Page:United States Statutes at Large Volume 103 Part 1.djvu/452

 103 STAT. 424 PUBLIC LAW 101-73 —AUG. 9, 1989 "(B) purchase or rehabilitation of housing owned or held, by the United States Government or any agency or instrumentality of the United States; and "(C) purchase or rehabilitation of housing sponsored by any nonprofit organization, any State or political subdivi- sion of any State, any local housing authority or State housing finance agency. "(4) REPORT.— Each member receiving advances under this program shall report annually to the Bank making such ad- vances concerning the member's use of advances received under this program. / "(5) CONTRIBUTION TO PROGRAM.— Each Bank shall annually contribute the percentage of its annual net earnings prescribed in the following subparagraphs to support subsidized advances through the Affordable Housing Program: "(A) In 1990, 1991, 1992, and 1993, 5 percent of the " , preceding year's net income, or such prorated sums as may be required to assure that the aggregate contribution of all the Banks shall not be less than $50,000,000 for each such year. "(B) In 1994, 6 percent of the preceding year's net income, or such prorated sum as may be required to assure that the aggregate contribution of the Banks shall not be less than $75,000,000 for such year. "(C) In 1995, and subsequent years, 10 percent of the preceding year's net income, or such prorated sums as may be required to assure that the aggregate contribution of the Banks shall not be less than $100,000,000 for each such year. "(6) GROUNDS FOR SUSPENDING CONTRIBUTIONS. — "(A) IN GENERAL. —I f a Bank finds that the payments required under this paragraph are contributing to the financial instability of such Bank, it may apply to the Federal Housing Finance Board for a temporary suspension of such payments. "(B) FINANCIAL INSTABILITY.— In determining the finan- V cial instability of a Bank, the Federal Housing Finance Board shall consider such factors as (i) whether the Bank's earnings are severely depressed, (ii) whether there has been a substantial decline in membership capital, and (iii) whether there has been a substantial reduction in advances outstanding. "(C) REVIEW. — The Board shall review the application and any supporting financial data and issue a written decision approving or disapproving such application. The Board's decision shall be accompanied by specific findings and reasons for its action. "(D) MONITORING SUSPENSION. —I f the Board grants a suspension, it shall specify the period of time such suspen- sion shall remain in effect and shall continue to monitor the Bank's financial condition during such suspension. " (E) LIMITATIONS ON GROUNDS FOR SUSPENSION.— The Board shall not suspend payments to the Affordable Hous- ing Program if the Bank's reduction in earnings is a result ^ of (i) a change in the terms for advances to members which is not justified by market conditions, (ii) inordinate operat- ing and administrative expenses, or (iii) mismanagement.

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