§ 1723. — Management.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1723]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER III--NATIONAL MORTGAGE ASSOCIATIONS
Sec. 1723. Management
(a) Government National Mortgage Association
All the powers and duties of the Government National Mortgage
Association shall be vested in the Secretary of Housing and Urban
Development and the Association shall be administered under the
direction of the Secretary. Within the limitations of law, the Secretary
shall determine the general policies which shall govern the operations
of the Association, and shall have power to adopt, amend, and repeal
bylaws governing the performance of the powers and duties granted to or
imposed upon it by law. There is hereby established in the Department of
Housing and Urban Development the position of President, Government
National Mortgage Association, who shall be appointed by the President,
by and with the advice and consent of the Senate. The Secretary shall
select and effect the appointment of qualified persons to fill the
offices of vice president, and such other offices as may be provided for
in the bylaws. Persons appointed under the preceding sentence shall
perform such executive functions, powers, and duties as may be
prescribed by the bylaws or by the Secretary, and such persons shall be
executive officers of the Association and shall discharge all such
executive functions, powers, and duties.
(b) Federal National Mortgage Association
The Federal National Mortgage Association shall have a board of
directors, which shall consist of eighteen persons, five of whom shall
be appointed annually by the President of the United States, and the
remainder of whom shall be elected annually by the common stockholders.
The board shall at all times have as members appointed by the President
at least one person from the homebuilding industry, at least one person
from the mortgage lending industry, at least one person from the real
estate industry, and at least one person from an organization that has
represented consumer or community interests for not less than 2 years or
one person who has demonstrated a career commitment to the provision of
housing for low-income households. Each member of the board of directors
shall be appointed or elected for a term ending on the date of the next
annual meeting of the stockholders, except that any such appointed
member may be removed from office by the President for good cause. Any
elective seat on the board which becomes vacant after the annual
election of the directors shall be filled by the board, but only for the
unexpired portion of the term. Any appointive seat which becomes vacant
shall be filled by appointment of the President, but only for the
unexpired portion of the term. Within the limitations of law and
regulation, the board shall determine the general policies which shall
govern the operations of the corporation, and shall have power to adopt,
amend, and repeal bylaws governing the performance of the powers and
duties granted to or imposed upon it by law. The board of directors
shall select and effect the appointment of qualified persons to fill the
offices of president and vice president, and such other offices as may
be provided for in the bylaws. Any member of the board who is a full-
time officer or employee of the Federal Government shall not, as such
member, receive compensation for his services.
(June 27, 1934, ch. 847, title III, Sec. 308, as added Aug. 2, 1954, ch.
649, title II, Sec. 201, 68 Stat. 620; amended Pub. L. 89-174,
Sec. 5(b), Sept. 9, 1965, 79 Stat. 669; Pub. L. 89-754, title X,
Sec. 1020(d), Nov. 3, 1966, 80 Stat. 1296; Pub. L. 90-19, Sec. 1(l),
(m), May 25, 1967, 81 Stat. 18, 19; Pub. L. 90-448, title VIII,
Sec. 802(y), Aug. 1, 1968, 82 Stat. 539; Pub. L. 94-375, Sec. 17(a),
Aug. 3, 1976, 90 Stat. 1076; Pub. L. 98-440, title II, Sec. 207, Oct. 3,
1984, 98 Stat. 1696; Pub. L. 102-550, title XIII, Sec. 1381(h)(1), (i),
Oct. 28, 1992, 106 Stat. 3996.)
Prior Provisions
A prior section 308 of act June 27, 1934, ch. 847, title III, 48
Stat. 1255, related to depositories of public moneys, prior to the
general amendment of this subchapter by act July 1, 1948, ch. 784,
Sec. 1, 62 Stat. 1206.
Prior provisions on the subject of this section were contained in
section 1716 of this title.
Amendments
1992--Subsec. (b). Pub. L. 102-550, in second sentence, struck out
``and'' after ``mortgage lending industry,'' and inserted ``, and at
least one person from an organization that has represented consumer or
community interests for not less than 2 years or one person who has
demonstrated a career commitment to the provision of housing for low-
income households'' and in third sentence, substituted ``any such
appointed member'' for ``any such member''.
1984--Subsec. (b). Pub. L. 98-440 substituted ``, which shall
consist of eighteen persons, five of whom'' for ``which shall consist of
fifteen persons, one-third of whom''.
1976--Subsec. (a). Pub. L. 94-375 substituted provision
establishing, in the Department of Housing and Urban Development, the
position of president of the Government National Mortgage Association,
to be filled by the President, by and with the consent of the Senate,
for provision that the Secretary appoint the president of the
Association.
1968--Subsec. (a). Pub. L. 90-448, Sec. 802(y)(1)-(6), designated
existing provisions as subsec. (a), inserted provisions directing that
the powers and duties of the Government National Mortgage Association
shall be vested in the Secretary of Housing and Urban Development and
that the Association shall be administered under the direction of the
Secretary, and empowering the Secretary to adopt, amend, and repeal
bylaws, and struck out provisions which related to the Board of
Directors of the Federal National Mortgage Association.
Subsec. (b). Pub. L. 90-448, Sec. 802(y)(7), added subsec. (b).
1967--Pub. L. 90-19 substituted ``Secretary of Housing and Urban
Development'' for ``Housing and Home Finance Administrator'', and ``the
Secretary'' for ``said Administrator'', wherever appearing.
1966--Pub. L. 89-754 struck out subsec. (a) designation.
1965--Pub. L. 89-174 struck out next to last sentence which provided
that the basic rate of compensation of the position of president of the
Association shall be the same as the basic rate of compensation
established for the heads of the constituent agencies of the Housing and
Home Finance Agency.
Effective Date of 1992 Amendment
Section 1381(h)(2) of Pub. L. 102-550 provided that: ``The
amendments made by paragraph (1) [amending this section] shall apply to
the first annual appointment by the President of members to the board of
directors of the Federal National Mortgage Association that occurs after
the date of the enactment of this Act [Oct. 28, 1992].''
Effective Date of 1968 Amendment
For effective date of amendment by title VIII of Pub. L. 90-448, see
section 808 of Pub. L. 90-448, set out as an Effective Date note under
section 1716b of this title.
Effective Date of 1965 Amendment
For effective date of amendment by Pub. L. 89-174, see section 11(a)
of Pub. L. 89-174, set out as an Effective Date note under section 3531
of Title 42, The Public Health and Welfare.
Powers and Duties of Position of GNMA President To Remain in Effect
Until Position Filled
Section 17(e) of Pub. L. 94-375 provided that notwithstanding the
amendment of subsec. (a) of this section, rights, powers, and duties of
position of President, Government National Mortgage Association, as in
effect on Aug. 2, 1976, remain in effect until the newly established
position has been filled in accordance with the terms of this Act.
Section Referred to in Other Sections
This section is referred to in section 1723a of this title; title 42
section 3534.
