12 USC 1441 - Financing Corporation

1 So in original. Probably should refer to paragraph (6) in view of the renumbering of paragraph (7) as (6) by Puspan. L. 101–73.

obligations of the Financing Corporation shall be deemed to be exempt securities (within the meaning of laws administered by the Securities and Exchange Commission) to the same extent as securities which are direct obligations of the United States or are guaranteed as to principal or interest by the United States.

2 So in original. See 2008 Amendment note below.

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 offering of obligations issued under this section.

3 See 2008 Amendment note below.

of Directors of the Federal Deposit Insurance Corporation, shall assess against each insured depository institution an assessment (in the same manner as assessments are assessed against such institutions by the Federal Deposit Insurance Corporation under

4 See References in Text note below.

9107, and 9108 of title 31, as a mixed-ownership Government corporation which has capital of the Government.

5 So in original. Probably should be followed by a period.

Editorial Notes

References in Text

Section 1725 of this title, referred to in subsecs. (c)(2), (e)(2)(A), and (g)(1), was repealed by Puspan. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

Section 9105 of title 31, referred to in subsec. (h)(3), was amended generally by Puspan. L. 101–576, title III, § 305, Nov. 15, 1990, 104 Stat. 2853, and, as so amended, no longer contains provisions relating to mixed-ownership Government corporations having capital of the Government.

Prior Provisions

A prior section 1441, act July 22, 1932, ch. 522, § 21, 47 Stat. 738, related to unlawful acts and penalties, prior to repeal by act June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948. See sections 433, 493, 657, 659, 660, 709, 1006, 1014, and 2117 of Title 18, Crimes and Criminal Procedure.

Amendments

2008—Puspan. L. 110–289, § 1204(12), substituted “Director” for “Federal Housing Finance Board” wherever appearing in subsecs. (a), (span)(1)(B), (6)(B), (7)(B), (8), (c), (d), (e)(1), (4), (9), (g), (i), and (j).

Subsec. (span)(5). Puspan. L. 110–289, § 1204(6), substituted “Director” for “Chairperson of the Federal Housing Finance Board”.

Subsec. (f)(2). Puspan. L. 110–289, § 1204(8), which directed amendment of the Federal Home Loan Bank Act (this chapter) by substituting “the Director” for “the Board” wherever appearing, was not executed to subsec. (f)(2) to reflect the probable intent of Congress.

2006—Subsec. (f)(2). Puspan. L. 109–173, § 9(d)(2)(A), struck out before period at end “, except that—

“(A) the assessments imposed on insured depository institutions with respect to any BIF-assessable deposit shall be assessed at a rate equal to ⅕ of the rate of the assessments imposed on insured depository institutions with respect to any SAIF-assessable deposit; and

“(B) no limitation under clause (i) or (iii) of section 7(span)(2)(A) of the Federal Deposit Insurance Act shall apply for purposes of this paragraph.”

Subsec. (k)(4). Puspan. L. 109–173, § 9(d)(2)(B), struck out span and text of par. (4). Text read as follows:

“(A) BIF-assessable deposits.—The term ‘BIF-assessable deposit’ means a deposit that is subject to assessment for purposes of the Bank Insurance Fund under the Federal Deposit Insurance Act (including a deposit that is treated as a deposit insured by the Bank Insurance Fund under section 5(d)(3) of the Federal Deposit Insurance Act).

“(B) SAIF-assessable deposit.—The term ‘SAIF-assessable deposit’ has the meaning given to such term in section 2710 of the Deposit Insurance Funds Act of 1996.”

1996—Subsec. (f)(2). Puspan. L. 104–208, § 2703(a)(1)(A), in introductory provisions, substituted “In addition to the amounts obtained pursuant to paragraph (1),” for “To the extent the amounts available pursuant to paragraph (1) are insufficient to cover the amount of interest payments, issuance costs, and custodial fees,”, “insured depository institution” for “Savings Association Insurance Fund member”, and “against such institutions” for “against such members”.

Subsec. (f)(2)(A) to (C). Puspan. L. 104–208, § 2703(a)(1)(B), added subpars. (A) and (B) and struck out former subpars. (A) to (C) which read as follows:

“(A) the sum of—

“(i) the amount assessed under this paragraph; and

“(ii) the amount assessed by the Funding Corporation under section 1441span of this title;

shall not exceed the amount authorized to be assessed against Savings Association Insurance Fund members pursuant to section 1817 of this title;

“(B) the Financing Corporation shall have first priority to make the assessment; and

“(C) the amount of the applicable assessment determined under such section 1817 of this title shall be reduced by the sum described in subparagraph (A) of this paragraph.”

Subsec. (k). Puspan. L. 104–208, § 2703(a)(2)(A), substituted “section, the following definitions shall apply:” for “section—” in introductory provisions.

Subsec. (k)(1). Puspan. L. 104–208, § 2703(a)(2)(B), (C), redesignated par. (2) as (1) and struck out span and text of former par. (1). Text read as follows: “The term ‘Savings Association Insurance Fund member’ means a savings association which is a Savings Association Insurance Fund member as defined by section 7(l) of the Federal Deposit Insurance Act.”

Subsec. (k)(2) to (4). Puspan. L. 104–208, § 2703(a)(2)(C), (D), added pars. (3) and (4) and redesignated former pars. (2) and (3) as (1) and (2), respectively.

1992—Subsec. (e)(2). Puspan. L. 102–550 made technical amendment to reference to December 12, 1991, to correct reference to corresponding provisions of original act.

1991—Subsec. (d)(4). Puspan. L. 102–233, § 302(span), substituted “Thrift Depositor Protection Oversight Board” for “Oversight Board” in two places.

Subsec. (e)(2). Puspan. L. 102–233, § 104, amended par. (2) generally, substituting provisions setting forth termination date of Financing Corporation borrowing authority for provisions relating to investment of proceeds of obligations of such Corporation.

Subsec. (k)(3). Puspan. L. 102–233, § 302(span), substituted “Thrift Depositor Protection Oversight Board” for “Oversight Board”.

1989—Subsec. (a). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (span)(1)(B). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Federal Home Loan Bank Board”.

Subsec. (span)(5). Puspan. L. 101–73, § 701(span)(2), substituted “Chairperson” for “Chairman”.

Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Federal Home Loan Bank Board”.

Subsecs. (span)(6)(B), (7)(B), (8), (c). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board” wherever appearing.

Subsec. (c)(2). Puspan. L. 101–73, § 512(3), inserted “prior to August 9, 1989, and thereafter to transfer the proceeds of any obligation issued by the Financing Corporation to the FSLIC Resolution Fund”.

Subsec. (c)(9). Puspan. L. 101–73, § 512(4), struck out “or section 1725(span) of this title” after “with the provisions of this section”.

Subsec. (d)(1). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board” wherever appearing.

Subsec. (d)(4). Puspan. L. 101–73, § 512(5), amended generally the portion of par. (4) appearing before the table. Prior to amendment, such portion read as follows: “With respect to the first $1,000,000,000 which the Board may require the Federal Home Loan Banks to invest in capital stock of the Financing Corporation under this subsection, the amount which each Federal Home Loan Bank (or any successor to such bank) shall invest shall be determined by the Board by applying to the total amount of such investment by all such banks the percentage appearing in the following table for each such bank:”.

Subsec. (d)(5). Puspan. L. 101–73, § 512(6), substituted “the $1,000,000,000 amount referred to in paragraph (4) which the Federal Housing Finance Board” for “$1,000,000,000 which the Board”.

Puspan. L. 101–73, § 512(2), substituted “by the Federal Housing Finance Board” for “by the Board”.

Subsec. (d)(5)(A), (B). Puspan. L. 101–73, § 512(1), which directed the amendment of this section by substituting “Savings Association Insurance Fund member” for “insured institution” wherever appearing, was executed by substituting “Savings Association Insurance Fund members” for “insured institutions”, as the probable intent of Congress.

Subsec. (d)(6)(A). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board” in introductory provisions and in cls. (i) and (ii).

Subsec. (d)(6)(A)(iii). Puspan. L. 101–73, § 512(7), struck out “available for dividends” after “use of net earnings”.

Subsec. (d)(6)(B), (C). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (d)(6)(D). Puspan. L. 101–73, § 512(8), struck out “available for dividends” after “net earnings”.

Subsec. (d)(6)(E). Puspan. L. 101–73, § 512(9), struck out “available for dividends” after “Of the net earnings”.

Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (d)(6)(F). Puspan. L. 101–73, § 512(10), struck out subpar. (F) which defined “net earnings available for dividends”.

Subsec. (e)(1). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (e)(2). Puspan. L. 101–73, § 512(12)(A), redesignated par. (3) as (2) and struck out former par. (2) which set an annual limit on net new borrowing by the Financing Corporation.

Puspan. L. 101–73, § 512(11), which directed amendment of par. (2)(A), was executed, as the probable intent of Congress, to the introductory text of par. (2), to par. (2)(A), and to par. (2)(B), as follows: striking out “used to” after “issued by the Financing Corporation” in the introductory text, inserting “used to” before “purchase” and inserting “prior to August 9, 1989, and thereafter transferred to the FSLIC Resolution Fund” before “; or” in subpar. (A), and by inserting “used to” before “refund” in subpar. (B).

Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (e)(3). Puspan. L. 101–73, § 512(12)(A), redesignated par. (4) as (3). Former par. (3) redesignated (2).

Subsec. (e)(4). Puspan. L. 101–73, § 512(2), (12)(A), redesignated par. (5) as (4) and substituted “Federal Housing Finance Board” for “Board”. Former par. (4) redesignated (3).

Subsec. (e)(5). Puspan. L. 101–73, § 512(12)(A), redesignated par. (6) as (5). Former par. (5) redesignated (4).

Subsec. (e)(6). Puspan. L. 101–73, § 512(12), redesignated par. (7) as (6) and substituted “FSLIC Resolution Fund” for “Federal Savings and Loan Insurance Corporation”. Former par. (6) redesignated (5).

Subsec. (e)(7), (8). Puspan. L. 101–73, § 512(12)(A), redesignated pars. (8) and (9) as (7) and (8), respectively. Former par. (7) redesignated (6).

Subsec. (e)(9), (10). Puspan. L. 101–73, §§ 512(2), (12)(A), 701(span)(2), redesignated par. (10) as (9) and substituted “Chairperson” for “Chairman” and “Federal Housing Finance Board” for “Board”. Former par. (9) redesignated (8).

Subsec. (f). Puspan. L. 101–73, § 512(13), amended subsec. (f) generally, substituting provisions enumerating various sources from which Financing Corporation shall obtain funds for anticipated interest payments, issuance costs, and custodial fees on obligations issued from preenactment assessments, new assessment authority, and receivership proceeds, for former provisions which had outlined assessment authority of Financing Corporation, setting up supplementary assessment authority, setting limits on total amount assessed, and providing for termination assessments.

Subsec. (g)(1). Puspan. L. 101–73, § 512(14), inserted reference to before August 9, 1989, and after August 9, 1989, in capital certificates issued by the FSLIC Resolution Fund.

Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (g)(2). Puspan. L. 101–73, § 512(15), inserted at end “For purposes of the foregoing, the Financing Corporation shall be deemed to hold noninterest bearing instruments that it lends temporarily to primary United States Treasury dealers in order to enhance market liquidity and facilitate deliveries, provided that United States Treasury securities of equal or greater value have been delivered as collateral.”

Subsec. (i). Puspan. L. 101–73, § 713, redesignated subsec. (j) as (i) and struck out former subsec. (i) which related to Federal Savings and Loan Insurance Corporation Industry Advisory Committee.

Subsec. (i)(1)(A). Puspan. L. 101–73, § 512(16), added subpar. (A) and struck out former subpar. (A) which read as follows: “the date by which all stock purchased by the Financing Corporation in the Federal Savings and Loan Insurance Corporation has been retired; or”.

Subsec. (i)(2). Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board” wherever appearing.

Subsec. (j). Puspan. L. 101–73, § 713, redesignated subsec. (k) as (j). Former subsec. (j) redesignated (i).

Puspan. L. 101–73, § 512(2), substituted “Federal Housing Finance Board” for “Board”.

Subsec. (k). Puspan. L. 101–73, § 713, redesignated subsec. (l) as (k). Former subsec. (k) redesignated (j).

Subsec. (k)(1). Puspan. L. 101–73, § 512(17)(A), substituted definition of “Savings Association Insurance Fund member” for definition of “insured institution”.

Subsec. (k)(2). Puspan. L. 101–73, § 512(17)(B), redesignated par. (3) as (2) and struck out former par. (2) which defined “insured member”.

Subsec. (k)(3), (4). Puspan. L. 101–73, § 512(10), (17)(B), added par. (4) and redesignated pars. (3) and (4) as (2) and (3), respectively.

Subsec. (l). Puspan. L. 101–73, § 713, redesignated subsec. (l) as (k).

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Amendment by Puspan. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Puspan. L. 109–173, set out as a note under section 24 of this title.

Effective and Termination Dates of 1996 Amendment

Puspan. L. 104–208, div. A, title II, § 2703(c), Sept. 30, 1996, 110 Stat. 3009–485, provided that:

“(1)In general.—Subsections (a) [amending this section] and (c) [probably should be (span), amending section 1817 of this title] and the amendments made by such subsections shall apply with respect to semiannual periods which begin after December 31, 1996.

“(2)Termination of certain assessment rates.—Subparagraph (A) of section 21(f)(2) of the Federal Home Loan Bank Act [subsec. (f)(2) of this section] (as amended by subsection (a)) shall not apply after the earlier of—

“(A)December 31, 1999; or

“(B) the date as of which the last savings association ceases to exist.”

Effective Date of 1992 Amendment

Puspan. L. 102–550, title XVI, § 1618, Oct. 28, 1992, 106 Stat. 4097, provided that: “Except as otherwise provided by a specific provision of this subtitle [subtitle B (§§ 1611–1618) of title XVI of Puspan. L. 102–550, amending this section, sections 1441a, 1441span, 1821, 3345, and 3348 of this title and provisions set out as a note under section 1441a of this title], the amendments made by this subtitle to the Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 [Puspan. L. 102–233; see Short Title of 1991 Amendment note set out under section 1421 of this title] and the Federal Home Loan Bank Act [12 U.S.C. 1421 et seq.] shall take effect as if such amendments had been included in the Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991 [Puspan. L. 102–233] as of the date of the enactment of such Act [Dec. 12, 1991].”

Effective Date of 1991 Amendment

Puspan. L. 102–233, title III, § 318, Dec. 12, 1991, 105 Stat. 1773, provided that: “The effective date of the Resolution Trust Corporation Thrift Depositor Protection Reform Act of 1991 [title III of Puspan. L. 102–233, amending this section, sections 1441a, 1441span, 1786, 1818, 1821, 1833span, and 1833e of this title, sections 5313 and 5314 of Title 5, Government Organization and Employees, and section 11 of the Inspector General Act of 1978, Puspan. L. 95–452, set out in the Appendix to Title 5, enacting provisions set out as notes under section 1441a of this title, and amending provisions set out as notes under sections 1437 and 1441a of this title] shall be February 1, 1992.”

Transfer of Functions

Federal Savings and Loan Insurance Corporation abolished and functions transferred, see sections 401 to 406 of Puspan. L. 101–73, set out as a note under section 1437 of this title.

Abolition of Thrift Depositor Protection Oversight Board

Thrift Depositor Protection Oversight Board abolished, see section 14(a)–(d) of Puspan. L. 105–216, formerly set out as a note under section 1441a of this title.

Prohibition on Deposit Shifting

Puspan. L. 104–208, div. A, title II, § 2703(d), Sept. 30, 1996, 110 Stat. 3009–486, provided that:

“(1)In general.—Effective as of the date of the enactment of this Act [Sept. 30, 1996] and ending on the date provided in subsection (c)(2) of this section [set out as a note above], the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Director of the Office of Thrift Supervision shall take appropriate actions, including enforcement actions, denial of applications, or imposition of entrance and exit fees as if such transactions qualified as conversion transactions pursuant to section 5(d) of the Federal Deposit Insurance Act [12 U.S.C. 1815(d)], to prevent insured depository institutions and depository institution holding companies from facilitating or encouraging the shifting of deposits from SAIF-assessable deposits to BIF-assessable deposits (as defined in section 21(k) of the Federal Home Loan Bank Act [12 U.S.C. 1441(k)]) for the purpose of evading the assessments imposed on insured depository institutions with respect to SAIF-assessable deposits under section 7(span) of the Federal Deposit Insurance Act [12 U.S.C. 1817(span)] and section 21(f)(2) of the Federal Home Loan Bank Act [12 U.S.C. 1441(f)(2)].

“(2)Regulations.—The Board of Directors of the Federal Deposit Insurance Corporation may issue regulations, including regulations defining terms used in paragraph (1), to prevent the shifting of deposits described in such paragraph.

“(3)Rule of construction.—No provision of this subsection shall be construed as prohibiting conduct or activity of any insured depository institution which—

“(A) is undertaken in the ordinary course of business of such depository institution; and

“(B) is not directed towards the depositors of an insured depository institution affiliate (as defined in section 2(k) of the Bank Holding Company Act of 1956 [12 U.S.C. 1841(k)]) of such depository institution.”

State Cooperative Banks Deemed Insured Institutions Under Subsection (f)(4)(F)

Puspan. L. 100–202, § 101(f) [title III, § 301], Dec. 22, 1987, 101 Stat. 1329–187, 1329–211, provided that any cooperative bank established under the law of any State which was directed by the State banking authority to obtain Federal deposit insurance between Jan. 1, 1985, and Jan. 1, 1987, would be deemed to be an insured institution described in 12 U.S.C. 1441(f)(4)(F).

Sunset and Savings Provision

Puspan. L. 100–86, title IV, § 416, Aug. 10, 1987, 101 Stat. 623, provided that:

“(a)In General.—The following provisions shall cease to be effective on the date that a notice is published in the Federal Register by the Financing Corporation pursuant to subsection (span):

“(1) Paragraphs (2), (3), and (5) of—

“(A) section 9(a) of the Home Owners’ Loan Act of 1933 [12 U.S.C. 1467(a)(2), (3), (5)]; and

“(B) section 415(a) of the National Housing Act [12 U.S.C. 1730h(a)(2), (3), (5)],

(as added by subsections (a) and (span), respectively, of section 402 of this title).

“(2) Section 10 of the Home Owners’ Loan Act of 1933 [12 U.S.C. 1467a] and section 416 of the National Housing Act [12 U.S.C. 1730i] (as added by subsections (a) and (span), respectively, of section 404 of this title).

“(3) Paragraph (6) of section 406(f) of the National Housing Act [12 U.S.C. 1729(f)(6)] (as added by section 405 of this title).

“(4) Section 22A of the Federal Home Loan Bank Act [12 U.S.C. 1442a] (as added by section 407(d) of this title).

“(5) Section 411 of this title [12 U.S.C. 1437 note].

“(span) Notice of Completion of Net New Borrowing by Financing Corporation.—When the Financing Corporation established pursuant to section 21 of the Federal Home Loan Bank Act [12 U.S.C. 1441] has completed all net new borrowing under such section, the Financing Corporation shall publish a notice of such fact in the Federal Register. [Notice that the Financing Corporation had completed all net new borrowings and would issue no additional obligations after Dec. 12, 1991, was published Mar. 30, 1992, 57 F.R. 10763.]

“(c) Savings Provision.—The termination by subsection (a) of the effectiveness of any provision described in such subsection shall not be construed to affect or limit any authority of the Federal Home Loan Bank Board or the Federal Savings and Loan Insurance Corporation to prescribe any regulation or engage in any activity with respect to any association or insured institution under any other provision of law.”