Joint and several liability.

CFR · 2024-01-01 · US · Title 12

(a) (2) Each and every Bank, individually and collectively, shall ensure that the timely payment of principal and interest on all consolidated obligations is given priority over, and is paid in full in advance of, any payment to or redemption of shares from any shareholder. (3) The provisions of this part shall not limit, restrict or otherwise diminish, in any manner, the joint and several liability of all of the Banks on any consolidated obligation. (b) (2) A Bank shall immediately provide written notice to FHFA if at any time the Bank: (i) Is unable to provide the certification required by paragraph (b)(1) of this section; (ii) Projects at any time that it will fail to comply with statutory or regulatory liquidity requirements, or will be unable to timely and fully meet all of its current obligations, including direct obligations, due during the quarter; (iii) Actually fails to comply with statutory or regulatory liquidity requirements or to timely and fully meet all of its current obligations, including direct obligations, due during the quarter; or (iv) Negotiates to enter or enters into an agreement with one or more other Banks to obtain financial assistance to meet its current obligations, including direct obligations, due during the quarter; the notice of which shall be accompanied by a copy of the agreement, which shall be subject to the approval of FHFA. (c) (i) If the Bank becomes a non-complying Bank as a result of failing to provide the certification required in p

official document · source cfr-2024 · id 12:§ 1270.10