---
kind: "section"
citation: "12 C.F.R. § 1291.11"
title: "12"
number: "1291.11"
heading: "Temporary suspension of AHP contributions."
url: "https://uscodex.org/cfr/12/1291.11"
---

# §1291.11. Temporary suspension of AHP contributions.

- (a) **Request to FHFA.** If a Bank finds that the contributions required pursuant to [§ 1291.10](/cfr/12/1291.10.md) are contributing to the financial instability of the Bank, the Bank may apply in writing to FHFA for a temporary suspension of such contributions.
- (b) **Director review—**
  - (1) **Financial instability.** In determining the financial instability of a Bank, the Director shall consider such factors as:
    - (i) Severely depressed Bank earnings;
    - (ii) A substantial decline in Bank membership capital; and
    - (iii) **A substantial reduction in Bank advances outstanding.**
  - (2) **Limitations on grounds for suspension.** The Director shall not suspend a Bank's annual AHP contributions if it determines that the Bank's reduction in earnings is due to:
    - (i) A change in the terms of advances to members that is not justified by market conditions;
    - (ii) Inordinate operating and administrative expenses; or
    - (iii) **Mismanagement.**

## Notes

### Authority

Authority: 12 U.S.C. 1430(j).

### Source

Source: 83 FR 61231, Nov. 28, 2018, unless otherwise noted.