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U.S. Code as of:
01/19/04
Section 1430b. Advances to nonmember mortgagee; terms and conditions
(a) In general
Each Federal Home Loan Bank is authorized to make advances to
nonmember mortgagees approved under title II of the National
Housing Act [12 U.S.C. 1707 et seq.]. Such mortgagees must be
chartered institutions having succession and subject to the
inspection and supervision of some governmental agency, and whose
principal activity in the mortgage field must consist of lending
their own funds. Such advances shall not be subject to the other
provisions 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 section
shall be at such rates of interest and upon such terms and
conditions as shall be determined by the Board, 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 requirements 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 family or multifamily residential mortgages.
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