(c) Prohibition against disclosure. Except as provided in this part, no officer, employee, or agent of the Board or of any Federal Home Loan Bank shall disclose or permit the disclosure of any unpublished information of the Board to anyone (other than an officer, employee, or agent of the Board or of a Federal Home Loan Bank properly entitled to such information for the performance of his official duties), whether by giving out or furnishing such information or a copy thereof or by allowing any person to inspect, examine, or copy such information or copy thereof, or otherwise. Notwithstanding the foregoing, unpublished economic, statistical or similar information or unpublished information regarding interpretations by the Board of statutory or regulatory provisions may be disclosed, orally or in writing, by any officer, employee, or agent of the Board or of any Federal Home Loan Bank, acting in his capacity as agent of the Board, who has knowledge of the subject matter to any person who, in the judgment of such officer, employee, or agent, has a proper interest therein, subject, however, to the restrictions stated in § 505.5 and this § 505.6.

505.7 Subpoenas.

(a) Advice by person served. If any person, whether or not an officer or employee of the Board or of a Federal Home Loan Bank, has information of the Board that may not be disclosed under this part and in connection therewith is served with a subpoena, order, or other process requiring his personal attendance as a witness or the production of documents or information in any proceeding, he shall promptly advise the Board of such service and of all relevant facts, including the documents and information requested and any facts which may be of assistance to the Board in determining whether such documents or information should be made available; and he shall take action at the appropriate time to advise the court or tribunal which issued the process and the attorney for the party at whose instance the process was issued, if known, of the substance of these rules.

(b) Appearance by person served. Except as the Board has authorized disclosure of the relevant information, or except as authorized by law, any person who has information of the Board that may not be disclosed under this part and

is required to respond to a subpoena or other legal process shall attend at the time and place therein mentioned and respectfully decline to produce such information or give any testimony with respect thereto, basing his refusal upon this part. If, notwithstanding, the court or other body orders the disclosure of such information or the giving of such testimony, the person having such information of the Board shall continue respectfully to decline to produce such information and shall promptly report the facts to the Board for such action as the Board may deem appropriate.

§ 505.8 Appeals.

Any person who believes himself aggrieved by the denial to him of any information or record of the Board pursuant to this part may make written application, stating the grounds thereof, to the General Counsel of the Board for redress. The General Counsel shall promptly advise the applicant of his determination as to the disposition of the application. The applicant may appeal the determination of the General Counsel to the Board for review, by written application addressed to the Office of the Secretary at the address set forth in § 505.4(d). The Board shall act upon such application within a reasonable time and shall promptly notify the applicant of its determination.

[36 F.R. 11185, June 10, 1971]

Sec. 506.1

506.2 506.3

PART 506-BONDS AND
DEBENTURES

Issuance of consolidated bonds.

Form of consolidated bonds.

Transactions in consolidated bonds

(transfers, exchanges, redemptions, etc.).

506.4 Lost, stolen, destroyed, mutilated, or defaced bonds.

506.5 506.6

Administrative provision.

Reservation of right to revoke or amend; limitations thereon.

AUTHORITY: The provisions of this Part 506 Issued under secs. 11, 17, 47 Stat. 733, as amended, 736, as amended; 12 U.S.C. 1431, 1437, Reorg. Plan. No. 3 of 1947; 3 CFR, 1943-1948 Comp.

SOURCE: The provisions of this Part 506 appear at 23 F.R. 9878, Dec. 23, 1958, unless otherwise noted.

§ 506.1 Issuance of consolidated bonds.

The Board will determine and authorize the issuance of all consolidated Fed

eral Home Loan Bank bonds, dates of issue, maturities, rates of interest, terms and conditions thereof, and the manner in which such bonds shall be issued, subject to the provisions of section 303 of the Government Corporation Control Act so far as applicable. The Board shall not issue consolidated bonds in excess of 12 times the total paid-in capital stock and reserves under section 16 of the Federal Home Loan Bank Act, as amended, of all the Federal Home Loan Banks. The Federal Home Loan Banks shall at all times maintain assets of the following types, free from any lien or pledge, in a total amount at least equal to the amount of consolidated bonds outstanding: (a) Cash; (b) obligations of or fully guaranteed by the United States; (c) secured advances; and (d) mortgages as to which one or more Federal Home Loan Banks have any guaranty or insurance, or commitment therefor, by the United States or any agency thereof. § 506.2 Form of consolidated bonds.

Consolidated Federal Home Loan Bank bonds shall be issued in series and all consolidated bonds of the same series shall be of like date, tenor, and effect except as to denominations, which shall be in such amounts as may be authorized by the Board. The form of each consolidated bond shall be prescribed by the Board. The Board may, in its discretion from time to time, issue interim certificates temporarily in lieu of definitive consolidated bonds. Consolidated bonds issued with maturities of 1 year or less may be designated consolidated notes. § 506.3 Transactions in consolidated bonds (transfers, exchanges, redemptions, etc.).

The general regulations of the Treasury Department now or hereafter in force governing transactions in United States securities, except subpart O of Treasury Department Circular No. 300 (31 CFR Part 306, as amended) regarding bookentry procedure, are hereby adopted, so far as applicable and as necessarily modifiled to relate to consolidated Federal home loan bank bonds, as the regulations of the Board for similar transactions in consolidated Federal home loan bank bonds. Book-entry procedure for consolidated Federal home loan bank bonds is contained in part 506a of this subchapter.

[38 FR 26355, Sept. 20, 1973]

39-057-75-14

§ 506.4 Lost, stolen, destroyed, mutilated, or defaced bonds.

The statutes of the United States now or hereafter in force, and the regulations of the Treasury Department, now or hereafter in force, governing relief on account of the loss, theft, destruction, mutilation, or defacement of United States securities, so far as applicable and as necessarily modified to relate to consolidated Federal Home Loan Bank bonds, are hereby adopted as the regulations of the Board for the issuance of substitute consolidated Federal Home Loan Bank bonds or the payment of lost, stolen, destroyed, mutilated, or defaced consolidated Federal Home Loan Bank bonds.

§ 506.5 Administrative provision.

The Secretary of the Treasury, or the Acting Secretary of the Treasury, is hereby authorized and empowered, as the agent of the Board and the Federal Home Loan Banks, to administer the regulations of the Board adopted by §§ 506.3 and 506.4, and to delegate such authority at his discretion to other officers, employees, and agents of the United States Treasury Department. Any such regulations may be waived on behalf of the Board and the Federal Home Loan Banks by the Secretary of the Treasury or the Acting Secretary of the Treasury or by an officer of the United States Treasury Department authorized to waive similar regulations with respect to United States securities, but only in any particular case in which a similar regulation, with respect to United States Securities would be waived. The terms "securities" and "bonds" as used in this section shall, unless the context otherwise requires, include and apply to coupons and interim certificates.

§ 506.6

Reservation of right to revoke or amend; limitations thereon. The right to revoke or amend this part, or to prescribe and issue supplemental or amendatory rules and regulations, is hereby reserved: Provided however, That no revocation or relaxation of any of the restrictions or requirements contained in or imposed by the last two sentences of § 506.1 shall be effected unless there are no consolidated Federal Home Loan Bank bonds then outstanding or unless there shall have been deposited with the Treasurer of the United States, for the payment of the

88

AUTHORITY. Sec. 11, 47 Stat. 733, amended; sec. 17, 47 Stat. 736, as amended, 12 U.S.C. 1431, 1437; Reorg. Plan No. 3 of 1947, 12 FR 4981, 3 CFR, 1947 Supp.

SOURCE: 38 FR 26355, Sept. 20, 1973, unless otherwise noted.

§ 506a.1 Definition of terms.

In this part, unless the context otherwise requires or indicates:

(a) "Reserve bank" means the Federal Reserve Bank of New York (and any other Federal Reserve bank which agrees to issue Federal home loan bank securities in book-entry form) acting as fiscal agent of the Federal home loan banks and, when indicated, acting in its individual capacity.

(b) "Federal home loan bank security" means a consolidated bond or consolidated note of the Federal home loan banks issued by the Federal Home Loan Bank Board under the Federal Home Loan Bank Act, as amended, in the form of a definitive Federal home loan bank security or a book-entry Federal home loan bank security.1

1 Consolidated bonds issued with maturities of 1 year or less may be designated consolidated notes.

(c) "Definitive Federal home loan bank security" means a Federal home loan bank security in engraved or printed form.

(d) "Book-entry Federal home loan bank security" means a Federal home loan bank security in the form of an entry made as prescribed in this part on the records of a Reserve bank.

(e) "Pledge" includes a pledge of, or any other security interest in, Federal home loan bank securities as collateral for loans or advances or to secure deposits of public monies or the performance of an obligation.

(f) "Date of call" is the date fixed in the official notice of call published in the FEDERAL REGISTER on which the Federal home loan banks will make payment of the security before maturity in accordance with its terms.

(g) "Member bank" means any national bank, State bank or bank or trust company which is a member of a Reserve bank.

§ 506a.2 Authority of Reserve banks.

Each Reserve bank is hereby authorized, in accordance with the provisions of this part, to (a) issue book-entry Federal home loan bank securities by means of entries on its records which shall include the name of the depositor, the amount, the series, and maturity date; (b) effect conversions between book-entry Federal home loan bank securities and definitive Federal home loan bank securities; (c) otherwise service and maintain book-entry Federal home loan bank securities; and (d) issue a confirmation of transaction in the form of a written advice (serially numbered or otherwise) which specifies the amount and description of any securities, that is, series and maturity date, sold or transferred and the date of the transaction. § 506a.3 Scope and effect of book-entry procedure.

(a) A Reserve bank as fiscal agent of the Federal home loan banks may apply the book-entry procedure provided for in this part to any Federal home loan bank securities which have been or are hereafter deposited for any purpose in accounts with it in its individual capacity under terms and conditions which indicate that the Reserve bank will continue to maintain such deposit accounts in its individual capacity, notwithstanding application of the book-entry proce

dure to such securities. This paragraph is applicable, but not limited, to such securities deposited:

(1) As collateral pledged to a Reserve bank (in its individual capacity) for advances by it;

(2) By a member bank for its sole account;

(3) By a member bank held for the account of its customers;

(4) In connection with deposits in a member bank of funds of States, municipalities, or other political subdivisions; or

(5) In connection with the performance of an obligation or duty under Federal, State, municipal, or local law, or judgments or decrees of courts.

The application of the book-entry procedure under this paragraph shall not derogate from or adversely affect the relationships that would otherwise exist between a Reserve bank in its individual capacity and its depositors concerning any deposits under this paragraph. Whenever the book-entry procedure is applied to such Federal home loan bank securities, the Reserve bank is authorized to take all action necessary in respect of the book-entry procedure to enable such Reserve bank in its individual capacity to perform its obligations as depositary with respect to such Federal home loan bank securities.

(b) A Reserve bank as fiscal agent of the Federal home loan banks may apply the book-entry procedure to Federal home loan bank securities deposited as collateral pledged to the United States under Treasury Department Circulars Nos. 92 and 176, both as revised and amended, and may apply the book-entry procedure, with the approval of the Secretary of the Treasury, to any other Federal home loan bank securities deposited with a Reserve bank as fiscal agent of the United States.

(c) Any person having an interest in Federal home loan bank securities which are deposited with a Reserve bank (in either its individual capacity or as fiscal agent of the United States) for any purpose shall be deemed to have consented to their conversion to book-entry Federal home loan bank securities pursuant to the provisions of this part, and in the manner and under the procedures prescribed by the Reserve bank.

(d) No deposits shall be accepted under this section on or after the date of maturity or call of the securities.

§ 506a.4 Transfer or pledge.

(a) A transfer or a pledge of book-entry Federal home loan bank securities to a Reserve bank (in its individual capacity or as fiscal agent of the United States), or to the United States, or to any transferee or pledgee eligible to maintain an appropriate book-entry account in its name with a Reserve bank under this part, is effected and perfected, notwithstanding any provision of law to the contrary, by a Reserve bank making an appropriate entry in its records of the securities transferred or pledged. The making of such an entry in the records of a Reserve bank shall (1) have the effect of a delivery in bearer form of definitive Federal home loan bank securities; (2) have the effect of a taking of delivery by the transferee or pledgee; (3) constitute the transferee or pledgee a holder; and (4) if a pledge, effect a perfected security interest therein in favor of the pledgee. A transfer or pledge of book-entry Federal home loan bank securities effected under this paragraph shall have priority over any transfer, pledge, or other interest, theretofore or thereafter effected or perfected under paragraph (b) of this section or in any other manner.

(b) A transfer or a pledge of transferable Federal home loan bank securities, or any interest therein, which is maintained by a Reserve bank (in its individual capacity or as fiscal agent of the United States) in a book-entry account under this part, including securities in book-entry form under § 506a.3 (a) (3) of the "General Regulations" of the Federal Home Loan Bank Board, is effected, and a pledge is perfected, by any means that would be effective under applicable law to effect a transfer or to effect and perfect a pledge of the Federal home loan bank securities, or any interest therein, if the securities were maintained by the Reserve bank in bearer definitive form. For purposes of transfer or pledge hereunder, bookentry Federal home loan bank securities maintained by a Reserve bank shall, notwithstanding any provision of law to the contrary, be deemed to be maintained in bearer definitive form. A Reserve bank maintaining book-entry Federal home loan bank securities either in its individual capacity or as fiscal agent of the United States is not a bailee for purposes of notification of pledges of those securities under this paragraph, or

name

a third person in possession for purposes of acknowledgment of transfers thereof under this paragraph. Where transferable Federal home loan bank securities are recorded on the books of a depositary (a bank, banking institution, financial firm, or similar party, which regularly accepts in the course of its business Federal home loan bank securities as a custodial service for customers, and maintains accounts in the reflecting of such customers ownership of or interest in such securities) for account of the pledgor or transferor thereof and such securities are on deposit with a Reserve bank in a bookentry account hereunder, such depositary shall, for purposes of perfecting a pledge of such securities or effecting delivery of such securities to a purchaser under applicable provisions of law, be the bailee to which notification of the pledge of the securities may be given or the third person in possession from which acknowledgement of the holding of the securities for the purchaser may be obtained. A Reserve bank will not accept notice or advice of a transfer or pledge effected or perfected under this paragraph, and any such notice or advice shall have no effect. A Reserve bank may continue to deal with its depositor in accordance with the provisions of this part, notwithstanding any transfer or pledge effected or perfected under this paragraph.

(c) No filing or recording with a public recording office or officer shall be necessary or effective with respect to any transfer or pledge of book-entry Federal home loan bank securities or any interest therein.

(d) A Reserve bank shall, upon receipt of appropriate instructions, convert book-entry Federal home loan bank securities into definitive Federal home loan bank securities and deliver them in accordance with such instructions; no such conversion shall affect existing interests in such Federal home loan bank securities.

(e) A transfer of book-entry Federal home loan bank securities within a Reserve bank shall be made in accordance with procedures established by the Reserve bank not inconsistent with this part. The transfer of book-entry Federal home loan bank securities by a Reserve bank may be made through a telegraphic transfer procedure.

(f) All requests for transfer or withdrawal must be made prior to the maturity or date of call of the securities. § 506a.5 Withdrawal of Federal home loan bank securities.

(a) A depositor of book-entry Federal home loan bank securities may withdraw them from a Reserve bank by requesting delivery of like definitive Federal home loan bank securities to itself or on its order to a transferee.

(b) Federal home loan bank securities which are actually to be delivered upon withdrawal may be issued in bearer form only until the date of the first issue of such securities in registered form; thereafter, all Federal home loan bank securities, regardless of form of original issue, which are actually to be delivered upon withdrawal may be issued in bearer or registered form.

§ 506a.6 Delivery of Federal home loan bank securities.

A Reserve bank which has received Federal home loan bank securities and effected pledges, made entries regarding them, or transferred or delivered them according to the instructions of its depositor is not liable for conversion or for participation in breach of fiduciary duty even though the depositor had no right to dispose of or take other action in respect of the securities. A Reserve bank shall be fully discharged of its obligations under this part by the delivery of Federal home loan bank securities in definitive form to its depositor or upon the order of such depositor. Customers of a member bank or other depositary (other than a Reserve bank) may obtain Federal home loan bank securities in definitive form only by causing the depositor of the Reserve bank to order the withdrawal thereof from the Reserve bank.

§ 506a.7 Registered bonds and notes.

Registered Federal home loan bank securities deposited with a Reserve bank for any purpose specified in § 506a.3 shall be assigned for conversion to book-entry Federal home loan bank securities. The assignment, which shall be executed in accordance with the provisions of Subpart F of 31 CFR Part 306, as far as applicable, shall be to "Federal Reserve Bank of as fiscal agent of the Federal home loan banks, for conversion to book-entry Federal home loan bank securities."

111)