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§ 1438. —  Administrative expenses.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1438]

 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER 11--FEDERAL HOME LOAN BANKS
 
Sec. 1438. Administrative expenses


(a) Repealed. Pub. L. 101-73, title VII, Sec. 712, Aug. 9, 1989, 103 
        Stat. 419

(b) Assessments for administrative expenses

                           (1) In general

        The Board may impose a semiannual assessment on the Federal Home 
    Loan Banks, the aggregate amount of which is sufficient to provide 
    for the payment of the Board's estimated expenses for the period for 
    which such assessment is made.

                          (2) Deficiencies

        If, at any time, amounts available from any assessment for any 
    semiannual period are insufficient to cover the expenses of the 
    Board incurred in carrying out the provisions of this chapter during 
    such period, the Board may make an immediate assessment against the 
    Banks to cover the amount of the deficiency for such semiannual 
    period.

                            (3) Surpluses

        If, at the end of any semiannual period for which an assessment 
    is made, any amount remains from such assessment, such amount will 
    be deducted from the assessment on the Banks by the Board for the 
    following semiannual period.

(c) Quarters and facilities; advances of funds; obligations of United 
        States; legal investments; approval of plans and designs; 
        custody, management, and control; receipts; expense exclusions; 
        property defined; budget preparation program; audit; zoning 
        regulations; delegation of functions; limitation on obligations

    (1) The Director of the Office of Thrift Supervision, utilizing the 
services of the Administrator of General Services (hereinafter referred 
to as the ``Administrator''), and subject to any limitation hereon which 
may hereafter be imposed in appropriation Acts, is hereby authorized--
        (A) to acquire, in the name of the United States, real property 
    in the District of Columbia, for the purposes set forth in this 
    subsection;
        (B) to construct, develop, furnish, and equip such buildings 
    thereon and such facilities as in its judgment may be appropriate to 
    provide, to such extent as the Director of the Office of Thrift 
    Supervision may deem advisable, suitable and adequate quarters and 
    facilities for the Director of the Office of Thrift Supervision and 
    the agencies under its administration or supervision;
        (C) to enlarge, remodel, or reconstruct any of the same; and
        (D) to make or enter into contracts for any of the foregoing.

    (2) The Director of the Office of Thrift Supervision may require of 
the respective banks, and they shall make to the Director of the Office 
of Thrift Supervision, such advances of funds for the purposes set out 
in paragraph (1) as in the sole judgment of the Director of the Office 
of Thrift Supervision may from time to time be advisable. Such advances 
shall be in addition to the assessments authorized in subsection (b) of 
this section and shall be apportioned by the Director of the Office of 
Thrift Supervision among the banks in proportion to the total assets of 
the respective banks, determined in such manner and as of such times as 
the Director of the Office of Thrift Supervision may prescribe. Each 
such advance shall bear interest at the rate of 4\1/2\ per centum per 
annum from the date of the advance and shall be repaid by the Director 
of the Office of Thrift Supervision in such installments and over such 
period, not longer than twenty-five years from the making of the 
advance, as the Director of the Office of Thrift Supervision may 
determine. Payments of interest and principal upon such advances shall 
be made from receipts of the Director of the Office of Thrift 
Supervision or from other sources which may from time to time be 
available to the Director of the Office of Thrift Supervision. The 
obligation of the Director of the Office of Thrift Supervision to make 
any such payment shall not be regarded as an obligation of the United 
States. To such extent as the Director of the Office of Thrift 
Supervision may prescribe any such obligation shall be regarded as a 
legal investment for the purposes of subsections (g) and (h) of section 
1431 of this title and for the purposes of section 1436 of this title.
    (3) The plans and designs for such buildings and facilities and for 
any such enlargement, remodeling, or reconstruction shall, to such 
extent as the chairperson of \1\ the Director of the Office of Thrift 
Supervision may request, be subject to his approval.
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    \1\ So in original. Words ``the chairperson of'' probably should not 
appear.
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    (4) Upon the making of arrangements mutually agreeable to the 
Director of the Office of Thrift Supervision and the Administrator, 
which arrangements may be modified from time to time by mutual agreement 
between them and may include but shall not be limited to the making of 
payments by the Director of the Office of Thrift Supervision and such 
agencies to the Administrator and by the Administrator to the Director 
of the Office of Thrift Supervision, the custody, management, and 
control of such buildings and facilities and of such real property shall 
be vested in the Administrator in accordance therewith. Until the making 
of such arrangements such custody, management, and control, including 
the assignment and allotment and the reassignment and reallotment of 
building and other space, shall be vested in the Director of the Office 
of Thrift Supervision.
    (5) Any proceeds (including advances) received by the Director of 
the Office of Thrift Supervision in connection with this subsection, and 
any proceeds from the sale or other disposition of real or other 
property acquired by the Director of the Office of Thrift Supervision 
under this subsection, shall be considered as receipts of the Director 
of the Office of Thrift Supervision, and obligations and expenditures of 
the Director of the Office of Thrift Supervision and such agencies in 
connection with this subsection shall not be considered as 
administrative expenses. As used in this subsection, the term 
``property'' shall include interests in property.
    (6) With respect to its functions under this subsection the Director 
of the Office of Thrift Supervision shall (A) annually prepare and 
submit a budget program as provided in chapter 91 of title 31 with 
regard to wholly owned Government corporations, and for purposes of this 
sentence, the terms ``wholly owned Government corporations'' and 
``Government corporations,'' wherever used in such chapter, shall 
include the Director of the Office of Thrift Supervision, and (B) 
maintain an integral set of accounts which shall be audited by the 
General Accounting Office in accordance with the principles and 
procedures applicable to commercial corporate transactions as provided 
in such title, and no other settlement or adjustment shall be required 
with respect to transactions under this subsection or with respect to 
claims, demands, or accounts by or against any person arising 
thereunder. The first budget program shall be for the first full fiscal 
year beginning on or after the date of the enactment of this subsection. 
Except as otherwise provided in this subsection or by the Director of 
the Office of Thrift Supervision, the provisions of this subsection and 
the functions thereby or thereunder subsisting shall be applicable and 
exercisable notwithstanding and without regard to the Act of June 20, 
1938, except that the proviso of section 16 thereof shall apply to any 
building constructed under this subsection, and section 306 of the Act 
of July 30, 1947 (61 Stat. 584), or any other provision of law relating 
to the construction, alteration, repair, or furnishing of public or 
other buildings or structures or the obtaining of sites therefor, but 
any person or body in whom any such function is vested may provide for 
delegation or redelegation of the exercise of such function.
    (7) No obligation shall be incurred and no expenditure, except in 
liquidation of obligation, shall be made pursuant to the first two 
subparagraphs of paragraph (1) of this subsection if the total amount of 
all obligations incurred pursuant thereto would thereupon exceed 
$13,200,000, or such greater amount as may be provided in an 
appropriation Act or other law.

(July 22, 1932, ch. 522, Sec. 18, 47 Stat. 737; Pub. L. 89-754, title X, 
Sec. 1016(b), Nov. 3, 1966, 80 Stat. 1293; Pub. L. 101-73, title VII, 
Secs. 701(b)(2), (b)(3)(B), 711, 712, Aug. 9, 1989, 103 Stat. 412, 419; 
Pub. L. 104-66, title II, Sec. 2191, Dec. 21, 1995, 109 Stat. 732; Pub. 
L. 106-102, title VI, Sec. 606(h), Nov. 12, 1999, 113 Stat. 1455.)

                       References in Text

    Date of the enactment of this subsection and fiscal year in which 
this subsection is enacted, referred to in subsec. (c)(6), mean Nov. 3, 
1966, the date of enactment of Pub. L. 89-754, and fiscal year 1967, 
respectively.
    Act of June 20, 1938, referred to in subsec. (c)(6), is act June 20, 
1938, ch. 534, 52 Stat. 797, as amended, which is not classified to the 
Code.
    Section 306 of the Act of July 30, 1947, referred to in subsec. 
(c)(6), is section 306 of act July 30, 1947, ch. 358, 61 Stat. 584, 
which is set out, in part, as a note under section 585 of Title 40, 
Public Buildings, Property, and Works. The remainder of section 306 of 
act of July 30, 1947, was set out as a note under section 19 of former 
Title 40, Public Buildings, Property, and Works, and has been omitted 
from the Code.

                          Codification

    Subsec. (c)(6) is set out in this supplement to change translation 
appearing in main edition.
    In subsec. (c)(6), ``chapter 91 of title 31'' and ``such chapter'' 
substituted for ``title I of the Government Corporation Control Act [31 
U.S.C. 846 et seq.]'' and ``such title'', respectively, on authority of 
Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first 
section of which enacted Title 31, Money and Finance.


                               Amendments

    1999--Subsec. (b)(4). Pub. L. 106-102 struck out heading and text of 
par. (4). Text read as follows: ``On or after the effective date of the 
Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 
the Board may levy a one-time special assessment on the Banks pursuant 
to this subsection for the Board's estimated expenses for the 
transitional period following enactment of such Act, if such assessment 
is made before the Board's first semiannual assessment under paragraph 
(1).''
    1995--Subsec. (c)(6)(B). Pub. L. 104-66 struck out ``annually'' 
after ``shall be audited'', substituted ``no other settlement'' for ``no 
other audit, settlement,'', and struck out ``, and the first audit shall 
be for the remainder of the fiscal year in which this subsection is 
enacted'' after ``enactment of this subsection''.
    1989--Subsec. (a). Pub. L. 101-73, Sec. 712, struck out subsec. (a) 
which authorized appropriation of $300,000 for all necessary expenses of 
the board, together with expenses preliminary to organization and 
establishment of the banks created hereunder, until the end of the 
fiscal year 1933.
    Subsec. (b). Pub. L. 101-73, Sec. 711, amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``The board 
shall have power to levy semiannually upon the Federal Home Loan Banks, 
and they shall pay, on such equitable basis as the board shall 
determine, an assessment sufficient in its judgment to provide for the 
payment of its estimated expenses for the half year succeeding the 
levying of each such assessment, beginning with the second half of the 
calendar year 1933. All expenses of the board incurred in carrying out 
the provisions of this chapter, as determined by it, beginning July 1, 
1933, shall be paid from the proceeds of such assessments, and if any 
deficiency shall occur in such fund at any time between such semiannual 
assessments the board shall have power to make an immediate assessment 
against the banks to cover such deficiency on the same basis as the 
original assessment. If any surplus shall remain from any assessment 
after the expiration of the semiannual period for which it was levied, 
such surplus may be deducted from the next following assessment. Such 
assessments may include such amounts as the board may deem advisable for 
carrying out the provisions of subsection (c) of this section.''
    Subsec. (c). Pub. L. 101-73, Sec. 701(b)(3)(B), which directed the 
amendment of subsec. (c) by striking out ``Federal Home Loan Bank 
Board'' and ``board'' each place such terms appear and inserting 
``Director of the Office of Thrift Supervision'', was executed by 
substituting ``Director of the Office of Thrift Supervision'' for 
``board'' wherever such term appeared. The term ``Federal Home Loan Bank 
Board'' did not appear in subsec. (c).
    Subsec. (c)(3). Pub. L. 101-73, Sec. 701(b)(2), substituted 
``chairperson'' for ``chairman''.
    1966--Subsec. (b). Pub. L. 89-754, Sec. 1016(b)(1), provided that 
assessments may include such amounts as the board may deem advisable for 
carrying out provisions of subsec. (c).
    Subsec. (c). Pub. L. 89-754, Sec. 1016(b)(2), added subsec. (c).



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