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Title 12: Banks and Banking
CHAPTER XII: FEDERAL HOUSING FINANCE AGENCY
SUBCHAPTER E: HOUSING GOALS AND MISSION
PART 1291: FEDERAL HOME LOAN BANKS' AFFORDABLE HOUSING PROGRAM
1291.11 - Temporary suspension of AHP contributions.
(a) Request to FHFA. If a Bank finds that the contributions required pursuant to § 1291.2(a) of this part are contributing to the financial instability of the Bank, the Bank may apply in writing to the FHFA for a temporary suspension of such contributions.
(b) Director review. (1) In determining the financial instability of a Bank, the Director shall consider such factors as:
(i) Severely depressed Bank earnings;
(ii) A substantial decline in Bank membership capital; and
(iii) A substantial reduction in Bank advances outstanding.
(2) Limitations on grounds for suspension. The Director shall not suspend a Bank's annual AHP contributions if it determines that the Bank's reduction in earnings is due to:
(i) A change in the terms of advances to members that is not justified by market conditions;
(ii) Inordinate operating and administrative expenses; or
(iii) Mismanagement.
[71 FR 59286, Oct. 6, 2006, as amended at 73 FR 61664, Oct. 17, 2008]
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