Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: FUNDING
CORPORATION.

(a) Funding of Interest Payments by the Resolution Funding
Corporation.--Subsection 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:
''(C) Payments by federal home loan banks.--
''(i) In general.--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 $300,000,000.
''(ii) Individual bank share.--Each Federal
home loan bank's share of the amount required
to be paid under clause (i) for any year shall
be determined by dividing--
''(I) the daily average minimum
level of tangible capital which such
bank was required to maintain in order
to comply with the bank's minimum
capital requirement for the adequately
capitalized category established
pursuant to section 28(b)(2); by
''(II) the sum of the daily average
minimum levels of tangible capital
which all the banks were required to
maintain in order to comply with each
such bank's minimum capital requirement
for the adequately capitalized
category.''
(b) Bank Contributions to the Bank's Affordable Housing Program.--
''(1) 1995.--Subsection 10(j)(5)(C) of the Federal Home
Loan Bank Act (12 U.S.C. 1430(j)(5)(C)) is amended to read as
follows:
''(C) In 1995, the greater of--
''(i) 10 percent of the net income of the
bank in the preceding year; or
''(ii) such prorated sum as the Finance
Board may determine to be necessary to assure
that the aggregate contribution of all the
Federal home loan banks shall not be less than
$100,000,000 for 1995.''
(c) 1996 and Subsequent Years.--Subsection 10(j)(5) of the Federal
Home Loan Bank Act (12 U.S.C. 1430(j)(5)) is amended by adding at the
end the following new subparagraph:
''(D) In 1996 and subsequent years, 10 percent of
the net income of the bank in the preceding year, as
determined after deducting the payment made by each
Federal home loan bank to the Funding Corporation under
section 21B(f)(2)(C).''.

SEC. 9. COMMUNITY SUPPORT REQUIREMENTS.

Subsection (g) of section 10 of the Federal Home Loan Bank Act (12
U.S.C. 1430(g)) is amended by adding at the end the following new
paragraph:
''(3) Safe harbor for member's receiving cra ratings of
satisfactory or better.--Notwithstanding paragraphs (1) and
(2), any member which receives a rating of satisfactory or
outstanding pursuant to section 807 of the Community
Reinvestment Act of 1977 in such member's most recent
examination shall be treated as having satisfied the
requirements of such paragraphs.''.

SEC. 10. TECHNICAL AND CONFORMING AMENDMENTS.

(a) Section 9.--Section 9 of the Federal Home Loan Bank Act (12
U.S.C. 1429) is amended--
(1) in the 2d sentence, by striking ''with the approval of
the Board''; and
(2) in the 3d sentence, by striking '', subject to the
approval of the Board,''.
(b) Section 10.--
(1) Subsection (a) of section 10 of the Federal Home Loan
Bank Act (12 U.S.C. 1430(a)) is amended--
(A) in the 1st sentence before paragraph (1), by
striking ''or section 11(g) of this Act'';
(B) in the 2d sentence before paragraph (1), by
striking ''housing finance'' and inserting ''mortgage
assets'';
(C) in the 2d sentence of paragraph (5), by
striking ''and the Board''; and
(D) in the last sentence of paragraph (5), by
striking ''Board'' and inserting ''bank''.
(2) The last sentence of section 10(b) of the Federal Home
Loan Bank Act (12 U.S.C. 1430(b)) is amended by striking
''Board'' and inserting ''bank''.
(3) Section 10(c) of the Federal Home Loan Bank Act (12
U.S.C. 1430(c) is amended--
(A) in the 1st sentence, by striking ''Board'' and
inserting ''bank''; and
(B) by striking the 2d sentence.
(4) The last sentence of section 10(d) of the Federal Home
Loan Bank Act (12 U.S.C. 1430(d)) is amended by striking
''Subject to the approval of the Board, any'' and inserting
''Any''.
(5) Section 10 of the Federal Home Loan Bank Act (12 U.S.C.
1430) is amended by striking the 1st of the 2 subsections
designated as subsection (e).
(c) Section 10b.--Subsection (a) of section 10b of the Federal Home
Loan Bank Act (12 U.S.C. 1430b) is amended--
(1) by striking ''Board'' and inserting ''bank''; and
(2) by inserting ''home'' before ''mortgage loan''.
(d) Section 11.--
(1) Subsection (a) of section 11 of the Federal Home Loan
Bank Act (12 U.S.C. 1431(a)) is amended--
(A) by striking ''(a) Each Federal Home Loan Bank''
and inserting ''(a) Borrowing Authority.--
''(1) In general.--Each Federal home loan bank'';
(B) by striking '', subject to rules and
regulations prescribed by the Board'';
(C) by striking ''Board'' and inserting ''board of
directors of the bank''; and
(D) by adding at the end the following new
paragraph:
''(2) Borrowing through the office of finance corporation
only.--Notwithstanding paragraph (1), all notes, bonds, and
debentures issued by any Federal home loan bank shall be issued
through the Office of Finance Corporation.''
(2) Subsection (b) of section 11 of the Federal Home Loan
Bank Act (12 U.S.C. 1431(b)) is amended to read as follows:
''(b) Issuance of Federal Home Loan Bank Bonds.--
''(1) In general.--Effective as of the date the Finance
Board transfers the functions of the Office of Finance to the
Office of Finance Corporation pursuant to section 4(a)(3), the
Office of Finance Corporation may issue consolidated Federal
home loan bank bonds and other consolidated obligations on
behalf of the banks.
''(2) Joint and several obligation; terms and conditions.--
Consolidated obligations issued by the Office of Finance
Corporation under paragraph (1) shall--
''(A) be the joint and several obligations of all
the Federal home loan banks; and
''(B) shall be issued upon such terms and
conditions as shall be established by the Office of
Finance Corporation.''.
(3) Section 11 of the Federal Home Loan Bank Act (12 U.S.C.
1431) is amended by striking subsections (c) and (d) and by
redesignating subsections (e), (f), (g), (h), (i), (j) and (k)
as subsections (c), (d), (e), (f), (g), (h) and (i),
respectively.
(4) Subsection (d) of section 11 of the Federal Home Loan
Bank Act (as so redesignated by paragraph (3)) is amended to
read as follows:
''(d) Rediscount of Notes Held by Other Banks; Purchase of Bonds of
Other Banks.--The Federal home loan banks may--
''(1) rediscount the discounted notes of members held by
other Federal home loan banks;
''(2) make loans to, or make deposits with, other Federal
home loan banks; or
''(3) purchase any bonds or debentures issued under this
section.''.
(e) Repeal of Sections 2A and 2B.--The Federal Home Loan Bank Act
(12 U.S.C. 1421 et seq.) is amended by striking sections 2A and 2B.

SEC. 11. INCORPORATION OF BANKS; CORPORATE POWERS.

Section 12 of the Federal Home Loan Bank Act is amended to read as
follows:

''SEC. 12. INCORPORATION OF BANKS; CORPORATE POWERS.

''(a) Organizational Certificates.--
''(1) Custodianship.--The Finance Board shall be the
custodian of the organizational certificates of the Federal
home loan banks previously filed with the Federal Home Loan
Bank Board (as in existence before the end of the 60-day period
beginning on the date of the enactment of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989) or
the Finance Board.
''(2) Replacement of lost or destroyed certificate.--If the
organizational certificate of a Federal home loan bank is lost
or destroyed, the board of directors of the bank shall provide
the Finance Board with a substitute certificate containing such
information as the Finance Board may require.
''(3) Amendment in case of merger, combination, or
consolidation.--If 2 or more Federal home loan banks merge,
combine, or otherwise consolidate, the resulting bank shall
provide the Finance Board with an amended organizational
certificate containing such information as the Finance Board
may require.
''(b) Corporate Status.--Each Federal home loan bank shall be a
corporation.
''(c) Powers.--Each Federal home loan bank shall have the following
powers:
''(1) To adopt, alter, and use a corporate seal.
''(2) To make contracts.
''(3) To purchase or lease and hold or dispose of such real
estate as may be necessary or convenient for the transaction of
the business of the bank.
''(4) To sue and be sued, to complain, and to defend, in
any court of competent jurisdiction.
''(5) To select, employ, and fix the compensation of such
officers, employees, attorneys, and agents as the board of
directors determines to be necessary for the transaction of the
business of the bank.
''(6) To define the duties of, and require bonds of,
officers, employees, attorneys, and agents of the bank and fix
the penalties of any such bonds.
''(7) To dismiss at pleasure officers, employees,
attorneys, and agents of the bank.
''(8) By the board of directors, to prescribe, amend, and
repeal bylaws and policies governing the manner in which the
affairs of the bank may be administered.
''(9) Such incidental powers as are not inconsistent with
the provisions of this Act and are customary and usual in
corporations generally.
''(d) Prohibition on Excessive Compensation.--
''(1) In general.--The Finance Board shall prohibit the
Federal home loan banks from providing compensation to any
employee of the bank that is not reasonable and comparable with
compensation for employment in other similar businesses
(including other financial institutions or major financial
services companies) involving similar duties and
responsibilities.
''(2) Limitation on Finance Board's Authority to Set
Compensation.--In carrying out paragraph (1), the Finance Board
may not prescribe or set a specific level or range of
compensation.''.

SEC. 12. LIQUIDATION OR REORGANIZATION.

Section 25 of the Federal Home Loan Bank Act (12 U.S.C. 1445) is
amended by striking ''the Board under this Act'' and inserting
''operation of law''.

SEC. 13. DEFINITIONS.

(a) Finance Board Defined.--Paragraph (1) of section 2 of the
Federal Home Loan Bank Act (12 U.S.C. 1422(1)) is amended to read as
follows:
''(1) Finance board.--The term 'Finance Board' means the
Federal Housing Finance Board established under section 3.''
''(b) Home Mortgage Loan Defined.--Section 2 of the Federal Home
Loan Bank Act (12 U.S.C. 1422) is amended by striking paragraphs (5)
and (6) and inserting the following new paragraph:
''(5) Home mortgage loan.--
''(A) In general.--The term 'home mortgage loan'
means a loan made by a member or a nonmember borrower
upon the security of--
''(i) a mortgage, deed of trust or other
security arrangement upon qualified real
estate, in fee simple; or
''(ii) on a qualified leasehold--
''(I) under a lease which has a
period to maturity of not less than 99
years and is renewable; or
''(II) under a lease having a
period of not less than 50 years to run
from the date the mortgage, deed of
trust, or other security arrangement
was executed.
''(B) Certain loans included.--The term 'home
mortgage loan' includes--
''(i) such classes of first liens as are
commonly given to secure advances on real
estate, under the laws of the State in which
the real estate is located, by institutions
authorized under this Act to become members of
a Federal home loan bank; and
''(ii) the credit instruments, if any,
secured by such liens.
''(C) Qualified real estate; qualified leasehold.--
The terms 'qualified real estate' and 'qualified
leasehold' mean real estate upon which is located, or
which comprises or includes, 1 or more homes or other
dwelling units.
''(D) Definition of further terms.--The Finance
Board may define any term used in this paragraph.''.
(c) Residential Mortgage Assets Defined.--Section 2 of the Federal
Home Loan Bank Act (12 U.S.C. 1422) is amended--
(1) by redesignating paragraphs (7), (8), (9), (10), (11),
and (12) as paragraphs (6), (7), (8), (9), (10), (11),
respectively; and
(2) by adding at the end the following new paragraph:
''(12) Residential mortgage assets.--The term 'residential
mortgage asset'--
''(A) means a home mortgage, deed of trust, or
other security arrangement upon real estate that is
solely residential; and
''(B) includes any mortgage pass-through security
or mortgage debt security representing an interest in,
or which is collateralized by, a home mortgage loan.''
(d) Regulated Financial Institution Defined.--Section 2 of the
Federal Home Loan Bank Act (12 U.S.C. 1422) is amended by adding after
paragraph (12) (as added by subsection (c) of this section) the
following new paragraph:
''(13) Regulated financial institution.--The term
'regulated financial institution' means--
''(A) any insured depository institution; and
''(B) any building and loan association, saving and
loan association, cooperative bank, homestead
association, or savings bank which is duly organized
under the laws of any state or of the United States.''.
(e) Capital Distribution Defined.--Section 2 of the Federal Home
Loan Bank Act (12 U.S.C. 1422) is amended by adding after paragraph
(13) (as added by subsection (d) of this section) the following new
paragraph:
''(14) Capital distribution.--The term 'capital
distribution' means--
''(A) any dividend or other distribution in cash or
other property made with respect to any shares of, or
other ownership interest in, a Federal home loan bank,
other than a dividend consisting only of shares of any
such bank;
''(B) any payment in cash or other property made by
a Federal home loan bank to repurchase, redeem, retire,
or otherwise acquire any of the shares of the bank,
including any extension of credit made to finance an
acquisition by a bank of such shares; and
''(C) any transaction that the Finance Board
determines by regulation to be, in substance, a
distribution of capital of a Federal home loan bank.''.

SEC. 14. EFFECTIVE DATE.

Except as otherwise expressly provided in this Act, this Act and
the amendments made by this Act shall take effect on the first January
1 which occurs after the date of the enactment of this Act.

HR 1487 IH----2
HR 1487 IH----3
HR 1487 IH----4
HR 1487 IH----5
HR 1487 IH----6
Output:
Federal Home Loan Bank System Modernization Act of 1995 - Amends the Federal Home Loan Bank Act (FHLBA) to declare that the mission of the Federal Home Loan Bank System is to: (1) be a profit-making enterprise whose purpose is to support residential mortgage lending (including low- and moderate-income housing), and related community and economic development lending through a program of collateralized advances and other financial services; and (2) facilitate such lending by providing long-term credit and liquidity and other financial services to members of Federal home loan banks (FHLBs).
Establishes 12 regional FHLB districts. (Currently, the Federal Housing Finance Board (Board) is required to establish between eight and 12 such districts.) Prescribes guidelines for FHLB mergers.
Modifies from annual to periodic the congressional reporting requirements of the Board regarding the safety and soundness of the FHLB system. Alters the makeup of the Board to: (1) reduce its membership from five to three directors; and (2) repeal the statutory mandate that it consist of the Secretary of Housing and Urban Development and at least one consumer representative. States that two directors constitutes a quorum.
Establishes the Office of Finance Corporation (the Corporation) as a federally chartered instrumentality to issue FHLB bonds and debentures. Transfers to the Corporation the functions of the Office of Finance of the FHLBs. Vests Corporation management in a board of directors composed of elected representatives from each FHLB. Treats the Corporation as an FHLB for purposes of any law.
Revises the parameters for subscription and retirement of FHLB stock. Revises the procedure for termination of FHLB membership. Reduces from ten years to five years the period of time before a withdrawn member may resume membership.
Amends the Home Owners' Loan Act to repeal: (1) the proscription against granting cash advances to savings associations that have failed to acquire or maintain qualified thrift lender status; and (2) the requirement that such associations repay outstanding FHLB advances in a prompt and prudent manner.
Revises the FHLB membership guidelines to change membership status from mandatory to voluntary for each Federal savings association.
Amends the FHLBA to direct the Finance Board to establish a uniform capital requirement for FHLBs which takes into consideration interest rate risk, credit risk, and all other risks and obligations associated with bank operations. Prescribes bank capital guidelines. Revises the guidelines for: (1) bank management; (2) FHLB annual contributions to the Resolution Funding Corporation; and (3) FHLB contributions to the Affordable Housing Program.
Provides that any member which receives a rating of satisfactory or better in its most recent examination in connection with the Community Reinvestment Act of 1977 shall be treated as having satisfied specified statutory requirements.
Revises incorporation guidelines to: (1) declare the Finance Board custodian of FHLB organizational certificates; and (2) instruct the Finance Board to prohibit FHLBs from providing excessive compensation to employees.