12 USC 1436 - Reserves and dividends; emergency suspensions of requirements

U.S Code last checked for updates: Nov 22, 2024

§ 1436.

Reserves and dividends; emergency suspensions of requirements

(a)

Accumulation and maintenance of reserves; payment of dividends

(b)

Assistance to member institutions in event of severe financial conditions

(c)

Exception in case of losses in connection with Financing Corporation stock

(1)

In general

Notwithstanding subsection (a) of this section, if—

(A)

a Federal Home Loan Bank incurs a chargeoff or an expense in connection with such bank’s investment in the stock of the Financing Corporation under section 1441 of this title;

(B)

the Director determines there is an extraordinary need for the member institutions of the bank to receive dividends; and

(C)

the bank has reduced all reserves (other than the reserve account required by the first 2 sentences of subsection (a)) to zero,

the Director may authorize such bank to declare and pay dividends out of undivided profits (as such term is defined in section 1441(d)(7) of this title) or the reserve account required by the first 2 sentences of subsection (a).

(2)

Requirements of section 1441 of this title not affected

(July 22, 1932, ch. 522, § 16, 47 Stat. 736; Aug. 2, 1954, ch. 649, title II, § 204(a), 68 Stat. 622; Pub. L. 88–560, title VII, § 701(d)(2), Sept. 2, 1964, 78 Stat. 800; Pub. L. 90–448, title VIII, § 807(l), Aug. 1, 1968, 82 Stat. 545; Pub. L. 93–383, title VIII, § 805(c)(3), Aug. 22, 1974, 88 Stat. 727; Pub. L. 97–320, title I, § 124, Oct. 15, 1982, 96 Stat. 1485; Pub. L. 100–86, title III, § 306(a), Aug. 10, 1987, 101 Stat. 600; Pub. L. 101–73, title VII, §§ 701(b)(1), (3)(A), 724(a), Aug. 9, 1989, 103 Stat. 412, 428; Pub. L. 106–102, title VI, § 606(g), Nov. 12, 1999, 113 Stat. 1455; Pub. L. 110–289, div. A, title II, § 1204(8), July 30, 2008, 122 Stat. 2786.)

cite as: 12 USC 1436