§ 4502. — Definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4502]
TITLE 12--BANKS AND BANKING
CHAPTER 46--GOVERNMENT SPONSORED ENTERPRISES
Sec. 4502. Definitions
For purposes of this chapter:
(1) Affiliate
Except as provided by the Director, the term ``affiliate'' means
any entity that controls, is controlled by, or is under common
control with, an enterprise.
(2) Capital distribution
(A) In general
The term ``capital distribution'' means--
(i) any dividend or other distribution in cash or in
kind made with respect to any shares of, or other ownership
interest in, an enterprise, except a dividend consisting
only of shares of the enterprise;
(ii) any payment made by an enterprise to repurchase,
redeem, retire, or otherwise acquire any of its shares,
including any extension of credit made to finance an
acquisition by the enterprise of such shares; and
(iii) any transaction that the Director determines by
regulation to be, in substance, the distribution of capital.
(B) Exception
Any payment made by an enterprise to repurchase its shares
for the purpose of fulfilling an obligation of the enterprise
under an employee stock ownership plan that is qualified under
section 401 of title 26 or any substantially equivalent plan, as
determined by the Director, shall not be considered a capital
distribution.
(3) Compensation
The term ``compensation'' means any payment of money or the
provision of any other thing of current or potential value in
connection with employment.
(4) Core capital
The term ``core capital'' means, with respect to an enterprise,
the sum of the following (as determined in accordance with generally
accepted accounting principles):
(A) The par or stated value of outstanding common stock.
(B) The par or stated value of outstanding perpetual,
noncumulative preferred stock.
(C) Paid-in capital.
(D) Retained earnings.
The core capital of an enterprise shall not include any amounts that
the enterprise could be required to pay, at the option of investors,
to retire capital instruments.
(5) Director
The term ``Director'' means the Director of the Office of
Federal Housing Enterprise Oversight of the Department of Housing
and Urban Development.
(6) Enterprise
The term ``enterprise'' means--
(A) the Federal National Mortgage Association and any
affiliate thereof; and
(B) the Federal Home Loan Mortgage Corporation and any
affiliate thereof.
(7) Executive officer
The term ``executive officer'' means, with respect to an
enterprise, the chairman of the board of directors, chief executive
officer, chief financial officer, president, vice chairman, any
executive vice president, and any senior vice president in charge of
a principal business unit, division, or function.
(8) Low-income
The term ``low-income'' means--
(A) in the case of owner-occupied units, income not in
excess of 80 percent of area median income; and
(B) in the case of rental units, income not in excess of 80
percent of area median income, with adjustments for smaller and
larger families, as determined by the Secretary.
(9) Median income
The term ``median income'' means, with respect to an area, the
unadjusted median family income for the area, as determined and
published annually by the Secretary.
(10) Moderate-income
The term ``moderate-income'' means--
(A) in the case of owner-occupied units, income not in
excess of area median income; and
(B) in the case of rental units, income not in excess of
area median income, with adjustments for smaller and larger
families, as determined by the Secretary.
(11) Mortgage purchases
The term ``mortgage purchases'' includes mortgages purchased for
portfolio or securitization.
(12) Multifamily housing
The term ``multifamily housing'' means a residence consisting of
more than 4 dwelling units.
(13) New program
The term ``new program'' means any program for the purchasing,
servicing, selling, lending on the security of, or otherwise dealing
in, conventional mortgages that--
(A) is significantly different from programs that have been
approved under this Act or that were approved or engaged in by
an enterprise before October 28, 1992; or
(B) represents an expansion, in terms of the dollar volume
or number of mortgages or securities involved, of programs above
limits expressly contained in any prior approval.
(14) Office
The term ``Office'' means the Office of Federal Housing
Enterprise Oversight of the Department of Housing and Urban
Development.
(15) Secretary
The term ``Secretary'' means the Secretary of Housing and Urban
Development.
(16) Single family housing
The term ``single family housing'' means a residence consisting
of 1 to 4 dwelling units.
(17) State
The term ``State'' means the States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, Guam, the Virgin
Islands, American Samoa, the Trust Territory of the Pacific Islands,
and any other territory or possession of the United States.
(18) Total capital
The term ``total capital'' means, with respect to an enterprise,
the sum of the following:
(A) The core capital of the enterprise; \1\
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(B) A general allowance for foreclosure losses, which--
(i) shall include an allowance for portfolio mortgage
losses, an allowance for nonreimbursable foreclosure costs
on government claims, and an allowance for liabilities
reflected on the balance sheet for the enterprise for
estimated foreclosure losses on mortgage-backed securities;
and
(ii) shall not include any reserves of the enterprise
made or held against specific assets.
(C) Any other amounts from sources of funds available to
absorb losses incurred by the enterprise, that the Director by
regulation determines are appropriate to include in determining
total capital.
(19) Very low-income
The term ``very low-income'' means--
(A) in the case of owner-occupied units, income not in
excess of 60 percent of area median income; and
(B) in the case of rental units, income not in excess of 60
percent of area median income, with adjustments for smaller and
larger families, as determined by the Secretary.
(Pub. L. 102-550, title XIII, Sec. 1303, Oct. 28, 1992, 106 Stat. 3942.)
References in Text
This chapter, referred to in text, was in the original ``this
title'', meaning title XIII of Pub. L. 102-550, Oct. 28, 1992, 106 Stat.
3941, which is classified principally to this chapter. For complete
classification of title XIII to the Code, see Short Title note set out
under section 4501 of this title and Tables.
This Act, referred to in par. (13)(A), is Pub. L. 102-550, Oct. 28,
1992, 106 Stat. 3672, known as the Housing and Community Development Act
of 1992. For complete classification of this Act to the Code, see Short
Title of 1992 Amendment note set out under section 5301 of Title 42, The
Public Health and Welfare, and Tables.
Termination of Trust Territory of the Pacific Islands
For termination of Trust Territory of the Pacific Islands, see note
set out preceding section 1681 of Title 48, Territories and Insular
Possessions.
Section Referred to in Other Sections
This section is referred to in sections 1452, 1454, 1717, 1718,
1723a of this title.
