12 U.S.C. § 1446 — Liquidation or reorganization; acquisition

Page 336 TITLE 12—BANKS AND BANKING § 1442a 1 See 2008 Amendment note below. may prescribe, to make available to the board in con- fidence for its use and the use of any Federal Home Loan Bank such reports, records, or other information as may be available, relating to the condition of insti- tutions with respect to which any such Federal Home Loan Bank has had or contemplates having trans- actions under this chapter or relating to persons whose obligations are offered to or held by any Federal Home Loan Bank, and to make through their examiners or other employees, for the confidential use of the board or any Federal Home Loan Bank, examinations of such institutions. ‘‘(b) Every institution which shall apply for advances under this chapter shall, as a condition precedent thereto, consent to such examination as the bank or the board may require for the purposes of this chapter and/or that reports of examinations by constituted au- thorities may be furnished by such authorities to the bank or the board upon request therefor.’’ § 1442a. Repealed. Pub. L. 106–102, title VI, § 606(c), Nov. 12, 1999, 113 Stat. 1454 Section, act July 22, 1932, ch. 522, § 22A, as added Aug. 10, 1987, Pub. L. 100–86, title IV, § 407(d), 101 Stat. 617, re- lated to informal review of certain supervisory deci- sions. § 1443. Forms of bank stock and obligations Any stock, debentures, bonds, notes, or other obligations issued under the authority of this chapter may be issued in uncertificated form, utilizing a book entry method, or in certificated form under such rules, regulations, or guidelines as the Director 1 may provide. (July 22, 1932, ch. 522, § 23, 47 Stat. 739; Pub. L. 101–73, title VII, § 717, Aug. 9, 1989, 103 Stat. 422; Pub. L. 110–289, div. A, title II, § 1204(8), (12), July 30, 2008, 122 Stat. 2786.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289, which directed amendment of the Federal Home Loan Bank Act (this chapter) by sub- stituting ‘‘the Director’’ for ‘‘the Board’’ and ‘‘Direc- tor’’ for ‘‘Federal Housing Finance Board’’ wherever ap- pearing, was executed to this section by substituting ‘‘the Director’’ for ‘‘the Board of Directors of the Fed- eral Housing Finance Board’’, to reflect the probable intent of Congress. 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘In order that the Federal Home Loan Banks may be supplied with such forms of stock, debentures, and bonds as may be necessary under this chapter, the Secretary of the Treasury is authorized to prepare such forms thereof as shall be suitable and approved by the board, which shall be held in the Treasury subject to delivery, upon order of the board. The engraved plates, dies, and bed pieces executed in connection therewith shall remain in the custody of the Secretary of the Treasury. The board shall reimburse the Secretary of the Treasury for any expense incurred in the preparation, custody, and delivery of such stock, debentures, and bonds.’’ § 1444. Eligibility to membership in banks (a) Any organization organized under the laws of any State and subject to inspection and regu- lation under the banking or similar laws of such State shall be eligible to become a member under this chapter if— (1) it is organized solely for the purpose of supplying credit to its members; (2) its membership (A) is confined exclu- sively to building and loan associations, sav- ings and loan associations, cooperative banks, and homestead associations; or (B) is confined exclusively to savings banks; and (3) of the institutions to which its member- ship is confined which are organized within the State, its membership includes a majority of such institutions. (b) In all respects, but subject to such addi- tional rules and regulations as the Director may provide, any such organization shall be a mem- ber for the purposes of this chapter. (July 22, 1932, ch. 522, § 24, 47 Stat. 739; 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(8), July 30, 2008, 122 Stat. 2786.) Editorial Notes AMENDMENTS 2008—Subsec. (b). Pub. L. 110–289 substituted ‘‘the Di- rector’’ for ‘‘the Board’’. 1989—Subsec. (b). Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘board’’. § 1445. Succession of Federal Home Loan Banks Each Federal Home Loan Bank shall have suc- cession until dissolved by the Director under this chapter or by further act of Congress. (July 22, 1932, ch. 522, § 25, 47 Stat. 740; 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(8), July 30, 2008, 122 Stat. 2786.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289 substituted ‘‘the Director’’ for ‘‘the Board’’. 1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘board’’. § 1446. Liquidation or reorganization; acquisition of assets by other banks; assumption of li- abilities (a) In general Whenever the Director finds that the efficient and economical accomplishment of the purposes of this chapter will be aided by such action, and in accordance with such rules, regulations, and orders as the Director may prescribe, any Fed- eral Home Loan Bank may be liquidated or reor- ganized, and its stock paid off and retired in whole or in part in connection therewith after paying or making provision for the payment of its liabilities. In the case of any such liquidation or reorganization, any other Federal Home Loan Bank may, with the approval of the Director, acquire assets of any such liquidated or reorga- nized bank and assume liabilities thereof, in whole or in part. At least 30 days prior to liqui- dating or reorganizing any Bank under this sec- tion, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hear- ing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5. Page 337 TITLE 12—BANKS AND BANKING § 1451 (b) Voluntary mergers authorized (1) In general Any Federal Home Loan Bank may, with the approval of the Director and of the boards of directors of the Banks involved, merge with another Bank. (2) Regulations required The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any vol- untary merger described in paragraph (1), in- cluding the procedures for Bank member ap- proval. (July 22, 1932, ch. 522, § 26, 47 Stat. 740; 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(8), 1209, 1214, July 30, 2008, 122 Stat. 2786, 2789, 2791.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289, § 1209, designated existing provi- sions as subsec. (a), inserted heading, and added subsec. (b). Pub. L. 110–289, § 1204(8), substituted ‘‘the Director’’ for ‘‘the Board’’ wherever appearing. Subsec. (a). Pub. L. 110–289, § 1214, which directed in- sertion of ‘‘At least 30 days prior to liquidating or reor- ganizing any Bank under this section, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hearing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5.’’ at the end of this section, was executed by making the insertion at the end of subsec. (a), to re- flect the probable intent of Congress and the amend- ment by Pub. L. 110–289, § 1209. See above. 1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘board’’ wherever appearing. § 1447. Repealed. Pub. L. 106–102, title VI, § 606(c), Nov. 12, 1999, 113 Stat. 1454 Section, act July 22, 1932, ch. 522, § 27, as added Pub. L. 103–204, § 18, Dec. 17, 1993, 107 Stat. 2401, related to Housing Opportunity Hotline program. A prior section 1447, act July 22, 1932, ch. 522, § 27, 47 Stat. 740, related to institutions authorized to sub- scribe for stock of banks, prior to repeal by Pub. L. 101–73, title VII, § 704(c), Aug. 9, 1989, 103 Stat. 416. § 1448. Effect of partial invalidity of chapter If any provision of this chapter, or the applica- tion thereof to any person or circumstances, is held invalid, the remainder of the chapter, and the application of such provision to other per- sons or circumstances, shall not be affected thereby. (July 22, 1932, ch. 522, § 28, 47 Stat. 740.) § 1449. Reservation of right to amend or repeal chapter The right to alter, amend, or repeal this chap- ter is expressly reserved. (July 22, 1932, ch. 522, § 30, 47 Stat. 741.) CHAPTER 11A—FEDERAL HOME LOAN MORTGAGE CORPORATION Sec. 1451. Definitions. Sec. 1452. Federal Home Loan Mortgage Corporation. 1453. Capitalization of Federal Home Loan Mort- gage Corporation. 1454. Purchase and sale of mortgages; residential mortgages; conventional mortgages; terms and conditions of sale or other disposition; authority to enter into, perform, and carry out transactions. 1455. Obligations and securities of the Corporation. 1456. Immunity of Corporation; audits and report- ing requirements; data collection; Housing Advisory Council. 1457. Prohibited activities; penalties for violations by organizations, officers and members of organizations, and individuals. 1458. Territorial applicability. 1459. Separability. § 1451. Definitions As used in this chapter— (a) The term ‘‘Board of Directors’’ means the Board of Directors of the Corporation. (b) The term ‘‘Corporation’’ means the Federal Home Loan Mortgage Corporation created by this chapter. (c) The term ‘‘law’’ includes any law of the United States or of any State (including any rule of law or of equity). (d) The term ‘‘mortgage’’ includes such classes of liens as are commonly given or are legally ef- fective to secure advances on, or the unpaid pur- chase price of, real estate under the laws of the State in which the real estate is located or a manufactured home that is personal property under the laws of the State in which the manu- factured home is located together with the cred- it instruments, if any, secured thereby, and in- cludes interests in mortgages. (e) The term ‘‘organization’’ means any cor- poration, partnership, association, business trust, or business entity. (f) The term ‘‘prescribe’’ means to prescribe by regulations or otherwise. (g) The term ‘‘property’’ includes any prop- erty, whether real, personal, mixed, or other- wise, including without limitation on the gen- erality of the foregoing choses in action and mortgages, and includes any interest in any of the foregoing. (h) The term ‘‘residential mortgage’’ means a mortgage which (1) is a mortgage on real estate, in fee simple or under a leasehold having such term as may be prescribed by the Corporation, upon which there is located a structure or struc- tures designed in whole or in part for residential use, or which comprises or includes one or more condominium units or dwelling units (as defined by the Corporation) and (2) has such characteris- tics and meets such requirements as to amount, term, repayment provisions, number of families, status as a lien on such real estate, and other- wise, as may be prescribed by the Corporation. The term ‘‘residential mortgage’’ also includes a loan or advance of credit insured under title I of the National Housing Act [12 U.S.C. 1702 et seq.] whose original proceeds are applied for in order to finance energy conserving improvements, or the addition of a solar energy system, to resi- dential real estate. The term ‘‘residential mort- gage’’ also includes a loan or advance of credit for such purposes, or purchased from any public utility carrying out activities in accordance