§ 1291.11. Temporary suspension of AHP contributions.
136 words·~1 min read·
/us/cfr/t12/s§ 1291.11·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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.