Laws: Cases and Codes : U.S. Code : Title 12 : Section 1422a


   
U.S. Code as of: 01/19/04
Section 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) 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) 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
        (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. Nominations
        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 2-year 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 Chairperson.
      (2) Transitional provision
        Beginning on August 9, 1989, until such time that at least 2
      directors are appointed and confirmed pursuant to subsection (b)
      of this section, 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 before the expiration of
      the term for which such director's predecessor was appointed
      shall be appointed only for the remainder of such term. Each
      director may continue to serve until a successor has been
      appointed and qualified.
      (2) The Secretary
        In the event of a vacancy in the office of Secretary or during
      the absence or disability of the Secretary, the Acting Secretary
      shall act as a director in place of the Secretary.



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