Temporary suspension of AHP contributions.

(a) Request to FHFA. If a Bank finds that the contributions required pursuant to § 1291.10 are contributing to the financial instability of the Bank, the Bank may apply in writing to FHFA for a temporary suspension of such contributions. (b) Director review —(1) Financial instability. In determining the financial instability of a Bank, the Director shall consider such factors as: (i) Severely depressed Bank earnings; (ii) A substantial decline in Bank membership capital; and (iii) A substantial reduction in Bank advances outstanding. (2) Limitations on grounds for suspension. The Director shall not suspend a Bank's annual AHP contributions if it determines that the Bank's reduction in earnings is due to: (i) A change in the terms of advances to members that is not justified by market conditions; (ii) Inordinate operating and administrative expenses; or (iii) Mismanagement.