rule
type: GovernmentService
name: Use of Community Development Loans by Community Financial Institutions To Secure Advances; Secured Lending by Federal Home Loan Banks to Members and Their Affiliates; Transfer of Advances and New Business Activity Regulations
description: Section 1211 of the Housing and Economic Recovery Act of 2008 (HERA) amended the Federal Home Loan Bank Act (Bank Act) to expand the types of eligible collateral that community financial institution (CFI) members may pledge to secure Federal Home Loan Bank (Bank) advances to include secured loans for community development activities and to allow Banks to make long term advances to CFI members for purposes of financing community development activities. Section 1211 further provides that the Federal Housing Finance Agency (FHFA) shall define the term "community development activities" by regulation. To implement these provisions, FHFA is amending the advances regulation to allow CFI members to pledge community development loans as collateral for advances and is adopting a definition of "community development" as proposed. The final rule also will transfer the advances and new business activities rules from parts 950 and 980 of the Federal Housing Finance Board (FHFB) regulations, to new parts 1266 and 1272 of the FHFA regulations, respectively, and make other conforming amendments. Finally, the final rule will make a change to the advances regulation to incorporate a long-standing policy previously established by the FHFB that secured lending to a member of any Bank is an advance that must meet the requirements of the advances regulation. The final rule language has been clarified to assure that certain types of transactions, such as derivatives, will not be considered secured lending for the purposes of this provision. The new provision addressing secured lending does not include a prohibition on secured transactions with affiliates of members, as was initially proposed.
date published: 2010-12-09
start time: 2011-01-10
provider: US Federal Housing Finance Agency
citation: DigitalDocument
license: https://creativecommons.org/publicdomain/zero/1.0/
source: https://www.federalregister.gov/documents/2010/12/09/2010-30519/use-of-community-development-loans-by-community-financial-institutions-to-secure-advances-secured
source organization: US Federal Register
publisher: AI Analytics

PropertyValue
property ID: Federal Register Document Number
value: 2010-30519

PropertyValue
property ID: Federal Register Citation
value: 75 FR 76617

PropertyValue
property ID: CFR Reference
value: 12 CFR 950

AI Analytics
type: Organization