Limitations on access to advances.

CFR · 2024-01-01 · US · Title 12

(a) (1) Limit or deny a member's application for an advance if, in the Bank's judgment, such member: (i) Is engaging or has engaged in any unsafe or unsound banking practices; (ii) Has inadequate capital; (iii) Is sustaining operating losses; (iv) Has financial or managerial deficiencies, as determined by the Bank, that bear upon the member's creditworthiness; or (v) Has any other deficiencies, as determined by the Bank; or (2) Make advances and renewals only if the Bank determines that it may safely make such advance or renewal to the member, including advances and renewals made pursuant to this section. (b) (2) A Bank shall use the most recently available Thrift Financial Report, Report of Condition, and Income or other regulatory report of financial condition to determine whether a member has positive tangible capital. (c) (2) (d) (2)(i) A Bank shall not lend to a capital deficient member that has positive tangible capital if it receives written notice from the appropriate federal banking agency or insurer that the member's use of Bank advances has been prohibited. The Bank shall promptly provide the FHFA with a copy of any such notice. (ii) A Bank may resume lending to such a capital deficient member if the Bank receives a written statement (e) (2) Each Bank shall, upon written request from a member's appropriate federal banking agency or insurer, provide to such entity information on advances and commitments outstanding to the member. (f) (g) (2) Each Bank shall include

official document · source cfr-2024 · id 12:§ 1266.4