§1428 — Title 12 Banks and Banking | U.S. Code

Summary

The Director must review state laws and rules that affect institutions that could join or borrow from Federal Home Loan Banks, and matters about land titles, homesteads, and enforcing mortgage rights. If a State would not properly protect a Federal Home Loan Bank when it makes or collects advances, the Director may stop or limit the bank’s work in that State until laws or procedures are fixed. If state examinations are not adequate, the Director must run those exams and may treat the cost as part of advance costs. The banks or the Director may also study property value trends, appraisal methods, and similar topics to guide their policies.

Title 12, §1428

Banks and Banking — Source: USLM XML via OLRC

The Director shall cause to be made from time to time examinations of the laws of the various States of the United States and the regulations and procedure thereunder governing conditions under which institutions of the kinds which may become members or nonmember borrowers under this chapter are permitted to be formed or to do business, or relating to the conveying or recording of land titles, or to homestead and other rights, or to the enforcement of the rights of holders of mortgages on lands securing loans, or otherwise. If any such examination shall indicate, in the opinion of the Director, that under the laws of any such State or the regulations or procedure thereunder there would be inadequate protection to a Federal Home Loan Bank in making or collecting advances under this chapter, the Director may withhold or limit the operation of any Federal Home Loan Bank in such State until satisfactory conditions of law, regulation, or procedure shall be established. In any State where State examination of members or nonmember borrowers is deemed inadequate for the purposes of the Federal Home Loan Banks, the Director shall establish such examination, all or part of the cost of which may be considered as part of the cost of making advances in such State. The banks and/or the Director may make studies of trends of home and other property values, methods of appraisals, and other subjects such as they may deem useful for the general guidance of their policies and operations and those of institutions authorized to secure advances.

Editorial Notes

Amendments

2008—Pub. L. 110–289 substituted “The Director” for “The Board” and “the Director” for “the Board” wherever appearing. 1989—Pub. L. 101–73 substituted “Board” for “board” wherever appearing.

§1428 Examination of State Laws, Regulations, and Procedures; Studies of Values, Etc.

Summary

Title 12, §1428

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata