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Proponents of the Federal Home Loan Bank Act argue that homeownership was essential to the economic recovery of the country during the Great Depression—and, given the crisis in the banking industry, that a strong federal stimulus was necessary. They also contend that the system it created adds stability to the housing and lending market and continues to result in stronger local communities and higher overall quality of living. The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any voluntary merger described in paragraph , including the procedures for Bank member approval. 2008—Pub.
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. 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. Fully disbursed, whole first mortgages on improved residential property , or securities representing a whole interest in such mortgages. 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 of this title. 522, §8a, as added May 28, 1935, ch. 150, §4, 49 Stat.
U.S.C. Title 12 – BANKS AND BANKING – Govinfo.gov
Commission rules relating to tender offers shall not apply in connection with transactions in the capital stock of the Federal Home Loan Banks. Government securities, within the meaning of section 80a–2 of title 15. Exempted securities, within the meaning of section 78c of title 15, except to the extent provided in section 78oo of title 15.
To reflect the probable intent of Congress. 110–289, §1204, substituted "Director" for "Federal Housing Finance Board" wherever appearing in subsecs. Section 1725 of this title, referred to in subsecs.
§1433. Exemption from taxation; obligations acceptable as credit on debt of home owner
The FHLBanks are self-capitalizing in that as members seek to increase their borrowing, they must first purchase additional stock to support the activity. FHLBanks are exempt from corporate federal, state, and local taxation, except for local real estate tax. The capital investments in FHLBanks receive preferential risk-weighting exemption treatment from the Basel II rules (which would normally require non-traded equity investments to be risk-weighted at 400%, but the exemption allows only 100%). The FHLBanks pay an assessment of 10% of annual earnings for affordable housing programs.
1974—Pub. 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. 1970—Subsec. 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. Section 2184 of title 22, referred to in subsec.
Federal Home Loan Bank Act – Academic Dictionaries and …
In establishing the goals required by subsection , the Director shall consider the unique mission and ownership structure of the Federal Home Loan Banks. Section, act July 22, 1932, ch. 522, §10a, as added June 27, 1934, ch.
Custodian fees (as such term is defined in subsection ). The aggregate amount the Director required all Federal Home Loan Banks to invest under such paragraphs. 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 . Each member appointed under paragraph shall be appointed for a term of 1 year. The Securities Exchange Act of 1934, referred to in subsecs. And , is act June 6, 1934, ch.
By inserting, in par. And redesignating par. As , was repealed by Pub.
To issue debentures, bonds, or other obligations, and to borrow, to give security for any amount borrowed, and to pay interest on any such obligation or amount. The Directorate may, with the approval of the Director authorize the officers, employees, or agents of the Federal Home Loan Banks to act for and on behalf of the Funding Corporation in such manner as may be necessary to carry out the functions of the Funding Corporation. There is established a corporation to be known as the Resolution Funding Corporation. Section was enacted as part of the Coastal Barrier Improvement Act of 1990, and not as part of the Federal Home Loan Bank Act which comprises this chapter.
These member institutions can then, in turn, offer better rates and grants to their customers. The Financial Institutions Reform, Recovery, and Enforcement Act revamped regulations for savings and loans and real estate appraisals in 1989. No The FHLB System's banks loan to other lending institutions, primarily to support real estate loans.
The terms "member director" and "member directorship" mean a member of the board of directors of a Federal Home Loan Bank who is an officer or director of a member institution that is located in the district in which the Federal Home Loan Bank is located, or the directorship held by such a person, respectively. No independent director may, during the term of service on the board of directors, serve as an officer of any Federal Home Loan Bank or as a director, officer, or employee of any member of a Bank, or of any person that receives advances from a Bank. Not fewer than 2 of the independent directors shall have more than 4 years of experience in representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections. The board of directors of a Federal home loan bank shall submit to the Director for approval any modifications that the bank proposes to make to an approved capital structure plan.
Their numbers began to dwindle in the 1980s and ’90s, after the savings and loan crisis. In the 21st century, commercial banks—which were allowed to join the system in 1989—and insurance companies have come to comprise most of the FHLB membership. The FHLBs were authorized to make those funds available to retail banking institutions, such as savings banks, cooperative banks, insurance companies, building and loan associations, and community development organizations. The act authorized any eligible institution to become a member of an FHLBank. Amendment by Pub.
Before the end of the 2-year period beginning on August 9, 1989, the Director shall adopt regulations establishing standards of community investment or service for members of Banks to maintain continued access to long-term advances. 106–102, §606, inserted heading, designated existing provisions as par. 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. 101–73, §§701, , 706, redesignated subsec. As , substituted "Board" for "board", and struck out former subsec. Which related to minimum amount of capital stock and subscription books.
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. If any such examination shall indicate, in the opinion of the Director, 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 Director 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.
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