Page:United States Statutes at Large Volume 113 Part 2.djvu/438

 113 STAT. 1458 PUBLIC LAW 106-102—NOV. 12, 1999 bank, and that a bank may not issue any stock other than as provided in this section; "(C) prescribe the manner in which stock of a Federal home loan bank may be sold, transferred, redeemed, or repurchased; and "(D) provide the manner of disposition of outstanding stock held by, and the liquidation of any claims of the Federal home loan bank against, an institution that ceases to be a member of the bank, through merger or otherwise, or that provides notice of intention to withdraw from membership in the bank. " (5) DEFINITIONS OF CAPITAL.—For purposes of determining compliance with the capital standards established under this subsection— "(A) permanent capital of a Federal home loan bank shall include— "(i) the amounts paid for the Class B stock; and "(ii) the retained earnings of the bank (as determined in accordance with generally accepted accounting principles); and "(B) total capital of a Federal home loein bank shall include— "(i) permanent capital; "(ii) the amounts paid for the Class A stock; "(iii) consistent with generally accepted accounting principles, and subject to the regulation of the Finance Board, a general allowance for losses, which may not include any reserves or allowances made or held against specific assets; and "(iv) any other amounts from sources available to absorb losses incurred by the hank that the Finance Board determines by regulation to be appropriate to include in determining total capital. "(6) TRANSITION PERIOD. — Notwithstanding any other provision of this Act, the requirements relating to purchase and retention of capital stock of a Federal home loan bank by any member thereof in effect on the day before the date of the enactment of the Federal Home Loan Bank System Modernization Act of 1999, shall continue in effect with respect to each Federal home loan bank until the regulations required by this subsection have taken effect and the capital structure plan required by subsection (b) has been approved by the Finance Board and implemented by such bank. "(b) CAPITAL STRUCTURE PLAN.— Deadline. "(1) APPROVAL OF PLANS.— Not later than 270 days after the date of publication by the Finance Board of final regulations in accordance with subsection (a), the board of directors of each Federal home loan bank shall submit for Finance Board approval a plan establishing and implementing a capital structure for such bank that— "(A) the board of directors determines is best suited for the condition and operation of the bank and the interests of the members of the bank; "(B) meets the requirements of subsection (c); and "(C) meets the minimum capital standards and requirements established under subsection (a) and other regulations prescribed by the Finance Board.

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