The Board of Directors of the Federal Housing Finance Board (Finance Board) today approved a request by the Federal Home Loan Bank of Dallas (Bank) to amend its previously approved capital structure plan (Plan).
The Bank is amending its Plan to enable it to repurchase stock held to satisfy a member’s membership investment requirement when the member has been placed in receivership. In such instances, the Bank will have the discretion to repurchase membership stock before the five year notice period associated with such stock has run, upon the receiver being appointed and the Bank terminating the entity’s membership. As was the case prior to the amendment, stock held to satisfy a failed member’s activity requirement, that is, to support outstanding advances, cannot be repurchased until after all debts to the Bank have been liquidated.
The Federal Housing Finance Board is a non-appropriated funds agency that assesses the Federal Home Loan Banks for the costs of its operations.