12 U.S.C. § 1441 — Financing Corporation

Page 318 TITLE 12—BANKS AND BANKING § 1441 § 1441. Financing Corporation (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 Direc- torate 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 (be- fore 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, employ- ees, or agents of the Federal Home Loan Banks to act for and on behalf of the Financ- ing 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 Financ- ing 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 Director by multiplying the total adminis- trative expenses for any period by the per- centage arrived at by dividing— (i) the aggregate amount the Director re- quired such bank to invest in the Financ- ing Corporation (as of the time of such de- termination) under paragraphs (4) and (5) of subsection (d) (as computed without re- gard to paragraph (3) or (6) of such sub- section); by (ii) the aggregate amount the Director required all Federal Home Loan Banks to invest (as of the time of such determina- tion) under such paragraphs. (C) Administrative expenses defined For purposes of this paragraph, the term ‘‘administrative expenses’’ does not in- clude— (i) issuance costs (as such term is defined in subsection (g)(5)(A)); (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 de- fined in subsection (g)(5)(B)). (8) Regulation by Director The Directorate shall be subject to such reg- ulations, orders, and directions as the Director may prescribe. (9) No compensation from Financing Corpora- tion Members of the Directorate shall receive no pay, allowances, or benefits from the Financ- ing 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 Director 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 Corpora- tion under section 1725(b) of this title prior to August 9, 1989, and thereafter to transfer the proceeds of any obligation issued by the Fi- nancing Corporation to the FSLIC Resolution Fund. (3) To issue debentures, bonds, or other obli- gations 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). (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 capac- ity, and to complain and defend in any action brought by or against the Financing Corpora- tion in any State or Federal court of com- petent jurisdiction. (9) To exercise such incidental powers not inconsistent with the provisions of this sec- tion as are necessary or appropriate to carry out the provisions of this section. Page 319 TITLE 12—BANKS AND BANKING § 1441 (d) Capitalization of Financing Corporation (1) Purchase of capital stock by Federal Home Loan Banks (A) In general Each Federal Home Loan Bank shall in- vest in nonvoting capital stock of the Fi- nancing Corporation at such times and in such amounts as the Director may prescribe under this subsection. (B) Par value; transferability Each share of stock issued by the Financ- ing Corporation to a Federal Home Loan Bank shall have par value in an amount de- termined by the Director and shall be trans- ferable only among the Federal Home Loan Banks in the manner and to the extent pre- scribed by the Director 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 Cor- poration 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 re- quirement contained in the first 2 sen- tences 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 require- ment 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 Over- sight Board pursuant to section 1441b of this title or the Director 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, re- spectively, 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 Director (as the case may be) by multi- plying 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 Fran- cisco ....................................................... 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 Director may require the Federal Home Loan Banks to invest in capital stock of the Financing Corporation under this sub- section, the amount which each Federal Home Loan Bank (or any successor to such bank) shall invest shall be determined by the Direc- tor 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 Sav- ings 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 Insur- ance 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 de- termination by the Director under para- graph (5) (or under subparagraph (B) of this paragraph) exceeds the maximum invest- ment amount applicable with respect to such bank under paragraph (3) at the time of such determination (hereinafter in this para- graph referred to as the ‘‘excess amount’’)— (i) the Director shall require each re- maining Federal Home Loan Bank to in- vest (in addition to the amount deter- mined under paragraph (5) for such re- maining bank and subject to the maximum investment amount applicable with re- spect to such remaining bank under para- graph (3) at the time of such determina- tion) in such capital stock on behalf of the bank in the amount determined under sub- paragraph (B); (ii) the Director shall require the bank to subsequently purchase the excess amount of capital stock from the remain- ing banks in the manner described in sub- paragraph (C); and (iii) the requirements contained in sub- paragraphs (D) and (E) relating to the use of net earnings shall apply to such bank until the bank has purchased all of the ex- cess amount of capital stock. (B) Allocation of excess amount among re- maining Home Loan Banks The amount each remaining Federal Home Loan Bank shall be required to invest under Page 320 TITLE 12—BANKS AND BANKING § 1441 subparagraph (A)(i) is the amount deter- mined by the Director by multiplying the excess amount by the percentage arrived at by dividing— (i) the amount of capital stock of the Fi- nancing Corporation held by such remain- ing bank at the time of such determina- tion; 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 Di- rector by multiplying the amount available for such purchases (at the time of such de- termination) 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 re- quired under subparagraph (A)(ii) shall be placed in a reserve account (established in such manner as the Director 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 ‘‘un- divided profits’’ means retained earnings minus the sum of— (A) that portion required to be added to re- serves maintained pursuant to the first two sentences of section 1436 of this title; and (B) the dollar amounts held by the respec- tive 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 Pitts- burgh ................................................ 5.2 million Federal Home Loan Bank of Atlanta .. 12.3 million Federal Home Loan Bank of Cin- cinnati ............................................. 5.9 million Federal Home Loan Bank of Indianap- olis ................................................... 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 obli- gations The aggregate amount of obligations of the Financing Corporation which may be out- standing at any time (as determined by the Director) 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) which are held at such time in the seg- regated 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 obliga- tions Obligations issued under this section by the Financing Corporation with the approval of the Director shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or de- posit 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 ac- counts, 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 prin- cipal 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 Fed- eral Home Loan Banks, shall be treated as Page 321 TITLE 12—BANKS AND BANKING § 1441 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. 2 So in original. See 2008 Amendment note below. 3 See 2008 Amendment note below. 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 Ex- change Commission) to the same extent as se- curities which are direct obligations of the United States or are guaranteed as to prin- cipal or interest by the United States. (9) Minority participation in public offerings The Chairperson of the Director 2 and the Di- rectorate shall ensure that minority owned or controlled commercial banks, investment banking firms, underwriters, and bond coun- sels throughout the United States have an op- portunity to participate to a significant de- gree in any public offering of obligations issued under this section. (f) Sources of funds for interest payments; Fi- nancing 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 pursu- ant to paragraph (1), the Financing Corpora- tion, with the approval of the Board 3 of Direc- tors of the Federal Deposit Insurance Corpora- tion, shall assess against each insured deposi- tory institution an assessment (in the same manner as assessments are assessed against such institutions by the Federal Deposit In- surance Corporation under section 1817 of this title). (3) Receivership proceeds To the extent the amounts available pursu- ant 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 Fi- nancing Corporation, from the liquidating dividends and payments made on claims re- ceived by the FSLIC Resolution Fund (estab- lished under section 1821a of this title) 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 Director, 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 in- struments of, or issued by, the Federal Na- tional Mortgage Association or the Govern- ment National Mortgage Association; (C) mortgages, obligations, or other securi- ties for sale by, or which have been disposed of by, the Federal Home Loan Mortgage Cor- poration 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 instru- ments 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 para- graph (1); and (B) the total of the face amounts (the amount of principal payable at maturity) of which is approximately equal to the aggre- gate amount of principal on the obligations of the Financing Corporation, to assure the repayment of principal on obli- gations of the Financing Corporation. For pur- poses of the foregoing, the Financing Corpora- tion shall be deemed to hold noninterest bear- ing instruments that it lends temporarily to primary United States Treasury dealers in order to enhance market liquidity and facili- tate 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 ac- count The aggregate amount invested by the Fi- nancing 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, in- terest, and custodian fees Notwithstanding the requirements of para- graph (1), the assets of the Financing Corpora- tion 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— Page 322 TITLE 12—BANKS AND BANKING § 1441 4 See References in Text note below. 5 So in original. Probably should be followed by a period. (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 Cor- poration; and (ii) includes legal and accounting ex- penses, 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 connec- tion with issuing any obligation. (B) Custodian fees The term ‘‘custodian fee’’ means— (i) any fee incurred by the Financing Corporation in connection with the trans- fer 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 Fi- nancing Corporation in connection with the establishment or maintenance of such account. (h) Miscellaneous provisions relating to Financ- ing Corporation (1) Treatment for certain purposes Except as provided in subsection (e)(8)(B), 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 Govern- ment funds may be invested in the Financing Corporation, the Financing Corporation shall be treated, for purposes of sections 9105,4 9107, and 9108 of title 31, as a mixed-ownership Gov- ernment corporation which has capital of the Government. (i) Termination of Financing Corporation (1) In general The Financing Corporation shall be dis- solved, as soon as practicable, after the earlier of— (A) the maturity and full payment of all obligations issued by the Financing Corpora- tion pursuant to this section; or (B) December 31, 2026. (2) Director authority to conclude the affairs of Financing Corporation Effective on the date of the dissolution of the Financing Corporation under paragraph (1), the Director may exercise, on behalf of the Financing Corporation, any power of the Fi- nancing Corporation which the Director deter- mines to be necessary to settle and conclude the affairs of the Financing Corporation. (j) Regulations The Director 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 direc- torate established in the manner provided in subsection (b)(1) to manage the Financing Cor- poration. (2) Net earnings The term ‘‘net earnings’’ means net earnings without reduction for any chargeoffs or ex- penses 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 1813 of this title 5 (July 22, 1932, ch. 522, § 21, as added Pub. L. 100–86, title III, § 302, Aug. 10, 1987, 101 Stat. 585; amended Pub. L. 101–73, title V, § 512, title VII, §§ 701(b)(2), 713, Aug. 9, 1989, 103 Stat. 406, 412, 419; Pub. L. 102–233, title I, § 104, title III, § 302(b), Dec. 12, 1991, 105 Stat. 1762, 1767; Pub. L. 102–550, title XVI, § 1611(c), Oct. 28, 1992, 106 Stat. 4090; Pub. L. 104–208, div. A, title II, § 2703(a), Sept. 30, 1996, 110 Stat. 3009–485; Pub. L. 109–173, § 9(d)(2), Feb. 15, 2006, 119 Stat. 3616; Pub. L. 110–289, div. A, title II, § 1204(6), (8), (12), July 30, 2008, 122 Stat. 2786.) Editorial Notes 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, § 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, § 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 Govern- ment. PRIOR PROVISIONS A prior section 1441, act July 22, 1932, ch. 522, § 21, 47 Stat. 738, related to unlawful acts and penalties, prior to repeal by act June 25, 1948, ch. 645, § 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 Pro- cedure. AMENDMENTS 2008—Pub. L. 110–289, § 1204(12), substituted ‘‘Director’’ for ‘‘Federal Housing Finance Board’’ wherever appear- ing in subsecs. (a), (b)(1)(B), (6)(B), (7)(B), (8), (c), (d), (e)(1), (4), (9), (g), (i), and (j). Subsec. (b)(5). Pub. L. 110–289, § 1204(6), substituted ‘‘Director’’ for ‘‘Chairperson of the Federal Housing Fi- nance Board’’. Page 323 TITLE 12—BANKS AND BANKING § 1441 Subsec. (f)(2). Pub. L. 110–289, § 1204(8), which directed amendment of the Federal Home Loan Bank Act (this chapter) by substituting ‘‘the Director’’ for ‘‘the Board’’ wherever appearing, was not executed to sub- sec. (f)(2) to reflect the probable intent of Congress. 2006—Subsec. (f)(2). Pub. L. 109–173, § 9(d)(2)(A), struck out before period at end ‘‘, 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 shall apply for purposes of this paragraph.’’ Subsec. (k)(4). Pub. L. 109–173, § 9(d)(2)(B), struck out heading and text of par. (4). Text read as follows: ‘‘(A) BIF-ASSESSABLE DEPOSITS.—The term ‘BIF-as- sessable deposit’ means a deposit that is subject to as- sessment for purposes of the Bank Insurance Fund under the Federal Deposit Insurance Act (including a deposit that is treated as a deposit insured by the Bank Insurance Fund under section 5(d)(3) of the Federal De- posit Insurance Act). ‘‘(B) SAIF-ASSESSABLE DEPOSIT.—The term ‘SAIF-as- sessable deposit’ has the meaning given to such term in section 2710 of the Deposit Insurance Funds Act of 1996.’’ 1996—Subsec. (f)(2). Pub. L. 104–208, § 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 para- graph (1) are insufficient to cover the amount of inter- est payments, issuance costs, and custodial fees,’’, ‘‘in- sured depository institution’’ for ‘‘Savings Association Insurance Fund member’’, and ‘‘against such institu- tions’’ for ‘‘against such members’’. Subsec. (f)(2)(A) to (C). Pub. L. 104–208, § 2703(a)(1)(B), added subpars. (A) and (B) and struck out former sub- pars. (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 Corpora- tion 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 pri- ority to make the assessment; and ‘‘(C) the amount of the applicable assessment deter- mined under such section 1817 of this title shall be re- duced by the sum described in subparagraph (A) of this paragraph.’’ Subsec. (k). Pub. L. 104–208, § 2703(a)(2)(A), substituted ‘‘section, the following definitions shall apply:’’ for ‘‘section—’’ in introductory provisions. Subsec. (k)(1). Pub. L. 104–208, § 2703(a)(2)(B), (C), re- designated 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 In- surance Fund member as defined by section 7(l) of the Federal Deposit Insurance Act.’’ Subsec. (k)(2) to (4). Pub. L. 104–208, § 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 cor- rect reference to corresponding provisions of original act. 1991—Subsec. (d)(4). Pub. L. 102–233, § 302(b), sub- stituted ‘‘Thrift Depositor Protection Oversight Board’’ for ‘‘Oversight Board’’ in two places. Subsec. (e)(2). Pub. L. 102–233, § 104, amended par. (2) generally, substituting provisions setting forth termi- nation date of Financing Corporation borrowing au- thority for provisions relating to investment of pro- ceeds of obligations of such Corporation. Subsec. (k)(3). Pub. L. 102–233, § 302(b), substituted ‘‘Thrift Depositor Protection Oversight Board’’ for ‘‘Oversight Board’’. 1989—Subsec. (a). Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (b)(1)(B). Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Federal Home Loan Bank Board’’. Subsec. (b)(5). Pub. L. 101–73, § 701(b)(2), substituted ‘‘Chairperson’’ for ‘‘Chairman’’. Pub. L. 101–73, § 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, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’ wherever appearing. Subsec. (c)(2). Pub. L. 101–73, § 512(3), inserted ‘‘prior to August 9, 1989, and thereafter to transfer the pro- ceeds of any obligation issued by the Financing Cor- poration to the FSLIC Resolution Fund’’. Subsec. (c)(9). Pub. L. 101–73, § 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, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’ wher- ever appearing. Subsec. (d)(4). Pub. L. 101–73, § 512(5), amended gen- erally 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 per- centage appearing in the following table for each such bank:’’. Subsec. (d)(5). Pub. L. 101–73, § 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, § 512(2), substituted ‘‘by the Federal Housing Finance Board’’ for ‘‘by the Board’’. Subsec. (d)(5)(A), (B). Pub. L. 101–73, § 512(1), which di- rected the amendment of this section by substituting ‘‘Savings Association Insurance Fund member’’ for ‘‘in- sured 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, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’ in intro- ductory provisions and in cls. (i) and (ii). Subsec. (d)(6)(A)(iii). Pub. L. 101–73, § 512(7), struck out ‘‘available for dividends’’ after ‘‘use of net earn- ings’’. Subsec. (d)(6)(B), (C). Pub. L. 101–73, § 512(2), sub- stituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (d)(6)(D). Pub. L. 101–73, § 512(8), struck out ‘‘available for dividends’’ after ‘‘net earnings’’. Subsec. (d)(6)(E). Pub. L. 101–73, § 512(9), struck out ‘‘available for dividends’’ after ‘‘Of the net earnings’’. Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (d)(6)(F). Pub. L. 101–73, § 512(10), struck out subpar. (F) which defined ‘‘net earnings available for dividends’’. Subsec. (e)(1). Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (e)(2). Pub. L. 101–73, § 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, § 512(11), which directed amendment of par. (2)(A), was executed, as the probable intent of Con- gress, 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 in- troductory 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). Page 324 TITLE 12—BANKS AND BANKING § 1441 Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (e)(3). Pub. L. 101–73, § 512(12)(A), redesignated par. (4) as (3). Former par. (3) redesignated (2). Subsec. (e)(4). Pub. L. 101–73, § 512(2), (12)(A), redesig- nated par. (5) as (4) and substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Former par. (4) redesig- nated (3). Subsec. (e)(5). Pub. L. 101–73, § 512(12)(A), redesignated par. (6) as (5). Former par. (5) redesignated (4). Subsec. (e)(6). Pub. L. 101–73, § 512(12), redesignated par. (7) as (6) and substituted ‘‘FSLIC Resolution Fund’’ for ‘‘Federal Savings and Loan Insurance Cor- poration’’. Former par. (6) redesignated (5). Subsec. (e)(7), (8). Pub. L. 101–73, § 512(12)(A), redesig- nated pars. (8) and (9) as (7) and (8), respectively. Former par. (7) redesignated (6). Subsec. (e)(9), (10). Pub. L. 101–73, §§ 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) redesig- nated (8). Subsec. (f). Pub. L. 101–73, § 512(13), amended subsec. (f) generally, substituting provisions enumerating var- ious 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 au- thority, and receivership proceeds, for former provi- sions which had outlined assessment authority of Fi- nancing Corporation, setting up supplementary assess- ment authority, setting limits on total amount as- sessed, and providing for termination assessments. Subsec. (g)(1). Pub. L. 101–73, § 512(14), inserted ref- erence to before August 9, 1989, and after August 9, 1989, in capital certificates issued by the FSLIC Resolution Fund. Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (g)(2). Pub. L. 101–73, § 512(15), inserted at end ‘‘For purposes of the foregoing, the Financing Corpora- tion shall be deemed to hold noninterest bearing in- struments that it lends temporarily to primary United States Treasury dealers in order to enhance market li- quidity 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, § 713, redesignated subsec. (j) as (i) and struck out former subsec. (i) which related to Federal Savings and Loan Insurance Corporation In- dustry Advisory Committee. Subsec. (i)(1)(A). Pub. L. 101–73, § 512(16), added sub- par. (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, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’ wher- ever appearing. Subsec. (j). Pub. L. 101–73, § 713, redesignated subsec. (k) as (j). Former subsec. (j) redesignated (i). Pub. L. 101–73, § 512(2), substituted ‘‘Federal Housing Finance Board’’ for ‘‘Board’’. Subsec. (k). Pub. L. 101–73, § 713, redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j). Subsec. (k)(1). Pub. L. 101–73, § 512(17)(A), substituted definition of ‘‘Savings Association Insurance Fund member’’ for definition of ‘‘insured institution’’. Subsec. (k)(2). Pub. L. 101–73, § 512(17)(B), redesignated par. (3) as (2) and struck out former par. (2) which de- fined ‘‘insured member’’. Subsec. (k)(3), (4). Pub. L. 101–73, § 512(10), (17)(B), added par. (4) and redesignated pars. (3) and (4) as (2) and (3), respectively. Subsec. (l). Pub. L. 101–73, § 713, redesignated subsec. (l) as (k). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENT Pub. L. 104–208, div. A, title II, § 2703(c), Sept. 30, 1996, 110 Stat. 3009–485, provided that: ‘‘(1) IN GENERAL.—Subsections (a) [amending this sec- tion] 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 pe- riods 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 associa- tion ceases to exist.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–550, title XVI, § 1618, Oct. 28, 1992, 106 Stat. 4097, provided that: ‘‘Except as otherwise provided by a specific provision of this subtitle [subtitle B (§§ 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 sub- title 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 Resolu- tion 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 Pub. L. 102–233, title III, § 318, Dec. 12, 1991, 105 Stat. 1773, provided that: ‘‘The effective date of the Resolu- tion Trust Corporation Thrift Depositor Protection Re- form 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 abol- ished, see section 14(a)–(d) of Pub. L. 105–216, formerly set out as a note under section 1441a of this title. PROHIBITION ON DEPOSIT SHIFTING Pub. L. 104–208, div. A, title II, § 2703(d), Sept. 30, 1996, 110 Stat. 3009–486, provided that: ‘‘(1) IN GENERAL.—Effective as of the date of the en- actment 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 Re- Page 325 TITLE 12—BANKS AND BANKING § 1441a serve System, and the Director of the Office of Thrift Supervision shall take appropriate actions, including enforcement actions, denial of applications, or imposi- tion of entrance and exit fees as if such transactions qualified as conversion transactions pursuant to sec- tion 5(d) of the Federal Deposit Insurance Act [12 U.S.C. 1815(d)], to prevent insured depository institu- tions and depository institution holding companies from facilitating or encouraging the shifting of depos- its from SAIF-assessable deposits to BIF-assessable de- posits (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 regu- lations, including regulations defining terms used in paragraph (1), to prevent the shifting of deposits de- scribed in such paragraph. ‘‘(3) RULE OF CONSTRUCTION.—No provision of this sub- section shall be construed as prohibiting conduct or ac- tivity of any insured depository institution which— ‘‘(A) is undertaken in the ordinary course of busi- ness of such depository institution; and ‘‘(B) is not directed towards the depositors of an in- sured 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, § 101(f) [title III, § 301], Dec. 22, 1987, 101 Stat. 1329–187, 1329–211, provided that any coopera- tive 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 de- scribed in 12 U.S.C. 1441(f)(4)(F). SUNSET AND SAVINGS PROVISION Pub. L. 100–86, title IV, § 416, Aug. 10, 1987, 101 Stat. 623, provided that: ‘‘(a) IN GENERAL.—The following provisions shall cease to be effective on the date that a notice is pub- lished in the Federal Register by the Financing Cor- poration 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 Cor- poration established pursuant to section 21 of the Fed- eral Home Loan Bank Act [12 U.S.C. 1441] has com- pleted 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 sub- section (a) of the effectiveness of any provision de- scribed in such subsection shall not be construed to af- fect 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.’’ § 1441a. Repealed. Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555 Section, act July 22, 1932, ch. 522, § 21A, as added Pub. L. 101–73, title V, § 501(a), Aug. 9, 1989, 103 Stat. 363; amended Pub. L. 101–625, title VIII, § 804(d), title IX, § 914(c), Nov. 28, 1990, 104 Stat. 4323, 4395; Pub. L. 101–647, title XXV, §§ 2526(c), 2540, Nov. 29, 1990, 104 Stat. 4876, 4885; Pub. L. 102–18, title I, §§ 101, 102(a), 103(a), 104, 105, title II, §§ 201, 202, title III, § 301, title IV, § 401, Mar. 23, 1991, 105 Stat. 58, 60–63, 65; Pub. L. 102–139, title V, § 523(a), Oct. 28, 1991, 105 Stat. 781; Pub. L. 102–233, title I, §§ 101, 103, 105, 106(a)–(e)(1), title II, § 201, title III, §§ 302(b), (c), 303–312, 314, 316, title IV, §§ 401, 402(a), 403–405, title V, § 501, title VI, §§ 601–611, 613–617, Dec. 12, 1991, 105 Stat. 1761–1765, 1767–1770, 1772–1774, 1776–1789; Pub. L. 102–242, title I, § 141(a)(3), title II, § 251(c)(1), title IV, § 471, Dec. 19, 1991, 105 Stat. 2276, 2333, 2385; Pub. L. 102–378, § 5(e), Oct. 2, 1992, 106 Stat. 1358; Pub. L. 102–550, title V, §§ 503(c)(3), 509(i), title XVI, §§ 1611(a), (d)(1)–(3), 1612, 1613(a)(1)–(6), (8), (b)–(h), 1614(a)(1)–(5), (7), (b), 1615(a)(2), 1616, Oct. 28, 1992, 106 Stat. 3780, 3783, 4090–4096; Pub. L. 103–204, §§ 2–3(b), 4(a), 5(a), (b)(2), 7, 12, 14(a)(1), (c)(2), (d)(1), (e)(1), (f)(1), 15(a), 16(a), 17(a), 21(b), 24, 27(a), 29–31, 36, Dec. 17, 1993, 107 Stat. 2370–2380, 2382, 2383, 2390, 2391, 2395–2400, 2406, 2408, 2410–2413, 2415; Pub. L. 103–211, title IV, § 406, Feb. 12, 1994, 108 Stat. 41; Pub. L. 103–325, title VI, § 602(b), Sept. 23, 1994, 108 Stat. 2291; Pub. L. 103–328, title II, § 201(b), Sept. 29, 1994, 108 Stat. 2368; Pub. L. 104–66, title II, § 2231, Dec. 21, 1995, 109 Stat. 733; Pub. L. 104–208, div. A, title II, § 2704(d)(11)(B)–(D), Sept. 30, 1996, 110 Stat. 3009–489; Pub. L. 105–135, title VI, § 604(b), Dec. 2, 1997, 111 Stat. 2633; Pub. L. 106–400, § 2, Oct. 30, 2000, 114 Stat. 1675; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(d)(3)–(6), Feb. 15, 2006, 119 Stat. 3616, 3617; Pub. L. 110–289, div. A, title II, § 1204(8), (12), July 30, 2008, 122 Stat. 2786, related to establishment of Thrift Depositor Protection Oversight Board and Resolution Trust Corporation. Statutory Notes and Related Subsidiaries CHANGE OF NAME Pub. L. 102–233, title III, § 302(a), Dec. 12, 1991, 105 Stat. 1767, redesignated the Oversight Board, as estab- lished by former subsec. (a)(1) of this section, as the Thrift Depositor Protection Oversight Board. EFFECTIVE DATE OF REPEAL Repeal effective on the transfer date, see section 351 of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 906 of Title 2, The Con- gress. SAVINGS PROVISION Pub. L. 102–233, title III, § 317, Dec. 12, 1991, 105 Stat. 1773, provided that the rights and duties, actions and proceedings, and orders and regulations that had at- tached to the Oversight Board as of Feb. 1, 1992, would not be affected by title III of Pub. L. 102–233 and that the Thrift Depositor Protection Oversight Board would assume the role of the Oversight Board where applica- ble. ABOLITION OF THRIFT DEPOSITOR PROTECTION OVERSIGHT BOARD Pub. L. 105–216, § 14(a)–(d), July 29, 1998, 112 Stat. 908–910, abolished the Thrift Depositor Protection Over- sight Board established under former section 1441a of this title, effective at the end of the 3-month period be- ginning July 29, 1998, provided that, effective July 29,