FINANCING CORPORATION.

SEC. 512. FINANCING CORPORATION. Section 21 of the Federal Home Loan Bank Act (12 U.S.C. 1441) is amended— (1) by striking “insured institution” each place it appears and inserting “Savings Association Insurance Fund member”; (2) by striking “Federal Home Loan Bank Board” and “Board” each place they appear and inserting “Federal Housing Finance Board”; (3) in subsection (c)(2), by inserting before the period the following: “prior to the date of the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and thereafter to transfer the proceeds of any obligation issued by the Financing Corporation to the FSLIC Resolution Fund”; (4) in subsection (c)(9) by striking “or section 402(b) of the National Housing Act”; (5) by amending the portion of subsection (d)(4) appearing before the table to read as follows: “Of the first $1,000,000,000 in the aggregate which the Oversight Board pursuant to section 21B or the Federal Housing Finance Board under this section (as the case may be) may require the Federal Home Loan Banks collectively to invest in the stock of the Funding Corporation or invest in the capital stock of the Financing Corporation, respectively, the amount which each Federal Home Loan Bank (or any successor to such Bank) shall invest shall be determined by the Oversight Board or the Federal Housing Finance Board (as the case may be) by multiplying the aggregate amount of such payment or investment by all Banks by the percentage appearing in the following table for each such Bank.”; (6) in subsection (d)(5), by striking “$1,000,000,000 which the Board” and inserting “the $1,000,000,000 amount referred to in paragraph (4) which the Federal Housing Finance Board”; 103 STAT. 407 (7) in subsection (d)(6)(A)(iii), by striking “available for dividends”; (8) in subsection (d)(6)(D), by striking “available for dividends”; (9) in subsection (d)(6)(E), by striking “available for dividends”; (10) by striking subsection (d)(6)(F) and adding at the end of subsection (1) the following: “(4) Net earnings defined.—The term ‘net earnings’ means net earnings without reduction for any chargeoffs or expenses incurred by a Bank in connection with the purchase of capital stock of the Financing Corporation or the purchase of stock of the Funding Corporation required by the Oversight Board under subsections (e) and (0 of section 21B.”; (11) in subsection (e)(3)(A)— (A) by striking “used to”; (B) by inserting “used to” before “purchase” and “refund”; and (C) by inserting before the semicolon the following: “prior to the enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and thereafter transferred to the FSLIC Resolution Fund”; (12) in subsection (e)— (A) by striking paragraph (2) and redesignating paragraphs (3) through (10) as paragraphs (2) through (9), respectively, and (B) in paragraph (6) as redesignated, by striking “the Federal Savings and Loan Insurance Corporation” and inserting “the FSLIC Resolution Fund”; (13) by striking subsection (f) and inserting the following: “(f) Sources of Funds for Interest Payments; Financing Corporation Assessment Authority.—The Financing Corporation shall obtain funds for anticipated interest payments, issuance costs, and custodial fees on obligations issued hereunder from the following sources: “(1) Preenactment assessments.—The Financing Corporation assessments which were assessed on insured institutions pursuant to this section as in effect prior to the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. “(2) New assessment authority.—To the extent the amounts available pursuant to paragraph (1) are insufficient to cover the amount of interest payments, issuance costs, and custodial fees, the Financing Corporation, with the approval of the Board of Directors of the Federal Deposit Insurance Corporation, shall assess against each Savings Association Insurance Fund member an assessment (in the same manner as assessments are assessed against such members by the Federal Deposit Insurance Corporation under section 7 of the Federal Deposit Insurance Act), except that— “(A) the sum of— “(i) the amount assessed under this paragraph; and “(ii) the amount assessed by the Funding Corporation under section 21B; shall not exceed the amount authorized to be assessed against Savings Association Insurance Fund members pursuant to section 7 of the Federal Deposit Insurance Act; 103 STAT. 408 “(B) the Financing Corporation shall have first priority to make the assessment; and “(C) the amount of the applicable assessment determined under such section 7 shall be reduced by the sum described in subparagraph (A) of this paragraph. “(3) Receivership proceeds.—To the extent the amounts available pursuant to paragraphs (1) and (2) are insufficient to cover the amount of interest payments, issuance costs, and custodial fees, and if the funds are not required by the Resolution Funding Corporation to provide funds for the Funding Corporation Principal Fund under section 21B, the Federal Deposit Insurance Corporation shall transfer to the Financing Corporation, from the liquidating dividends and payments made on claims received by the FSLIC Resolution Fund (established under section 11A of the Federal Deposit Insurance Act) from receiverships, the remaining amount of funds necessary for the Financing Corporation to make interest payments.”; (14) in subsection (g)(1) by striking “National Housing Act,” and inserting “National Housing Act before the date of enactment of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and after such date in capital certificates issued by the FSLIC Resolution Fund,”; (15) in subsection (g), by inserting the following at the end of paragraph (2): “For purposes of the foregoing, the Financing Corporation shall be deemed to hold noninterest bearing instruments that it lends temporarily to primary United States Treasury dealers in order to enhance market liquidity and facilitate deliveries, provided that United States Treasury securities of equal or greater value have been delivered as collateral.”; (16) in subsection (j), by striking subparagraph (A) of paragraph (1) and inserting the following: “(A) the maturity and full payment of all obligations issued by the Financing Corporation pursuant to this section; or”; and (17) in subsection (1)— (A) by striking paragraph (1) and inserting the following: (1) Savings association insurance fund member.—The term ‘Savings Association Insurance Fund member’ means a savings association which is a Savings Association Insurance Fund member as defined by section 7(1) of the Federal Deposit Insurance Act.”; and (B) by striking paragraph (2) and redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.