§1426a Exclusion from certain requirements

Summary

Gives the Federal Home Loan Banks and their members many specific exemptions from usual federal securities rules. The Banks do not have to follow a number of SEC registration, reporting, transfer, and trust-indentures requirements that normally apply to companies. The Banks also do not have to follow SEC tender-offer rules for their capital stock. Capital stock of the Banks is treated as an exempt security under federal securities law. Debentures, bonds, and other obligations issued by the Banks are treated as government securities. People who trade those stocks or obligations for others are still brokers or dealers, but they are not treated as government-securities brokers or dealers. The Banks are also excused from routine reporting about ordinary related-party deals with members and from reporting some unregistered equity sales. The Securities and Exchange Commission must write any needed rules to carry out these exemptions. When making rules, the SEC must consider certain accounting issues, including the payment to the Resolution Funding Corporation, combined financial statements of the Banks, how redeemable capital stock is classified, and the joint nature of the Banks’ obligations. The words "Bank," "Federal Home Loan Bank," "member," and "Federal Home Loan Bank System" mean their usual things. "Commission" means the Securities and Exchange Commission. "Securities laws" means the usual securities-law meaning.