§ 1430c TITLE 12—BANKS AND BANKING Page 300

1992, 106 Stat. 4009; Pub. L. 110–289, div. A, title scribed by the Director, to borrow and give secu-
II, § 1204(8), July 30, 2008, 122 Stat. 2786.) rity therefor and to pay interest thereon, to
issue debentures, bonds, or other obligations
Editorial Notes upon such terms and conditions as the Director
REFERENCES IN TEXT may approve, and to do all things necessary for
carrying out the provisions of this chapter and
The National Housing Act, referred to in text, is act all things incident thereto.
June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title II
of the Act is classified generally to subchapter II (§ 1707 (b) Issuance of consolidated Federal Home Loan
et seq.) of chapter 13 of this title. For complete classi- Bank debentures; restrictions
fication of this Act to the Code, see section 1701 of this The Office of Finance, as agent for the Banks,
title and Tables. may issue consolidated Federal Home Loan
AMENDMENTS Bank debentures which shall be the joint and
several obligations of all Federal Home Loan
2008—Subsec. (a). Pub. L. 110–289 substituted ‘‘the Di-
rector’’ for ‘‘the Board’’.
Banks organized and existing under this chap-
1992—Pub. L. 102–550 designated existing provisions as ter, in order to provide funds for any such bank
subsec. (a), inserted heading, and added subsec. (b). or banks, and such debentures shall be issued
1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘Federal upon such terms and conditions as such Office
Home Loan Bank Board’’. may prescribe. No such debentures shall be
issued at any time if any of the assets of any
§ 1430c. Housing goals Federal Home Loan Bank are pledged to secure
(a) In general any debts or subject to any lien, and neither the
Office of Finance nor any Federal Home Loan
The Director shall establish housing goals
Bank shall have power to pledge any of the as-
with respect to the purchase of mortgages, if
sets of any Federal Home Loan Bank, or volun-
any, by the Federal Home Loan Banks. Such
tarily to permit any lien to attach to the same
goals shall be consistent with the goals estab-
while any of such debentures so issued are out-
lished under sections 4561 through 4564 of this
standing. The debentures issued under this sec-
title.
tion and outstanding shall at no time exceed
(b) Considerations five times the total paid-in capital of all the
In establishing the goals required by sub- Federal Home Loan Banks as of the time of the
section (a), the Director shall consider the issue of such debentures. It shall be the duty of
unique mission and ownership structure of the the Office of Finance not to issue debentures
Federal Home Loan Banks. under this section in excess of the notes or obli-
(c) Transition period gations of member institutions held and secured
under section 1430(a) of this title by all the Fed-
To facilitate an orderly transition, the Direc- eral Home Loan Banks.
tor shall establish interim target goals for pur-
(c) Issuance of Federal Home Loan Bank bonds
poses of this section for each of the 2 calendar
years following July 30, 2008. At any time that no debentures are out-
standing under this chapter, or in order to re-
(d) Monitoring and enforcement of goals
fund all outstanding consolidated debentures
The requirements of section 4566 1 of this title, issued under this section, the Office of Finance,
shall apply to this section, in the same manner as agent for the Banks, may issue consolidated
and to the same extent as that section applies to Federal Home Loan Bank bonds which shall be
the Federal housing enterprises. the joint and several obligations of all the Fed-
(e) Annual report eral Home Loan Banks, and shall be secured and
The Director shall annually report to Congress be issued upon such terms and conditions as
on the performance of the Banks in meeting the such Office may prescribe.
goals established under this section. (d) Additional or substituted collateral on adjust-
ment of equities
(July 22, 1932, ch. 522, § 10C, as added Pub. L.
The Director shall have full power to require
110–289, div. A, title II, § 1205, July 30, 2008, 122
any Federal Home Loan Bank to deposit addi-
Stat. 2786.)
tional collateral or to make substitutions of col-
Editorial Notes
lateral or to adjust equities between the Federal
Home Loan Banks.
REFERENCES IN TEXT (e) Acceptance of deposits; restrictions on trans-
Section 4566 of this title, referred to in subsec. (d), action of banking business; collection and
was in the original ‘‘section 1336 of the Federal Housing settlement of checks, drafts, etc.; charges;
Enterprises Safety and Soundness Act of 1992’’, which rules and regulations
was translated as meaning section 1336 of the Federal
Housing Enterprises Financial Safety and Soundness (1) Each Federal Home Loan Bank shall have
Act of 1992, to reflect the probable intent of Congress. power to accept deposits made by members of
such bank or by any other Federal Home Loan
§ 1431. Powers and duties of banks Bank or other instrumentality of the United
(a) Borrowing money; issuing bonds and deben- States, upon such terms and conditions as the
tures; general powers Director may prescribe, but no Federal Home
Loan Bank shall transact any banking or other
Each Federal Home Loan Bank shall have business not incidental to activities authorized
power, subject to rules and regulations pre- by this chapter.
(2)(A) The Director may, subject to such rules
1 See References in Text note below. and regulations, including definitions of terms
Page 301 TITLE 12—BANKS AND BANKING § 1431

used in this paragraph, as the Director shall which may be made without the security of
from time to time prescribe, authorize Federal home mortgages or other security, upon such
Home Loan Banks to be drawees of, and to en- terms and conditions as the Director may pre-
gage in, or be agents or intermediaries for, or scribe.
otherwise participate or assist in, the collection (h) Investment of surplus funds
and settlement of (including presentment, clear- Such part of the assets of each Federal Home
ing, and payment of, and remitting for), checks, Loan Bank (except reserves and amounts pro-
drafts, or any other negotiable or nonnegotiable vided for in subsection (g)) as are not required
items or instruments of payment drawn on or for advances to members, may be invested, to
issued by members of any Federal Home Loan such extent as the bank may deem desirable and
Bank or by institutions which are eligible to subject to such regulations, restrictions, and
make application to become members pursuant limitations as may be prescribed by the Direc-
to section 1424 of this title, and to have such in- tor, in obligations of the United States, in obli-
cidental powers as the Director shall find nec- gations, participations, or other instruments of
essary for the exercise of any such authoriza- or issued by the Federal National Mortgage As-
tion. sociation or the Government National Mortgage
(B) A Federal Home Loan Bank shall make Association, in mortgages, obligations, or other
charges, to be determined and regulated by the securities which are or ever have been sold by
Director consistent with the principles set forth the Federal Home Loan Mortgage Corporation
in section 248a(c) of this title, or utilize the pursuant to section 1454 or section 1455 of this
services of, or act as agent for, or be a member title, in the stock of the Federal National Mort-
of, a Federal Reserve bank, clearinghouse, or gage Association, in stock, obligations, or other
any other public or private financial institution securities of any small business investment
or other agency, in the exercise of any powers or company formed pursuant to section 681 of title
functions pursuant to this paragraph. 15, for the purpose of aiding members of the Fed-
(C) The Director is authorized, with respect to
eral Home Loan Bank System, and in such secu-
participation in the collection and settlement of
rities as fiduciary and trust funds may be in-
any items by Federal Home Loan Banks, and
vested in under the laws of the State in which
with respect to the collection and settlement
the Federal Home Loan Bank is located.
(including payment by the payor institution) of
items payable by Federal savings and loan asso- (i) Treasury purchase of banks’ obligations; exer-
ciations and Federal mutual savings banks, to cise of authority
prescribe rules and regulations regarding the The Secretary of the Treasury is authorized in
rights, powers, responsibilities, duties, and li- his discretion to purchase any obligations issued
abilities, including standards relating thereto, pursuant to this section, as heretofore, now, or
of such Federal Home Loan Banks, associations, hereafter in force and for such purpose the Sec-
or banks and other parties to any such items or retary of the Treasury is authorized to use as a
their collection and settlement. In prescribing public-debt transaction the proceeds of the sale
such rules and regulations, the Director may of any securities hereafter issued under chapter
adopt or apply, in whole or in part, general 31 of title 31, as now or hereafter in force, and
banking usage and practices, and, in instances the purposes for which securities may be issued
or respects in which they would otherwise not be under chapter 31 of title 31, as now or hereafter
applicable, Federal Reserve regulations and op- in force, are extended to include such purchases.
erating letters, the Uniform Commercial Code, The Secretary of the Treasury may, at any time,
and clearinghouse rules. sell, upon such terms and conditions and at such
(f) Rediscount of notes held by other banks; pur- price or prices as he shall determine, any of the
chase of bonds of other banks obligations acquired by him under this sub-
section. All redemptions, purchases, and sales
The Director is authorized and empowered to
by the Secretary of the Treasury of such obliga-
permit or to require Federal Home Loan Banks,
tions under this subsection shall be treated as
upon such terms and conditions as the Director
public-debt transactions of the United States.
may prescribe, to rediscount the discounted
The Secretary of the Treasury shall not at any
notes of members held by other Federal Home
time purchase any obligations under this para-
Loan Banks, or to make loans to, or make de-
graph if such purchase would increase the aggre-
posits with, such other Federal Home Loan
gate principal amount of his then outstanding
Banks, or to purchase any bonds or debentures
holdings of such obligations under this para-
issued under this section.
graph to an amount greater than $4,000,000,000.
(g) Reserves Each purchase of obligations by the Secretary of
Each Federal Home Loan Bank shall at all the Treasury under this subsection shall be upon
times have at least an amount equal to the cur- terms and conditions as shall be determined by
rent deposits received from its members in- the Secretary of the Treasury and shall bear
vested in (1) obligations of the United States, (2) such rate of interest as may be determined by
deposits in banks or trust companies, (3) ad- the Secretary of the Treasury taking into con-
vances with a maturity of not to exceed five sideration the current average market yield for
years which are made to members, upon such the month preceding the month of such purchase
terms and conditions as the Director may pre- on outstanding marketable obligations of the
scribe, and (4) advances with a maturity of not United States.
to exceed five years which are made to members In addition to obligations authorized to be
whose creditor liabilities (not including ad- purchased by the preceding paragraph, the Sec-
vances from the Federal home loan bank) do not retary of the Treasury is authorized to purchase
exceed 5 per centum of their net assets, and any obligations issued pursuant to this section
§ 1431 TITLE 12—BANKS AND BANKING Page 302

in amounts not to exceed $2,000,000,000. The au- permits or authorizes the Secretary, without
thority provided in this paragraph shall expire the agreement of the Federal Home Loan
August 10, 1975. Bank, to engage in open market purchases of
Notwithstanding the foregoing, the authority the common securities of any Federal Home
provided in this subsection may be exercised Loan Bank.
during any calendar quarter beginning after Oc- (B) Emergency determination required
tober 28, 1974, only if the Secretary of the Treas-
In connection with any use of this author-
ury and the Chairperson of the Director 1 certify
ity, the Secretary must determine that such
to the Congress that (1) alternative means can-
actions are necessary to—
not be effectively employed to permit members (i) provide stability to the financial mar-
of the Federal Home Loan Bank System to con- kets;
tinue to supply reasonable amounts of funds to (ii) prevent disruptions in the avail-
the mortgage market, and (2) the ability to sup- ability of mortgage finance; and
ply such funds is substantially impaired because (iii) protect the taxpayer.
of monetary stringency and a high level of inter-
(C) Considerations
est rates. Any funds borrowed under this sub-
section shall be repaid by the Home Loan Banks To protect the taxpayers, the Secretary of
at the earliest practicable date. the Treasury shall take into consideration
(j) Audits the following in connection with exercising
the authority contained in this paragraph:
Notwithstanding the provisions of section (i) The need for preferences or priorities
9105(a)(1)(B) 2 of title 31, audits by the Govern- regarding payments to the Government.
ment Accountability Office of the financial (ii) Limits on maturity or disposition of
transactions of a Federal Home Loan Bank shall obligations or securities to be purchased.
not be limited to periods during which Govern- (iii) The Federal Home Loan Bank’s plan
ment capital has been invested therein. The pro- for the orderly resumption of private mar-
visions of sections 9107(c)(2) and 9108(d)(1) of ket funding or capital market access.
title 31 shall not apply to any Federal Home (iv) The probability of the Federal Home
Loan Bank. Loan Bank fulfilling the terms of any such
(k) Bank loans to the Deposit Insurance Fund obligation or other security, including re-
(1) Loans authorized payment.
(v) The need to maintain the Federal
Subject to paragraph (3), the Federal Home Home Loan Bank’s status as a private
Loan Banks may, upon the request of the Fed- shareholder-owned company.
eral Deposit Insurance Corporation, make (vi) Restrictions on the use of Federal
loans to such Corporation for the use of the Home Loan Bank resources, including lim-
Deposit Insurance Fund. itations on the payment of dividends and
(2) Liability of the Fund executive compensation and any such
Any loan by a Federal Home Loan Bank pur- other terms and conditions as appropriate
suant to paragraph (1) shall be a direct liabil- for those purposes.
ity of the Deposit Insurance Fund. (D) Reports to Congress
(3) Interest on and security for such loans Upon exercise of this authority, the Sec-
Any loan by a Federal Home Loan Bank pur- retary shall report to the Committees on the
suant to paragraph (1) shall— Budget, Financial Services, and Ways and
(A) bear a rate of interest not less than Means of the House of Representatives and
such Bank’s current marginal cost of funds, the Committees on the Budget, Finance, and
taking into account the maturities involved; Banking, Housing, and Urban Affairs of the
and Senate as to the necessity for the purchase
(B) be adequately secured. and the determinations made by the Sec-
retary under subparagraph (B) and with re-
(l) Temporary authority of Treasury to purchase spect to the considerations required under
obligations; conditions subparagraph (C), and the size, terms, and
(1) Authority to purchase probability of repayment or fulfillment of
(A) General authority other terms of such purchase.
In addition to the authority under sub- (2) Rights; sale of obligations and securities
section (i) of this section, the Secretary of (A) Exercise of rights
the Treasury is authorized to purchase any The Secretary of the Treasury may, at any
obligations issued by any Federal Home time, exercise any rights received in connec-
Loan Bank under any section of this chap- tion with such purchases.
ter, on such terms and conditions as the Sec- (B) Sale of obligations
retary may determine and in such amounts
as the Secretary may determine. Nothing in The Secretary of the Treasury may, at any
this subsection requires a Federal Home time, subject to the terms of the security or
Loan Bank to issue obligations or securities otherwise upon terms and conditions and at
to the Secretary without mutual agreement prices determined by the Secretary, sell any
between the Secretary and the Federal obligation acquired by the Secretary under
Home Loan Bank. Nothing in this subsection this subsection.
(C) Deficit reduction
1 So in original. See 2008 Amendment note below. The Secretary of the Treasury shall de-
2 See References in Text note below. posit in the General Fund of the Treasury
Page 303 TITLE 12—BANKS AND BANKING § 1431

any amounts received by the Secretary from Editorial Notes

the sale of any obligation acquired by the REFERENCES IN TEXT
Secretary under this subsection, where such
Section 9105 of title 31, referred to in subsec. (j), was
amounts shall be— amended generally by Pub. L. 101–576, title III, § 305,
(i) dedicated for the sole purpose of def- Nov. 15, 1990, 104 Stat. 2853, and, as so amended, subsec.
icit reduction; and (a) does not contain a par. (1)(B). Prior to the general
(ii) prohibited from use as an offset for amendment, subsec. (a)(1)(B) related to audits of
other spending increases or revenue reduc- mixed-ownership Government corporations during peri-
tions. ods in which capital of the United States Government
was invested therein.
(D) Application of sunset to purchased obli-
gations CODIFICATION
The authority of the Secretary of the In subsecs. (i) (first par.) and (j), ‘‘chapter 31 of title
Treasury to hold, exercise any rights re- 31’’ substituted for ‘‘the Second Liberty Bond Act’’, and
ceived in connection with, or sell, any obli- ‘‘section 9105(a)(1)(B) of title 31’’ and ‘‘sections
9107(c)(2) and 9108(d)(1) of title 31’’ substituted for ‘‘the
gations purchased is not subject to the pro-
first sentence of section 202 of the Government Cor-
visions of paragraph (4). poration Control Act [31 U.S.C. 857]’’ and ‘‘the first sen-
(3) Funding tence of subsection (d) of section 303 of the Government
For the purpose of the authorities granted in Corporation Control Act [31 U.S.C. 868(d)]’’, respec-
tively, on authority of Pub. L. 97–258, § 4(b), Sept. 13,
this subsection, the Secretary of the Treasury 1982, 96 Stat. 1067, the first section of which enacted
may use the proceeds of the sale of any securi- Title 31, Money and Finance.
ties issued under chapter 31 of title 31, and the
purposes for which securities may be issued AMENDMENTS
under chapter 31 of title 31 are extended to in- 2010—Subsec. (l)(2)(C), (D). Pub. L. 111–203 added sub-
clude such purchases and the exercise of any par. (C) and redesignated former subpar. (C) as (D).
rights in connection with such purchases. Any 2008—Pub. L. 110–289, § 1204(9), substituted ‘‘The Direc-
tor’’ for ‘‘The Board’’ wherever appearing in subsecs.
funds expended for the purchase of, or modi-
(d) to (f).
fications to, obligations and securities, or the Pub. L. 110–289, § 1204(8), substituted ‘‘the Director’’
exercise of any rights received in connection for ‘‘the Board’’ wherever appearing in subsecs. (a) and
with such purchases under this subsection (e) to (i).
shall be deemed appropriated at the time of Subsec. (b). Pub. L. 110–289, § 1204(3)(A), substituted
such purchase, modification, or exercise. ‘‘The Office of Finance, as agent for the Banks,’’ for
‘‘The Board’’ and ‘‘such Office’’ for ‘‘the Board’’ in first
(4) Termination of authority sentence and ‘‘the Office of Finance’’ for ‘‘the Board’’
The authority under this subsection (l), with in second and fourth sentences.
the exception of paragraphs (2) and (3) of this Subsec. (c). Pub. L. 110–289, § 1204(3)(B), substituted
subsection, shall expire December 31, 2009. ‘‘the Office of Finance, as agent for the Banks,’’ for
‘‘the Board’’ before ‘‘may issue’’ and ‘‘such Office’’ for
(5) Authority of the Director with respect to ‘‘the Board’’ before ‘‘may prescribe’’.
executive compensation Subsec. (f). Pub. L. 110–289, § 1204(3)(C), struck out the
The Director shall have the power to ap- two commas after ‘‘permit’’ and inserted ‘‘or’’ and
struck out the comma after ‘‘require’’.
prove, disapprove, or modify the executive Subsec. (l). Pub. L. 110–289, § 1117(c), added subsec. (l).
compensation of the Federal Home Loan 2006—Subsec. (k). Pub. L. 109–173 substituted ‘‘the De-
Bank, as defined under Regulation S-K, 17 posit Insurance Fund’’ for ‘‘SAIF’’ in heading and ‘‘De-
C.F.R. 229. posit Insurance Fund’’ for ‘‘Savings Association Insur-
ance Fund’’ in pars. (1) and (2).
(July 22, 1932, ch. 522, § 11, 47 Stat. 733; June 27, Pub. L. 109–171 repealed Pub. L. 104–208,
1934, ch. 847, § 503, 48 Stat. 1261; June 27, 1950, ch. § 2704(d)(11)(A). See 1996 Amendment note below.
369, §§ 3, 4, 64 Stat. 257; Aug. 2, 1954, ch. 649, title 2004—Subsec. (j). Pub. L. 108–271 substituted ‘‘Govern-
II, § 204(a), 68 Stat. 622; Pub. L. 88–560, title VII, ment Accountability Office’’ for ‘‘General Accounting
§ 701(d)(1), Sept. 2, 1964, 78 Stat. 800; Pub. L. Office’’.
90–448, title VIII, § 807(k), Aug. 1, 1968, 82 Stat. 1996—Subsec. (h). Pub. L. 104–208, § 208(h)(2), sub-
545; Pub. L. 91–151, title I, § 3, Dec. 23, 1969, 83 stituted ‘‘section 681 of title 15’’ for ‘‘section 681(d) of
title 15’’.
Stat. 374; Pub. L. 91–609, title IX, § 914, Dec. 31, Subsec. (k). Pub. L. 104–208, § 2704(d)(11)(A), which di-
1970, 84 Stat. 1815; Pub. L. 93–383, title VIII, rected the amendment of subsec. (k) by substituting
§ 805(c)(2), Aug. 22, 1974, 88 Stat. 727; Pub. L. ‘‘the Deposit Insurance Fund’’ for ‘‘SAIF’’ in heading
93–495, title I, § 112, Oct. 28, 1974, 88 Stat. 1506; and ‘‘Deposit Insurance Fund’’ for ‘‘Savings Associa-
Pub. L. 96–153, title III, § 324, Dec. 21, 1979, 93 tion Insurance Fund’’ in pars. (1) and (2), was repealed
Stat. 1121; Pub. L. 96–221, title III, § 311, Mar. 31, by Pub. L. 109–171. See Effective Date of 1996 Amend-
1980, 94 Stat. 149; Pub. L. 97–320, title I, § 125(c), ment note below and 2006 Amendment note above.
1989—Subsecs. (a) to (d). Pub. L. 101–73, § 701(b)(1),
Oct. 15, 1982, 96 Stat. 1485; Pub. L. 101–73, title
(3)(A), substituted ‘‘Board’’ for ‘‘board’’ wherever ap-
VII, §§ 701(b)(1)–(3)(A), (c), 709, 710(b)(6), Aug. 9, pearing.
1989, 103 Stat. 412, 418; Pub. L. 104–208, div. A, Subsec. (e)(1). Pub. L. 101–73, § 709(1), inserted ‘‘inci-
title II, § 2704(d)(11)(A), div. D, title II, § 208(h)(2), dental to activities’’ after ‘‘other business not’’.
Sept. 30, 1996, 110 Stat. 3009–489, 3009–747; Pub. L. Pub. L. 101–73, § 701(b)(1), (3)(A), substituted ‘‘Board’’
108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. for ‘‘board’’.
109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Subsec. (e)(2)(C). Pub. L. 101–73, § 701(c)(1), which di-
rected insertion of ‘‘Federal Home Loan’’ before
Pub. L. 109–173, § 9(d)(1), Feb. 15, 2006, 119 Stat.
‘‘Banks,’’ was executed the second time that term ap-
3616; Pub. L. 110–289, div. A, title I, § 1117(c), title peared, because ‘‘Federal Home Loan’’ already preceded
II, § 1204(3), (8), (9), July 30, 2008, 122 Stat. 2686, the term ‘‘Banks,’’ the first place it appeared.
2786; Pub. L. 111–203, title XIII, § 1304(c), July 21, Subsec. (f). Pub. L. 101–73, § 709(2), which directed
2010, 124 Stat. 2134.) amendment of subsec. (f) by striking out ‘‘or whenever
§ 1432 TITLE 12—BANKS AND BANKING Page 304

in the judgment of at least 4 members of the board an Statutory Notes and Related Subsidiaries
emergency exists requiring such action’’ after ‘‘empow-
EFFECTIVE DATE OF 2010 AMENDMENT
ered to permit,’’, was executed by striking out ‘‘or
whenever in the judgment of at least four members of Amendment by Pub. L. 111–203 effective 1 day after
the board an emergency exists requiring such action’’, July 21, 2010, except as otherwise provided, see section
as the probable intent of Congress. The amendment 4 of Pub. L. 111–203, set out as an Effective Date note
probably should also have struck out the comma after under section 5301 of this title.
‘‘empowered to permit’’ and the words ‘‘, to require,’’
EFFECTIVE DATE OF 2006 AMENDMENT
after ‘‘such action’’.
Pub. L. 101–73, § 701(b)(1), (3)(A), substituted ‘‘Board’’ Amendment by Pub. L. 109–173 effective Mar. 31, 2006,
for ‘‘board’’ wherever appearing. see section 9(j) of Pub. L. 109–173, set out as a note
Subsec. (g). Pub. L. 101–73, § 710(b)(6), struck out ‘‘or under section 24 of this title.
nonmember borrowers’’ after ‘‘made to members’’ Amendment by Pub. L. 109–171 effective no later than
wherever appearing. the first day of the first calendar quarter that begins
Subsec. (h). Pub. L. 101–73, § 710(b)(6), struck out ‘‘or after the end of the 90-day period beginning Feb. 8, 2006,
nonmember borrowers’’ after ‘‘advances to members’’. see section 2102(c) of Pub. L. 109–171, set out as a Merger
Pub. L. 101–73, § 701(b)(1), (3)(A), substituted ‘‘Board’’ of BIF and SAIF note under section 1821 of this title.
for ‘‘board’’.
Subsec. (i). Pub. L. 101–73, § 701(c)(2), inserted ‘‘Fed- EFFECTIVE DATE OF 1996 AMENDMENT
eral’’ before ‘‘Home Loan Bank System’’. Amendment by section 2704(d)(11)(A) of Pub. L.
Pub. L. 101–73, § 701(b)(1), (2), substituted ‘‘Chair- 104–208 effective Jan. 1, 1999, if no insured depository in-
person of the Board’’ for ‘‘Chairman of the Federal stitution is a savings association on that date, see sec-
Home Loan Bank Board’’. tion 2704(c) of Pub. L. 104–208, formerly set out as a note
Subsec. (k). Pub. L. 101–73, § 709(3), amended subsec. under section 1821 of this title.
(k) generally. Prior to amendment, subsec. (k) read as
follows: ‘‘The Federal Home Loan Banks are hereby au- EFFECTIVE DATE OF 1968 AMENDMENT
thorized, as directed by the Board, to make loans to the For effective date of amendment by title VIII of Pub.
Federal Savings and Loan Insurance Corporation. All L. 90–448, see section 808 of Pub. L. 90–448, set out as an
such loans shall be made in accordance with the provi- Effective Date note under section 1716b of this title.
sions of section 1725(d) of this title.’’
1982—Subsec. (k). Pub. L. 97–320 added subsec. (k). § 1432. Incorporation of banks; corporate powers;
1980—Subsec. (e). Pub. L. 96–221 designated existing housing project loans
provisions as par. (1) and added par. (2).
1979—Subsec. (h). Pub. L. 96–153 inserted provisions (a) The directors of each Federal Home Loan
relating to stock, obligations, or other securities of any Bank shall, in accordance with such rules and
small business investment company formed pursuant to regulations as the Director may prescribe, make
section 681(d) of title 15, for the purpose of aiding mem- and file with the Director at the earliest prac-
bers of the Federal Home Loan Bank System.
1974—Subsec. (h). Pub. L. 93–383 inserted reference to ticable date after the establishment of such
mortgages, obligations, or other securities sold by the bank, an organization certificate which shall
Federal Home Loan Mortgage Corporation pursuant to contain such information as the Director may
section 1454 or 1455 of this title. require. Upon the making and filing of such or-
Subsec. (i). Pub. L. 93–495 substituted ‘‘obligations ganization certificate with the Director, such
under this paragraph’’ for ‘‘obligations under this sub- bank shall become, as of the date of the execu-
section’’ wherever appearing in fourth sentence of ini- tion of its organization certificate, a body cor-
tial par., in second par. substituted provisions author-
izing purchase of obligations issued pursuant to this
porate, and as such and in its name as des-
section in amounts not to exceed $2,000,000,000, for pro- ignated by the Director it shall have power to
visions relating to exercise of authority of this sub- adopt, alter, and use a corporate seal; to make
section by the Secretary of the Treasury, and added contracts; to purchase or lease and hold or dis-
third par. pose of such real estate as may be necessary or
1970—Subsec. (g). Pub. L. 91–609 substituted ‘‘five convenient for the transaction of its business; to
years’’ for ‘‘one year’’ in items (3) and (4). sue and be sued, to complain and to defend, in
1969—Subsec. (i). Pub. L. 91–151 increased the bor-
rowing limit to $4,000,000,000 and made it a requirement any court of competent jurisdiction, State or
that the rate charged on such borrowing be set at the Federal; to select, employ, and fix the com-
current market yield on Treasury obligations and pensation of such officers, employees, attorneys,
added a new paragraph which allows the Secretary to and agents as shall be necessary for the trans-
permit members of the Home Loan Bank System to action of its business,; 1 to define their duties,
continue to supply funds to the mortgage market dur- require bonds of them and fix the penalties
ing tight market conditions. thereof, and to dismiss at pleasure such officers,
1968—Subsec. (h). Pub. L. 90–448 inserted ‘‘or the Gov-
ernment National Mortgage Association, in the stock
employees, attorneys, and agents; and, by the
of the Federal National Mortgage Association’’. board of directors of the bank, to prescribe,
1964—Subsec. (h). Pub. L. 88–560 substituted ‘‘in obli- amend, and repeal by-laws governing the man-
gations, participations, or other instruments of or ner in which its affairs may be administered,
issued by the Federal National Mortgage Association’’ consistent with applicable laws and regulations,
for ‘‘in obligations of the Federal National Mortgage as administered by the Director. No officer, em-
Association’’. ployee, attorney, or agent of a Federal home
1954—Subsec. (h). Act Aug. 2, 1954, inserted reference
to obligations of the Federal National Mortgage Asso-
loan bank who receives compensation, may be a
ciation. member of the board of directors. Each such
1950—Subsec. (g). Act June 27, 1950, § 3, struck out re- bank shall have all such incidental powers, not
quirement that sums paid in on outstanding capital inconsistent with the provisions of this chapter,
subscriptions of members from the base for deter- as are customary and usual in corporations gen-
mining the amount of money which the Federal Home erally.
Loan Banks shall at all times have invested. (b) Subject to such regulations as may be pre-
Subsecs. (i), (j). Act June 27, 1950, § 4, added subsecs.
scribed by the Director, one or more Federal
(i) and (j).
1934—Subsecs. (i), (j). Act June 27, 1934, among other
changes, struck out subsecs. (i) and (j). 1 So in original.