§ 1430b. — Advances to nonmember mortgagee; terms and conditions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1430b]
TITLE 12--BANKS AND BANKING
CHAPTER 11--FEDERAL HOME LOAN BANKS
Sec. 1430b. Advances to nonmember mortgagee; terms and
conditions
(a) In general
Each Federal Home Loan Bank is authorized to make advances to
nonmember mortgagees approved under title II of the National Housing Act
[12 U.S.C. 1707 et seq.]. Such mortgagees must be chartered institutions
having succession and subject to the inspection and supervision of some
governmental agency, and whose principal activity in the mortgage field
must consist of lending their own funds. Such advances shall not be
subject to the other provisions and restrictions of this chapter, but
shall be made upon the security of insured mortgages, insured under
title II of the National Housing Act. Advances made under the terms of
this section shall be at such rates of interest and upon such terms and
conditions as shall be determined by the Board, but no advance may be
for an amount in excess of 90 per centum of the unpaid principal of the
mortgage loan given as security.
(b) Exception
An advance made to a State housing finance agency for the purpose of
facilitating mortgage lending that benefits individuals and families
that meet the income requirements set forth in section 142(d) or 143(f)
of title 26, need not be collateralized by a mortgage insured under
title II of the National Housing Act [12 U.S.C. 1707 et seq.] or
otherwise, if--
(1) such advance otherwise meets the requirements of this
subsection; and
(2) such advance meets the requirements of section 1430(a) of
this title, and any real estate collateral for such loan comprises
single family or multifamily residential mortgages.
(July 22, 1932, ch. 522, Sec. 10b, as added May 25, 1935, ch. 150,
Sec. 7, 49 Stat. 295; amended Pub. L. 101-73, title VII, Sec. 701(b)(1),
(3)(A), Aug. 9, 1989, 103 Stat. 412; Pub. L. 102-550, title XIII,
Sec. 1392(b), Oct. 28, 1992, 106 Stat. 4009.)
References in Text
The National Housing Act, referred to in text, is act June 27, 1934,
ch. 847, 48 Stat. 1246, as amended. Title II of the Act is classified
generally to subchapter II (Sec. 1707 et seq.) of chapter 13 of this
title. For complete classification of this Act to the Code, see section
1701 of this title and Tables.
Amendments
1992--Pub. L. 102-550 designated existing provisions as subsec. (a),
inserted heading, and added subsec. (b).
1989--Pub. L. 101-73 substituted ``Board'' for ``Federal Home Loan
Bank Board''.
Section Referred to in Other Sections
This section is referred to in sections 1733, 2705 of this title.
