(a) General. Unless another definition is provided in this subchapter, definitions in Parts 521, 541, and 561 of this chapter apply to terms used in this subchapter.

(b) "Act" means the Federal Home Loan Bank Act, as amended (12 U.S.C. 1421 et seq.).

(c) "Corporation" means the Federal Savings and Loan Insurance Corporation.

(d) "Directorate" means the three member board established pursuant to section 21(b) of the Act to manage the Financing Corporation.

(e) "Financing Corporation" means the Financing Corporation chartered by the Board pursuant to section 21(a) of the Act.

(f) “Financing Corporation securities" means debentures, bonds, or similar obligations of the Financing Corporation issued pursuant to sections 21(c) and (e) of the Act.

(g) "Regular assessment" means the assessment the Financing Corporation may assess on insured institutions pursuant to paragraph (1) of section 21(f) of the Act.

a

interest thereto resulting from merger, acquisition or otherwise) that has ceased to maintain its status as an insured institution.

88 592.2-592.10 [Reserved]

§ 592.11 General authority.

The Financing Corporation may exercise all authority granted it by the Act and by its charter and bylaws, whether or not implemented specifically by Board regulations, subject to the limitations and interpretations contained in this part and such orders and directions as the Board may prescribe.

§ 592.12 Assessments on insured institutions.

(a) General. The Financing Corporation may levy on, and collect (directly or through a collecting agent) from, each insured institution assessments in accordance with section 21(f) of the Act and this section.

(b) Regular assessments. (1) Pursuant to section 21(f) of the Act, and subject to the limitations of paragraph (d) of this section, the Financing Corporation may, with the approval of the Board, assess on each insured institution regular assessments, Provided That the aggregate amount assessed under this paragraph (b) on any insured institution for any year may not exceed an amount equal to 1/12th of 1 percent of the aggregate amount of all insured accounts of such institution, as calculated in the manner set forth in § 563.15 of Subchapter D.

(2) In the event of the purchase of bulk assets or the absorption by an insured institution of another institution through merger or consolidation and the issuance of insured accounts in connection therewith, the Financing Corporation may, with the approval of the Board, adjust the regular assessment of the insured institution in a manner consistent with § 563.16 of Subchapter D.

(c) Supplemental assessments. Pursuant to section 21(f)(2) of the Act and subject to the limitations of paragraph (d) of this section, if the Financing

Corporation, by unanimous vote of the Directorate, finds that additional funds are needed to pay the interest on the obligations of the Financing Corporation because no other funds are available, it may, with the approval of the Board and in addition to any assessment made pursuant to paragraph (b) of this section, assess on each insured institution an assessment, except that the aggregate amount assessed under this paragraph (c) on any insured institution for any year may not exceed an amount equal to 1/8th of 1 percent of the aggregate amount of all accounts of insured members of such insured institution.

(d) Total amount of assessments. The aggregate amount of assessments made under paragraphs (b) and (c) of this section for any year may not exceed:

(1) The aggregate amount of—

(i) Issuance costs (as such term is defined in section 21(g)(5)(A) of the Act) incurred with respect to obligations issued during such year;

(ii) Interest paid on (and any redemption premium paid with respect to) obligations of the Financing Corporation during such year; and

(iii) Custodian fees (as such term is defined in section 21(g)(5)(B) of the Act) incurred during such year; less

(2) The aggregate amount of any payments under section 21(g)(4) of the Act during such year.

(e) Termination assessments. (1) The Financing Corporation, with the approval of the Board, shall make a termination assessment on any existing institution in accordance with paragraph (4) of section 21(f) of the Act.

(2) The amount of the assessment on any institution under this paragraph (e) of this section shall be the amount equal to the sum of

(i) The amount that is equal to two times the last annual insurance premium payable by such institution, including the amount of any regular assessment imposed under this section in lieu of such premium; and

(ii) The amount that is the product of

(A) The aggregate amount of all accounts of insured members of such institution (as of the date the institution

ceases to be an insured institution); and

(B) An amount equal to two times the rate (expressed as an annual rate) at which the supplemental assessment authorized in section 404(c) of the National Housing Act was assessed against insured institutions by the Corporation in 1986.

(3) The Financing Corporation, with the approval of the Board, shall determine whether to reduce the amount of the termination assessment in accordance with paragraph (4)(C) of section 21(f) of the Act.

(4) If an assessment is imposed on an institution under paragraph (e) of this section, the institution shall be obligated to pay such assessment within the 30-day period beginning on the date on which such institution ceases to be an insured institution or within ten business days following its receipt of notice of a termination assessment, whichever is later.

(5) Notwithstanding the requirement of paragraph (e)(4) of this section, during the period beginning no later than the end of the period referred to in paragraph (e)(4) of this section and ending no later than the end of the two-year period beginning on the date such assessment is imposed, an institution may elect to pay the amount of any assessment imposed under paragraph (e) of this section in semiannual installments together with interest accruing on the unpaid balance of such amount at a variable rate equal to the sum of—

(i) The bond equivalent yield on 6month United States Treasury bills; and

(ii) 100 basis points.

Any institution making such an election shall provide the Financing Corporation with written notice of its election within 5 business days of its receipt of a termination assessment notice.

(f) Exemption from termination assessments. Notwithstanding the provisions of paragraph (e) of this section, termination assessments imposed pursuant to paragraph (e) of this section shall not be imposed on institutions exempted from such assessments pursuant to section 21(f)(4)(F) of the Act.

(g) Repayment to exempted institutions. Upon presentation of a written application and documentation to the Corporation within one year from September 3, 1987, the Corporation shall repay to institutions described in paragraph (f) of this section an amount equal to the amount by which any exit fee previously imposed on such institution exceeds the amount such institution would be required to pay under paragraph (e) of this section.

88 592.13-592.16 [Reserved]

§ 592.17 Book-entry procedure for Financing Corporation securities.

(a) A Federal Reserve Bank is hereby authorized to apply book-entry

procedure to Financing Corporation securities.

(b) The book-entry procedure for Financing Corporation securities shall be governed by the book-entry procedure established for Federal Home Loan Bank securities, codified at Part 506a of Subchapter A of this chapter, and wherever the term "Federal Home Loan Bank" shall appear in said part, the term shall also be construed to mean the "Financing Corporation," if appropriate, to accomplish the purposes of this section.