Page:United States Statutes at Large Volume 106 Part 5.djvu/357

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3995 improving the distribution of investment capital available for residential mortgage financing; and". (b) HIGH COST AMJAS. — The last sentence of section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is amended by striking "and Hawaii" and inserting "Hawaii, and the Virgin Islands". (c) SECRETARY'S APPROVAL AUTHORITY. —Section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) is amended— (1) in the first sentence of paragraph (2), by striking "and with the approval of the Secretary of Housing and Urban Development,"; (2) in the first sentence of paragraph (3), Inr striking ", with the approval of the Secretary of Housing and Urban Development,"; (3) in the first sentence of paragraph (4), by striking ", with the approval of the Secretary of Housing and Urban Development,"; and (4) by adding at the end the following new paragraph: "(6) The corporation may not implement any new program (as such term is defined in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992) before obtaining the approval of the Secretary under section 1322 of such Act.". (d) CAPITALIZATION.— Section 303 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1718) is amended— (1) in subsection (a), by inserting after the period at the end the following new sentence: The corporation may issue shares of common stock in return for appropriate payments into capital or capital and surplus."; (2) by striking subsections (b) and (c) and inserting the following new subsections: "(b)(l) The corporation may impose charges or fees, which may be regarded as elements of pricing, with the objective that all costs and expenses of the operations of the corporation should be within its income derived from such operations and that such operations should be fully self-supporting. "(2) All earnings from the operations of the corporation shall annually be transferred to the general surplus account of the corporation. At any time, funds of the general surplus account may, in the discretion of the board of directors, be transferred to reserves. "(c)(1) Except as provided in paragraph (2), the corporation may make such capital distributions (as such term is defined in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992) as may be declared by the board of directors. All capital distributions shall be charged against the general surplus account of the corporation. "(2) The corporation may not make any capital distribution that would decrease the total capital of the corporation (as such term is defined in section 1303 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992) to an amount less than the risk-based capital level for the corporation established under section 1361 of such Act or that would decrease the core capital of the corporation (as such term is defined in section 1303 of such Act) to an amoiuit less than the minimum capital level for the corporation established under section 1362 of such Act, without prior written approval of the distribution by the Director

�