§1446 — Title 12 Banks and Banking | U.S. Code

Summary

The Director can close or reorganize a Federal Home Loan Bank and retire its stock when that helps carry out the law. The bank’s debts must be paid or provided for first. With the Director’s OK, another Federal Home Loan Bank may buy the assets and take on the debts of the closed or reorganized bank. The Director must tell the bank at least 30 days before the action and explain why. The bank can ask for a hearing, decided on the record under section 554 of title 5. Any Federal Home Loan Bank may merge with another bank if the Director and the banks’ boards approve. The Director must create rules about how voluntary mergers are reviewed and how bank members vote on them.

Title 12, §1446

Banks and Banking — Source: USLM XML via OLRC

(a)Whenever the Director finds that the efficient and economical accomplishment of the purposes of this chapter will be aided by such action, and in accordance with such rules, regulations, and orders as the Director may prescribe, any Federal Home Loan Bank may be liquidated or reorganized, and its stock paid off and retired in whole or in part in connection therewith after paying or making provision for the payment of its liabilities. In the case of any such liquidation or reorganization, any other Federal Home Loan Bank may, with the approval of the Director, acquire assets of any such liquidated or reorganized bank and assume liabilities thereof, in whole or in part. At least 30 days prior to liquidating or reorganizing any Bank under this section, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hearing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5.

(b)(1)Any Federal Home Loan Bank may, with the approval of the Director and of the boards of directors of the Banks involved, merge with another Bank.

(2)The Director shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any voluntary merger described in paragraph (1), including the procedures for Bank member approval.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2008—Pub. L. 110–289, § 1209, 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. Subsec. (a). Pub. L. 110–289, § 1214, which directed insertion of “At least 30 days prior to liquidating or reorganizing any Bank under this section, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hearing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5.” at the end of this section, was executed by making the insertion at the end of subsec. (a), to reflect the probable intent of Congress and the amendment by Pub. L. 110–289, § 1209. See above. 1989—Pub. L. 101–73 substituted “Board” for “board” wherever appearing.

§1446 Liquidation or Reorganization; Acquisition of Assets by Other Banks; Assumption of Liabilities

Summary

Title 12, §1446

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata