---
kind: "section"
citation: "12 C.F.R. § 1268.3"
title: "12"
number: "1268.3"
heading: "Asset requirement."
url: "https://uscodex.org/cfr/12/1268.3"
---

# §1268.3. Asset requirement.


Assets that qualify as AMA shall be limited to the following:

- (a) Whole loans that are eligible to secure advances under [§ 1266.7(a)(1)(i)](/cfr/12/1266.7.md?p=a-1-i),
- (a)
  - (2)
    - (ii) , (a)(4), or (b)(1) of this chapter, excluding:
  - (1) Single-family mortgage loans where the loan amount exceeds the limits established pursuant to [12 U.S.C. 1717(b)(2)](/usc/12/1717.md?p=b-2), unless the loan is guaranteed or insured by an agency or department of the U.S. government, in which case the limits in [12 U.S.C. 1717(b)(2)](/usc/12/1717.md?p=b-2) do not apply; and
  - (2) Loans made to an entity, or secured by property, not located in a state;
- (b) Whole loans secured by manufactured housing, regardless of whether such housing qualifies as residential real property under applicable state law;
- (c) State and local housing finance agency bonds; or
- (d) **Certificates representing interests in whole loans if—**
  - (1) The loans qualify as AMA under paragraphs [(a)](#a) or [(b)](#b) of this section and meet the nexus requirement of [§ 1268.4](/cfr/12/1268.4.md); and
  - (2) **The certificates—**
    - (i) Meet the credit enhancement requirements of [§ 1268.5](/cfr/12/1268.5.md);
    - (ii) Are issued pursuant to an agreement between the Bank and a participating financial institution to share risks consistent with the requirements of this part; and
    - (iii) **Are acquired substantially by the initiating Bank or Banks.**

## Notes

### Authority

Authority: 12 U.S.C. 1430, 1430b, 1431, 4511, 4513, 4526.

### Source

Source: 81 FR 91688, Dec. 19, 2016, unless otherwise noted.