TRANSFER OF OBLIGATIONS FROM ASSOCIATIONS TO BANKS; OTHER MATTERS.

SEC. 305. TRANSFER OF OBLIGATIONS FROM ASSOCIATIONS TO BANKS; OTHER MATTERS.Section 6.26 (12 U.S.C. 2278b–6) is amended— (1) in subsection (c)— (A) in the subparagraph heading of paragraph (2)(B), by striking “institutions” and inserting “banks”; (B) by striking “institutions” each place it appears in paragraphs (2)(B), (3), and (4) and inserting “banks”; and (C) in paragraph (2), by striking subparagraphs (C) and (D) and inserting the following new subparagraph: “(C) Allocation.— During each year of the second 5-year period, each System bank shall pay to the Financial Assistance Corporation a proportion, as calculated by the Financial Assistance Corporation, of the interest due from System banks under this paragraph equal to— “(i) the amount of the average accruing retail loan volume of the bank and its affiliated associations for the preceding year; divided by “(ii) the total average accruing retail loan volume of all such banks and their affiliated associations for the preceding year.”; (2) in subsection (d)(1)— (A) by striking subparagraph (D); and (B) by redesignating subparagraph (E) as subparagraph (D); and (3) by adding at the end the following new subsection: “(e) Administration.— “(1) Definition of retail loan volume.—As used in this section, the term ‘retail loan volume’ means all loans (as defined in accordance with generally accepted accounting principles) by a System bank or association, excluding loans by such a bank or association to another System institution. “(2) Calculation of average annual loan volumes.—For purposes of this section and section 6.9, average annual loan volumes shall be calculated using month-end balances. “(3) Exclusion of banks undergoing liquidation.—For purposes of this section and section 6.9, the term ‘bank’ shall not include a bank that had entered liquidation prior to the date of enactment of this subsection.”.