FEDERAL HOME LOAN BANK ACT (47 Stat. 725; 12 U.S.C. 1421 et seq.) AN ACT To create Federal Home Loan Banks, to provide for the supervision thereof, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Federal Home Loan Bank Act." [12 U.S.C. 1421] DEFINITIONS SEC. 2. [12 U.S.C. 1422] As used in this Act (1) BOARD. The term "Board" means the Federal Housing Finance Board established under section 2A. (2)(A) BANK.-The term "Federal Home Loan Bank" or "Bank" means a bank established under the authority of the Federal Home Loan Bank Act. (B) BANK SYSTEM.-The term "Federal Home Loan Bank System" means the Federal Home Loan Banks under the supervision of the Board. (3) The term "State" includes the District of Columbia, Guam, Puerto Rico, and the Virgin Islands of the United States. (4)1 The term "member" means any institution which has subscribed for the stock of a Federal Home Loan Bank. (5)1 The term "home mortgage loan" means a loan made by a member upon the security of a home mortgage. (6) The term "home mortgage" means a mortgage upon real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninety-nine years which is renewable or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed, upon which is located, or which comprises or includes, one or more homes or other dwelling units, all of which may be defined by the Board, and shall include, in addition to first mortgages, such classes of first liens as are commonly given to secure advances on real estate by institutions authorized under this Act to become members, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby. (7) The term "unpaid principal," when used in respect of a loan secured by a home mortgage means the principal thereof less the sum of (1) payments made on such principal, and (2) in cases where shares or stock are pledged as security for the loan, the payments made on such shares or stock plus earnings or dividends apportioned or credited thereon. 1 Indentations so in original. 89-335 95-21 (8)1 An "amortized" or "installment" home mortgage loan shall, for the purposes of this Act, be a home mortgage loan to be repaid or liquidated in not less than eight years by means of regular weekly, monthly, or quarterly payments made directly in reduction of the debt or upon stock or shares pledged as collateral for the repayment of such loan. (9) SAVINGS ASSOCIATION.-The term "savings association" has the meaning given to such term in section 3 of the Federal Deposit Insurance Act. (10) CHAIRPERSON.-The term "Chairperson" means the Chairperson of the Board. (11) SECRETARY.-The term "Secretary" means the Secretary of Housing and Urban Development. (12) INSURED DEPOSITORY INSTITUTION.—The term "insured depository institution" means (A) an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act), and (B) except as used in sections 21A and 21B, an insured credit union (as defined in section 101 of the Federal Credit Union Act). SEC. 2A. [12 U.S.C. 1422a] FEDERAL HOUSING FINANCE BOARD. (a) ESTABLISHMENT.— (1) IN GENERAL.-There is established the Federal Housing Finance Board, which shall succeed to the authority of the Federal Home Loan Bank Board with respect to the Federal Home Loan Banks. (2) STATUS.-The Board shall be an independent agency in the executive branch of the Government. (3)1 DUTIES. (A) SAFETY AND SOUNDNESS.-The primary duty of the Board shall be to ensure that the Federal Home Loan Banks operate in a financially safe and sound manner. (B)1 OTHER DUTIES.-To the extent consistent with subparagraph (A), the duties of the Board shall also be (i) to supervise the Federal Home Loan Banks; (ii) to ensure that the Federal Home Loan Banks carry out their housing finance mission; and (iii) to ensure that the Federal Home Loan Banks remain adequately capitalized and able to raise funds in the capital markets. (b) MANAGEMENT.— (1) IN GENERAL.-The management of the Board shall be vested in a Board of Directors consisting of 5 directors as follows: (A) The Secretary who shall serve without additional compensation. (B) Four citizens of the United States, appointed by the President, by and with the advice and consent of the Senate, each of whom shall hold office for a term of 7 years. (2) PROVISIONS RELATING TO APPOINTED DIRECTORS.— 1 Margins are incorrect. (A) IN GENERAL.-The directors appointed pursuant to paragraph (1)(B) shall be from among persons with extensive experience or training in housing finance or with a commitment to providing specialized housing credit. An appointed director shall not hold any other appointed office during his or her term as director. Not more than 3 directors shall be members of the same political party. Not more than 1 appointed director shall be from any single district of the Federal Home Loan Bank System. Ñominations pursuant to this subparagraph shall be referred in the Senate to the Committee on Banking, Housing, and Urban Affairs. (B) CONSUMER REPRESENTATIVE.-At least 1 director shall be chosen from an organization with more than a 2year history of representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections. (C) LIMITATIONS ON CONFLICTS OF INTEREST.-No director may (i) serve as a director or officer of any Federal Home Loan Bank or any member of any Bank; or (ii) hold shares of, or any other financial interest in, any member of any such Bank. (D) CLARIFICATION OF STATUS. (i) IN GENERAL.-The directors appointed pursuant to paragraph (1)(B) shall serve on a full-time basis after December 31, 1993. (ii) RULE OF CONSTRUCTION.-Clause (i) shall not be construed as implying that any other position may be filled or held on a less than full-time basis. (3) INITIAL TERMS.-Notwithstanding paragraph (2), of the directors first appointed (A) one shall be appointed for a term of 1 year; (B) one shall be appointed for a term of 3 years; and (C) one shall be appointed for a term of 5 years. (c) CHAIRPERSON; TRANSITIONAL PROVISIONS. (1) IN GENERAL.-The President shall designate 1 of the appointed directors to be the Chairperson of the Board. The Chairperson shall designate another director to serve as Acting Chairperson during the absence or disability of the Chair person. (2) TRANSITIONAL PROVISION.-Beginning on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, until such time that at least 2 directors are appointed and confirmed pursuant to subsection (b), the Secretary shall act for all purposes and with the full powers of the Board of Directors. The Secretary may utilize the services of employees from the Department of Housing and Urban Development to perform services for the Board of Directors during such transition period. (d) VACANCIES. (1) IN GENERAL.-Any vacancy on the Board of Directors shall be filled in the manner in which the original appointment was made. Any director appointed to fill a vacancy occurring |