§ 1441. — Financing Corporation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1441]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1441. Financing Corporation
(a) Establishment
Notwithstanding any other provision of law, the Federal Housing
Finance Board shall charter a corporation to be known as the Financing
Corporation.
(b) Management of Financing Corporation
(1) Directorate
The Financing Corporation shall be under the management of a
directorate composed of 3 members as follows:
(A) The Director of the Office of Finance of the Federal
Home Loan Banks (or the head of any successor to such office).
(B) 2 members selected by the Federal Housing Finance Board
from among the presidents of the Federal Home Loan Banks.
(2) Terms
Each member appointed under paragraph (1)(B) shall be appointed
for a term of 1 year.
(3) Vacancy
If any member leaves the office in which such member was serving
when appointed to the Directorate--
(A) such member's service on the Directorate shall terminate
on the date such member leaves such office; and
(B) the successor to the office of such member shall serve
the remainder of such member's term.
(4) Equal representation of banks
No president of a Federal Home Loan Bank may be appointed to
serve an additional term on the Directorate until such time as the
presidents of each of the other Federal Home Loan Banks have served
as many terms on the Directorate as the president of such bank
(before the appointment of such president to such additional term).
(5) Chairperson
The Chairperson of the Federal Housing Finance Board shall
select the chairperson of the Directorate from among the 3 members
of the Directorate.
(6) Staff
(A) No paid employees
The Financing Corporation shall have no paid employees.
(B) Powers
The Directorate may, with the approval of the Federal
Housing Finance Board, authorize the officers, employees, or
agents of the Federal Home Loan Banks to act for and on behalf
of the Financing Corporation in such manner as may be necessary
to carry out the functions of the Financing Corporation.
(7) Administrative expenses
(A) In general
All administrative expenses of the Financing Corporation
shall be paid by the Federal Home Loan Banks.
(B) Pro rata distribution
The amount each Federal Home Loan Bank shall pay shall be
determined by the Federal Housing Finance Board by multiplying
the total administrative expenses for any period by the
percentage arrived at by dividing--
(i) the aggregate amount the Federal Housing Finance
Board required such bank to invest in the Financing
Corporation (as of the time of such determination) under
paragraphs (4) and (5) of subsection (d) of this section (as
computed without regard to paragraph (3) or (6) of such
subsection); by
(ii) the aggregate amount the Federal Housing Finance
Board required all Federal Home Loan Banks to invest (as of
the time of such determination) under such paragraphs.
(C) Administrative expenses defined
For purposes of this paragraph, the term ``administrative
expenses'' does not include--
(i) issuance costs (as such term is defined in
subsection (g)(5)(A) of this section);
(ii) any interest on (and any redemption premium with
respect to) any obligation of the Financing Corporation; or
(iii) custodian fees (as such term is defined in
subsection (g)(5)(B) of this section).
(8) Regulation by Federal Housing Finance Board
The Directorate shall be subject to such regulations, orders,
and directions as the Federal Housing Finance Board may prescribe.
(9) No compensation from Financing Corporation
Members of the Directorate shall receive no pay, allowances, or
benefits from the Financing Corporation by reason of their service
on the Directorate.
(c) Powers of Financing Corporation
The Financing Corporation shall have only the following powers,
subject to the other provisions of this section and such regulations,
orders, and directions as the Federal Housing Finance Board may
prescribe:
(1) To issue nonvoting capital stock to the Federal Home Loan
Banks.
(2) To invest in any security issued by the Federal Savings and
Loan Insurance Corporation under section 1725(b) of this title prior
to August 9, 1989, and thereafter to transfer the proceeds of any
obligation issued by the Financing Corporation to the FSLIC
Resolution Fund.
(3) To issue debentures, bonds, or other obligations and to
borrow, to give security for any amount borrowed, and to pay
interest on (and any redemption premium with respect to) any such
obligation or amount.
(4) To impose assessments in accordance with subsection (f) of
this section.
(5) To adopt, alter, and use a corporate seal.
(6) To have succession until dissolved.
(7) To enter into contracts.
(8) To sue and be sued in its corporate capacity, and to
complain and defend in any action brought by or against the
Financing Corporation in any State or Federal court of competent
jurisdiction.
(9) To exercise such incidental powers not inconsistent with the
provisions of this section as are necessary or appropriate to carry
out the provisions of this section.
(d) Capitalization of Financing Corporation
(1) Purchase of capital stock by Federal Home Loan Banks
(A) In general
Each Federal Home Loan Bank shall invest in nonvoting
capital stock of the Financing Corporation at such times and in
such amounts as the Federal Housing Finance Board may prescribe
under this subsection.
(B) Par value; transferability
Each share of stock issued by the Financing Corporation to a
Federal Home Loan Bank shall have par value in an amount
determined by the Federal Housing Finance Board and shall be
transferable only among the Federal Home Loan Banks in the
manner and to the extent prescribed by the Federal Housing
Finance Board at not less than par value.
(2) Aggregate dollar amount limitation on all investments
The aggregate amount of funds invested by all Federal Home Loan
Banks in nonvoting capital stock of the Financing Corporation shall
not exceed $3,000,000,000.
(3) Maximum investment amount limitation for each Federal
Home Loan Bank
The cumulative amount of funds invested in nonvoting capital
stock of the Financing Corporation by each Federal Home Loan Bank
shall not exceed the aggregate amount of--
(A) the sum of--
(i) the reserves maintained by such bank on December 31,
1985, pursuant to the requirement contained in the first 2
sentences of section 1436 of this title; and
(ii) the undivided profits (as defined in paragraph (7))
of such bank on such date; and
(B) the sum of--
(i) the amounts added to reserves after December 31,
1985, pursuant to the requirement contained in the first 2
sentences of section 1436 of this title; and
(ii) the undivided profits of such bank accruing after
such date.
(4) Pro rata distribution of 1st $1,000,000,000 invested in
Financing Corporation by Home Loan Banks
Of the first $1,000,000,000 in the aggregate which the Thrift
Depositor Protection Oversight Board pursuant to section 1441b of
this title or the Federal Housing Finance Board under this section
(as the case may be) may require the Federal Home Loan Banks
collectively to invest in the stock of the Funding Corporation or
invest in the capital stock of the Financing Corporation,
respectively, the amount which each Federal Home Loan Bank (or any
successor to such Bank) shall invest shall be determined by the
Thrift Depositor Protection Oversight Board or the Federal Housing
Finance Board (as the case may be) by multiplying the aggregate
amount of such payment or investment by all Banks by the percentage
appearing in the following table for each such Bank:
Bank Percentage
Federal Home Loan Bank of Boston........................ 1.8629
Federal Home Loan Bank of New York...................... 9.1006
Federal Home Loan Bank of Pittsburgh.................... 4.2702
Federal Home Loan Bank of Atlanta....................... 14.4007
Federal Home Loan Bank of Cincinnati.................... 8.2653
Federal Home Loan Bank of Indianapolis.................. 5.2863
Federal Home Loan Bank of Chicago....................... 9.6886
Federal Home Loan Bank of Des Moines.................... 6.9301
Federal Home Loan Bank of Dallas........................ 8.8181
Federal Home Loan Bank of Topeka........................ 5.2706
Federal Home Loan Bank of San Francisco................. 19.9644
Federal Home Loan Bank of Seattle....................... 6.1422
(5) Pro rata distribution of amounts required to be invested
in excess of $1,000,000,000
With respect to any amount in excess of the $1,000,000,000
amount referred to in paragraph (4) which the Federal Housing
Finance Board may require the Federal Home Loan Banks to invest in
capital stock of the Financing Corporation under this subsection,
the amount which each Federal Home Loan Bank (or any successor to
such bank) shall invest shall be determined by the Federal Housing
Finance Board by multiplying such excess amount by the percentage
arrived at by dividing--
(A) the sum of the total assets (as of the most recent
December 31) held by all Savings Association Insurance Fund
members which are members of such bank; by
(B) the sum of the total assets (as of such date) held by
all Savings Association Insurance Fund members which are members
of any Federal Home Loan Bank.
(6) Special provisions relating to maximum amount
limitations
(A) In general
If the amount any Federal Home Loan Bank is required to
invest in capital stock of the Financing Corporation pursuant to
a determination by the Federal Housing Finance Board under
paragraph (5) (or under subparagraph (B) of this paragraph)
exceeds the maximum investment amount applicable with respect to
such bank under paragraph (3) at the time of such determination
(hereinafter in this paragraph referred to as the ``excess
amount'')--
(i) the Federal Housing Finance Board shall require each
remaining Federal Home Loan Bank to invest (in addition to
the amount determined under paragraph (5) for such remaining
bank and subject to the maximum investment amount applicable
with respect to such remaining bank under paragraph (3) at
the time of such determination) in such capital stock on
behalf of the bank in the amount determined under
subparagraph (B);
(ii) the Federal Housing Finance Board shall require the
bank to subsequently purchase the excess amount of capital
stock from the remaining banks in the manner described in
subparagraph (C); and
(iii) the requirements contained in subparagraphs (D)
and (E) relating to the use of net earnings shall apply to
such bank until the bank has purchased all of the excess
amount of capital stock.
(B) Allocation of excess amount among remaining Home Loan Banks
The amount each remaining Federal Home Loan Bank shall be
required to invest under subparagraph (A)(i) is the amount
determined by the Federal Housing Finance Board by multiplying
the excess amount by the percentage arrived at by dividing--
(i) the amount of capital stock of the Financing
Corporation held by such remaining bank at the time of such
determination; by
(ii) the aggregate amount of such stock held by all
remaining banks at such time.
(C) Purchase procedure
The bank on whose behalf an investment in capital stock is
made under subparagraph (A)(i) shall purchase, annually and at
the issuance price, from each remaining bank an amount of such
stock determined by the Federal Housing Finance Board by
multiplying the amount available for such purchases (at the time
of such determination) by the percentage determined under
subparagraph (B) with respect to such remaining bank until the
aggregate amount of such capital stock has been purchased by the
bank.
(D) Limitation on dividends
The amount of dividends which may be paid for any year by a
bank on whose behalf an investment is made under subparagraph
(A)(i) shall not exceed an amount equal to \1/2\ of the net
earnings of the bank for the year.
(E) Transfer to account for purchase of stock required
Of the net earnings for any year of a bank on whose behalf
an investment is made under subparagraph (A)(i), such amount as
is necessary to make the purchases of stock required under
subparagraph (A)(ii) shall be placed in a reserve account
(established in such manner as the Federal Housing Finance Board
shall prescribe by regulations) the balance in which shall be
available only for such purchases.
(7) Undivided profits defined
For purposes of paragraph (3), the term ``undivided profits''
means retained earnings minus the sum of--
(A) that portion required to be added to reserves maintained
pursuant to the first two sentences of section 1436 of this
title; and
(B) the dollar amounts held by the respective Federal Home
Loan Banks in special dividend stabilization reserves on
December 31, 1985, as determined under the following table:
Bank Dollar amount
Federal Home Loan Bank of Boston.................... $3.2 million
Federal Home Loan Bank of New York.................. 7.7 million
Federal Home Loan Bank of Pittsburgh................ 5.2 million
Federal Home Loan Bank of Atlanta................... 12.3 million
Federal Home Loan Bank of Cincinnati................ 5.9 million
Federal Home Loan Bank of Indianapolis.............. 37.4 million
Federal Home Loan Bank of Chicago................... 6.0 million
Federal Home Loan Bank of Des Moines................ 32.7 million
Federal Home Loan Bank of Dallas.................... 45.0 million
Federal Home Loan Bank of Topeka.................... 13.7 million
Federal Home Loan Bank of San Francisco............. 21.9 million
Federal Home Loan Bank of Seattle................... 33.6 million
(e) Obligations of Financing Corporation
(1) Limitation on amount of outstanding obligations
The aggregate amount of obligations of the Financing Corporation
which may be outstanding at any time (as determined by the Federal
Housing Finance Board) shall not exceed the lesser of--
(A) an amount equal to the greater of--
(i) 5 times the amount of the nonvoting capital stock of
the Financing Corporation which is outstanding at such time;
or
(ii) the sum of the face amounts (the amount of
principal payable at maturity) of securities described in
subsection (g)(2) of this section which are held at such
time in the segregated account established pursuant to such
subsection; or
(B) $10,825,000,000.
(2) Termination of borrowing authority
No obligation of the Financing Corporation shall be issued after
December 12, 1991.
(3) Limitation on term of obligations
No obligation of the Financing Corporation may be issued which
matures--
(A) more than 30 years after the date of issue; or
(B) after December 31, 2026.
(4) Investment of United States funds in obligations
Obligations issued under this section by the Financing
Corporation with the approval of the Federal Housing Finance Board
shall be lawful investments, and may be accepted as security, for
all fiduciary, trust, and public funds the investment or deposit of
which shall be under the authority or control of the United States
or any officer of the United States.
(5) Market for obligations
All persons having the power to invest in, sell, underwrite,
purchase for their own accounts, accept as security, or otherwise
deal in obligations of the Federal Home Loan Banks shall also have
the power to do so with respect to obligations of the Financing
Corporation.
(6) No full faith and credit of the United States
Obligations of the Financing Corporation and the interest
payable on such obligations shall not be obligations of, or
guaranteed as to principal or interest by, the Federal Home Loan
Banks, the United States, or the FSLIC Resolution Fund and the
obligations shall so plainly state.
(7) Tax exempt status
(A) In general
Except as provided in subparagraph (B), obligations of the
Financing Corporation shall be exempt from tax both as to
principal and interest to the same extent as any obligation of a
Federal Home Loan Bank is exempt from tax under section 1433 of
this title.
(B) Exception
The Financing Corporation, like the Federal Home Loan Banks,
shall be treated as an agency of the United States for purposes
of the first sentence of section 3124(b) of title 31 (relating
to determination of tax status of interest on obligations).
(8) Obligations are exempt securities
Notwithstanding paragraph (7),\1\ obligations of the Financing
Corporation shall be deemed to be exempt securities (within the
meaning of laws administered by the Securities and Exchange
Commission) to the same extent as securities which are direct
obligations of the United States or are guaranteed as to principal
or interest by the United States.
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\1\ So in original. Probably should refer to paragraph (6) in view
of the renumbering of paragraph (7) as (6) by Pub. L. 101-73.
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(9) Minority participation in public offerings
The Chairperson of the Federal Housing Finance Board and the
Directorate shall ensure that minority owned or controlled
commercial banks, investment banking firms, underwriters, and bond
counsels throughout the United States have an opportunity to
participate to a significant degree in any public offering of
obligations issued under this section.
(f) Sources of funds for interest payments; Financing Corporation
assessment authority
The Financing Corporation shall obtain funds for anticipated
interest payments, issuance costs, and custodial fees on obligations
issued hereunder from the following sources:
(1) Preenactment assessments
The Financing Corporation assessments which were assessed on
insured institutions pursuant to this section as in effect prior to
August 9, 1989.
(2) New assessment authority
In addition to the amounts obtained pursuant to paragraph (1),
the Financing Corporation, with the approval of the Board of
Directors of the Federal Deposit Insurance Corporation, shall assess
against each insured depository institution an assessment (in the
same manner as assessments are assessed against such institutions by
the Federal Deposit Insurance Corporation under section 7 of the
Federal Deposit Insurance Act [12 U.S.C. 1817]), except that--
(A) the assessments imposed on insured depository
institutions with respect to any BIF-assessable deposit shall be
assessed at a rate equal to \1/5\ of the rate of the assessments
imposed on insured depository institutions with respect to any
SAIF-assessable deposit; and
(B) no limitation under clause (i) or (iii) of section
7(b)(2)(A) of the Federal Deposit Insurance Act [12 U.S.C.
1817(b)(2)(A)] shall apply for purposes of this paragraph.
(3) Receivership proceeds
To the extent the amounts available pursuant to paragraphs (1)
and (2) are insufficient to cover the amount of interest payments,
issuance costs, and custodial fees, and if the funds are not
required by the Resolution Funding Corporation to provide funds for
the Funding Corporation Principal Fund under section 1441b of this
title, the Federal Deposit Insurance Corporation shall transfer to
the Financing Corporation, from the liquidating dividends and
payments made on claims received by the FSLIC Resolution Fund
(established under section 11A of the Federal Deposit Insurance Act
[12 U.S.C. 1821a]) from receiverships, the remaining amount of funds
necessary for the Financing Corporation to make interest payments.
(g) Use and disposition of assets of Financing Corporation not invested
in FSLIC
(1) In general
Subject to such regulations, restrictions, and limitations as
may be prescribed by the Federal Housing Finance Board, assets of
the Financing Corporation, which are not invested in capital
certificates or capital stock issued by the Federal Savings and Loan
Insurance Corporation under section 1725(b)(1)(A) of this title
before August 9, 1989, and after August 9, 1989, in capital
certificates issued by the FSLIC Resolution Fund, shall be invested
in--
(A) direct obligations of the United States;
(B) obligations, participations, or other instruments of, or
issued by, the Federal National Mortgage Association or the
Government National Mortgage Association;
(C) mortgages, obligations, or other securities for sale by,
or which have been disposed of by, the Federal Home Loan
Mortgage Corporation under section 1454 or 1455 of this title;
or
(D) any other security in which it is lawful for fiduciary
and trust funds to be invested under the laws of any State.
(2) Segregated account for zero coupon instruments held to
assure payment of principal
The Financing Corporation shall invest in, and hold in a
segregated account, noninterest bearing instruments--
(A) which are securities described in paragraph (1); and
(B) the total of the face amounts (the amount of principal
payable at maturity) of which is approximately equal to the
aggregate amount of principal on the obligations of the
Financing Corporation,
to assure the repayment of principal on obligations of the Financing
Corporation. For purposes of the foregoing, the Financing
Corporation shall be deemed to hold noninterest bearing instruments
that it lends temporarily to primary United States Treasury dealers
in order to enhance market liquidity and facilitate deliveries,
provided that United States Treasury securities of equal or greater
value have been delivered as collateral.
(3) Dollar amount limitation on investment in zero coupon
instruments for segregated account
The aggregate amount invested by the Financing Corporation under
paragraph (2) shall not exceed $2,200,000,000 (as determined on the
basis of the purchase price).
(4) Exception for payment of issuance costs, interest, and
custodian fees
Notwithstanding the requirements of paragraph (1), the assets of
the Financing Corporation referred to in paragraph (1) which are not
invested under paragraph (2) may be used to pay--
(A) issuance costs;
(B) any interest on (and any redemption premium with respect
to) any obligation of the Financing Corporation; and
(C) custodian fees.
(5) Definitions
For purposes of this subsection--
(A) Issuance costs
The term ``issuance costs''--
(i) means issuance fees and commissions incurred by the
Financing Corporation in connection with the issuance or
servicing of any obligation of the Financing Corporation;
and
(ii) includes legal and accounting expenses, trustee and
fiscal and paying agent charges, costs incurred in
connection with preparing and printing offering materials,
and advertising expenses, to the extent that any such cost
or expense is incurred by the Financing Corporation in
connection with issuing any obligation.
(B) Custodian fees
The term ``custodian fee'' means--
(i) any fee incurred by the Financing Corporation in
connection with the transfer of any security to, or the
maintenance of any security in, the segregated account
established under paragraph (2); and
(ii) any other expense incurred by the Financing
Corporation in connection with the establishment or
maintenance of such account.
(h) Miscellaneous provisions relating to Financing Corporation
(1) Treatment for certain purposes
Except as provided in subsection (e)(8)(B) of this section, the
Financing Corporation shall be treated as a Federal Home Loan Bank
for purposes of sections 1433 and 1443 of this title.
(2) Federal Reserve banks as depositaries and fiscal agents
The Federal Reserve banks are authorized to act as depositaries
for or fiscal agents or custodians of the Financing Corporation.
(3) Applicability of certain provisions relating to
Government corporation
Notwithstanding the fact that no Government funds may be
invested in the Financing Corporation, the Financing Corporation
shall be treated, for purposes of sections 9105,\2\ 9107, and 9108
of title 31, as a mixed-ownership Government corporation which has
capital of the Government.
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\2\ See References in Text note below.
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(i) Termination of Financing Corporation
(1) In general
The Financing Corporation shall be dissolved, as soon as
practicable, after the earlier of--
(A) the maturity and full payment of all obligations issued
by the Financing Corporation pursuant to this section; or
(B) December 31, 2026.
(2) Federal Housing Finance Board authority to conclude the
affairs of Financing Corporation
Effective on the date of the dissolution of the Financing
Corporation under paragraph (1), the Federal Housing Finance Board
may exercise, on behalf of the Financing Corporation, any power of
the Financing Corporation which the Federal Housing Finance Board
determines to be necessary to settle and conclude the affairs of the
Financing Corporation.
(j) Regulations
The Federal Housing Finance Board may prescribe such regulations as
may be necessary to carry out the provisions of this section, including
regulations defining terms used in this section.
(k) Definitions
For purposes of this section, the following definitions shall apply:
(1) Directorate
The term ``Directorate'' means the directorate established in
the manner provided in subsection (b)(1) of this section to manage
the Financing Corporation.
(2) Net earnings
The term ``net earnings'' means net earnings without reduction
for any chargeoffs or expenses incurred by a Bank in connection with
the purchase of capital stock of the Financing Corporation or the
purchase of stock of the Funding Corporation required by the Thrift
Depositor Protection Oversight Board under subsections (e) and (f)
of section 1441b of this title.
(3) Insured depository institution
The term ``insured depository institution'' has the same meaning
as in section 3 of the Federal Deposit Insurance Act [12 U.S.C.
1813] \3\
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\3\ So in original. Probably should be followed by a period.
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(4) Deposit terms
(A) BIF-assessable deposits
The term ``BIF-assessable deposit'' means a deposit that is
subject to assessment for purposes of the Bank Insurance Fund
under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]
(including a deposit that is treated as a deposit insured by the
Bank Insurance Fund under section 5(d)(3) of the Federal Deposit
Insurance Act [12 U.S.C. 1815(d)(3)]).
(B) SAIF-assessable deposit
The term ``SAIF-assessable deposit'' has the meaning given
to such term in section 2710 of the Deposit Insurance Funds Act
of 1996.
(July 22, 1932, ch. 522, Sec. 21, as added Pub. L. 100-86, title III,
Sec. 302, Aug. 10, 1987, 101 Stat. 585; amended Pub. L. 101-73, title V,
Sec. 512, title VII, Secs. 701(b)(2), 713, Aug. 9, 1989, 103 Stat. 406,
412, 419; Pub. L. 102-233, title I, Sec. 104, title III, Sec. 302(b),
Dec. 12, 1991, 105 Stat. 1762, 1767; Pub. L. 102-550, title XVI,
Sec. 1611(c), Oct. 28, 1992, 106 Stat. 4090; Pub. L. 104-208, div. A,
title II, Sec. 2703(a), Sept. 30, 1996, 110 Stat. 3009-485.)
References in Text
Section 1725 of this title, referred to in subsecs. (c)(2),
(e)(2)(A), and (g)(1), was repealed by Pub. L. 101-73, title IV,
Sec. 407, Aug. 9, 1989, 103 Stat. 363.
Section 9105 of title 31, referred to in subsec. (h)(3), was amended
generally by Pub. L. 101-576, title III, Sec. 305, Nov. 15, 1990, 104
Stat. 2853, and, as so amended, no longer contains provisions relating
to mixed-ownership Government corporations having capital of the
Government.
The Federal Deposit Insurance Act, referred to in subsec. (k)(4)(A),
is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended, which
is classified generally to chapter 16 (Sec. 1811 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title
note set out under section 1811 of this title and Tables.
Section 2710 of the Deposit Insurance Funds Act of 1996, referred to
in subsec. (k)(4)(B), is section 2710 of div. A of Pub. L. 104-208,
which is set out as a note under section 1821 of this title.
Prior Provisions
A prior section 1441, act July 22, 1932, ch. 522, Sec. 21, 47 Stat.
738, related to unlawful acts and penalties, prior to repeal by act June
25, 1948, ch. 645, Sec. 21, 62 Stat. 862, eff. Sept. 1, 1948. See
sections 433, 493, 657, 659, 660, 709, 1006, 1014, and 2117 of Title 18,
Crimes and Criminal Procedure.
Amendments
1996--Subsec. (f)(2). Pub. L. 104-208, Sec. 2703(a)(1)(A), in
introductory provisions, substituted ``In addition to the amounts
obtained pursuant to paragraph (1),'' for ``To the extent the amounts
available pursuant to paragraph (1) are insufficient to cover the amount
of interest payments, issuance costs, and custodial fees,'', ``insured
depository institution'' for ``Savings Association Insurance Fund
member'', and ``against such institutions'' for ``against such
members''.
Subsec. (f)(2)(A) to (C). Pub. L. 104-208, Sec. 2703(a)(1)(B), added
subpars. (A) and (B) and struck out former subpars. (A) to (C) which
read as follows:
``(A) the sum of--
``(i) the amount assessed under this paragraph; and
``(ii) the amount assessed by the Funding Corporation under
section 1441b of this title;
shall not exceed the amount authorized to be assessed against Savings
Association Insurance Fund members pursuant to section 1817 of this
title;
``(B) the Financing Corporation shall have first priority to make
the assessment; and
``(C) the amount of the applicable assessment determined under such
section 1817 of this title shall be reduced by the sum described in
subparagraph (A) of this paragraph.''
Subsec. (k). Pub. L. 104-208, Sec. 2703(a)(2)(A), substituted
``section, the following definitions shall apply:'' for ``section--'' in
introductory provisions.
Subsec. (k)(1). Pub. L. 104-208, Sec. 2703(a)(2)(B), (C),
redesignated par. (2) as (1) and struck out heading and text of former
par. (1). Text read as follows: ``The term `Savings Association
Insurance Fund member' means a savings association which is a Savings
Association Insurance Fund member as defined by section 7(l) of the
Federal Deposit Insurance Act.''
Subsec. (k)(2) to (4). Pub. L. 104-208, Sec. 2703(a)(2)(C), (D),
added pars. (3) and (4) and redesignated former pars. (2) and (3) as (1)
and (2), respectively.
1992--Subsec. (e)(2). Pub. L. 102-550 made technical amendment to
reference to December 12, 1991, to correct reference to corresponding
provisions of original act.
1991--Subsec. (d)(4). Pub. L. 102-233, Sec. 302(b), substituted
``Thrift Depositor Protection Oversight Board'' for ``Oversight Board''
in two places.
Subsec. (e)(2). Pub. L. 102-233, Sec. 104, amended par. (2)
generally, substituting provisions setting forth termination date of
Financing Corporation borrowing authority for provisions relating to
investment of proceeds of obligations of such Corporation.
Subsec. (k)(3). Pub. L. 102-233, Sec. 302(b), substituted ``Thrift
Depositor Protection Oversight Board'' for ``Oversight Board''.
1989--Subsec. (a). Pub. L. 101-73, Sec. 512(2), substituted
``Federal Housing Finance Board'' for ``Board''.
Subsec. (b)(1)(B). Pub. L. 101-73, Sec. 512(2), substituted
``Federal Housing Finance Board'' for ``Federal Home Loan Bank Board''.
Subsec. (b)(5). Pub. L. 101-73, Sec. 701(b)(2), substituted
``Chairperson'' for ``Chairman''.
Pub. L. 101-73, Sec. 512(2), substituted ``Federal Housing Finance
Board'' for ``Federal Home Loan Bank Board''.
Subsecs. (b)(6)(B), (7)(B), (8), (c). Pub. L. 101-73, Sec. 512(2),
substituted ``Federal Housing Finance Board'' for ``Board'' wherever
appearing.
Subsec. (c)(2). Pub. L. 101-73, Sec. 512(3), inserted ``prior to
August 9, 1989, and thereafter to transfer the proceeds of any
obligation issued by the Financing Corporation to the FSLIC Resolution
Fund''.
Subsec. (c)(9). Pub. L. 101-73, Sec. 512(4), struck out ``or section
1725(b) of this title'' after ``with the provisions of this section''.
Subsec. (d)(1). Pub. L. 101-73, Sec. 512(2), substituted ``Federal
Housing Finance Board'' for ``Board'' wherever appearing.
Subsec. (d)(4). Pub. L. 101-73, Sec. 512(5), amended generally the
portion of par. (4) appearing before the table. Prior to amendment, such
portion read as follows: ``With respect to the first $1,000,000,000
which the Board may require the Federal Home Loan Banks to invest in
capital stock of the Financing Corporation under this subsection, the
amount which each Federal Home Loan Bank (or any successor to such bank)
shall invest shall be determined by the Board by applying to the total
amount of such investment by all such banks the percentage appearing in
the following table for each such bank:''.
Subsec. (d)(5). Pub. L. 101-73, Sec. 512(6), substituted ``the
$1,000,000,000 amount referred to in paragraph (4) which the Federal
Housing Finance Board'' for ``$1,000,000,000 which the Board''.
Pub. L. 101-73, Sec. 512(2), substituted ``by the Federal Housing
Finance Board'' for ``by the Board''.
Subsec. (d)(5)(A), (B). Pub. L. 101-73, Sec. 512(1), which directed
the amendment of this section by substituting ``Savings Association
Insurance Fund member'' for ``insured institution'' wherever appearing,
was executed by substituting ``Savings Association Insurance Fund
members'' for ``insured institutions'', as the probable intent of
Congress.
Subsec. (d)(6)(A). Pub. L. 101-73, Sec. 512(2), substituted
``Federal Housing Finance Board'' for ``Board'' in introductory
provisions and in cls. (i) and (ii).
Subsec. (d)(6)(A)(iii). Pub. L. 101-73, Sec. 512(7), struck out
``available for dividends'' after ``use of net earnings''.
Subsec. (d)(6)(B), (C). Pub. L. 101-73, Sec. 512(2), substituted
``Federal Housing Finance Board'' for ``Board''.
Subsec. (d)(6)(D). Pub. L. 101-73, Sec. 512(8), struck out
``available for dividends'' after ``net earnings''.
Subsec. (d)(6)(E). Pub. L. 101-73, Sec. 512(9), struck out
``available for dividends'' after ``Of the net earnings''.
Pub. L. 101-73, Sec. 512(2), substituted ``Federal Housing Finance
Board'' for ``Board''.
Subsec. (d)(6)(F). Pub. L. 101-73, Sec. 512(10), struck out subpar.
(F) which defined ``net earnings available for dividends''.
Subsec. (e)(1). Pub. L. 101-73, Sec. 512(2), substituted ``Federal
Housing Finance Board'' for ``Board''.
Subsec. (e)(2). Pub. L. 101-73, Sec. 512(12)(A), redesignated par.
(3) as (2) and struck out former par. (2) which set an annual limit on
net new borrowing by the Financing Corporation.
Pub. L. 101-73, Sec. 512(11), which directed amendment of par.
(2)(A), was executed, as the probable intent of Congress, to the
introductory text of par. (2), to par. (2)(A), and to par. (2)(B), as
follows: striking out ``used to'' after ``issued by the Financing
Corporation'' in the introductory text, inserting ``used to'' before
``purchase'' and inserting ``prior to August 9, 1989, and thereafter
transferred to the FSLIC Resolution Fund'' before ``; or'' in subpar.
(A), and by inserting ``used to'' before ``refund'' in subpar. (B).
Pub. L. 101-73, Sec. 512(2), substituted ``Federal Housing Finance
Board'' for ``Board''.
Subsec. (e)(3). Pub. L. 101-73, Sec. 512(12)(A), redesignated par.
(4) as (3). Former par. (3) redesignated (2).
Subsec. (e)(4). Pub. L. 101-73, Sec. 512(2), (12)(A), redesignated
par. (5) as (4) and substituted ``Federal Housing Finance Board'' for
``Board''. Former par. (4) redesignated (3).
Subsec. (e)(5). Pub. L. 101-73, Sec. 512(12)(A), redesignated par.
(6) as (5). Former par. (5) redesignated (4).
Subsec. (e)(6). Pub. L. 101-73, Sec. 512(12), redesignated par. (7)
as (6) and substituted ``FSLIC Resolution Fund'' for ``Federal Savings
and Loan Insurance Corporation''. Former par. (6) redesignated (5).
Subsec. (e)(7), (8). Pub. L. 101-73, Sec. 512(12)(A), redesignated
pars. (8) and (9) as (7) and (8), respectively. Former par. (7)
redesignated (6).
Subsec. (e)(9), (10). Pub. L. 101-73, Secs. 512(2), (12)(A),
701(b)(2), redesignated par. (10) as (9) and substituted ``Chairperson''
for ``Chairman'' and ``Federal Housing Finance Board'' for ``Board''.
Former par. (9) redesignated (8).
Subsec. (f). Pub. L. 101-73, Sec. 512(13), amended subsec. (f)
generally, substituting provisions enumerating various sources from
which Financing Corporation shall obtain funds for anticipated interest
payments, issuance costs, and custodial fees on obligations issued from
preenactment assessments, new assessment authority, and receivership
proceeds, for former provisions which had outlined assessment authority
of Financing Corporation, setting up supplementary assessment authority,
setting limits on total amount assessed, and providing for termination
assessments.
Subsec. (g)(1). Pub. L. 101-73, Sec. 512(14), inserted reference to
before August 9, 1989, and after August 9, 1989, in capital certificates
issued by the FSLIC Resolution Fund.
Pub. L. 101-73, Sec. 512(2), substituted ``Federal Housing Finance
Board'' for ``Board''.
Subsec. (g)(2). Pub. L. 101-73, Sec. 512(15), inserted at end ``For
purposes of the foregoing, the Financing Corporation shall be deemed to
hold noninterest bearing instruments that it lends temporarily to
primary United States Treasury dealers in order to enhance market
liquidity and facilitate deliveries, provided that United States
Treasury securities of equal or greater value have been delivered as
collateral.''
Subsec. (i). Pub. L. 101-73, Sec. 713, redesignated subsec. (j) as
(i) and struck out former subsec. (i) which related to Federal Savings
and Loan Insurance Corporation Industry Advisory Committee.
Subsec. (i)(1)(A). Pub. L. 101-73, Sec. 512(16), added subpar. (A)
and struck out former subpar. (A) which read as follows: ``the date by
which all stock purchased by the Financing Corporation in the Federal
Savings and Loan Insurance Corporation has been retired; or''.
Subsec. (i)(2). Pub. L. 101-73, Sec. 512(2), substituted ``Federal
Housing Finance Board'' for ``Board'' wherever appearing.
Subsec. (j). Pub. L. 101-73, Sec. 713, redesignated subsec. (k) as
(j). Former subsec. (j) redesignated (i).
Pub. L. 101-73, Sec. 512(2), substituted ``Federal Housing Finance
Board'' for ``Board''.
Subsec. (k). Pub. L. 101-73, Sec. 713, redesignated subsec. (l) as
(k). Former subsec. (k) redesignated (j).
Subsec. (k)(1). Pub. L. 101-73, Sec. 512(17)(A), substituted
definition of ``Savings Association Insurance Fund member'' for
definition of ``insured institution''.
Subsec. (k)(2). Pub. L. 101-73, Sec. 512(17)(B), redesignated par.
(3) as (2) and struck out former par. (2) which defined ``insured
member''.
Subsec. (k)(3), (4). Pub. L. 101-73, Sec. 512(10), (17)(B), added
par. (4) and redesignated pars. (3) and (4) as (2) and (3),
respectively.
Subsec. (l). Pub. L. 101-73, Sec. 713, redesignated subsec. (l) as
(k).
Effective and Termination Dates of 1996 Amendment
Section 2703(c) of Pub. L. 104-208 provided that:
``(1) In general.--Subsections (a) [amending this section] and (c)
[probably should be (b), amending section 1817 of this title] and the
amendments made by such subsections shall apply with respect to
semiannual periods which begin after December 31, 1996.
``(2) Termination of certain assessment rates.--Subparagraph (A) of
section 21(f)(2) of the Federal Home Loan Bank Act [subsec. (f)(2) of
this section] (as amended by subsection (a)) shall not apply after the
earlier of--
``(A) December 31, 1999; or
``(B) the date as of which the last savings association ceases
to exist.''
Effective Date of 1992 Amendment
Section 1618 of Pub. L. 102-550 provided that: ``Except as otherwise
provided by a specific provision of this subtitle [subtitle B
(Secs. 1611-1618) of title XVI of Pub. L. 102-550, amending this
section, sections 1441a, 1441b, 1821, 3345, and 3348 of this title and
provisions set out as a note under section 1441a of this title], the
amendments made by this subtitle to the Resolution Trust Corporation
Refinancing, Restructuring, and Improvement Act of 1991 [Pub. L. 102-
233; see Short Title of 1991 Amendment note set out under section 1421
of this title] and the Federal Home Loan Bank Act [12 U.S.C. 1421 et
seq.] shall take effect as if such amendments had been included in the
Resolution Trust Corporation Refinancing, Restructuring, and Improvement
Act of 1991 [Pub. L. 102-233] as of the date of the enactment of such
Act [Dec. 12, 1991].''
Effective Date of 1991 Amendment
Section 318 of Pub. L. 102-233 provided that: ``The effective date
of the Resolution Trust Corporation Thrift Depositor Protection Reform
Act of 1991 [title III of Pub. L. 102-233, amending this section,
sections 1441a, 1441b, 1786, 1818, 1821, 1833b, and 1833e of this title,
sections 5313 and 5314 of Title 5, Government Organization and
Employees, and section 11 of the Inspector General Act of 1978, Pub. L.
95-452, set out in the Appendix to Title 5, enacting provisions set out
as notes under section 1441a of this title, and amending provisions set
out as notes under sections 1437 and 1441a of this title] shall be
February 1, 1992.''
Transfer of Functions
Federal Savings and Loan Insurance Corporation abolished and
functions transferred, see sections 401 to 406 of Pub. L. 101-73, set
out as a note under section 1437 of this title.
Abolition of Thrift Depositor Protection Oversight Board
Thrift Depositor Protection Oversight Board abolished, see section
14(a)-(d) of Pub. L. 105-216, set out as a note under section 1441a of
this title.
Prohibition on Deposit Shifting
Section 2703(d) of Pub. L. 104-208 provided that:
``(1) In general.--Effective as of the date of the enactment of this
Act [Sept. 30, 1996] and ending on the date provided in subsection
(c)(2) of this section [set out as a note above], the Comptroller of the
Currency, the Board of Directors of the Federal Deposit Insurance
Corporation, the Board of Governors of the Federal Reserve System, and
the Director of the Office of Thrift Supervision shall take appropriate
actions, including enforcement actions, denial of applications, or
imposition of entrance and exit fees as if such transactions qualified
as conversion transactions pursuant to section 5(d) of the Federal
Deposit Insurance Act [12 U.S.C. 1815(d)], to prevent insured depository
institutions and depository institution holding companies from
facilitating or encouraging the shifting of deposits from SAIF-
assessable deposits to BIF-assessable deposits (as defined in section
21(k) of the Federal Home Loan Bank Act [12 U.S.C. 1441(k)]) for the
purpose of evading the assessments imposed on insured depository
institutions with respect to SAIF-assessable deposits under section 7(b)
of the Federal Deposit Insurance Act [12 U.S.C. 1817(b)] and section
21(f)(2) of the Federal Home Loan Bank Act [12 U.S.C. 1441(f)(2)].
``(2) Regulations.--The Board of Directors of the Federal Deposit
Insurance Corporation may issue regulations, including regulations
defining terms used in paragraph (1), to prevent the shifting of
deposits described in such paragraph.
``(3) Rule of construction.--No provision of this subsection shall
be construed as prohibiting conduct or activity of any insured
depository institution which--
``(A) is undertaken in the ordinary course of business of such
depository institution; and
``(B) is not directed towards the depositors of an insured
depository institution affiliate (as defined in section 2(k) of the
Bank Holding Company Act of 1956 [12 U.S.C. 1841(k)]) of such
depository institution.''
State Cooperative Banks Deemed Insured Institutions Under Subsection
(f)(4)(F)
Pub. L. 100-202, Sec. 101(f) [title III, Sec. 301], Dec. 22, 1987,
101 Stat. 1329-187, 1329-211, provided that any cooperative bank
established under the law of any State which was directed by the State
banking authority to obtain Federal deposit insurance between Jan. 1,
1985, and Jan. 1, 1987, would be deemed to be an insured institution
described in 12 U.S.C. 1441(f)(4)(F).
Sunset and Savings Provision
Section 416 of Pub. L. 100-86 provided that:
``(a) In General.--The following provisions shall cease to be
effective on the date that a notice is published in the Federal Register
by the Financing Corporation pursuant to subsection (b):
``(1) Paragraphs (2), (3), and (5) of--
``(A) section 9(a) of the Home Owners' Loan Act of 1933 [12
U.S.C. 1467(a)(2), (3), (5)]; and
``(B) section 415(a) of the National Housing Act [12 U.S.C.
1730h(a)(2), (3), (5)],
(as added by subsections (a) and (b), respectively, of section 402
of this title).
``(2) Section 10 of the Home Owners' Loan Act of 1933 [12 U.S.C.
1467a] and section 416 of the National Housing Act [12 U.S.C. 1730i]
(as added by subsections (a) and (b), respectively, of section 404
of this title).
``(3) Paragraph (6) of section 406(f) of the National Housing
Act [12 U.S.C. 1729(f)(6)] (as added by section 405 of this title).
``(4) Section 22A of the Federal Home Loan Bank Act [12 U.S.C.
1442a] (as added by section 407(d) of this title).
``(5) Section 411 of this title [12 U.S.C. 1437 note].
``(b) Notice of Completion of Net New Borrowing by Financing
Corporation.--When the Financing Corporation established pursuant to
section 21 of the Federal Home Loan Bank Act [12 U.S.C. 1441] has
completed all net new borrowing under such section, the Financing
Corporation shall publish a notice of such fact in the Federal Register.
[Notice that the Financing Corporation had completed all net new
borrowings and would issue no additional obligations after Dec. 12,
1991, was published Mar. 30, 1992, 57 F.R. 10763.]
``(c) Savings Provision.--The termination by subsection (a) of the
effectiveness of any provision described in such subsection shall not be
construed to affect or limit any authority of the Federal Home Loan Bank
Board or the Federal Savings and Loan Insurance Corporation to prescribe
any regulation or engage in any activity with respect to any association
or insured institution under any other provision of law.''
Section Referred to in Other Sections
This section is referred to in sections 1430, 1436, 1441b, 1821a of
this title.
