust Corporation.

''SEC. 404. RIGHTS OF EMPLOYEES OF ABOLISHED AGENCIES.

''All employees identified for transfer under subsection (b) of

section 403 (other than individuals described in subsection (c) or

(d) of such section) shall be entitled to the following rights:

''(1) Each employee so identified shall be transferred to the

appropriate agency or entity for employment no later than 60 days

after the date of the enactment of this Act (Aug. 9, 1989) and

such transfer shall be deemed a transfer of function for the

purpose of section 3503 of title 5, United States Code.

''(2) Each transferred employee shall be guaranteed a position

with the same status, tenure, grade, and pay as that held on the

day immediately preceding the transfer. Each such employee

holding a permanent position shall not be involuntarily separated

or reduced in grade or compensation for 1 year after the date of

transfer, except for cause or, if the employee is a temporary

employee, separated in accordance with the terms of the

appointment.

''(3)(A) In the case of employees occupying positions in the

excepted service or the Senior Executive Service, any appointment

authority established pursuant to law or regulations of the

Office of Personnel Management for filling such positions shall

be transferred, subject to subparagraph (B).

''(B) An agency or entity may decline a transfer of authority

under subparagraph (A) (and the employees appointed pursuant

thereto) to the extent that such authority relates to positions

excepted from the competitive service because of their

confidential, policy-making, policy-determining, or

policy-advocating character, and noncareer positions in the

Senior Executive Service (within the meaning of section

3132(a)(7) of title 5, United States Code).

''(4) If any agency or entity to which employees are

transferred determines, after the end of the 1-year period

beginning on the date the transfer of functions to such agency or

entity is completed, that a reorganization of the combined work

force is required, that reorganization shall be deemed a 'major

reorganization' for purposes of affording affected employees

retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5,

United States Code.

''(5) Any employee accepting employment with any agency or

entity (other than the Office of Thrift Supervision) as a result

of such transfer may retain for 1 year after the date such

transfer occurs membership in any employee benefit program of the

Federal Home Loan Bank Board, including insurance, to which such

employee belongs on the date of the enactment of this Act (Aug.

9, 1989) if -

''(A) the employee does not elect to give up the benefit or

membership in the program; and

''(B) the benefit or program is continued by the Director of

the Office of Thrift Supervision.

The difference in the costs between the benefits which would have

been provided by such agency or entity and those provided by this

section shall be paid by the Director of the Office of Thrift

Supervision. If any employee elects to give up membership in a

health insurance program or the health insurance program is not

continued by the Director of the Office of Thrift Supervision,

the employee shall be permitted to select an alternate Federal

health insurance program within 30 days of such election or

notice, without regard to any other regularly scheduled open

season.

''(6) Any employee employed by the Office of Thrift Supervision

as a result of the transfer may retain membership in any employee

benefit program of the Federal Home Loan Bank Board, including

insurance, which such employee has on the date of enactment of

this Act, if such employee does not elect to give up such

membership and the benefit or program is continued by the

Director of the Office of Thrift Supervision. If any employee

elects to give up membership in a health insurance program or the

health insurance program is not continued by the Director of the

Office of Thrift Supervision, such employee shall be permitted to

select an alternate Federal health insurance program within 30

days of such election or discontinuance, without regard to any

other regularly scheduled open season.

''(7) A transferring employee in the Senior Executive Service

shall be placed in a comparable position at the agency or entity

to which such employee is transferred.

''(8) Transferring employees shall receive notice of their

position assignments not later than 120 days after the effective

date of their transfer.

''(9) Upon the termination of the Resolution Trust Corporation

pursuant to section 21A(m)((o)) of the Federal Home Loan Bank Act

(12 U.S.C. 1441a(o)), any employee of the Federal Deposit

Insurance Corporation assigned to the Resolution Trust

Corporation shall be reassigned to a position within the Federal

Deposit Insurance Corporation in accordance with the provisions

of paragraphs (2) and (4) through (7) of this section, except

that the liability for any difference in the costs of benefits

described in paragraph (5) shall be a liability of the Resolution

Trust Corporation and not the Office of Thrift Supervision.

''SEC. 405. DIVISION OF PROPERTY AND FACILITIES.

''Before the end of the 60-day period beginning on the date of

the enactment of this Act (Aug. 9, 1989), the Director of the

Office of Thrift Supervision, the Chairperson of the Oversight

Board of the Resolution Trust Corporation, the Chairperson of the

Federal Deposit Insurance Corporation, and the Chairperson of the

Federal Housing Finance Board shall jointly divide all property of

the Federal Savings and Loan Insurance Corporation and the Federal

Home Loan Bank Board used to perform functions and activities of

the Federal Home Loan Bank Board among the Office of Thrift

Supervision, the Resolution Trust Corporation, the Federal Deposit

Insurance Corporation, and the Federal Housing Finance Board in

accordance with the division of responsibilities, functions, and

activities effected by this Act (see Tables for classification).

Any disagreement between them in so doing shall be resolved by the

Director of the Office of Management and Budget.

''SEC. 406. REPORT.

''Before the end of the 60-day period beginning on the date of

the enactment of this Act (Aug. 9, 1989), the Chairman of the

Federal Home Loan Bank Board shall provide by written report to the

Secretary of the Treasury, the Director of the Office of Management

and Budget, and the Congress, a final accounting of the finances

and operations of the Federal Savings and Loan Insurance

Corporation.''

TRANSFERRED EMPLOYEES OF FEDERAL HOME LOAN BANKS AND JOINT OFFICES

Pub. L. 101-73, title VII, Sec. 722, Aug. 9, 1989, 103 Stat. 426,

provided that:

''(a) In General. - Each employee of the Federal Home Loan Banks

or joint offices of such Banks performing a function identified for

transfer under section 403 of this Act (set out above), including

employees who otherwise would be ineligible for employment by the

United States because of their citizenship, shall be transferred

for employment not later than 60 days after the date of the

enactment of this Act (Aug. 9, 1989).

''(b) Notice to Employees. - Transferring employees shall receive

notice of their position assignments not later than 120 days after

the effective date of their transfer.

''(c) Guaranteed Position. - Each transferred employee shall be

guaranteed a position with the same status and tenure as that held

by such employee on the day immediately preceding the transfer.

Each such employee holding a permanent position shall not be

involuntarily separated for one year after the date of transfer,

except for cause.

''(d) Pay and Benefits. - Each employee transferred under this

section shall be entitled to receive, during the one-year period

immediately following the transfer, pay and benefits comparable to

those received by such employee immediately preceding the

transfer. Where necessary or appropriate to further the safety and

soundness of the thrift industry, the employing agency may continue

the pre-transfer compensation of any transferring employee for up

to 2 years beyond the expiration of the period provided for under

the preceding sentence. Such pay and benefits shall be subject to

the comparability provisions of this Act (see Tables for

classification). Any transferred employee who suffers a reduction

of pay or benefits as a result of such comparability provisions

shall be compensated for such reduction during the 1 year period

following the transfer by assessments from the Federal Home Loan

Bank or joint office of such Banks, from which the employee

transferred. In any event, this subsection shall only apply to a

transferred employee while such employee remains with the agency to

which the employee is transferred.

''(e) Health Insurance. - If the health insurance program of a

transferred employee is not continued by the agency to which the

employee is transferred, such employee may elect to participate in

the agency's health insurance program notwithstanding health

conditions pre-existing at the time of election or enrollment into

an alternate health insurance program of the agency to which he or

she is transferred and without regard to any other regularly

scheduled open season. Such election shall be made within 30 days

of the transfer.

''(f) Equitable Treatment. - The Director of the Office of Thrift

Supervision or the Chairperson of the Federal Housing Finance Board

shall take such action as is necessary on a case-by-case basis so

that employees transferring under this section receive equitable

treatment regarding credit for prior service with a Federal entity

or instrumentality, or with a Federal Home Loan Bank or joint

office of such Banks, with respect to the transferring employees'

retirement accounts and the transferring employees' accrued leave

or vacation time, in recognition of the transferring employees'

supervisory service.

''(g) Special Rule for Certain Annuitants. - An individual who

was a reemployed annuitant on July 26, 1989, and who is transferred

under this section, shall not be subject to the deduction from pay

required by section 8344 or 8468 of title 5, United States Code,

during the 1-year period beginning on the date of enactment of the

Financial Institutions Reform, Recovery, and Enforcement Act of

1989 (Aug. 9, 1989).''

TRANSITIONAL PROVISIONS

Pub. L. 101-73, title VII, Sec. 723, Aug. 9, 1989, 103 Stat. 427,

provided that:

''(a) Federal Home Loan Banks' Share of Administrative Expenses.

- The Federal Home Loan Banks shall pay to the Director of the

Office of Thrift Supervision the amount obtained by multiplying the

administrative expenses of the Office of Thrift Supervision

incurred in connection with functions of the Banks that are

transferred to the Office (less any fees or assessments collected

by the Office) by a fraction -

''(1) the numerator of which is the amount of such expenses of

the Federal Home Loan Bank Board and the Federal Savings and Loan

Insurance Corporation paid by the Banks during the 1-year period

ending on the date of enactment of this Act (Aug. 9, 1989); and

''(2) the denominator of which is the total expenses of such

Board and Corporation during such period.

No payment under this subsection is required after December 31,

1989.

''(b) Compensation of Supervisory and Examinations Employees. -

The Federal Home Loan Banks shall continue to pay the compensation

of employees of the Federal Home Loan Banks or the joint offices of

such banks who, on the day before the date of the enactment of this

Act (Aug. 9, 1989), are performing supervisory and examination

functions until such supervisory and examination functions are

transferred under this Act (see Tables for classification).

Thereafter, the obligation of the Federal Home Loan Banks hereunder

to pay such applicable compensation shall continue until the later

of -

''(1) the date which is 120 days after the date of transfer of

such supervisory and examination functions to the Office of

Thrift Supervision, or

''(2) March 31, 1990.

Payment of such compensation by the Federal Home Loan Banks shall

be in lieu of, and not in addition to, the payment of compensation

by the Office of Thrift Supervision.

''(c) Facilities and Support Services. - Until December 31, 1990,

the Federal Home Loan Banks, as necessary, shall (with respect to

supervisory and examination functions performed by employees

transferred from the Federal Home Loan Banks or joint offices of

such Banks to the Office of Thrift Supervision), provide the Office

of Thrift Supervision facilities and support services comparable to

those presently provided for the employees of the Federal Home Loan

Banks or joint offices of such Banks performing such supervisory

and examination functions, including office space, furniture and

equipment, computer, personnel, and other support services. With

respect to supervisory and examination functions presently

performed by employees of individual Federal Home Loan Banks, each

such Bank will only be required to provide such facilities and

support services to the extent that the functions continue to be

performed in that Bank's offices.

''(d) Principal Supervisory Agent. - Beginning on the date of

enactment of this Act (Aug. 9, 1989) until the Director of the

Office of Thrift Supervision shall otherwise provide, the Principal

Supervisory Agent for each Federal Home Loan Bank district shall be

the senior supervisory official (other than the President of the

Federal Home Loan Bank) employed by the Federal Home Loan Bank in

such district on the day before the date of the enactment of this

Act, and such employees performing supervisory and examination

functions shall continue to be responsible for the supervision and

examination of savings associations within such district.''

SPECIAL ACCOUNT

Pub. L. 101-73, title VII, Sec. 725, Aug. 9, 1989, 103 Stat. 429,

provided that: ''At the time of dissolution of the Federal Home

Loan Bank Board, all such moneys and funds as shall remain in the

special deposit account of the Federal Home Loan Bank Board, or

other such accounts, shall become the property of the Federal

Housing Finance Board.''

IMPROVEMENTS IN SUPERVISORY PROCESS

Pub. L. 100-86, title IV, Sec. 407(a)-(c), Aug. 10, 1987, 101

Stat. 616, 617, provided that:

''(a) Enhanced Flexibility in the Supervisory Process. - The

Federal Home Loan Bank Board (acting as such under the Federal Home

Loan Bank Act (12 U.S.C. 1421 et seq.) and in the Board's capacity

as the board of trustees of the Federal Savings and Loan Insurance

Corporation under section 402(a) of the National Housing Act (12

U.S.C. 1725(a))) shall issue guidelines which provide greater

flexibility for supervisory agents, examiners, and other employees

and agents of the Board, the Federal Savings and Loan Insurance

Corporation, and the Federal home loan banks in applying

regulations, standards, and other requirements of the Board or such

Corporation with regard to particular situations or particular

thrift institutions.

''(b) Particular Guidelines Required. - The guidelines issued

under subsection (a) shall contain the following provisions:

''(1) Flexible approval process for renegotiated loans. - A

provision establishing a flexible procedure for obtaining

supervisory approval of the terms of loans renegotiated by thrift

institutions if a supervisory agreement is in effect between such

institution and the principal supervisory agent of the Federal

home loan bank district where such institution is located.

''(2) Recognition of additional financial capability of a

borrower. - A provision permitting examiners and other employees

and agents of the Board, the Federal Savings and Loan Insurance

Corporation, and the Federal home loan banks to take into

account, to the extent consistent with the practices of the

Federal banking agencies, other financial resources of a borrower

(in addition to the financial assets of the borrower which are

pledged to secure a loan) in classifying the assets of the thrift

institution which holds a loan made to such borrower or with

recourse to the borrower.

''(3) Appraisal review. - A provision establishing an appraisal

review system to avoid overly optimistic or conservative

appraisals with the goal of achieving appraisals that are more

consistent in reflecting underlying values.

''(4) 1-to-4 family residences. - A provision eliminating the

scheduled item system except as such system relates to 1-to-4

family residences.

''(c) Definitions. - For purposes of subsections (a) and (b) -

''(1) Thrift institution. - The term 'thrift institution' means

''(A) any association (within the meaning given to such term

in section 2(d) of the Home Owners' Loan Act of 1933 (12 U.S.C.

1462(d)));

''(B) any insured institution (within the meaning given to

such term in section 401(a) of the National Housing Act (12

U.S.C. 1724(a))); and

''(C) any member (within the meaning given to such term in

section 2(4) of the Federal Home Loan Bank Act (12 U.S.C.

1422(4))).

''(2) Board. - The term 'Board' means the Federal Home Loan

Bank Board.

''(3) Federal banking agency. - The term 'Federal banking

agency' means the Comptroller of the Currency, the Board of

Governors of the Federal Reserve System, and the Federal Deposit

Insurance Corporation.''

GUIDELINES RESPECTING ACTION ON APPLICATIONS TO BANK BOARD OR

FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION

Pub. L. 100-86, title IV, Sec. 410(a), (c), (d), Aug. 10, 1987,

101 Stat. 620, provided that:

''(a) In General. - The Federal Home Loan Bank Board shall

promulgate guidelines which provide that with respect to each type

of completed application (other than an application under section

408(g) of the National Housing Act (12 U.S.C. 1730a(g))) by any

person for approval by the Federal Home Loan Bank Board or the

Federal Savings and Loan Insurance Corporation, the application

shall be deemed to be approved as of the end of the period

prescribed under such guidelines unless the Board or the Federal

Savings and Loan Insurance Corporation, as the case may be,

approves or disapproves such application before the end of such

period.

''(c) Report to Congress. - Before the end of the 60-day period

beginning on the date of the enactment of this Act (Aug. 10, 1987),

the Federal Home Loan Bank Board shall submit to the Committee on

Banking, Finance and Urban Affairs of the House of Representatives

and the Committee on Banking, Housing, and Urban Affairs of the

Senate a report containing the guidelines required to be

promulgated under subsection (a).

''(d) Effective Date. - The guidelines required to be promulgated

under subsection (a) shall take effect at the end of the 60-day

period referred to in subsection (c).''

GUIDELINES FOR ASSET DISPOSITION

Pub. L. 100-86, title IV, Sec. 411, Aug. 10, 1987, 101 Stat. 620,

which directed Federal Home Loan Bank Board to submit, not later

than 6 months after Aug. 10, 1987, to congressional committees a

report containing appropriate new guidelines to prevent dumping of

assets over which it had direct or indirect control and which the

Board was to promulgate at end of such period, ceased to be

effective on date that notice of completion of all net new

borrowing by Financing Corporation is published in Federal Register

(Mar. 30, 1992). See section 416 of Pub. L. 100-86, set out as a

Sunset and Savings Provision note under section 1441 of this title.

EXPANSION OF USE OF UNDERUTILIZED MINORITY THRIFT INSTITUTIONS

Pub. L. 100-86, title IV, Sec. 412, Aug. 10, 1987, 101 Stat. 620,

provided that:

''(a) Consultation on Expanded Use. - The Secretary of the

Treasury shall consult with the Federal Home Loan Bank Board and

the Federal Savings and Loan Insurance Corporation on methods for

increasing the use of underutilized minority thrift institutions as

depositaries or financial agents of Federal agencies.

''(b) Designation of Minority Thrift Institutions Involved in

Capital Recovery Program as Underutilized Thrift. - If the Federal

Home Loan Bank Board approves any plan submitted under regulations

prescribed under section 10 of the Home Owners' Loan Act of 1933

(12 U.S.C. 1467a) (as added by section 404(a) of this title) or

section 416 of the National Housing Act (12 U.S.C. 1730i) (as added

by section 404(c) (404(b)) of this title) by any minority

institution (as defined in each such section), such minority

institution shall be designated by the Board as an underutilized

thrift institution for purposes of increasing the use of such

association as a depositary or financial agent of other Federal

agencies.

''(c) Report to Congress. - Before the end of the 6-month period

beginning on the date of the enactment of this Act (Aug. 10, 1987),

the Secretary of the Treasury, the Federal Home Loan Bank Board,

and the Federal Savings and Loan Insurance Corporation shall each

submit a report to the Congress on actions taken by such Secretary

or agency pursuant to subsection (a) or (b).

''(d) Thrift Institution Defined. - For purposes of this section,

the term 'thrift institution' has the meaning given to such term in

section 407(c)(1) (section 407(c)(1) of Pub. L. 100-86, set out as

a note above).''

CONGRESSIONAL OVERSIGHT

Pub. L. 100-86, title IV, Sec. 415, Aug. 10, 1987, 101 Stat. 622,

provided that:

''(a) Banking Committee Review of Panel Actions. - The Committee

on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate shall monitor and review the actions taken by

each review panel established pursuant to the amendment made by

section 407(d) of this Act (enacting former section 1442a of this

title).

''(b) Other Congressional Oversight. - The Federal Home Loan Bank

Board shall submit a report to the Committee on Banking, Finance

and Urban Affairs (now Committee on Financial Services) of the

House of Representatives, at the end of the 6-month period

beginning on the date of the enactment of this title (Aug. 10,

1987), at the end of the 1-year period beginning on such date, and

on an annual basis after the end of such 1-year period, containing

''(1) a description of the Board's existing manpower and

talent;

''(2) an estimate of the Board's projected manpower and talent

needs for the year, including the cost of such projected needs;

''(3) a description and explanation of the goals and

objectives, of the Board and all its related entities (including

the Federal Asset Disposition Association), for the coming year

and the management strategies to be employed by such entities in

accomplishing such goals and objectives;

''(4) a summary of the operations, receipts, expenses, and

expenditures, of the Board and all its related entities

(including the Federal Asset Disposition Association), during the

preceding year; and

''(5) a summary of the operations and the aggregate receipts,

expenses, and expenditures of any other person not referred to in

paragraph (4), including receivers, conservators, accountants,

attorneys, and consultants, who is engaged in any activity on

behalf of the Board or any other entity which is referred to in

such paragraph, to the extent such operations, receipts,

expenses, and expenditures are in connection with such activity.

''(c) Appearance. - The Federal Home Loan Bank Board and the

Federal Savings and Loan Insurance Corporation shall, before the

beginning of each fiscal year, appear before the Committee on

Banking, Finance and Urban Affairs (now Committee on Financial

Services) of the House of Representatives and the Committee on

Banking, Housing, and Urban Affairs of the Senate to describe and

explain each such agency's plans and proposals with respect to

administrative expenses for such fiscal year.

''(d) Guidelines for Employment of Outside Accountants,

Attorneys, Conservators, and Other Consultants. - Before the end of

the 6-month period beginning on the date of the enactment of this

Act (Aug. 10, 1987), the Federal Home Loan Bank Board shall submit

to the Committee on Banking, Finance and Urban Affairs of the House

of Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate a report containing guidelines to improve the

management of and control over all outside accountants, attorneys,

conservators, consultants, and other persons whose services are

employed by the Board, the Federal Savings and Loan Insurance

Corporation, the Federal Asset Disposition Association, the

principal supervisory agent for any Federal home loan bank

district, or any other entity created, owned, or controlled by the

Board in connection with any function for which the Board has

direct or indirect regulatory or supervisory responsibility.''

STUDY AND REPORTS CONCERNING DIRECT INVESTMENTS

Pub. L. 100-86, title XII, Sec. 1203, Aug. 10, 1987, 101 Stat.

661, provided that:

''(a) Study Required. - The Federal Home Loan Bank Board shall

conduct a study of the effect of direct investment activities on

insured institutions, including comparative analyses of the effect

of direct investment activities on -

''(1) different sized insured institutions;

''(2) State chartered insured institutions;

''(3) federally chartered insured institutions; and

''(4) insured institutions in each of the Supervisory

Examinations Rating Classifications.

''(b) Report Required. - Not later than 18 months after the date

of enactment of this Act (Aug. 10, 1987), the Federal Home Loan

Bank Board shall submit to the Committee on Banking, Finance and

Urban Affairs of the House of Representatives and the Committee on

Banking, Housing, and Urban Affairs of the Senate, a report

containing the findings and conclusions of the Board with respect

to the study required under subsection (a), including -

''(1) the findings and conclusions of the Board concerning the

losses to the insurance fund and the degree to which such losses

were the result of direct investment activities with respect to

each of the classes of institutions described in subsection (a);

and

''(2) a comparison of the effects of direct investment

activities prior to April 16, 1987, and the effect of such

activities on or after April 16, 1987, for each of the classes of

institutions described in subsection (a) and the losses to the

insurance fund as a result of such activities.

''(c) Prior Reports to Congress on Changes To Direct Investment

Regulations. -

''(1) In general. - Not less than 90 days before final approval

is given by the Federal Home Loan Bank Board to any regulation

which repeals or modifies (or has the effect of repealing or

modifying) any regulation limiting direct investment activities,

the Board shall submit to the Committee on Banking, Finance and

Urban Affairs (now Committee on Financial Services) of the House

of Representatives and the Committee on Banking, Housing, and

Urban Affairs of the Senate a report describing the proposed

regulation and the reasons for the proposed regulation, including

the effect of such regulation on the insurance fund.

''(2) Prospective application of rule. - Paragraph (1) shall

not apply with respect to Board Resolution Numbered 87-215 and

Board Resolution Numbered 87-215A.

''(d) Direct Investment Activity Defined. - For purposes of this

section, the term 'direct investment activities' means activities

which are limited under Board Resolution Numbered 87-215 and Board

Resolution Numbered 87-215A.''

-CITE-

12 USC Sec. 1438 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1438. Administrative expenses

-STATUTE-

(a) Repealed. Pub. L. 101-73, title VII, Sec. 712, Aug. 9, 1989,

103 Stat. 419

(b) Assessments for administrative expenses

(1) In general

The Board may impose a semiannual assessment on the Federal

Home Loan Banks, the aggregate amount of which is sufficient to

provide for the payment of the Board's estimated expenses for the

period for which such assessment is made.

(2) Deficiencies

If, at any time, amounts available from any assessment for any

semiannual period are insufficient to cover the expenses of the

Board incurred in carrying out the provisions of this chapter

during such period, the Board may make an immediate assessment

against the Banks to cover the amount of the deficiency for such

semiannual period.

(3) Surpluses

If, at the end of any semiannual period for which an assessment

is made, any amount remains from such assessment, such amount

will be deducted from the assessment on the Banks by the Board

for the following semiannual period.

United States; legal investments; approval of plans and

designs; custody, management, and control; receipts; expense

exclusions; property defined; budget preparation program;

audit; zoning regulations; delegation of functions; limitation

on obligations

(1) The Director of the Office of Thrift Supervision, utilizing

the services of the Administrator of General Services (hereinafter

referred to as the ''Administrator''), and subject to any

limitation hereon which may hereafter be imposed in appropriation

Acts, is hereby authorized -

(A) to acquire, in the name of the United States, real property

in the District of Columbia, for the purposes set forth in this

subsection;

(B) to construct, develop, furnish, and equip such buildings

thereon and such facilities as in its judgment may be appropriate

to provide, to such extent as the Director of the Office of

Thrift Supervision may deem advisable, suitable and adequate

quarters and facilities for the Director of the Office of Thrift

Supervision and the agencies under its administration or

supervision;

(D) to make or enter into contracts for any of the foregoing.

(2) The Director of the Office of Thrift Supervision may require

of the respective banks, and they shall make to the Director of the

Office of Thrift Supervision, such advances of funds for the

purposes set out in paragraph (1) as in the sole judgment of the

Director of the Office of Thrift Supervision may from time to time

be advisable. Such advances shall be in addition to the

assessments authorized in subsection (b) of this section and shall

be apportioned by the Director of the Office of Thrift Supervision

among the banks in proportion to the total assets of the respective

banks, determined in such manner and as of such times as the

Director of the Office of Thrift Supervision may prescribe. Each

such advance shall bear interest at the rate of 4 1/2 per centum

per annum from the date of the advance and shall be repaid by the

Director of the Office of Thrift Supervision in such installments

and over such period, not longer than twenty-five years from the

making of the advance, as the Director of the Office of Thrift

Supervision may determine. Payments of interest and principal upon

such advances shall be made from receipts of the Director of the

Office of Thrift Supervision or from other sources which may from

time to time be available to the Director of the Office of Thrift

Supervision. The obligation of the Director of the Office of Thrift

Supervision to make any such payment shall not be regarded as an

obligation of the United States. To such extent as the Director of

the Office of Thrift Supervision may prescribe any such obligation

shall be regarded as a legal investment for the purposes of

subsections (g) and (h) of section 1431 of this title and for the

purposes of section 1436 of this title.

(3) The plans and designs for such buildings and facilities and

for any such enlargement, remodeling, or reconstruction shall, to

such extent as the chairperson of (FOOTNOTE 1) the Director of the

Office of Thrift Supervision may request, be subject to his

approval.

(FOOTNOTE 1) So in original. Words ''the chairperson of''

probably should not appear.

(4) Upon the making of arrangements mutually agreeable to the

Director of the Office of Thrift Supervision and the Administrator,

which arrangements may be modified from time to time by mutual

agreement between them and may include but shall not be limited to

the making of payments by the Director of the Office of Thrift

Supervision and such agencies to the Administrator and by the

Administrator to the Director of the Office of Thrift Supervision,

the custody, management, and control of such buildings and

facilities and of such real property shall be vested in the

Administrator in accordance therewith. Until the making of such

arrangements such custody, management, and control, including the

assignment and allotment and the reassignment and reallotment of

building and other space, shall be vested in the Director of the

Office of Thrift Supervision.

(5) Any proceeds (including advances) received by the Director of

the Office of Thrift Supervision in connection with this

subsection, and any proceeds from the sale or other disposition of

real or other property acquired by the Director of the Office of

Thrift Supervision under this subsection, shall be considered as

receipts of the Director of the Office of Thrift Supervision, and

obligations and expenditures of the Director of the Office of

Thrift Supervision and such agencies in connection with this

subsection shall not be considered as administrative expenses. As

used in this subsection, the term ''property'' shall include

interests in property.

(6) With respect to its functions under this subsection the

Director of the Office of Thrift Supervision shall (A) annually

prepare and submit a budget program as provided in chapter 91 of

title 31 with regard to wholly owned Government corporations, and

for purposes of this sentence, the terms ''wholly owned Government

corporations'' and ''Government corporations,'' wherever used in

such chapter, shall include the Director of the Office of Thrift

Supervision, and (B) maintain an integral set of accounts which

shall be audited by the General Accounting Office in accordance

with the principles and procedures applicable to commercial

corporate transactions as provided in such title, and no other

settlement or adjustment shall be required with respect to

transactions under this subsection or with respect to claims,

demands, or accounts by or against any person arising thereunder.

The first budget program shall be for the first full fiscal year

beginning on or after the date of the enactment of this

subsection. Except as otherwise provided in this subsection or by

the Director of the Office of Thrift Supervision, the provisions of

this subsection and the functions thereby or thereunder subsisting

shall be applicable and exercisable notwithstanding and without

regard to the Act of June 20, 1938, except that the proviso of

section 16 thereof shall apply to any building constructed under

this subsection, and section 306 of the Act of July 30, 1947 (61

Stat. 584), or any other provision of law relating to the

construction, alteration, repair, or furnishing of public or other

buildings or structures or the obtaining of sites therefor, but any

person or body in whom any such function is vested may provide for

delegation or redelegation of the exercise of such function.

(7) No obligation shall be incurred and no expenditure, except in

liquidation of obligation, shall be made pursuant to the first two

subparagraphs of paragraph (1) of this subsection if the total

amount of all obligations incurred pursuant thereto would thereupon

exceed $13,200,000, or such greater amount as may be provided in an

appropriation Act or other law.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 18, 47 Stat. 737; Pub. L. 89-754,

title X, Sec. 1016(b), Nov. 3, 1966, 80 Stat. 1293; Pub. L. 101-73,

title VII, Sec. 701(b)(2), (b)(3)(B), 711, 712, Aug. 9, 1989, 103

Stat. 412, 419; Pub. L. 104-66, title II, Sec. 2191, Dec. 21, 1995,

109 Stat. 732; Pub. L. 106-102, title VI, Sec. 606(h), Nov. 12,

1999, 113 Stat. 1455.)

-REFTEXT-

REFERENCES IN TEXT

Date of the enactment of this subsection and fiscal year in which

this subsection is enacted, referred to in subsec. (c)(6), mean

Nov. 3, 1966, the date of enactment of Pub. L. 89-754, and fiscal

year 1967, respectively.

Act of June 20, 1938, referred to in subsec. (c)(6), is act June

20, 1938, ch. 534, 52 Stat. 797, as amended, which is not

classified to the Code.

Section 306 of the Act of July 30, 1947, referred to in subsec.

(c)(6), is section 306 of act July 30, 1947, ch. 358, 61 Stat. 584,

which is set out, in part, as a note under section 585 of Title 40,

Public Buildings, Property, and Works. The remainder of section 306

of act of July 30, 1947, was set out as a note under section 19 of

former Title 40, Public Buildings, Property, and Works, and has

been omitted from the Code.

-COD-

CODIFICATION

Subsec. (c)(6) is set out in this supplement to change

translation appearing in main edition.

In subsec. (c)(6), ''chapter 91 of title 31'' and ''such

chapter'' substituted for ''title I of the Government Corporation

Control Act (31 U.S.C. 846 et seq.)'' and ''such title'',

respectively, on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13,

1982, 96 Stat. 1067, the first section of which enacted Title 31,

Money and Finance.

-MISC3-

AMENDMENTS

1999 - Subsec. (b)(4). Pub. L. 106-102 struck out heading and

text of par. (4). Text read as follows: ''On or after the effective

date of the Financial Institutions Reform, Recovery, and

Enforcement Act of 1989, the Board may levy a one-time special

assessment on the Banks pursuant to this subsection for the Board's

estimated expenses for the transitional period following enactment

of such Act, if such assessment is made before the Board's first

semiannual assessment under paragraph (1).''

1995 - Subsec. (c)(6)(B). Pub. L. 104-66 struck out ''annually''

after ''shall be audited'', substituted ''no other settlement'' for

''no other audit, settlement,'', and struck out '', and the first

audit shall be for the remainder of the fiscal year in which this

subsection is enacted'' after ''enactment of this subsection''.

1989 - Subsec. (a). Pub. L. 101-73, Sec. 712, struck out subsec.

(a) which authorized appropriation of $300,000 for all necessary

expenses of the board, together with expenses preliminary to

organization and establishment of the banks created hereunder,

until the end of the fiscal year 1933.

Subsec. (b). Pub. L. 101-73, Sec. 711, amended subsec. (b)

generally. Prior to amendment, subsec. (b) read as follows: ''The

board shall have power to levy semiannually upon the Federal Home

Loan Banks, and they shall pay, on such equitable basis as the

board shall determine, an assessment sufficient in its judgment to

provide for the payment of its estimated expenses for the half year

succeeding the levying of each such assessment, beginning with the

second half of the calendar year 1933. All expenses of the board

incurred in carrying out the provisions of this chapter, as

determined by it, beginning July 1, 1933, shall be paid from the

proceeds of such assessments, and if any deficiency shall occur in

such fund at any time between such semiannual assessments the board

shall have power to make an immediate assessment against the banks

to cover such deficiency on the same basis as the original

assessment. If any surplus shall remain from any assessment after

the expiration of the semiannual period for which it was levied,

such surplus may be deducted from the next following assessment.

Such assessments may include such amounts as the board may deem

advisable for carrying out the provisions of subsection (c) of this

section.''

Subsec. (c). Pub. L. 101-73, Sec. 701(b)(3)(B), which directed

the amendment of subsec. (c) by striking out ''Federal Home Loan

Bank Board'' and ''board'' each place such terms appear and

inserting ''Director of the Office of Thrift Supervision'', was

executed by substituting ''Director of the Office of Thrift

Supervision'' for ''board'' wherever such term appeared. The term

''Federal Home Loan Bank Board'' did not appear in subsec. (c).

Subsec. (c)(3). Pub. L. 101-73, Sec. 701(b)(2), substituted

''chairperson'' for ''chairman''.

1966 - Subsec. (b). Pub. L. 89-754, Sec. 1016(b)(1), provided

that assessments may include such amounts as the board may deem

advisable for carrying out provisions of subsec. (c).

Subsec. (c). Pub. L. 89-754, Sec. 1016(b)(2), added subsec. (c).

-CITE-

12 USC Sec. 1438a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1438a. Nonadministrative expenses; expenses of studies and

investigations

-STATUTE-

On and after July 12, 1960, expenses of the Board in making

studies or investigations specifically directed by law, or

requested by the Congress or either House thereof or by a committee

of either House, including services authorized by section 3109 of

title 5, shall be considered as nonadministrative expenses.

-SOURCE-

(Pub. L. 86-626, title II, Sec. 201, July 12, 1960, 74 Stat. 441.)

-COD-

CODIFICATION

''Section 3109 of title 5'' substituted in text for ''section 15

of the Act of August 2, 1946 (5 U.S.C. 55a)'' on authority of

section 7(b) of Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 631,

section 1 of which enacted Title 5, Government Organization and

Employees.

-CITE-

12 USC Sec. 1439, 1439-1 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1439, 1439-1. Repealed. Pub. L. 101-73, title VII, Sec. 708,

712, Aug. 9, 1989, 103 Stat. 418, 419

-MISC1-

Section 1439, acts July 22, 1932, ch. 522, Sec. 19, 47 Stat. 737;

May 28, 1935, ch. 150, Sec. 9, 49 Stat. 295; July 3, 1948, ch. 825,

Sec. 2, 62 Stat. 1240, related to appointment, compensation, etc.,

of officers and employees of Board.

Section 1439-1, act July 22, 1932, ch. 522, Sec. 19A, as added

Aug. 10, 1987, Pub. L. 100-86, title V, Sec. 505(d), 101 Stat. 633,

related to apportionment of monies received by Board.

-CITE-

12 USC Sec. 1439a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1439a. Deposits in special fund; availability for all purposes

of Federal Home Loan Bank Board and Federal Home Loan Bank

Administration

-STATUTE-

All moneys and funds heretofore deposited in the Treasury of the

United States under the last sentence of section 1439 (FOOTNOTE 1)

of this title (including unexpended balances of moneys appropriated

therefrom for administrative expenses), and hereafter all moneys

and funds which would, except for this provision, be so depositable

thereunder, shall be deposited with the Treasurer of the United

States in a special deposit account and shall be available,

retroactively as well as prospectively, for expenditure for all

purposes of the Federal Home Loan Bank Board and the Federal Home

Loan Bank Administration, subject to subsections (a) and (b) of

section 712a of title 15.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(June 26, 1943, ch. 145, title I, Sec. 101, 57 Stat. 186; 1947

Reorg. Plan No. 3, eff. July 27, 1947, 12 F.R. 4981, 61 Stat. 954;

Aug. 11, 1955, ch. 783, title I, Sec. 109(a)(3), 69 Stat. 640.)

-REFTEXT-

REFERENCES IN TEXT

Section 1439 of this title, referred to in text, was repealed by

Pub. L. 101-73, title VII, Sec. 708, Aug. 9, 1989, 103 Stat. 418.

-COD-

CODIFICATION

Section was enacted as part of the Independent Offices

Appropriation Act, 1944, and not as part of the Federal Home Loan

Bank Act which comprises this chapter.

-CHANGE-

CHANGE OF NAME

''Home Loan Bank Board'' changed to ''Federal Home Loan Bank

Board'' by act Aug. 11, 1955, ch. 783, Sec. 109(a)(3), which was

classified to section 1437(b) of this title prior to the repeal of

section 1437 by Pub. L. 101-73, title VII, Sec. 703(a), Aug. 9,

1989, 103 Stat. 415. Previously, ''Home Loan Bank Board'' had been

substituted for ''Federal Home Loan Bank Board'' by Reorg. Plan No.

3 of 1947.

-TRANS-

TRANSFER OF FUNCTIONS

Federal Home Loan Bank Board abolished and functions transferred,

see sections 401 to 406 of Pub. L. 101-73, set out as a note under

section 1437 of this title.

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-CITE-

12 USC Sec. 1440 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1440. Examinations and audits

-STATUTE-

The Board shall from time to time, at least annually, require

examinations and reports of condition of all Federal Home Loan

Banks in such form as the Board shall prescribe and shall furnish

periodically statements based upon the reports of the banks to the

Board. For the purposes of this chapter, examiners appointed by the

Board shall be subject to the same requirements, responsibilities,

and penalties as are applicable to examiners under the National

Bank Act (12 U.S.C. 21 et seq.) and the Federal Reserve Act (12

U.S.C. 221 et seq.), and shall have, in the exercise of functions

under this chapter, the same powers and privileges as are vested in

such examiners by law. In addition to such examinations, the

Comptroller General may audit or examine the Board and the Banks,

to determine the extent to which the Board and the Banks are fairly

and effectively fulfilling the purposes of this chapter.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 20, 47 Stat. 738; June 27, 1950, ch.

369, Sec. 10, 64 Stat. 259; Aug. 2, 1954, ch. 649, title VIII, Sec.

802(f), 68 Stat. 643; Pub. L. 101-73, title VII, Sec. 701(b)(1),

(3)(A), 702(b), Aug. 9, 1989, 103 Stat. 412, 415.)

-REFTEXT-

REFERENCES IN TEXT

The National Bank Act, referred to in text, is act June 3, 1864,

ch. 106, 13 Stat. 99, as amended, which is classified principally

to chapter 2 (Sec. 21 et seq.) of this title. For complete

classification of this Act to the Code, see References in Text note

set out under section 38 of this title.

The Federal Reserve Act, referred to in text, is act Dec. 23,

1913, ch. 6, 38 Stat. 251, as amended, which is classified

principally to chapter 3 (Sec. 221 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

-MISC2-

AMENDMENTS

1989 - Pub. L. 101-73, Sec. 702(b), inserted provisions relating

to audit or examination by the Comptroller General.

Pub. L. 101-73, Sec. 701(b)(1), (3)(A), substituted ''Board'' for

''board'' wherever appearing.

1954 - Act Aug. 2, 1954, struck out second sentence relating to

annual report of the board to Congress. See section 1437(b) of this

title.

1950 - Act June 27, 1950, struck out ''twice'' before

''annually''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 246.

-CITE-

12 USC Sec. 1441 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1441. Financing Corporation

-STATUTE-

(a) Establishment

Notwithstanding any other provision of law, the Federal Housing

Finance Board shall charter a corporation to be known as the

Financing Corporation.

(b) Management of Financing Corporation

(1) Directorate

The Financing Corporation shall be under the management of a

directorate composed of 3 members as follows:

(A) The Director of the Office of Finance of the Federal Home

Loan Banks (or the head of any successor to such office).

(B) 2 members selected by the Federal Housing Finance Board

from among the presidents of the Federal Home Loan Banks.

(2) Terms

Each member appointed under paragraph (1)(B) shall be appointed

for a term of 1 year.

(3) Vacancy

If any member leaves the office in which such member was

serving when appointed to the Directorate -

(A) such member's service on the Directorate shall terminate

on the date such member leaves such office; and

(B) the successor to the office of such member shall serve

the remainder of such member's term.

(4) Equal representation of banks

No president of a Federal Home Loan Bank may be appointed to

serve an additional term on the Directorate until such time as

the presidents of each of the other Federal Home Loan Banks have

served as many terms on the Directorate as the president of such

bank (before the appointment of such president to such additional

term).

(5) Chairperson

The Chairperson of the Federal Housing Finance Board shall

select the chairperson of the Directorate from among the 3

members of the Directorate.

(6) Staff

(A) No paid employees

The Financing Corporation shall have no paid employees.

(B) Powers

The Directorate may, with the approval of the Federal Housing

Finance Board, authorize the officers, employees, or agents of

the Federal Home Loan Banks to act for and on behalf of the

Financing Corporation in such manner as may be necessary to

carry out the functions of the Financing Corporation.

(7) Administrative expenses

(A) In general

All administrative expenses of the Financing Corporation

shall be paid by the Federal Home Loan Banks.

(B) Pro rata distribution

The amount each Federal Home Loan Bank shall pay shall be

determined by the Federal Housing Finance Board by multiplying

the total administrative expenses for any period by the

percentage arrived at by dividing -

(i) the aggregate amount the Federal Housing Finance Board

required such bank to invest in the Financing Corporation (as

of the time of such determination) under paragraphs (4) and

(5) of subsection (d) of this section (as computed without

regard to paragraph (3) or (6) of such subsection); by

(ii) the aggregate amount the Federal Housing Finance Board

required all Federal Home Loan Banks to invest (as of the

time of such determination) under such paragraphs.

For purposes of this paragraph, the term ''administrative

expenses'' does not include -

(i) issuance costs (as such term is defined in subsection

(g)(5)(A) of this section);

(ii) any interest on (and any redemption premium with

respect to) any obligation of the Financing Corporation; or

(iii) custodian fees (as such term is defined in subsection

(g)(5)(B) of this section).

(8) Regulation by Federal Housing Finance Board

The Directorate shall be subject to such regulations, orders,

and directions as the Federal Housing Finance Board may

prescribe.

(9) No compensation from Financing Corporation

Members of the Directorate shall receive no pay, allowances, or

benefits from the Financing Corporation by reason of their

service on the Directorate.

The Financing Corporation shall have only the following powers,

subject to the other provisions of this section and such

regulations, orders, and directions as the Federal Housing Finance

Board may prescribe:

(1) To issue nonvoting capital stock to the Federal Home Loan

Banks.

(2) To invest in any security issued by the Federal Savings and

Loan Insurance Corporation under section 1725(b) of this title

prior to August 9, 1989, and thereafter to transfer the proceeds

of any obligation issued by the Financing Corporation to the

FSLIC Resolution Fund.

(3) To issue debentures, bonds, or other obligations and to

borrow, to give security for any amount borrowed, and to pay

interest on (and any redemption premium with respect to) any such

obligation or amount.

(4) To impose assessments in accordance with subsection (f) of

this section.

(5) To adopt, alter, and use a corporate seal.

(6) To have succession until dissolved.

(7) To enter into contracts.

(8) To sue and be sued in its corporate capacity, and to

complain and defend in any action brought by or against the

Financing Corporation in any State or Federal court of competent

jurisdiction.

(9) To exercise such incidental powers not inconsistent with

the provisions of this section as are necessary or appropriate to

carry out the provisions of this section.

(d) Capitalization of Financing Corporation

(1) Purchase of capital stock by Federal Home Loan Banks

(A) In general

Each Federal Home Loan Bank shall invest in nonvoting capital

stock of the Financing Corporation at such times and in such

amounts as the Federal Housing Finance Board may prescribe

under this subsection.

(B) Par value; transferability

Each share of stock issued by the Financing Corporation to a

Federal Home Loan Bank shall have par value in an amount

determined by the Federal Housing Finance Board and shall be

transferable only among the Federal Home Loan Banks in the

manner and to the extent prescribed by the Federal Housing

Finance Board at not less than par value.

(2) Aggregate dollar amount limitation on all investments

The aggregate amount of funds invested by all Federal Home Loan

Banks in nonvoting capital stock of the Financing Corporation

shall not exceed $3,000,000,000.

(3) Maximum investment amount limitation for each Federal Home

Loan Bank

The cumulative amount of funds invested in nonvoting capital

stock of the Financing Corporation by each Federal Home Loan Bank

shall not exceed the aggregate amount of -

(A) the sum of -

(i) the reserves maintained by such bank on December 31,

1985, pursuant to the requirement contained in the first 2

sentences of section 1436 of this title; and

(ii) the undivided profits (as defined in paragraph (7)) of

such bank on such date; and

(B) the sum of -

(i) the amounts added to reserves after December 31, 1985,

pursuant to the requirement contained in the first 2

sentences of section 1436 of this title; and

(ii) the undivided profits of such bank accruing after such

date.

(4) Pro rata distribution of 1st $1,000,000,000 invested in

Financing Corporation by Home Loan Banks

Of the first $1,000,000,000 in the aggregate which the Thrift

Depositor Protection Oversight Board pursuant to section 1441b of

this title or the Federal Housing Finance Board under this

section (as the case may be) may require the Federal Home Loan

Banks collectively to invest in the stock of the Funding

Corporation or invest in the capital stock of the Financing

Corporation, respectively, the amount which each Federal Home

Loan Bank (or any successor to such Bank) shall invest shall be

determined by the Thrift Depositor Protection Oversight Board or

the Federal Housing Finance Board (as the case may be) by

multiplying the aggregate amount of such payment or investment by

all Banks by the percentage appearing in the following table for

each such Bank:

---------------------------------------------------------------------

Bank Percentage

Federal Home Loan Bank of Boston 1.8629

Federal Home Loan Bank of New 9.1006

York

Federal Home Loan Bank of 4.2702

Pittsburgh

Federal Home Loan Bank of Atlanta 14.4007

Federal Home Loan Bank of 8.2653

Cincinnati

Federal Home Loan Bank of 5.2863

Indianapolis

Federal Home Loan Bank of Chicago 9.6886

Federal Home Loan Bank of Des 6.9301

Moines

Federal Home Loan Bank of Dallas 8.8181

Federal Home Loan Bank of Topeka 5.2706

Federal Home Loan Bank of San 19.9644

Francisco

Federal Home Loan Bank of Seattle 6.1422

-------------------------------

(5) Pro rata distribution of amounts required to be invested in

excess of $1,000,000,000

With respect to any amount in excess of the $1,000,000,000

amount referred to in paragraph (4) which the Federal Housing

Finance Board may require the Federal Home Loan Banks to invest

in capital stock of the Financing Corporation under this

subsection, the amount which each Federal Home Loan Bank (or any

successor to such bank) shall invest shall be determined by the

Federal Housing Finance Board by multiplying such excess amount

by the percentage arrived at by dividing -

(A) the sum of the total assets (as of the most recent

December 31) held by all Savings Association Insurance Fund

members which are members of such bank; by

(B) the sum of the total assets (as of such date) held by all

Savings Association Insurance Fund members which are members of

any Federal Home Loan Bank.

(6) Special provisions relating to maximum amount limitations

(A) In general

If the amount any Federal Home Loan Bank is required to

invest in capital stock of the Financing Corporation pursuant

to a determination by the Federal Housing Finance Board under

paragraph (5) (or under subparagraph (B) of this paragraph)

exceeds the maximum investment amount applicable with respect

to such bank under paragraph (3) at the time of such

determination (hereinafter in this paragraph referred to as the

''excess amount'') -

(i) the Federal Housing Finance Board shall require each

remaining Federal Home Loan Bank to invest (in addition to

the amount determined under paragraph (5) for such remaining

bank and subject to the maximum investment amount applicable

with respect to such remaining bank under paragraph (3) at

the time of such determination) in such capital stock on

behalf of the bank in the amount determined under

subparagraph (B);

(ii) the Federal Housing Finance Board shall require the

bank to subsequently purchase the excess amount of capital

stock from the remaining banks in the manner described in

subparagraph (C); and

(iii) the requirements contained in subparagraphs (D) and

(E) relating to the use of net earnings shall apply to such

bank until the bank has purchased all of the excess amount of

capital stock.

(B) Allocation of excess amount among remaining Home Loan Banks

The amount each remaining Federal Home Loan Bank shall be

required to invest under subparagraph (A)(i) is the amount

determined by the Federal Housing Finance Board by multiplying

the excess amount by the percentage arrived at by dividing -

(i) the amount of capital stock of the Financing

Corporation held by such remaining bank at the time of such

determination; by

(ii) the aggregate amount of such stock held by all

remaining banks at such time.

The bank on whose behalf an investment in capital stock is

made under subparagraph (A)(i) shall purchase, annually and at

the issuance price, from each remaining bank an amount of such

stock determined by the Federal Housing Finance Board by

multiplying the amount available for such purchases (at the

time of such determination) by the percentage determined under

subparagraph (B) with respect to such remaining bank until the

aggregate amount of such capital stock has been purchased by

the bank.

(D) Limitation on dividends

The amount of dividends which may be paid for any year by a

bank on whose behalf an investment is made under subparagraph

(A)(i) shall not exceed an amount equal to 1/2 of the net

earnings of the bank for the year.

(E) Transfer to account for purchase of stock required

Of the net earnings for any year of a bank on whose behalf an

investment is made under subparagraph (A)(i), such amount as is

necessary to make the purchases of stock required under

subparagraph (A)(ii) shall be placed in a reserve account

(established in such manner as the Federal Housing Finance

Board shall prescribe by regulations) the balance in which

shall be available only for such purchases.

(7) Undivided profits defined

For purposes of paragraph (3), the term ''undivided profits''

means retained earnings minus the sum of -

(A) that portion required to be added to reserves maintained

pursuant to the first two sentences of section 1436 of this

title; and

(B) the dollar amounts held by the respective Federal Home

Loan Banks in special dividend stabilization reserves on

December 31, 1985, as determined under the following table:

---------------------------------------------------------------------

Bank Dollar amount

Federal Home Loan Bank of Boston $3.2 million

Federal Home Loan Bank of New 7.7 million

York

Federal Home Loan Bank of 5.2 million

Pittsburgh

Federal Home Loan Bank of Atlanta 12.3 million

Federal Home Loan Bank of 5.9 million

Cincinnati

Federal Home Loan Bank of 37.4 million

Indianapolis

Federal Home Loan Bank of Chicago 6.0 million

Federal Home Loan Bank of Des 32.7 million

Moines

Federal Home Loan Bank of Dallas 45.0 million

Federal Home Loan Bank of Topeka 13.7 million

Federal Home Loan Bank of San 21.9 million

Francisco

Federal Home Loan Bank of Seattle 33.6 million

-------------------------------

(e) Obligations of Financing Corporation

(1) Limitation on amount of outstanding obligations

The aggregate amount of obligations of the Financing

Corporation which may be outstanding at any time (as determined

by the Federal Housing Finance Board) shall not exceed the lesser

of -

(A) an amount equal to the greater of -

(i) 5 times the amount of the nonvoting capital stock of

the Financing Corporation which is outstanding at such time;

(ii) the sum of the face amounts (the amount of principal

payable at maturity) of securities described in subsection

(g)(2) of this section which are held at such time in the

segregated account established pursuant to such subsection;

(B) $10,825,000,000.

(2) Termination of borrowing authority

No obligation of the Financing Corporation shall be issued

after December 12, 1991.

(3) Limitation on term of obligations

No obligation of the Financing Corporation may be issued which

matures -

(A) more than 30 years after the date of issue; or

(B) after December 31, 2026.

(4) Investment of United States funds in obligations

Obligations issued under this section by the Financing

Corporation with the approval of the Federal Housing Finance

Board shall be lawful investments, and may be accepted as

security, for all fiduciary, trust, and public funds the

investment or deposit of which shall be under the authority or

control of the United States or any officer of the United States.

(5) Market for obligations

All persons having the power to invest in, sell, underwrite,

purchase for their own accounts, accept as security, or otherwise

deal in obligations of the Federal Home Loan Banks shall also

have the power to do so with respect to obligations of the

Financing Corporation.

(6) No full faith and credit of the United States

Obligations of the Financing Corporation and the interest

payable on such obligations shall not be obligations of, or

guaranteed as to principal or interest by, the Federal Home Loan

Banks, the United States, or the FSLIC Resolution Fund and the

obligations shall so plainly state.

(7) Tax exempt status

(A) In general

Except as provided in subparagraph (B), obligations of the

Financing Corporation shall be exempt from tax both as to

principal and interest to the same extent as any obligation of

a Federal Home Loan Bank is exempt from tax under section 1433

of this title.

(B) Exception

The Financing Corporation, like the Federal Home Loan Banks,

shall be treated as an agency of the United States for purposes

of the first sentence of section 3124(b) of title 31 (relating

to determination of tax status of interest on obligations).

(8) Obligations are exempt securities

Notwithstanding paragraph (7), (FOOTNOTE 1) obligations of the

Financing Corporation shall be deemed to be exempt securities

(within the meaning of laws administered by the Securities and

Exchange Commission) to the same extent as securities which are

direct obligations of the United States or are guaranteed as to

principal or interest by the United States.

(FOOTNOTE 1) So in original. Probably should refer to paragraph

(6) in view of the renumbering of paragraph (7) as (6) by Pub. L.

101-73.

(9) Minority participation in public offerings

The Chairperson of the Federal Housing Finance Board and the

Directorate shall ensure that minority owned or controlled

commercial banks, investment banking firms, underwriters, and

bond counsels throughout the United States have an opportunity to

participate to a significant degree in any public offering of

obligations issued under this section.

(f) Sources of funds for interest payments; Financing Corporation

assessment authority

The Financing Corporation shall obtain funds for anticipated

interest payments, issuance costs, and custodial fees on

obligations issued hereunder from the following sources:

(1) Preenactment assessments

The Financing Corporation assessments which were assessed on

insured institutions pursuant to this section as in effect prior

to August 9, 1989.

(2) New assessment authority

In addition to the amounts obtained pursuant to paragraph (1),

the Financing Corporation, with the approval of the Board of

Directors of the Federal Deposit Insurance Corporation, shall

assess against each insured depository institution an assessment

(in the same manner as assessments are assessed against such

institutions by the Federal Deposit Insurance Corporation under

section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817)),

except that -

(A) the assessments imposed on insured depository

institutions with respect to any BIF-assessable deposit shall

be assessed at a rate equal to 1/5 of the rate of the

assessments imposed on insured depository institutions with

respect to any SAIF-assessable deposit; and

(B) no limitation under clause (i) or (iii) of section

7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.

1817(b)(2)(A)) shall apply for purposes of this paragraph.

(3) Receivership proceeds

To the extent the amounts available pursuant to paragraphs (1)

and (2) are insufficient to cover the amount of interest

payments, issuance costs, and custodial fees, and if the funds

are not required by the Resolution Funding Corporation to provide

funds for the Funding Corporation Principal Fund under section

1441b of this title, the Federal Deposit Insurance Corporation

shall transfer to the Financing Corporation, from the liquidating

dividends and payments made on claims received by the FSLIC

Resolution Fund (established under section 11A of the Federal

Deposit Insurance Act (12 U.S.C. 1821a)) from receiverships, the

remaining amount of funds necessary for the Financing Corporation

to make interest payments.

(g) Use and disposition of assets of Financing Corporation not

invested in FSLIC

(1) In general

Subject to such regulations, restrictions, and limitations as

may be prescribed by the Federal Housing Finance Board, assets of

the Financing Corporation, which are not invested in capital

certificates or capital stock issued by the Federal Savings and

Loan Insurance Corporation under section 1725(b)(1)(A) of this

title before August 9, 1989, and after August 9, 1989, in capital

certificates issued by the FSLIC Resolution Fund, shall be

invested in -

(A) direct obligations of the United States;

(B) obligations, participations, or other instruments of, or

issued by, the Federal National Mortgage Association or the

Government National Mortgage Association;

or which have been disposed of by, the Federal Home Loan

Mortgage Corporation under section 1454 or 1455 of this title;

(D) any other security in which it is lawful for fiduciary

and trust funds to be invested under the laws of any State.

(2) Segregated account for zero coupon instruments held to assure

payment of principal

The Financing Corporation shall invest in, and hold in a

segregated account, noninterest bearing instruments -

(A) which are securities described in paragraph (1); and

(B) the total of the face amounts (the amount of principal

payable at maturity) of which is approximately equal to the

aggregate amount of principal on the obligations of the

Financing Corporation,

to assure the repayment of principal on obligations of the

Financing Corporation. For purposes of the foregoing, the

Financing Corporation shall be deemed to hold noninterest bearing

instruments that it lends temporarily to primary United States

Treasury dealers in order to enhance market liquidity and

facilitate deliveries, provided that United States Treasury

securities of equal or greater value have been delivered as

collateral.

(3) Dollar amount limitation on investment in zero coupon

instruments for segregated account

The aggregate amount invested by the Financing Corporation

under paragraph (2) shall not exceed $2,200,000,000 (as

determined on the basis of the purchase price).

(4) Exception for payment of issuance costs, interest, and

custodian fees

Notwithstanding the requirements of paragraph (1), the assets

of the Financing Corporation referred to in paragraph (1) which

are not invested under paragraph (2) may be used to pay -

(A) issuance costs;

(B) any interest on (and any redemption premium with respect

to) any obligation of the Financing Corporation; and

(5) Definitions

For purposes of this subsection -

(A) Issuance costs

The term ''issuance costs'' -

(i) means issuance fees and commissions incurred by the

Financing Corporation in connection with the issuance or

servicing of any obligation of the Financing Corporation; and

(ii) includes legal and accounting expenses, trustee and

fiscal and paying agent charges, costs incurred in connection

with preparing and printing offering materials, and

advertising expenses, to the extent that any such cost or

expense is incurred by the Financing Corporation in

connection with issuing any obligation.

(B) Custodian fees

The term ''custodian fee'' means -

(i) any fee incurred by the Financing Corporation in

connection with the transfer of any security to, or the

maintenance of any security in, the segregated account

established under paragraph (2); and

(ii) any other expense incurred by the Financing

Corporation in connection with the establishment or

maintenance of such account.

(h) Miscellaneous provisions relating to Financing Corporation

(1) Treatment for certain purposes

Except as provided in subsection (e)(8)(B) of this section, the

Financing Corporation shall be treated as a Federal Home Loan

Bank for purposes of sections 1433 and 1443 of this title.

(2) Federal Reserve banks as depositaries and fiscal agents

The Federal Reserve banks are authorized to act as depositaries

for or fiscal agents or custodians of the Financing Corporation.

(3) Applicability of certain provisions relating to Government

corporation

Notwithstanding the fact that no Government funds may be

invested in the Financing Corporation, the Financing Corporation

shall be treated, for purposes of sections 9105, (FOOTNOTE 2)

9107, and 9108 of title 31, as a mixed-ownership Government

corporation which has capital of the Government.

(FOOTNOTE 2) See References in Text note below.

(i) Termination of Financing Corporation

(1) In general

The Financing Corporation shall be dissolved, as soon as

practicable, after the earlier of -

(A) the maturity and full payment of all obligations issued

by the Financing Corporation pursuant to this section; or

(B) December 31, 2026.

(2) Federal Housing Finance Board authority to conclude the

affairs of Financing Corporation

Effective on the date of the dissolution of the Financing

Corporation under paragraph (1), the Federal Housing Finance

Board may exercise, on behalf of the Financing Corporation, any

power of the Financing Corporation which the Federal Housing

Finance Board determines to be necessary to settle and conclude

the affairs of the Financing Corporation.

(j) Regulations

The Federal Housing Finance Board may prescribe such regulations

as may be necessary to carry out the provisions of this section,

including regulations defining terms used in this section.

(k) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Directorate

The term ''Directorate'' means the directorate established in

the manner provided in subsection (b)(1) of this section to

manage the Financing Corporation.

(2) Net earnings

The term ''net earnings'' means net earnings without reduction

for any chargeoffs or expenses incurred by a Bank in connection

with the purchase of capital stock of the Financing Corporation

or the purchase of stock of the Funding Corporation required by

the Thrift Depositor Protection Oversight Board under subsections

(e) and (f) of section 1441b of this title.

(3) Insured depository institution

The term ''insured depository institution'' has the same

meaning as in section 3 of the Federal Deposit Insurance Act (12

U.S.C. 1813) (FOOTNOTE 3)

(FOOTNOTE 3) So in original. Probably should be followed by a

period.

(4) Deposit terms

(A) BIF-assessable deposits

The term ''BIF-assessable deposit'' means a deposit that is

subject to assessment for purposes of the Bank Insurance Fund

under the Federal Deposit Insurance Act (12 U.S.C. 1811 et

seq.) (including a deposit that is treated as a deposit insured

by the Bank Insurance Fund under section 5(d)(3) of the Federal

Deposit Insurance Act (12 U.S.C. 1815(d)(3))).

(B) SAIF-assessable deposit

The term ''SAIF-assessable deposit'' has the meaning given to

such term in section 2710 of the Deposit Insurance Funds Act of

1996.

-SOURCE-

(July 22, 1932, ch. 522, Sec. 21, as added Pub. L. 100-86, title

III, Sec. 302, Aug. 10, 1987, 101 Stat. 585; amended Pub. L.

101-73, title V, Sec. 512, title VII, Sec. 701(b)(2), 713, Aug. 9,

1989, 103 Stat. 406, 412, 419; Pub. L. 102-233, title I, Sec. 104,

title III, Sec. 302(b), Dec. 12, 1991, 105 Stat. 1762, 1767; Pub.

L. 102-550, title XVI, Sec. 1611(c), Oct. 28, 1992, 106 Stat. 4090;

Pub. L. 104-208, div. A, title II, Sec. 2703(a), Sept. 30, 1996,

110 Stat. 3009-485.)

-REFTEXT-

REFERENCES IN TEXT

Section 1725 of this title, referred to in subsecs. (c)(2),

(e)(2)(A), and (g)(1), was repealed by Pub. L. 101-73, title IV,

Sec. 407, Aug. 9, 1989, 103 Stat. 363.

Section 9105 of title 31, referred to in subsec. (h)(3), was

amended generally by Pub. L. 101-576, title III, Sec. 305, Nov. 15,

1990, 104 Stat. 2853, and, as so amended, no longer contains

provisions relating to mixed-ownership Government corporations

having capital of the Government.

The Federal Deposit Insurance Act, referred to in subsec.

(k)(4)(A), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as

amended, which is classified generally to chapter 16 (Sec. 1811 et

seq.) of this title. For complete classification of this Act to

the Code, see Short Title note set out under section 1811 of this

title and Tables.

Section 2710 of the Deposit Insurance Funds Act of 1996, referred

to in subsec. (k)(4)(B), is section 2710 of div. A of Pub. L.

104-208, which is set out as a note under section 1821 of this

title.

-MISC2-

PRIOR PROVISIONS

A prior section 1441, act July 22, 1932, ch. 522, Sec. 21, 47

Stat. 738, related to unlawful acts and penalties, prior to repeal

by act June 25, 1948, ch. 645, Sec. 21, 62 Stat. 862, eff. Sept.

1, 1948. See sections 433, 493, 657, 659, 660, 709, 1006, 1014, and

2117 of Title 18, Crimes and Criminal Procedure.

AMENDMENTS

1996 - Subsec. (f)(2). Pub. L. 104-208, Sec. 2703(a)(1)(A), in

introductory provisions, substituted ''In addition to the amounts

obtained pursuant to paragraph (1),'' for ''To the extent the

amounts available pursuant to paragraph (1) are insufficient to

cover the amount of interest payments, issuance costs, and

custodial fees,'', ''insured depository institution'' for ''Savings

Association Insurance Fund member'', and ''against such

institutions'' for ''against such members''.

Subsec. (f)(2)(A) to (C). Pub. L. 104-208, Sec. 2703(a)(1)(B),

added subpars. (A) and (B) and struck out former subpars. (A) to

''(A) the sum of -

''(i) the amount assessed under this paragraph; and

''(ii) the amount assessed by the Funding Corporation under

section 1441b of this title;

shall not exceed the amount authorized to be assessed against

Savings Association Insurance Fund members pursuant to section 1817

of this title;

''(B) the Financing Corporation shall have first priority to make

the assessment; and

''(C) the amount of the applicable assessment determined under

such section 1817 of this title shall be reduced by the sum

described in subparagraph (A) of this paragraph.''

Subsec. (k). Pub. L. 104-208, Sec. 2703(a)(2)(A), substituted

''section, the following definitions shall apply:'' for ''section -

'' in introductory provisions.

Subsec. (k)(1). Pub. L. 104-208, Sec. 2703(a)(2)(B), (C),

redesignated par. (2) as (1) and struck out heading and text of

former par. (1). Text read as follows: ''The term 'Savings

Association Insurance Fund member' means a savings association

which is a Savings Association Insurance Fund member as defined by

section 7(l) of the Federal Deposit Insurance Act.''

Subsec. (k)(2) to (4). Pub. L. 104-208, Sec. 2703(a)(2)(C), (D),

added pars. (3) and (4) and redesignated former pars. (2) and (3)

as (1) and (2), respectively.

1992 - Subsec. (e)(2). Pub. L. 102-550 made technical amendment

to reference to December 12, 1991, to correct reference to

corresponding provisions of original act.

1991 - Subsec. (d)(4). Pub. L. 102-233, Sec. 302(b), substituted

''Thrift Depositor Protection Oversight Board'' for ''Oversight

Board'' in two places.

Subsec. (e)(2). Pub. L. 102-233, Sec. 104, amended par. (2)

generally, substituting provisions setting forth termination date

of Financing Corporation borrowing authority for provisions

relating to investment of proceeds of obligations of such

Corporation.

Subsec. (k)(3). Pub. L. 102-233, Sec. 302(b), substituted

''Thrift Depositor Protection Oversight Board'' for ''Oversight

Board''.

1989 - Subsec. (a). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board''.

Subsec. (b)(1)(B). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Federal Home Loan Bank

Board''.

Subsec. (b)(5). Pub. L. 101-73, Sec. 701(b)(2), substituted

''Chairperson'' for ''Chairman''.

Pub. L. 101-73, Sec. 512(2), substituted ''Federal Housing

Finance Board'' for ''Federal Home Loan Bank Board''.

Subsecs. (b)(6)(B), (7)(B), (8), (c). Pub. L. 101-73, Sec.

512(2), substituted ''Federal Housing Finance Board'' for ''Board''

wherever appearing.

Subsec. (c)(2). Pub. L. 101-73, Sec. 512(3), inserted ''prior to

August 9, 1989, and thereafter to transfer the proceeds of any

obligation issued by the Financing Corporation to the FSLIC

Resolution Fund''.

Subsec. (c)(9). Pub. L. 101-73, Sec. 512(4), struck out ''or

section 1725(b) of this title'' after ''with the provisions of this

section''.

Subsec. (d)(1). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board'' wherever appearing.

Subsec. (d)(4). Pub. L. 101-73, Sec. 512(5), amended generally

the portion of par. (4) appearing before the table. Prior to

amendment, such portion read as follows: ''With respect to the

first $1,000,000,000 which the Board may require the Federal Home

Loan Banks to invest in capital stock of the Financing Corporation

under this subsection, the amount which each Federal Home Loan Bank

(or any successor to such bank) shall invest shall be determined by

the Board by applying to the total amount of such investment by all

such banks the percentage appearing in the following table for each

such bank:''.

Subsec. (d)(5). Pub. L. 101-73, Sec. 512(6), substituted ''the

$1,000,000,000 amount referred to in paragraph (4) which the

Federal Housing Finance Board'' for ''$1,000,000,000 which the

Board''.

Pub. L. 101-73, Sec. 512(2), substituted ''by the Federal Housing

Finance Board'' for ''by the Board''.

Subsec. (d)(5)(A), (B). Pub. L. 101-73, Sec. 512(1), which

directed the amendment of this section by substituting ''Savings

Association Insurance Fund member'' for ''insured institution''

wherever appearing, was executed by substituting ''Savings

Association Insurance Fund members'' for ''insured institutions'',

as the probable intent of Congress.

Subsec. (d)(6)(A). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board'' in introductory

provisions and in cls. (i) and (ii).

Subsec. (d)(6)(A)(iii). Pub. L. 101-73, Sec. 512(7), struck out

''available for dividends'' after ''use of net earnings''.

Subsec. (d)(6)(B), (C). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board''.

Subsec. (d)(6)(D). Pub. L. 101-73, Sec. 512(8), struck out

''available for dividends'' after ''net earnings''.

Subsec. (d)(6)(E). Pub. L. 101-73, Sec. 512(9), struck out

''available for dividends'' after ''Of the net earnings''.

Pub. L. 101-73, Sec. 512(2), substituted ''Federal Housing

Finance Board'' for ''Board''.

Subsec. (d)(6)(F). Pub. L. 101-73, Sec. 512(10), struck out

subpar. (F) which defined ''net earnings available for dividends''.

Subsec. (e)(1). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board''.

Subsec. (e)(2). Pub. L. 101-73, Sec. 512(12)(A), redesignated

par. (3) as (2) and struck out former par. (2) which set an annual

limit on net new borrowing by the Financing Corporation.

Pub. L. 101-73, Sec. 512(11), which directed amendment of par.

(2)(A), was executed, as the probable intent of Congress, to the

introductory text of par. (2), to par. (2)(A), and to par. (2)(B),

as follows: striking out ''used to'' after ''issued by the

Financing Corporation'' in the introductory text, inserting ''used

to'' before ''purchase'' and inserting ''prior to August 9, 1989,

and thereafter transferred to the FSLIC Resolution Fund'' before

''; or'' in subpar. (A), and by inserting ''used to'' before

''refund'' in subpar. (B).

Pub. L. 101-73, Sec. 512(2), substituted ''Federal Housing

Finance Board'' for ''Board''.

Subsec. (e)(3). Pub. L. 101-73, Sec. 512(12)(A), redesignated

par. (4) as (3). Former par. (3) redesignated (2).

Subsec. (e)(4). Pub. L. 101-73, Sec. 512(2), (12)(A),

redesignated par. (5) as (4) and substituted ''Federal Housing

Finance Board'' for ''Board''. Former par. (4) redesignated (3).

Subsec. (e)(5). Pub. L. 101-73, Sec. 512(12)(A), redesignated

par. (6) as (5). Former par. (5) redesignated (4).

Subsec. (e)(6). Pub. L. 101-73, Sec. 512(12), redesignated par.

(7) as (6) and substituted ''FSLIC Resolution Fund'' for ''Federal

Savings and Loan Insurance Corporation''. Former par. (6)

redesignated (5).

Subsec. (e)(7), (8). Pub. L. 101-73, Sec. 512(12)(A),

redesignated pars. (8) and (9) as (7) and (8), respectively.

Former par. (7) redesignated (6).

Subsec. (e)(9), (10). Pub. L. 101-73, Sec. 512(2), (12)(A),

701(b)(2), redesignated par. (10) as (9) and substituted

''Chairperson'' for ''Chairman'' and ''Federal Housing Finance

Board'' for ''Board''. Former par. (9) redesignated (8).

Subsec. (f). Pub. L. 101-73, Sec. 512(13), amended subsec. (f)

generally, substituting provisions enumerating various sources from

which Financing Corporation shall obtain funds for anticipated

interest payments, issuance costs, and custodial fees on

obligations issued from preenactment assessments, new assessment

authority, and receivership proceeds, for former provisions which

had outlined assessment authority of Financing Corporation, setting

up supplementary assessment authority, setting limits on total

amount assessed, and providing for termination assessments.

Subsec. (g)(1). Pub. L. 101-73, Sec. 512(14), inserted reference

to before August 9, 1989, and after August 9, 1989, in capital

certificates issued by the FSLIC Resolution Fund.

Pub. L. 101-73, Sec. 512(2), substituted ''Federal Housing

Finance Board'' for ''Board''.

Subsec. (g)(2). Pub. L. 101-73, Sec. 512(15), inserted at end

''For purposes of the foregoing, the Financing Corporation shall be

deemed to hold noninterest bearing instruments that it lends

temporarily to primary United States Treasury dealers in order to

enhance market liquidity and facilitate deliveries, provided that

United States Treasury securities of equal or greater value have

been delivered as collateral.''

Subsec. (i). Pub. L. 101-73, Sec. 713, redesignated subsec. (j)

as (i) and struck out former subsec. (i) which related to Federal

Savings and Loan Insurance Corporation Industry Advisory Committee.

Subsec. (i)(1)(A). Pub. L. 101-73, Sec. 512(16), added subpar.

(A) and struck out former subpar. (A) which read as follows: ''the

date by which all stock purchased by the Financing Corporation in

the Federal Savings and Loan Insurance Corporation has been

retired; or''.

Subsec. (i)(2). Pub. L. 101-73, Sec. 512(2), substituted

''Federal Housing Finance Board'' for ''Board'' wherever appearing.

Subsec. (j). Pub. L. 101-73, Sec. 713, redesignated subsec. (k)

as (j). Former subsec. (j) redesignated (i).

Pub. L. 101-73, Sec. 512(2), substituted ''Federal Housing

Finance Board'' for ''Board''.

Subsec. (k). Pub. L. 101-73, Sec. 713, redesignated subsec. (l)

as (k). Former subsec. (k) redesignated (j).

Subsec. (k)(1). Pub. L. 101-73, Sec. 512(17)(A), substituted

definition of ''Savings Association Insurance Fund member'' for

definition of ''insured institution''.

Subsec. (k)(2). Pub. L. 101-73, Sec. 512(17)(B), redesignated

par. (3) as (2) and struck out former par. (2) which defined

''insured member''.

Subsec. (k)(3), (4). Pub. L. 101-73, Sec. 512(10), (17)(B), added

par. (4) and redesignated pars. (3) and (4) as (2) and (3),

respectively.

Subsec. (l). Pub. L. 101-73, Sec. 713, redesignated subsec. (l)

as (k).

EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENT

Section 2703(c) of Pub. L. 104-208 provided that:

''(1) In general. - Subsections (a) (amending this section) and

and the amendments made by such subsections shall apply with

respect to semiannual periods which begin after December 31, 1996.

''(2) Termination of certain assessment rates. - Subparagraph (A)

of section 21(f)(2) of the Federal Home Loan Bank Act (subsec.

(f)(2) of this section) (as amended by subsection (a)) shall not

apply after the earlier of -

''(A) December 31, 1999; or

''(B) the date as of which the last savings association ceases

to exist.''

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1618 of Pub. L. 102-550 provided that: ''Except as

otherwise provided by a specific provision of this subtitle

(subtitle B (Sec. 1611-1618) of title XVI of Pub. L. 102-550,

amending this section, sections 1441a, 1441b, 1821, 3345, and 3348

of this title and provisions set out as a note under section 1441a

of this title), the amendments made by this subtitle to the

Resolution Trust Corporation Refinancing, Restructuring, and

Improvement Act of 1991 (Pub. L. 102-233; see Short Title of 1991

Amendment note set out under section 1421 of this title) and the

Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) shall take

effect as if such amendments had been included in the Resolution

Trust Corporation Refinancing, Restructuring, and Improvement Act

of 1991 (Pub. L. 102-233) as of the date of the enactment of such

Act (Dec. 12, 1991).''

EFFECTIVE DATE OF 1991 AMENDMENT

Section 318 of Pub. L. 102-233 provided that: ''The effective

date of the Resolution Trust Corporation Thrift Depositor

Protection Reform Act of 1991 (title III of Pub. L. 102-233,

amending this section, sections 1441a, 1441b, 1786, 1818, 1821,

1833b, and 1833e of this title, sections 5313 and 5314 of Title 5,

Government Organization and Employees, and section 11 of the

Inspector General Act of 1978, Pub. L. 95-452, set out in the

Appendix to Title 5, enacting provisions set out as notes under

section 1441a of this title, and amending provisions set out as

notes under sections 1437 and 1441a of this title) shall be

February 1, 1992.''

-TRANS-

TRANSFER OF FUNCTIONS

Federal Savings and Loan Insurance Corporation abolished and

functions transferred, see sections 401 to 406 of Pub. L. 101-73,

set out as a note under section 1437 of this title.

ABOLITION OF THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD

Thrift Depositor Protection Oversight Board abolished, see

section 14(a)-(d) of Pub. L. 105-216, set out as a note under

section 1441a of this title.

-MISC5-

PROHIBITION ON DEPOSIT SHIFTING

Section 2703(d) of Pub. L. 104-208 provided that:

''(1) In general. - Effective as of the date of the enactment of

this Act (Sept. 30, 1996) and ending on the date provided in

subsection (c)(2) of this section (set out as a note above), the

Comptroller of the Currency, the Board of Directors of the Federal

Deposit Insurance Corporation, the Board of Governors of the

Federal Reserve System, and the Director of the Office of Thrift

Supervision shall take appropriate actions, including enforcement

actions, denial of applications, or imposition of entrance and exit

fees as if such transactions qualified as conversion transactions

pursuant to section 5(d) of the Federal Deposit Insurance Act (12

U.S.C. 1815(d)), to prevent insured depository institutions and

depository institution holding companies from facilitating or

encouraging the shifting of deposits from SAIF-assessable deposits

to BIF-assessable deposits (as defined in section 21(k) of the

Federal Home Loan Bank Act (12 U.S.C. 1441(k))) for the purpose of

evading the assessments imposed on insured depository institutions

with respect to SAIF-assessable deposits under section 7(b) of the

Federal Deposit Insurance Act (12 U.S.C. 1817(b)) and section

21(f)(2) of the Federal Home Loan Bank Act (12 U.S.C. 1441(f)(2)).

''(2) Regulations. - The Board of Directors of the Federal

Deposit Insurance Corporation may issue regulations, including

regulations defining terms used in paragraph (1), to prevent the

shifting of deposits described in such paragraph.

''(3) Rule of construction. - No provision of this subsection

shall be construed as prohibiting conduct or activity of any

insured depository institution which -

''(A) is undertaken in the ordinary course of business of such

depository institution; and

''(B) is not directed towards the depositors of an insured

depository institution affiliate (as defined in section 2(k) of

the Bank Holding Company Act of 1956 (12 U.S.C. 1841(k))) of such

depository institution.''

STATE COOPERATIVE BANKS DEEMED INSURED INSTITUTIONS UNDER

SUBSECTION (F)(4)(F)

Pub. L. 100-202, Sec. 101(f) (title III, Sec. 301), Dec. 22,

1987, 101 Stat. 1329-187, 1329-211, provided that any cooperative

bank established under the law of any State which was directed by

the State banking authority to obtain Federal deposit insurance

between Jan. 1, 1985, and Jan. 1, 1987, would be deemed to be an

insured institution described in 12 U.S.C. 1441(f)(4)(F).

SUNSET AND SAVINGS PROVISION

Section 416 of Pub. L. 100-86 provided that:

''(a) In General. - The following provisions shall cease to be

effective on the date that a notice is published in the Federal

''(1) Paragraphs (2), (3), and (5) of -

''(A) section 9(a) of the Home Owners' Loan Act of 1933 (12

U.S.C. 1467(a)(2), (3), (5)); and

''(B) section 415(a) of the National Housing Act (12 U.S.C.

1730h(a)(2), (3), (5)),

(as added by subsections (a) and (b), respectively, of section

402 of this title).

''(2) Section 10 of the Home Owners' Loan Act of 1933 (12

U.S.C. 1467a) and section 416 of the National Housing Act (12

U.S.C. 1730i) (as added by subsections (a) and (b), respectively,

of section 404 of this title).

''(3) Paragraph (6) of section 406(f) of the National Housing

Act (12 U.S.C. 1729(f)(6)) (as added by section 405 of this

title).

''(4) Section 22A of the Federal Home Loan Bank Act (12 U.S.C.

1442a) (as added by section 407(d) of this title).

''(5) Section 411 of this title (12 U.S.C. 1437 note).

''(b) Notice of Completion of Net New Borrowing by Financing

Corporation. - When the Financing Corporation established pursuant

to section 21 of the Federal Home Loan Bank Act (12 U.S.C. 1441)

has completed all net new borrowing under such section, the

Financing Corporation shall publish a notice of such fact in the

Federal Register. (Notice that the Financing Corporation had

completed all net new borrowings and would issue no additional

obligations after Dec. 12, 1991, was published Mar. 30, 1992, 57

F.R. 10763.)

''(c) Savings Provision. - The termination by subsection (a) of

the effectiveness of any provision described in such subsection

shall not be construed to affect or limit any authority of the

Federal Home Loan Bank Board or the Federal Savings and Loan

Insurance Corporation to prescribe any regulation or engage in any

activity with respect to any association or insured institution

under any other provision of law.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1430, 1436, 1441b, 1821a

of this title.

-CITE-

12 USC Sec. 1441a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 11 - FEDERAL HOME LOAN BANKS

-HEAD-

Sec. 1441a. Thrift Depositor Protection Oversight Board and

Resolution Trust Corporation

-STATUTE-

(a) Thrift Depositor Protection Oversight Board established

(1) In general

There is hereby established the Thrift Depositor Protection

Oversight Board as an instrumentality of the United States with

the powers and authorities herein provided.

(2) Status

The Thrift Depositor Protection Oversight Board shall oversee

and monitor the operations of the Resolution Trust Corporation

(hereinafter referred to in this section as the ''Corporation'')

and shall be accountable for the duties assigned to the Thrift

Depositor Protection Oversight Board by this chapter. The Thrift

Depositor Protection Oversight Board shall be an ''agency'' of

the United States for purposes of subchapter II of chapter 5 and

chapter 7 of title 5.

(3) Membership

(A) In general

The Thrift Depositor Protection Oversight Board shall consist

of 7 members -

(i) the Secretary of the Treasury;

(ii) the Chairman of the Board of Governors of the Federal

Reserve System;

(iii) the Director of the Office of Thrift Supervision;

(iv) the Chairperson of the Board of Directors of the

Federal Deposit Insurance Corporation;

(v) the chief executive officer of the Corporation; and

(vi) two independent members appointed by the President,

with the advice and consent of the Senate. Such nominations

shall be referred to the Committee on Banking, Housing, and

Urban Affairs of the Senate.

(B) Political affiliation

The independent members shall not be members of the same

political party. No independent member of the Thrift Depositor

Protection Oversight Board shall hold any other appointed

office during his or her term as a member.

The Chairperson of the Thrift Depositor Protection Oversight

Board shall be the Secretary of the Treasury.

(D) Term of office

The term of each member (other than the independent members)

of the Thrift Depositor Protection Oversight Board shall expire

when such member has fulfilled all of his or her

responsibilities under this section and section 1441b of this

title. The term of each independent member shall be 3 years.

(E) Quorum required

A quorum shall consist of 4 members of the Thrift Depositor

Protection Oversight Board and all decisions of the Board shall

require an affirmative vote of at least a majority of the

members voting.

(4) Compensation and expenses

(A) Expenses

Members of the Thrift Depositor Protection Oversight Board

shall receive allowances in accordance with subchapter I of

chapter 57 of title 5 for necessary expenses of travel,

lodging, and subsistence incurred in attending meetings and

other activities of the Thrift Depositor Protection Oversight

Board, as set forth in the bylaws issued by the Thrift

Depositor Protection Oversight Board.

(B) No additional compensation for United States officers or

employees

Members of the Thrift Depositor Protection Oversight Board

(other than independent members) shall receive no additional

pay by reason of service on such Board.

The independent members of the Thrift Depositor Protection

Oversight Board shall be paid at a rate equal to the daily

equivalent of the rate of basic pay for level II of the

Executive Schedule for each day (including travel time) during

which such member is engaged in the actual performance of

duties of the Thrift Depositor Protection Oversight Board.

(5) Powers

The Thrift Depositor Protection Oversight Board shall be a body

corporate that shall have the power to -

(A) adopt, alter, and use a corporate seal;

(B) provide for a principal or executive officer and such

other officers and employees as may be necessary to perform the

functions of the Thrift Depositor Protection Oversight Board,

define their duties, and require surety bonds or make other

provisions against losses occasioned by acts of such persons;

employees for any position established by the Thrift Depositor

Protection Oversight Board;

(D) set and adjust rates of basic pay for employees of the

Thrift Depositor Protection Oversight Board without regard to

the provisions of chapter 51 or subchapter III of chapter 53 of

title 5;

(E) provide additional compensation and benefits to employees

of the Thrift Depositor Protection Oversight Board if the same

type of compensation or benefits are then being provided by any

other Federal bank regulatory agency or, if not then being

provided, could be provided by such an agency under applicable

provisions of law, rule, or regulation; in setting and

adjusting the total amount of compensation and benefits for

employees of the Thrift Depositor Protection Oversight Board,

the Thrift Depositor Protection Oversight Board shall consult

with and seek to maintain comparability with the other Federal

bank regulatory agencies, except that the Thrift Depositor

Protection Oversight Board shall not in any event exceed the

compensation and benefits provided by the Federal Deposit

Insurance Corporation with respect to any comparable position;

(F) with the consent of any executive agency, department, or

independent agency utilize the information, services, staff,

and facilities of such department or agency, on a reimbursable

(or other) basis, in carrying out this section;

(G) prescribe bylaws that are consistent with law to provide

for the manner in which -

(i) its officers and employees are selected, and

(ii) its general operations are to be conducted;

(H) enter into contracts and modify or consent to the

modification of any contract or agreement;

(I) indemnify, from funds made available to it by the

Corporation, the members, officers, and employees of the Thrift

Depositor Protection Oversight Board on such terms as the

Thrift Depositor Protection Oversight Board deems proper

against any liability under any civil suit pursuant to any

statute or pursuant to common law with respect to any claim

arising out of or resulting from any act or omission by such

person within the scope of such person's employment in

connection with any transaction entered into involving the

disposition of assets (or any interests in any assets or any

obligations backed by any assets) by the Corporation, and the

indemnification authorized by this provision shall be in

addition to and not in lieu of any immunities or other

protections that may be available to such person under

applicable law, and this provision does not affect any such

immunities or other protections;

(J) sue and be sued in courts of competent jurisdiction; and

(K) exercise any and all powers established under this

section and such incidental powers as are necessary to carry

out its powers, duties, and functions under this chapter.

(6) Thrift Depositor Protection Oversight Board duties and

authorities

The Thrift Depositor Protection Oversight Board shall have the

following duties and authorities with respect to the Corporation:

(A) To review overall strategies, policies, and goals

established by the Corporation for its activities, which shall

include such items as the Thrift Depositor Protection Oversight

Board deems likely to have a material effect upon the financial

condition of the Corporation, the results of its operations, or

its cash flows, and such items as the Thrift Depositor

Protection Oversight Board deems to involve substantial issues

of public policy. After consultation with the Corporation, the

Thrift Depositor Protection Oversight Board may require the

modification of any such overall strategies, policies, and

goals and their implementation. Overall strategies, policies,

and goals shall include such items as -

(i) overall strategies, policies, and goals for case

resolutions, the management and disposition of assets, the

use of private contractors;

(ii) the use of notes, guarantees, or other obligations by

the Corporation;

(iii) financial goals, plans, and budgets; and

(iv) restructuring agreements described in subsection

(b)(10)(B) of this section.

(B) To approve prior to implementation financial plans,

budgets, and periodic financing requests developed by the

Corporation.

procedures, guidelines, and statements that may be adopted or

announced by the Corporation. The provisions of this

subparagraph shall not apply to internal administrative

policies and procedures (including such matters as personnel

practices, divisions and organization of staffing, delegations

of authority, and practices respecting day-to-day

administration of the Corporation's affairs) and determinations

or actions described in paragraph (8) (FOOTNOTE 1)

(FOOTNOTE 1) So in original. Probably should be followed by a

period.

(D) To review the overall performance of the Corporation on a

periodic basis, including its work, management activities, and

internal controls, and the performance of the Corporation

relative to approved budget plans.

(E) To require from the Corporation any reports, documents,

and records it deems necessary to carry out its oversight

responsibilities.

(F) To establish a national advisory board and regional

advisory boards.

(G) To authorize the use of proceeds from any funds provided

by the Treasury to the Corporation and from any financing by

the Resolution Funding Corporation established pursuant to

section 1441b of this title consistent with the approved budget

and financial plans of the Corporation and to oversee the

collection of funds by the Resolution Funding Corporation.

(H) To evaluate audits by the Inspector General and other

congressionally required audits.

(I) To have general oversight over the Resolution Funding

Corporation as provided under section 1441b of this title.

(J) To authorize, as appropriate, the Corporation's sale of

capital certificates to the Resolution Funding Corporation.

(K) To establish the rate of basic pay, benefits, and other

compensation for the chief executive officer of the

Corporation.

(7) Transition policies

Until such time as the Thrift Depositor Protection Oversight

Board and the Corporation (consistent with paragraph (6) and

subsection (b)(11) of this section) adopt strategies, policies,

goals, regulations, rules, operating principles, procedures, or

guidelines, the Corporation may carry out its duties in

accordance with the strategies, policies, goals, regulations,

rules, operating principles, procedures, or guidelines of the

Federal Deposit Insurance Corporation, notwithstanding the

provisions of section 553 of title 5.

(8) Limitation on authority

The Corporation shall have the authority, without any prior

review, approval, or disapproval by the Thrift Depositor

Protection Oversight Board, to make such determinations and take

such actions as it deems appropriate with respect to

case-specific matters involving (i) individual case resolutions,

(ii) asset liquidations, or (iii) day-to-day operations of the

Corporation. The preceding sentence in no way limits the

authority of the Thrift Depositor Protection Oversight Board to

review overall strategies, policies, and goals established by the

Corporation.

(9) Delegation

Except with respect to the meetings required by paragraph (10),

nothing in this section shall preclude a member of the Thrift

Depositor Protection Oversight Board who is a public official

from delegating his or her authority to an employee or officer of

such member's agency or organization, if such employee or officer

has been appointed by the President with the advice and consent

of the Senate. For purposes of the preceding sentence, the

Chairman of the Board of Governors of the Federal Reserve System

may delegate his or her authority to another member of the Board

of Governors.

(10) Open meetings

Not less than 6 times each year, the Thrift Depositor

Protection Oversight Board shall conduct open meetings to review

overall strategies, policies, and goals established by the

Corporation and to consider such other matters as pertain to its

functions under this chapter. The Thrift Depositor Protection

Oversight Board shall maintain a transcript of the board's open

meetings.

(11) Power to remove; jurisdiction

Notwithstanding any other provision of law, any civil action,

suit, or proceeding to which the Thrift Depositor Protection

Oversight Board is a party shall be deemed to arise under the

laws of the United States, and the United States district courts

shall have original jurisdiction. The Thrift Depositor

Protection Oversight Board may, without bond or security, remove

any such action, suit, or proceeding from a State court to a

United States district court or to the United States District

Court for the District of Columbia.

(12) Administrative expenses

The administrative expenses of the Thrift Depositor Protection

Oversight Board shall be paid by the Corporation, upon request of

the Thrift Depositor Protection Oversight Board.

(13) Standards, policies, procedures, guidelines, and statements

The Thrift Depositor Protection Oversight Board may issue

rules, regulations, standards, policies, procedures, guidelines,

and statements as the Thrift Depositor Protection Oversight Board

considers necessary or appropriate to carry out its authorities

and duties under this chapter which shall be promulgated pursuant

to subchapter II of chapter 5 of title 5.

(14) Strategic plan for Corporation operations

(A) In general

The chief executive officer of the Corporation is authorized

to implement the strategic plan for conducting the

Corporation's functions and activities submitted by the former

Oversight Board to the Congress, dated December 31, 1989.

(B) Provisions of plan

The strategic plan and implementing policies and procedures

required under this paragraph shall at a minimum contain the

following:

(i) Factors the Corporation shall consider in deciding the

order in which failed institutions or categories of failed

institutions will be resolved.

(ii) Standards the Corporation shall use to select the

appropriate resolution action for a failed institution.

(iii) With respect to assisted acquisitions, factors the

Corporation shall consider in deciding whether non-performing

assets of the failed institution will be transferred to the

acquiring institution rather than retained by the Corporation

for management and disposal.

(iv) Plans for the disposition of assets.

(v) Management objectives by which the Corporation's

progress in carrying out its duties under this section can be

measured.

(vi) A plan for the organizational structure and staffing

of the Corporation, including an assessment of the extent to

which the Corporation will perform asset management functions

and other duties through contracts with public and private

entities.

(vii) Consideration of whether incentives should be

included in asset management contracts to promote active and

efficient asset management.

(viii) Standards for adequate competition and fair and

consistent treatment of offerors.

(ix) Standards that prohibit discrimination on the basis of

race, sex, or ethnic group in the solicitation and

consideration of offers.

(x) Procedures for the active solicitation of offers from

minorities and women.

(xi) Procedures requiring that unsuccessful offerors be

notified in writing of the decision within 30 days after the

offer has been rejected.

(xii) Procedures for establishing the market value of

assets based upon standard market analysis, valuation, and

appraisal practices.

(xiii) Procedures requiring the timely evaluation of

purchase offers for an institution.

(xiv) Procedures for bulk sales and auction marketing of

assets.

(xv) Guidelines for determining if the value of an asset

has decreased so that no reasonable recovery is anticipated.

In such cases, the Corporation may consider potential public

uses of such asset including providing housing for lower

income families (including the homeless), day care centers

for the children of low- and moderate-income families, or

such other public purpose designated by the Secretary of

Housing and Urban Development.

(xvi) Guidelines for the conveyance of assets to units of

general local government, States, and public agencies

designated by a unit of general local government or a State,

for use in connection with urban homesteading programs

approved by the Secretary of Housing and Urban Development

under section 1706e of this title.

(xvii) Policies and procedures for avoiding political

favoritism and undue influence in contracts and decisions

made by the Thrift Depositor Protection Oversight Board and

the Corporation.

(15) Reports on any modification to any strategy, policy, or goal

If, pursuant to paragraph (6)(A), the Thrift Depositor

Protection Oversight Board requires the Corporation to modify any

overall strategy, policy, or goal, such board shall submit,

before the end of the 30-day period beginning on the date on

which the board first notifies the Corporation of such

requirement, to the Committee on Banking, Housing, and Urban

Affairs of the Senate and the Committee on Banking, Finance and

Urban Affairs of the House of Representatives an explanation of

the grounds which the board determined justified the review and

the reasons why the modification is necessary to satisfy any such

ground.

(16) Termination

The Thrift Depositor Protection Oversight Board shall terminate

not later than 60 days after the Thrift Depositor Protection

Oversight Board fulfills all of its responsibilities under this

chapter.

(b) Resolution Trust Corporation established

(1) Establishment

(A) In general

There is hereby established a Corporation to be known as the

Resolution Trust Corporation which shall be an instrumentality

of the United States.

(B) Status

The Corporation shall be deemed to be an agency of the United

States for purposes of subchapter II of chapter 5 and chapter 7

of title 5 when it is acting as a corporation. The

Corporation, when it is acting as a conservator or receiver of

an insured depository institution, shall be deemed to be an

agency of the United States to the same extent as the Federal

Deposit Insurance Corporation when it is acting as a

conservator or receiver of an insured depository institution.

The Corporation shall be managed by or under the direction of

its chief executive officer.

(2) Government corporation

Notwithstanding the fact that no Government funds may be

invested in the Corporation, the Corporation shall be treated,

for purposes of sections 9105, (FOOTNOTE 2) 9107, and 9108 of

title 31, as a mixed-ownership Government corporation which has

capital of the Government.

(FOOTNOTE 2) See References in Text note below.

(3) Duties

The duties of the Corporation shall be to carry out a program,

under the general oversight of the Thrift Depositor Protection

Oversight Board, including:

(A) To manage and resolve all cases involving depository

institutions -

(i) the accounts of which were insured by the Federal

Savings and Loan Insurance Corporation before August 9, 1989;

and

(ii) for which a conservator or receiver is appointed after

December 31, 1988, and before such date as is determined by

the Chairperson of the Thrift Depositor Protection Oversight

Board, but not earlier than January 1, 1995, and not later

than July 1, 1995 (including any institution described in

paragraph (6)).

(B) To develop and establish overall strategies, policies,

and goals for the Corporation, subject to review by the Thrift

Depositor Protection Oversight Board pursuant to subsection

(a)(6)(A) of this section.

which -

(i) maximizes the net present value return from the sale or

other disposition of institutions described in subparagraph

(A) or the assets of such institutions;

(ii) minimizes the impact of such transactions on local

real estate and financial markets;

(iii) makes efficient use of funds obtained from the

Funding Corporation or from the Treasury;

(iv) minimizes the amount of any loss realized in the

resolution of cases; and

(v) maximizes the preservation of the availability and

affordability of residential real property for low- and

moderate-income individuals.

(D) To perform any other function authorized under this

section.

(4) Conservatorship, receivership, and assistance powers

(A) In general

Except as provided in paragraph (5) and in addition to any

other provision of this section, the Corporation shall have the

same powers and rights to carry out its duties with respect to

institutions described in paragraph (3)(A) as the Federal

Deposit Insurance Corporation has under sections 1821, 1822,

and 1823 of this title with respect to insured depository

institutions (as defined in section 1813 of this title).

(B) Manner of application of least-cost resolution

For purposes of applying section 1823(c)(4) of this title to

the Corporation under subparagraph (A), the Corporation shall

be treated as the affected deposit insurance fund.

The Corporation shall implement and maintain a program, in a

manner acceptable to the Thrift Depositor Protection Oversight

Board, to provide an appeals process for business and

commercial borrowers to appeal decisions by the Corporation

(when acting as a conservator) which would have the effect of

terminating or otherwise adversely affecting credit or loan

agreements, lines of credit, and similar arrangements with such

borrowers who have not defaulted on their obligations.

(5) Limitation on paragraph (4) powers

The Corporation -

(A) may not obligate the Federal Deposit Insurance

Corporation or any funds of the Federal Deposit Insurance

Corporation; and

(B) in connection with providing assistance to an institution

under this subsection, shall be subject to the limitations

contained in section 1823(c)(4) of this title.

(6) Continuation of RTC receivership or conservatorship

(A) In general

If the Corporation is appointed as conservator or receiver

for any insured depository institution described in paragraph

(3)(A) before such date as is determined by the Chairperson of

the Thrift Depositor Protection Oversight Board under paragraph

(3)(A)(ii), and a conservator or receiver is appointed for such

institution on or after such date, the Corporation may be

appointed as conservator or receiver for such institution on or

after such date as is determined by the Chairperson of the

Thrift Depositor Protection Oversight Board under paragraph

(3)(A)(ii).

(B) SAIF-insured banks

Notwithstanding any other provision of Federal or State law,

if the Federal Deposit Insurance Corporation is appointed as

conservator or receiver for any Savings Association Insurance

Fund member that has converted to a bank charter and otherwise

meets the criteria in paragraph (3)(A) or (6)(A), the Federal

Deposit Insurance Corporation may tender such appointment to

the Corporation, and the Corporation shall accept such

appointment, if the Corporation is authorized to accept such

appointment under this section.

(7) Obligations and guarantees

The Corporation's authority to issue obligations and guarantees

shall be subject to general supervision by the Thrift Depositor

Protection Oversight Board under subsection (a) of this section

and shall be consistent with subsection (j) of this section.

(8) Staff

(A) In general

Except for the chief executive officer of the Corporation,

the Corporation itself shall have no employees.

(B) Utilization of personnel of other agencies

(i) FDIC

The Corporation shall use employees (selected by the

Corporation) of the Federal Deposit Insurance Corporation and

the Federal Deposit Insurance Corporation shall provide such

personnel to the Corporation for its use. Notwithstanding

the foregoing, the Federal Deposit Insurance Corporation need

not provide to the Corporation any employee of the Federal

Deposit Insurance Corporation who was employed by the Federal

Deposit Insurance Corporation on December 12, 1991, and who

had not theretofore been provided to the Corporation by the

Federal Deposit Insurance Corporation. In addition to persons

otherwise employed by the Federal Deposit Insurance

Corporation, the Federal Deposit Insurance Corporation shall

employ, and shall provide to the Corporation, such persons as

the Corporation may request from time to time. Federal

Deposit Insurance Corporation employees provided to the

Corporation shall be subject to the direction and control of

the Corporation and any of them may be returned to the

Federal Deposit Insurance Corporation at any time by the

Corporation in the discretion of the Corporation. The

Corporation shall reimburse the Federal Deposit Insurance

Corporation for the actual costs incurred in providing such

employees. Any permanent employee of the Federal Deposit

Insurance Corporation who was performing services on behalf

of the Corporation immediately prior to December 12, 1991,

shall continue to be provided to the Corporation after

December 12, 1991, unless the Corporation determines the

services of any such employee to be unnecessary, in which

case such employee shall be returned to a similar position

performing services on behalf of the Federal Deposit

Insurance Corporation. In any ensuing reduction-in-force or

reorganization within the Federal Deposit Insurance

Corporation, any such employee shall compete with the same

rights as any other Federal Deposit Insurance Corporation

employee. The Corporation may use administrative services of

the Federal Deposit Insurance Corporation and, if it does so,

shall reimburse the Federal Deposit Insurance Corporation for

the actual costs of providing such services.

(ii) Other agencies

With the agreement of any executive department or agency,

the Corporation may utilize the personnel of any such

executive department or agency on a reimbursable basis to

cover actual and reasonable expenses.

There is established the office of chief executive officer of

the Corporation. The chief executive officer of the Corporation

shall be appointed by the President, by and with the advice and

consent of the Senate, and shall serve at the pleasure of the

President.

(D) Powers of the chief executive officer

The chief executive officer may exercise all of the powers of

the Corporation and act for and on behalf of the Corporation,

and may delegate such authority, as deemed appropriate by the

chief executive officer, including the power to subdelegate

authority, to persons designated by the chief executive officer

who are employees of the Federal Deposit Insurance Corporation

utilized by the Corporation or who provide services for the

Corporation.

(E) Deputy chief executive officer

(i) In general

There is hereby established the position of deputy chief

executive officer of the Corporation.

(ii) Appointment

The deputy chief executive officer of the Corporation shall

(I) be appointed by the Chairperson of the Thrift

Depositor Protection Oversight Board, with the

recommendation of the chief executive officer; and

(II) be an employee of the Federal Deposit Insurance

Corporation in accordance with subparagraph (B)(i).

(iii) Duties

The deputy chief executive officer shall perform such

duties as the chief executive officer may require.

(F) Acting chief executive officer

In the event of a vacancy in the position of chief executive

officer or during the absence or disability of the chief

executive officer, the deputy chief executive officer shall

perform the duties of the position as the acting chief

executive officer.

(G) General counsel

There is established the Office of General Counsel of the

Corporation. The chief executive officer, with the concurrence

of the Chairperson of the Thrift Depositor Protection Oversight

Board, may appoint the general counsel, who shall be an

employee of the Federal Deposit Insurance Corporation, in

accordance with subparagraph (B)(i). The general counsel shall

perform such duties as the chief executive officer may require.

(9) Corporate powers

The Corporation shall have the following powers:

(A) To adopt, alter, and use a corporate seal.

(B) To enter into contracts and modify, or consent to the

modification of, any contract or agreement to which the

Corporation is a party or in which the Corporation has an

interest under this section.

(D) To acquire, hold, lease, mortgage, maintain, or dispose

of, at public or private sale, real and personal property,

using any legally available private sector methods including

without limitation, securitization of debt or equity, limited

partnerships, mortgage investment conduits, and real estate

investment trusts, and otherwise exercise all the usual

incidents of ownership of property necessary and convenient to

the operations of the Corporation.

(E) To sue and be sued in its corporate capacity in any court

of competent jurisdiction.

(F) To deposit any securities or funds held by the

Corporation in any facility or depositary described in section

1823(b) of this title under the terms and conditions applicable

to the Federal Deposit Insurance Corporation under such section

1823(b) and pay fees thereof and receive interest thereon.

(G) To take warrants, voting and nonvoting equity, or other

participation interests in institutions or assets or properties

of institutions described in paragraph (3)(A) and paragraph

(10)(A)(iv).

(H) To use the United States mails in the same manner and

under the same conditions as other departments and agencies of

the United States.

(I) To prescribe bylaws that shall be consistent with law.

(J) To make loans and, with respect to eligible residential

properties, develop risk sharing structures and other credit

enhancements to assist in the provision of property ownership,

rental, and cooperative housing opportunities for lower- and

moderate-income families.

(K) To prepare reports and provide such reports, documents,

and records to the Thrift Depositor Protection Oversight Board

as required by this section.

(L) To issue capital certificates to the Resolution Funding

Corporation consistent with the provisions of section 1441b of

this title in the following manner:

(i) Authorization to issue

The Corporation is hereby authorized to issue to the

Resolution Funding Corporation nonvoting capital

certificates.

(ii) Requirement relating to the amount of certificates

The amount of certificates issued by the Corporation under

clause (i) shall be equal to the aggregate amount of funds

provided by the Resolution Funding Corporation to the

Corporation under section 1441b of this title.

(iii) Certificates may be issued only to the Resolution

Funding Corporation

Capital certificates issued under clause (i) may be issued

only to the Resolution Funding Corporation in the manner and

to the extent provided in section 1441b of this title and

this section.

(iv) No dividends

The Corporation shall not pay dividends on any capital

certificates issued under this section.

(M) To exercise any other power established under this

section and such incidental powers as are necessary to carry

out its duties and functions under this section. The

Corporation may indemnify the directors, officers and employees

of the Corporation on such terms as the Corporation deems

proper against any liability under any civil suit pursuant to

any statute or pursuant to common law with respect to any claim

arising out of or resulting from any act or omission by such

person within the scope of such person's employment in

connection with any transaction entered into involving the

disposition of assets (or any interests in any assets or any

obligations backed by any assets) by the Corporation. For

purposes of this subparagraph, the terms ''officers'' and

''employees'' include officers and employees of the Federal

Deposit Insurance Corporation or of other agencies who perform

services for the Corporation. The indemnification authorized by

this subparagraph shall be in addition to and not in lieu of

any immunities or other protections that may be available to

such person under applicable law, and this provision does not

affect any such immunities or other protections.

(10) Special powers

(A) In general

In addition to the powers of the Corporation described in

paragraph (9), the Corporation shall have the following powers:

(i) Contracts

The Corporation may enter into contracts with any person,

corporation, or entity, including State housing finance

authorities (as such term is defined in section 1301 of the

Financial Institutions Reform, Recovery, and Enforcement Act

of 1989 (12 U.S.C. 1441a-1)) and insured depository

institutions, which the Corporation determines to be

necessary or appropriate to carry out its responsibilities

under this section. Such contracts shall be subject to the

procedures adopted pursuant to paragraph (11).

(ii) Utilization of private sector

In carrying out the Corporation's duties under this

section, the Corporation and the Federal Deposit Insurance

Corporation shall utilize the services of private persons,

including real estate and loan portfolio asset management,

property management, auction marketing, and brokerage

services, if such services are available in the private

sector and the Corporation determines utilization of such

services are practicable and efficient.

(iii) Mergers and consolidations

The Corporation may require a merger or consolidation of an

institution or institutions over which the Corporation has

jurisdiction, if such merger or consolidation is consistent

with section 1823(c)(4) of this title.

(iv) Organization of savings associations

The Corporation may organize 1 or more Federal savings

associations -

(I) which shall be chartered by the Director of the

Office of Thrift Supervision,

(II) the deposits of which, if any, shall be insured by

the Federal Deposit Insurance Corporation through the

Savings Association Insurance Fund, and

(III) which shall operate in accordance with subsection

(e) of this section.

(v) Organization of bridge banks

The Corporation may organize 1 or more bridge banks

pursuant to subsection (i) (FOOTNOTE 3) of section 1821 of

this title with respect to any institution described in

paragraph (3)(A) which becomes a bank. Such bridge bank

shall be subject to subsection (e) of this section.

(FOOTNOTE 3) So in original. Probably should be subsection

''(n)''.

(B) Review of prior cases

The Corporation shall -

(i) review and analyze all insolvent institution cases

resolved by the Federal Savings and Loan Insurance

Corporation between January 1, 1988, and August 9, 1989, and

actively review all means by which it can reduce costs under

existing Federal Savings and Loan Insurance Corporation

agreements relating to such cases, including restructuring

such agreements;

(ii) evaluate the costs under existing Federal Savings and

Loan Insurance Corporation agreements with regard to the

following -

(I) capital loss coverage,

(II) yield maintenance guarantees,

(III) forbearances,

(IV) tax consequences, and

(V) any other relevant cost consideration;

(iii) review the bidding procedures used in resolving such

cases in order to determine whether the bidding and

negotiating processes were sufficiently competitive; and

(iv) report to the Thrift Depositor Protection Oversight

Board and the Congress pursuant to subsection (k) of this

section.

(i) In general

The Corporation shall exercise any and all legal rights to

modify, renegotiate, or restructure such agreements where

savings would be realized by such actions. The cost or

income of any modification shall be a liability or an asset

of the Corporation or the FSLIC Resolution Fund as determined

by the Thrift Depositor Protection Oversight Board. Nothing

in this paragraph shall be construed as granting the

Corporation any legal rights to modify, renegotiate, or

restructure agreements between the Federal Savings and Loan

Insurance Corporation and any other party, which did not

exist prior to August 9, 1989.

(ii) Additional provisions

The Corporation, in modifying, renegotiating, or

restructuring the insolvent institution cases resolved by the

Federal Savings and Loan Insurance Corporation between

January 1, 1988, and August 9, 1989, shall carry out its

responsibilities under section 519(a) of the Department of

Veterans Affairs and Housing and Urban Development, and

Independent Agencies Appropriations Act, 1991 (104 Stat.

1386) and shall, consistent with achieving the greatest

overall financial savings to the Federal Government, pursue

all legal means by which the Corporation can reduce both the

direct outlays and the tax benefits associated with such

cases, including, but not limited to, restructuring to

eliminate tax-free interest payments and renegotiating to

capture a larger portion of the tax benefits for the

Corporation.

(11) Regulations, policies, and procedures

(A) Strategies, policies, and goals

The Corporation shall adopt the rules, regulations,

standards, procedures, guidelines, and statements necessary to

implement the strategic plan submitted by the former Oversight

Board to Congress dated December 31, 1989. The Corporation may

establish overall strategies, policies, and goals for its

activities and may issue such rules, regulations, standards,

principles, procedures, guidelines, and statements as the

Corporation considers necessary or appropriate to carry out its

duties.

(B) Review, etc.

Such overall strategies, policies, and goals, and such rules,

regulations, standards, principles, procedures, guidelines, and

statements -

(i) shall be provided by the Corporation to the Thrift

Depositor Protection Oversight Board promptly or prior to

publication or announcement to the extent practicable;

(ii) shall be subject to the review of the Thrift Depositor

Protection Oversight Board as provided in subsection

(a)(6)(A) of this section (with respect to overall

strategies, policies, and goals); and

(iii) shall be promulgated pursuant to subchapter II of

chapter 5 of title 5.

solicitation and acceptance of offers

The Corporation shall -

(i) document decisions made in the solicitation and

selection process and the reasons for the decisions; and

(ii) maintain such documentation in the offices of the

Corporation, as well as any other documentation relating to

the solicitation and selection process.

(D) Distressed areas

(i) In general

In developing its implementing policies, the Corporation

shall take the action described in clause (ii) to avoid

adverse economic impact for those real estate markets that

are distressed.

(ii) Valuation and disposition

The Corporation shall establish an appraisal or other

valuation method for determining the market value of real

property. With respect to a real property asset with a

market value in excess of a certain dollar limit (such limit

to be determined by the chief executive officer of the

Corporation), consideration shall be given to the volume of

assets above such limit and the potential impact of sales in

such distressed areas. The Corporation shall not sell a real

property asset located in a distressed area without obtaining

at least the minimum disposition price, unless a

determination has been made that such a transaction furthers

the objectives set forth in paragraph (3)(C).

(iii) Exception

The provisions of this subparagraph shall not apply to any

property as long as such property is subject to the

requirements of subsection (c) of this section.

(E) Definitions

For the purposes of this subsection -

(i) The term ''minimum disposition price'' means 95 percent

of the market value established by the Corporation. The chief

executive officer, in the chief executive officer's

discretion, may change the percentage set forth in this

definition from time to time if the chief executive officer

determines that such change does not adversely impact the

objectives set forth in paragraph (3)(C).

(ii) The term ''sell a real property asset'' means to

convey all title and interest in a piece of tangible real

property in which the Corporation has a fee simple or

equivalent interest. The term ''real property'' does not

include loans secured by real property, joint ventures,

participation interests, options, or other similar

interests. In addition, the term ''sell'' does not include

hypothecation of assets, issuance of asset backed securities,

issuance of joint ventures, or participation interests, or

other similar activities.

(iii) The term ''distressed area'' means the geographic

areas in those political subdivisions designated from time to

time by the chief executive officer as having depressed real

estate markets. Until the chief executive officer designates

otherwise, such distressed areas shall be the States of

Arkansas, Colorado, Louisiana, New Mexico, Oklahoma, and

Texas.

(iv) The term ''market value'' means the most probable

price which a property should bring in a competitive and open

market if -

(I) all conditions requisite to a fair sale are present,

(II) the buyer and seller are acting prudently and are

knowledgeable, and

(III) the price is not affected by any undue stimulus.

(F) Real Estate Asset Division

The Corporation shall establish a Real Estate Asset Division

to assist and advise the Corporation with respect to the

management, sale, or other disposition of real property assets

of institutions described in paragraph (3)(A). The Real Estate

Asset Division shall have such duties as the Corporation

establishes, including the publication of an inventory of real

property assets of institutions subject to the jurisdiction of

the Corporation. Such inventory shall be published before

January 1, 1990 and updated semiannually thereafter and shall

identify properties with natural, cultural, recreational, or

scientific values of special significance.

(G) Advisory personnel

The Corporation shall maintain an executive-level position

and dedicated staff to assist and advise the Corporation and

other agencies in pursuing cases, civil claims, and

administrative enforcement actions against

institution-affiliated parties of insured depository

institutions under the jurisdiction of the Corporation. These

personnel shall have such duties as the Corporation

establishes, including the duty to compile and publish a report

to the Congress on the coordinated pursuit of claims by all

Federal financial institution regulatory agencies, including

the Department of Justice and the Securities and Exchange

Commission. The report shall be published before December 31,

1990 and updated semiannually after such date.

(12) Periodic financing requests

The Corporation shall provide the Thrift Depositor Protection

Oversight Board with periodic financing requests which shall

detail -

(A) anticipated funding requirements for operations, case

resolution, and asset liquidation,

(B) anticipated payments on previously issued notes,

guarantees, other obligations, and related activities, and

obligations.

Such financing requests shall be submitted on a quarterly basis

or such other period as the Thrift Depositor Protection Oversight

Board determines necessary. Following approval by the Thrift

Depositor Protection Oversight Board, such requests shall form

the basis for expending funds provided by the Treasury, for

transferring funds from the Resolution Funding Corporation to the

Corporation and the issuance of capital certificates by the

Corporation in exchange therefor.

(13) Goal for participation of small business concerns

The Corporation shall have an annual goal that presents the

maximum practicable opportunity for small business concerns,

small business concerns owned and controlled by socially and

economically disadvantaged individuals, and qualified HUBZone

small business concerns (as defined in section 632(p) of title

15) to participate in the performance of contracts awarded by the

Corporation.

(14) Extension of statute of limitations

(A) Tort actions for which the prior limitation has run

(i) In general

In the case of any tort claim -

(I) which is described in clause (ii); and

(II) for which the applicable statute of limitations

under section 1821(d)(14)(A)(ii) of this title has expired

before December 17, 1993;

the statute of limitations which shall apply to an action

brought on such claim by the Corporation in the Corporation's

capacity as conservator or receiver of an institution

described in paragraph (3)(A) shall be the period determined

under subparagraph (C).

(ii) Claims described

A tort claim referred to in clause (i)(I) with respect to

an institution described in paragraph (3)(A) is a claim

arising from fraud, intentional misconduct resulting in

unjust enrichment, or intentional misconduct resulting in

substantial loss to the institution.

(B) Tort actions for which the prior limitation has not run

(i) In general

Notwithstanding section 1821(d)(14)(A) of this title, in

the case of any tort claim -

(I) which is described in clause (ii); and

(II) for which the applicable statute of limitations

under section 1821(d)(14)(A)(ii) of this title has not

expired as of December 17, 1993;

the statute of limitations which shall apply to an action

brought on such claim by the Corporation in the Corporation's

capacity as conservator or receiver of an institution

described in paragraph (3)(A) shall be the period determined

under subparagraph (C).

(ii) Claims described

A tort claim referred to in clause (i)(I) with respect to

an institution described in paragraph (3)(A) is a claim

arising from gross negligence or conduct that demonstrates a

greater disregard of a duty of care than gross negligence,

including intentional tortious conduct relating to the

institution.

The period determined under this subparagraph for any claim

to which subparagraph (A) or (B) applies shall be the longer of

(i) the period beginning on the date the claim accrues (as

determined pursuant to section 1821(d)(14)(B) of this title)

and ending on December 31, 1995 or ending on the date of the

termination of the Corporation pursuant to subsection (m)(1)

of this section, whichever is later; or

(ii) the period applicable under State law for such claim.

(D) Scope of application

Subparagraphs (A) and (B) shall not apply to any action which

is brought after the date of the termination of the Corporation

under subsection (m)(1) of this section.

(E) Revival of expired State causes of action

In the case of any tort claim described in subparagraph

(A)(ii) for which the statute of limitation applicable under

State law with respect to such claim has expired not more than

5 years before the appointment of the Corporation as

conservator or receiver, the Corporation may bring an action as

conservator or receiver on such claim without regard to the

expiration of the statute of limitation applicable under State

law.

(15) Purchase rights of tenants

(A) Notice

Except as provided in subparagraph (C), the Corporation may

make available for sale a 1- to 4-family residence (including a

manufactured home) to which the Corporation acquires title only

after the Corporation has provided the household residing in

the property notice (in writing and mailed to the property) of

the availability of such property and the preference afforded

such household under subparagraph (B).

(B) Preference

In selling such a property, the Corporation shall give

preference to any bona fide offer made by the household

residing in the property, if -

(i) such offer is substantially similar in amount to other

offers made within such period (or expected by the

Corporation to be made within such period);

(ii) such offer is made during the period beginning upon

the Corporation making such property available and of a

reasonable duration, as determined by the Corporation based

on the normal period for sale of such properties; and

(iii) the household making the offer complies with any

other requirements applicable to purchasers of such property,

including any downpayment and credit requirements.

Subparagraphs (A) and (B) shall not apply to -

(i) any residence transferred in connection with the

transfer of substantially all of the assets of an insured

depository institution for which the Corporation has been

appointed conservator or receiver;

(ii) any eligible single family property (as such term is

defined in subsection (c)(9) of this section); or

(iii) any residence for which the household occupying the

residence was the mortgagor under a mortgage on such

residence and to which the Corporation acquired title

pursuant to default on such mortgage.

(16) Preference for sales for homeless families

Subject to paragraph (15), in selling any real property (other

than eligible residential property and eligible condominium

property, as such terms are defined in subsection (c)(9) of this

section) to which the Corporation acquires title, the Corporation

shall give preference, among offers to purchase the property that

will result in the same net present value proceeds, to any offer

that would provide for the property to be used, during the

remaining useful life of the property, to provide housing or

shelter for homeless persons (as such term is defined in section

103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.

11302)) or homeless families.

(17) Preferences for sales of certain commercial real properties

(A) Authority

In selling any eligible commercial real properties of the

Corporation, the Corporation shall give preference, among

offers to purchase the property that will result in the same

net present value proceeds, to any offer -

(i) that is made by a public agency or nonprofit

organization; and

(ii) under which the purchaser agrees that the property

shall be used, during the remaining useful life of the

property, for offices and administrative purposes of the

purchaser to carry out a program to acquire residential

properties to provide (I) homeownership and rental housing

opportunities for very-low-, low-, and moderate-income

families, or (II) housing or shelter for homeless persons (as

such term is defined in section 103 of the McKinney-Vento

Homeless Assistance Act (42 U.S.C. 11302)) or homeless

families.

(B) Definitions

For purposes of this paragraph, the following definitions

shall apply:

(i) Eligible commercial real property

The term ''eligible commercial real property'' means any

property (I) to which the Corporation acquires title, and

(II) that the Corporation, in the discretion of the

Corporation, determines is suitable for use for the location

of offices or other administrative functions involved with

carrying out a program referred to in subparagraph (A)(ii).

(ii) Nonprofit organization and public agency

The terms ''nonprofit organization'' and ''public agency''

have the same meanings as in subsection (c)(9) of this

section.

(1) Purpose

The purpose of this subsection is to provide homeownership and

rental housing opportunities for very low-income, lower-income,

and moderate-income families.

(2) Rules governing disposition of eligible single family

properties

(A) Notice to clearinghouses

Within a reasonable period of time after acquiring title to

an eligible single family property, the Corporation shall

provide written notice to clearinghouses. Such notice shall

contain basic information about the property, including but not

limited to location, condition, and information relating to the

estimated fair market value of the property. Each

clearinghouse shall make such information available, upon

request, to other public agencies, other nonprofit

organizations, and qualifying households. The Corporation

shall allow public agencies, nonprofit organizations, and

qualifying households reasonable access to eligible single

family property for purposes of inspection.

(B) Offers to sell single family properties to nonprofit

organizations, public agencies, and qualifying households

Except as provided in the last sentence of this subparagraph

(FOOTNOTE 4) for the 3-month and one week period following the

date on which the Corporation makes an eligible single family

property available for sale, the Corporation shall offer to

sell the property to (i) qualifying households (including

qualifying households with members who are veterans), or (ii)

public agencies or nonprofit organizations that agree to (I)

make the property available for occupancy by and maintain it as

affordable for lower-income families (including lower-income

families with members who are veterans) for the remaining

useful life of such property, or (II) make the property

available for purchase by any such family who, except as

provided in subparagraph (D), agrees to occupy the property as

a principal residence for at least 12 months and who certifies

in writing that the family intends to occupy the property for

at least 12 months. The restrictions described in subclause

(I) of the preceding sentence shall be contained in the deed or

other recorded instrument. If upon the expiration of such

3-month and one week period, no qualifying household, public

agency, or nonprofit organization has made a bona fide offer to

purchase the property, the Corporation may offer to sell the

property to any purchaser. The Corporation shall actively

market eligible single family properties for sale to

lower-income families and to lower-income families with members

who are veterans. To the extent or in such amounts as are

provided in appropriations Acts for additional costs and losses

to the Corporation resulting from this sentence taking effect,

for purposes of this subsection the period referred to in the

first and third sentences shall be considered to be the 180-day

period following the date on which the Corporation first makes

an eligible single family property available for sale.

(FOOTNOTE 4) So in original. Probably should be followed by a

comma.

Except as provided in subparagraph (D), if any eligible

single family property sold (i) to a qualifying household, or

(ii) to a lower-income family pursuant to subparagraph

(B)(ii)(II), paragraph (12)(C)(i), or paragraph (13)(B), is

resold by the qualifying household or lower-income family

during the 1-year period beginning upon initial acquisition by

the household or lower-income family, the Corporation shall

recapture 75 percent of the amount of any proceeds from the

resale that exceed the sum of (I) the original sale price for

the acquisition of the property by the qualifying household or

lower-income family; (II) the costs of any improvements to the

property made after the date of the acquisition, and (III) any

closing costs in connection with the acquisition.

(D) Exceptions to recapture requirement

(i) Relocation

The Corporation (or its successor) may in its discretion

waive the applicability (I) to any qualifying household of

the requirement under subparagraph (C) and the requirements

relating to residency of a qualifying household under

paragraphs (9)(L)(ii) and (iii), and (II) to any lower-income

family of the requirement under subparagraph (C) and the

residency requirements under subparagraph (B)(ii)(II). The

Corporation may grant any such a waiver only for good cause

shown, including any necessary relocation of the qualifying

household or lower-income family.

(ii) Other recapture provisions

The requirement under subparagraph (C) shall not apply to

any eligible single family property for which, upon resale by

the qualifying household or lower-income family during the

1-year period beginning upon initial acquisition by the

household or family, a portion of the sale proceeds or any

subsidy provided in connection with the acquisition of the

property by the household or family is required to be

recaptured or repaid under any other Federal, State, or local

law (including section 143(m) of title 26) or regulation or

under any sale agreement.

(E) Exception to avoid displacement of existing residents

Notwithstanding the first sentence of subparagraph (B),

during the 180-day period following the date on which the

Corporation makes an eligible single family property available

for sale, the Corporation may sell the property to the

household residing in the property, but only if (i) such

household was residing in the property at the time notice

regarding the property was provided to clearinghouses under

subparagraph (A), (ii) such sale is necessary to avoid the

displacement of, and unnecessary hardship to, the resident

household, (iii) the resident household intends to occupy the

property as a principal residence for at least 12 months, and

(iv) and the resident household certifies in writing that the

household intends to occupy the property for at least 12

months.

(3) Rules governing disposition of eligible multifamily housing

properties

Except as provided under paragraph (6)(D), the Corporation

shall dispose of eligible multifamily housing property as

follows:

(A) Notice to clearinghouses

Within a reasonable period of time after acquiring title to

an eligible multifamily housing property, the Corporation shall

provide written notice to clearinghouses. Such notice shall

contain basic information about the property, including but not

limited to location, number of units (identified by number of

bedrooms), and information relating to the estimated fair

market value of the property. The clearinghouses shall make

such information available, upon request, to qualifying

multifamily purchasers. The Corporation shall allow qualifying

multifamily purchasers reasonable access to an eligible

multifamily housing property for purposes of inspection.

(B) Expression of serious interest

Qualifying multifamily purchasers may give written notice of

serious interest in a property during a period ending 90 days

after the time the Corporation provides notice under

subparagraph (A). Such notice of serious interest shall be in

such form and include such information as the Corporation may

prescribe.

Upon the expiration of the period referred to in subparagraph

(B) for a property, the Corporation shall provide written

notice to any qualifying multifamily purchaser that has

expressed serious interest in the property. Such notice shall

specify the minimum terms and conditions for sale of the

property.

(D) Offers to purchase

A qualifying multifamily purchaser receiving notice in

accordance with subparagraph (C) shall have 45 days (from the

date notice is received) to make a bona fide offer to purchase

a property. The Corporation shall accept an offer that

complies with the terms and conditions established by the

Corporation. If, before the expiration of such 45-day period,

any offer to purchase a property initially accepted by the

Corporation is subsequently rejected or fails (for any reason),

the Corporation shall accept another offer to purchase the

property made during such period that complies with the terms

and conditions established by the Corporation (if such another

offer is made). The preceding sentence may not be construed to

require a qualifying multifamily purchaser whose offer is

accepted during the 45-day period to purchase the property

before the expiration of the period.

(E) Lower-income occupancy requirements

(i) Single property purchases

With respect to any purchase of a single eligible

multifamily housing property by a qualifying multifamily

purchaser under subparagraph (D) -

(I) not less than 35 percent of all dwelling units

purchased shall be made available for occupancy by and

maintained as affordable for lower-income and very

low-income families during the remaining useful life of the

property in which the units are located; and

(II) not less than 20 percent of all dwelling units

purchased shall be made available for occupancy by and

maintained as affordable for very low-income families

(including very low-income families taken into account for

purposes of subclause (I)) during the remaining useful life

of the property in which the units are located.

(ii) Aggregation requirements for multiproperty purchases

With respect to any purchase under subparagraph (D) by a

qualifying multifamily purchaser involving more than one

eligible multifamily housing property as a part of the same

negotiation -

(I) the provisions of clause (i) shall apply in the

aggregate to the properties so purchased; except that

(II) to the extent or in such amounts as are provided in

appropriations Acts for additional costs and losses to the

Corporation resulting from this subclause taking effect,

not less than (a) 40 percent of the aggregate number of all

dwelling units purchased shall be made available for

occupancy by and maintained as affordable for lower-income

and very low-income families during the remaining useful

life of the property in which the units are located, (b) 20

percent of the aggregate number of all dwelling units

purchased shall be made available for occupancy by and

maintained as affordable for very low-income families

(including very low-income families taken into account for

purposes of subdivision (a) of this subclause) during the

remaining useful life of the property in which the units

are located, and (c) not less than 10 percent of the

dwelling units in each separate property purchased shall be

made available for occupancy by and maintained as

affordable for lower-income families during the remaining

useful life of the property in which the units are located.

The requirements of this subparagraph shall be contained in the

deed or other recorded instrument.

(F) Sale of multifamily properties to other purchasers

(i) If, upon the expiration of the period referred to in

subparagraph (B), no qualifying multifamily purchaser has

expressed serious interest in a property, the Corporation may

offer to sell the property, individually or in combination with

other properties, to any purchaser.

(ii) The Corporation may not sell in combination with other

properties any property which a qualifying multifamily

purchaser has expressed serious interest in purchasing

individually.

(iii) If, upon the expiration of the period referred to in

subparagraph (D), no qualifying multifamily purchaser has made

an offer to purchase the property, the Corporation may sell the

property, individually or in combination with other properties,

to any purchaser.

(G) Extension of restricted offer periods

Notwithstanding subparagraph (F), the Corporation may provide

notice to clearinghouses regarding, and offer for sale under

the provisions of subparagraphs (A) through (D), any eligible

multifamily housing property -

(i) in which no qualifying multifamily purchaser has

expressed serious interest during the period referred to in

subparagraph (B), or

(ii) for which no qualifying multifamily purchaser has made

a bona fide offer before the expiration of the period

referred to in subparagraph (D),

except that the Corporation may, in the discretion of the

Corporation, alter the duration of the periods referred to in

subparagraphs (B) and (D) in offering any property for sale

under this subparagraph.

(H) Exemptions

(i) Continued occupancy of current residents

No purchaser of an eligible multifamily housing property

may terminate the occupancy of any person residing in the

property on the date of purchase for purposes of meeting the

lower-income occupancy requirement applicable to the property

under subparagraph (E). The purchaser shall be in compliance

with this paragraph if each newly vacant dwelling unit is

reserved for lower-income occupancy until the lower-income

occupancy requirement is met.

(ii) Financial infeasibility

The Secretary of Housing and Urban Development or the State

housing finance agency for the State in which the property is

located may temporarily reduce the lower-income occupancy

requirements applicable to any property under subparagraph

(E), if the Secretary or the applicable State housing finance

agency determines that an owner's compliance with such

requirements is no longer financially feasible. The owner of

the property shall make a good-faith effort to return

lower-income occupancy to the level required by subparagraph

(E), and the Secretary of Housing and Urban Development or

the State housing finance agency, as appropriate, shall

review the reduction annually to determine whether financial

infeasibility continues to exist.

(4) Rent limitations

(A) In general

With respect to properties under subparagraph (B), rents

charged to tenants for units made available for occupancy by

very-low income families shall not exceed 30 percent of the

adjusted income of a family whose income equals 50 percent of

the median income for the area, as determined by the Secretary,

with adjustment for family size. Rents charged to tenants for

units made available for occupancy by lower-income families

other than very low-income families shall not exceed 30 percent

of the adjusted income of a family whose income equals 65

percent of the median income for the area, as determined by the

Secretary, with adjustment for family size.

(B) Applicability

The rent limitations under this paragraph shall apply to any

eligible single-family property sold pursuant to paragraph

(2)(B)(ii)(I) and to any multifamily housing property sold

pursuant to paragraph (3).

(5) Preference for sales

When selling any eligible multifamily housing property or

combinations of eligible residential properties, the Corporation

shall give preference, among substantially similar offers, to the

offer that would reserve the highest percentage of dwelling units

for occupancy or purchase by very low-income families and

lower-income families and would retain such affordability for the

longest term.

(6) Financing of sale

(A) Assistance by Corporation

(i) Sale price

The Corporation shall establish a market value for each

eligible multifamily housing property. The Corporation shall

sell eligible multifamily housing property at the net

realizable market value. The Corporation may agree to sell

eligible multifamily housing property at a price below the

net realizable market value to the extent necessary to

facilitate an expedited sale of such property and enable a

public agency or nonprofit organization to comply with the

lower-income occupancy requirements applicable to such

property under paragraph (3). The Corporation may sell

eligible single family property or eligible condominium

property to qualifying households, nonprofit organizations,

and public agencies without regard to any minimum sale price.

(ii) Purchase loan

The Corporation may provide a loan at market interest rates

to the purchaser of eligible residential property for all or

a portion of the purchase price, which loan shall be secured

by a first or second mortgage on the property. The

Corporation may provide such a loan at below market interest

rates to the extent necessary to facilitate an expedited sale

of eligible residential property and permit (I) a

lower-income family to purchase an eligible single family

property under paragraph (2); or (II) a public agency or

nonprofit organization to comply with the lower-income

occupancy requirements applicable to the purchase of an

eligible residential property under paragraph (2) or (3). The

Corporation shall provide such loan in a form which would

permit its sale or transfer to a subsequent holder. In

providing financing for combinations of eligible multifamily

housing properties under this subsection, the Corporation may

hold a participating share, including a subordinate

participation. The Corporation shall periodically provide,

to a wide range of minority- and women-owned businesses

engaged in providing affordable housing and to nonprofit

organizations, more than 50 percent of the control of which

is held by 1 or more minority individuals, that are engaged

in providing affordable housing, information that is

sufficient to inform such businesses and organizations of the

availability and terms of financing under this clause; such

information may be provided directly, by notices published in

periodicals and other publications that regularly provide

information to such businesses or organizations, and through

persons and organizations that regularly provide information

or services to such businesses or organizations. For

purposes of this clause, the terms ''women-owned business''

and ''minority-owned business'' have the meanings given such

terms in subsection (r) of this section, and the term

''minority'' has the meaning given such term in section

1204(c)(3) of the Financial Institutions Reform, Recovery,

and Enforcement Act of 1989.

(B) Assistance by HUD

The Secretary shall take such action as may be necessary to

expedite the processing of applications for assistance under

section 202 of the Housing Act of 1959 (12 U.S.C. 1701q), the

United States Housing Act of 1937 (42 U.S.C. 1437 et seq.),

title IV of the McKinney-Vento Homeless Assistance Act (42

U.S.C. 11361 et seq.), section 810 (FOOTNOTE 5) of the Housing

and Community Development Act of 1974 (12 U.S.C. 1706e), and

the National Housing Act (12 U.S.C. 1701 et seq.) to enable any

organization or individual to purchase eligible residential

property.

(FOOTNOTE 5) See References in Text note below.

The Secretary of Agriculture shall take such actions as may

be necessary to expedite the processing of applications for

assistance under title V of the Housing Act of 1949 (42 U.S.C.

1471 et seq.) to enable any organization or individual to

purchase eligible residential property.

(D) Exception to disposition rules

Notwithstanding the requirements under subparagraphs (A),

(B), (C), (D), (F), and (G) of paragraph (3), the Corporation

may provide for the disposition of eligible multifamily housing

properties as necessary to facilitate purchase of such

properties for use in connection with the section 202 of the

Housing Act of 1959 (12 U.S.C. 1701q).

(E) Urban homesteading acquisition

(i) In providing for bulk acquisition of eligible single

family properties by the Secretary under section 810(l)

(FOOTNOTE 5) of the Housing and Community Development Act of

1974 (12 U.S.C. 1706e(l)) and by participating jurisdictions

for inclusion in affordable housing activities assisted under

title II of the Cranston-Gonzalez National Affordable Housing

Act (42 U.S.C. 12721 et seq.), the Corporation shall agree to

an amount to be paid for acquisition of such properties. The

acquisition price shall include discounts for bulk purchase and

for holding of the property such that the acquisition price for

each property shall not exceed 50 percent of the fair market

value of the property, as valued individually.

(ii) To the extent necessary to facilitate sale of properties

to the Secretary and participating jurisdictions, the

requirements of paragraphs (2), (5), and (6)(A) of this

subsection shall not apply to such transactions and property

involved in such transactions.

(iii) To facilitate acquisitions by the Secretary and

participating jurisdictions, the Corporation shall provide the

Secretary and participating jurisdictions with an inventory of

eligible single family properties, not less than 4 times each

year.

(7) Contracting rules

Contracts entered into under this subsection shall not be

subject to the requirements of subsection (b)(10)(A) of this

section.

(8) Use of secondary market agencies

(A) In general

In the disposition of eligible residential properties, the

Corporation shall, in consultation with the Secretary, explore

opportunities to work with secondary market entities to provide

housing for lower- and moderate-income families.

(B) Credit enhancement

(i) In general

With respect to such Corporation properties, the Secretary

may, consistent with statutory authorities, work through the

Federal Housing Administration, the Government National

Mortgage Association, the Federal National Mortgage

Association, the Federal Home Loan Mortgage Corporation, and

other secondary market entities to develop risk sharing

structures, mortgage insurance, and other credit enhancements

to assist in the provision of property ownership, rental, and

cooperative housing opportunities for lower- and

moderate-income families.

(ii) Certain tax-exempt bonds

The Corporation may provide credit enhancements with

respect to tax-exempt bonds issued on behalf of nonprofit

organizations pursuant to section 103, and subpart A of part

IV of subchapter B of chapter 1, of title 26, with respect to

the disposition of eligible residential properties for the

purposes described in clause (i).

In the annual report submitted by the Secretary to the

Congress, the Secretary shall include a detailed description of

his activities under this paragraph, including recommendations

for such additional authorization as he deems necessary to

implement the provisions of this subsection.

(9) Definitions

For purposes of this subsection -

(A) Adjusted income and income

The terms ''adjusted income'' and ''income'' shall have the

meaning given such terms in section 3(b) of the United States

Housing Act of 1937 (42 U.S.C. 1437a(b)).

(B) Clearinghouses

The term ''clearinghouses'' means -

(i) the State housing finance agency for the State in which

an eligible residential property is located,

(ii) the Office of Community Investment (or other

comparable division) within the Federal Housing Finance

Board, and

(iii) any national nonprofit organizations (FOOTNOTE 6)

(including any nonprofit entity established by the

corporation established under title IX of the Housing and

Community Development Act of 1968 (42 U.S.C. 3931 et seq.))

that the Corporation determines has the capacity to act as a

clearinghouse for information.

(FOOTNOTE 6) So in original. Probably should be

''organization''.

The term ''Corporation'' means the Resolution Trust

Corporation.

(D) Eligible condominium property

The term ''eligible condominium property'' means a

condominium unit, as such term is defined in section 3603 of

title 15 -

(i) to which the Corporation acquires title in its

corporate capacity, its capacity as conservator, or its

capacity as receiver (including its capacity as the sole

owner of a subsidiary corporation of a depository institution

under conservatorship or receivership, which subsidiary has

as its principal business the ownership of real property);

and

(ii) that has an appraised value that does not exceed -

(I) $67,500 in the case of a 1-family residence, $76,000

in the case of a 2-family residence, $92,000 in the case of

a 3-family residence, and $107,000 in the case of a

4-family residence; or

(II) only to the extent or in such amounts as are

provided in appropriation Acts for additional costs and

losses to the Corporation resulting from this subclause

taking effect, the amount provided in section 203(b)(2)(A)

of the National Housing Act (12 U.S.C. 1709(b)(2)(A)),

except that such amount shall not exceed $101,250 in the

case of a 1-family residence, $114,000 in the case of a

2-family residence, $138,000 in the case of a 3-family

residence, and $160,500 in the case of a 4-family

residence.

(E) Eligible multifamily housing property

(i) Basic definition

The term ''eligible multifamily housing property'' means a

property consisting of more than 4 dwelling units -

(I) to which the Corporation acquires title either in its

corporate capacity or as receiver (including its capacity

as the sole owner of a subsidiary corporation of a

depository institution under receivership, which subsidiary

has as its principal business the ownership of real

property), but not in its capacity as an operating

conservator; and

(II) that has an appraised value that does not exceed,

for such part of the property as may be attributable to

dwelling use (excluding exterior land improvements),

$29,500 per family unit without a bedroom, $33,816 per

family unit with 1 bedroom, $41,120 per family unit with 2

bedrooms, $53,195 per family unit with 3 bedrooms, and

$58,392 per family unit with 4 or more bedrooms.

(ii) Expanded definition

Notwithstanding clause (i), to the extent or in such

amounts as are provided in appropriations Acts for additional

costs and losses to the Corporation resulting from this

clause taking effect, the term ''eligible multifamily housing

property'' shall mean a property consisting of more than 4

dwelling units -

(I) to which the Corporation acquires title in its

corporate capacity, its capacity as conservator, or its

capacity as receiver (including its capacity as the sole

owner of a subsidiary corporation of a depository

institution under conservatorship or receivership, which

subsidiary has as its principal business the ownership of

real property); and

(II) that has an appraised value that does not exceed,

for such part of the property as may be attributable to

dwelling use (excluding exterior land improvements),

$29,500 per family unit without a bedroom, $33,816 per

family unit with 1 bedroom, $41,120 per family unit with 2

bedrooms, $53,195 per family unit with 3 bedrooms, and

$58,392 per family unit with 4 or more bedrooms.

(F) Eligible residential property

The term ''eligible residential property'' includes eligible

single family properties and eligible multifamily housing

properties.

(G) Eligible single family property

The term ''eligible single family property'' means a 1- to

4-family residence (including a manufactured home) -

(i) to which the Corporation acquires title in its

corporate capacity, its capacity as conservator, or its

capacity as receiver (including its capacity as the sole

owner of a subsidiary corporation of a depository institution

under conservatorship or receivership, which subsidiary has

as its principal business the ownership of real property);

and

(ii) that has an appraised value that does not exceed -

(I) $67,500 in the case of a 1-family residence, $76,000

in the case of a 2-family residence, $92,000 in the case of

a 3-family residence, and $107,000 in the case of a

4-family residence; or

(II) only to the extent or in such amounts as are

provided in appropriation Acts for additional costs and

losses to the Corporation resulting from this subclause

taking effect, the amount provided in section 203(b)(2)(A)

of the National Housing Act (12 U.S.C. 1709(b)(2)(A)),

except that such amount shall not exceed $101,250 in the

case of a 1-family residence, $114,000 in the case of a

2-family residence, $138,000 in the case of a 3-family

residence, and $160,500 in the case of a 4-family

residence.

(H) Lower-income families

The term ''lower-income families'' means families and

individuals whose incomes do not exceed 80 percent of the

median income of the area involved, as determined by the

Secretary, with adjustment for family size.

(I) Net realizable market value

The term ''net realizable market value'' means a price below

the market value that takes into account (i) any reductions in

holding costs resulting from the expedited sale of a property,

including but not limited to foregone real estate taxes,

insurance, maintenance costs, security costs, and loss of use

of funds, and (ii) the avoidance, where applicable, of fees

paid to real estate brokers, auctioneers, or other individuals

or organizations involved in the sale of property owned by the

Corporation.

(J) Nonprofit organization

The term ''nonprofit organization'' means a private

organization (including a limited equity cooperative) -

(i) no part of the net earnings of which inures to the

benefit of any member, shareholder, founder, contributor, or

individual; and

(ii) that is approved by the Corporation as to financial

responsibility.

(K) Public agency

The term ''public agency'' -

(i) means any Federal, State, local, or other governmental

entity; and

(ii) includes any public housing agency.

(L) Qualifying household

The term ''qualifying household'' means a household (i) who

intends to occupy eligible single family property as a

principle (FOOTNOTE 7) residence; and (ii) who agrees to occupy

the property as a principal residence for at least 12 months

(except as provided in paragraph (2)(D)); (iii) who certifies

in writing that the household intends to occupy the property as

a principal residence for at least 12 months (except as

provided in paragraph (2)(D)); and (iv) whose income does not

exceed 115 percent of the median income for the area, as

determined by the Secretary, with adjustment for family size.

(FOOTNOTE 7) So in original. Probably should be ''principal''.

(M) Qualifying multifamily purchaser

The term ''qualifying multifamily purchaser'' means (i) a

public agency, (ii) a nonprofit organization, or (iii) a

for-profit entity which makes a commitment (for itself or any

related entity) to satisfy the lower-income occupancy

requirements specified under paragraph (3)(E) for any eligible

multifamily property for which an offer to purchase is made

during or after the periods specified under paragraph (3).

(N) Rural area

The term ''rural area'' has the meaning given such term in

section 520 of the Housing Act of 1949 (42 U.S.C. 1490).

(O) Secretary

The term ''Secretary'' means the Secretary of the (FOOTNOTE

8) Housing and Urban Development.

(FOOTNOTE 8) So in original. The word ''the'' probably should

not appear.

(P) State housing finance agency

The term ''State housing finance agency'' means the public

agency, authority, corporation, or other instrumentality of a

State that has the authority to provide residential mortgage

loan financing throughout such State.

(Q) Very low-income families

The term ''very-low income families'' means families and

individuals whose incomes do not exceed 50 percent of the

median income of the area involved, as determined by the

Secretary, with adjustment for family size.

(10) Exemption for certain transactions with insured depository

institutions

The provisions of this subsection shall not apply with respect

to any eligible residential property after the date the

Corporation enters into a contract to sell such property to an

insured depository institution (as defined in section 1813 of

this title), including any sale in connection with a transfer of

all or substantially all of the assets of a closed savings

association (including such property) to an insured depository

institution.

(11) Third party rights

(A) In general

The provisions of this subsection, or any failure by the

Corporation to comply with such provisions, may not be used by

any person to attack or defeat any title to property once it is

conveyed by the Corporation.

(B) Lower-income occupancy

The lower-income occupancy requirements applicable under

paragraphs (2), (3), (12)(C), (13)(B), and (14)(C) shall be

judicially enforceable against purchasers of property under

this subsection or their successors in interest by affected

very low- and lower-income families, State housing finance

agencies, and any agency, corporation, or authority of the

United States Government. The parties specified in the

preceding sentence shall be entitled to reasonable attorney

fees upon prevailing in any such judicial action.

A clearinghouse shall not be subject to suit for its failure

to comply with the requirements of this subsection.

(D) Corporation

The Corporation shall not be liable to any depositor,

creditor, or shareholder of any insured depository institution

for which the Corporation has been appointed receiver or

conservator, or of any subsidiary corporation of a depository

institution under conservatorship or receivership, or any

claimant against such an institution or subsidiary, because the

disposition of assets of the institution or the subsidiary

under this subsection affects the amount of return from the

assets.

(12) Transfer of certain eligible residential properties to State

housing agencies for disposition

Notwithstanding paragraphs (2), (3), (5), and (6), the

Corporation may transfer eligible residential properties to the

State housing finance agency or any other State housing agency

for the State in which the property is located, or to any local

housing agency in whose jurisdiction the property is located.

Transfers of eligible residential properties under this paragraph

may be conducted by direct sale, consignment sale, or any other

method the Corporation considers appropriate and shall be subject

to the following requirements:

(A) Individual or bulk transfer

The Corporation may transfer such properties individually or

in bulk, as agreed to by the Corporation and the State housing

finance agency or State or local housing agency.

(B) Acquisition price and discount

The acquisition price paid by the State housing finance

agency or State or local housing agency to the Corporation for

properties transferred under this paragraph shall be an amount

agreed to by the Corporation and the transferee agency.

Any State housing finance agency or State or local housing

agency acquiring properties under this paragraph shall offer to

sell or transfer the properties only as follows:

(i) Eligible single family properties

For eligible single family properties -

(I) to purchasers described under clauses (i) and (ii) of

paragraph (2)(B);

(II) if the purchaser is a purchaser described under

paragraph (2)(B)(ii)(I), subject to the rent limitations

under paragraph (4)(A);

(III) subject to the requirement in the second sentence

of paragraph (2)(B); and

(IV) subject to recapture by the Corporation of excess

proceeds from resale of the properties under subparagraphs

(ii) Eligible multifamily housing properties

For eligible multifamily housing properties -

(I) to qualifying multifamily purchasers;

(II) subject to the lower-income occupancy requirements

under paragraph (3)(E);

(III) subject to the provisions of paragraph (3)(H);

(IV) subject to a preference, among financially

acceptable offers, to the offer that would reserve the

highest percentage of dwelling units for occupancy or

purchase by very low-income families and lower-income

families and would retain such affordability for the

longest term; and

(V) subject to the rent limitations under paragraph

(4)(A).

(D) Affordability

The State housing finance agency or State or local housing

agency shall endeavor to make the properties transferred under

this paragraph more affordable to lower-income families based

upon the extent to which the acquisition price of a property

under subparagraph (B) is less than the market value of the

property.

(13) Exception for sales to nonprofit organizations and public

agencies

(A) Suspension of offer periods

With respect to any eligible residential property, the

Corporation may (in the discretion of the Corporation) suspend

any of the requirements of subparagraphs (A) and (B) of

paragraph (2) and subparagraphs (A) through (D) of paragraph

(3), as applicable, but only to the extent that for the

duration of the suspension the Corporation negotiates the sale

of the property to a nonprofit organization or public agency.

If the property is not sold pursuant to such negotiations, the

requirements of any provisions suspended shall apply upon the

termination of the suspension. Any time period referred to in

such paragraphs shall toll for the duration of any suspension

under this subparagraph.

(B) Use restrictions

(i) Eligible single family property

Any eligible single family property sold under this

paragraph shall be (I) made available for occupancy by and

maintained as affordable for lower-income families for the

remaining useful life of the property, or made available for

purchase by such families, (II) subject to the rent

limitations under paragraph (4)(A), (III) subject to the

requirements relating to residency of a qualifying household

under paragraph (9)(L) and to residency of a lower-income

family under paragraph (2)(B)(ii), and (IV) subject to

recapture by the Corporation of excess proceeds from resale

of the property under subparagraphs (C) and (D) of paragraph

(2).

(ii) Eligible multifamily housing property

Any eligible multifamily housing property sold under this

paragraph shall comply with the lower-income occupancy

requirements under paragraph (3)(E) and shall be subject to

the rent limitations under paragraph (4)(A).

(14) Rules governing disposition of eligible condominium property

(A) Notice to clearinghouses

Within a reasonable period of time after acquiring title to

an eligible condominium property, the Corporation shall provide

written notice to clearinghouses. Such notice shall contain

basic information about the property. Each clearinghouse shall

make such information available, upon request, to purchasers

described in clauses (i) through (iv) of subparagraph (B). The

Corporation shall allow such purchasers reasonable access to an

eligible condominium property for purposes of inspection.

(B) Offers to sell

For the 180-day period following the date on which the

Corporation makes an eligible condominium property available

for sale, the Corporation may offer to sell the property, at

the discretion of the Corporation, to 1 or more of the

following purchasers:

(i) Qualifying households.

(ii) Nonprofit organizations.

(iii) Public agencies.

(iv) For-profit entities.

(i) In general

Except as provided in clause (ii), any nonprofit

organization, public agency, or for-profit entity that

purchases an eligible condominium property shall (I) make the

property available for occupancy by and maintain it as

affordable for lower-income families for the remaining useful

life of the property, or (II) make the property available for

purchase by any such family who, except as provided in

subparagraph (E), agrees to occupy the property as a

principal residence for at least 12 months and who certifies

in writing that the family intends to occupy the property for

at least 12 months. The restriction described in subclause

(I) of the preceding sentence shall be contained in the deed

or other recorded instrument.

(ii) Multiple-unit purchases

If any nonprofit organization, public agency, or for-profit

entity purchases more than 1 eligible condominium property as

a part of the same negotiation or purchase, the Corporation

may (in the discretion of the Corporation) waive the

requirement under clause (i) and provide instead that not

less than 35 percent of all eligible condominium properties

purchased shall be (I) made available for occupancy by and

maintained as affordable for lower-income families for the

remaining useful life of the property, or (II) made available

for purchase by any such family who, except as provided in

subparagraph (E), agrees to occupy the property as a

principal residence for at least 12 months and who certifies

in writing that the family intends to occupy the property for

at least 12 months. The restriction described (FOOTNOTE 9)

subclause (I) of the preceding sentence shall be contained in

the deed or other recorded instrument.

(FOOTNOTE 9) So in original. Probably should be ''described

in''.

(iii) Sale to other purchasers

If, upon the expiration of the 180-day period referred to

in subparagraph (B), no purchaser described in clauses (i)

through (iv) of subparagraph (B) has made a bona fide offer

to purchase the property, the Corporation may offer to sell

the property to any other purchaser.

(D) Recapture of profits from resale

Except as provided in subparagraph (E), if any eligible

condominium property sold (i) to a qualifying household, or

(ii) to a lower-income family pursuant to subparagraph

(C)(i)(II) or (C)(ii)(II), is resold by the qualifying

household or lower-income family during the 1-year period

beginning upon initial acquisition by the household or family,

the Corporation shall recapture 75 percent of the amount of any

proceeds from the resale that exceed the sum of (I) the

original sale price for the acquisition of the property by the

qualifying household or lower-income family, (II) the costs of

any improvements to the property made after the date of the

acquisition, and (III) any closing costs in connection with the

acquisition.

(E) Exception to recapture requirement

The Corporation (or its successor) may in its discretion

waive the applicability to any qualifying household or

lower-income family of the requirement under subparagraph (D)

and the requirements relating to residency of a qualifying

household or lower-income family (under paragraph (9)(L) and

subparagraph (C) of this paragraph, respectively). The

Corporation may grant any such a (FOOTNOTE 01) waiver only for

good cause shown, including any necessary relocation of the

qualifying household or lower-income family.

(FOOTNOTE 01) So in original. The word ''a'' probably should

not appear.

(F) Limitations on multiple unit purchases

The Corporation may not sell or offer to sell as part of the

same negotiation or purchase any eligible condominium

properties that are not located in the same condominium project

(as such term is defined in section 3603 of title 15). The

preceding sentence may not be construed to require all eligible

condominium properties offered or sold as part of the same

negotiation or purchase to be located in the same structure.

(G) Rent limitations

Rents charged to tenants of eligible condominium properties

made available for occupancy by very low-income families shall

not exceed 30 percent of the adjusted income of a family whose

income equals 50 percent of the median income for the area, as

determined by the Secretary, with adjustment for family size.

Rents charged to tenants of eligible condominium properties

made available for occupancy by lower-income families other

than very low-income families shall not exceed 30 percent of

the adjusted income of a family whose income equals 65 percent

of the median income for the area, as determined by the

Secretary, with adjustment for family size.

(15) Reports to Congress

(A) In general

The Corporation shall submit to the Congress semiannual

reports under this paragraph regarding the disposition of

eligible residential properties under this subsection during

the most recently concluded reporting period. The first report

under this paragraph shall be submitted not later than the

expiration of the 4-month period beginning upon the conclusion

of the first reporting period under subparagraph (B).

Subsequent reports shall be submitted not less than every 6

months after such expiration.

(B) Reporting periods

For purposes of this paragraph, the term ''reporting period''

means the 6-month period for which a report under this

paragraph is made, except that the first reporting period shall

be the period beginning on August 9, 1989, and ending on

December 12, 1991. Each successive reporting period shall begin

upon the conclusion of the preceding reporting period.

Each report under this paragraph shall contain information

regarding each eligible residential property sold by the

Corporation during the applicable reporting period, as follows:

(i) A description of the property, the location of the

property, and the number of dwelling units in the property.

(ii) The appraised value of the property.

(iii) The sale price of the property.

(iv) For eligible single family properties -

(I) the income and race of the purchaser of the property,

if the property is sold to an occupying household or is

sold for resale to an occupying household; and

(II) whether the property is reserved for residency by

very low- or lower-income families, if the property is sold

for use as rental property.

(v) For eligible multifamily housing properties, the number

and percentage of dwelling units in the property reserved for

occupancy by very low- and lower-income families.

(vi) The number of eligible single family properties sold

after the expiration of the offer period for such properties

referred to in paragraph (2)(B).

(vii) The number of eligible multifamily housing properties

sold after the expiration of the periods for such properties

referred to in subparagraphs (B) and (D) of paragraph (3).

(D) Number of properties within windows

Each report under this paragraph shall contain the following

information:

(i) The number of eligible single family properties for

which the offer period referred to in paragraph (2)(B) had

not expired before the conclusion of the applicable reporting

period (or had not yet commenced).

(ii) The number of eligible multifamily housing properties

for which the 90-day period referred to in paragraph (3)(B)

had not expired before the conclusion of the applicable

reporting period (or had not yet commenced).

(16) Notice to clearinghouses regarding ineligible properties

(A) In general

Within a reasonable period of time after acquiring title to

an ineligible residential property, the Corporation shall, to

the extent practicable, provide written notice to

clearinghouses.

(B) Content

For ineligible single family properties, such notice shall

contain the same information about such properties that the

notice required under paragraph (2)(A) contains with respect to

eligible single family properties. For ineligible multifamily

housing properties, such notice shall contain the same

information about such properties that the notice required

under paragraph (3)(A) contains with respect to eligible

multifamily housing properties. For ineligible condominium

properties, such notice shall contain the same information

about such properties that the notice required under paragraph

(14)(A) contains with respect to eligible condominium

properties.

The clearinghouses shall make such information available,

upon request, to other public agencies, other nonprofit

organizations, qualifying households, qualifying multifamily

purchasers, and other purchasers, as appropriate.

(D) Definitions

For purposes of this paragraph, the following definitions

shall apply:

(i) Ineligible condominium property

The term ''ineligible condominium property'' means a

condominium unit, as such term is defined in section 3603 of

title 15 -

(I) to which the Corporation acquires title in its

corporate capacity, its capacity as conservator, or its

capacity as receiver (including its capacity as the sole

owner of a subsidiary corporation of a depository

institution under conservatorship or receivership, which

subsidiary corporation has as its principal business the

ownership of real property);

(II) that has an appraised value that does not exceed the

applicable dollar amount limitation for the property under

paragraph (9)(D)(ii)(II); and

(III) that is not an eligible condominium property.

(ii) Ineligible multifamily housing property

The term ''ineligible multifamily housing property'' means

a property consisting of more than 4 dwelling units -

(I) to which the Corporation acquires title in its

capacity as conservator (including its capacity as the sole

owner of a subsidiary corporation of a depository

institution under conservatorship, which subsidiary

corporation has as its principal business the ownership of

real property);

(II) that has an appraised value that does not exceed,

for such part of the property as may be attributable to

dwelling use (excluding exterior land improvements), the

dollar amount limitations under paragraph (9)(E)(i)(II);

and

(III) that is not an eligible multifamily housing

property.

(iii) Ineligible single family property

The term ''ineligible single family property'' means a 1-

to 4-family residence (including a manufactured home) -

(I) to which the Corporation acquires title in its

corporate capacity, its capacity as conservator, or its

capacity as receiver (including its capacity as the sole

owner of a subsidiary corporation of a depository

institution under conservatorship or receivership, which

subsidiary corporation has as its principal business the

ownership of real property);

(II) that has an appraised value that does not exceed the

applicable dollar amount limitation for the property under

paragraph (9)(G)(ii)(II); and

(III) that is not an eligible single family property.

(iv) Ineligible residential property

The term ''ineligible residential property'' includes

ineligible single family properties, ineligible multifamily

housing properties, and ineligible condominium properties.

(17) Unified affordable housing program

(A) In general

Not later than 4 months after December 17, 1993, the

Corporation shall enter into an agreement, as described in

section 1831q(n)(3) of this title, with the Federal Deposit

Insurance Corporation that sets out a plan for the orderly

unification of the Corporation's activities, authorities, and

responsibilities under this subsection with the authorities,

activities, and responsibilities of the Federal Deposit

Insurance Corporation pursuant to section 1831q of this title

in a manner that best achieves an effective and comprehensive

affordable housing program management structure. The agreement

shall be entered into after consultation with the Affordable

Housing Advisory Board under section 14(b) of the Resolution

Trust Corporation Completion Act.

(B) Authority and implementation

The Corporation shall have the authority to carry out the

provisions of the agreement entered into pursuant to

subparagraph (A) and shall implement such agreement as soon as

practicable, but in no event later than 8 months after December

17, 1993.

Effective upon October 1, 1995, any remaining authority and

responsibilities of the Corporation under this subsection shall

be carried out by the Federal Deposit Insurance Corporation.

(d) National and regional advisory boards

(1) National advisory board

(A) Establishment

The Thrift Depositor Protection Oversight Board shall

establish a national advisory board to provide information to

the Thrift Depositor Protection Oversight Board, and to advise

that Board on policies and programs for the sale or other

disposition of real property assets of institutions which are

described in subsection (b)(3)(A) of this section.

(B) Membership

The national advisory board shall consist of -

(i) a chairperson appointed by the Thrift Depositor

Protection Oversight Board; and

(ii) the chairpersons of any regional advisory boards

established pursuant to paragraph (3).

The national advisory board shall meet 4 times a year, or

more frequently if requested by the Corporation.

(2) (Reserved)

(3) Regional advisory boards

(A) Establishment

The Thrift Depositor Protection Oversight Board shall

establish not less than 6 regional advisory boards to advise

the Corporation on the policies and programs for the sale or

other disposition of real property assets of institutions

described in subsection (b)(3)(A) of this section. Such

regional advisory boards shall be established in any region

where the Thrift Depositor Protection Oversight Board

determines that there exists a significant portfolio of real

property assets of institutions which are described in

subsection (b)(3)(A) of this section.

(B) Membership

(i) Appointment

Each regional advisory board shall consist of 5 members.

Each member shall be appointed by the Thrift Depositor

Protection Oversight Board and shall serve at the pleasure of

the Thrift Depositor Protection Oversight Board. The members

shall be selected from those residents of the region who will

represent the views of low- and moderate-income consumers and

small businesses, or who have knowledge and experience

regarding business, financial, and real estate matters.

(ii) Terms

Each member of a regional advisory board shall serve a term

not to exceed 2 years, except that the Thrift Depositor

Protection Oversight Board may provide for classes of members

so that the terms of not more than 3 members of any such

board shall expire in any 1 year.

Each regional advisory board shall meet 4 times a year, or

more frequently if requested by the Corporation. A regional

advisory board shall conduct its meetings in its region.

(4) Prohibition on compensation

Members of the national and regional advisory boards shall

serve without compensation, except that such members shall be

entitled to receive allowances in accordance with subchapter I of

chapter 57 of title 5 for necessary expenses of travel, lodging,

and subsistence incurred in attending official meetings and other

activities of the boards.

(5) Treatment as advisory committee and termination of national

and regional advisory boards

(A) Federal Advisory Committee Act

The national and regional advisory boards shall be subject to

the provisions of the Federal Advisory Committee Act.

(B) Termination

Notwithstanding the provisions of the Federal Advisory

Committee Act, the national advisory board and any regional

advisory board established pursuant to this subsection which is

in existence on the date on which the Corporation terminates

shall also terminate on such date.

(e) Institutions organized by Corporation

(1) Limitations on certain activities

All insured depository institutions (as defined in section 1813

of this title) organized by the Corporation under this section

shall, during the period such institutions are within the control

of the Corporation, be subject to such limitations, restrictions,

and conditions as determined by the Corporation with respect to

the following activities:

(A) Growth of assets.

(B) Lending and borrowing activities.

(D) Use of brokered deposits.

(E) Payment of deposit rates.

(F) Setting policy or credit standards.

(G) Capital standards.

(2) Applicability of other provisions of law

Except as otherwise provided, all insured depository

institutions (defined in section 1813 of this title) organized by

the Corporation shall -

(A) be subject to all laws and rules otherwise applicable to

them as insured depository institutions, and

(B) shall (FOOTNOTE 11) be subject to the supervision of the

appropriate Federal banking agency (as that term is defined in

section 1813 of this title).

(FOOTNOTE 11) So in original. The word ''shall'' probably

should not appear.

(f) Limitation on certain Corporation activities

(1) Certain sales prohibited

The Corporation shall prescribe regulations to prohibit the

sale of assets of a failed institution by the Corporation to any

person who -

(A)(i) has defaulted, or was a member of a partnership or an

officer or director of a corporation which has defaulted, on 1

or more obligations the aggregate amount of which exceed

$1,000,000 to such failed institution;

(ii) has been found to have engaged in fraudulent activity in

connection with any obligation referred to in clause (i); and

(iii) proposes to purchase any such asset in whole or in part

through the use of the proceeds of a loan or advance of credit

from the Corporation or from any institution subject to the

jurisdiction of the Corporation pursuant to paragraph (3)(A);

(B) participated, as an officer or director of such failed

institution or of any affiliate of such institution, in a

material way in transactions that resulted in a substantial

loss to such failed institution;

in the affairs of, such failed institution pursuant to any

final enforcement action by an appropriate Federal banking

agency; or

(D) has demonstrated a pattern or practice of defalcation

regarding obligations to such failed institution.

(2) Settlement of claims; definitions

(A) Settlement of claims

Nothing in this subsection shall prohibit the Corporation

from selling or otherwise transferring any asset to any person

if the sale or transfer of the asset resolves or settles, or is

part of the resolution or settlement, of obligations owed by

the person to the failed institution or the Corporation.

(B) Definitions

For purposes of paragraph (1) -

(i) Default

The term ''default'' means a failure to comply with the

terms of a loan or other obligation to such an extent that

the property securing the obligation is foreclosed upon.

(ii) Affiliate

The term ''affiliate'' has the meaning given to such term

in section 1841(k) of this title.

(g) Exemption from State and local taxation

The Corporation and the Thrift Depositor Protection Oversight

Board, the capital, reserves, surpluses, and assets of the

Corporation and the Thrift Depositor Protection Oversight Board,

and the income derived from such capital, reserves, surpluses, or

assets shall be exempt from State, municipal, and local taxation

except taxes on real estate held by the Corporation, according to

its value as other similar property held by other persons is taxed.

(h) Guarantees of FSLIC

(1) Assumption by Corporation

On August 9, 1989, the Corporation shall, by operation of law

(and without further action by the Corporation, the Thrift

Depositor Protection Oversight Board, the Federal Housing Finance

Board, the Federal Savings and Loan Insurance Corporation, or any

court), assume all rights and obligations of the Federal Savings

and Loan Insurance Corporation with respect to any guarantee

issued by the Federal Savings and Loan Insurance Corporation

during the period beginning on January 1, 1989, and ending on

August 9, 1989, in connection with any loan to any savings

association by any Federal Reserve bank or Federal Home Loan Bank

(hereinafter in this subsection referred to as a ''lender'').

(2) Payment by Corporation

Any obligation assumed by the Corporation for any guarantee

described in paragraph (1) to any lender shall be paid by the

Corporation before the end of the 1-year period beginning on

August 9, 1989. Payment shall be made from funds or assets

available to the Corporation.

(3) Priority of claims of lenders

Any claim by a lender with respect to any obligation assumed by

the Corporation for a guarantee described in paragraph (1) shall

have priority over all other secured or unsecured obligations of

the Corporation.

(4) Treasury backup

If the resources of the Corporation are insufficient to pay all

the obligations assumed by the Corporation under paragraph (1)

within the 1-year period, the Secretary of the Treasury shall pay

the amount of any such deficiency. There are hereby appropriated

to the Secretary for fiscal year 1989 and each fiscal year

thereafter, such sums as may be necessary to pay such deficiency.

(i) Funding

(1) Borrowing

(A) In general

The Corporation, upon approval of the Thrift Depositor

Protection Oversight Board, is authorized to borrow from the

Treasury. The Secretary of the Treasury is authorized and

directed to loan to the Corporation, on such terms as may be

fixed by the Secretary of the Treasury, an amount not exceeding

in the aggregate $5,000,000,000 outstanding at any one time.

(B) Interest rate

Each such loan shall bear interest at a rate determined by

the Secretary of the Treasury, taking into consideration

current market yields on outstanding marketable obligations of

the United States of comparable maturities.

(2) Interim funding

The Secretary of the Treasury shall provide the sum of

$30,000,000,000 to the Corporation to carry out the purposes of

this section.

(3) Additional interim funding

In addition to amounts provided under paragraph (2), the

Secretary of the Treasury shall provide to the Corporation such

sums as may be necessary, not to exceed $25 billion, to carry out

the purposes of this section.

(4) Conditions on availability of final funding in excess of

$10,000,000,000

(A) Certification required

Of the funds appropriated under paragraph (3) which are

provided after April 1, 1993, any amount in excess of

$10,000,000,000 shall not be available to the Corporation

before the date on which the Secretary of the Treasury

certifies to the Congress that, since December 17, 1993, the

Corporation has taken such action as may be necessary to comply

with the requirements of subsection (w) of this section or

that, as of the date of the certification, the Corporation is

continuing to make adequate progress toward full compliance

with such requirements.

(B) Appearance upon request

The Secretary of the Treasury shall appear before the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives or the Committee on Banking, Housing, and Urban

Affairs of the Senate, upon the request of the chairman of the

committee, to report on any certification made to the Congress

under subparagraph (A).

(5) Return to Treasury

If the aggregate amount of funds transferred to the Corporation

pursuant to this subsection exceeds the amount needed to carry

out the purposes of this section or to meet the requirements of

section 1821(a)(6)(F) of this title, such excess amount shall be

deposited in the general fund of the Treasury.

(6) Funds only for depositors

Notwithstanding any provision of law other than section

1823(c)(4)(G) of this title, funds appropriated under this

section shall not be used in any manner to benefit any

shareholder of -

(A) any insured depository institution for which the

Corporation has been appointed conservator or receiver, in

connection with any type of resolution by the Corporation;

(B) any other insured depository institution in default or in

danger of default, in connection with any type of resolution by

the Corporation; or

the provision of assistance under section 1821 or 1823 of this

title with respect to such institution, except that this

subparagraph shall not prohibit assistance to any insured

depository institution that is not in default, or that is not

in danger of default, that is acquiring (as defined in section

1823(f)(8)(B) of this title) another insured depository

institution.

(j) Maximum amount limitations on outstanding obligations

(1) In general

Notwithstanding any other provision of this section, the amount

which is equal to -

(A) the sum of -

(i) the total amount of contributions received from the

Resolution Funding Corporation; and

(ii) the total amount of outstanding obligations of the

Corporation; minus

(B) the sum of -

(i) the amount of cash held by the Corporation; and

(ii) the amount which is equal to 85 percent of the

Corporation's estimate of the fair market value of other

assets held by the Corporation,

may not exceed $50,000,000,000.

(2) ''Outstanding obligation'' defined

For purposes of this subsection (other than paragraph (3)), the

term ''outstanding obligation'' includes -

(A) any obligation or other liability assumed by the

Corporation from the Federal Savings and Loan Insurance

Corporation under this section or pursuant to any provision of

the Financial Institutions Reform, Recovery, and Enforcement

Act of 1989;

(B) any guarantee issued by the Corporation;

Secretary of the Treasury pursuant to subsection (i) of this

section; and

(D) any other obligation for which the Corporation has a

direct or contingent liability to pay any amount.

(3) Full faith and credit

The full faith and credit of the United States is pledged to

the payment of any obligation issued by the Corporation, with

respect to both principal and interest, if -

(A) the principal amount of such obligation is stated in the

obligation; and

(B) the term to maturity or the date of maturity of such

obligation is stated in the obligation.

(4) Estimates of costs of contingent liabilities required

(A) In general

The Corporation shall -

(i) estimate the cost to such Corporation of any contingent

liability of the Corporation; and

(ii) at least once each calendar quarter, make such

adjustment as is appropriate in the estimate of such cost.

(B) Inclusion in financial statements and outstanding

obligations

The estimated amount of the cost to the Corporation of any

contingent liability of the Corporation (taking into account

the most recent adjustment to such estimate pursuant to

paragraph (A)(ii)) shall be -

(i) treated as an outstanding obligation of the Corporation

for purposes of this subsection; and

(ii) included in any financial statement of the

Corporation.

(k) Reporting and disclosure obligations

(1) Audits

(A) Annual audit

Notwithstanding section 9105 of title 31, the Comptroller

General shall audit annually the financial statements of the

Corporation in accordance with generally accepted Government

auditing standards. The audited statements shall be

transmitted to the Congress by the Thrift Depositor Protection

Oversight Board not later than 180 days after the end of the

Corporation's fiscal year to which those statements apply.

(B) Access to books and records

All books, records, accounts, reports, files, and property

belonging to or used by the Corporation, or the Thrift

Depositor Protection Oversight Board shall be made available to

the Comptroller General.

(2) Public disclosure of transactions

(A) Disclosure required

Except as otherwise provided in this subsection, the

Corporation shall make available to the public -

(i) any agreement entered into by the Corporation relating

to a transaction for which the Corporation provides

assistance pursuant to section 1823(c) of this title, not

later than 30 days after the first meeting of the Thrift

Depositor Protection Oversight Board after such agreement is

entered into; and

(ii) all agreements relating to cases reviewed by the

Corporation pursuant to subsection (b)(11)(B) of this

section.

(B) Exception for disclosures against the public interest

(i) In general

The Thrift Depositor Protection Oversight Board may

withhold from public disclosure any document or part of a

document if the Thrift Depositor Protection Oversight Board

determines, by a unanimous affirmative vote of the members of

the Board, that disclosure would be contrary to the public

interest.

(ii) Report of determination

A written report shall be made of any determination by the

Thrift Depositor Protection Oversight Board to withhold any

part of a document from public disclosure pursuant to clause

(i). Such report shall contain a full explanation of the

specific reasons for such determination.

(iii) Publication and submission of report

The report prepared pursuant to clause (ii) shall be -

(I) published in the Federal Register; and

(II) transmitted to the Committee on Banking, Finance and

Urban Affairs of the House of Representatives and the

Committee on Banking, Housing, and Urban Affairs of the

Senate.

For purposes of this subsection, the term ''agreement''

includes -

(i) all documents which effectuate the terms and conditions

of the assisted transaction;

(ii) a comparison, which the Corporation shall prepare of -

(I) the estimated cost of the transaction, with

(II) the estimated cost of liquidating the insured

institution; and

(iii) a description of any economic or statistical

assumptions on which such estimates are based.

(3) Disclosure to Congress of transactions

(A) Prospective transactions

The Corporation shall make available to the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and

Urban Affairs of the Senate any agreement entered into by the

Corporation relating to a transaction for which the Corporation

provides assistance pursuant to section 1823(c) of this title

not later than 25 days after the first meeting of the Thrift

Depositor Protection Oversight Board after such agreement is

entered into. The foregoing requirement is in addition to the

Corporation's obligation to make such agreements publicly

available pursuant to paragraph (2).

(B) Prior transactions

The Corporation shall submit a report to the Thrift Depositor

Protection Oversight Board and the Congress containing the

results and conclusions of the review of the 1988 transactions

conducted pursuant to subsection (b)(10)(B) of this section and

such recommendations for legislative action as the Corporation

may determine to be appropriate.

(4) Annual reports

(A) In general

The Thrift Depositor Protection Oversight Board and the

Corporation shall annually submit a full report of their

respective operations, activities, budgets, receipts, and

expenditures for the preceding 12-month period.

(B) Contents

The report required under subparagraph (A) shall include -

(i) audited statements and such information as is necessary

to make known the financial condition and operations of the

Corporation in accordance with generally accepted accounting

principles;

(ii) the Corporation's financial operating plans and

forecasts (including budgets, estimates of actual and future

spending, and estimates of actual and future cash

obligations) taking into account the Corporation's financial

commitments, guarantees, and other contingent liabilities;

(iii) the number of minority and women investors

participating in the bidding process for assisted

acquisitions and the disposition of assets and the number of

successful bids by such investors;

(iv) a list of the properties sold to State housing finance

authorities (as such term is defined in section 1301 of the

Financial Institutions Reform, Recovery, and Enforcement Act

of 1989 (12 U.S.C. 1441a-1)), the individual purchase prices

of such properties, and an estimate of the premium paid by

such authorities for such properties; and

(v) descriptions of the operations and activities of the

national and regional advisory boards established under

subsection (d) of this section and financial statements

detailing the expenses of such boards.

The Corporation shall submit each annual report required

under this subsection to the Congress and the President as soon

as practicable after the end of the calendar year for which

such report is made but not later than June 30 of the year

following such calendar year.

(5) Additional reports

(A) Reports required

In addition to the annual report required under paragraph

(4), the Thrift Depositor Protection Oversight Board and the

Corporation shall submit to Congress not later than April 30

and October 31 of each calendar year, a semiannual report on

the activities and efforts of the Corporation, the Federal

Deposit Insurance Corporation, and the Thrift Depositor

Protection Oversight Board for the 6-month period ending on the

last day of the month prior to the month in which such report

is required to be submitted.

(B) Contents of report

Each semiannual report required under subparagraph (A) shall

include the following information with respect to the

Corporation's assets and liabilities and to the assets and

liabilities of institutions described in subsection (b)(3)(A)

of this section:

(i) A statement of the total book value of all assets held

or managed by the Corporation at the beginning and end of the

reporting period.

(ii) A statement of the total book value of such assets

which are under contract to be managed by private persons and

entities at the beginning and end of the reporting period.

(iii) The number of employees of the Corporation, the

Federal Deposit Insurance Corporation, and the Thrift

Depositor Protection Oversight Board at the beginning and end

of the reporting period.

(iv) The total amounts expended on employee wages,

salaries, and overhead, during such period which are

attributable to -

(I) contracting with, supervising, or reviewing the

performance of private contractors, or

(II) managing or disposing of such assets.

(v) A statement of the total amount expended on private

contractors for the management of such assets.

(vi) A statement of the efforts of the Corporation to

maximize the efficient utilization of the resources of the

private sector during the reporting period and in future

reporting periods and a description of the policies and

procedures adopted to ensure adequate competition and fair

and consistent treatment of qualified third parties seeking

to provide services to the Corporation or the Federal Deposit

Insurance Corporation.

(vii) The total book value and total proceeds from such

assets disposed of during the reporting period.

(viii) Summary data on discounts from book value at which

such assets were sold or otherwise disposed of during the

reporting period.

(ix) A list of all of the areas that carried a distressed

area designation during the reporting period (including a

justification for removal of areas from or addition of areas

to the list of distressed areas).

(x) An evaluation of market conditions in distressed areas

and a description of any changes in conditions during the

reporting period.

(xi) Any change adopted by the Thrift Depositor Protection

Oversight Board in a minimum disposition price and the

reasons for such change.

(xii) The valuation method or methods adopted by the Thrift

Depositor Protection Oversight Board or the Corporation to

value assets and the reasons for selecting such methods.

(xiii) A complete description of all actions taken by the

Corporation pursuant to subsections (a), (b), and (c) of

section 1216 of the Financial Institutions Reform, Recovery,

and Enforcement Act of 1989 (12 U.S.C. 1833e(a), (b), (c))

with respect to the employment of and contracting with

minorities, women, and businesses owned or controlled by

minorities or women and any other activity of the Corporation

pursuant to the outreach program of the Corporation for

minorities and women. Such description shall specify the

steps taken by the Corporation, in its corporate capacity and

its capacity as conservator or receiver, to implement the

minority and women outreach programs required by section

1216(c) of the Financial Institutions Reform, Recovery, and

Enforcement Act of 1989 (12 U.S.C. 1833e(c)) and shall set

forth information and data showing -

(I) the extent to which and means by which contract

solicitations have been directed to minorities, women, and

businesses owned or controlled by minorities or women by

the Corporation and by the Federal Deposit Insurance

Corporation on behalf of the Corporation;

(II) the extent to which prime contracts and subcontracts

have been awarded to minorities, women, and businesses

owned or controlled by minorities or women, including data

with respect to the number of such contracts, the dollar

amounts thereof, and the percentage of Corporation

contracting activity represented thereby (including

contracting activity by the Federal Deposit Insurance

Corporation on behalf of the Corporation);

(III) contracting and outreach activity with respect to

joint ventures and other business arrangements in which

minorities, women, or businesses owned or controlled by

minorities or women have a participation or interest; and

(IV) the extent to which the Corporation's minority and

women contracting outreach programs have been successful in

maximizing opportunities through the outreach policies

established by the Corporation for participation of

minorities, women, and businesses owned or controlled by

minorities or women in the Corporation's contracting

activities.

In addition to the annual report required under paragraph

(4), the Thrift Depositor Protection Oversight Board and the

Corporation shall submit to the Congress, not later than

September 30 of each calendar year, an unaudited financial

statement for the 6-month period ending on June 30 of such

year.

(6) Appearances before Congressional committees

(A) (FOOTNOTE 21) Semiannual appearance required

(FOOTNOTE 21) So in original. No subpar. (B) has been enacted.

Not later than 30 days after submission of the semiannual

reports required by paragraph (5), the Thrift Depositor

Protection Oversight Board shall appear before the Committee on

Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and

Urban Affairs of the Senate to -

(i) report on the progress made during such period in

resolving cases involving institutions described in

subsection (b)(3)(A) of this section;

(ii) provide an estimate of the short-term and long-term

cost to the United States Government of obligations issued or

incurred during such period;

(iii) report on the progress made during such period in

selling assets of institutions described in subsection

(b)(3)(A) of this section and the impact such sales are

having on the local markets in which such assets are located;

(iv) describe the costs incurred by the Corporation in

issuing obligations, managing and selling assets acquired by

the Corporation;

(v) provide an estimate of the income of the Corporation

from assets acquired by the Corporation;

(vi) provide an assessment of any potential source of

additional funds for the Corporation; and

(vii) provide an estimate of the remaining exposure of the

United States Government in connection with institutions

described in subsection (b)(3)(A) of this section which, in

the Thrift Depositor Protection Oversight Board's estimation,

will require assistance or liquidation after the end of such

period.

(7) Quarterly reports

Not later than May 31, August 31, November 30, and the last day

of February of each year, the Corporation shall submit a report

to the Committee on Banking, Finance and Urban Affairs of the

House of Representatives and the Committee on Banking, Housing,

and Urban Affairs of the Senate containing the following

information for the preceding calendar quarter:

(A) Asset sales

The report shall contain the following information with

respect to assets of institutions described in subsection

(b)(3)(A) of this section which were disposed of by the

Corporation during the quarter covered by the report:

(i) The total amount of the actual sales of assets during

the quarter.

(ii) The value of the assets as determined on the basis of

the amount at which each such asset was accounted for on the

books of the institution.

(iii) The fair market value of the assets as estimated by

the Corporation for purposes of securing amounts borrowed

from the Federal Financing Bank by the Corporation.

(iv) The net recovery on asset sales during the quarter.

(v) A subtotal of the value of the assets disposed of

during the quarter in each of the following categories:

(I) Cash and securities.

(II) Mortgage loans for 1- to 4-family dwellings.

(III) Construction and land loans.

(IV) Other mortgage loans.

(V) Consumer loans.

(VI) Commercial loans.

(VII) Real estate owned assets.

(VIII) Other assets.

(B) Auction sales

The report shall contain information regarding auction sales

of RTC assets, including the following information:

(i) The date and location of each auction sale during the

quarter.

(ii) The total value of the sales of assets sold during an

auction during the quarter.

(iii) The total value of assets sold at each auction, as

determined on the basis of the amount at which each such

asset was accounted for on the books of the institution.

-SOURCE-

(iv) The total fair market value of assets sold at each

auction, as estimated by the Corporation.

(v) The total actual selling price of assets sold during

each auction held during the quarter.

(vi) The net recovery or loss on assets sold during an

auction during the quarter, by category listed in subclauses

(I) through (VII) of clause (vii).

(vii) A subtotal of the value of the assets sold during an

auction during the quarter in each of the following

categories:

(I) Cash and securities.

(II) Mortgage loans for 1- to 4-family dwellings.

(III) Construction and land loans.

(IV) Other mortgage loans.

(V) Consumer loans.

(VI) Commercial loans.

(VII) Real estate owned assets.

(VIII) Other assets.

The report shall contain the following information with

respect to loans from the Federal Financing Bank to the

Corporation:

(i) The total amount of loans outstanding at the beginning

of the quarter.

(ii) The total amount of loans originated during the

quarter.

(iii) The total amount of loans repaid during the quarter.

(iv) The total amount of loans outstanding at the end of

the quarter.

(D) Seller financing

The report shall contain information regarding the

Corporation's use of seller financing to encourage the sales of

assets during the quarter, including the following:

(i) A total of the amount of funds used for seller

financing purposes during the quarter.

(ii) The number of applications received by the Corporation

which requested seller financing.

(iii) A breakdown of the type of assets sold, according to

the categories listed in subclauses (I) through (VIII) of

subparagraph (B)(vii).

(iv) Projections of the total amount of seller financing

which will be needed during the succeeding 2 quarters.

(8) Operating plans

(A) In general

Before the beginning of each calendar quarter, the Thrift

Depositor Protection Oversight Board shall submit to the

Committee on Banking, Housing, and Urban Affairs of the Senate

and the Committee on Banking, Finance and Urban Affairs of the

House of Representatives a detailed financial operating plan

covering the remaining quarters of the Corporation's fiscal

year in which that quarter occurs.

(B) Contents

At a minimum, a detailed financial operating plan shall

include -

(i) estimates of the aggregate assets of institutions that

are projected to be resolved in each quarter,

(ii) the estimated aggregate cost of resolutions in each

quarter,

(iii) the estimated aggregate asset sales and principal

collections in each quarter, and

(iv) the Corporation's summary pro forma financial

statement at the end of each quarter.

(9) Reports on severely troubled institutions

The Director of the Office of Thrift Supervision shall deliver

on a quarterly basis to the Thrift Depositor Protection Oversight

Board a list of savings associations for which the Director has

determined grounds exist, or are likely to exist in the current

fiscal year of the Corporation and in the next following fiscal

year of the Corporation, for the appointment of a conservator or

receiver under the Home Owners' Loan Act (12 U.S.C. 1461 et

seq.). The Thrift Depositor Protection Oversight Board shall

report the aggregate number and assets of such savings

associations to Congress within 60 days after June 30 and

December 31 of each calendar year.

(10) Budget reports

(A) In general

Before the end of each calendar quarter, the Thrift Depositor

Protection Oversight Board and the Corporation shall submit a

report to the Committee on Banking, Finance and Urban Affairs

of the House of Representatives and the Committee on Banking,

Housing, and Urban Affairs of the Senate containing the

complete annual budget, as approved by the Thrift Depositor

Protection Oversight Board.

(B) Activities relating to phasing out RTC operations

Beginning with the report due in the 1st quarter of 1994, the

report shall include information on the Corporation's

activities to phase down its operations and reduce the number

of employees and the amount of office space and other overhead

as the Corporation completes its duties under this section and

approaches termination.

(11) Employee reports

The Corporation shall submit semiannual reports to the

Committee on Banking, Finance and Urban Affairs of the House of

Representatives and the Committee on Banking, Housing, and Urban

Affairs of the Senate containing the following information:

(A) The total number of employees of the Thrift Depositor

Protection Oversight Board and the total number of individuals

performing services directly on behalf of the Corporation.

(B) The total number of individuals performing services for

the Corporation as employees of the Federal Deposit Insurance

Corporation or any other agency, including the General

Accounting Office and the number from each such agency.

classification and employment status, including employment on a

temporary basis or for an agreed upon period of time.

(l) Power to remove; jurisdiction

(1) In general

Notwithstanding any other provision of law, any civil action,

suit, or proceeding to which the Corporation is a party shall be

deemed to arise under the laws of the United States, and the

United States district courts shall have original jurisdiction

over such action, suit, or proceeding.

(2) Corporation as party

The Corporation shall be substituted as a party in any civil

action, suit, or proceeding to which its predecessor in interest

was a party with respect to institutions which are subject to the

management agreement dated February 7, 1989, among the Federal

Savings and Loan Insurance Corporation, the Federal Home Loan

Bank Board and the Federal Deposit Insurance Corporation.

(3) Removal and remand

(A) In general

The Corporation, in any capacity and without bond or

security, may remove any action, suit, or proceeding from a

State court to the United States district court with

jurisdiction over the place where the action, suit, or

proceeding is pending, to the United States district court

(FOOTNOTE 31) for the District of Columbia, or to the United

States district court with jurisdiction over the principal

place of business of any institution for which the Corporation

has been appointed conservator or receiver if the action, suit,

or proceeding is brought against the institution or the

Corporation as conservator or receiver of such institution.

The removal of any such suit or proceeding shall be instituted

(FOOTNOTE 31) So in original. Probably should be ''District

Court''.

(i) not later than 90 days after the date the Corporation

is substituted as a party, or

(ii) not later than 30 days after service on the

Corporation, if the Corporation is named as a party in any

capacity and if such suit is filed after August 9, 1989.

(B) Substitution

The Corporation shall be deemed substituted in any action,

suit, or proceeding for a party upon the filing of a copy of

the order appointing the Corporation as conservator or receiver

for that party or the filing of such other pleading informing

the court that the Corporation has been appointed conservator

or receiver for such party.

The Corporation may appeal any order of remand entered by a

United States district court.

(m) Termination

(1) In general

The Corporation shall terminate not later than December 31,

1995. If at the time of its termination, the Corporation is

acting as a conservator or receiver, the Federal Deposit

Insurance Corporation shall succeed the Corporation as

conservator or receiver.

(2) Case resolutions transferred

Simultaneous with the termination of the Corporation as

provided in paragraph (1), all assets and liabilities of the

Corporation shall be transferred to the FSLIC Resolution Fund.

Thereafter, if there are no liabilities of the Corporation

outstanding, the FSLIC Resolution Fund shall transfer any net

proceeds from the sale of assets to the Resolution Funding

Corporation.

(3) Transfer of personnel and systems

In connection with the assumption by the Federal Deposit

Insurance Corporation of conservatorship and receivership

functions with respect to institutions described in subsection

(b)(3)(A) of this section and the termination of the Corporation

pursuant to paragraph (1) -

(A) any management, resolution, or asset-disposition system

of the Corporation which the Secretary of the Treasury

determines, after considering the recommendations of the

interagency transition task force under section 6(c) of the

Resolution Trust Corporation Completion Act, has been of

benefit to the operations of the Corporation (including any

personal property of the Corporation which is used in operating

any such system) shall, notwithstanding paragraph (2), be

transferred to and used by the Federal Deposit Insurance

Corporation in a manner which preserves the integrity of the

system for so long as such system is efficient and

cost-effective; and

(B) any personnel of the Corporation involved with any such

system who are otherwise eligible to be transferred to the

Federal Deposit Insurance Corporation shall be transferred to

the Federal Deposit Insurance Corporation for continued

employment, subject to section 404(9) of the Financial

Institutions Reform, Recovery, and Enforcement Act of 1989 and

other applicable provisions of this section, with respect to

such system.

(n) Conflict of interest

(1) In general

(A) The Thrift Depositor Protection Oversight Board and the

Corporation shall each be an ''agency'' for purposes of title 18.

Any individual who, pursuant to a contract or any other

arrangement, performs functions or activities of the Thrift

Depositor Protection Oversight Board or the Corporation, under

the direct supervision of an officer or employee of the Thrift

Depositor Protection Oversight Board or the Corporation, shall be

deemed to be an employee of the Thrift Depositor Protection

Oversight Board or the Corporation for the purposes of title 18

and this chapter.

(B) Any individual who, pursuant to a contract or any other

agreement, acts for or on behalf of the Corporation shall be

deemed to be a public official for the purposes of section 201 of

title 18.

(2) Establishment of rules

The Thrift Depositor Protection Oversight Board and the

Corporation shall, not later than 180 days after August 9, 1989,

promulgate rules and regulations governing conflict of interest,

ethical responsibilities, and post-employment restrictions

applicable to members, officers, and employees of the Thrift

Depositor Protection Oversight Board and the Corporation that

shall be no less stringent than those applicable to the Federal

Deposit Insurance Corporation.

(3) Use of confidential information

The Thrift Depositor Protection Oversight Board and the

Corporation shall, not later than 180 days after August 9, 1989,

promulgate rules and regulations applicable to independent

contractors governing conflicts of interest, ethical

responsibilities, and the use of confidential information

consistent with the goals and purposes of titles 18 and 41.

(4) Post employment

The chief executive officer of the Corporation shall be

prohibited for a period of 1 year after leaving the Corporation

from holding any office, position, or employment with, or

receiving remuneration from, a company (other than the

Corporation) which, during the time the chief executive was

employed by the Corporation, participated in any case resolution

or contract with the Corporation for which such person was either

responsible or in which such person was personally and

substantially involved except that the chief executive officer

may hold any office, position, or employment so long as the chief

executive officer does not, during the 1-year period, provide

advice with respect to, participate in decisions relating to, or

otherwise provide assistance to such entity on the enumerated

matters or receive remuneration with respect thereto from such

company.

(5) Other agency employees

Officers and employees of the Thrift Depositor Protection

Oversight Board and the Corporation who are also subject to the

ethical rules of another agency or Government Corporation

(FOOTNOTE 41) shall file with the Corporation a copy of any

financial disclosure statement required by such other agency or

corporation.

(FOOTNOTE 41) So in original. Probably should not be

capitalized.

(6) Disapproval of contractors

(A) In general

The Thrift Depositor Protection Oversight Board shall

prescribe regulations establishing procedures for ensuring that

any individual who is performing, directly or indirectly, any

function or service on behalf of the Corporation meets minimum

standards of competence, experience, integrity, and fitness.

(B) Prohibition from service on behalf of Corporation

The procedures established under subparagraph (A) shall

provide that the Corporation shall prohibit any person who does

not meet the minimum standards of competence, experience,

integrity, and fitness from -

(i) entering into any contract with the Corporation; or

(ii) being employed by the Corporation or any person

performing any service for or on behalf of the Corporation.

The procedures established under subparagraph (A) shall

require that any offer submitted to the Corporation by any

person under this section and any employment application

submitted to the Corporation by any person shall include -

(i) a list and description of any instance during the

preceding 5 years in which the person or company under such

person's control defaulted on a material obligation to an

insured depository institution; and

(ii) such other information as the Board may prescribe by

regulation.

(D) Subsequent submissions

No offer submitted to the Corporation may be accepted unless

the offeror agrees that no person will be employed, directly or

indirectly, by the offeror under any contract with the

Corporation unless all applicable information described in

subparagraph (C) with respect to any such person is submitted

to the Corporation and the Corporation does not disapprove of

the direct or indirect employment of such person. Any decision

made by the Corporation pursuant to this paragraph shall be in

its sole discretion and shall not be subject to review.

(E) Prohibition required in certain cases

The standards established under subparagraph (A) shall

require the Corporation to prohibit any person who has -

(i) been convicted of any felony,

(ii) been removed from, or prohibited from participating in

the affairs of, any insured depository institution pursuant

to any final enforcement action by any appropriate Federal

banking agency,

(iii) demonstrated a pattern or practice of defalcation

regarding obligations to insure depository institutions, or

(iv) caused a substantial loss to Federal deposit insurance

funds,

from service on behalf of the Corporation.

(7) Abrogation of contracts

The Thrift Depositor Protection Oversight Board or the

Corporation may rescind any contract with a person who -

(A) fails to disclose a material fact to the Thrift Depositor

Protection Oversight Board or the Corporation,

(B) would be prohibited under paragraph (6) from providing

services to, receiving fees from, or contracting with the

Corporation or the Thrift Depositor Protection Oversight Board,

Federal bank regulatory agency.

(8) Priority of Thrift Depositor Protection Oversight Board rules

To the extent that the rules established under this subsection

conflict with rules of other agencies or Government corporations,

officers, directors, employees, and independent contractors of

the Corporation or the Thrift Depositor Protection Oversight

Board, who are also subject to the conflict of interest or

ethical rules of another agency or Government corporation, shall

be governed by the rules and regulations established by the

Thrift Depositor Protection Oversight Board under this subsection

when acting for or on behalf of the Corporation.

(9) Definitions

For the purposes of this subsection -

(A) The term ''company'' has the same meaning as in section

1841(b) of this title.

(B) The term ''control'' has the same meaning given such term

under regulations promulgated by the Federal Home Loan Bank

Board with respect to savings and loan holding companies as in

effect on the day before August 9, 1989.

Corporation, the national advisory board, and the regional

advisory boards.

(o) Status of employees

(1) Liability

A member, officer, or employee of the Corporation or of the

Thrift Depositor Protection Oversight Board has no liability

under the Securities Act of 1933 (15 U.S.C. 77a et seq.) with

respect to any claim arising out of or resulting from any act or

omission by such person within the scope of such person's

employment in connection with any transaction involving the

disposition of assets (or any interests in any assets or any

obligations backed by any assets) by the Corporation. This

subsection shall not be construed to limit personal liability for

criminal acts or omissions, willful or malicious misconduct, acts

or omissions for private gain, or any other acts or omissions

outside the scope of such person's employment.

(2) Definition

For purposes of this subsection, the term ''employee of the

Corporation or of the Thrift Depositor Protection Oversight

Board'' includes any officer or employee of the Federal Deposit

Insurance Corporation who performs services for the Corporation.

(3) Effect on other law

This subsection does not affect -

(A) any other immunities and protections that may be

available under applicable law with respect to such

transactions, or

(B) any other right or remedy against the Corporation,

against the United States under applicable law, or against any

person other than a person described in paragraph (1)

participating in such transactions.

This subsection shall not be construed to limit or alter in any

way the immunities that are available under applicable law for

Federal officials and employees not described in this subsection.

(p) Management enhancement goals

(1) Action to achieve specific goals

The Corporation, upon March 23, 1991, shall take action to

assure achievement of the management goals specified in this

paragraph, as follows:

(A) Managing conservatorships

The Corporation shall standardize procedures with respect to

its (i) auditing of conservatorships, (ii) ensuring and

monitoring of compliance with Corporation policies and

procedures by conservatorship managing agents, and (iii)

ensuring and monitoring of conservatorship managing agent

performance. These procedures shall be developed and

implemented not later than September 30, 1991.

(B) Pace of resolutions

The Corporation shall take all reasonable and necessary steps

to reduce the length of time institutions remain in

conservatorship, with the goal that no institution shall be in

conservatorship for more than 9 months.

The Corporation shall develop and incorporate within its

strategic plan for information resources management, (i) a

translation of program goals into the communication and

computer hardware and software, and staff needed to accomplish

such goals, (ii) a systems architecture to ensure that all

systems will work together, and (iii) an identification of

Corporation information and systems needs at all operational

levels.

(D) Securities portfolio management system

The Corporation shall develop within its information

architecture framework, a centralized system for the management

of its portfolio of securities. This system shall be developed

and implemented not later than September 30, 1991.

(E) Tracking REO assets

The Corporation shall develop, within its information

architecture, an effective system to track and inventory

real-estate-owned assets. This system shall be developed and

implemented not later than September 30, 1991.

(F) Asset valuation

The Corporation shall develop a process for the quarterly

valuation or updating of valuations of the assets it holds in

its capacity as receiver (or as a result of such capacity).

Such process shall incorporate, to the extent practical,

Corporation disposition experience. In addition, the necessary

information systems shall be developed to track and manage

these valuations.

(G) Standardization of due diligence and market format

The Corporation shall develop a program for performing due

diligence on one- to four-family mortgages and for marketing

such loans on a pooled basis.

(H) Contracting

The Corporation, in order to identify the need for any

changes in its contracting process which would enhance the

independence, integrity, consistency and effectiveness of that

process, shall consult on a regular basis with other agencies

and organizations that have large scale contracting and

procurement systems, and shall review on a regular basis its

organizational structure and relationships. The Corporation

shall develop and have in widespread use the following:

(i) A manual setting forth comprehensive policies and

procedures.

(ii) A revised and expanded directive that clearly and

definitively describes the roles and responsibilities of all

those involved in the contracting process.

(iii) A revised and expanded directive that sets forth in

detail the standard procedures to be followed in evaluating

contractor proposals.

(iv) A set of standardized solicitation and contract

documents for use by all Corporation officers.

(v) A series of standardized contracting training modules

for use by Corporation personnel and private contractors.

(2) Report

The Corporation shall, not later than September 30, 1991, file

with the Committee on Banking, Housing, and Urban Affairs of the

Senate, and the Committee on Banking, Finance and Urban Affairs

of the House of Representatives, a report on the progress being

made toward full compliance by the agency with this subsection,

as well as a timetable for completing those items not yet

completed.

(q) RTC, Thrift Depositor Protection Oversight Board, and RTC

contractor employee protection remedy

(1) Prohibition against discrimination

The Corporation, the Thrift Depositor Protection Oversight

Board, and any person who is performing, directly or indirectly,

any function or service on behalf of the Corporation or the

Thrift Depositor Protection Oversight Board may not discharge or

otherwise discriminate against any employee (including any

employee of the Federal Deposit Insurance Corporation on

assignment to the Corporation under this section or any personnel

referred to in subparagraphs (C) and (F) of subsection (a)(5) of

this section) with respect to compensation, terms, conditions, or

privileges of employment because the employee (or any person

acting pursuant to the request of the employee) provided

information to the Corporation, the Thrift Depositor Protection

Oversight Board, the Attorney General, or any appropriate Federal

banking agency (as defined in section 1813q of this title)

regarding -

(A) a possible violation of any law or regulation; or

(B) gross mismanagement, a gross waste of funds, an abuse of

authority, or a substantial and specific danger to public

health or safety;

by the Corporation, the Thrift Depositor Protection Oversight

Board, or such person or any director, officer, or employee of

the Corporation, the Thrift Depositor Protection Oversight Board,

or the person.

(2) Enforcement

Any employee or former employee who believes that such employee

has been discharged or discriminated against in violation of

paragraph (1) may file a civil action in the appropriate United

States district court before the end of the 2-year period

beginning on the date of such discharge or discrimination.

(3) Remedies

If the district court determines that a violation has occurred,

the court may order the Corporation or the person which committed

the violation to -

(A) reinstate the employee to the employee's former position;

(B) pay compensatory damages; or

discrimination.

(4) Limitation

The protections of this section shall not apply to any employee

who -

(A) deliberately causes or participates in the alleged

violation of law or regulation; or

(B) knowingly or recklessly provides substantially false

information to the Corporation, the Attorney General, or any

appropriate Federal banking agency.

(5) Burdens of proof

The legal burdens of proof that prevail under subchapter III of

chapter 12 of title 5 shall govern adjudication of protected

activities under this subsection.

(r) Review and evaluation procedure for contracts

(1) In general

In the review and evaluation of proposals, the Corporation

shall provide additional incentives to minority- or women-owned

businesses by awarding any such business an additional 10 percent

of the total technical points and an additional 5 percent of the

total cost preference points achievable in the technical and cost

rating process applicable with respect to such proposals.

(2) Certain joint ventures included

Paragraph (1) shall apply to any proposal submitted by a joint

venture in which a minority- or woman-owned business has

participation of not less than 25 percent.

(3) Authority to adjust technical and cost preference points

The Corporation may adjust the technical and cost preference

points applicable in evaluating proposals to the extent necessary

to ensure the maximum participation level possible for minority-

or women-owned businesses.

(4) Definitions

For purposes of this subsection, the following definitions

shall apply:

(A) Minority-owned business

The term ''minority-owned business'' means a business -

(i) more than 50 percent of the ownership or control of

which is held by 1 or more minority individuals; and

(ii) more than 50 percent of the net profit or loss of

which accrues to 1 or more minority individuals.

(B) Women-owned business

The term ''women's business'' means a business -

(i) more than 50 percent of the ownership or control of

which is held by 1 or more women;

(ii) more than 50 percent of the net profit or loss of

which accrues to 1 or more women; and

(iii) a significant percentage of senior management

positions of which are held by women.

(s) Acquisition of branch facilities in minority neighborhoods

(1) In general

In the case of any savings association for which the

Corporation has been appointed conservator or receiver, the

Corporation may make available any branch of such association

which is located in any predominantly minority neighborhood to

any minority depository institution or women's depository

institution on the following terms:

(A) The branch may be made available on a rent-free lease

basis for not less than 5 years.

(B) Of all expenses incurred in maintaining the operation of

the facilities in which such branch is located, the institution

shall be liable only for the payment of applicable real

property taxes, real property insurance, and utilities.

during the term of the lease.

(2) Definitions

For purposes of this subsection, the following definitions

shall apply:

(A) Minority depository institution

The term ''minority (FOOTNOTE 51) institution'' means a

depository institution (as defined in section 1813(c) of this

title) -

(FOOTNOTE 51) So in original. Probably should be followed by

''depository''.

(i) more than 50 percent of the ownership or control of

which is held by 1 or more minority individuals; and

(ii) more than 50 percent of the net profit or loss of

which accrues to 1 or more minority individuals.

(B) Women's depository institution

The term ''women's depository institution'' means a

depository institution (as defined in section 1813(c) of this

title) -

(i) more than 50 percent of the ownership or control of

which is held by 1 or more women;

(ii) more than 50 percent of the net profit or loss of

which accrues to 1 or more women; and

(iii) a significant percentage of senior management

positions of which are held by women.

The term ''minority'' has the meaning given to such term by

section 1204(c)(3) of the Financial Institutions Reform,

Recovery (FOOTNOTE 61) and Enforcement Act of 1989.

(FOOTNOTE 61) So in original. Probably should be followed by a

comma.

(t) Assistance under circumstances for acquisition of

majority-owned institutions

(1) In general

In addition to the assistance provided pursuant to the the

(FOOTNOTE 71) minority capital assistance program established

under subsection (u)(1) of this section, the Corporation may

provide assistance for minority-owned depository institutions and

minority investors for the acquisition of any savings association

for which the Corporation has been appointed conservator or

receiver and which, before such appointment, was not a

minority-owned association, if the Corporation has not received

acceptable bids for the acquisition of such association without

offering such assistance.

(FOOTNOTE 71) So in original.

(2) Additional assets

In connection with the acquisition of any savings association

for which the Corporation provides assistance under paragraph

(1), the Corporation may transfer assets of other savings

associations for which the Corporation has been appointed

conservator or receiver.

(3) Definitions

For purposes of this subsection -

(A) Minority

The term ''minority'' has the meaning given to such term by

section 1204(c)(3) of the Financial Institutions Reform,

Recovery (FOOTNOTE 61) and Enforcement Act of 1989.

(B) Acquisition

The term ''acquisition'' means any transaction in which a

savings association is acquired (as defined in section

1823(f)(8)(B) of this title).

(u) Minority interim capital assistance program

(1) In general

The minority interim capital assistance program administered by

the Corporation pursuant to the policy statement entitled the

''Interim Statement of Policy Regarding Resolutions of

Minority-Owned Depository Institutions'' adopted by the

Corporation on January 30, 1990 (FOOTNOTE 61) is hereby

established by law.

(2) Assistance under circumstances for acquisition of

majority-owned institutions

In addition to the assistance provided pursuant to the program

established under paragraph (1), the Corporation shall provide

assistance under such program for minority-owned depository

institutions and minority investors for the acquisition of any

savings association for which the Corporation has been appointed

conservator or receiver and which, before such appointment, was

not a minority-owned association, if the Corporation has not

received acceptable bids for the acquisition of such association

without offering such assistance.

(3) Extension of interim financing period

The period for repayment of capital assistance provided under

the minority interim capital assistance program shall be not less

than 2 years.

(4) Interest rate

The rate of interest imposed by the Corporation in connection

with any interim financing provided under the minority interim

capital assistance program may not exceed the average cost of

funds to the Corporation as of the time such rate is established.

(5) Definitions

For purposes of this subsection, the following definitions

shall apply:

(A) Minority

The term ''minority'' has the meaning given to such term by

section 1204(c)(3) of the Financial Institutions Reform,

Recovery (FOOTNOTE 81) and Enforcement Act of 1989.

(FOOTNOTE 81) So in original. Probably should be followed by a

comma.

(B) Acquisition

The term ''acquisition'' means any transaction in which a

savings association is acquired (as defined in section

1823(f)(8)(B) of this title).

(v) Continuation of obligation to provide services

No person obligated to provide services to an insured depository

institution at the time the Resolution Trust Corporation is

appointed conservator or receiver for the institution shall fail to

provide those services to any person to whom the right to receive

those services was transferred by the Resolution Trust Corporation

after August 9, 1989, unless the refusal is based on the

transferee's failure to comply with any material term or condition

of the original obligation. This subsection does not limit any

authority of the Resolution Trust Corporation as conservator or

receiver under section 1821(e) of this title.

(w) RTC management reforms

(1) Comprehensive business plan

The Corporation shall establish and maintain a comprehensive

business plan covering the operations of the Corporation,

including the disposition of assets, for the remainder of the

Corporation's existence.

(2) Marketing real property on an individual basis

The Corporation shall -

(A) market any undivided or controlling interest in real

property, whether held directly or indirectly by an institution

described in subsection (b)(3)(A) of this section, on an

individual basis, including sales by auction, for no fewer than

120 days before such assets may be made available for sale or

other disposition on a portfolio basis or otherwise included in

a multiasset sales initiative, except that this subparagraph

does not apply to assets that are -

(i) sold simultaneously with a resolution in which a buyer

purchases a significant proportion of the assets and assumes

a significant proportion of the liabilities, or acts as agent

of the Corporation for purposes of paying insured deposits,

of an institution described in subsection (b)(3)(A) of this

section; or

(ii) transferred to a new institution organized pursuant to

section 1821(d)(2)(F) of this title; and

(B) prescribe regulations -

(i) to require that the sale or other disposition of any

asset consisting of real property on a portfolio basis or in

connection with any multiasset sales initiative after the end

of the 120-day period described in subparagraph (A) be

justified in writing; and

(ii) to carry out the requirements of subparagraph (A).

(3) Disposition of real estate related assets

(A) Procedures for disposition of real estate related assets

The Corporation shall not sell real property or any

nonperforming real estate loan which the Corporation has

acquired as receiver or conservator, unless -

(i) the Corporation has assigned responsibility for the

management and disposition of such asset to a qualified

person or entity to -

(I) analyze each asset on an asset-by-asset basis and

consider alternative disposition strategies for such asset;

(II) develop a written management and disposition plan;

and

(III) implement that plan for a reasonable period of

time; or

(ii) the Corporation has made a determination in writing

that a bulk transaction would maximize net recovery to the

Corporation, while providing opportunity for broad

participation by qualified bidders, including minority- and

women-owned businesses.

(B) Definitions

In defining any term for purposes of subparagraph (A), the

Corporation may, by regulation, define -

(i) the term ''asset'' so as to include properties or loans

which are legally separate and distinct properties or loans,

but which have sufficiently common characteristics such that

they may be logically treated as a single asset; and

(ii) the term ''qualified person or entity'' so as to

include any employee of the Thrift Depositor Protection

Oversight Board or any employee assigned to the Corporation

under subsection (b)(8) of this section.

This paragraph shall not apply to -

(i) assets that are -

(I) sold simultaneously with a resolution in which a

buyer purchases a significant proportion of the assets and

assumes a significant proportion of the liabilities (or

acts as agent of the Corporation for purposes of paying

insured deposits) of an institution described in subsection

(b)(3)(A) of this section; or

(II) transferred to a new institution organized pursuant

to section 1821(d)(2)(F) of this title;

(ii) nonperforming real estate loans with a book value of

not more than $1,000,000;

(iii) real property with a book value of not more than

$400,000; or

(iv) real property with a book value of more than $400,000

or nonperforming real estate loans with a book value of more

than $1,000,000 for which the Corporation determines, in

writing, that a disposition not in conformity with the

requirements of subparagraph (A) will bring a greater return

to the Corporation.

(D) Coordination with paragraph (2)

No provision of this paragraph shall supersede the

requirements of paragraph (2).

(4) Division of minorities and women programs

(A) In general

The Corporation shall maintain a division of minorities and

women programs.

(B) Vice president

The head of the division shall be a vice president of the

Corporation and a member of the executive committee of the

Corporation.

(5) Chief financial officer

(A) In general

The chief executive officer of the Corporation shall appoint

a chief financial officer for the Corporation.

(B) Authority

The chief financial officer of the Corporation shall -

(i) have no operating responsibilities with respect to the

Corporation other than as chief financial officer;

(ii) report directly to the chief executive officer of the

Corporation; and

(iii) have such authority and duties of chief financial

officers of agencies under section 902 of title 31 as the

Thrift Depositor Protection Oversight Board determines to be

appropriate with respect to the Corporation.

(6) Basic ordering agreements

(A) Revision of procedures

The Corporation shall revise the procedure for reviewing and

qualifying applicants for eligibility for future contracts in a

specified service area (commonly referred to as ''basic

ordering agreements'' or ''task ordering agreements'') in such

manner as may be necessary to ensure that small businesses,

minorities, and women are not inadvertently excluded from

eligibility for such contracts.

(B) Review of lists

To ensure the maximum participation level possible of

minority- and women-owned businesses, the Corporation shall -

(i) review all lists of contractors determined to be

eligible for future contracts in a specified service area and

other contracting mechanisms; and

(ii) prescribe appropriate regulations and procedures.

(7) Improvement of contracting systems and contractor oversight

The Corporation shall -

(A) maintain such procedures and uniform standards for -

(i) entering into contracts between the Corporation and

private contractors; and

(ii) overseeing the performance of contractors and

subcontractors under such contracts and compliance by

contractors and subcontractors with the terms of contracts

and applicable regulations, orders, policies, and guidelines

of the Corporation,

as may be appropriate in carrying out the Corporation's

operations in as efficient and economical a manner as may be

practicable;

(B) commit sufficient resources, including personnel, to

contract oversight and the enforcement of all laws,

regulations, orders, policies, and standards applicable to

contrac

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Idioma:	inglés
País:	Estados Unidos

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Codificación normativa de EEUU (Estados Unidos)Legislación federal estadounidense # Banks and banking

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