Laws: Cases and Codes : U.S. Code : Title 12 : Section 1432


   
U.S. Code as of: 01/19/04
Section 1432. Incorporation of banks; corporate powers; housing project loans

      (a) The directors of each Federal Home Loan Bank shall, in
    accordance with such rules and regulations as the Board may
    prescribe, make and file with the Board at the earliest practicable
    date after the establishment of such bank, an organization
    certificate which shall contain such information as the Board may
    require. Upon the making and filing of such organization
    certificate with the Board, such bank shall become, as of the date
    of the execution of its organization certificate, a body corporate,
    and as such and in its name as designated by the Board it shall
    have power to adopt, alter, and use a corporate seal; to make
    contracts; to purchase or lease and hold or dispose of such real
    estate as may be necessary or convenient for the transaction of its
    business; to sue and be sued, to complain and to defend, in any
    court of competent jurisdiction, State or Federal; to select,
    employ, and fix the compensation of such officers, employees,
    attorneys, and agents as shall be necessary for the transaction of
    its business,; (!1) to define their duties, require bonds of them
    and fix the penalties thereof, and to dismiss at pleasure such
    officers, employees, attorneys, and agents; and, by the board of
    directors of the bank, to prescribe, amend, and repeal by-laws
    governing the manner in which its affairs may be administered,
    consistent with applicable laws and regulations, as administered by
    the Finance Board. No officer, employee, attorney, or agent of a
    Federal home loan bank who receives compensation, may be a member
    of the board of directors. Each such bank shall have all such
    incidental powers, not inconsistent with the provisions of this
    chapter, as are customary and usual in corporations generally.

      (b) Subject to such regulations as may be prescribed by the
    Board, one or more Federal home loan banks may acquire, hold, or
    dispose of, in whole or in part, or facilitate such acquisition,
    holding, or disposition by members of any such bank of, housing
    project loans, or interests therein, having the benefit of any
    guaranty under section 2181 of title 22, as now or hereafter in
    effect, or loans, or interests therein, having the benefit of any
    guaranty under section 2184 of title 22 or any commitment or
    agreement with respect to such loans, or interests therein, made
    pursuant to either of such sections. This authority extends to the
    acquisition, holding, and disposition of loans, or interests
    therein, having the benefit of any guaranty under section 2181 or
    2182 of title 22 or such sections as hereafter amended or extended,
    or of any commitment or agreement for any such guaranty.



Previous [Notes] Next

Related Resources

Banking Law Guide

Banking Articles and Documents

Banking Discussion

Ads by FindLaw