Page:United States Statutes at Large Volume 103 Part 1.djvu/459

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 431 (c) REGULATORY POWER.— Section 308 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1452) is amended— (1) by redesignating subsections (b) through (f) as subsections (c) through (g), respectively; and (2) by inserting after subsection (a) the following new subsec- tion: "(b)(1) The Secretary of Housing and Urban Development shall have general regulatory power over the Corporation and shall make such rules and regulations as shall be necessary and proper to ensure that the purposes of this title are accomplished. "(2) The Secretary of Housing and Urban Development may re- Disadvantaged quire that a reasonable portion of the mortgage purchases of the persons. Corporation be related to the national goal of providing adequate housing for low- and moderate-income families, but with reasonable economic return to the Corporation. "(3) The aggregate amount of cash dividends paid by the Corpora- tion in any fiscal year on account of any share of its common stock shall not exceed any rate that may be determined from time to time by the Secretary of Housing and Urban Development to be a fair rate of return after consideration of the current earnings and capital condition of the Corporation. "(4) The Secretary of Housing and Urban Development may exam- ine and audit the books and financial transactions of the Corpora- tion and may require the Corporation to issue any reports on its activities that the Secretary determines to be advisable. The Sec- Reports, retary shall, not later than June 30 of each year, submit to the Congress a report describing the activities of the Corporation under this Act. "(5) The aggregate amount of notes, debentures, or substantially identical types of unsecured obligations outstanding at any time shall not exceed the amount which is 15 times the sum of the Corporation's capital, capital surplus, general surplus, reserves, and undistributed earnings unless a greater ratio shall be fixed at any time or from time to time by the Secretary of Housing and Urban Development. The outstanding total principal amount of any obliga- tions of the Corporation which are entirely subordinated to the general debt obligations of the Corporation shall be deemed to be capital of the Corporation for the purpose of determining the aggre- gate amount of notes, debentures, or substantially identical types of unsecured obligations outstanding at any time. "(6) All issuances of stock, and debt obligations convertible into stock, by the Corporation shall be made only with the approval of the Secretary of Housing and Urban Development. "(7)(A) The exercise of the authority of the Corporation pursuant to commitments or otherwise to purchase, service, sell, lend on the security of, or otherwise deal in conventional residential mortgages under section 305(a) shall be subject to the approval of the Secretary of Housing and Urban Development. "(B) Any conventional mortgage programs or activities with re- spect to purchasing, servicing, selling, lending on the security of, or otherwise dealing in mortgages in which the Corporation has en- gaged or is engaging as of the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 shall be deemed to have been approved by the Secretary of Housing and Urban Development as required by this paragraph. "(8) If the Corporation submits to the Secretary of Housing and Reports. Urban Development a request for approval or other action under

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