PRIA, Government Policy, Made Personal

Summary

The Director must review state laws and rules from time to time. These reviews look at how banks and borrowers are set up and run, how land and homestead rights are handled, and how mortgage rights are enforced. If the laws or rules would not protect a Federal Home Loan Bank when it makes or collects loans, the Director can stop or limit a bank’s operations in that state until problems are fixed. If state exams of members or borrowers are not enough, the Director must do those exams and may count the cost as part of making loans. The Director and the banks may also study property values and appraisal methods 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