§ 1432. — Incorporation of banks; corporate powers; housing project loans.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1432]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1432. Incorporation of banks; corporate powers; housing
project loans
(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,; \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.
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\1\ So in original.
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(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.
(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.)
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.
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.
Section Referred to in Other Sections
This section is referred to in section 1427 of this title.
