§ 1422a. — Federal Housing Finance Board.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1422a]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1422a. Federal Housing Finance Board
(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.
(C) Limitations on conflicts of interest
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
(C) one shall be appointed for a term of 5 years.
(c) Chairperson; transitional provisions
(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.
(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.)
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.
Section Referred to in Other Sections
This section is referred to in sections 1422, 1427 of this title.
