Page:United States Statutes at Large Volume 101 Part 1.djvu/617

 PUBLIC LAW 100-86—AUG. 10, 1987

101 STAT. 587

"(1) To issue nonvoting capital stock to the Federal Home Loan Banks. "(2) To invest in any security issued by the Federal Savings and Loan Insurance Corporation under section 402(b) of the National Housing Act. "(3) To issue debentures, bonds, or other obligations and to borrow, to give security for any amount borrowed, and to pay interest on (and any redemption premium with respect to) any such obligation or amount. "(4) To impose assessments in accordance with subsection (f). "(5) To adopt, alter, and use a corporate seal. "(6) To have succession until dissolved. "(7) To enter into contracts. "(8) To sue and be sued in its corporate capacity, and to complain and defend in any action brought by or against the Financing Corporation in any State or Federal court of competent jurisdiction. "(9) To exercise such incidental powers not inconsistent with the provisions of this section or section 402(b) of the National Housing Act as are necessary or appropriate to carry out the provisions of this section. '(d) CAPITALIZATION OF FINANCING CORPORATION.— "(1) PURCHASE OF CAPITAL STOCK BY FEDERAL HOME LOAN BANKS.—

"(A) IN GENERAL.—Each Federal Home Loan Bank shall invest in nonvoting capital stock of the Financing Corporation at such times and in such amounts as the Board may prescribe under this subsection. "(B) PAR VALUE; TRANSFERABILITY.—Each share of stock issued by the Financing Corporation to a Federal Home Loan Bank shall have par value in an amount determined by the Board and shall be transferable only among the Federal Home Loan Banks in the manner and to the extent prescribed by the Board at not less than par value. "(2) AGGREGATE DOLLAR AMOUNT LIMITATION ON ALL INVEST-

MENTS.—The aggregate amount of funds invested by all Federal Home Loan Banks in nonvoting capital stock of the Financing Corporation shall not exceed $3,000,000,000. "(3) MAXIMUM INVESTMENT AMOUNT LIMITATION FOR EACH FEDERAL HOME LOAN BANK.—The cumulative amount of funds in-

vested in nonvoting capital stock of the Financing Corporation by each Federal Home Loan Bank shall not exceed the aggregate amount of— "(A) the sum of— "(i) the reserves maintained by such bank on December 31, 1985, pursuant to the requirement contained in the first 2 sentences of section 16; and "(ii) the undivided profits (as defined in paragraph (7)) of such bank on such date; and "(B) the sum of— "(i) the amounts added to reserves after December 31, 1985, pursuant to the requirement contained in the first 2 sentences of section 16; and "(ii) the undivided profits of such bank accruing after such date. "(4) PRO RATA DISTRIBUTION OF IST $1,000,000,000 INVESTED IN FINANCING CORPORATION BY HOME LOAN BANKS.—With respcct to

Post, p. 597.

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