Modernization Act Amendment to Long-term Advances Purpose Provision for CFI Members Sample Clauses

Modernization Act Amendment to Long-term Advances Purpose Provision for CFI Members. Section 10(a) of the Bank Act formerly provided that all long-term advances shall be made only for the purpose of providing funds for residential housing finance. See 12 U.S.C. 1430(a) (1994). This purpose is set forth in current § 950.14(a), and is implemented by use of a proxy test set forth in current § 950.14(b). 12 CFR 950.14(a), (b). Specifically, current § 950.14(b)(1) provides that, before funding a long- term advance (i.e., an advance with a maturity greater than five years), a Bank shall determine that the principal amount of all long-term advances currently held by the member does not exceed the total book value of the member’s ‘‘residential housing finance assets.’’ 12 CFR 950.1, 950.14(b)(1). ‘‘Residential housing finance assets’’ are defined in current § 950.1 to mean any of the following: (1) Loans secured by residential real property; (2) mortgage- backed securities; (3) participations in loans secured by residential real property; (4) loans or investments financed by advances made pursuant to a CICA program; (5) loans secured by manufactured housing, regardless of whether such housing qualifies as residential real property; or (6) any loans or investments which the Finance Board, in its discretion, otherwise determines to be residential housing finance assets. 12 CFR 950.1. Current § 950.14(b)(1) requires a Bank to determine the total book value of the member’s residential housing finance assets using the most recent Thrift Financial Report, Report of Condition and Income, or financial statement made available by the member. 12 CFR 950.14(b)(1). This proxy test was determined by the Finance Board to be an operationally feasible compliance monitoring mechanism for residential housing finance assets to implement the statutory requirement that long-term advances be only for residential housing finance purposes. See 57 FR 45338 (Oct. 1, 1992). The Modernization Act amended section 10(a) of the Bank Act to provide that a Bank may make long-term advances not only for the purpose of providing funds for residential housing finance, but also for the purpose of providing funds to any CFI for small businesses, small farms and small agri- businesses. See Modernization Act, section 604(a)(3). Accordingly, consistent with the proposed rule, the final rule amends current § 950.14 by adding this new purpose in redesignated § 950.3. Section 950.3(a) of the final rule provides that a Bank shall make long-term advances only for the purpose of enabling any me...
Sample 1Sample 2Sample 3
AutoNDA by SimpleDocs

Related to Modernization Act Amendment to Long-term Advances Purpose Provision for CFI Members

  • C-TPAT Any Supplier providing goods under this Order where the final destination of such goods is the U.S. agrees that it: (a) is certified under C- TPAT; (b) is certified under an Authorized Economic Operator program that is mutually recognized by C-TPAT ( a “Mutually Recognized AEO”); or (c) has developed and implemented or shall develop and implement within sixty (60) days of acceptance of this Order supply chain security procedures compliant with C- TPAT or a Mutually Recognized AEO. Any Supplier providing goods under this Order where the final destination of such goods is the outside of the U.S. agrees that it is either: (i) certified under a government-approved supply chain security program (such as an AEO program or similar program); or (ii) has developed and implemented or shall develop and implement within sixty (60) days of acceptance of this Order adequate supply chain security procedures as determined by Buyer in its sole discretion. If Buyer does not consider Supplier’s supply chain security procedures to be adequate, Buyer may require Supplier to implement measures to improve its supply chain security program. Upon Buyer’s written request and with reasonable advance notice, Supplier shall give Buyer and its designated agents access to Supplier’s records and facilities for the purpose of verifying and auditing Supplier’s compliance with C-TPAT, a Mutually Recognized AEO or applicable government-approved supply chain security program. Supplier agrees to notify Buyer of any event that has resulted in or threatens the loss of Supplier’s C-TPAT, Mutually Recognized AEO or other government-approved supply chain security program certification (if it has such certification) or alternatively jeopardizes Buyer’s C-TPAT certification.

Time is Money Join Law Insider Premium to draft better contracts faster.