§1423 — Title 12 Banks and Banking | U.S. Code

Summary

The Director must divide the continental United States, Puerto Rico, the Virgin Islands, Guam, and the Territories of Alaska and Hawaii into between 8 and 12 districts. The districts must be drawn so they are convenient for the institutions likely to buy stock in a Federal Home Loan Bank, and no district can split a State. The Director can later change the district lines or create new districts as long as there are no more than 12. Each district gets a Federal Home Loan Bank placed in a city the Director chooses, and the bank’s name must include that city. The number of districts can be cut to less than 8 if Banks voluntarily merge with approval under section 1446(b), or if the Director decides to liquidate a Bank under section 4617.

Title 12, §1423

Banks and Banking — Source: USLM XML via OLRC

(a)As soon as practicable the Director shall divide 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 convenience 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)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.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2008—Pub. L. 110–289, § 1210, designated existing provisions 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 “Virgin Islands,”.

Executive Documents

Admission of Alaska and Hawaii to StatehoodAlaska 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.

§1423 Federal Home Loan Bank districts; number and boundaries; establishment of Federal Home Loan Banks; names