§ 347b. Advances to individual member banks on time or demand notes; maturities; time notes secured by mortgage loans covering one-to-four family residences

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1913

   Pub. L. 72–6 § 10B · 47 Stat. 4

   Enacted · 12 U.S.C. § 347b

   Dec. 23, 1913, ch. 6, § 10B, formerly § 10(b), as added Feb. 27, 1932, ch. 58, § 2, 47 Stat. 56

   Source evidence

   Code source credit
   Dec. 23, 1913, ch. 6, § 10B, formerly § 10(b), as added Feb. 27, 1932, ch. 58, § 2, 47 Stat. 56

2. 1974

   Emergency Home Purchase Assistance Act of 1974

   Pub. L. 93–449 § 5 · 88 Stat. 1364

   Inserted · 12 U.S.C. § 347b

   Pub. L. 93–449 inserted provisions relating to advances on time notes secured by mortgage loans covering one-to-four family residences

   Source evidence

   Code amendment note
   Pub. L. 93–449 inserted provisions relating to advances on time notes secured by mortgage loans covering one-to-four family residences.

   Enacted provision · exact public law section
   Sec. 5. Section Time notes, advances. 12 USC 347b. 10(b) of the Federal Reserve Act is amended by adding the following at the end thereof: “Notwithstanding the foregoing, any Federal Reserve bank, under rules and regulations prescribed by the Board of Governors of the Federal Reserve System, may make advances to any member bank on its time notes having such maturities as the Board may prescribe and which are secured by mortgage loans covering a one-to-four family residence. Interest rate. Such advances shall bear interest at a rate equal to the lowest discount rate in effect at such Federal Reserve bank on the date of such note.”.

3. 1980

   Monetary Control Act of 1980

   Pub. L. 96–221 title I § 106 · 94 Stat. 131

   Struck · 12 U.S.C. § 347b

   Pub. L. 96–221 struck out second sentence of first par. relating to interest on notes under this section

   Source evidence

   Code amendment note
   Pub. L. 96–221 struck out second sentence of first par. relating to interest on notes under this section.

   Enacted provision · exact public law section
   Sec. 106. abolition of penalty rate Section 10(b) of the Federal Reserve Act (12 U.S.C. 374b) is amended by striking out the second sentence of the first paragraph.

4. 1991

   Federal Deposit Insurance Corporation Improvement Act of 1991

   Pub. L. 102–242 § 142(b) · 105 Stat. 2236

   1. Amended · 12 U.S.C. § 347b

      Pub. L. 102–242, § 142(b), designated existing provisions as subsec. (a)

   2. Inserted · 12 U.S.C. § 347b

      Pub. L. 102–242, § 142(b), inserted heading

   3. Added · 12 U.S.C. § 347b

      Pub. L. 102–242, § 142(b), added subsec. (b)

   Source evidence

   Code amendment note
   Pub. L. 102–242, § 142(b), designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

   Enacted provision · exact public law section
   (b) Limitations on Liquidity Lending for Deposit Insurance Purposes.— Section 10B of the Federal Reserve Act (as redesignated by subsection (a)) is amended— (1) by striking “Any Federal Reserve bank” and inserting “(a) In General.—Any Federal Reserve bank”; and (2) by adding at the end the following: “(b) Limitations on Advances.— “(1) Limitation on extended periods.— Except as provided in paragraph (2), no advances to any undercapitalized depository institution by any Federal Reserve bank under this section may be outstanding for more than 60 days in any 120-day period. “(2) Viability exception.— “(A) In general.— If— “(i) the head of the appropriate Federal banking agency certifies in advance in writing to the Federal Reserve bank that any depository institution is viable; or “(ii) the Board conducts an examination of any depository institution and the Chairman of the Board certifies in writing to the Federal Reserve bank that the institution is viable, the limitation contained in paragraph (1) shall not apply during the 60-day period beginning on the date such certification is received. “(B) Extensions of period.— The 60-day period may be extended for additional 60-day periods upon receipt by the Federal Reserve bank of additional written certifications under subparagraph (A) with respect to each such additional period. “(C) Authority to issue a certificate of viability may not be delegated.— The authority of the head of any agency to issue a written certification of viability under this paragraph may not be delegated to any other person. “(D) Extended advances subject to paragraph (3).— Notwithstanding paragraph (1), an undercapitalized depository institution which does not have a certificate of viability in effect under this paragraph may have advances outstanding for more than 60 days in any 120-day period if the Board elects to treat— “(i) such institution as critically undercapitalized under paragraph (3); and “(ii) any such advance as an advance described in subparagraph (A)(i) of paragraph (3). “(3) Advances to critically undercapitalized depository institutions.— “(A) Liability for increased loss.— Notwithstanding any other provision of this section, if— “(i) in the case of any critically undercapitalized depository institution— “(I) any advance under this section to such institution is outstanding without payment having been demanded as of the end of the 5-day period beginning on the date the institution becomes a critically undercapitalized depository institution; or “(II) any new advance is made to such institution under this section after the end of such period; and “(ii) after the end of that 5-day period, any deposit insurance fund in the Federal Deposit Insurance Corporation incurs a loss exceeding the loss that the Corporation would have incurred if it had liquidated that institution as of the end of that period, the Board shall, subject to the limitations in subparagraph (B), be liable to the Federal Deposit Insurance Corporation for the excess loss, without regard to the terms of the advance or any collateral pledged to secure the advance. “(B) Limitation on excess loss.— The liability of the Board under subparagraph (A) shall not exceed the lesser of the following: “(i) The amount of the loss the Board or any Federal Reserve bank would have incurred on the increases in the amount of advances made after the 5-day period referred to in subparagraph (A) if those increased advances had been unsecured. “(ii) The interest received on the increases in the amount of advances made after the 5-day period referred to in subparagraph (A). “(C) Federal reserve to pay obligation.— The Board shall pay the Federal Deposit Insurance Corporation the amount of any liability of the Board under subparagraph (A). “(D) Report.— The Board shall report to the Congress on any excess loss liability it incurs under subparagraph (A), as limited by subparagraph (B)(i), and the reasons therefore, not later than 6 months after incurring the liability. “(4) No obligation to make advances.— A Federal Reserve bank shall have no obligation to make, increase, renew, or extend any advance or discount under this Act to any depository institution. “(5) Definitions.— “(A) Appropriate federal banking agency.— The term ‘appropriate Federal banking agency’ has the same meaning as in section 3 of the Federal Deposit Insurance Act. “(B) Critically undercapitalized.— The term ‘critically undercapitalized’ has the same meaning as in section 38 of the Federal Deposit Insurance Act. “(C) Depository institution.— The term ‘depository institution’ has the same meaning as in section 3 of the Federal Deposit Insurance Act. “(D) Undercapitalized depository institution.— The term ‘undercapitalized depository institution’ means any depository institution which— “(i) is undercapitalized, as defined in section 38 of the Federal Deposit Insurance Act; or “(ii) has a composite CAMEL rating of 5 under the Uniform Financial Institutions Rating System (or an equivalent rating by any such agency under a comparable rating system) as of the most recent examination of such institution. “(E) Viable.— A depository institution is ‘viable’ if the Board or the appropriate Federal banking agency determines, giving due regard to the economic conditions and circumstances in the market in which the institution operates, that the institution— “(i) is not critically undercapitalized; “(ii) is not expected to become critically undercapitalized; and “(iii) is not expected to be placed in conservatorship or receivership.’.

5. 2006

   Federal Deposit Insurance Reform Act of 2005

   Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

   Repealed · 12 U.S.C. § 347b(b)(3)(A)(ii)

   Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(9). See 1996 Amendment note below

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(9). See 1996 Amendment note below.

   Enacted provision · exact public law section
   (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

6. 1996

   Federal Deposit Insurance Reform Act of 2005

   Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

   Changed · 12 U.S.C. § 347b(b)(3)(A)(ii)

   Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

   Source evidence

   Code amendment note
   Subsec. (b)(3)(A)(ii). Pub. L. 104—208, § 2704(d)(9), which directed the amendment of cl. (ii) by substituting “the Deposit Insurance Fund of” for “any deposit insurance fund in”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

   Enacted provision · exact public law section
   (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

7. 2006

   Federal Deposit Insurance Reform Conforming Amendments Act of 2005

   Pub. L. 109–173 § 9(c) · 119 Stat. 3601

   Substituted · 12 U.S.C. § 347b(b)(3)(A)(ii)

   Pub. L. 109–173 substituted “the Deposit Insurance Fund of” for “any deposit insurance fund in”

   Source evidence

   Code amendment note
   Subsec. (b)(3)(A)(ii). Pub. L. 109–173 substituted “the Deposit Insurance Fund of” for “any deposit insurance fund in”.

   Enacted provision · exact public law section
   (c) Advances to Critically Undercapitalized Depository Institutions.— Section 10B(b)(3)(A)(ii) of the Federal Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking “any deposit insurance fund in” and inserting “the Deposit Insurance Fund of”.

   Effective date note
   Amendment by Pub. L. 109–173 effective Mar. 31, 2006, see section 9(j) of Pub. L. 109–173, set out as a note under section 24 of this title. Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

8 of 9 references resolved to an enrolled provision · 1 partial