§1432 — Title 12 Banks and Banking | U.S. Code

Summary

Bank directors must file an organization certificate with the Director as soon as possible after the bank is set up. Once that certificate is signed and filed, the bank becomes a corporation on that date and can do the things a normal corporation does: use a corporate seal, make contracts, buy, lease, hold, or sell real estate needed for its business, sue and be sued, hire and fire officers and staff, set their pay, require bonds, and adopt bylaws that follow the laws and rules the Director enforces. Anyone who gets paid as an officer, employee, attorney, or agent may not be a member of the board. The bank also has the usual incidental corporate powers allowed by this chapter. Under rules the Director sets, one or more Federal Home Loan Banks may buy, hold, sell, or help members do so for housing project loans or interests that have a U.S. guaranty under title 22, sections 2181, 2182, or 2184 (including any commitments for such guaranties), as those sections now exist or may be changed later.

Title 12, §1432

Banks and Banking — Source: USLM XML via OLRC

(a)The directors of each Federal Home Loan Bank shall, in accordance with such rules and regulations as the Director may prescribe, make and file with the Director at the earliest practicable date after the establishment of such bank, an organization certificate which shall contain such information as the Director may require. Upon the making and filing of such organization certificate with the Director, 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 Director 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,; 11 So in original. 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 Director. 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 Director, 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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

Section 2184 of title 22, referred to in subsec. (b), which related to housing projects in Latin American countries, was omitted in the general amendment made by section 105 of Pub. L. 91–175, Dec. 30, 1969, 83 Stat. 807. See section 2182 of Title 22, Foreign Relations and Intercourse.

Amendments

2008—Subsec. (a). Pub. L. 110–289 substituted “administered by the Director” for “administered by the Finance Board” and “the Director” for “the Board” wherever appearing. Subsec. (b). Pub. L. 110–289, § 1204(8), substituted “the Director” for “the Board”. 1999—Subsec. (a). Pub. L. 106–102, § 606(d)(1), struck out “, but, except with the prior approval of the Board, no bank building shall be bought or erected to house any such bank, or leased by such bank under any lease for such purpose which has a term of more than ten years” after “convenient for the transaction of its business”, struck out “subject to the approval of the Board” after “necessary for the transaction of its business”, substituted “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” for “and, by its Board of directors, to prescribe, amend, and repeal bylaws, rules, and

Regulations

governing the manner in which its affairs may be administered; and the powers granted to it by law may be exercised and enjoyed subject to the approval of the Board. The president of a Federal Home Loan Bank may also be a member of the Board of directors thereof, but no other officer, employee, attorney, or agent of such bank,”, and, in penultimate sentence, substituted “board of directors” for “Board of directors” after “may be a member of the”. Subsec. (b). Pub. L. 106–102, § 606(d)(2), substituted “Federal home loan banks” for “Federal home loans banks”. 1989—Subsec. (a). Pub. L. 101–73 substituted “Board” for “board” wherever appearing. 1970—Subsec. (b). Pub. L. 91–609 extended authority to make housing project loans to acquisition, holding, and disposition of loans, or interest therein, having 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. 1968—Pub. L. 90–448 designated existing provisions as subsec. (a) and added subsec. (b). 1966—Pub. L. 89–754 substituted “but, except with the prior approval of the board, no bank building shall be bought or erected to house any such bank, or leased by such bank under any lease” for “but no bank building shall be bought or erected to house any such bank, nor shall any such bank make any lease” in second sentence.

§1432 Incorporation of banks; corporate powers; housing project loans

Summary

Title 12, §1432

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Regulations

Regulations

Citations & Metadata