12 U.S.C. § 1422 — Definitions

Page 280 TITLE 12—BANKS AND BANKING §§ 1401 to 1404 §§ 1401 to 1404. Repealed. Pub. L. 115–334, title V, § 5411(64), Dec. 20, 2018, 132 Stat. 4686 Section 1401, act Mar. 3, 1932, ch. 70, § 1, 47 Stat. 60; Ex. Ord. No. 6084, Mar. 27, 1933, related to authorization of loans by the Governor of the Farm Credit Adminis- tration. Section 1402, act Mar. 3, 1932, ch. 70, § 2, 47 Stat. 60; Ex. Ord. No. 6084, Mar. 27, 1933, set limitation on loans to individual stockholders and required approval of fi- nancial structure of corporation prior to loan made upon its capital stock. Section 1403, act Mar. 3, 1932, ch. 70, § 3, 47 Stat. 60, re- lated to minimum paid-in capital stock for loan or ad- vance. Section 1404, act Mar. 3, 1932, ch. 70, § 4, 47 Stat. 60, authorized appropriations to be paid into a revolving fund. CHAPTER 11—FEDERAL HOME LOAN BANKS Sec. 1421. Short title. 1422. Definitions. 1422a, 1422b. Repealed. 1423. Federal Home Loan Bank districts; number and boundaries; establishment of Federal Home Loan Banks; names. 1424. Eligibility for membership. 1425 to 1425b. Repealed. 1426. Capital structure of Federal home loan banks. 1426a. Exclusion from certain requirements. 1427. Directors. 1428. Examination of State laws, regulations, and procedures; studies of values, etc. 1428a. Repealed. 1429. Eligibility to secure advances. 1430. Advances to members. 1430a. Omitted. 1430b. Advances to nonmember mortgagee; terms and conditions. 1430c. Housing goals. 1431. Powers and duties of banks. 1432. Incorporation of banks; corporate powers; housing project loans. 1433. Exemption from taxation; obligations accept- able as credit on debt of home owner. 1434. Depositaries of public money; financial agents. 1435. Obligations as lawful investments; liability of United States for debentures, etc., issued by banks. 1436. Reserves and dividends; emergency suspen- sions of requirements. 1437. Repealed. 1438. Omitted. 1438a. Nonadministrative expenses; expenses of studies and investigations. 1439, 1439–1. Repealed. 1439a. Deposits in special fund; availability for all purposes of Federal Home Loan Bank Board and Federal Home Loan Bank Administra- tion. 1440. Examinations and audits. 1440a. Sharing of information among Federal Home Loan Banks. 1441. Financing Corporation. 1441a. Repealed. 1441a–1. Definitions. 1441a–2. Authorization for State housing finance agen- cies and nonprofit entities to purchase mortgage-related assets. 1441a–3. RTC and FDIC properties. 1441b. Resolution Funding Corporation established. 1442. Member financial information. 1442a. Repealed. 1443. Forms of bank stock and obligations. 1444. Eligibility to membership in banks. 1445. Succession of Federal Home Loan Banks. Sec. 1446. Liquidation or reorganization; acquisition of assets by other banks; assumption of liabil- ities. 1447. Repealed. 1448. Effect of partial invalidity of chapter. 1449. Reservation of right to amend or repeal chap- ter. § 1421. Short title This chapter may be cited as the ‘‘Federal Home Loan Bank Act.’’ (July 22, 1932, ch. 522, § 1, 47 Stat. 725.) Statutory Notes and Related Subsidiaries SHORT TITLE OF 1999 AMENDMENT Pub. L. 106–102, title VI, § 601, Nov. 12, 1999, 113 Stat. 1450, provided that: ‘‘This title [amending sections 250, 1422, 1422b, 1424, 1426, 1427, 1429, 1430, 1432, 1436, 1438, 1441b, 1464, and 1467a of this title, repealing sections 1442a and 1447 of this title, and enacting provisions set out as a note under section 1441b of this title] may be cited as the ‘Federal Home Loan Bank System Mod- ernization Act of 1999’.’’ SHORT TITLE OF 1993 AMENDMENT Pub. L. 103–204, § 1(a), Dec. 17, 1993, 107 Stat. 2369, pro- vided that: ‘‘This Act [enacting section 1447 of this title and section 8C of the Inspector General Act of 1978, Pub. L. 95–452, set out in the Appendix to Title 5, Gov- ernment Organization and Employees, amending sec- tions 1441a, 1811, 1813, 1815, 1817, 1818, 1821, 1822, 1824, 1831j, and 1831q of this title, sections 5314 and 5315 of Title 5, and sections 8D to 8G and 11 of the Inspector General Act of 1978, Pub. L. 95–452, set out in the Ap- pendix to Title 5, enacting provisions set out as notes under sections 1441a, 1811, 1817, 1821, 1822, 1827, and 1831q of this title and section 3 of the Inspector General Act of 1978, Pub. L. 95–452, set out in the Appendix to Title 5, and amending provisions set out as notes under sec- tion 396f of Title 16, Conservation, and section 1611 of Title 43, Public Lands] may be cited as the ‘Resolution Trust Corporation Completion Act’.’’ SHORT TITLE OF 1991 AMENDMENTS Pub. L. 102–233, § 1, Dec. 12, 1991, 105 Stat. 1761, pro- vided that: ‘‘This Act [enacting section 2907 of this title, amending sections 1441, 1441a, 1441b, 1786, 1818, 1821, 1821a, 1833b, 1833e, 3345, and 3348 of this title, sec- tions 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 this section and sections 1441, 1441a, and 1831n of this title, and amending provisions set out as notes under sec- tions 1437 and 1441a of this title] may be cited as the ‘Resolution Trust Corporation Refinancing, Restruc- turing, and Improvement Act of 1991’.’’ Pub. L. 102–233, title III, § 301, Dec. 12, 1991, 105 Stat. 1767, provided that: ‘‘This title [amending sections 1441, 1441a, 1441b, 1786, 1818, 1821, 1833b, and 1833e of this title, sections 5313 and 5314 of Title 5, Government Organiza- tion and Employees, and section 11 of the Inspector General Act of 1978, Pub. L. 95–452, set out in the Ap- pendix to Title 5, enacting provisions set out as notes under sections 1441 and 1441a of this title, and amend- ing provisions set out as notes under sections 1437 and 1441a of this title] may be cited as the ‘Resolution Trust Corporation Thrift Depositor Protection Reform Act of 1991’.’’ Pub. L. 102–18, § 1, Mar. 23, 1991, 105 Stat. 58, provided that: ‘‘This Act [amending sections 1441a and 1812 of this title and enacting provisions set out as notes under section 1441a of this title] may be cited as the ‘Resolution Trust Corporation Funding Act of 1991’.’’ § 1422. Definitions As used in this chapter— Page 281 TITLE 12—BANKS AND BANKING § 1422 1 See References in Text note below. (1)(A) BANK.—The term ‘‘Federal Home Loan Bank’’ or ‘‘Bank’’ means a bank established under the authority of this chapter. (B) BANK SYSTEM.—The term ‘‘Federal Home Loan Bank System’’ means the Federal Home Loan Banks under the supervision of the Di- rector. (2) STATE.—The term ‘‘State’’, in addition to the States of the United States, includes the District of Columbia, Guam, Puerto Rico, the United States Virgin Islands, American Samoa, and the Commonwealth of the North- ern Mariana Islands. (3) The term ‘‘member’’ means any institu- tion which has subscribed for the stock of a Federal Home Loan Bank. (4) The term ‘‘home mortgage loan’’ means a loan made by a member upon the security of a home mortgage. (5) 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 de- fined by the Director and shall include, in ad- dition to first mortgages, such classes of first liens as are commonly given to secure ad- vances on real estate by institutions author- ized under this chapter to become members, under the laws of the State in which the real estate is located, together with the credit in- struments, if any, secured thereby. (6) The term ‘‘unpaid principal,’’ when used in respect of a loan secured by a home mort- gage 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. (7) An ‘‘amortized’’ or ‘‘installment’’ home mortgage loan shall, for the purposes of this chapter, be a home mortgage loan to be repaid or liquidated in not less than eight years by means of regular weekly, monthly, or quar- terly payments made directly in reduction of the debt or upon stock or shares pledged as collateral for the repayment of such loan. (8) SAVINGS ASSOCIATION.—The term ‘‘savings association’’ has the meaning given to such term in section 3 of the Federal Deposit Insur- ance Act [12 U.S.C. 1813]. (9) 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 [12 U.S.C. 1813]), and (B) except as used in sections 1441a 1 and 1441b of this title, an insured credit union (as defined in section 1752 of this title). (10) COMMUNITY FINANCIAL INSTITUTION.— (A) IN GENERAL.—The term ‘‘community fi- nancial institution’’ means a member— (i) the deposits of which are insured under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]; and (ii) that has, as of the date of the trans- action at issue, less than $1,000,000,000 in average total assets, based on an average of total assets over the 3 years preceding that date. (B) ADJUSTMENTS.—The $1,000,000,000 limit referred to in subparagraph (A)(ii) shall be adjusted annually by the Director, based on the annual percentage increase, if any, in the Consumer Price Index for all urban con- sumers, as published by the Department of Labor. (11) DIRECTOR.—The term ‘‘Director’’ means the Director of the Federal Housing Finance Agency. (12) AGENCY.—The term ‘‘Agency’’ means the Federal Housing Finance Agency, established under section 4511 of this title. (July 22, 1932, ch. 522, § 2, 47 Stat. 725; June 27, 1934, ch. 847, § 507, 48 Stat. 1264; May 28, 1935, ch. 150, § 1, 49 Stat. 293; July 14, 1952, ch. 723, § 10(c), 66 Stat. 604; Pub. L. 86–70, § 9(a), June 25, 1959, 73 Stat. 142; Pub. L. 86–624, § 5(a), July 12, 1960, 74 Stat. 411; Pub. L. 87–779, § 2(a), Oct. 9, 1962, 76 Stat. 779; Pub. L. 101–73, title VII, §§ 701(a), 710(b)(1), Aug. 9, 1989, 103 Stat. 411, 418; Pub. L. 106–102, title VI, § 602, Nov. 12, 1999, 113 Stat. 1450; Pub. L. 110–289, div. A, title II, §§ 1203, 1204(8), (10), 1211(a), July 30, 2008, 122 Stat. 2785, 2786, 2790.) Editorial Notes REFERENCES IN TEXT Section 1441a of this title, referred to in par. (9)(B), was repealed by Pub. L. 111–203, title III, § 364(b), July 21, 2010, 124 Stat. 1555. The Federal Deposit Insurance Act, referred to in par. (10)(A)(i), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. AMENDMENTS 2008—Par. (1). Pub. L. 110–289, § 1203(1), (2), redesig- nated par. (2) as (1) and struck out former par. (1). Prior to amendment, text read as follows: ‘‘The terms ‘Fi- nance Board’ and ‘Board’ mean the Federal Housing Fi- nance Board established under section 1422a of this title.’’ Par. (1)(B). Pub. L. 110–289, § 1204(8), substituted ‘‘the Director’’ for ‘‘the Board’’. Pars. (2) to (4). Pub. L. 110–289, § 1203(2), redesignated pars. (3) to (5) as (2) to (4), respectively. Former par. (2) redesignated (1). Par. (5). Pub. L. 110–289, § 1204(8), substituted ‘‘the Di- rector’’ for ‘‘the Board’’. Pub. L. 110–289, § 1203(2), redesignated par. (6) as (5). Former par. (5) redesignated (4). Pars. (6) to (9). Pub. L. 110–289, § 1203(2), (3), redesig- nated pars. (7) to (9) and (12) as (6) to (9), respectively. Former par. (6) redesignated (5). Par. (10). Pub. L. 110–289, § 1203(1), (3), redesignated par. (13) as (10) and struck out former par. (10). Prior to amendment, text read as follows: ‘‘The term ‘Chair- person’ means the Chairperson of the Board.’’ Par. (10)(A)(ii). Pub. L. 110–289, § 1211(a), substituted ‘‘$1,000,000,000’’ for ‘‘$500,000,000’’. Par. (10)(B). Pub. L. 110–289, § 1211(a), substituted ‘‘$1,000,000,000’’ for ‘‘$500,000,000’’. Pub. L. 110–289, § 1204(10), substituted ‘‘the Director’’ for ‘‘the Finance Board’’. Pars. (11) to (13). Pub. L. 110–289, § 1203(1), (3), (4), added pars. (11) and (12), redesignated former pars. (12) Page 282 TITLE 12—BANKS AND BANKING §§ 1422a, 1422b and (13) as (9) and (10), respectively, and struck out former par. (11). Prior to amendment, text read as fol- lows: ‘‘The term ‘Secretary’ means the Secretary of Housing and Urban Development.’’ 1999—Par. (1). Pub. L. 106–102, § 602(1), substituted ‘‘terms ‘Finance Board’ and ‘Board’ mean’’ for ‘‘term ‘Board’ means’’. Par. (3). Pub. L. 106–102, § 602(2), added par. (3) and struck out former par. (3) which read as follows: ‘‘The term ‘State’ includes the District of Columbia, Guam, Puerto Rico, and the Virgin Islands of the United States.’’ Par. (13). Pub. L. 106–102, § 602(3), added par. (13). 1989—Pars. (1), (2). Pub. L. 101–73, § 701(a)(1), added pars. (1) and (2) and struck out former pars. (1) and (2) which defined ‘‘board’’ and ‘‘Federal Home Loan Bank’’. Par. (4). Pub. L. 101–73, § 701(a)(2), which directed amendment of par. (4) by striking out ‘‘(except when used in reference to the member of the Board)’’ after ‘‘ ‘member’ ’’, was executed by striking out ‘‘(except when used in reference to a member of the board)’’ as the probable intent of Congress. Par. (5). Pub. L. 101–73, § 710(b)(1), struck out ‘‘or a nonmember borrower’’ after ‘‘member’’. Pars. (9) to (12). Pub. L. 101–73, § 701(a)(3), added pars. (9) to (12) and struck out former par. (9) which read as follows: ‘‘The term ‘nonmember borrower’ includes an institution authorized to secure advances from a Fed- eral Home Loan Bank under the provisions of sub- section (e) of section 1426 of this title.’’ 1962—Subsec. (6). Pub. L. 87–779 substituted ‘‘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’’ for ‘‘upon which there is lo- cated a dwelling for not more than four families’’. 1960—Subsec. (3). Pub. L. 86–624 struck out reference to Territory of Hawaii. 1959—Subsec. (3). Pub. L. 86–70 substituted ‘‘Territory of Hawaii’’ for ‘‘Territories of Alaska and Hawaii’’. 1952—Subsec. (3). Act July 14, 1952, inserted ‘‘Guam,’’. 1935—Subsec. (6). Act May 28, 1935, substituted ‘‘four families’’ for ‘‘three families’’. 1934—Subsec. (6). Act June 27, 1934, struck out ‘‘first’’ before ‘‘mortgage’’ and inserted ‘‘or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed’’. §§ 1422a, 1422b. Repealed. Pub. L. 110–289, div. A, title II, § 1204(1), July 30, 2008, 122 Stat. 2785 Section 1422a, act July 22, 1932, ch. 522, § 2A, as added Pub. L. 101–73, title VII, § 702(a), Aug. 9, 1989, 103 Stat. 413; amended Pub. L. 102–550, title XIII, § 1391, title XVI, § 1608, Oct. 28, 1992, 106 Stat. 4009, 4089, established the Federal Housing Finance Board. Section 1422b, act July 22, 1932, ch. 522, § 2B, as added Pub. L. 101–73, title VII, § 702(a), Aug. 9, 1989, 103 Stat. 414; amended Pub. L. 106–102, title VI, § 606(e)(1), Nov. 12, 1999, 113 Stat. 1454, related to powers and duties of the Federal Housing Finance Board. § 1423. Federal Home Loan Bank districts; num- ber and boundaries; establishment of Federal Home Loan Banks; names (a) In general As soon as practicable the Director shall di- vide the continental United States, Puerto Rico, the Virgin Islands, Guam, and the Territories of Alaska and Hawaii into not less than eight nor more than twelve districts. Such districts shall be apportioned with due regard to the conven- ience and customary course of business of the institutions eligible to and likely to subscribe for stock of a Federal Home Loan Bank to be formed under this chapter, but no such district shall contain a fractional part of any State. The districts thus created may be readjusted and new districts may from time to time be created by the Director, not to exceed twelve in all. Such districts shall be known as Federal Home Loan Bank districts and may be designated by number. As soon as practicable the Director shall establish, in each district, a Federal Home Loan Bank at such city as may be designated by the Director. Its title shall include the name of the city at which it is established. (b) Authority to reduce districts Notwithstanding subsection (a), the number of districts may be reduced to a number less than 8— (1) pursuant to a voluntary merger between Banks, as approved pursuant to section 1446(b) of this title; or (2) pursuant to a decision by the Director to liquidate a Bank pursuant to section 4617 of this title. (July 22, 1932, ch. 522, § 3, 47 Stat. 726; July 14, 1952, ch. 723, § 10(c), 66 Stat. 604; 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), 1210, July 30, 2008, 122 Stat. 2786, 2790.) Editorial Notes AMENDMENTS 2008—Pub. L. 110–289, § 1210, 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. 1989—Pub. L. 101–73 substituted ‘‘Board’’ for ‘‘board’’ wherever appearing. 1952—Act July 14, 1952, inserted ‘‘Guam,’’ after ‘‘Vir- gin Islands,’’. Executive Documents ADMISSION OF ALASKA AND HAWAII TO STATEHOOD Alaska was admitted into the Union on Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. C16, and Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. C74. For Alaska Statehood Law, see Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set out as a note preceding section 21 of Title 48, Territories and Insular Possessions. For Hawaii Statehood Law, see Pub. L. 86–3, Mar. 18, 1959, 73 Stat. 4, set out as a note preceding section 491 of Title 48. § 1424. Eligibility for membership (a) Criteria for eligibility (1) In general Any building and loan association, savings and loan association, cooperative bank, home- stead association, insurance company, savings bank, community development financial insti- tution, or any insured depository institution (as defined in section 1422 of this title), shall be eligible to become a member of a Federal Home Loan Bank if such institution— (A) is duly organized under the laws of any State or of the United States; (B) is subject to inspection and regulation under the banking laws, or under similar laws, of the State or of the United States or, in the case of a community development fi- nancial institution, is certified as a commu-