12 CFR 955.2 - Authorization to hold acquired member assets.
Subject to the requirements of part 980 of this chapter, each Bank may hold assets acquired from or through Bank Systemmembers or housing associates by means of either a purchase or a funding transaction (AMA), subject to each of the following requirements:
(a)Loan type requirement. The assets are either:
(i) Single-family mortgages where the loan amount exceeds the limits established pursuant to 12 U.S.C. 1717(b)(2); and
(ii) Loans made to an entity, or secured by property, not located in a state;
(2) Whole loans secured by manufactured housing, regardless of whether such housing qualifies as residential real property; or
(3)State and local housing finance agency bonds;
(b)Member or housing associate nexus requirement. The assets are:
(2) Acquired either:
(ii) From a member or housing associate of another Bank, pursuant to an arrangement with that Bank, which, in the case of state and local finance agency bonds only, may be reached in accordance with the following process:
(A) The housing finance agency shall first offer the Bank in whose district the agency is located (local Bank) a right of first refusal to purchase, or negotiate the terms of, its proposed bond offering;
(B) If the local Bank indicates, within a three day period, that it will negotiate in good faith to purchase the bonds, the agency may not offer to sell or negotiate the terms of a purchase with another Bank; and
(C) If the local Bank declines the offer, or has failed to respond within the three day period, the acquiring Bank will be considered to have an arrangement with the local Bank for purposes of this section and may offer to buy or negotiate the terms of a bond sale with the agency;
(iii) From another Bank; and
(c)Credit risk-sharing requirement. The transactions through which the Bank acquires the assets either:
(1) Meet the credit risk-sharing requirements of § 955.3 of this part; or
Title 12 published on 2015-12-05
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 12 CFR Part 955 after this date.
Title 12 published on 2015-12-05.
The following are only the Rules published in the Federal Register after the published date of Title 12.
For a complete list of all Rules, Proposed Rules, and Notices view the Rulemaking tab.