Page:United States Statutes at Large Volume 103 Part 1.djvu/446

 103 STAT. 418 PUBLIC LAW 101-73—AUG. 9, 1989 SEC. 708. REPEAL OF PROVISIONS RELATING TO CERTAIN POWERS OF THE FEDERAL HOME LOAN BANK BOARD. Section 19 of the Federal Home Loan Bank Act (12 U.S.C. 1439) is hereby repealed. SEC. 709. POWERS AND DUTIES OF BANKS. Section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431) is amended— (1) in subsection (e)(l), by inserting "incidental to activities" after "not"; (2) in subsection (f), by striking out "or whenever in the judgment of at least 4 members of the board an emergency exists requiring such action"; (3) by amending subsection (k) to read as follows: , "(k) BANK LOANS TO SAIF.— "(1) LOANS AUTHORIZED. —Subject to paragraph (3), the Fed- eral Home Loan Banks may, upon the request of the Federal Deposit Insurance Corporation, make loans to such Corporation for the use of the Savings Association Insurance Fund. "(2) LIABILITY OF THE FUND. —Any loan by a Federal Home Loan Bank pursuant to paragraph (1) shall be a direct liability of the Savings Association Insurance Fund. "(3) INTEREST ON AND SECURITY FOR SUCH LOANS. —Any loan by a Federal Home Loan Bank pursuant to paragraph (1) shall— "(A) bear a rate of interest not less than such Bank's current marginal cost of funds, taking into account the maturities involved; and "(B) be adequately secured.". SEC. 710. ELIGIBILITY OF BORROWERS TO SECURE ADVANCES. (a) IN GENERAL.—Section 9 of the Federal Home Loan Bank Act (12 U.S.C. 1429) is amended by striking "or nonmember borrower" in the first sentence. (b) CONFORMING AMENDMENTS. —The Federal Home Loan Bank Act (12 U.S.C. 1421 et seq.) is amended— 12 USC 1422, (1) in sections 2(5) and 4(b), by striking "or a nonmember 1424. borrower" wherever it appears; 12 USC 1426. (2) in section 6(e) (as redesignated by section 706 of this Act), by striking "or nonmember borrower" wherever it appears; (3) in section 6(e) (as redesignated by section 706 of this Act), by striking "or deprive any nonmember borrower of the privi- lege of further advances,"; 12 USC 1427, (4) in sections 70') and 10(c), by striking "or nonmember 1430. borrower" wherever it appears; (5) in section 10(c), by striking ", or made to a nonmember borrower" in the second sentence; and 12 USC 1431. (6) in sections 11(g) and 11(h), by striking "or nonmember borrowers" wherever it appears. (c) COMMUNITY SUPPORT.— Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) is amended by adding at the end the following: " (g) COMMUNITY SUPPORT REQUIREMENTS. — Regulations. "(1) IN GENERAL.—Before the end of the 2-year period begin- ning on the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, the Board shall adopt regulations establishing standards of community

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