Page:United States Statutes at Large Volume 103 Part 1.djvu/457

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 429 account from time-to-time such portion of its net earnings as may be determined by its board of directors."; and (2) by striking the fifth sentence and inserting the following: "No dividends shall be paid except out of net earnings remain- ing after reductions for all reserves, chargeoffs, purchases of capital certificates of the Financing Corporation, and payments relating to the Funding Corporation required under this Act have been provided for, other than chargeoffs or expenses in- curred by a Bank in connection with the purchase of capital stock of the Financing Corporation under section 21 or pay- ments relating to the Funding Corporation Principal Fund under section 21B(e), and then only with the approval of the Federal Housing Finance Board. Beginning on January 1, 1992, Effective date, the preceding sentence shall be applied by substituting 'pre- viously retained earnings or current net earnings' for 'net earnings'.", (b) EFFECTIVE DATE.—The amendment made by subsection (a)(1) 12 USC 1436 shall take effect on January 1, 1992. note. SEC. 725. SPECIAL ACCOUNT. 12 USC 1437 At the time of dissolution of the Federal Home Loan Bank Board, all such moneys and funds as shall remsiin in the special deposit account of the Federal Home Loan Bank Board, or other such accounts, shall become the property of the Federsil Housing Finance Board. Subtitle B—Federal Home Loan Mortgage Corporation SEC. 731. FEDERAL HOME LOAN MORTGAGE CORPORATION. (a) STATEMENT OF PURPOSE.— (1) IN GENERAL.— Section 301 of the Federal Home Loan Mort- gage Corporation Act (12 U.S.C. 1451 note) is amended— (A) by inserting "(a)" after the section designation; and (B) by adding at the end the following new subsection: "(b) It is the purpose of the Federeil Home Loan Mortgage Cor- poration— "(1) to provide stability in the secondary market for home mortgages; "(2) to respond appropriately to the private capital market; and "(3) to provide ongoing assistance to the secondary market for home mortgages (including mortgages securing housing for low- and moderate-income families involving a reasonable economic return to the Corporation) by increasing the liquidity of mort- gage investments and improving the distribution of investment capital available for home mortgage financing.". (2) CONFORMING AMENDMENT.—The section heading for sec- tion 301 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 note) is amended to read as follows: "SHORT TITLE AND STATEMENT OF PURPOSE". (b) BOARD OF DIRECTORS. —

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