Page:United States Statutes at Large Volume 103 Part 1.djvu/441

 PUBLIC LAW 101-73—AUG. 9, 1989 103 STAT. 413 SEC. 702. FEDERAL HOUSING FINANCE BOARD ESTABLISHED. (a) IN GENERAL.— The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended by inserting after section 2 the following new sections: "SEC. 2A. FEDERAL HOUSING FINANCE BOARD. ^^"- ?f^ 12 USC 1422a. "(a) ESTABLISHMENT.— "(1) IN GENERAL. — There is established the Federal Housing Finance Board, which shall succeed to the authority of the Federal Home Loan Bank Board with respect to the Federal Home Loan Banks. "(2) STATUS.—The Board shall be an independent agency in the executive branch of the Government. "(3) DUTIES.— The duties of the Board shall be— "(A) to supervise the Federal Home Loan Banks, "(B) to ensure that the Federal Home Loan Banks carry out their housing finance mission, "(C) to ensure the Federal Home Loan Banks remain adequately capitalized and able to raise funds in the capital markets, and 4 "(D) to ensure the Federal Home Loan Banks operate in a safe and sound manner. "(b) MANAGEMENT.— "(1) IN GENERAL.—The management of the Board shall be vested in a Board of Directors consisting of 5 directors as follows: "(A) The Secretary who shall serve without additional compensation. "(B) Four citizens of the United States, appointed by the President, by and with the advice and consent of the Senate, each of whom shall hold office for a term of 7 years. "(2) PROVISIONS RELATING TO APPOINTED DIRECTORS.— "(A) IN GENERAL. — The directors appointed pursuant to paragraph (I)(B) shall be from among persons with exten- sive experience or training in housing tinance or with a commitment to providing specialized housing credit. An appointed director shall not hold any other appointed office during his or her term as director. Not more than 3 direc- tors shall be members of the same political party. Not more than 1 appointed director shall be from any single district of the Federal Home Loan Bank System. Nominations pursuant to this subparagraph shall be referred in the Senate to the Committee on Banking, Housing, and Urban Affairs. "(B) CONSUMER REPRESENTATIVE.— At least 1 director shall be chosen from an organization with more than a 2- year history of representing consumer or community in- terests on banking services, credit needs, housing, or finan- cial consumer protections. " (C) LIMITATIONS ON CONFUCTS OF INTEREST. — No director may— "(i) serve as a director or officer of any Federal Home Loan Bank or any member of any Bank; or "(ii) hold shares of, or any other financial interest in, any member of any such Bank. "(3) INITIAL TERMS.—Notwithstanding paragraph (2), of the directors first appointed—

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