§ 1430. — Advances to members.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1430]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1430. Advances to members
(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).
(C) Cash or deposits of a Federal Home Loan Bank.
(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.
(c) Notes of borrowing members; interest rate; lien on stock
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) \1\ Community support requirements
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\1\ So in original. No subsec. (f) has been enacted.
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(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,
(C) to finance commercial and economic development
activities 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
(C) purchase or rehabilitation of housing sponsored by any
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.
(C) In 1995, and subsequent years, 10 percent of the
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.
(C) Review
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;
(C) ensure that advances made under this program will be
used 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.
(C) The Comptroller General of the United States shall audit 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.
(C) Low- or moderate-income neighborhood
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.
(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, Secs. 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, Secs. 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,
Secs. 604(a)-(c), 606(f)(2), Nov. 12, 1999, 113 Stat. 1451, 1452, 1455.)
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.
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 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.
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.''
Section Referred to in Other Sections
This section is referred to in sections 1430b, 1431, 1441b, 1733,
2705 of this title.
