{"identifier":"/us/usc/t12/s1441b","title":12,"num":"\u00a7\u202f1441b.","heading":"Resolution Funding Corporation established","text":"\u00a7\u202f1441b.\nResolution Funding Corporation established\n(a)\nPurpose\nThe purpose of the Resolution Funding Corporation is to provide funds to the Resolution Trust Corporation to enable the Resolution Trust Corporation to carry out the provisions of this chapter.\n(b)\nEstablishment\nThere is established a corporation to be known as the Resolution Funding Corporation.\n(c)\nManagement of Funding Corporation\n(1)\nDirectorate\nThe Funding Corporation shall be under the management of a Directorate composed of 3 members as follows:\n(A) The director of the Office of Finance of the Federal Home Loan Banks (or the head of any successor office).\n(B) 2 members selected by the Thrift Depositor Protection Oversight Board from among the presidents of the Federal Home Loan Banks.\n(2)\nTerms\nOf the 2 members appointed under paragraph (1)(B), 1 shall be appointed for an initial term of 2 years and 1 shall be appointed for an initial term of 3 years. Thereafter, such members shall be appointed for a term of 3 years.\n(3)\nVacancy\nIf any member leaves the office in which such member was serving when appointed to the Directorate\u2014\n(A) such member\u2019s service on the Directorate shall terminate on the date such member leaves such office; and\n(B) the successor to the office of such member shall serve the remainder of such member\u2019s term.\n(4)\nEqual representation of banks\nNo president of a Federal Home Loan Bank may be appointed to serve an additional term on the Directorate until such time as the presidents of each of the other Federal Home Loan Banks have served as many terms as the president of such bank.\n(5)\nChairperson\nThe Thrift Depositor Protection Oversight Board shall select the chairperson of the Directorate from among the 3 members of the Directorate.\n(6)\nStaff\n(A)\nNo paid employees\nThe Funding Corporation shall have no paid employees.\n(B)\nPowers\nThe Directorate may, with the approval of the Director authorize the officers, employees, or agents of the Federal Home Loan Banks to act for and on behalf of the Funding Corporation in such manner as may be necessary to carry out the functions of the Funding Corporation.\n(7)\nAdministrative expenses\n(A)\nIn general\nAll administrative expenses of the Funding Corporation, including custodian fees, shall be paid by the Federal Home Loan Banks.\n(B)\nPro rata distribution\nThe amount each Federal Home Loan Bank shall pay under subparagraph (A) shall be determined by the Thrift Depositor Protection Oversight Board by multiplying the total administrative expenses for any period by the percentage arrived at by dividing\u2014\n(i) the aggregate amount the Thrift Depositor Protection Oversight Board required such bank to invest in the Funding Corporation (as of the time of such determination) under paragraphs (4) and (5) of subsection (e) (computed without regard to paragraphs (3) or (6) of such subsection); by\n(ii) the aggregate amount the Thrift Depositor Protection Oversight Board required all Federal Home Loan Banks to invest (as of the time of such determination) under such paragraphs.\n(8)\nRegulation by Thrift Depositor Protection Oversight Board\nThe Directorate of the Funding Corporation shall be subject to such regulations, orders, and directions as the Thrift Depositor Protection Oversight Board may prescribe.\n(9)\nNo compensation from Funding Corporation\nMembers of the Directorate of the Funding Corporation shall receive no pay, allowance, or benefit from the Funding Corporation for serving on the Directorate.\n(d)\nPowers of Funding Corporation\nThe Funding Corporation shall have only the powers described in paragraphs (1) through (9), subject to the other provisions of this section and such regulations, orders, and directions as the Thrift Depositor Protection Oversight Board may prescribe:\n(1)\nIssue stock\nTo issue nonvoting capital stock to the Federal Home Loan Banks.\n(2)\nPurchase capital stock; transfer amounts\nTo purchase capital certificates issued by the Resolution Trust Corporation under\nsection 1441a of this title\n(3)\nIssue obligations\nTo issue debentures, bonds, or other obligations, and to borrow, to give security for any amount borrowed, and to pay interest on (and any redemption premium with respect to) any such obligation or amount.\n(4)\nImpose assessments\nTo impose assessments in accordance with subsection (e)(7).\n(5)\nCorporate seal\nTo adopt, alter, and use a corporate seal.\n(6)\nSuccession\nTo have succession until dissolved.\n(7)\nContracts\nTo enter into contracts.\n(8)\nAuthority to sue\nTo sue and be sued in its corporate capacity, and to complain and defend in any action brought by or against the Funding Corporation in any State or Federal court of competent jurisdiction.\n(9)\nIncidental powers\nTo exercise such incidental powers not inconsistent with the provisions of this section and\nsection 1441a of this title\n(e)\nCapitalization of Funding Corporation, etc.\n(1)\nIn general\n(A)\nAmount required\nThe Thrift Depositor Protection Oversight Board shall ensure that the aggregate of the amounts obtained under this subsection shall be sufficient so that\u2014\n(i) the Funding Corporation may transfer the amounts required under paragraph (8); and\n(ii) the total of the face amounts (the amount of principal payable at maturity) of noninterest bearing instruments in the Funding Corporation Principal Fund are equal to the aggregate amount of principal on the obligations of the Funding Corporation.\n(B)\nPurchases of stock by Federal Home Loan Banks\nEach Federal Home Loan Bank shall purchase stock in the Funding Corporation at times and in amounts prescribed by the Thrift Depositor Protection Oversight Board.\n(2)\nPar value; transferability\nEach share of stock issued by the Funding Corporation to a Federal Home Loan Bank shall have a par value in an amount determined by the Thrift Depositor Protection Oversight Board and shall be transferable at not less than par value only among the Federal Home Loan Banks in the manner and to the extent prescribed by the Thrift Depositor Protection Oversight Board.\n(3)\nMaximum investment amount limitation for each Federal Home Loan Bank\nThe cumulative amount of funds invested in nonvoting capital stock of the Funding Corporation by each Federal Home Loan Bank under paragraph (1) shall not at any time exceed the sum of the amounts calculated under subparagraphs (A) and (B), as adjusted in subparagraph (C), as follows:\n(A)\nReserves and undivided profits on December 31, 1988\nThe sum on\n(i) the reserves maintained by such Bank pursuant to the reserve requirement contained in the first 2 sentences of\nsection 1436 of this title\nDecember 31, 1988\n(ii) the undivided profits of such Bank, minus the amounts invested in the capital stock of the Financing Corporation pursuant to\nsection 1441 of this title\n(B)\nSubsequent additions to reserves and un\u00addivided profits\nThe amount, calculated until the date on which the Funding Corporation Principal Fund is fully funded, equal to\u2014\n(i) the sum of\u2014\n(I) the amounts added to reserves by such Bank after\nDecember 31, 1988\nsection 1436 of this title\nDecember 31, 1988\n(II) the quarterly additions to undivided profits of the Bank after\nDecember 31, 1988\n(ii) the amounts invested by such Bank in the capital stock of the Financing Corporation after\nDecember 31, 1988\nsection 1441 of this title\n(C)\nAnnual adjustment\nThe amounts in subparagraph (B) shall be adjusted as follows:\n(i)\nIncrease in limit\nIf the aggregate amount for all Federal Home Loan Banks determined under subparagraph (B)(i) is less than $300,000,000 per year, the limit for each Bank shall be increased by an amount determined by the Thrift Depositor Protection Oversight Board by multiplying the aggregate deficiency by the percentage applicable to such Bank arrived at in the manner described in paragraph (5).\n(ii)\nDecrease in limit\nIf the aggregate amount for all Federal Home Loan Banks determined under subparagraph (B)(i) is more than $300,000,000 per year, the limit for each Bank shall be decreased by an amount determined by the Thrift Depositor Protection Oversight Board by multiplying the aggregate excess by the percentage applicable to such Bank arrived at in the manner described in paragraph (5).\n(4)\nPro rata distribution of first $1,000,000,000 invested in Funding Corporation by Federal Home Loan Banks\nOf the first $1,000,000,000 of the aggregate that the Director (pursuant to\nsection 1441 of this title\nBank\nPercentage\nFederal Home Loan Bank of Boston\n1.8629\nFederal Home Loan Bank of New York\n9.1006\nFederal Home Loan Bank of Pittsburgh\n4.2702\nFederal Home Loan Bank of Atlanta\n14.4007\nFederal Home Loan Bank of Cincinnati\n8.2653\nFederal Home Loan Bank of Indianapolis\n5.2863\nFederal Home Loan Bank of Chicago\n9.6886\nFederal Home Loan Bank of Des Moines\n6.9301\nFederal Home Loan Bank of Dallas\n8.8181\nFederal Home Loan Bank of Topeka\n5.2706\nFederal Home Loan Bank of San Francisco\n19.9644\nFederal Home Loan Bank of Seattle\n6.1422\n(5)\nPro rata distribution of amounts required to be invested in excess of $1,000,000,000\nOf any amount which the Thrift Depositor Protection Oversight Board may require the Federal Home Loan Banks to invest in capital stock of the Funding Corporation under this subsection in excess of the $1,000,000,000 amount referred to in paragraph (4), the amount which each Federal Home Loan Bank (or any successor to such Bank) shall invest shall be determined by the Thrift Depositor Protection Oversight Board by multiplying the excess amount by the percentage arrived at by dividing\u2014\n(A) the sum of the total assets (as of the most recent December 31) held by all Savings Association Insurance Fund members as of the date of funding which are members of such Bank; by\n(B) the sum of the total assets (as of such date) held by all Savings Association Insurance Fund members as of the date of funding which are members of a Federal Home Loan Bank.\n(6)\nSpecial provisions relating to maximum amount limitations\n(A)\nIn general\nIf the amount of any Federal Home Loan Bank\u2019s allocation under paragraph (5) exceeds the maximum amount applicable with respect to such Bank (in this paragraph referred to as a \u201cdeficient Bank\u201d) under paragraph (3) at the time of such determination (in this paragraph referred to as the \u201cexcess amount\u201d)\u2014\n(i) the Thrift Depositor Protection Oversight Board shall require each Federal Home Loan Bank that is not allocated an amount under paragraph (5) that exceeds its maximum under paragraph (3) (in this paragraph referred to as a \u201cremaining Bank\u201d) to purchase stock in the Funding Corporation (in addition to the amount determined under paragraph (5) for such remaining Bank and subject to the maximum amount applicable with respect to such remaining Bank under paragraph (3) at the time of such determination) on behalf of the deficient Bank the amount determined under subparagraph (B);\n(ii) the Thrift Depositor Protection Oversight Board shall require the deficient Bank to subsequently reimburse the remaining Banks out of its net earnings (or reimbursements received from other Banks) in the manner described in subparagraphs (C) and (D); and\n(iii) the requirements contained in subparagraph (D) relating to the use of net earnings shall apply to the deficient Bank until such Bank has reimbursed the remaining Banks for all of the excess amount.\n(B)\nAllocation of excess amount among remaining Federal Home Loan Banks\n(i)\nIn general\nThe amount of stock each remaining Federal Home Loan Bank shall be required to purchase under subparagraph (A)(i) is the amount determined by the Thrift Depositor Protection Oversight Board by multiplying the excess amount by the percentage arrived at by dividing\u2014\n(I) the cumulative amount of stock in the Funding Corporation purchased under this subsection by such remaining Bank at the time of such determination; by\n(II) the aggregate of the cumulative amounts invested under this subsection by all remaining Banks at such time.\n(ii)\nReallocation\nIf the allocation under this subparagraph results in a remaining Bank exceeding its maximum amount under paragraph (3), such excess amount shall be reallocated to the other remaining Bank in accordance with this subparagraph.\n(C)\nReimbursement procedure\n(i)\nIn general\nA Bank on whose behalf stock is purchased under subparagraph (A)(i) shall make payments annually from amounts, if any, in its reserve account (as described in subparagraph (D)) to each Bank that made payments on its behalf until a full reimbursement has been completed. A full reimbursement shall require repayment of the excess amounts invested by other Banks plus interest which shall accrue at a rate equal to the annual average cost of funds in the most recent year to all Federal Home Loan Banks and which shall begin to accrue 2 years after the investments under subparagraph (A)(i) are made.\n(ii)\nDetermination of amounts\nThe Thrift Depositor Protection Oversight Board shall annually determine the dollar amounts of such reimbursements by distributing the amount available for such reimbursements (at the time of such determination) from the reimbursing Bank to the Banks that made purchases on its behalf according to the shares of the reimbursing Bank\u2019s excess amount that the other Banks invested.\n(D)\nTransfer to account for reimbursements required\n(i)\nIn general\nOf the net earnings for any year of a Bank on whose behalf a purchase is made under subparagraph (A)(i) and any reimbursements received from other Banks, the amount necessary to make the reimbursements required under subparagraph (A)(ii) shall be placed in a reserve account (established in the manner prescribed by the Thrift Depositor Protection Oversight Board), which shall be available only for such reimbursements.\n(ii)\nLimitation\nThe total amount placed in such reserve account in any year by any Bank shall not exceed an amount equal to 20 percent of the net earnings of such Bank for such year.\n(f)\nObligations of Funding Corporation\n(1)\nIssuance\nThe Funding Corporation may issue bonds, notes, debentures, and similar obligations in an aggregate amount not to exceed $30,000,000,000. No obligation may be issued under this paragraph unless, at the time of issuance, the face amounts (the amount of principal payable at maturity) of noninterest bearing instruments in the Funding Corporation Principal Fund are equal to the aggregate amount of principal on the obligations of the Funding Corporation that will be outstanding following such issuance.\n(2)\nInterest payments\nThe Funding Corporation shall pay the interest due on such obligations from funds obtained for such interest payments from the following sources:\n(A)\nEarnings on certain assets\nEarnings on assets of the Funding Corporation which are not invested in the Funding Corporation Principal Fund shall be used for interest payments on outstanding debt of the Funding Corporation.\n(B)\nProceeds from Resolution Trust Corporation\nTo the extent the amounts available pursuant to subparagraph (A) are insufficient to cover the amount of interest payments, the Resolution Trust Corporation shall pay to the Funding Corporation\u2014\n(i) the liquidating dividends and payments made on claims received by the Resolution Trust Corporation from receiverships to the extent such proceeds are determined by the Thrift Depositor Protection Oversight Board to be in excess of funds presently necessary for resolution costs; and\n(ii) any proceeds from warrants and participations acquired by the Resolution Trust Corporation.\n(C)\nPayments by Federal home loan banks\n(i)\nIn general\nTo the extent that the amounts available pursuant to subparagraphs (A) and (B) are insufficient to cover the amount of interest payments, each Federal home loan bank shall pay to the Funding Corporation in each calendar year, 20.0 percent of the net earnings of that Bank (after deducting expenses relating to\nsection 1430(j) of this title\n(ii)\nAnnual determination\nThe Director annually shall determine the extent to which the value of the aggregate amounts paid by the Federal home loan banks exceeds or falls short of the value of an annuity of $300,000,000 per year that commences on the issuance date and ends on the final scheduled maturity date of the obligations, and shall select appropriate present value factors for making such determinations, in consultation with the Secretary of the Treasury.\n(iii)\nPayment term alterations\nThe Director shall extend or shorten the term of the payment obligations of a Federal home loan bank under this subparagraph as necessary to ensure that the value of all payments made by the Banks is equivalent to the value of an annuity referred to in clause (ii).\n(iv)\nTerm beyond maturity\nIf the Director extends the term of payment obligations beyond the final scheduled maturity date for the obligations, each Federal home loan bank shall continue to pay 20.0 percent of its net earnings (after deducting expenses relating to\nsection 1430(j) of this title\n(v)\nSemiannual reports\nThe Director shall report semiannually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the projected date for the completion of contributions required by this section.\n(D)\nProceeds from sale of assets\nTo the extent the amounts available pursuant to subparagraphs (A), (B), and (C) are insufficient to cover the amount of interest payments, the FSLIC Resolution Fund shall transfer to the Funding Corporation any net proceeds from the sale of assets received from the Resolution Trust Corporation, which shall be used by the Funding Corporation to pay such interest.\n(E)\nTreasury backup\n(i)\nIn general\nTo the extent the amounts available pursuant to subparagraphs (A), (B), (C), and (D) are insufficient to cover the amount of interest payments, the Secretary of the Treasury shall pay to the Funding Corporation the additional amount due, which shall be used by the Funding Corporation to pay such interest.\n(ii)\nLiability of Funding Corporation\nIn each instance where the Secretary is required to make a payment under this subparagraph to the Funding Corporation, the amount of the payment shall become a liability of the Funding Corporation to be repaid to the Secretary upon dissolution of the Funding Corporation (to the extent the Funding Corporation may have any remaining assets).\n(iii)\nAppropriation of funds\nThere are hereby appropriated to the Secretary, for fiscal year 1989 and each fiscal year thereafter, such sums as may be necessary to carry out clause (i).\n(3)\nPrincipal payments\nOn maturity of an obligation issued under this subsection, the obligation shall be repaid by the Funding Corporation from the liquidation of noninterest bearing instruments held in the Funding Corporation Principal Fund.\n(4)\nProceeds to be transferred to Resolution Trust Corporation\nSubject to terms and conditions approved by the Thrift Depositor Protection Oversight Board, the proceeds (less any discount, plus any premium, net of issuance costs) of any obligation issued by the Funding Corporation shall be used to\u2014\n(A) purchase the capital certificates issued by the Resolution Trust Corporation under\nsection 1441a of this title\n(B) refund any previously issued obligation the proceeds of which were transferred in the manner described in subparagraph (A).\n(5)\nInvestment of United States funds in obligations\nObligations issued under this section by the Funding Corporation, at the direction of the Thrift Depositor Protection Oversight Board shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer of the United States.\n(6)\nMarket for obligations\nAll persons having the power to invest in, sell, underwrite, purchase for their own accounts, accept as security, or otherwise deal in obligations of the Federal Home Loan Banks shall also have the power to do so with respect to obligations of the Funding Corporation.\n(7)\nTax exempt status\n(A)\nIn general\nExcept as provided in subparagraph (B), obligations of the Funding Corporation shall be exempt from tax both as to principal and interest to the same extent as any obligation of a Federal Home Loan Bank is exempt from tax under\nsection 1433 of this title\n(B)\nException\nThe Funding Corporation, like the Federal Home Loan Banks, shall be treated as an agency of the United States for purposes of the first sentence of\nsection 3124(b) of title 31\n(8)\nObligations not exempt securities\n(A)\nIn general\nFor purposes of the laws administered by the Securities and Exchange Commission, obligations of the Funding Corporation\u2014\n(i) shall not be considered to be securities issued or guaranteed by a person controlled or supervised by, or acting as an instrumentality of, the Government of the United States; and\n(ii) shall not be considered to be \u201cexempted securities\u201d within the meaning of\nsection 78c(a)(12)(A)(i) of title 15\no\n(B)\nAuthority of Commission\nNotwithstanding subparagraph (A), the Securities and Exchange Commission may, by rule or order, consistent with the public interest and the protection of investors, exempt securities issued by the Funding Corporation from the registration requirements of the Securities Act of 1933 [\n15 U.S.C. 77a\n(9)\nMinority participation in public or negotiated offerings\nThe Thrift Depositor Protection Oversight Board and the Directorate shall ensure that minority owned or controlled commercial banks, investment banking firms, underwriters, and bond counsels throughout the United States have an opportunity to participate to a significant degree in any public or negotiated offering of obligations issued under this section.\n(10)\nNo full faith and credit of the United States\nObligations of the Funding Corporation shall not be obligations of, or guaranteed as to principal by, the Federal Home Loan Bank System, the Federal Home Loan Banks, the United States, or the Resolution Trust Corporation and the obligations shall so plainly state. The Secretary shall pay interest on such obligations as required pursuant to this subsection.\n(g)\nUse and disposition of assets of Funding Corporation not transferred to Resolution Trust Corporation\n(1)\nIn general\nSubject to regulations, restrictions, and limitations prescribed by the Thrift Depositor Protection Oversight Board, assets of the Funding Corporation which are not required to be invested in capital certificates issued by the Resolution Trust Corporation under\nsection 1441a of this title\n(2)\nSeparate account for zero coupon instruments held to ensure payment of principal\nExcept as provided in subsection (e)(8), the Funding Corporation shall invest amounts received pursuant to subsection (e) in, and hold in a separate account to be known as the Funding Corporation Principal Fund, noninterest bearing instruments\u2014\n(A) which are direct obligations of the United States issued by the Secretary; and\n(B) the total of the face amounts (the amount of principal payable at maturity) of which is approximately equal to the aggregate amount of principal on the obligations of the Funding Corporation.\n(h)\nMiscellaneous provisions\n(1)\nTreatment for certain purposes\nExcept as provided in subsection (f)(7)(B), the Funding Corporation shall be treated as a Federal Home Loan Bank for purposes of\nsection 1433 of this title\nsection 1443 of this title\n(2)\nFederal Reserve banks as depositaries and fiscal agents\nThe Federal Reserve banks are authorized to act as depositaries for or fiscal agents or custodians of the Funding Corporation.\n(3)\nApplicability of certain provisions relating to Government corporations\nThe Funding Corporation shall be treated, for purposes of sections 9105,\n1\n1 See References in Text note below.\n(4)\nJurisdiction and power to remove\n(A)\nFederal court jurisdiction\nNotwithstanding any other provision of law, any civil action, suit, or proceeding to which the Funding Corporation is a party shall be deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction over such action, suit, or proceeding.\n(B)\nRemoval\nThe Funding Corporation may, without bond or security, remove any such action, suit, or proceeding from a State court to the United States District Court for the District of Columbia.\n(i)\nAnnual report\n(1)\nIn general\nThe Thrift Depositor Protection Oversight Board shall annually submit a full report of the operations, activities, budget, receipts, and expenditures of the Funding Corporation for the preceding 12-month period.\n(2)\nContents\nThe report required under paragraph (1) shall include\u2014\n(A) audited statements and any information necessary to make known the financial condition and operations of the Funding Corporation in accordance with generally accepted accounting principles;\n(B) the financial operating plans and forecasts (including estimates of actual and future spending, and estimates of actual and future cash obligations) of the Funding Corporation taking into account its financial commitments, guarantees, and other contingent liabilities; and\n(C) the results of the annual audit of the financial transactions of the Funding Corporation conducted by the Comptroller General pursuant to\nsection 9105(a) of title 31\n(3)\nSubmission to Congress and President\nThe Thrift Depositor Protection Oversight Board shall submit each annual report required under this subsection to the Congress and the President as soon as practicable after the end of the calendar year for which the report is made, but not later than June 30 of the year following such calendar year.\n(j)\nTermination of Funding Corporation\n(1)\nIn general\nThe Funding Corporation shall be dissolved, as soon as practicable, after the maturity and full payment of all obligations issued by the Funding Corporation under this section.\n(2)\nAuthority of Thrift Depositor Protection Oversight Board to conclude affairs of Funding Corporation\nEffective on the date of the dissolution of the Funding Corporation under paragraph (1), the Thrift Depositor Protection Oversight Board may exercise on behalf of the Funding Corporation any power of the Funding Corporation which the Thrift Depositor Protection Oversight Board determines to be necessary to settle and conclude the affairs of the Funding Corporation.\n(k)\nDefinitions\nFor purposes of this section, the following definitions shall apply:\n(1)\nAdministrative expenses\nThe term \u201cadministrative expenses\u201d does not include\u2014\n(A) any interest on, or any redemption premium with respect to, any obligation of the Funding Corporation; or\n(B) issuance costs.\n(2)\nCustodian fee\nThe term \u201ccustodian fee\u201d means\u2014\n(A) any fee incurred by the Funding Corporation in connection with the transfer of any security to, or the maintenance of any security in, the segregated account established under subsection (g); and\n(B) any other expense incurred by the Funding Corporation in connection with the establishment or maintenance of such account.\n(3)\nFunding Corporation\nThe term \u201cFunding Corporation\u201d means the Resolution Funding Corporation established in subsection (b).\n(4)\nFunding Corporation Principal Fund\nThe term \u201cFunding Corporation Principal Fund\u201d means the separate account established under subsection (g)(2).\n(5)\nIssuance costs\nThe term \u201cissuance costs\u201d\u2014\n(A) means issuance fees and commissions incurred by the Funding Corporation in connection with the issuance or servicing of any obligation of the Funding Corporation; and\n(B) includes legal and accounting expenses, trustee and fiscal and paying agent charges, costs incurred in connection with preparing and printing offering materials, and advertising expenses, to the extent that any such cost or expense is incurred by the Funding Corporation in connection with issuing any obligation.\n(6)\nNet earnings\nThe term \u201cnet earnings\u201d means net earnings without reduction for chargeoffs or expenses incurred by a Federal Home Loan Bank for the purchase of capital stock of the Financing Corporation or payments relating to the Funding Corporation required by the Thrift Depositor Protection Oversight Board under subsections (e) and (f).\n(7)\nThrift Depositor Protection Oversight Board\nThe term \u201cThrift Depositor Protection Oversight Board\u201d means\u2014\n(A) the Thrift Depositor Protection Oversight Board of the Resolution Trust Corporation under\nsection 1441a of this title\n(B) after the termination of the Resolution Trust Corporation\u2014\n(i) the Secretary of the Treasury;\n(ii) the Chairman of the Board\n2\n2 See 2008 Amendment note below.\n(iii) the Secretary of Housing and Urban Development.\n(8)\nSecretary\nThe term \u201cSecretary\u201d means the Secretary of the Treasury.\n(9)\nUndivided profits\nThe term \u201cundivided profits\u201d means earnings retained after dividends have been paid minus the sum of\u2014\n(A) that portion required to be added to reserves maintained pursuant to the first 2 sentences of\nsection 1436 of this title\n(B) the dollar amounts held by the respective Federal Home Loan Banks in special dividend stabilization reserves on\nDecember 31, 1985\nsection 1441(d)(7) of this title\n(l)\nRegulations\nThe Thrift Depositor Protection Oversight Board may prescribe any regulations necessary to carry out this section.","url":"https://projectusc.org/usc/t12/s1441b.html","content":[{"t":"sec","id":"/us/usc/t12/s1441b","children":[{"t":"num","text":"\u00a7\u202f1441b."},{"t":"heading","text":"Resolution Funding Corporation established"},{"t":"subsec","id":"/us/usc/t12/s1441b/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Purpose"},{"t":"content","children":[{"t":"p","text":"The purpose of the Resolution Funding Corporation is to provide funds to the Resolution Trust Corporation to enable the Resolution Trust Corporation to carry out the provisions of this chapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Establishment"},{"t":"content","children":[{"t":"p","text":"There is established a corporation to be known as the Resolution Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Management of Funding Corporation"},{"t":"para","id":"/us/usc/t12/s1441b/c/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Directorate"},{"t":"chapeau","text":"The Funding Corporation shall be under the management of a Directorate composed of 3 members as follows:"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" The director of the Office of Finance of the Federal Home Loan Banks (or the head of any successor office).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" 2 members selected by the Thrift Depositor Protection Oversight Board from among the presidents of the Federal Home Loan Banks.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Terms"},{"t":"content","children":[{"t":"p","text":"Of the 2 members appointed under paragraph (1)(B), 1 shall be appointed for an initial term of 2 years and 1 shall be appointed for an initial term of 3 years. Thereafter, such members shall be appointed for a term of 3 years.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Vacancy"},{"t":"chapeau","text":"If any member leaves the office in which such member was serving when appointed to the Directorate\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" such member\u2019s service on the Directorate shall terminate on the date such member leaves such office; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the successor to the office of such member shall serve the remainder of such member\u2019s term.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Equal representation of banks"},{"t":"content","children":[{"t":"p","text":"No president of a Federal Home Loan Bank may be appointed to serve an additional term on the Directorate until such time as the presidents of each of the other Federal Home Loan Banks have served as many terms as the president of such bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Chairperson"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board shall select the chairperson of the Directorate from among the 3 members of the Directorate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Staff"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/6/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"No paid employees"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation shall have no paid employees.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/6/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Powers"},{"t":"content","children":[{"t":"p","text":"The Directorate may, with the approval of the Director authorize the officers, employees, or agents of the Federal Home Loan Banks to act for and on behalf of the Funding Corporation in such manner as may be necessary to carry out the functions of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Administrative expenses"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/7/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"All administrative expenses of the Funding Corporation, including custodian fees, shall be paid by the Federal Home Loan Banks.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/c/7/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Pro rata distribution"},{"t":"chapeau","text":"The amount each Federal Home Loan Bank shall pay under subparagraph (A) shall be determined by the Thrift Depositor Protection Oversight Board by multiplying the total administrative expenses for any period by the percentage arrived at by dividing\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/c/7/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the aggregate amount the Thrift Depositor Protection Oversight Board required such bank to invest in the Funding Corporation (as of the time of such determination) under paragraphs (4) and (5) of subsection (e) (computed without regard to paragraphs (3) or (6) of such subsection); by","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/c/7/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the aggregate amount the Thrift Depositor Protection Oversight Board required all Federal Home Loan Banks to invest (as of the time of such determination) under such paragraphs.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Regulation by Thrift Depositor Protection Oversight Board"},{"t":"content","children":[{"t":"p","text":"The Directorate of the Funding Corporation shall be subject to such regulations, orders, and directions as the Thrift Depositor Protection Oversight Board may prescribe.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/c/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"No compensation from Funding Corporation"},{"t":"content","children":[{"t":"p","text":"Members of the Directorate of the Funding Corporation shall receive no pay, allowance, or benefit from the Funding Corporation for serving on the Directorate.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Powers of Funding Corporation"},{"t":"chapeau","text":"The Funding Corporation shall have only the powers described in paragraphs (1) through (9), subject to the other provisions of this section and such regulations, orders, and directions as the Thrift Depositor Protection Oversight Board may prescribe:"},{"t":"para","id":"/us/usc/t12/s1441b/d/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Issue stock"},{"t":"content","children":[{"t":"p","text":"To issue nonvoting capital stock to the Federal Home Loan Banks.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Purchase capital stock; transfer amounts"},{"t":"content","children":[{"t":"p","text":"To purchase capital certificates issued by the Resolution Trust Corporation under ","children":[{"t":"ref","text":"section 1441a of this title","href":"/us/usc/t12/s1441a","tail":", and to transfer amounts to the Resolution Trust Corporation pursuant to subsection (e)(8) of this section."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Issue obligations"},{"t":"content","children":[{"t":"p","text":"To issue debentures, bonds, or other obligations, and to borrow, to give security for any amount borrowed, and to pay interest on (and any redemption premium with respect to) any such obligation or amount.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Impose assessments"},{"t":"content","children":[{"t":"p","text":"To impose assessments in accordance with subsection (e)(7).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Corporate seal"},{"t":"content","children":[{"t":"p","text":"To adopt, alter, and use a corporate seal.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Succession"},{"t":"content","children":[{"t":"p","text":"To have succession until dissolved.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Contracts"},{"t":"content","children":[{"t":"p","text":"To enter into contracts.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Authority to sue"},{"t":"content","children":[{"t":"p","text":"To sue and be sued in its corporate capacity, and to complain and defend in any action brought by or against the Funding Corporation in any State or Federal court of competent jurisdiction.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/d/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Incidental powers"},{"t":"content","children":[{"t":"p","text":"To exercise such incidental powers not inconsistent with the provisions of this section and ","children":[{"t":"ref","text":"section 1441a of this title","href":"/us/usc/t12/s1441a","tail":" as are necessary and appropriate to carry out the provisions of this section."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Capitalization of Funding Corporation, etc."},{"t":"para","id":"/us/usc/t12/s1441b/e/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/1/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Amount required"},{"t":"chapeau","text":"The Thrift Depositor Protection Oversight Board shall ensure that the aggregate of the amounts obtained under this subsection shall be sufficient so that\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/e/1/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the Funding Corporation may transfer the amounts required under paragraph (8); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/1/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the total of the face amounts (the amount of principal payable at maturity) of noninterest bearing instruments in the Funding Corporation Principal Fund are equal to the aggregate amount of principal on the obligations of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/1/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Purchases of stock by Federal Home Loan Banks"},{"t":"content","children":[{"t":"p","text":"Each Federal Home Loan Bank shall purchase stock in the Funding Corporation at times and in amounts prescribed by the Thrift Depositor Protection Oversight Board.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/e/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Par value; transferability"},{"t":"content","children":[{"t":"p","text":"Each share of stock issued by the Funding Corporation to a Federal Home Loan Bank shall have a par value in an amount determined by the Thrift Depositor Protection Oversight Board and shall be transferable at not less than par value only among the Federal Home Loan Banks in the manner and to the extent prescribed by the Thrift Depositor Protection Oversight Board.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/e/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Maximum investment amount limitation for each Federal Home Loan Bank"},{"t":"chapeau","text":"The cumulative amount of funds invested in nonvoting capital stock of the Funding Corporation by each Federal Home Loan Bank under paragraph (1) shall not at any time exceed the sum of the amounts calculated under subparagraphs (A) and (B), as adjusted in subparagraph (C), as follows:"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/3/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Reserves and undivided profits on December 31, 1988"},{"t":"chapeau","text":"The sum on ","children":[{"t":"text","text":"December 31, 1988","tail":", of\u2014"}]},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the reserves maintained by such Bank pursuant to the reserve requirement contained in the first 2 sentences of ","children":[{"t":"ref","text":"section 1436 of this title","href":"/us/usc/t12/s1436","tail":" (as in effect on "},{"t":"text","text":"December 31, 1988","tail":"); and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the undivided profits of such Bank, minus the amounts invested in the capital stock of the Financing Corporation pursuant to ","children":[{"t":"ref","text":"section 1441 of this title","href":"/us/usc/t12/s1441","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/3/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Subsequent additions to reserves and un\u00addivided profits"},{"t":"chapeau","text":"The amount, calculated until the date on which the Funding Corporation Principal Fund is fully funded, equal to\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/B/i","children":[{"t":"num","text":"(i)"},{"t":"chapeau","text":" the sum of\u2014"},{"t":"subclause","id":"/us/usc/t12/s1441b/e/3/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the amounts added to reserves by such Bank after ","children":[{"t":"text","text":"December 31, 1988","tail":", pursuant to the reserve requirement contained in the first 2 sentences of "},{"t":"ref","text":"section 1436 of this title","href":"/us/usc/t12/s1436","tail":" (as in effect on "},{"t":"text","text":"December 31, 1988","tail":"); and"}],"tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1441b/e/3/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the quarterly additions to undivided profits of the Bank after ","children":[{"t":"text","text":"December 31, 1988","tail":"; minus"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the amounts invested by such Bank in the capital stock of the Financing Corporation after ","children":[{"t":"text","text":"December 31, 1988","tail":", pursuant to the requirement contained in "},{"t":"ref","text":"section 1441 of this title","href":"/us/usc/t12/s1441","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/3/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Annual adjustment"},{"t":"chapeau","text":"The amounts in subparagraph (B) shall be adjusted as follows:"},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Increase in limit"},{"t":"content","children":[{"t":"p","text":"If the aggregate amount for all Federal Home Loan Banks determined under subparagraph (B)(i) is less than $300,000,000 per year, the limit for each Bank shall be increased by an amount determined by the Thrift Depositor Protection Oversight Board by multiplying the aggregate deficiency by the percentage applicable to such Bank arrived at in the manner described in paragraph (5).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/3/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Decrease in limit"},{"t":"content","children":[{"t":"p","text":"If the aggregate amount for all Federal Home Loan Banks determined under subparagraph (B)(i) is more than $300,000,000 per year, the limit for each Bank shall be decreased by an amount determined by the Thrift Depositor Protection Oversight Board by multiplying the aggregate excess by the percentage applicable to such Bank arrived at in the manner described in paragraph (5).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/e/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Pro rata distribution of first $1,000,000,000 invested in Funding Corporation by Federal Home Loan Banks"},{"t":"content","children":[{"t":"p","text":"Of the first $1,000,000,000 of the aggregate that the Director (pursuant to ","children":[{"t":"ref","text":"section 1441 of this title","href":"/us/usc/t12/s1441","tail":") or the Thrift Depositor Protection Oversight Board (under this section) may require the Federal Home Loan Banks collectively to invest in the capital stock of the Financing Corporation or invest in the capital stock of the Funding Corporation, respectively, the amount which each Federal Home Loan Bank (or any successor to the Bank) shall invest shall be determined by the Director or the Thrift Depositor Protection Oversight Board (as the case may be) by multiplying the aggregate amount of such investment by all Banks by the percentage appearing in the following table for each such Bank:"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"\u2001Bank"}]},{"t":"p","children":[{"t":"text","text":"Percentage"}]},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Boston"}]},{"t":"p","text":"1.8629"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of New York"}]},{"t":"p","text":"9.1006"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Pittsburgh"}]},{"t":"p","text":"4.2702"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Atlanta"}]},{"t":"p","text":"14.4007"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Cincinnati"}]},{"t":"p","text":"8.2653"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Indianapolis"}]},{"t":"p","text":"5.2863"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Chicago"}]},{"t":"p","text":"9.6886"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Des Moines"}]},{"t":"p","text":"6.9301"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Dallas"}]},{"t":"p","text":"8.8181"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Topeka"}]},{"t":"p","text":"5.2706"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of San Francisco"}]},{"t":"p","text":"19.9644"},{"t":"text","text":"\n"},{"t":"p","children":[{"t":"text","text":"Federal Home Loan Bank of Seattle"}]},{"t":"p","text":"6.1422"},{"t":"text","text":"\n"},{"t":"text","text":"\n","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/e/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Pro rata distribution of amounts required to be invested in excess of $1,000,000,000"},{"t":"chapeau","text":"Of any amount which the Thrift Depositor Protection Oversight Board may require the Federal Home Loan Banks to invest in capital stock of the Funding Corporation under this subsection in excess of the $1,000,000,000 amount referred to in paragraph (4), the amount which each Federal Home Loan Bank (or any successor to such Bank) shall invest shall be determined by the Thrift Depositor Protection Oversight Board by multiplying the excess amount by the percentage arrived at by dividing\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/5/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the sum of the total assets (as of the most recent December 31) held by all Savings Association Insurance Fund members as of the date of funding which are members of such Bank; by","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/5/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the sum of the total assets (as of such date) held by all Savings Association Insurance Fund members as of the date of funding which are members of a Federal Home Loan Bank.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/e/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Special provisions relating to maximum amount limitations"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/6/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"If the amount of any Federal Home Loan Bank\u2019s allocation under paragraph (5) exceeds the maximum amount applicable with respect to such Bank (in this paragraph referred to as a \u201cdeficient Bank\u201d) under paragraph (3) at the time of such determination (in this paragraph referred to as the \u201cexcess amount\u201d)\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the Thrift Depositor Protection Oversight Board shall require each Federal Home Loan Bank that is not allocated an amount under paragraph (5) that exceeds its maximum under paragraph (3) (in this paragraph referred to as a \u201cremaining Bank\u201d) to purchase stock in the Funding Corporation (in addition to the amount determined under paragraph (5) for such remaining Bank and subject to the maximum amount applicable with respect to such remaining Bank under paragraph (3) at the time of such determination) on behalf of the deficient Bank the amount determined under subparagraph (B);","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the Thrift Depositor Protection Oversight Board shall require the deficient Bank to subsequently reimburse the remaining Banks out of its net earnings (or reimbursements received from other Banks) in the manner described in subparagraphs (C) and (D); and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/A/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" the requirements contained in subparagraph (D) relating to the use of net earnings shall apply to the deficient Bank until such Bank has reimbursed the remaining Banks for all of the excess amount.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/6/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Allocation of excess amount among remaining Federal Home Loan Banks"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/B/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"The amount of stock each remaining Federal Home Loan Bank shall be required to purchase under subparagraph (A)(i) is the amount determined by the Thrift Depositor Protection Oversight Board by multiplying the excess amount by the percentage arrived at by dividing\u2014"},{"t":"subclause","id":"/us/usc/t12/s1441b/e/6/B/i/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" the cumulative amount of stock in the Funding Corporation purchased under this subsection by such remaining Bank at the time of such determination; by","tail":"\n"}],"tail":"\n"},{"t":"subclause","id":"/us/usc/t12/s1441b/e/6/B/i/II","children":[{"t":"num","text":"(II)"},{"t":"content","text":" the aggregate of the cumulative amounts invested under this subsection by all remaining Banks at such time.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Reallocation"},{"t":"content","children":[{"t":"p","text":"If the allocation under this subparagraph results in a remaining Bank exceeding its maximum amount under paragraph (3), such excess amount shall be reallocated to the other remaining Bank in accordance with this subparagraph.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/6/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Reimbursement procedure"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"A Bank on whose behalf stock is purchased under subparagraph (A)(i) shall make payments annually from amounts, if any, in its reserve account (as described in subparagraph (D)) to each Bank that made payments on its behalf until a full reimbursement has been completed. A full reimbursement shall require repayment of the excess amounts invested by other Banks plus interest which shall accrue at a rate equal to the annual average cost of funds in the most recent year to all Federal Home Loan Banks and which shall begin to accrue 2 years after the investments under subparagraph (A)(i) are made.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Determination of amounts"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board shall annually determine the dollar amounts of such reimbursements by distributing the amount available for such reimbursements (at the time of such determination) from the reimbursing Bank to the Banks that made purchases on its behalf according to the shares of the reimbursing Bank\u2019s excess amount that the other Banks invested.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/e/6/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Transfer to account for reimbursements required"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/D/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Of the net earnings for any year of a Bank on whose behalf a purchase is made under subparagraph (A)(i) and any reimbursements received from other Banks, the amount necessary to make the reimbursements required under subparagraph (A)(ii) shall be placed in a reserve account (established in the manner prescribed by the Thrift Depositor Protection Oversight Board), which shall be available only for such reimbursements.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/e/6/D/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Limitation"},{"t":"content","children":[{"t":"p","text":"The total amount placed in such reserve account in any year by any Bank shall not exceed an amount equal to 20 percent of the net earnings of such Bank for such year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Obligations of Funding Corporation"},{"t":"para","id":"/us/usc/t12/s1441b/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Issuance"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation may issue bonds, notes, debentures, and similar obligations in an aggregate amount not to exceed $30,000,000,000. No obligation may be issued under this paragraph unless, at the time of issuance, the face amounts (the amount of principal payable at maturity) of noninterest bearing instruments in the Funding Corporation Principal Fund are equal to the aggregate amount of principal on the obligations of the Funding Corporation that will be outstanding following such issuance.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Interest payments"},{"t":"chapeau","text":"The Funding Corporation shall pay the interest due on such obligations from funds obtained for such interest payments from the following sources:"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/2/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Earnings on certain assets"},{"t":"content","children":[{"t":"p","text":"Earnings on assets of the Funding Corporation which are not invested in the Funding Corporation Principal Fund shall be used for interest payments on outstanding debt of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/2/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Proceeds from Resolution Trust Corporation"},{"t":"chapeau","text":"To the extent the amounts available pursuant to subparagraph (A) are insufficient to cover the amount of interest payments, the Resolution Trust Corporation shall pay to the Funding Corporation\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the liquidating dividends and payments made on claims received by the Resolution Trust Corporation from receiverships to the extent such proceeds are determined by the Thrift Depositor Protection Oversight Board to be in excess of funds presently necessary for resolution costs; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" any proceeds from warrants and participations acquired by the Resolution Trust Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/2/C","children":[{"t":"num","text":"(C)"},{"t":"heading","text":"Payments by Federal home loan banks"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/C/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"To the extent that the amounts available pursuant to subparagraphs (A) and (B) are insufficient to cover the amount of interest payments, each Federal home loan bank shall pay to the Funding Corporation in each calendar year, 20.0 percent of the net earnings of that Bank (after deducting expenses relating to ","children":[{"t":"ref","text":"section 1430(j) of this title","href":"/us/usc/t12/s1430/j","tail":" and operating expenses)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/C/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Annual determination"},{"t":"content","children":[{"t":"p","text":"The Director annually shall determine the extent to which the value of the aggregate amounts paid by the Federal home loan banks exceeds or falls short of the value of an annuity of $300,000,000 per year that commences on the issuance date and ends on the final scheduled maturity date of the obligations, and shall select appropriate present value factors for making such determinations, in consultation with the Secretary of the Treasury.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/C/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Payment term alterations"},{"t":"content","children":[{"t":"p","text":"The Director shall extend or shorten the term of the payment obligations of a Federal home loan bank under this subparagraph as necessary to ensure that the value of all payments made by the Banks is equivalent to the value of an annuity referred to in clause (ii).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/C/iv","children":[{"t":"num","text":"(iv)"},{"t":"heading","text":"Term beyond maturity"},{"t":"content","children":[{"t":"p","text":"If the Director extends the term of payment obligations beyond the final scheduled maturity date for the obligations, each Federal home loan bank shall continue to pay 20.0 percent of its net earnings (after deducting expenses relating to ","children":[{"t":"ref","text":"section 1430(j) of this title","href":"/us/usc/t12/s1430/j","tail":" and operating expenses) to the Treasury of the United States until the value of all such payments by the Federal home loan banks is equivalent to the value of an annuity referred to in clause (ii). In the final year in which the Federal home loan banks are required to make any payment to the Treasury under this subparagraph, if the dollar amount represented by 20.0 percent of the net earnings of the Federal home loan banks exceeds the remaining obligation of the Banks to the Treasury, the Director shall reduce the percentage pro rata to a level sufficient to pay the remaining obligation."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/C/v","children":[{"t":"num","text":"(v)"},{"t":"heading","text":"Semiannual reports"},{"t":"content","children":[{"t":"p","text":"The Director shall report semiannually to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the projected date for the completion of contributions required by this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/2/D","children":[{"t":"num","text":"(D)"},{"t":"heading","text":"Proceeds from sale of assets"},{"t":"content","children":[{"t":"p","text":"To the extent the amounts available pursuant to subparagraphs (A), (B), and (C) are insufficient to cover the amount of interest payments, the FSLIC Resolution Fund shall transfer to the Funding Corporation any net proceeds from the sale of assets received from the Resolution Trust Corporation, which shall be used by the Funding Corporation to pay such interest.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/2/E","children":[{"t":"num","text":"(E)"},{"t":"heading","text":"Treasury backup"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/E/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"To the extent the amounts available pursuant to subparagraphs (A), (B), (C), and (D) are insufficient to cover the amount of interest payments, the Secretary of the Treasury shall pay to the Funding Corporation the additional amount due, which shall be used by the Funding Corporation to pay such interest.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/E/ii","children":[{"t":"num","text":"(ii)"},{"t":"heading","text":"Liability of Funding Corporation"},{"t":"content","children":[{"t":"p","text":"In each instance where the Secretary is required to make a payment under this subparagraph to the Funding Corporation, the amount of the payment shall become a liability of the Funding Corporation to be repaid to the Secretary upon dissolution of the Funding Corporation (to the extent the Funding Corporation may have any remaining assets).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/2/E/iii","children":[{"t":"num","text":"(iii)"},{"t":"heading","text":"Appropriation of funds"},{"t":"content","children":[{"t":"p","text":"There are hereby appropriated to the Secretary, for fiscal year 1989 and each fiscal year thereafter, such sums as may be necessary to carry out clause (i).","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Principal payments"},{"t":"content","children":[{"t":"p","text":"On maturity of an obligation issued under this subsection, the obligation shall be repaid by the Funding Corporation from the liquidation of noninterest bearing instruments held in the Funding Corporation Principal Fund.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Proceeds to be transferred to Resolution Trust Corporation"},{"t":"chapeau","text":"Subject to terms and conditions approved by the Thrift Depositor Protection Oversight Board, the proceeds (less any discount, plus any premium, net of issuance costs) of any obligation issued by the Funding Corporation shall be used to\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" purchase the capital certificates issued by the Resolution Trust Corporation under ","children":[{"t":"ref","text":"section 1441a of this title","href":"/us/usc/t12/s1441a","tail":"; or"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" refund any previously issued obligation the proceeds of which were transferred in the manner described in subparagraph (A).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Investment of United States funds in obligations"},{"t":"content","children":[{"t":"p","text":"Obligations issued under this section by the Funding Corporation, at the direction of the Thrift Depositor Protection Oversight Board shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer of the United States.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Market for obligations"},{"t":"content","children":[{"t":"p","text":"All persons having the power to invest in, sell, underwrite, purchase for their own accounts, accept as security, or otherwise deal in obligations of the Federal Home Loan Banks shall also have the power to do so with respect to obligations of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Tax exempt status"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/7/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Except as provided in subparagraph (B), obligations of the Funding Corporation shall be exempt from tax both as to principal and interest to the same extent as any obligation of a Federal Home Loan Bank is exempt from tax under ","children":[{"t":"ref","text":"section 1433 of this title","href":"/us/usc/t12/s1433","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/7/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Exception"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation, like the Federal Home Loan Banks, shall be treated as an agency of the United States for purposes of the first sentence of ","children":[{"t":"ref","text":"section 3124(b) of title 31","href":"/us/usc/t31/s3124/b","tail":" (relating to determination of tax status of interest on obligations)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Obligations not exempt securities"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/8/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"In general"},{"t":"chapeau","text":"For purposes of the laws administered by the Securities and Exchange Commission, obligations of the Funding Corporation\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/f/8/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" shall not be considered to be securities issued or guaranteed by a person controlled or supervised by, or acting as an instrumentality of, the Government of the United States; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/f/8/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" shall not be considered to be \u201cexempted securities\u201d within the meaning of ","children":[{"t":"ref","text":"section 78c(a)(12)(A)(i) of title 15","href":"/us/usc/t15/s78c/a/12/A/i","tail":", except that such obligations shall be considered to be exempted securities for purposes of section 78"},{"t":"text","text":"o","tail":" of title 15."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/f/8/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Authority of Commission"},{"t":"content","children":[{"t":"p","text":"Notwithstanding subparagraph (A), the Securities and Exchange Commission may, by rule or order, consistent with the public interest and the protection of investors, exempt securities issued by the Funding Corporation from the registration requirements of the Securities Act of 1933 [","children":[{"t":"ref","text":"15 U.S.C. 77a","href":"/us/usc/t15/s77a","tail":" et seq.], subject to such terms and conditions as the Commission may prescribe."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Minority participation in public or negotiated offerings"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board and the Directorate shall ensure that minority owned or controlled commercial banks, investment banking firms, underwriters, and bond counsels throughout the United States have an opportunity to participate to a significant degree in any public or negotiated offering of obligations issued under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/f/10","children":[{"t":"num","text":"(10)"},{"t":"heading","text":"No full faith and credit of the United States"},{"t":"content","children":[{"t":"p","text":"Obligations of the Funding Corporation shall not be obligations of, or guaranteed as to principal by, the Federal Home Loan Bank System, the Federal Home Loan Banks, the United States, or the Resolution Trust Corporation and the obligations shall so plainly state. The Secretary shall pay interest on such obligations as required pursuant to this subsection.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Use and disposition of assets of Funding Corporation not transferred to Resolution Trust Corporation"},{"t":"para","id":"/us/usc/t12/s1441b/g/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"Subject to regulations, restrictions, and limitations prescribed by the Thrift Depositor Protection Oversight Board, assets of the Funding Corporation which are not required to be invested in capital certificates issued by the Resolution Trust Corporation under ","children":[{"t":"ref","text":"section 1441a of this title","href":"/us/usc/t12/s1441a","tail":" and are not needed for current interest payments shall be invested in direct obligations of the United States issued by the Secretary."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/g/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Separate account for zero coupon instruments held to ensure payment of principal"},{"t":"chapeau","text":"Except as provided in subsection (e)(8), the Funding Corporation shall invest amounts received pursuant to subsection (e) in, and hold in a separate account to be known as the Funding Corporation Principal Fund, noninterest bearing instruments\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/g/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" which are direct obligations of the United States issued by the Secretary; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/g/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the total of the face amounts (the amount of principal payable at maturity) of which is approximately equal to the aggregate amount of principal on the obligations of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Miscellaneous provisions"},{"t":"para","id":"/us/usc/t12/s1441b/h/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Treatment for certain purposes"},{"t":"content","children":[{"t":"p","text":"Except as provided in subsection (f)(7)(B), the Funding Corporation shall be treated as a Federal Home Loan Bank for purposes of ","children":[{"t":"ref","text":"section 1433 of this title","href":"/us/usc/t12/s1433","tail":" (to the extent such section relates to State, municipal, and local taxation) and "},{"t":"ref","text":"section 1443 of this title","href":"/us/usc/t12/s1443","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/h/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Federal Reserve banks as depositaries and fiscal agents"},{"t":"content","children":[{"t":"p","text":"The Federal Reserve banks are authorized to act as depositaries for or fiscal agents or custodians of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/h/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Applicability of certain provisions relating to Government corporations"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation shall be treated, for purposes of sections 9105,","children":[{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSee References in Text note below."},{"t":"text","text":"\u202fSee References in Text note below.","tail":" 9107, and 9108 of title 31, as a mixed-ownership Government corporation which has capital of the Government."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/h/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Jurisdiction and power to remove"},{"t":"subpara","id":"/us/usc/t12/s1441b/h/4/A","children":[{"t":"num","text":"(A)"},{"t":"heading","text":"Federal court jurisdiction"},{"t":"content","children":[{"t":"p","text":"Notwithstanding any other provision of law, any civil action, suit, or proceeding to which the Funding Corporation is a party shall be deemed to arise under the laws of the United States, and the United States district courts shall have original jurisdiction over such action, suit, or proceeding.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/h/4/B","children":[{"t":"num","text":"(B)"},{"t":"heading","text":"Removal"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation may, without bond or security, remove any such action, suit, or proceeding from a State court to the United States District Court for the District of Columbia.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Annual report"},{"t":"para","id":"/us/usc/t12/s1441b/i/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board shall annually submit a full report of the operations, activities, budget, receipts, and expenditures of the Funding Corporation for the preceding 12-month period.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/i/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Contents"},{"t":"chapeau","text":"The report required under paragraph (1) shall include\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/i/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" audited statements and any information necessary to make known the financial condition and operations of the Funding Corporation in accordance with generally accepted accounting principles;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/i/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the financial operating plans and forecasts (including estimates of actual and future spending, and estimates of actual and future cash obligations) of the Funding Corporation taking into account its financial commitments, guarantees, and other contingent liabilities; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/i/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" the results of the annual audit of the financial transactions of the Funding Corporation conducted by the Comptroller General pursuant to ","children":[{"t":"ref","text":"section 9105(a) of title 31","href":"/us/usc/t31/s9105/a","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/i/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Submission to Congress and President"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board shall submit each annual report required under this subsection to the Congress and the President as soon as practicable after the end of the calendar year for which the report is made, but not later than June 30 of the year following such calendar year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Termination of Funding Corporation"},{"t":"para","id":"/us/usc/t12/s1441b/j/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Funding Corporation shall be dissolved, as soon as practicable, after the maturity and full payment of all obligations issued by the Funding Corporation under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/j/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Authority of Thrift Depositor Protection Oversight Board to conclude affairs of Funding Corporation"},{"t":"content","children":[{"t":"p","text":"Effective on the date of the dissolution of the Funding Corporation under paragraph (1), the Thrift Depositor Protection Oversight Board may exercise on behalf of the Funding Corporation any power of the Funding Corporation which the Thrift Depositor Protection Oversight Board determines to be necessary to settle and conclude the affairs of the Funding Corporation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/k","children":[{"t":"num","text":"(k)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For purposes of this section, the following definitions shall apply:"},{"t":"para","id":"/us/usc/t12/s1441b/k/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Administrative expenses"},{"t":"chapeau","text":"The term \u201cadministrative expenses\u201d does not include\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any interest on, or any redemption premium with respect to, any obligation of the Funding Corporation; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" issuance costs.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Custodian fee"},{"t":"chapeau","text":"The term \u201ccustodian fee\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" any fee incurred by the Funding Corporation in connection with the transfer of any security to, or the maintenance of any security in, the segregated account established under subsection (g); and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" any other expense incurred by the Funding Corporation in connection with the establishment or maintenance of such account.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Funding Corporation"},{"t":"content","children":[{"t":"p","text":"The term \u201cFunding Corporation\u201d means the Resolution Funding Corporation established in subsection (b).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Funding Corporation Principal Fund"},{"t":"content","children":[{"t":"p","text":"The term \u201cFunding Corporation Principal Fund\u201d means the separate account established under subsection (g)(2).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Issuance costs"},{"t":"chapeau","text":"The term \u201cissuance costs\u201d\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/5/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" means issuance fees and commissions incurred by the Funding Corporation in connection with the issuance or servicing of any obligation of the Funding Corporation; and","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/5/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" includes legal and accounting expenses, trustee and fiscal and paying agent charges, costs incurred in connection with preparing and printing offering materials, and advertising expenses, to the extent that any such cost or expense is incurred by the Funding Corporation in connection with issuing any obligation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/6","children":[{"t":"num","text":"(6)"},{"t":"heading","text":"Net earnings"},{"t":"content","children":[{"t":"p","text":"The term \u201cnet earnings\u201d means net earnings without reduction for chargeoffs or expenses incurred by a Federal Home Loan Bank for the purchase of capital stock of the Financing Corporation or payments relating to the Funding Corporation required by the Thrift Depositor Protection Oversight Board under subsections (e) and (f).","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/7","children":[{"t":"num","text":"(7)"},{"t":"heading","text":"Thrift Depositor Protection Oversight Board"},{"t":"chapeau","text":"The term \u201cThrift Depositor Protection Oversight Board\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/7/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the Thrift Depositor Protection Oversight Board of the Resolution Trust Corporation under ","children":[{"t":"ref","text":"section 1441a of this title","href":"/us/usc/t12/s1441a","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/7/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" after the termination of the Resolution Trust Corporation\u2014"},{"t":"clause","id":"/us/usc/t12/s1441b/k/7/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" the Secretary of the Treasury;","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/k/7/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" the Chairman of the Board\u202f","children":[{"t":"ref","text":"2"},{"t":"num","text":"2","tail":"\u202fSee 2008 Amendment note below."},{"t":"text","text":"\u202fSee 2008 Amendment note below.","tail":" of Governors of the Federal Reserve System; and"}],"tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1441b/k/7/B/iii","children":[{"t":"num","text":"(iii)"},{"t":"content","text":" the Secretary of Housing and Urban Development.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/8","children":[{"t":"num","text":"(8)"},{"t":"heading","text":"Secretary"},{"t":"content","children":[{"t":"p","text":"The term \u201cSecretary\u201d means the Secretary of the Treasury.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1441b/k/9","children":[{"t":"num","text":"(9)"},{"t":"heading","text":"Undivided profits"},{"t":"chapeau","text":"The term \u201cundivided profits\u201d means earnings retained after dividends have been paid minus the sum of\u2014"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/9/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" that portion required to be added to reserves maintained pursuant to the first 2 sentences of ","children":[{"t":"ref","text":"section 1436 of this title","href":"/us/usc/t12/s1436","tail":"; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1441b/k/9/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the dollar amounts held by the respective Federal Home Loan Banks in special dividend stabilization reserves on ","children":[{"t":"text","text":"December 31, 1985","tail":", as determined by the table set forth in "},{"t":"ref","text":"section 1441(d)(7) of this title","href":"/us/usc/t12/s1441/d/7","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1441b/l","children":[{"t":"num","text":"(l)"},{"t":"heading","text":"Regulations"},{"t":"content","children":[{"t":"p","text":"The Thrift Depositor Protection Oversight Board may prescribe any regulations necessary to carry out this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}