Code of Federal Regulations (Last Updated: July 5, 2024) |
Title 12 - Banks and Banking |
Chapter IX - Federal Housing Finance Board |
SubChapter G - Federal Home Loan Bank Assets and off-Balance Sheet Items |
Part 950 - ADVANCES |
Subpart A - Advances to Members |
§ 950.13 - Special advances to savings associations.
-
(a)
Eligible institutions. (1) A Bank, upon receipt of a written request from the Director of the OTS, may make short-term advances to a savings association member.(2) Such request must certify that the member:
(i) Is solvent but presents a supervisory concern to the OTS because of the member's financial condition; and
(ii) Has reasonable and demonstrable prospects of returning to a satisfactory financial condition.
(b)
Terms and conditions. Advances made by a Bank to a member savings association under this section shall:(1) Be subject to all applicable collateral requirements of the Bank, this part and section 10(a) of the Act (12 U.S.C. 1430(a)); and
(2) Be at the interest rate applicable to advances of similar type and maturity that are made available to other members that do not pose such a supervisory concern.