US LAWS, STATUTES & CODES ON-LINE

US Supreme Court Decisions On-Line | US Laws



§ 1453. —  Capitalization of Federal Home Loan Mortgage 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: 12USC1453]

 
                       TITLE 12--BANKS AND BANKING
 
           CHAPTER 11A--FEDERAL HOME LOAN MORTGAGE CORPORATION
 
Sec. 1453. Capitalization of Federal Home Loan Mortgage 
        Corporation
        

(a) Common stock; issuance

    The common stock of the Corporation shall consist of voting common 
stock, which shall be issued to such holders in the manner and amount, 
and subject to any limitations on concentration of ownership, as may be 
established by the Corporation.

(b) Par value

    The voting common stock shall have such par value and other 
characteristics as the Corporation provides. The voting common stock 
shall be vested with all voting rights, each share being entitled to 1 
vote. The free transferability of the voting common stock at all times 
to any person, firm, corporation or other entity shall not be restricted 
except that, as to the Corporation, it shall be transferable only on the 
books of the Corporation.

(Pub. L. 91-351, title III, Sec. 304, July 24, 1970, 84 Stat. 454; Pub. 
L. 101-73, title VII, Sec. 731(d)(1), (3), Aug. 9, 1989, 103 Stat. 432; 
Pub. L. 102-550, title XIII, Sec. 1382(i), Oct. 28, 1992, 106 Stat. 
4004.)


                               Amendments

    1992--Subsec. (a). Pub. L. 102-550, Sec. 1382(i)(2), (3)(C), 
redesignated par. (1) as subsec. (a), struck out provisions of par. 
(1)(A) which related to common stock of Corporation consisting in part 
of nonvoting common stock issued only to Federal home loan banks, 
restate provisions of par. (1)(B) as text of subsec. (a), and 
redesignated par. (2) as subsec. (b).
    Subsec. (b). Pub. L. 102-550, Sec. 1382(i)(1), (3), redesignated 
subsec. (a)(2) as (b), struck out ``nonvoting common stock and the'' 
before ``voting common stock shall have such'', struck out at end 
``Nonvoting common stock of the Corporation shall be evidenced in the 
manner and shall be transferable only to the extent, to the transferees, 
and in the manner, provided by the Corporation.'', and struck out former 
subsec. (b) which read as follows: ``The Federal home loan banks shall 
from time to time subscribe, at such price not less than par as the 
Corporation shall from time to time fix, for such amounts of nonvoting 
common stock as the Corporation prescribes, and such banks shall pay 
therefor at such time or times and in such amount or amounts as may from 
time to time be fixed by call of the Corporation. The amount of the 
payments for which such banks may be obligated under such subscriptions 
shall not exceed a cumulative total of $100,000,000.''
    Subsec. (c). Pub. L. 102-550, Sec. 1382(i)(1), struck out subsec. 
(c) which read as follows: ``Subscriptions of the respective Federal 
home loan banks to nonvoting common stock shall be allocated by the 
Corporation.''
    Subsec. (d). Pub. L. 102-550, Sec. 1382(i)(1), struck out subsec. 
(d) which read as follows: ``The Corporation may retire at any time all 
or any part of the nonvoting common stock of the Corporation, or may 
call for retirement all or any part of the nonvoting common stock of the 
Corporation by (1) publishing a notice of the call in the Federal 
Register or providing such notice in such other manner as the 
Corporation may determine to be appropriate, and (2) depositing with the 
Treasurer of the United States, for the purpose of such retirement, 
funds sufficient to effect such retirement. No call for the retirement 
of any nonvoting common stock shall be made, and no nonvoting common 
stock shall be retired without call, if immediately after such action, 
the total of the nonvoting common stock not called for retirement and of 
the reserves and surplus of the Corporation would be less than 
$100,000,000. The retirement of nonvoting common stock shall be at the 
par value thereof, or at the price at which such nonvoting common stock 
was issued if such price is greater than par value. No declaration of 
any dividend on nonvoting common stock of the Corporation shall be 
effective with respect to nonvoting common stock which at the time of 
such declaration is the subject of an outstanding retirement call the 
effective date of which has arrived.''
    1989--Subsec. (a). Pub. L. 101-73, Sec. 731(d)(1), amended subsec. 
(a) generally. Prior to amendment, subsec. (a) read as follows: ``The 
capital stock of the Corporation shall consist of nonvoting common stock 
which shall be issued only to Federal home loan banks and shall have 
such par value and such other characteristics as the Corporation 
prescribes. Stock of the Corporation shall be evidenced in such manner 
and shall be transferable only to such extent, to such transferees, and 
in such manner as the Corporation prescribes.''
    Subsec. (b). Pub. L. 101-73, Sec. 731(d)(3)(A), substituted 
``nonvoting common stock'' for ``common stock''.
    Subsec. (c). Pub. L. 101-73, Sec. 731(d)(3)(B), substituted 
``nonvoting common stock'' for ``such stock''.
    Subsec. (d). Pub. L. 101-73, Sec. 731(d)(3)(C), inserted ``nonvoting 
common'' before ``stock'' wherever appearing.


                           Conversion of Stock

    Section 731(d)(2) of Pub. L. 101-73 provided that: ``On the date of 
the enactment of this Act [Aug. 9, 1989], each share of outstanding 
senior participating preferred stock of the Federal Home Loan Mortgage 
Corporation, with a par value of $2.50 per share, shall be changed into 
and shall become 1 share of voting common stock of the Corporation. Such 
voting common stock shall, with respect to the nonvoting common stock of 
the Corporation, retain all of the rights, priorities and privileges of 
the senior participating preferred stock. The transformation of the 
senior participating preferred stock into voting common stock under this 
paragraph shall be deemed to satisfy the obligation of the Corporation 
to redeem senior participating preferred stock for non-callable common 
stock.''



chanrobles.com





ChanRobles Legal Resources:

ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com