POWERS AND DUTIES OF BANKS.

SEC. 709. POWERS AND DUTIES OF BANKS. Section 11 of the Federal Home Loan Bank Act (12 U.S.C. 1431) is amended— (1) in subsection (e)(1), by inserting “incidental to activities” after “not”; (2) in subsection (f), by striking out “or whenever in the judgment of at least 4 members of the board an emergency exists requiring such action”; (3) by amending subsection (k) to read as follows: “(k) Bank Loans to SAIF.— “(1) Loans authorized.—Subject to paragraph (3), the Federal Home Loan Banks may, upon the request of the Federal Deposit Insurance Corporation, make loans to such Corporation for the use of the Savings Association Insurance Fund. “(2) Liability of the fund.—Any loan by a Federal Home Loan Bank pursuant to paragraph (1) shall be a direct liability of the Savings Association Insurance Fund. “(3) Interest on and security for such loans.—Any loan by a Federal Home Loan Bank pursuant to paragraph (1) shall— “(A) bear a rate of interest not less than such Bank’s current marginal cost of funds, taking into account the maturities involved; and “(B) be adequately secured.”.