Page:United States Statutes at Large Volume 113 Part 2.djvu/441

 PUBLIC LAW 106-102—NOV. 12, 1999 113 STAT. 1461 the plan would have any material effect on the credit ratings of the bank. " (d) TERMINATION OF MEMBERSHIP. — "(1) VOLUNTARY WITHDRAWAL. — Any member may withdraw from a Federal home loan bank if the member provides written notice to the bank of its intent to do so and if, on the date of withdrawal, there is in effect a certification by the Finance Board that the withdrawal will not cause the Federal Home Loan Bank System to fail to meet its obligation under section 21B(f)(2)(C) to contribute to the debt service for the obligations issued by the Resolution Funding Corporation. The applicable stock redemption notice periods shall commence upon receipt of the notice by the bank. Upon the expiration of the applicable notice period for each class of redeemable stock, the member may surrender such stock to the bank, and shall be entitled to receive in cash the par value of the stock. During the applicable notice periods, the member shall be entitled to dividends and other membership rights commensurate with continuing stock ownership. " (2) INVOLUNTARY WITHDRAWAL. — "(A) IN GENERAL.—The board of directors of a Federal home loan bank may terminate the membership of any institution if, subject to Finance Board regulations, it determines that— "(i) the member has failed to comply with a provision of this Act or any regulation prescribed under this Act; or "(ii) the member has been determined to be insolvent, or otherwise subject to the appointment of a conservator, receiver, or other legal custodian, by a Federal or State authority with regulatory and supervisory responsibility for the member. "(B) STOCK DISPOSITION.—An institution, the membership of which is terminated in accordance with subparagraph (A)— "(i) shall surrender redeemable stock to the Federal home loan bank, and shall receive in cash the par value of the stock, upon the expiration of the applicable notice period under subsection (a)(4)(A); "(ii) shall receive any dividends declared on its redeemable stock, during the applicable notice period under subsection (a)(4)(A); and "(iii) shall not be entitled to any other rights or privileges accorded to members after the date of the termination. "(C) COMMENCEMENT OF NOTICE PERIOD. —With respect to an institution, the membership of which is terminated in accordance with subparagraph (A), the applicable notice period under subsection (a)(4) for each class of redeemable stock shall commence on the earlier of— "(i) the date of such termination; or "(ii) the date on which the member has provided notice of its intent to redeem such stock. "(3) LIQUIDATION OF INDEBTEDNESS.—Upon the termination of the membership of an institution for any reason, the outstanding indebtedness of the member to the bank shall be liquidated in an orderly manner, as determined by the bank

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