12 U.S.C. § 1430b — Advances to nonmember mortgagee;

Page 301 TITLE 12—BANKS AND BANKING § 1430b 1958—Subsec. (b). Pub. L. 85–857 inserted ‘‘chapter 37 of title 38,’’ after ‘‘Servicemen’s Readjustment Act of 1944, as amended,’’. 1954—Subsec. (b)(2). Act Aug. 2, 1954, substituted ‘‘$35,000’’ for ‘‘$20,000’’. 1951—Subsec. (a)(1). Act Sept. 1, 1951, inserted a ref- erence to subchapter X of chapter 13 of this title. 1950—Subsec. (a) (1). Act Apr. 20, 1950, § 501(1), sub- stituted ‘‘subchapters I, II, VI, and VIII of chapter 13 of this title’’ for ‘‘sections 1707–1715b and 1736–1742 of this title’’. Subsec. (b). Act Apr. 20, 1950, § 501(2), inserted ‘‘unless such home mortgage is insured under the National Housing Act, as amended, or insured or guaranteed under the Servicemen’s Readjustment Act of 1944, as amended’’ after ‘‘Maturity’’ in first sentence. 1947—Subsec. (b). Act Aug. 1, 1947, increased period collateral security can run from twenty years to twen- ty-five years. 1941—Subsec. (a)(1). Act Mar. 28, 1941, inserted ref- erence to sections 1736–1742 of this title. 1935—Subsec. (a). Act May 28, 1935, § 5, added cl. (4). Subsec. (b)(1). Act May 28, 1935, § 6, substituted ‘‘twen- ty’’ for ‘‘fifteen’’ and omitted reference to value of real estate in cl. 2. 1934—Subsec. (a). Act June 27, 1934, amended subsec. (a) generally. Subsec. (b). Act Apr. 27, 1934, inserted ‘‘unless the amount,’’ etc. to end of first sentence. Statutory Notes and Related Subsidiaries CHANGE OF NAME Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Com- mittee on Banking and Financial Services of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding section 21 of Title 2, The Con- gress. Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 1958 AMENDMENT Amendment by Pub. L. 85–857 effective Jan. 1, 1959, see section 2 of Pub. L. 85–857, set out as an Effective Date note preceding Part 1 of Title 38, Veterans’ Bene- fits. TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions in subsec. (j)(12)(A) of this section relating to require- ment to report annually to Congress, see section 3003 of Pub. L. 104–66, as amended, set out as a note under sec- tion 1113 of Title 31, Money and Finance, and page 170 of House Document No. 103–7. AUTHORIZATION OF APPROPRIATIONS FOR DISBURSEMENT TO FEDERAL HOME LOAN BANKS FOR ADJUSTMENT OF INTEREST CHARGES Pub. L. 91–351, title I, § 101, July 24, 1970, 84 Stat. 450, provided that: ‘‘(a) There is authorized to be appropriated not to ex- ceed $250,000,000, without fiscal year limitation, to be used by the Federal Home Loan Bank Board for dis- bursement to Federal home loan banks for the purpose of adjusting the effective interest charged by such banks on short-term and long-term borrowing to pro- mote an orderly flow of funds into residential construc- tion. The disbursement of sums appropriated hereunder shall be made under such terms and conditions as may be prescribed by the Board to assure that such sums are used to assist in the provision of housing for low- and middle-income families, and that such families share fully in the benefits resulting from the disbursement of such sums. No member of a Federal home loan bank shall use funds the interest charges on which have been adjusted pursuant to the provisions of this section to make any loan, if— ‘‘(1) the effective rate of interest on such loan ex- ceeds the effective rate of interest on such funds pay- able by such member by a percentile amount which is in excess of such amount as the Board determines to be appropriate in furtherance of the purposes of this section; or ‘‘(2) the principal obligation of any such loan which is secured by a mortgage on a residential structure exceeds the dollar limitations on the maximum mort- gage amount, in effect on the date the mortgage was originated, which would be applicable if the mortgage was insured by the Secretary of Housing and Urban Development under section 203(b) or 207 of the Na- tional Housing Act [section 1709(b) or 1713 of this title]. ‘‘(b) Not more than 20 per centum of the sums appro- priated pursuant to subsection (a) shall be disbursed in any one Federal home loan bank district.’’ § 1430a. Omitted Editorial Notes CODIFICATION Section, act July 22, 1932, ch. 522, § 10a, as added June 27, 1934, ch. 847, § 502, 48 Stat. 1261, provided for ad- vances by Federal Home Loan Banks to finance home repairs, improvements, and alterations until July 1, 1936. § 1430b. Advances to nonmember mortgagee; terms and conditions (a) In general Each Federal Home Loan Bank is authorized to make advances to nonmember mortgagees ap- proved under title II of the National Housing Act [12 U.S.C. 1707 et seq.]. Such mortgagees must be chartered institutions having succes- sion and subject to the inspection and super- vision of some governmental agency, and whose principal activity in the mortgage field must consist of lending their own funds. Such ad- vances shall not be subject to the other provi- sions and restrictions of this chapter, but shall be made upon the security of insured mortgages, insured under title II of the National Housing Act. Advances made under the terms of this sec- tion shall be at such rates of interest and upon such terms and conditions as shall be deter- mined by the Director, but no advance may be for an amount in excess of 90 per centum of the unpaid principal of the mortgage loan given as security. (b) Exception An advance made to a State housing finance agency for the purpose of facilitating mortgage lending that benefits individuals and families that meet the income requirements set forth in section 142(d) or 143(f) of title 26, need not be collateralized by a mortgage insured under title II of the National Housing Act [12 U.S.C. 1707 et seq.] or otherwise, if— (1) such advance otherwise meets the re- quirements of this subsection; and (2) such advance meets the requirements of section 1430(a) of this title, and any real estate collateral for such loan comprises single fam- ily or multifamily residential mortgages. (July 22, 1932, ch. 522, § 10b, as added May 25, 1935, ch. 150, § 7, 49 Stat. 295; amended Pub. L. 101–73, Page 302 TITLE 12—BANKS AND BANKING § 1430c 1 See References in Text note below. title VII, § 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412; Pub. L. 102–550, title XIII, § 1392(b), Oct. 28, 1992, 106 Stat. 4009; Pub. L. 110–289, div. A, title II, § 1204(8), July 30, 2008, 122 Stat. 2786.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–289 substituted ‘‘the Di- rector’’ for ‘‘the Board’’. 1992—Pub. L. 102–550 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b). 1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘Federal Home Loan Bank Board’’. § 1430c. Housing goals (a) In general The Director shall establish housing goals with respect to the purchase of mortgages, if any, by the Federal Home Loan Banks. Such goals shall be consistent with the goals estab- lished under sections 4561 through 4564 of this title. (b) Considerations In establishing the goals required by sub- section (a), the Director shall consider the unique mission and ownership structure of the Federal Home Loan Banks. (c) Transition period To facilitate an orderly transition, the Direc- tor shall establish interim target goals for pur- poses of this section for each of the 2 calendar years following July 30, 2008. (d) Monitoring and enforcement of goals The requirements of section 4566 1 of this title, shall apply to this section, in the same manner and to the same extent as that section applies to the Federal housing enterprises. (e) Annual report The Director shall annually report to Congress on the performance of the Banks in meeting the goals established under this section. (July 22, 1932, ch. 522, § 10C, as added Pub. L. 110–289, div. A, title II, § 1205, July 30, 2008, 122 Stat. 2786.) Editorial Notes REFERENCES IN TEXT Section 4566 of this title, referred to in subsec. (d), was in the original ‘‘section 1336 of the Federal Housing Enterprises Safety and Soundness Act of 1992’’, which was translated as meaning section 1336 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, to reflect the probable intent of Congress. § 1431. Powers and duties of banks (a) Borrowing money; issuing bonds and deben- tures; general powers Each Federal Home Loan Bank shall have power, subject to rules and regulations pre- scribed by the Director, to borrow and give secu- rity therefor and to pay interest thereon, to issue debentures, bonds, or other obligations upon such terms and conditions as the Director may approve, and to do all things necessary for carrying out the provisions of this chapter and all things incident thereto. (b) Issuance of consolidated Federal Home Loan Bank debentures; restrictions The Office of Finance, as agent for the Banks, may issue consolidated Federal Home Loan Bank debentures which shall be the joint and several obligations of all Federal Home Loan Banks organized and existing under this chap- ter, in order to provide funds for any such bank or banks, and such debentures shall be issued upon such terms and conditions as such Office may prescribe. No such debentures shall be issued at any time if any of the assets of any Federal Home Loan Bank are pledged to secure any debts or subject to any lien, and neither the Office of Finance nor any Federal Home Loan Bank shall have power to pledge any of the as- sets of any Federal Home Loan Bank, or volun- tarily to permit any lien to attach to the same while any of such debentures so issued are out- standing. The debentures issued under this sec- tion and outstanding shall at no time exceed five times the total paid-in capital of all the Federal Home Loan Banks as of the time of the issue of such debentures. It shall be the duty of the Office of Finance not to issue debentures under this section in excess of the notes or obli- gations of member institutions held and secured under section 1430(a) of this title by all the Fed- eral Home Loan Banks. (c) Issuance of Federal Home Loan Bank bonds At any time that no debentures are out- standing under this chapter, or in order to re- fund all outstanding consolidated debentures issued under this section, the Office of Finance, as agent for the Banks, may issue consolidated Federal Home Loan Bank bonds which shall be the joint and several obligations of all the Fed- eral Home Loan Banks, and shall be secured and be issued upon such terms and conditions as such Office may prescribe. (d) Additional or substituted collateral on adjust- ment of equities The Director shall have full power to require any Federal Home Loan Bank to deposit addi- tional collateral or to make substitutions of col- lateral or to adjust equities between the Federal Home Loan Banks. (e) Acceptance of deposits; restrictions on trans- action of banking business; collection and settlement of checks, drafts, etc.; charges; rules and regulations (1) Each Federal Home Loan Bank shall have power to accept deposits made by members of such bank or by any other Federal Home Loan Bank or other instrumentality of the United States, upon such terms and conditions as the Director may prescribe, but no Federal Home Loan Bank shall transact any banking or other business not incidental to activities authorized by this chapter. (2)(A) The Director may, subject to such rules and regulations, including definitions of terms