AUTHORITY TO REDUCE DISTRICTS.

SEC. 1210. AUTHORITY TO REDUCE DISTRICTS. Section 3 of the Federal Home Loan Bank Act (12 U.S.C. 1423) is amended—(1) by striking “As soon” and inserting “(a) In General.—As soon”; and(2) by adding at the end the following:“(b) Authority To Reduce Districts.—Notwithstanding subsection (a), the number of districts may be reduced to a number less than 8—“(1) pursuant to a voluntary merger between Banks, as approved pursuant to section 26(b); or“(2) pursuant to a decision by the Director to liquidate a Bank pursuant to section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.”.