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nization certificate which shall contain such in-
formation as the Board may require.
‘‘(B) FILING.—Upon the making and filing
of the organization certificate with the Board,
the Bank shall become as of the date of the
execution of its organization certificate, a body
corporate, and as such and in its name it shall
have the powers described in paragraph (2).
‘‘(2) POWERS
OF
FEDERAL
HOME
LOAN
BANKS.—Each Federal Home Loan Bank shall have
the following powers—
‘‘(A) to adopt, alter, and use a corporate
seal;
‘‘(B) to make contracts;
‘‘(C) to purchase or lease and hold or dis-
pose of such real estate as may be necessary or
convenient for the transaction of its business;
‘‘(D) to sue and be sued, to complain, and
to defend, in any court of competent jurisdic-
tion, State or Federal;
‘‘(E) to select, employ, and fix the com-
pensation of such officers, employees, attorneys,
and agents as shall be necessary for the trans-
action of its business;
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‘‘(F) to define the duties of such officers,
employees, attorneys, and agents; require bonds
of them and fix the penalties thereof; and to
dismiss them at pleasure;
‘‘(G) by its board of directors, to prescribe,
amend, and repeal by-laws, rules and regula-
tions governing the manner which its affairs
may be administered; and
‘‘(H) to exercise the powers granted to it
by law.
‘‘(3) OFFICERS AS DIRECTORS.—The president
of a Federal Home Loan Bank also may be a mem-
ber of the board of directors thereof, but no other
officer, employee, attorney, or agent of such Bank,
who receives compensation, may be a member of the
board of directors.
‘‘(4) 
INCIDENTAL
POWERS.—Each 
Federal
Home Loan Bank shall have all such incidental pow-
ers, but inconsistent with the provisions of this Act,
as are customary and usual in corporations gen-
erally.’’.
(b) TECHNICAL AMENDMENT.—Section 12(b) of the
Federal Home Loan Bank Act (12 U.S.C. 1432(b)) is
amended by deleting ‘‘Federal home loans banks’’ and in-
serting ‘‘Federal Home Loan Banks’’.
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SEC. 117. EXEMPTION FROM TAXATION; OBLIGATIONS AC-
CEPTABLE AS CREDIT ON DEBT OF HOME
OWNER.
Section 13 of the Federal Home Loan Bank Act (12
U.S.C. 1433) is amended—
(1) by striking ‘‘bank’’ each place it appears
and inserting ‘‘Federal Home Loan Bank’’; and
(2) by striking ‘‘except that in any real prop-
erty of the bank’’ and inserting ‘‘except that any
real property’’.
SEC. 118. OBLIGATIONS AS LAWFUL INVESTMENTS; LIABIL-
ITY OF UNITED STATES FOR OBLIGATIONS
ISSUED BY BANKS.
Section 15 of the Federal Home Loan Bank Act (12
U.S.C. 1435) is amended to read as follows:
‘‘SEC. 15. OBLIGATIONS AS LAWFUL INVESTMENTS; LIABIL-
ITY OF UNITED STATES FOR OBLIGATIONS
ISSUED BY BANKS.
‘‘(a) LAWFUL INVESTMENTS.—Obligations of the
Federal Home Loan Banks issued in compliance with this
Act shall be lawful investments, and may be accepted as
security, for all fiduciary, trust, and public funds the in-
vestment or deposit of which shall be under the authority
or control of the United States or any officer or officers
thereof.
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‘‘(b) 
FEDERAL
RESERVE
BANKS
AS
FISCAL
AGENTS.—The Federal Reserve banks are authorized to
act as depositaries, custodians, and/or fiscal agents for
Federal Home Loan Banks in the general performance of
their powers under this Act.
‘‘(c) DISCLOSURE REGARDING ABSENCE OF UNITED
STATES GUARANTEE.—All obligations of Federal Home
Loan Banks shall plainly state that such obligations are
not obligations of the United States and are not guaran-
teed by the United States.’’.
SEC. 119. RESERVES AND DIVIDENDS.
(a) RESERVE ACCOUNT; DIVIDENDS; INVESTMENT
OF RESERVES.—Section 16(a) of the Federal Home Loan
Bank Act (12 U.S.C. 1436(a)) is amended to read as
follows:
‘‘(a) RESERVE ACCOUNT; DIVIDENDS; INVESTMENT
OF RESERVES.—
‘‘(1) RESERVE ACCOUNT.—
‘‘(A) REQUIRED RESERVES.—
‘‘(i) IN GENERAL.—At the same time
it first establishes the capital standards re-
quired under section 6A, the Board shall
establish a reserve account requirement for
each Federal Home Loan Bank.
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‘‘(ii) FACTORS
CONSIDERED
IN
ES-
TABLISHING RESERVE REQUIREMENT.—In
establishing the reserve account required
by subparagraph (A), the Board shall take
into account that reserves are integral to a
Bank’s capital structure and its safety and
soundness, including the ability of a Bank
to satisfy its capital requirements, meet its
statutory obligations, and manage its busi-
ness operations.
‘‘(iii) RESERVE COMPLIANCE PLAN.—
At the same time each Bank submits to
the Board its plan specifying how the
Bank intends to implement its stock sub-
scription requirements, each Bank shall
submit to the Board a plan for complying
with the reserve account requirement es-
tablished under clause (i).
‘‘(B) ADDITIONAL RESERVES.—Each Fed-
eral Home Loan Bank may carry to a reserve
account from time to time such portion of its
net earnings as may be determined by its board
of directors.
‘‘(2) DIVIDENDS.—No dividends shall be paid
except out of previously retained earnings or current
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net earnings remaining after reductions for all re-
serves, chargeoffs, purchases of capital certificates of
the Financing Corporation, and payments relating to
the Funding Corporation required under this Act
have been provided for, other than charge-offs or ex-
penses incurred by a Bank in connection with the
purchase of capital stock of the Financing Corpora-
tion under section 21 of this Act or payments relat-
ing to the Funding Corporation Principal Fund
under section 21B(e) of this Act.
‘‘(3) INVESTMENT AUTHORITY.—The funds of
such Federal Home Loan Bank shall be invested,
subject to such regulations, restrictions, and limita-
tions as may be prescribed by the Board, in direct
obligations of the United States, in obligations, par-
ticipations, or other instruments of or issued by the
Federal National Mortgage Association or the Gov-
ernment National Mortgage Association, in mort-
gages, obligations, or other securities which are or
ever have been sold by the Federal Home Loan
Mortgage Corporation pursuant to section 305 or
section 306 of the Federal Home Loan Mortgage
Corporation Act, and in such securities as fiduciary
and trust funds may be invested in under the laws
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of the State in which the Federal Home Loan Bank
is located.’’.
(b) TECHNICAL AMENDMENTS.—Section 16(c) of the
Federal Home Loan Bank Act (12 U.S.C. 1436(c)) is
amended—
(1) by striking ‘‘bank’’ each place it appears
and inserting ‘‘Federal Home Loan Bank’’;
(2) by striking ‘‘bank’s’’ and inserting ‘‘Federal
Home Loan Bank’s’’; and
(3) in paragraph (1)(C), by striking ‘‘the first
2 sentences of subsection (a) of this section’’ and in-
serting ‘‘subsection (a)(1)’’.
SEC. 120. FINANCING CORPORATION.
Section 21(b) of the Federal Home Loan Bank Act
(12 U.S.C. 1441(b)) is amended by striking ‘‘Director of
the Office of Finance of Federal Home Loan Banks’’ and
inserting ‘‘director of the central office described in section
11(k)’’.
SEC. 121. OBLIGATIONS OF RESOLUTION FUNDING COR-
PORATION.
(a) PAYMENTS OF THE FEDERAL HOME LOAN BANK
SYSTEM.—Section 21B(f)(2)(C) of the Federal Home
Loan Bank Act (12 U.S.C. 1441b(f)(2)(C)) is amended
to read as follows:
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‘‘(C) PAYMENTS BY THE FEDERAL HOME
LOAN BANK SYSTEM.—
‘‘(i) AMOUNT
TO
BE
PAID.—To the
extent the amounts available pursuant to
subparagraphs (A) and (B) are insufficient
to cover the amount of interest payments,
the Federal Home Loan Banks shall pay
to the Funding Corporation each calendar
year 
the 
aggregate 
amount 
of
$300,000,000.
‘‘(ii) PRO RATA SHARE OF TOTAL SYS-
TEM
CAPITAL.—Except as provided in
clause (iii), the amount to be paid by each
Federal Home Loan Bank under clause (i)
shall be determined by—
‘‘(I) dividing the Bank’s required
capital by the total of all of the
Banks’ required capital; and
‘‘(II) multiplying the percentage
obtained under subclause (I) by
$300,000,000.
‘‘(iii) BANK ALLOCATION FORMULA.—
Notwithstanding clause (ii), the amount to
be paid by each Federal Home Loan Bank
under clause (i) shall be determined by a
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permanent formula established by the Fed-
eral Home Loan Banks if—
‘‘(I) within 60 days after the en-
actment of the Federal Home Loan
Bank System Restructuring and Mod-
ernization Act of 1995, the formula
established by the Banks is approved
by three-fourths of the Banks and by
Banks with combined total assets at
least equal to three-fourths of the
total assets of the System; and
‘‘(II) within 45 days after the
formula is approved as described in
subclause (I), the Federal Housing
Finance Board approves the formula
established by the Banks, specifically
finding that the formula—
‘‘(aa) is reasonable and con-
sistent with the objectives of as-
suring payment of the System’s
obligation in clause (i);
‘‘(bb) is equitable to the
Banks and members;
‘‘(cc) does not create incen-
tives for the Banks or members
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to engage in conduct inconsistent
with the purpose of the System;
and
‘‘(dd) is readily understood
and predictable in its impact.
‘‘(iv) DEFINITIONS.—
‘‘(I) REQUIRED
CAPITAL.—For
purposes of clause (ii), ‘required cap-
ital’ means the greater of the leverage
capital requirement or risk-based cap-
ital requirement established by the
Board for each Bank.
‘‘(II) TOTAL ASSETS.—For pur-
poses of clause (iii)(I), the ‘total as-
sets’ of each Bank and the System
shall be determined as of the date of
introduction of the Federal Home
Loan Bank System Restructuring and
Modernization Act of 1995.’’.
(b) DELAYED EFFECTIVE DATE.—The amendment
made by subsection (a) shall take effect beginning with
the calendar year following the year the Board prescribes
regulations establishing capital requirements under sec-
tion 6(b).
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(c) CONFORMING AMENDMENTS.—Section 21B(c)
(12 U.S.C. 1441b(c)) is amended by striking ‘‘director of
the Office of Finance of the Federal Home Loan Banks’’
and inserting ‘‘director of the central office described in
section 11(k)’’.
SEC. 122. ELIGIBILITY TO MEMBERSHIP IN BANKS.
Section 24 of the Federal Home Loan Bank Act (12
U.S.C. 1444) is repealed.
SEC. 123. MERGER, LIQUIDATION OR REORGANIZATION.
Section 26 of the Federal Home Loan Bank Act (12
U.S.C. 1446) is amended to read as follows:
‘‘(a) IN GENERAL.—Whenever the Board finds that
the efficient and economical accomplishment of the pur-
poses of this Act will be aided by such action, and in ac-
cordance with such rules, regulation, and orders as the
Board may prescribe—
‘‘(1) MERGERS.—Any Federal Home Loan
Bank may be required to merge with any other Fed-
eral Home Loan Bank; and
‘‘(2) LIQUIDATION OR REORGANIZATION.—Any
Federal Home Loan Bank may be liquidated or re-
organized by the Board, and the Bank’s stock paid
off and retired in whole or in part in connection
therewith after paying or making provision for the
payment of its liabilities.
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‘‘(b) ACQUISITION OF ASSETS AND ASSUMPTION OF
LIABILITIES.—In the case of any liquidation or reorga-
nization described in subsection (a), any other Federal
Home Loan Bank may, with the approval of the Board,
acquire assets of any such liquidated or reorganized bank
and assume liabilities thereof, in whole or in part.’’.
SEC. 124. GENERAL ENFORCEMENT POWERS.
The Federal Home Loan Bank Act is amended by
adding after section 27 (12 U.S.C. 1447) the following
new section:
‘‘SEC. 27A. GENERAL ENFORCEMENT POWERS.
‘‘(a) CEASE AND DESIST PROCEDURES.—
‘‘(1) GROUNDS
FOR
ISSUANCE.—The Board
may issue and serve upon a Federal Home Loan
Bank or a Bank-affiliated party a notice of charges
if, in the opinion of the Board, the Bank or Bank-
affiliated party—
‘‘(A) is engaging or has engaged, or the
Board has reasonable cause to believe that the
Bank or Bank-affiliated party is about to en-
gage, in an unsafe or unsound practice in con-
ducting the business of the Bank; or
‘‘(B) is violating or has violated, or the
Board has reasonable cause to believe that the
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Bank or Bank-affiliated party is about to vio-
late—
‘‘(i) a law, rule, or regulation;
‘‘(ii) any condition imposed in writing
by the Board in connection with the grant-
ing of any application or other request by
the Bank; or
‘‘(iii) any written agreement entered
into with the Board.
‘‘(2) PROCEDURE.—
‘‘(A) NOTICE OF CHARGES.—Any notice of
charges shall contain a statement of the facts
constituting the alleged violation or violations or
the unsafe or unsound practice or practices,
and shall fix a time and place at which a hear-
ing will be held to determine whether an order
to cease and desist therefrom should issue
against the Bank or Bank-affiliated party.
‘‘(B) DATE
OF
HEARING.—Such hearing
shall be fixed for a date not earlier than 30
days nor later than 60 days after service of
such notice unless an earlier or a later date is
set by the Board at the request of any party
served.
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respect to which such order is issued includes the
authority to require such Bank or party to—
‘‘(A) make restitution or provide reim-
bursement, 
indemnification, 
or 
guarantee
against loss if—
‘‘(i) the Bank or Bank-affiliated party
was unjustly enriched in connection with
such violation or practice; or
‘‘(ii) the violation or practice involved
a reckless disregard for the law or any ap-
plicable regulations or prior order of the
Board;
‘‘(B) restrict the growth of the Bank;
‘‘(C) dispose of any loan or asset involved;
‘‘(D) rescind agreements or contracts;
‘‘(E) employ qualified officers or employees
(who may be subject to approval by the Board
at the direction of the Board); and
‘‘(F) take such other action as the Board
determines appropriate.
‘‘(4) AUTHORITY
TO
LIMIT
ACTIVITIES.—The
authority to issue an order under this subsection or
subsection (b) includes the authority to place limita-
tions on the activities or functions of a Bank or any
Bank-affiliated party.
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‘‘(5) EFFECTIVE
DATE.—A cease-and-desist
order shall become effective at the expiration of 30
days after the service of such order upon the Bank
or Bank-affiliated party concerned (except in the
case of a cease-and-desist order issued upon consent,
which shall become effective at the time specified
therein), and shall remain, effective and enforceable
as provided therein, except to such extent as it is
stayed, modified, terminated, or set aside by action
of the Board or reviewing court.
‘‘(6) STANDARD
FOR
CERTAIN
ORDERS.—No
authority under this subsection or subsection (b) to
prohibit any Bank-affiliated party from withdrawing,
transferring, removing, dissipating, or disposing of
any funds, assets, or other property may be exer-
cised unless the Board meets the standards of Rule
65 of the Federal rules of Civil Procedure, without
regard to the requirement of such rule that the ap-
plicant show that the injury, loss or damage is irrep-
arable and immediate.
‘‘(b) TEMPORARY CEASE-AND-DESIST ORDERS.—
‘‘(1) GROUNDS FOR ISSUANCE; SCOPE.—When-
ever the Board determines that any violation, threat-
ened violation, or unsafe or unsound practice, speci-
fied in the notice of charges served upon the Federal
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Home Loan Bank or Bank-affiliated party under
subsection (a)(1), or the continuation thereof, is
likely—
‘‘(A) to cause insolvency or significant dis-
sipation of assets or earnings of the Bank, or
‘‘(B) to weaken the condition of the Bank
prior to the completion of the proceedings con-
ducted under subsection (a)(2),
the Board may issue a temporary order requiring
the Bank, or any Bank-affiliated party, to cease and
desist from any such violation or practice and to
take affirmative action to prevent or remedy such in-
solvency, dissipation, or condition pending comple-
tion of such proceedings. Such order may include
any requirement authorized under subsection (a)(3).
‘‘(2) EFFECTIVE DATE.—An order issued under
paragraph (1) shall become effective upon service
upon the Federal Home Loan Bank or Bank-affili-
ated party and, unless set aside, limited, or sus-
pended by a court in proceedings authorized by
paragraph (4), shall remain effective and enforceable
pending the completion of the administrative pro-
ceedings pursuant to such notice and shall remain
effective until such time as the Board dismisses the
charges specified in such notice or until superseded
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by a cease-and-desist order issued under subsection
(a).
‘‘(3) INCOMPLETE OR INACCURATE RECORDS.—
‘‘(A) TEMPORARY ORDER.—If a notice of
charges served under subsection (a)(1) specifies
that, on the basis of particular facts and cir-
cumstances, the Bank’s books and records are
so incomplete or inaccurate that the Board is
unable, through the normal supervisory process,
to determine the financial condition of that
Bank or the details or the purpose of any trans-
action or transactions that may have a material
effect on the financial condition of that Bank,
the Board may issue a temporary order requir-
ing—
‘‘(i) the cessation of any activity or
practice which gave rise, whether in whole
or in part, to the incomplete or inaccurate
state of the books or records; or
‘‘(ii) affirmative action to restore such
books or records to a complete and accu-
rate state, until the completion of the pro-
ceedings under subsection (a).
‘‘(B) EFFECTIVE PERIOD.—Any temporary
order issued under subparagraph (A)—
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‘‘(i) shall become effective upon serv-
ice; and
‘‘(ii) unless set aside, limited, or sus-
pended by a court in proceedings under
paragraph (4), shall remain in effect and
enforceable until the earlier of—
‘‘(I) the completion of the pro-
ceeding initiated under subsection (a)
in connection with the notice of
charges; or
‘‘(II) the date the Board deter-
mines, by examination or otherwise,
that the Federal Home Loan Bank’s
books and records are accurate and
reflect the financial condition of the
Bank.
‘‘(4) JUDICIAL REVIEW.—Within 10 days after
the Federal Home Loan Bank or Bank-affiliated
party has been served with a temporary cease-and-
desist order, the Bank or Bank-affiliated party may
apply to the United States district court for the ju-
dicial district in which the Bank is located, or the
United States District Court for the District of Co-
lumbia, for an injunction setting aside, limiting, or
suspending the enforcement, operation, or effective-
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ness of such order pending the completion of the ad-
ministrative proceedings pursuant to the notice of
charges served upon the Bank or Bank-affiliated
party under subsection (a)(1), and such court shall
have jurisdiction to issue such injunction.
‘‘(5) ENFORCEMENT.—In the case of a violation
or threatened violation of, or failure to obey, a tem-
porary order issued under, the Board may apply to
the United States district court for the judicial dis-
trict in which the Federal Home Loan Bank is lo-
cated, or the United States District Court for the
District of Columbia for an injunction to enforce
such order, and, if the court finds any such viola-
tion, threatened violation, or failure to obey, it shall
issue such injunction.
‘‘(c) REMOVAL AND PROHIBITION AUTHORITY.—
‘‘(1) AUTHORITY TO ISSUE ORDER.—The Board
may serve upon any Bank-affiliated party a written
notice of the Board’s intention to remove such party
from office or to prohibit any further participation
by such party in any manner, in the conduct of the
affairs of the Bank whenever the Board determines
that—
‘‘(A) such party has directly or indi-
rectly—
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‘‘(i) violated—
‘‘(I) any law or regulation;
‘‘(II) any cease-and-desist order
which has become final;
‘‘(III) any condition imposed in
writing by the Board in connection
with the grant of any application or
other request by the Bank; or
‘‘(IV) any written agreement be-
tween the Bank and the Board;
‘‘(ii) engaged or participated in any
unsafe or unsound practice in connection
with the Bank; or
‘‘(iii) committed or engaged in any
act, omission, or practice which constitutes
a breach of such party’s fiduciary duty;
‘‘(B) by reason of the violation, practice, or
breach described in any clause of subparagraph
(A)—
‘‘(i) the Bank has suffered or will
probably suffer financial loss or other dam-
age; or
‘‘(ii) such party has received financial
gain or other benefit by reason of such vio-
lation, practice, or breach; and
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‘‘(C) such violation, practice, or breach—
‘‘(i) involves personal dishonesty on
the part of such party; or
‘‘(ii) demonstrates willful or continu-
ing disregard by such party for the safety
or soundness of the Bank.
‘‘(2) SUSPENSION ORDER.—
‘‘(A) SUSPENSION
OR
PROHIBITION
AU-
THORIZED.—If the Board serves written notice
under paragraph (1) to any Bank affiliated-
party, the Board may suspend such party from
office or prohibit such party from further par-
ticipation in any manner in the conduct of the
affairs of the Federal Home Loan Bank, if the
Board—
‘‘(i) determines that such action is
necessary for the protection of the Bank;
and
‘‘(ii) serves upon such party written
notice of the suspension order.
‘‘(B) EFFECTIVE
PERIOD.—Any suspen-
sion order issued under subparagraph (A)—
‘‘(i) shall become effective upon serv-
ice; and
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‘‘(ii) unless a court issues a stay of
such order under paragraph (7), shall re-
main in effect and enforceable until—
‘‘(I) the date the Board dismisses
the charges contained in the notice
served under paragraph (1) with re-
spect to such party; or
‘‘(II) the effective date of an
order issued by the Board to such
party under paragraph (1).
‘‘(C) COPY OF ORDER.—If the Board is-
sues a suspension order under subparagraph
(A) to any Bank-affiliated party, the Board
shall serve a copy of such order on any Federal
Home Loan Bank with which such party is as-
sociated at the time such order is issued.
‘‘(3) PROCEDURE.—
‘‘(A) NOTICE.—A notice of intention to re-
move a Bank-affiliated party from office or to
prohibit such party from participating in the
conduct of the affairs of a Federal Home Loan
Bank shall contain a statement of the facts con-
stituting grounds therefor, and shall fix a time
and place at which a hearing will be held there-
on.
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‘‘(B) DATE
OF
HEARING.—Such hearing
shall be fixed for a date not earlier than 30
days nor later than 60 days after the date of
service of such notice, unless an earlier or a
later date is set by the Board at the request of
such party and for good cause shown or by the
Attorney General of United States.
‘‘(C) FAILURE TO APPEAR DEEMED CON-
SENT.—Unless such party appears at the hear-
ing in person or by a duly authorized represent-
ative, such party shall be deemed to have con-
sented to the issuance of an order of such re-
moval or prohibition.
‘‘(D) ISSUANCE OF ORDER.—In the event
of such consent, or if upon the record made at
any such hearing, the Board finds that any of
the grounds specified in such notice have been
established, the Board may issue such orders of
suspension or removal from office, or prohibi-
tion from participation in the conduct of the af-
fairs of the Federal Home Loan Bank, as the
Board may deem appropriate.
‘‘(4) EFFECTIVE DATE.—Any such order shall
become effective at the expiration of 30 days after
service upon the Federal Home Loan Bank and
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Bank-affiliated party (except in the case of an order
issued upon consent, which shall become effective at
the time specified therein). Such order shall remain
effective and enforceable except to such extent as it
is stayed, modified, terminated, or set aside by ac-
tion of the Board or a reviewing court.
‘‘(5) PROHIBITION OF CERTAIN SPECIFIC AC-
TIVITIES.—Any person subject to an order issued
under this subsection shall not—
‘‘(A) participate in any manner in the con-
duct of the affairs of any institution or agency
specified in paragraph (6)(A);
‘‘(B) solicit, procure, transfer, attempt to
transfer, vote, or attempt to vote any proxy,
consent, or authorization with respect to any
voting rights in any institution described in
subparagraph (A);
‘‘(C) violate any voting agreement pre-
viously approved by the Board; or
‘‘(D) vote for a director, or serve or act as
a Bank-affiliated party.
‘‘(6) INDUSTRYWIDE PROHIBITION.—
‘‘(A) IN GENERAL.—Except as provided in
paragraph (3), any person who, pursuant to an
order issued under this subsection, has been re-
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moved or suspended from office in a Federal
Home Loan Bank or prohibited from participat-
ing in the conduct of the affairs of a Federal
Home Loan Bank may not, while such order is
in effect, continue or commence to hold any of-
fice in, or participate in any manner in the con-
duct of the affairs of—
‘‘(i) any insured depository institution
as defined in section 3(c)(2) of the Federal
Deposit 
Insurance 
Act 
(12 
U.S.C.
1813(c)(2));
‘‘(ii) any institution treated as an in-
sured bank under section 8(b)(3) or
8(b)(4) of the Federal Deposit Insurance
Act (12 U.S.C. 1818(b)(3), (b)(4)), or as
a savings association under section 8(b)(8)
of the Federal Deposit Insurance Act (12
U.S.C. 1818(b)(8));
‘‘(iii) any insured credit union as de-
fined in section 101(7) of the Federal
Credit Union Act (12 U.S.C. 1752);
‘‘(iv) any institution chartered under
the Farm Credit Act of 1971;
‘‘(v) the Board any Federal Home
Loan Bank;
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‘‘(vi) the Federal National Mortgage
Association;
‘‘(vii) the Federal Home Loan Mort-
gage Corporation;
‘‘(viii) the Student Loan Marketing
Association;
‘‘(ix) the Government National Mort-
gage Association; and
‘‘(x) any appropriate Federal deposi-
tory institutions regulatory agency as de-
fined in section 3(q) of the Federal De-
posit Insurance Act.
‘‘(B) EXCEPTION
IF
AGENCY
PROVIDES
WRITTEN CONSENT.—If, on or after the date an
order is issued under this subsection which re-
moves or suspends from office any Bank-affili-
ated party or prohibits such party from partici-
pating in the conduct of the affairs of a Federal
Home Loan Bank, such party receives the writ-
ten consent of—
‘‘(i) the Federal Housing Finance
Board, and
‘‘(ii) the appropriate Federal financial
institutions regulatory agency of the insti-
tution described in paragraph (6)(A) in
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which such party proposes to hold office or
in the conduct of whose affairs such party
proposes to participate,
subparagraph (A) shall, to the extent of such
consent, cease to apply to such party with re-
spect to the institution described in such writ-
ten consent. Any agency that grants such a
written consent shall report such action to the
Board and publicly disclose such consent.
‘‘(C) VIOLATION OF PARAGRAPH TREATED
AS
VIOLATION
OF
ORDER.—Any violation of
subparagraph (A) by any person who is subject
to an order described in such subparagraph
shall be treated as a violation of the order.
‘‘(D) APPROPRIATE
FEDERAL
FINANCIAL
INSTITUTIONS
REGULATORY
AGENCY
DE-
FINED.—For purposes of this paragraph, the
term ‘appropriate Federal financial institutions
regulatory agency’ means—
‘‘(i) the Secretary of Housing and
Urban Development and the Office of Fed-
eral Housing Enterprise Oversight, in the
case of the Federal National Mortgage As-
sociation and the Federal Home Loan
Mortgage Corporation;
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‘‘(ii) the Secretary of Housing and
Urban Development, in the case of the
Government National Mortgage Associa-
tion;
‘‘(iii) the appropriate Federal banking
agency as defined in section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C.
1813(q)), in the case of an insured deposi-
tory institution;
‘‘(iv) the Secretary of the Treasury, in
the case of the Student Loan Marketing
Association;
‘‘(v) the Farm Credit Administration,
in the case of an institution chartered
under the Farm Credit Act of 1971; and
‘‘(vi) the National Credit Union Ad-
ministration Board, in the case of an in-
sured credit union (as defined in section
101(7) of the Federal Credit Union Act
(12 U.S.C. 1752(7)).
‘‘(E) CONSULTATION
BETWEEN
AGEN-
CIES.—The agencies described in subparagraph
(B) shall consult with each other before provid-
ing any written consent authorized by subpara-
graph (B).
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‘‘(F) 
APPLICABILITY.—This 
paragraph
shall only apply to a person which is an individ-
ual, unless the Board specifically finds that it
should apply to a corporation, firm, or other
business enterprise.
‘‘(7) STAY OF SUSPENSION OR PROHIBITION.—
Within ten days after any Bank-affiliated party has
been suspended from office or prohibited from par-
ticipation in the conduct of the affairs of a Federal
Home Loan Bank under paragraph (2), such party
may apply to the United States district court for the
judicial district in which the Federal Home Loan
Bank is located, or the United States District Court
for the District of Columbia, for a stay of such sus-
pension or prohibition pending the completion of the
administrative proceedings pursuant to the notice
served upon such director or executive officer, under
paragraph (1), and such court shall have jurisdiction
to stay such suspension or prohibition.
‘‘(d) SUSPENSION
OR
REMOVAL
OF
PARTIES
CHARGED WITH FELONY.—
‘‘(1) SUSPENSION.—Whenever any Bank-affili-
ated party is charged in any information, indict-
ment, or complaint with the commission of, or par-
ticipation in—
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‘‘(A) a crime involving dishonesty or
breach of trust which is punishable by impris-
onment for a term exceeding one year under
State or Federal law; or
‘‘(B) a criminal violation of section 1956,
1957 or 1960 of title 18, United States Code,
or section 5322 of title 31, United States Code,
the Board may, if continued service or participation
by such party may threaten to impair public con-
fidence in the Federal Home Loan Bank, by written
notice served upon such party, suspend such party
from office or prohibit such party from further par-
ticipation in any manner in the conduct of the af-
fairs of the Bank.
‘‘(2) PROVISIONS APPLICABLE TO NOTICE.—
‘‘(A) COPY.—A copy of such notice shall
also be served upon the Bank.
‘‘(B) EFFECTIVE
PERIOD.—A suspension
or prohibition under paragraph (1) shall remain
in effect until the information, indictment, or
complaint is finally disposed of or until termi-
nated by the Board.
‘‘(3) REMOVAL.—
‘‘(A) IN GENERAL.—If a judgment of con-
viction or an agreement to enter a pre-trial di-
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version or other similar program is entered
against a Bank-affiliated party, in connection
with a crime described in paragraph (1)(A),
and at such time as such judgment is not sub-
ject to further appellate review, the Board may,
if continued service or participation by such
party may threaten to impair public confidence
in the Federal Home Loan Bank, issue and
serve upon such party an order removing such
party from office or prohibiting such party from
further participation in any manner in the con-
duct of the affairs of the Bank without the
prior written consent of the Board.
‘‘(B) REMOVAL REQUIRED.—In the case of
a judgment or conviction or agreement against
a Bank-affiliated party in connection with a vio-
lation described in paragraph (1)(B), the Board
shall issue and serve upon such party an order
removing such party from office or prohibiting
such party from further participation in any
manner in the conduct of the affairs of the
Bank without the prior written consent of the
Board.
‘‘(4) PROVISIONS APPLICABLE TO ORDER.—
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‘‘(A) COPY.—A copy of any order under
paragraph (3) shall also be served upon the
Federal Home Loan Bank, whereupon the
Bank-affiliated party who is subject to the
order (if a director or an officer) shall cease to
be a director or officer of the Bank.
‘‘(B) DISCRETIONARY REMOVAL NOT PRE-
CLUDED.—A finding of not guilty or other dis-
position of the charge shall not preclude the
Board from instituting proceedings to remove
such party from office or to prohibit further
participation in the affairs of the Bank pursu-
ant to subsection (e)(1) or (e)(3).
‘‘(C) EFFECTIVE
DATE.—Any notice of
suspension or order of removal issued under
this subsection shall remain effective until the
completion of any hearing or appeal authorized
under paragraph (5), unless earlier terminated
by the Board.
‘‘(5) VACANCIES
ON
THE
BOARD
OF
DIREC-
TORS.—
‘‘(A) QUORUM.—If, at any time, because
of the suspension of one or more directors pur-
suant to this section, there shall be on the
board of directors of a Federal Home Loan
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Bank less than a quorum, all powers and func-
tions vested in, or exercisable by, such board
shall vest in and be exercisable by the remain-
ing director or directors, until such time as
there shall be a quorum of the board of direc-
tors.
‘‘(B) ALL DIRECTORS SUSPENDED.—In the
event all of the directors of the Bank are sus-
pended pursuant to this section, the Board shall
appoint temporary directors pending the termi-
nation of such suspensions or until such time as
the terms of the suspended directors expire and
their successors take office.
‘‘(6) HEARING.—
‘‘(A) REQUEST FOR HEARING.—Within 30
days from service of any notice of suspension or
order of removal issued pursuant to paragraph
(1), the Bank-affiliated party concerned may
request in writing an opportunity to appear be-
fore the Board to show that the continued serv-
ice to or participation in the conduct of the af-
fairs of the Federal Home Loan Bank by such
party does not, or is not likely to, threaten to
impair public confidence in the Bank.
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to the jurisdiction of the United States at any des-
ignated place where such proceeding is being con-
ducted.
‘‘(3) ENFORCEMENT.—The Board or any party
to proceedings under this section may apply to the
United States District Court for the District of Co-
lumbia, or the United States district court for the
judicial district or the United States court in any
territory in which such proceeding is being con-
ducted, or where the witness resides or carries on
business, for enforcement of any subpoena or sub-
poena duces tecum issued pursuant to this sub-
section, and such courts shall have jurisdiction and
power to order and require compliance therewith.
‘‘(4) FEES AND EXPENSES.—
‘‘(A) 
WITNESS.—Witnesses 
subpoenaed
under this subsection shall be paid the same
fees and mileage that are paid witnesses in the
district courts of the United States.
‘‘(B) EXPENSES AND ATTORNEY’S FEES.—
Any court having jurisdiction of any proceeding
instituted under this section by a Federal Home
Loan Bank or a director or officer thereof, may
allow to any such party such reasonable ex-
penses and attorneys’ fees as it deems just and
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tiated by the Board under this section or any
other provision of law; and
‘‘(C) any modification to or termination of
any final order or agreement made public pur-
suant to this paragraph.
‘‘(2) HEARINGS.—All hearings on the record
with respect to any notice of charges issued by the
Board shall be open to the public, unless the Board,
in its discretion, determines that holding an open
hearing would be contrary to the public interest.
‘‘(3) REPORTS TO CONGRESS.—A written report
shall be made part of a determination not to hold a
public hearing pursuant to paragraph (2) or not to
publish a document pursuant to paragraph (1)(A).
All reports prepared under this paragraph, shall be
available to Congress on request.
‘‘(4) TRANSCRIPTS
OF
HEARINGS.—A tran-
script of public hearings shall be made available to
the public pursuant to section 552 of title 5, United
States Code.
‘‘(5) DELAY OF PUBLICATION UNDER EXCEP-
TIONAL CIRCUMSTANCES.—If the Board makes a de-
termination in writing that the publication of any
final order pursuant to paragraph (1)(B) would seri-
ously threaten the safety or soundness of the Fed-