CFR > Title 12 - Banks and Banking > CHAPTER IX—FEDERAL HOUSING FINANCE BOARD > SUBCHAPTER G—FEDERAL HOME LOAN BANK ASSETS AND OFF-BALANCE SHEET ITEMS (parts 950 to 956) > PART 950—ADVANCES > SUBPART A—Advances to Members (§950.1 to §950.15) > 950.11—Capital stock requirements; unilateral redemption of excess stock.

950.11—Capital stock requirements; unilateral redemption of excess stock.

(a) Capital stock requirement for advances. At no time shall the aggregate amount of outstanding advances made by a Bank to a member exceed 20 times the amount paid in by such member for capital stock in the Bank.
(b) Unilateral redemption of excess capital stock; fee in lieu prohibited. (1) A Bank, after providing 15 calendar days advance written notice to a member, may require the redemption of that amount of the member's Bank capital stock that exceeds the capital stock requirements set forth in paragraph (a) of this section, provided the minimum amount required in section 6(b)(1) of the Act (12 U.S.C. 1426(b)(1)) is maintained. The Bank shall have the discretion to determine the timing of such unilateral redemption. The Bank's implementation of its redemption policy shall be consistent with the requirement of section 7(j) of the Act (12 U.S.C. 1427(j)) that the affairs of the Bank shall be administered fairly and impartially and without discrimination in favor of or against any member borrower.
(2) A Bank may not impose on or accept from a member a fee in lieu of redeeming the member's excess Bank capital stock.

Code of Federal Regulations

[58 FR 29469, May 20, 1993, as amended at 64 FR 16791, Apr. 6, 1999; 65 FR 8263, Feb. 18, 2000; 65 FR 13870, Mar. 15, 2000. Redesignated at 65 FR 44430, July 18, 2000, as amended at 67 FR 12851, Mar. 20, 2002]

Code of Federal Regulations

Effective Date Note: At 75 FR 76623, Dec. 9, 2011, § 950.11 was redesignated as § 1266.11 and revised, effective Jan. 10, 2011. For the convenience of the user, the revised text is set forth as follows: