and ‘‘Federal Home Loan Banks’’ each place such
terms appear in such Act (other than in connection
with a reference to the Federal Home Loan Bank
System) and inserting ‘‘enterprise resource bank’’
and ‘‘enterprise resource banks’’, respectively.
(2) FEDERAL HOME LOAN BANK SYSTEM.—The
Federal Home Loan Bank Act (12 U.S.C. 1421 et
seq.) is amended by striking ‘‘Federal Home Loan
Bank System’’ and inserting ‘‘enterprise resource
bank system’’.
(c) REDESIGNATION OF ACT.—
(1) IN
GENERAL.—The Federal Home Loan
Bank Act (12 U.S.C. 1421 et seq.) is amended by
striking the clause that appears after the enacting
clause and before section 2 and inserting the follow-
ing new section:
‘‘SECTION 1. SHORT TITLE.
‘‘This Act may be cited as the ‘Enterprise Resource
Bank System Act’.’’.
(2) REFERENCES
TO
FEDERAL
HOME
LOAN
BANK ACT.—Any reference in this Act and any other
Federal law to the Federal Home Loan Bank Act
shall be deemed, as of the date of the enactment of
this Act, to be a reference to the Enterprise Re-
source Bank System Act.
(d) REFERENCES
TO
FEDERAL
HOME
LOAN
BANKS.—Any reference in a Federal law to any Federal
home loan bank shall be deemed, as of the date of the
enactment of this Act, to be a reference to an enterprise
resource bank.
SEC. 3. PROVISIONS RELATING TO BANKS AND BANK OWN-
ERSHIP.
The Federal Home Loan Bank Act (12 U.S.C. 1421)
is amended by inserting after section 4 the following new
section:
‘‘SEC. 5. MISSION STATEMENT; ENTERPRISE RESOURCE
BANKS.
‘‘(a) MISSION.—The enterprise resource banks are
established by the Congress as profit-making financial in-
stitutions whose purposes are as follows:
‘‘(1) To promote residential mortgage lending
(including mortgages on housing for low- and mod-
erate-income families).
‘‘(2) To facilitate community and economic de-
velopment lending, including rural economic develop-
ment lending.
‘‘(3) To assist such lending, safely and soundly,
through a program of collateralized advances and
other financial services that provide long-term fund-
ing, liquidity, operational, and interest rate risk
management to the bank’s shareholders and certain
mortgagees who are not shareholders of the bank.
‘‘(b) DISTRICTS.—
‘‘(1) IN GENERAL.—Subject to subsection (c),
there are 12 districts which shall be known as enter-
prise resource bank districts.
‘‘(2) NAME OF DISTRICT.—Each district shall
bear a name descriptive of the district.
‘‘(3) DISTRICTS DESIGNATED.—Subject to sub-
section (c), the 12 districts shall be comprised as fol-
lows:
‘‘(A) District 1 shall be composed of the
States of Connecticut, Maine, Massachusetts,
New Hampshire, Rhode Island, and Vermont.
‘‘(B) District 2 shall be composed of the
States of New Jersey and New York, the Com-
monwealth of Puerto Rico, and the territory of
the Virgin Islands.
‘‘(C) District 3 shall be composed of the
States of Delaware, Pennsylvania, and West
Virginia.
‘‘(D) District 4 shall be composed of the
States of Alabama, Florida, Georgia, Maryland,
North Carolina, South Carolina, and Virginia,
and the District of Columbia.
‘‘(E) District 5 shall be composed of the
States of Kentucky, Ohio, and Tennessee.
‘‘(F) District 6 shall be composed of the
States of Indiana and Michigan.
‘‘(G) District 7 shall be composed of the
States of Illinois and Wisconsin.
‘‘(H) District 8 shall be composed of the
States of Iowa, Minnesota, Missouri, North Da-
kota, and South Dakota.
‘‘(I) District 9 shall be composed of the
states of Arkansas, Louisiana, Mississippi, New
Mexico, and Texas.
‘‘(J) District 10 shall be composed of the
states of Colorado, Kansas, Nebraska, and
Oklahoma.
‘‘(K) District 11 shall be composed of the
states of Arizona, California, and Nevada.
‘‘(L) District 12 shall be composed of the
states of Alaska, Hawaii, Idaho, Montana, Or-
egon, Utah, Washington, and Wyoming, and
the territories of Guam and the Pacific Islands.
‘‘(4) SINGLE BANK IN EACH DISTRICT.—There
shall be 1 enterprise resource bank in each district.
‘‘(5) NO ADDITIONAL BANKS AUTHORIZED.—No
additional enterprise resource banks may be char-
tered by the Finance Board after the date of the en-
actment of the Enterprise Resource Bank Act of
1996, except in connection with a transaction under
subsection (c).
‘‘(c) MERGERS, CONSOLIDATIONS
AND COMBINA-
TIONS OF BANKS.—
‘‘(1) MERGER, CONSOLIDATION, AND COMBINA-
TION AUTHORITY.—In addition to the authority of
the Finance Board under section 24 and notwith-
standing subsection (b), 2 or more enterprise re-
source banks may merge or otherwise combine or
consolidate.
‘‘(2) PREREQUISITES
FOR
TRANSACTION.—A
merger, combination, or consolidation of enterprise
banks may be consummated under this subsection
only if the transaction is approved by—
‘‘(A) a majority of the board of directors
of each bank participating in the transaction;
‘‘(B) the holders of a majority of the vot-
ing shares of capital stock of each such bank,
in a vote by such shareholders in accordance
with the applicable procedure under section
7(d); and
‘‘(C) the Finance Board.
‘‘(3) EFFECTIVE
DATE
OF
TRANSACTION.—If
the requirements of paragraph (2) have been met, a
merger, combination, or consolidation of enterprise
resource banks shall be effective as of the date the
following conditions are met:
‘‘(A) A certificate of merger, combination,
or consolidation (in such form as the Finance
Board shall prescribe) is—
‘‘(i) executed by the banks participat-
ing in such transaction; and
‘‘(ii) filed with the Finance Board in
accordance with section 12(a)(3).
‘‘(B) The Finance Board has—
‘‘(i) approved the transaction in ac-
cordance with paragraph (12)(A); or
‘‘(ii) not disapproved the transaction
in accordance with paragraph (12)(B) be-
fore the end of the 120-day period begin-
ning on the date of the filing described in
subparagraph (A)(ii).
‘‘(4) MERGER AGREEMENT.—
‘‘(A) IN GENERAL.—Any merger, combina-
tion, or consolidation of enterprise resource
banks under this subsection shall be carried out
pursuant to an agreement entered into by all
the enterprise resource banks participating in
the transaction.
‘‘(B) CONTENTS
OF
AGREEMENT.—Any
agreement referred to in subparagraph (A)
shall specify—
‘‘(i) the terms and conditions of the
merger, combination, or consolidation;
‘‘(ii) the amendments to the charter
documents of the resulting bank to be af-
fected by the transaction, if any;
‘‘(iii) the location of the principal of-
fice of the resulting bank;
‘‘(iv) the manner of converting the
shares of each of the banks participating
in the transaction into shares of the result-
ing bank; and
‘‘(v) such other details or provisions
as are appropriate.
‘‘(5) SUCCESSION IN INTEREST.—Upon the ef-
fective date of any merger, combination, or consoli-
dation of enterprise resource banks under this sub-
section—
‘‘(A) the separate existence of any bank
participating in the transaction other than the
resulting bank shall cease to exist;
‘‘(B) the resulting bank shall—
‘‘(i) succeed to all the rights and
properties of each of the banks described
in subparagraph (A) without other trans-
fer; and
‘‘(ii) be subject to all the debts and li-
abilities of each such bank in the same
manner as if the resulting bank had in-
curred such debts and liabilities.
‘‘(6) EXISTING RIGHTS NOT AFFECTED.—This
subsection shall not affect any right of any creditor
of any enterprise resource bank which is participat-
ing in any merger, combination, or consolidation
under this subsection.
‘‘(7) PRESERVATION OF LIENS.—All liens upon
the property of any enterprise resource bank which
is participating in any merger, combination, or con-
solidation under this subsection shall continue to be
effective after the consummation of the transaction
except that any lien upon property of any bank other
than the resulting bank shall be effective only with
respect to the property which was subject to the lien
immediately before consummation of the transaction.
‘‘(8) CONTINUATION OF SUITS.—
‘‘(A) IN
GENERAL.—No action or other
proceeding commenced by or against any enter-
prise resource bank which is participating in
any merger, combination, or consolidation
under this subsection shall abate by reason of
the consummation of such transaction.
‘‘(B) 
SUBSTITUTION
OF
RESULTING
BANK.—In any action or proceeding described
in subparagraph (A), the enterprise resource
bank resulting from the transaction referred to
in such subparagraph shall be substituted for
the enterprise resource bank involved in such
action or proceeding before the consummation
of the transaction.
‘‘(C) 
APPLICABILITY
TO
RESULTING
BANK.—Any final judgment or other determina-
tion which becomes final in any action or pro-
ceeding described in subparagraph (A) shall be
binding on the bank resulting from the trans-
action referred to in such subparagraph.