216 
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with the minimum investment required pursu-
ant to the plan. 
‘‘(B) 
INTERIM
PURCHASE
REQUIRE-
MENTS.—The capital structure plan of a Fed-
eral home loan bank may allow any member re-
ferred to in subparagraph (A) that would be re-
quired by the terms of the capital structure 
plan to increase its investment in the stock of 
the bank to do so in periodic installments dur-
ing the transition period. 
‘‘(3) DISPOSITION
OF
SHARES.—The capital 
structure plan of a Federal home loan bank shall 
provide for the manner of disposition of any stock 
held by a member of that bank that terminates its 
membership or that provides notice of its intention 
to withdraw from membership in that bank. 
‘‘(4) CLASSES OF STOCK.— 
‘‘(A) IN GENERAL.—The capital structure 
plan of a Federal home loan bank shall afford 
each member of that bank the option of main-
taining its required investment in the bank 
through the purchase of any combination of 
classes of stock authorized by the board of di-
rectors of the bank and approved by the Fi-
nance Board in accordance with its regulations. 
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HR 10 PCS 
‘‘(B) RIGHTS REQUIREMENT.—A Federal 
home loan bank shall include in its capital 
structure plan provisions establishing terms, 
rights, and preferences, including minimum in-
vestment, dividends, voting, and liquidation 
preferences of each class of stock issued by the 
bank, consistent with Finance Board regula-
tions and market requirements. 
‘‘(C) REDUCED MINIMUM INVESTMENT.— 
The capital structure plan of a Federal home 
loan bank may provide for a reduced minimum 
stock investment for any member of that bank 
that elects to purchase Class B, Class C, or any 
other class of nonredeemable stock, in a manner 
that is consistent with meeting the minimum 
capital requirements of the bank, as established 
by the Finance Board. 
‘‘(D) LIQUIDATION OF CLAIMS.—The cap-
ital structure plan of a Federal home loan bank 
shall provide for the liquidation in an orderly 
manner, as determined by the bank, of any 
claim of that bank against a member, including 
claims for any applicable prepayment fees or 
penalties resulting from prepayment of ad-
vances prior to stated maturity. 
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HR 10 PCS 
‘‘(5) LIMITED TRANSFERABILITY OF STOCK.— 
The capital structure plan of a Federal home loan 
bank shall— 
‘‘(A) provide that— 
‘‘(i) any stock issued by that bank 
shall be available only to, held only by, and 
tradable only among members of that bank 
and between that bank and its members; 
and 
‘‘(ii) a bank has no obligation to re-
purchase its outstanding Class C stock but 
may do so, provided it is consistent with 
Finance Board regulations and is at a 
price that is mutually agreeable to the 
bank and the member; and 
‘‘(B) establish standards, criteria, and re-
quirements for the issuance, purchase, transfer, 
retirement, and redemption of stock issued by 
that bank. 
‘‘(6) BANK REVIEW OF PLAN.—Before filing a 
capital structure plan with the Finance Board, each 
Federal home loan bank shall conduct a review of 
the plan by— 
‘‘(A) an independent certified public ac-
countant, to ensure, to the extent possible, that 
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HR 10 PCS 
implementation of the plan would not result in 
any write-down of the redeemable bank stock 
investment of its members; and 
‘‘(B) at least one major credit rating agen-
cy, to determine, to the extent possible, whether 
implementation of the plan would have any ma-
terial effect on the credit ratings of the bank. 
‘‘(d) TERMINATION OF MEMBERSHIP.— 
‘‘(1) VOLUNTARY WITHDRAWAL.—Any member 
may withdraw from a Federal home loan bank by 
providing written notice to the bank of its intent to 
do so. The applicable stock redemption notice peri-
ods shall commence upon receipt of the notice by the 
bank. Upon the expiration of the applicable notice 
period for each class of redeemable stock, the mem-
ber may surrender such stock to the bank, and shall 
be entitled to receive in cash the par value of the 
stock. During the applicable notice periods, the 
member shall be entitled to dividends and other 
membership rights commensurate with continuing 
stock ownership. 
‘‘(2) INVOLUNTARY WITHDRAWAL.— 
‘‘(A) IN GENERAL.—The board of directors 
of a Federal home loan bank may terminate the 
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HR 10 PCS 
membership of any institution if, subject to Fi-
nance Board regulations, it determines that— 
‘‘(i) the member has failed to comply 
with a provision of this Act or any regula-
tion prescribed under this Act; or 
‘‘(ii) the member has been determined 
to be insolvent, or otherwise subject to the 
appointment of a conservator, receiver, or 
other legal custodian, by a State or Fed-
eral authority with regulatory and super-
visory responsibility for the member. 
‘‘(B) STOCK DISPOSITION.—An institution, 
the membership of which is terminated in ac-
cordance with subparagraph (A)— 
‘‘(i) shall surrender redeemable stock 
to the Federal home loan bank, and shall 
receive in cash the par value of the stock, 
upon the expiration of the applicable notice 
period under subsection (a)(4)(A); 
‘‘(ii) shall receive any dividends de-
clared on its redeemable stock, during the 
applicable notice period under subsection 
(a)(4)(A); and 
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HR 10 PCS 
‘‘(iii) shall not be entitled to any other 
rights or privileges accorded to members 
after the date of the termination. 
‘‘(C) COMMENCEMENT
OF
NOTICE
PE-
RIOD.—With respect to an institution, the 
membership of which is terminated in accord-
ance with subparagraph (A), the applicable no-
tice period under subsection (a)(4) for each 
class of redeemable stock shall commence on 
the earlier of— 
‘‘(i) the date of such termination; or 
‘‘(ii) the date on which the member 
has provided notice of its intent to redeem 
such stock. 
‘‘(3) LIQUIDATION OF INDEBTEDNESS.—Upon 
the termination of the membership of an institution 
for any reason, the outstanding indebtedness of the 
member to the bank shall be liquidated in an orderly 
manner, as determined by the bank and, upon the 
extinguishment of all such indebtedness, the bank 
shall return to the member all collateral pledged to 
secure the indebtedness. 
‘‘(e) REDEMPTION OF EXCESS STOCK.— 
‘‘(1) IN GENERAL.—A Federal home loan bank, 
in its sole discretion, may redeem or repurchase, as 
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HR 10 PCS 
appropriate, any shares of Class A or Class B stock 
issued by the bank and held by a member that are 
in excess of the minimum stock investment required 
of that member. 
‘‘(2) EXCESS STOCK.—Shares of stock held by 
a member shall not be deemed to be ‘excess stock’ 
for purposes of this subsection by virtue of a mem-
ber’s submission of a notice of intent to withdraw 
from membership or termination of its membership 
in any other manner. 
‘‘(3) PRIORITY.—A Federal home loan bank 
may not redeem any excess Class B stock prior to 
the end of the 5-year notice period, unless the mem-
ber has no Class A stock outstanding that could be 
redeemed as excess. 
‘‘(f) IMPAIRMENT
OF CAPITAL.—If the Finance 
Board or the board of directors of a Federal home loan 
bank determines that the bank has incurred or is likely 
to incur losses that result in or are expected to result in 
charges against the capital of the bank, the bank shall 
not redeem or repurchase any stock of the bank without 
the prior approval of the Finance Board while such 
charges are continuing or are expected to continue. In no 
case may a bank redeem or repurchase any applicable cap-
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HR 10 PCS 
ital stock if, following the redemption, the bank would fail 
to satisfy any minimum capital requirement. 
‘‘(g) REJOINING
AFTER
DIVESTITURE
OF
ALL 
SHARES.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), and notwithstanding any other provision 
of this Act, an institution that divests all shares of 
stock in a Federal home loan bank may not, after 
such divestiture, acquire shares of any Federal home 
loan bank before the end of the 5-year period begin-
ning on the date of the completion of such divesti-
ture, unless the divestiture is a consequence of a 
transfer of membership on an uninterrupted basis 
between banks. 
‘‘(2) EXCEPTION
FOR
WITHDRAWALS
FROM 
MEMBERSHIP
BEFORE
1998.—Any institution that 
withdrew from membership in any Federal home 
loan bank before December 31, 1997, may acquire 
shares of a Federal home loan bank at any time 
after that date, subject to the approval of the Fi-
nance Board and the requirements of this Act. 
‘‘(h) TREATMENT OF RETAINED EARNINGS.— 
‘‘(1) IN GENERAL.—The holders of the Class C 
stock of a Federal home loan bank, and any other 
classes of nonredeemable stock approved by the Fi-
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HR 10 PCS 
nance Board (to the extent provided in the terms 
thereof), shall own the retained earnings, surplus, 
undivided profits, and equity reserves, if any, of the 
bank. 
‘‘(2) 
NO
NONREDEEMABLE
CLASSES
OF 
STOCK.—If a Federal home loan bank has no out-
standing Class C or other such nonredeemable stock, 
then the holders of any other classes of stock of the 
bank then outstanding shall have ownership in, and 
a private property right in, the retained earnings, 
surplus, undivided profits, and equity reserves, if 
any, of the bank. 
‘‘(3) EXCEPTION.—Except as specifically pro-
vided in this section or through the declaration of a 
dividend or a capital distribution by a Federal home 
loan bank, or in the event of liquidation of the bank, 
a member shall have no right to withdraw or other-
wise receive distribution of any portion of the re-
tained earnings of the bank. 
‘‘(4) LIMITATION.—A Federal home loan bank 
may not make any distribution of its retained earn-
ings unless, following such distribution, the bank 
would continue to meet all applicable capital require-
ments.’’. 
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HR 10 PCS 
Subtitle H—ATM Fee Reform 
SEC. 171. SHORT TITLE. 
This subtitle may be cited as the ‘‘ATM Fee Reform 
Act of 1999’’. 
SEC. 172. ELECTRONIC FUND TRANSFER FEE DISCLOSURES 
AT ANY HOST ATM. 
Section 904(d) of the Electronic Fund Transfer Act 
(15 U.S.C. 1693b(d)) is amended by adding at the end 
the following new paragraph: 
‘‘(3) FEE DISCLOSURES AT AUTOMATED TELL-
ER MACHINES.— 
‘‘(A) IN GENERAL.—The regulations pre-
scribed under paragraph (1) shall require any 
automated teller machine operator who imposes 
a fee on any consumer for providing host trans-
fer services to such consumer to provide notice 
in accordance with subparagraph (B) to the 
consumer (at the time the service is provided) 
of— 
‘‘(i) the fact that a fee is imposed by 
such operator for providing the service; 
and 
‘‘(ii) the amount of any such fee. 
‘‘(B) NOTICE REQUIREMENTS.— 
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HR 10 PCS 
‘‘(I) 
EMPLOYEE
BENEFIT 
PLANS.—The 
bank 
effects 
trans-
actions, as a registered transfer agent 
(including as a registrar of stocks), in 
the securities of an issuer as part of 
any pension, retirement, profit-shar-
ing, bonus, thrift, savings, incentive, 
or other similar benefit plan for the 
employees of that issuer or its affili-
ates (as defined in section 2 of the 
Bank Holding Company Act of 1956), 
if— 
‘‘(aa) the bank does not so-
licit transactions or provide in-
vestment advice with respect to 
the purchase or sale of securities 
in connection with the plan; and 
‘‘(bb) the bank’s compensa-
tion for such plan or program 
consists chiefly of administration 
fees, or flat or capped per order 
processing fees, or both. 
‘‘(II) DIVIDEND
REINVESTMENT 
PLANS.—The 
bank 
effects 
trans-
actions, as a registered transfer agent 
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