[Federal Register Volume 59, Number 55 (Tuesday, March 22, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6621]
[[Page Unknown]]
[Federal Register: March 22, 1994]
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FEDERAL HOUSING FINANCE BOARD
[No. 93-88]
Members of the Federal Home Loan Banks
AGENCY: Federal Housing Finance Board.
ACTION: Notice of guidelines for calculation of minimum Federal Home
Loan Bank capital stock purchase requirement.
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SUMMARY: The Federal Housing Finance Board (``Finance Board'') is
issuing guidelines that set forth the instructions and definitions for
calculating the minimum Federal Home Loan Bank (``FHLBank'') capital
stock purchase requirements of members and applicants for FHLBank
membership. These guidelines are intended to provide guidance to the
FHLBanks in order to ensure uniform interpretation and application by
the FHLBanks of the definitions for the calculation of FHLBank stock
purchase requirements.
DATES: These guidelines were effective as of November 17, 1993.
FOR FURTHER INFORMATION CONTACT: Amy R. Maxwell, Assistant Director,
District Banks Directorate, (202) 408-2882, or Sharon B. Like,
Attorney-Advisor, Office of Legal and External Affairs, (202) 408-2930,
Federal Housing Finance Board, 1777 F Street NW., Washington, DC 20006.
SUPPLEMENTARY INFORMATION: In order to address the significant changes
that the Financial Institutions Reform, Recovery and Enforcement Act of
1989, Public Law 101-73, 103 Stat. 183 (Aug. 9, 1989) (``FIRREA'') made
to the membership provisions in the Federal Home Loan Bank Act (``Bank
Act''), the Finance Board published, on August 17, 1993, a final rule
concerning membership in the FHLBank System (``final membership
regulation''), 58 FR 43522 (1993), codified at 12 CFR part 933.
This notice sets forth the instructions and guidelines for
calculating a FHLBank member's minimum stock requirement pursuant to 12
U.S.C. 1426(b), 1430(e)(3) and 12 CFR 933.7.
GUIDELINES FOR CALCULATION OF FEDERAL HOME LOAN BANK CAPITAL STOCK
REQUIREMENT
I. Background
Section 6(b) of the Federal Home Loan Bank Act requires all members
of the FHLBank System to purchase FHLBank stock equal to one percent of
the member's aggregate unpaid loan principal, but not less than $500.
12 U.S.C. 1426(b); see 12 CFR 933.7(a). Additionally, section 10(e)(3)
requires each member to purchase FHLBank stock as if at least 30
percent of its total assets were home mortgage loans. 12 U.S.C.
1430(e)(3); see 12 CFR 933.7(b).
Therefore, a member is required to maintain FHLBank stock equal to
the greater of one percent of aggregate unpaid loan principal or one
percent of 30% of total assets.
To ensure that the FHLBanks are uniformly interpreting and applying
the definitions for the FHLBank stock requirement calculation, these
guidelines provide instructions and definitions for calculating the
minimum capital stock requirement.
II. Documentation
1. A certification indicating an agreement to purchase FHLBank
stock must be completed at the time the membership application is filed
with the FHLBank (see sample certification attached as Exhibit A). The
certification must be signed by a majority of the Applicant's board
members or by a representative delegated the authority to sign for the
board and whose signature is attested to by the corporate secretary.
The purpose of such a certification is to ensure that the Applicant
understands the stock purchase requirement and knows the approximate
amount of stock required to be purchased after approval.
2. Exhibits B through D provide line item definitions and
calculation methodology for the minimum FHLBank stock requirement for
commercial banks, thrifts and credit unions.
Note: The line item definitions contained on the attached forms
also can be used during the annual FHLBank stock adjustment process
or upon approval for membership. See 12 U.S.C. 1426(b)(1), 12 CFR
933.9(b)(1).
III. Special Conditions
1. Thrift Calculation. The line item definitions provided for the
thrift calculation incorporate line items from the year-end Annual
Supplement. Consequently, the FHLBank should develop a comparable
quarterly line item definition for thrift applicants filing for
membership after the first quarter of operation.
2. Insurance Company Calculation. In calculating the FHLBank stock
requirement for insurance company applicants, the FHLBank will need to
obtain a complete listing of all permanent single and multifamily
mortgages and all residential mortgage-backed securities.
Dated: November 17, 1993.
By the Federal Housing Finance Board.
Philip L. Conover,
Managing Director.
Exhibit A
Federal Home Loan Bank of
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Applicant Name:--------------------------------------------------------
Application for Membership and Purchase of Stock in Federal Home Loan
Bank
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(Date of Application)
The undersigned Applicant hereby applies for membership in the
Federal Home Loan Bank of __________ (FHLBank) and, if approved for
membership, will purchase __________ shares of stock in the par
value of $100 each in the FHLBank, and agrees to make payment in the
amount of $__________ as payment of said stock purchase within 60
calendar days of approval for FHLBank membership.
Applicant is of the opinion that it is eligible to become a
member of the FHLBank and that it is authorized to purchase and hold
capital stock in the FHLBank and to maintain deposits there.
Applicant understands that this application must be considered,
acted upon, and approved by the Federal Housing Finance Board
(Finance Board) before becoming a member of the FHLBank.
In submitting this application, Applicant understands and agrees
that:
(1) It will be advised whether or not its application for
membership is approved.
(2) If admitted to membership, it will conform to all
requirements of the Federal Home Loan Bank Act, as now or hereafter
amended, and to the rules and regulations thereunder.
(3) In applying for, and if Applicant is admitted to membership,
the Finance Board and the FHLBank are authorized to receive any
information, examination reports and other supervisory materials
provided by the appropriate State or Federal regulatory authority or
officer exercising supervisory authority over Applicant regarding
Applicant and its affairs.
(4) It will not represent itself to be a member of the FHLBank
until it has received notice of approval of membership and has
purchased its minimum stock requirement.
Federal Home Loan Bank of----------------------------------------------
Applicant Name:--------------------------------------------------------
Applicant by its duly authorized representative and the
undersigned members of Applicant's board of directors severally
represent that each such person has read this application and that
in the opinion of each such person, he or she has made such
examination and investigation as is necessary (or is relying in good
faith upon information received from qualified persons) to enable
him or her to express an informed opinion that this application
complies, to the best of his or her knowledge and belief, with the
applicable requirements of the Federal Home Loan Bank Act and the
rules and regulations thereunder.
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(Exact Name of Applicant as Specified in Charter)
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(Street Address of Applicant)
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(City, State, and Zip Code)
By:--------------------------------------------------------------------
(Duly Authorized Representative)
Attest:
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(Secretary)
Signatures of at Least a Majority of the Directors/Trustees*
Name (print)
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Corporate Title
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Signature
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*Optional
Exhibit B--Commercial Banks
Computation of FHLBank Stock Requirement
As of------------------------------------------------------------------
(most recent quarter)
Sum of:
1-4 Family Mortgages--Revolving (RC-C, Line 1c(1)).... __________
1-4 Family Mortgages--Other (RC-C, Line 1c(2)a+b)..... __________
Multifamily Loans (RC-C, Line 1d)..................... __________
FNMA & FHLMC PCs & Passthroughs (RC-B, Line 2a(1)).... __________
GNMA PCs & Passthroughs (RC-B, Line 2a(2))............ __________
Other Private Residential PCs & Passthroughs (RC-B,
Line 4a)............................................. __________
Total Mortgage Assets................................... (1)__________
1% of (1)............................................... (2)__________
Total Assets............................................ (3)__________
.3% of (3).............................................. (4)__________
Required Stock Purchase:
Greater of (2) or (4); Round (5) to next highest $100. (5)__________
Please enter total (in thousands) as reported on the most recent
regulatory financial report.
Exhibit C--Thrifts
Computation of FHLBank Stock Requirement
As of ----------------------------------------------------------------
(most recent quarter)
Mortgage Loans and Contracts (AS 150)................. __________
Minus:
Residential Construction Loans (SC 230 plus SC 235)... __________
Minus:
Balance of loans in process/undisbursed commitments on
residential property (AS 140)........................ __________
Net Mortgage Loans...................................... (1)__________
1% of (1)............................................... (2)__________
Total Assets (SC 060)................................... (3)__________
.3% of (3).............................................. (4)__________
Required Stock Purchase:
Greater of (2) or (4); Round (5) to next highest $100. (5)__________
Please enter total (in thousands) as reported on the most recent Thrift
Financial Report.
Exhibit D--Credit Unions
Computation of FHLBank Stock Requirement
As of------------------------------------------------------------------
(most recent quarter)
First Mortgage Real Estate (NCUA 5300, Line 703)...... __________
Minus:
Portion of line 703 representing construction loans... __________
Total Mortgage Real Estate Assets....................... (1)__________
Plus:
Other Real Estate (NCUA 5300, Line 386)............... (2)__________
Federal Agency Mortgage-Backed Securities (Include only
the portion of NCUA 5300, Line 742c that is MBS)....... (3)__________
Net Mortgage Loans (1) + (2) + (3)...................... (4)__________
1% of (4)............................................... (5)__________
Total Assets (NCUA 5300, Line 010)...................... (6)__________
.3% of (6).............................................. (7)__________
Required Stock Purchase:
Greater of (5) or (7); Round (8) to next highest $100. (8)__________
Please enter total (in thousands) as reported on the most recent NCUA
Financial Report.
[FR Doc. 94-6621 Filed 3-21-94; 8:45 am]
BILLING CODE 6725-01-P
