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(c) REPORT.—The Director of the Federal Housing 
Finance Agency shall submit a report to the Congress on 
the study not later than the expiration of the 24-month 
period beginning on the effective date under section 185. 
SEC. 185. EFFECTIVE DATE. 
Except as specifically provided otherwise in this title, 
this title shall take effect on and the amendments made 
by this title shall take effect on, and shall apply beginning 
on, the expiration of the 6-month period beginning on the 
date of the enactment of this Act. 
TITLE II—FEDERAL HOME LOAN 
BANKS 
SEC. 201. DEFINITIONS. 
Section 2 of the Federal Home Loan Bank Act (12 
U.S.C. 1422) is amended—
(1) by striking paragraphs (1), (10), and (11); 
(2) by redesignating paragraphs (2) through 
(9) as paragraphs (1) through (8), respectively; 
(3) by redesignating paragraphs (12) and (13) 
as paragraphs (9) and (10), respectively; and 
(4) by adding at the end the following: 
‘‘(11) DIRECTOR.—The term ‘Director’ means 
the Director of the Federal Housing Finance Agen-
cy.
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‘‘(12) AGENCY.—The term ‘Agency’ means the 
Federal Housing Finance Agency.’’. 
SEC. 202. DIRECTORS. 
(a) ELECTION.—Section 7 of the Federal Home Loan 
Bank Act (12 U.S.C. 1427) is amended—
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) NUMBER; ELECTION; QUALIFICATIONS; CON-
FLICTS OF INTEREST.—
‘‘(1) IN GENERAL.—The management of each 
Federal Home Loan Bank shall be vested in a board 
of 13 directors, or such other number as the Direc-
tor determines appropriate, each of whom shall be a 
citizen of the United States. All directors of a Bank 
who are not independent directors pursuant to para-
graph (3) shall be elected by the members. 
‘‘(2) MEMBER DIRECTORS.—A majority of the 
directors of each Bank shall be officers or directors 
of a member of such Bank that is located in the dis-
trict in which such Bank is located. 
‘‘(3) INDEPENDENT DIRECTORS.—At least two-
fifths of the directors of each Bank shall be inde-
pendent directors, who shall be appointed by the Di-
rector of the Federal Housing Finance Agency from 
a list of individuals recommended by the Federal
315
Housing Enterprise Board. The Federal Housing 
Enterprise Board may recommend individuals who 
are identified by the Board’s own independent proc-
ess or included on a list of individuals recommended 
by the board of directors of the Bank involved, 
which shall be submitted to the Federal Housing 
Enterprise Board by such board of directors. The 
number of individuals on any such list submitted by 
a Bank’s board of directors shall be equal to at least 
two times the number of independent directorships 
to be filled. All independent directors appointed shall 
meet the following criteria: 
‘‘(A) IN GENERAL.—Each independent di-
rector shall be a bona fide resident of the dis-
trict in which such Bank is located. 
‘‘(B) PUBLIC
INTEREST
DIRECTORS.—At 
least 2 of the independent directors under this 
paragraph of each Bank shall be representatives 
chosen from organizations with more than a 2-
year history of representing consumer or com-
munity interests on banking services, credit 
needs, housing, community development, eco-
nomic development, or financial consumer pro-
tections. 
‘‘(C) OTHER DIRECTORS.—
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‘‘(i) 
QUALIFICATIONS.—Each 
inde-
pendent director that is not a public inter-
est director under subparagraph (B) shall 
have demonstrated knowledge of, or experi-
ence in, financial management, auditing 
and accounting, risk management prac-
tices, derivatives, project development, or 
organizational management, or such other 
knowledge or expertise as the Director may 
provide by regulation. 
‘‘(ii) CONSULTATION WITH BANKS.—
In appointing other directors to serve on 
the board of a Federal home loan bank, 
the Director of the Federal Housing Fi-
nance Agency may consult with each Fed-
eral home loan bank about the knowledge, 
skills, and expertise needed to assist the 
board in better fulfilling its responsibilities. 
‘‘(D) CONFLICTS OF INTEREST.—Notwith-
standing subsection (f)(2), an independent di-
rector under this paragraph of a Bank may not, 
during such director’s term of office, serve as 
an officer of any Federal Home Loan Bank or 
as a director or officer of any member of a 
Bank.
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‘‘(E) COMMUNITY DEMOGRAPHICS.—In ap-
pointing independent directors of a Bank pur-
suant to this paragraph, the Director shall take 
into consideration the demographic makeup of 
the community most served by the Affordable 
Housing Program of the Bank pursuant to sec-
tion 10(j).’’; 
(2) in the first sentence of subsection (b), by 
striking ‘‘elective directorship’’ and inserting ‘‘mem-
ber directorship established pursuant to subsection 
(a)(2)’’; 
(3) in subsection (c)—
(A) by striking ‘‘elective’’ each place such 
term appears and inserting ‘‘member’’, ex-
cept—
(i) in the second sentence, the second 
place such term appears; and 
(ii) each place such term appears in 
the fifth sentence; 
(B) in the first sentence, by inserting after 
‘‘less than one’’ the following: ‘‘or two, as deter-
mined by the board of directors of the appro-
priate Federal home loan bank,’’; and 
(C) in the second sentence—