principal or interest by the United States, be deemed to be -exempt securities within the meaning of laws administered by the Securities and Exchange Commission.

Effective Date

Sec. 14 This Act shall be effective upon enactment thereof, except that sections 5, 7 (c) and 16 (b) of this Act shall 'be effective from and after a date, not more than one hundred eighty days following the enactment of this Act, as established by the Federal Home Loan Bank Board.

Savings Provisions

Sec. 15(a) No cause of action by or against the Corporation (as created by Title III of the Emergency Home Finance Act of 1970) existing prior to the effective date established pursuant to section 14 of this Act shall abate by reason of the enactment of this Act. Any such cause of action may thereafter be asserted by or against the Corporation.

(b)

No suit, action, or other proceeding commenced by or against the Corporation as created by Title III of the Emergency Home Finance Act of 1970, or any officer thereof in his official capacity, prior to the effective date established pursuant to section 14 of this Act shall abate by reason of the enactment of this Act. A court may at any time thereafter during the pendency of any such litigation, on its own motion or that of any party, order that the litigation may be maintained by or against the Corporation or the appropriate corresponding officer thereof.

Sec. 16(a)

Transitional Provisions

On the effective date established pursuant to section 14 of this Act, each share of outstanding nonvoting common stock of the Corporation as created by Title III of the Emergency Home Finance Act of 1970 shall, pursuant to such procedures as shall be established by the Federal Home Loan Bank Board, be changed into and shall become such number of shares of voting common stock, without par value, of the Corporation as shall be fixed by the Federal Home Loan Bank Board.

(b)

The voting common stock of the Corporation held by the Federal Home Loan Banks pursuant to section 16(a) of this Act must, subject to the provisions of section 5(d) of the Federal Home Loan Mortgage Corporation Taxation Act, be distributed to the members of the Federal Home Loan Banks in such amounts, at such times and under such circumstances and procedures as shall be determined by the Federal Home Loan Bank Board. All such distributions of the common stock of the Corporation made. pursuant to this subsection shall be made under such standards as shall be adopted by the Federal Home Loan Bank Board and shall be made only to organizations that were stockholders of a Federal Home Loan Bank at the end of the month immediately preceding the date of enactment of this Act. All such distributions shall be based upon the amount of capital invested in a Federal Home Loan Bank by each organization at the end of the month immediately preceding the date of enactment of this Act; and the number of calendar years in which such organization or its predecessor was a member of a Federal Home Loan Bank for a continuous period

starting with the year of enactment of this Act and going back through any year subsequent to or including 1970. Any distribution of the common stock of the Corporation by the Federal Home Loan Banks to the members of the Federal Home Loan Banks made pursuant to this subsection shall be charged against the legal reserve accounts of the Federal Home Loan Banks, but. shall not be subject to the limitations contained in, and shall not be considered a dividend or act to reduce the reserve account balances of the Federal Home Loan Banks for purposes of reserve account contributions or the payment of dividends as prescribed in, section 16 of the Federal Home Loan Bank Act. Any voting common stock owned by any Federal Home Loan Bank pursuant to this section shall be voted by such Federal Home Loan Bank as provided in section of the Federal Home Loan Mortgage Corporation

Taxation Act.

(၁)

The Corporation may, until April 1, 1985, restrict or preclude transfer of ownership of all or any portion of the voting common stock acquired pursuant to subsection (b) of this section by members of the Federal Home Loan Banks and may permit, under such procedures and conditions as may be established by the Corporation, all or any portion of such stock to be sold in conjunction with public offerings by the Corporation of voting common stock pursuant to section 5 (a) of this Act.

Technical Amendments

Sec. 17(a) As of the effective date of this Act as provided in section 14 of this Act, Title III of the Emergency

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Home Finance Act of 1970 (the Federal Home Loan Mortgage Cor

-poration Act) is repealed.

(b) All specific references by name to the Federal

Home Loan Mortgage Corporation in any law of the United States or

any law of any State in effect on the effective date: of this Act shall be deemed to refer to and include the Corporation.

(c) For the purpose of the distribution of the Corporation's property pursuant to section 726 of title 11, United States Code, the Corporation shall be deemed to be a "person" within the meaning of such title.

as

Construction and Separability

Sec. 18 Except as otherwise provided in this Act, or otherwise provided by the Corporation or by laws hereafter enacted by the Congress expressly in limitation of provisions of this Act, the powers and functions of the Corporation and of the Board of Directors shall be exercisable, and the provisions of this Act shall be applicable and effective, without regard to any other law. Notwithstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling intent of Congress that if any provision of this Act, or the application thereof to any persons or circumstances, is held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby.

FHLMC Charter Act of 1982

Explanatory Memorandum for Congress

This Memorandum describes, on a section-by-section basis, each provision of the revised Federal Home Loan Mortgage Corporation Charter Act (the "Charter Act") submitted to Congress in April, 1982. A four part analysis is given of each major section of the Charter Act. The first part describes the section. The second part notes all changes made to the original Federal Home Loan Mortgage Corporation Act (the "FHLMC Act"), whether by addition or deletion, and indicates the source of each provision of the Charter Act, especially where the provision has been adapted from analogous legislation creating either the Federal National Mortgage Association ("FNMA") or the Student Loan Marketing Association ("SLMA"). The purpose of and need for the section is set forth in the third part, and the fourth part contains an analysis of the extent to which the section is identical to or comparable to sections of the FNMA Charter Act. Introduction

The principal changes produced by the Charter Act include a recapitalization of the Corporation, a transition to a nine person Board of Directors (three of whom will be the members of the Federal Home Loan Bank Board, and six of whom will be elected by common stockholders), and a distribution of the voting common stock of the Corporation to the members of the twelve Federal Home Loan Banks. Thereafter, the Corporation has power to sell to the public both common and preferred stock, and to