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12 U.S.C. § 1436 — Reserves and dividends; emergency suspensions of requirements
Federal law — U.S. Code and appendices · legal_authorities
**(a) Accumulation and maintenance of reserves; payment of dividends** Each Federal Home Loan Bank may carry to a reserve account from time-to-time such portion of its net earnings as may be determined by its board of directors. Each Federal Home Loan Bank shall establish such additional reserves and/or make such charge-offs on account of depreciation or impairment of its assets as the Director shall require from time to time. No dividends shall be paid except out of previously retained earnings or current net earnings remaining after reductions for all reserves, chargeoffs, purchases of capital certificates of the Financing Corporation, and payments relating to the Funding Corporation required under this chapter have been provided for, other than chargeoffs or expenses incurred by a Bank in connection with the purchase of capital stock of the Financing Corporation under [section 1441 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441&num=0&edition=prelim) or payments relating to the Funding Corporation Principal Fund under [section 1441b(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441b/e&num=0&edition=prelim). The reserves of each Federal Home Loan Bank shall be invested, subject to such regulations, restrictions, and limitations as may be prescribed by the Director, in direct obligations of the United States, in obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association, in mortgages, obligations, or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or [section 1455 of this title](https://uscode.house.gov/vie
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Source file: Laws/federal/codes/united-states-code/title-12/section-1436-reserves-and-dividends-emergency-suspensions-of-requirements--9da49236d3.md
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Source location: Title 12, Chapter 11, § 1436; chapter-011-federal-home-loan-banks.md
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**(a) Accumulation and maintenance of reserves; payment of dividends** Each Federal Home Loan Bank may carry to a reserve account from time-to-time such portion of its net earnings as may be determined by its board of directors. Each Federal Home Loan Bank shall establish such additional reserves and/or make such charge-offs on account of depreciation or impairment of its assets as the Director shall require from time to time. No dividends shall be paid except out of previously retained earnings or current net earnings remaining after reductions for all reserves, chargeoffs, purchases of capital certificates of the Financing Corporation, and payments relating to the Funding Corporation required under this chapter have been provided for, other than chargeoffs or expenses incurred by a Bank in connection with the purchase of capital stock of the Financing Corporation under [section 1441 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441&num=0&edition=prelim) or payments relating to the Funding Corporation Principal Fund under [section 1441b(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441b/e&num=0&edition=prelim). The reserves of each Federal Home Loan Bank shall be invested, subject to such regulations, restrictions, and limitations as may be prescribed by the Director, in direct obligations of the United States, in obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association, in mortgages, obligations, or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or [section 1455 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1455&num=0&edition=prelim), and in such securities as fiduciary and trust funds may be invested in under the laws of the State in which the Federal Home Loan Bank is located.
**(b) Assistance to member institutions in event of severe financial conditions** Notwithstanding subsection (a) or any other provision of this chapter, if the Director determines that severe financial conditions exist threatening the stability of member institutions, the Director may suspend temporarily the requirements of subsection (a) that a portion of net earnings be set aside semiannually by each Federal Home Loan Bank to a reserve account and permit each Federal Home Loan Bank to declare and pay dividends out of undivided profits.
**(c) Exception in case of losses in connection with Financing Corporation stock**
(1) **In general** — Notwithstanding subsection (a) of this section, if—
(A) a Federal Home Loan Bank incurs a chargeoff or an expense in connection with such bank’s investment in the stock of the Financing Corporation under [section 1441 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441&num=0&edition=prelim);
(B) the Director determines there is an extraordinary need for the member institutions of the bank to receive dividends; and
(C) the bank has reduced all reserves (other than the reserve account required by the first 2 sentences of subsection (a)) to zero,
the Director may authorize such bank to declare and pay dividends out of undivided profits (as such term is defined in [section 1441(d)(7) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441/d/7&num=0&edition=prelim)) or the reserve account required by the first 2 sentences of subsection (a).
(2) **Requirements of [section 1441 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441&num=0&edition=prelim) not affected** — Notwithstanding any payment of dividends by any Federal Home Loan Bank pursuant to an authorization by the Director under paragraph (1), the applicable provisions of [section 1441 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1441&num=0&edition=prelim) shall continue to apply with respect to such bank, and to such bank’s investment in the Financing Corporation, in the same manner and to the same extent as if such payment had not been made.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment** Notwithstanding any other provision of law, the Director 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 Director 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 Director 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 Director, 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 m
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1441
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to issue; terms and conditions; validity** The Corporation is authorized, upon such terms and conditions as it may prescribe, to borrow, to give security, to pay interest or other return, and to issue notes, debentures, bonds, or other obligations, or other securities, including without limitation mortgage-backed securities guaranteed by the Government National Mortgage Association in the manner provided in [section 1721(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1721/g&num=0&edition=prelim). Any obligation or security of the Corporation shall be valid and binding notwithstanding that a person or persons purporting to have executed or attested the same may have died, become under disability, or ceased to hold office or employment before the issuance thereof.
**(b) Prohibitions and restrictions; creation of liens and charges; rank and priority; causes of action to enforce; jurisdiction; service of process** The Corporation may, by regulation or by writing executed by the Corporation, establish prohibitions or restrictions upon the creation of indebtedness or obligations of the Corporation or of liens or charges upon property of the Corporation, including after-acquired property, and create liens and charges, which may be floating liens or charges, upon all or any part or parts of the property of the Corporation, including after-acquired property. Such prohibitions, restrictions, liens, and charges shall have such effect, including without limitation on the generality of the foregoing such rank and priority, as may be provided by regulations of the Corporation or by writings executed by the Corporation, and shall create causes of action which may be enforced by action in the United States District Court f
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1455
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment; abolishment of General Reinsurance Account** The Secretary shall establish as of July 1, 1954, in the Mutual Mortgage Insurance Fund a General Surplus Account and a Participating Reserve Account. All of the assets of the General Reinsurance Account shall be transferred to the General Surplus Account whereupon the General Reinsurance Account shall be abolished. There shall be transferred from the various group accounts to the Participating Reserve Account as of July 1, 1954, an amount equal to the aggregate amount which would have been distributed under the provisions of this section in effect on June 30, 1954, if all outstanding mortgages in such group accounts had been paid in full on said date. All of the remaining balances of said group accounts shall as of said date be transferred to the General Surplus Account whereupon all of said group accounts shall be abolished.
**(b) Credits and charges** The aggregate net income thereafter received or any net loss thereafter sustained by the Mutual Mortgage Insurance Fund in any semiannual period shall be credited or charged to the General Surplus Account and/or the Participating Reserve Account in such manner and amounts as the Secretary may determine to be in accord with sound actuarial and accounting practice.
**(c) Distribution of funds to terminating mortgagors** Upon termination of the insurance obligation of the Mutual Mortgage Insurance Fund by payment of any mortgage insured thereunder, the Secretary is authorized to distribute to the mortgagor a share of the Participating Reserve Account in such manner and amount as the Secretary shall determine to be equitable and in accordance with sound actuarial and accounting practice: Provided, That, in no event, shall any such distributable share exceed
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1716b
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general**
(1) **All advances** — Each Federal Home Loan Bank is authorized to make secured advances to its members upon collateral sufficient, in the judgment of the Bank, to fully secure advances obtained from the Bank under this section or [section 1431(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1431/g&num=0&edition=prelim).
(2) **Purposes of advances** — A long-term advance may only be made for the purposes of—
(A) providing funds to any member for residential housing finance; and
(B) providing funds to any community financial institution for small businesses, small farms, small agri-businesses, and community development activities.
(3) **Collateral** — A Bank, at the time of origination or renewal of a loan or advance, shall obtain and maintain a security interest in collateral eligible pursuant to one or more of the following categories:
(A) Fully disbursed, whole first mortgages on improved residential property (not more than 90 days delinquent), or securities representing a whole interest in such mortgages.
(B) Securities issued, insured, or guaranteed by the United States Government or any agency thereof (including without limitation, mortgage-backed securities issued or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Corporation, and the Government National Mortgage Association).
(C) Cash or deposits of a Federal Home Loan Bank.
(D) Other real estate related collateral acceptable to the Bank if such collateral has a readily ascertainable value and the Bank can perfect its interest in the collateral.
(E) Secured loans for small business, agriculture, or community development activities or securities representing a whole interest in such sec
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1430
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose** The purpose of the Resolution Funding Corporation is to provide funds to the Resolution Trust Corporation to enable the Resolution Trust Corporation to carry out the provisions of this chapter.
**(b) Establishment** There is established a corporation to be known as the Resolution Funding Corporation.
**(c) Management of Funding Corporation**
(1) **Directorate** — The Funding 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 office).
(B) 2 members selected by the Thrift Depositor Protection Oversight Board from among the presidents of the Federal Home Loan Banks.
(2) **Terms** — Of the 2 members appointed under paragraph (1)(B), 1 shall be appointed for an initial term of 2 years and 1 shall be appointed for an initial term of 3 years. Thereafter, such members shall be appointed for a term of 3 years.
(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 as the president of such bank.
(5) **Chairperson** — The Thrift Depositor Protection Oversight Board shall select the chairperson of the Directorate from among the 3 members of the Directorate.
(6) **Staff**
(A) *No paid employees
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 1441b
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Federal law — U.S. Code and appendices · legal_authorities
Page 308
TITLE 12—BANKS AND BANKING
§ 1436
rector under this chapter shall be lawful invest-
ments, 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 or
officers thereof. The Federal reserve banks are
authorized to act as depositaries, custodians,
and/or fiscal agents for Federal Home Loan
Banks in the general performance of their pow-
ers under this chapter. All obligations of Fed-
eral Home Loan Banks shall plainly state that
such obligations are not obligations of the
United States and are not guaranteed by the
United States.
(July 22, 1932, ch. 522, § 15, 47 Stat. 736; Pub. L.
101–73, title VII, § 701(b)(1), (3)(A), Aug. 9, 1989,
103 Stat. 412; Pub. L. 110–289, div. A, title II,
§ 1204(7), July 30, 2008, 122 Stat. 2786.)
Editorial Notes
AMENDMENTS
2008—Pub. L. 110–289 inserted ‘‘or the Director’’ after
‘‘the Board’’.
1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘board’’.
§ 1436. Reserves and dividends; emergency sus-
pensions of requirements
(a) Accumulation and maintenance of reserves;
payment of dividends
Each Federal Home Loan Bank may carry to a
reserve account from time-to-time such portion
of its net earnings as may be determined by its
board of directors. Each Federal Home Loan
Bank shall establish such additional reserves
and/or make such charge-offs on account of de-
preciation or impairment of its assets as the Di-
rector shall require from time to time. No divi-
dends shall be paid except out of previously re-
tained earnings or current net earnings remain-
ing after reductions for all reserves, chargeoffs,
purchases of capital certificates of the Financ-
ing Corporation, and payments relati
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 1436
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.