Page:United States Statutes at Large Volume 113 Part 2.djvu/442

 113 STAT. 1462 PUBLIC LAW 106-102—NOV. 12, 1999 and, upon the extinguishment of all such indebtedness, the bank shall return to the member all collateral pledged to secure the indebtedness. " (e) REDEMPTION OF EXCESS STOCK.— "(1) IN GENERAL.—^A Federal home loan bank, in its sole discretion, may redeem or repurchase, as appropriate, any shares of Class A or Class B stock issued by the bank and held by a member that are in excess of the minimum stock investment required of that member. "(2) EXCESS STOCK. —Shares of stock held by a member shall not be deemed to be 'excess stock' for purposes of this subsection by virtue of a member's submission of a notice of intent to withdraw from membership or termination of its membership in any other manner. "(3) PRIORITY.— A Federal home loan bank may not redeem any excess Class B stock prior to the end of the 5-year notice period, unless the member has no Class A stock outstanding that could be redeemed as excess. "(f) IMPAIRMENT OF CAPITAL.— If the Finance Board or the board of directors of a Federal home loan bank determines that the bank has incurred or is likely to incur losses that result in or are expected to result in charges against the capital of the bank, the bank shall not redeem or repurchase any stock of the bank without the prior approval of the Finance Board while such charges are continuing or are expected to continue. In no case may a bank redeem or repurchase any applicable capital stock if, following the redemption, the bank would fail to satisfy any minimum capital requirement. "(g) REJOINING AFTER DIVESTITURE OF ALL SHARES. — "(1) IN GENERAL.— Except as provided in paragraph (2), and notwithstanding any other provision of this Act, an institution that divests all shares of stock in a Federal home loan bank may not, after such divestiture, acquire shares of any Federal home loan bank before the end of the 5-year period beginning on the date of the completion of such divestiture, unless the divestiture is a consequence of a transfer of membership on an uninterrupted basis between banks. "(2) EXCEPTION FOR WITHDRAWALS FROM MEMBERSHIP BEFORE 1998. —Any institution that withdrew from membership in any Federal home loan bank before December 31, 1997, may acquire shares of a Federal home loan hank at any time after that date, subject to the approval of the Finance Board and the requirements of this Act. " (h) TREATMENT OF RETAINED EARNINGS.— "(1) IN GENERAL.— The holders of the Class B stock of a Federal home loan bank shall own the retained earnings, surplus, undivided profits, and equity reserves, if any, of the bank. "(2) EXCEPTION. —Except as specifically provided in this section or through the declaration of a dividend or a capital distribution by a Federal home loan bank, or in the event of liquidation of the bank, a member shall have no right to withdraw or otherwise receive distribution of any portion of the retained earnings of the bank. "(3) LIMITATION. — A Federal home loan bank may not make any distribution of its retained earnings unless, following such

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