Page:United States Statutes at Large Volume 103 Part 1.djvu/448

 103 STAT. 420 PUBLIC LAW 101-73—AUG. 9, 1989 "(1) Fully disbursed, whole first mortgages on improved resi- dential property (not more than 90 days delinquent), or securi- ties representing a whole interest in such mortgages. "(2) Securities issued, insured, or guaranteed by the United States Government or any agency thereof (including without limitation, mortgage-backed securities issued or guaranteed by the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Corporation, and the Government National Mortgage Association). ... "(3) Deposits of a Federal Home Loan Bank. "(4) Other real estate related collateral acceptable to the Bank if such collateral has a readily ascertainable value and the Bank can perfect its interest in the collateral. The aggregate ' amount of outstanding advances secured by such other real estate related collateral shall not exceed 30 percent of such member's capital. "(5) Paragraphs (1) through (4) shall not affect the ability of any Federal Home Loan Bank to take such steps as it deems necessary to protect its security position with respect to outstanding advances, including requiring deposits of additional coUateral security, whether or not such additional security would be eligible to originate an advance. If an advance existing Recovery, and Enforcement Act of 1989 matures and the member does not have sufficient eligible collateral to fully secure a renewal of such advance, a Bank may renew such advance secured by such collateral as the Bank and the Board determines is appropriate. A member that has an advance secured by such insufficient eligible collateral must reduce its level of outstanding advances promptly and prudently in accordance with a schedule determined by the Board.", (b) REDUCED ELIGIBILITY FOR ADVANCES.— Section 10(e) of the Fed- eral Home Loan Bank Act (12 U.S.C. 1430(e)) is amended to read as follows: "(e) QUALIFIED THRIFT LENDER STATUS. — "(1) IN GENERAL. — A member that is not a qualified thrift lender may only receive an advance if it holds stock in its Federal Home Loan Bank at the time it receives that advance in / an amount equal to at least— "(A) 5 percent of that member's total advances, divided by "(B) such members actual thrift investment percentage. ^ Such members that are not qualified thrift lenders may only apply for advances under this section for the purpose of obtain- ing funds for housing finance. "(2) PRIORITY. —The Board, by regulation, shall establish a priority for advances to members that are qualified thrift lend- ers. The aggregate amount of any Bank's advances to members that are not qualified thrift lenders shall not exceed 30 percent of a Bank's total advances. "(3) MINIMUM STOCK PURCHASE REQUIREMENT FOR MEMBER- SHIP.— Each member of a Federal Home Loan Bank shall, at a minimum, purchase and maintain stock in its Federal Home Loan Bank in the amount that would be required under section 6(b) if at least 30 percent of such member's assets were home mortgage loans.
 * on the date of enactment of the Financial Institutions Reform,

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