Page:United States Statutes at Large Volume 113 Part 2.djvu/431

 PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1451 " (f) FEDERAL HOME LOAN BANK MEMBERSHIP.— After the end of the 6-month period beginning on the date of the enactment of the Federal Home Loan Bank System Modernization Act of 1999, a Federal savings association may become a member of the Federal Home Loan Bank System, and shall qualify for such membership in the manner provided by the Federal Home Loan Bank Act.". SEC. 604. ADVANCES TO MEMBERS; COLLATERAL. (a) IN GENERAL. —Section 10(a) of the Federal Home Loan Bank Act (12 U.S.C. 1430(a)) is amended— (1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respect'vely, and indenting appropriately; (2) by striking "(a) Each" and inserting the following: "(a) IN GENERAL.— "(1) ALL ADVANCES.—Each"; (3) by striking the second sentence and inserting the following: "(2) PURPOSES OF ADVANCES. — A long-term advance may only be made for the purposes of— "(A) providing funds to any member for residential housing finance; and "(B) providing funds to any community financial institution for small businesses, small farms, and small agri-businesses."; (4) by striking "A Bank" and inserting the following: "(3) COLLATERAL. — A Bank"; (5) in paragraph (3) (as so designated by paragraph (4) of this subsection)— (A) in subparagraph (C) (as so redesignated by paragraph (1) of this subsection) by striking "Deposits" and inserting "Cash or deposits"; (B) in subparagraph (D) (as so redesignated by paragraph (1) of this subsection), by striking the second sentence; and (C) by inserting after subparagraph (D) (as so redesignated by paragraph (1) of this subsection) the following new subparagraph: "(E) Secured loans for small business, agriculture, or securities representing a whole interest in such secured loans, in the case of any community financial institution."; (6) in paragraph (5)— (A) in the second sentence, by striking "and the Board"; (B) in the third sentence, by striking "Board" and inserting "Federal home loan bank"; and (C) by striking "(5) Paragraphs (1) through (4)" and inserting the following: "(4) ADDITIONAL BANK AUTHORITY.— Subparagraphs (A) through (E) of paragraph (3)"; and (7) by adding at the end the following: "(5) REVIEW OF CERTAIN COLLATERAL STANDARDS. —The Board may review the collateral standards applicable to each Federal home loan bank for the classes of collateral described in subparagraphs (D) and (E) of paragraph (3), and may, if necessary for safety and soundness purposes, require an

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