Page:United States Statutes at Large Volume 106 Part 5.djvu/304

 106 STAT. 3942 PUBLIC LAW 102-550—OCT. 28, 1992 and enforce compliance with the standards and rules that it establishes; (7) the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation have an affirmative obligation to facilitate the financing of affordable housing for low- and moderate-income families in a manner consistent with their overall public purposes, while maintaining a strong financial condition and a reasonable economic return; and (8) the Federal Home Loan Bank Act should be amended to emphasize that providing for financial safety and soundness of the Federal Home Loan Banks is the primary mission of the Federal Housing Finance Board. 12 USC 4502. SEC. 1303. DEFINITIONS. For purposes of this title: (1) AFFILIATE. —Except as provided by the Director, the term "affiliate" means any entity that controls, is controlled by, or is under common control with, an enterprise. (2) CAPITAL DISTRIBUTION.— (A) IN GENERAL.—The term "capital distribution" means— (i) any dividend or other distribution in cash or in kind made with respect to any shares of, or other ownership interest in, an enterprise, except a dividend consisting only of shares of the enterprise; (ii) any payment made by an enterprise to repurchase, redeem, retire, or otherwise acquire any of its shares, including any extension of credit made to finance an acquisition by the enterprise of such shares; and (iii) any transaction that the Director determines by regulation to be, in substance, the distribution of capital. (B) EXCEPTION. —Any payment made by an enterprise to repurchase its shares for the purpose of fulfilling an obligation of the enterprise under an employee stock ownership plan that is qualified under section 401 of the Internal Revenue Code of 1986 or any substantially equivalent plan, as determined by the Director, shall not be considered a capital distribution. (3) COMPENSATION.—The term "compensation" means any payment of money or the provision of any other thing of current or potential value in connection with employment. (4) CORE CAPITAL. —The term "core capital" means, with respect to an enterprise, the sum of the following (as determined in accordance with generally accepted accounting principles): (A) The par or stated value of outstanding common stock. (B) The par or stated value of outstanding perpetual, noncumulative preferred stock. (C) Paid-in capital. (D) Retained earnings. The core capital of an enterprise shall not include any amounts that the enterprise could be required to pay, at the option of investors, to retire capital instruments.

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