318
(i) by inserting ‘‘(A) except as pro-
vided in clause (B) of this sentence,’’ be-
fore ‘‘if at any time’’; and 
(ii) by inserting before the period at 
the end the following: ‘‘, and (B) clause 
(A) of this sentence shall not apply to the 
directorships of any Federal home loan 
bank resulting from the merger of any two 
or more such banks’’; and 
(4) by striking ‘‘elective’’ each place such term 
appears (except in subsections (c), (e), and (f)). 
(b) TERMS.—
(1) IN GENERAL.—Section 7(d) of the Federal 
Home Loan Bank Act (12 U.S.C. 1427(d)) is 
amended—
(A) in the first sentence, by striking ‘‘3 
years’’ and inserting ‘‘4 years’’; and 
(B) in the second sentence—
(i) by striking ‘‘Federal Home Loan 
Bank System Modernization Act of 1999’’ 
and inserting ‘‘Federal Housing Finance 
Reform Act of 2007’’; and 
(ii) by striking ‘‘1/3’’ and inserting 
‘‘1/4’’.
319
(2) SAVINGS
PROVISION.—The amendments 
made by paragraph (1) shall not apply to the term 
of office of any director of a Federal home loan bank 
who is serving as of the effective date of this title 
under section 211, including any director elected to 
fill a vacancy in any such office. 
(c) CONTINUED SERVICE OF INDEPENDENT DIREC-
TORS AFTER EXPIRATION OF TERM.—Section 7(f)(2) of 
the Federal Home Loan Bank Act (12 U.S.C. 1427(f)(2)) 
is amended—
(1) in the second sentence, by striking ‘‘or the 
term of such office expires, whichever occurs first’’; 
(2) by adding at the end the following new sen-
tence: ‘‘An independent Bank director may continue 
to serve as a director after the expiration of the 
term of such director until a successor is ap-
pointed.’’; 
(3) in the paragraph heading, by striking ‘‘AP-
POINTED’’ and inserting ‘‘INDEPENDENT’’; and 
(4) by striking ‘‘appointive’’ each place such 
term appears and inserting ‘‘independent’’. 
(d) CONFORMING AMENDMENTS.—Section 7(f)(3) of 
the Federal Home Loan Bank Act (12 U.S.C. 1427(f)(3)) 
is amended—
320
(1) in the paragraph heading, by striking 
‘‘ELECTED’’ and inserting ‘‘MEMBER’’; and 
(2) by striking ‘‘elective’’ each place such term 
appears in the first and third sentences and insert-
ing ‘‘member’’. 
(e) COMPENSATION.—Subsection (i) of section 7 of 
the Federal Home Loan Bank Act (12 U.S.C. 1427(i)) 
is amended to read as follows: 
‘‘(i) DIRECTORS’ COMPENSATION.—
‘‘(1) IN GENERAL.—Each Federal home loan 
bank may pay the directors on the board of directors 
for the bank reasonable and appropriate compensa-
tion for the time required of such directors, and rea-
sonable and appropriate expenses incurred by such 
directors, in connection with service on the board of 
directors, in accordance with resolutions adopted by 
the board of directors and subject to the approval of 
the Director. 
‘‘(2) ANNUAL REPORT BY THE BOARD.—The 
Director shall include, in the annual report sub-
mitted to the Congress pursuant to section 1319B of 
the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992, information regarding 
the compensation and expenses paid by the Federal
321
home loan banks to the directors on the boards of 
directors of the banks.’’. 
(f) TRANSITION RULE.—Any member of the board 
of directors of a Federal Home Loan Bank serving as of 
the effective date under section 211 may continue to serve 
as a member of such board of directors for the remainder 
of the term of such office as provided in section 7 of the 
Federal Home Loan Bank Act, as in effect before such 
effective date. 
SEC. 203. FEDERAL HOUSING FINANCE AGENCY OVER-
SIGHT OF FEDERAL HOME LOAN BANKS. 
The Federal Home Loan Bank Act (12 U.S.C. 1421 
et seq.), other than in provisions of that Act added or 
amended otherwise by this Act, is amended—
(1) by striking sections 2A and 2B (12 U.S.C. 
1422a, 1422b); 
(2) in section 6 (12 U.S.C. 1426(b)(1))—
(A) in subsection (b)(1), in the matter pre-
ceding subparagraph (A), by striking ‘‘Finance 
Board approval’’ and inserting ‘‘approval by the 
Director’’; and 
(B) in each of subsections (c)(4)(B) and 
(d)(2), by striking ‘‘Finance Board regulations’’ 
each place that term appears and inserting 
‘‘regulations of the Director’’;
322
(3) in section 8 (12 U.S.C. 1428), in the sec-
tion heading, by striking ‘‘BY THE BOARD’’; 
(4) in section 10(b) (12 U.S.C. 1430(b)), by 
striking ‘‘by formal resolution’’; 
(5) in section 10 (12 U.S.C. 1430), by adding 
at the end the following new subsection: 
‘‘(k) MONITORING
AND ENFORCING COMPLIANCE 
WITH AFFORDABLE HOUSING AND COMMUNITY INVEST-
MENT
PROGRAM
REQUIREMENTS.—The requirements 
under subsection (i) and (j) that the Banks establish Com-
munity Investment and Affordable Housing Programs, re-
spectively, and contribute to the Affordable Housing Pro-
gram, shall be enforceable by the Director with respect 
to the Banks in the same manner and to the same extent 
as the housing goals under subpart B of part 2 of subtitle 
A of title XIII of the Housing and Community Develop-
ment Act of 1992 (12 U.S.C. 4561 et seq.) are enforceable 
under section 1336 of such Act with respect to the Federal 
National Mortgage Association and the Federal Home 
Loan Mortgage Corporation.’’; 
(6) in section 11 (12 U.S.C. 1431)—
(A) in subsection (b)—
(i) in the first sentence—
323
(I) by striking ‘‘The Board’’ and 
inserting ‘‘The Office of Finance, as 
agent for the Banks,’’; and 
(II) by striking ‘‘the Board’’ and 
inserting ‘‘such Office’’; and 
(ii) in the second and fourth sen-
tences, by striking ‘‘the Board’’ each place 
such term appears and inserting ‘‘the Of-
fice of Finance’’; 
(B) in subsection (c)—
(i) by striking ‘‘the Board’’ the first 
place such term appears and inserting ‘‘the 
Office of Finance, as agent for the 
Banks,’’; and 
(ii) by striking ‘‘the Board’’ the sec-
ond place such term appears and inserting 
‘‘such Office’’; and 
(C) in subsection (f)—
(i) by striking the two commas after 
‘‘permit’’ and inserting ‘‘or’’; and 
(ii) by striking the comma after ‘‘re-
quire’’; 
(7) in section 15 (12 U.S.C. 1435), by inserting 
‘‘or the Director’’ after ‘‘the Board’’;
324
(8) in section 18 (12 U.S.C. 1438), by striking 
subsection (b); 
(9) in section 21 (12 U.S.C. 1441)—
(A) in subsection (b)—
(i) in paragraph (5), by striking 
‘‘Chairperson of the Federal Housing Fi-
nance Board’’ and inserting ‘‘Director’’; 
and 
(ii) in the heading for paragraph (8), 
by striking ‘‘FEDERAL HOUSING FINANCE 
BOARD’’ and inserting ‘‘DIRECTOR’’; and 
(B) in subsection (i), in the heading for 
paragraph (2), by striking ‘‘FEDERAL HOUSING 
FINANCE BOARD’’ and inserting ‘‘DIRECTOR’’; 
(10) in section 23 (12 U.S.C. 1443), by striking 
‘‘Board of Directors of the Federal Housing Finance 
Board’’ and inserting ‘‘Director’’; 
(11) by striking ‘‘the Board’’ each place such 
term appears in such Act (except in section 15 (12 
U.S.C. 
1435), 
section 
21(f)(2) 
(12 
U.S.C. 
1441(f)(2)), 
subsections 
(a), 
(k)(2)(B)(i), 
and 
(n)(6)(C)(ii) of section 21A (12 U.S.C. 1441a), sub-
sections (f)(2)(C), and (k)(7)(B)(ii) of section 21B 
(12 U.S.C. 1441b), and the first two places such
325
term appears in section 22 (12 U.S.C. 1442)) and 
inserting ‘‘the Director’’; 
(12) by striking ‘‘The Board’’ each place such 
term appears in such Act (except in sections 7(e) 
(12 U.S.C. 1427(e)), and 11(b) (12 U.S.C. 1431(b)) 
and inserting ‘‘The Director’’; 
(13) by striking ‘‘the Board’s’’ each place such 
term appears in such Act and inserting ‘‘the Direc-
tor’s’’; 
(14) by striking ‘‘The Board’s’’ each place such 
term appears in such Act and inserting ‘‘The Direc-
tor’s’’; 
(15) by striking ‘‘the Finance Board’’ each 
place such term appears in such Act and inserting 
‘‘the Director’’; 
(16) by striking ‘‘Federal Housing Finance 
Board’’ each place such term appears and inserting 
‘‘Director’’; 
(17) in section 11(i) (12 U.S.C. 1431(i), by 
striking ‘‘the Chairperson of’’; and 
(18) in section 21(e)(9) (12 U.S.C. 1441(e)(9)), 
by striking ‘‘Chairperson of the’’.
326
SEC. 204. JOINT ACTIVITIES OF BANKS. 
Section 11 of the Federal Home Loan Bank Act (12 
U.S.C. 1431) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(l) JOINT ACTIVITIES.—Subject to the regulation of 
the Director, any two or more Federal Home Loan Banks 
may establish a joint office for the purpose of performing 
functions for, or providing services to, the Banks on a 
common or collective basis, or may require that the Office 
of Finance perform such functions or services, but only 
if the Banks are otherwise authorized to perform such 
functions or services individually.’’. 
SEC. 205. SHARING OF INFORMATION BETWEEN FEDERAL 
HOME LOAN BANKS. 
(a) IN GENERAL.—The Federal Home Loan Bank 
Act is amended by inserting after section 20 (12 U.S.C. 
1440) the following new section: 
‘‘SEC. 20A. SHARING OF INFORMATION BETWEEN FEDERAL 
HOME LOAN BANKS. 
‘‘(a) REGULATORY AUTHORITY.—The Director shall 
prescribe such regulations as may be necessary to ensure 
that each Federal Home Loan Bank has access to infor-
mation that the Bank needs to determine the nature and 
extent of its joint and several liability. 
‘‘(b) NO WAIVER OF PRIVILEGE.—The Director shall 
not be deemed to have waived any privilege applicable to
327
any information concerning a Federal Home Loan Bank 
by transferring, or permitting the transfer of, that infor-
mation to any other Federal Home Loan Bank for the 
purpose of enabling the recipient to evaluate the nature 
and extent of its joint and several liability.’’. 
(b) REGULATIONS.—The regulations required under 
the amendment made by subsection (a) shall be issued in 
final form not later than 6 months after the effective date 
under section 211 of this Act. 
SEC. 206. REORGANIZATION OF BANKS AND VOLUNTARY 
MERGER. 
Section 26 of the Federal Home Loan Bank Act (12 
U.S.C. 1446) is amended—
(1) by inserting ‘‘(a) REORGANIZATION.—’’ be-
fore ‘‘Whenever’’; and 
(2) by striking ‘‘liquidated or’’ each place such 
phrase appears; 
(3) by striking ‘‘liquidation or’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(b) VOLUNTARY MERGERS.—Any two or more 
Banks may, with the approval of the Director, and the 
approval of the boards of directors of the Banks involved, 
merge. The Director shall promulgate regulations estab-
lishing the conditions and procedures for the consideration
328
and approval of any such voluntary merger, including the 
procedures for Bank member approval.’’. 
SEC. 207. SECURITIES AND EXCHANGE COMMISSION DIS-
CLOSURE. 
(a) IN GENERAL.—The Federal Home Loan Banks 
shall be exempt from compliance with—
(1) sections 13(e), 14(a), 14(c), and 17A of the 
Securities Exchange Act of 1934 and related Com-
mission regulations; and 
(2) section 15 of that Act and related Securities 
and Exchange Commission regulations with respect 
to transactions in capital stock of the Banks. 
(b) MEMBER EXEMPTION.—The members of the 
Federal Home Loan Banks shall be exempt from compli-
ance with sections 13(d), 13(f), 13(g), 14(d), and 16 of 
the Securities Exchange Act of 1934 and related Securi-
ties and Exchange Commission regulations with respect 
to their ownership of, or transactions in, capital stock of 
the Federal Home Loan Banks. 
(c) EXEMPTED AND GOVERNMENT SECURITIES.—
(1) CAPITAL STOCK.—The capital stock issued 
by each of the Federal Home Loan Banks under 
section 6 of the Federal Home Loan Bank Act are—
329
(A) exempted securities within the mean-
ing of section 3(a)(2) of the Securities Act of 
1933; and 
(B) ‘‘exempted securities’’ within the 
meaning of section 3(a)(12)(A) of the Securities 
Exchange Act of 1934. 
(2) OTHER
OBLIGATIONS.—The debentures, 
bonds, and other obligations issued under section 11 
of the Federal Home Loan Bank Act are—
(A) exempted securities within the mean-
ing of section 3(a)(2) of the Securities Act of 
1933; 
(B) ‘‘government securities’’ within the 
meaning of section 3(a)(42) of the Securities 
Exchange Act of 1934; 
(C) excluded from the definition of ‘‘gov-
ernment securities broker’’ within section 
3(a)(43) of the Securities Exchange Act of 
1934; 
(D) excluded from the definition of ‘‘gov-
ernment 
securities 
dealer’’ 
within 
section 
3(a)(44) of the Securities Exchange Act of 
1934; and
330
(E) ‘‘government securities’’ within the 
meaning of section 2(a)(16) of the Investment 
Company Act of 1940. 
(d) 
EXEMPTION
FROM
REPORTING
REQUIRE-
MENTS.—The Federal Home Loan Banks shall be exempt 
from periodic reporting requirements pertaining to—
(1) the disclosure of related party transactions 
that occur in the ordinary course of business of the 
Banks with their members; and 
(2) the disclosure of unregistered sales of equity 
securities. 
(e) TENDER OFFERS.—The Securities and Exchange 
Commission’s rules relating to tender offers shall not 
apply in connection with transactions in capital stock of 
the Federal Home Loan Banks. 
(f) REGULATIONS.—In issuing any final regulations 
to implement provisions of this section, the Securities and 
Exchange Commission shall consider the distinctive char-
acteristics of the Federal Home Loan Banks when evalu-
ating the accounting treatment with respect to the pay-
ment to Resolution Funding Corporation, the role of the 
combined financial statements of the twelve Banks, the ac-
counting classification of redeemable capital stock, and the 
accounting treatment related to the joint and several na-
ture of the obligations of the Banks.