Page:United States Statutes at Large Volume 113 Part 2.djvu/439

 PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1459 "(2) APPROVAL OF MODIFICATIONS. —The board of directors of a Federal home loan bank shall submit to the Finance Board for approval any modifications that the bank proposes to make to an approved capital structure plan. "(c) CONTENTS OF PLAN.—The capital structure plan of each Federal home loan bank shall contain provisions addressing each of the following: "(1) MINIMUM INVESTMENT.— "(A) IN GENERAL.— Each capital structure plan of a Federal home loan bank shall require each member of the bank to maintain a minimum investment in the stock of the bank, the amount of which shall be determined in a manner to be prescribed by the board of directors of each bank and to be included as part of the plan. "(B) INVESTMENT ALTERNATIVES.— "(i) IN GENERAL.—In establishing the minimum investment required for each member under subparagraph (A), a Federal home loan bank may, in its discretion, include any 1 or more of the requirements referred to in clause (ii), or any other provisions approved by the Finance Board. "(ii) AUTHORIZED REQUIREMENTS. —^A requirement, is referred to in this clause if it is a requirement for— "(I) a stock purchase based on a percentage of the total assets of a member; or "(II) a stock purchase based on a percentage of the outstanding advances from the bank to the member. "(C) MINIMUM AMOUNT. —Each capital structure plan of a Federal home loan bank shall require that the minimum stock investment established for members shall be set at a level that is sufficient for the bank to meet the minimum capital requirements established by the Finance Board under subsection (a). "(D) ADJUSTMENTS TO MINIMUM REQUIRED INVEST- MENT. — The capital structure plan of each Federal home loan bank shall impose a continuing obligation on the board of directors of the bank to review and adjust the minimum investment required of each member of that bank, as necessary to ensure that the bank remains in compliance with applicable minimum capital levels established by the Finance Board, and shall require each member to comply promptly with any adjustments to the required minimum investment. "(2) TRANSITION RULE.— "(A) IN GENERAL.—The capital structure plan of each Federal home loan bank shall specify the date on which it shall take effect, and may provide for a transition period of not longer than 3 years to allow the bank to come into compliance with the capital requirements prescribed under subsection (a), and to allow any institution that was a member of the bank on the date of the enactment of the Federal Home Loan Bank System Modernization Act of 1999, to come into compliance with the minimum investment required pursuant to the plan.

�