§1432. Incorporation of banks; corporate powers; housing project loans

(a) The directors of each Federal Home Loan Bank shall, in accordance with such rules and regulations as the Board may prescribe, make and file with the Board at the earliest practicable date after the establishment of such bank, an organization certificate which shall contain such information as the Board may require. Upon the making and filing of such organization certificate with the Board, such bank shall become, as of the date of the execution of its organization certificate, a body corporate, and as such and in its name as designated by the Board it shall have power to adopt, alter, and use a corporate seal; to make contracts; to purchase or lease and hold or dispose of such real estate as may be necessary or convenient for the transaction of its business, but, except with the prior approval of the Board, no bank building shall be bought or erected to house any such bank, or leased by such bank under any lease for such purpose which has a term of more than ten years; to sue and be sued, to complain and to defend, in any court of competent jurisdiction, State or Federal; to select, employ, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary for the transaction of its business, subject to the approval of the Board; to define their duties, require bonds of them and fix the penalties thereof, and to dismiss at pleasure such officers, employees, attorneys, and agents; and, by its Board ¹ of directors, to prescribe, amend, and repeal bylaws, rules, and regulations governing the manner in which its affairs may be administered; and the powers granted to it by law may be exercised and enjoyed ² subject to the approval of the Board. The president of a Federal Home Loan Bank may also be a member of the Board ¹ of directors thereof, but no other officer, employee, attorney, or agent of such bank, who receives compensation, may be a member of the Board ¹ of directors. Each such bank shall have all such incidental powers, not inconsistent with the provisions of this chapter, as are customary and usual in corporations generally.

(b) Subject to such regulations as may be prescribed by the Board, one or more Federal home loans ³ banks may acquire, hold, or dispose of, in whole or in part, or facilitate such acquisition, holding, or disposition by members of any such bank of, housing project loans, or interests therein, having the benefit of any guaranty under section 2181 of title 22, as now or hereafter in effect, or loans, or interests therein, having the benefit of any guaranty under section 2184 of title 22 or any commitment or agreement with respect to such loans, or interests therein, made pursuant to either of such sections. This authority extends to the acquisition, holding, and disposition of loans, or interests therein, having the benefit of any guaranty under section 2181 or 2182 of title 22 or such sections as hereafter amended or extended, or of any commitment or agreement for any such guaranty.

(July 22, 1932, ch. 522, §12, 47 Stat. 735 ; Nov. 3, 1966, Pub. L. 89–754, title X, §1016(a), 80 Stat. 1293 ; Aug. 1, 1968, Pub. L. 90–448, title XVII, §1717, 82 Stat. 609 ; Dec. 31, 1970, Pub. L. 91–609, title IX, §907(a), 84 Stat. 1811 ; Aug. 9, 1989, Pub. L. 101–73, title VII, §701(b)(1), (3)(A), 103 Stat. 412 .)

References in Text

Section 2184 of title 22, referred to in subsec. (b), which related to housing projects in Latin American countries, was omitted in the general amendment made by section 105 of Pub. L. 91–175, Dec. 30, 1969, 83 Stat. 807 . See section 2182 of Title 22, Foreign Relations and Intercourse.

Amendments

1989-Subsec. (a). Pub. L. 101–73 substituted "Board" for "board" wherever appearing.

1970-Subsec. (b). Pub. L. 91–609 extended authority to make housing project loans to acquisition, holding, and disposition of loans, or interest therein, having benefit of any guaranty under section 2181 or 2182 of title 22 or such sections as hereafter amended or extended, or of any commitment or agreement for any such guaranty.

1968-Pub. L. 90–448 designated existing provisions as subsec. (a) and added subsec. (b).

1966-Pub. L. 89–754 substituted "but, except with the prior approval of the board, no bank building shall be bought or erected to house any such bank, or leased by such bank under any lease" for "but no bank building shall be bought or erected to house any such bank, nor shall any such bank make any lease" in second sentence.

Cross References

Punishment for use of words "Federal Home Loan Bank", see section 709 of Title 18, Crimes and Criminal Procedure.

Section Referred to in Other Sections

This section is referred to in section 1427 of this title.

¹ So in original. Probably should not be capitalized.

² So in original. Probably should be "employed".

³ So in original.