---
kind: "section"
citation: "12 U.S.C. § 1428"
title: "12"
title_heading: "Banks and Banking"
number: "1428"
heading: "Examination of State laws, regulations, and procedures; studies of values, etc."
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1428"
units:
  - "Chapter 11 — Federal Home Loan Banks"
---

# §1428. Examination of State laws, regulations, and procedures; studies of values, etc.


The [Director](/usc/12/1422.md?p=11) shall cause to be made from time to time examinations of the laws of the various [States](/usc/12/1422.md?p=2) of the United States and the regulations and procedure thereunder governing conditions under which institutions of the kinds which may become [members](/usc/12/1422.md?p=3) or nonmember borrowers under this chapter are permitted to be formed or to do business, or relating to the conveying or recording of land titles, or to homestead and other rights, or to the enforcement of the rights of holders of [mortgages](/usc/12/1707.md?p=a) on lands securing loans, or otherwise. If any such examination shall indicate, in the opinion of the [Director](/usc/12/1422.md?p=11), that under the laws of any such [State](/usc/12/1422.md?p=2) or the regulations or procedure thereunder there would be inadequate protection to a [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) in making or collecting advances under this chapter, the [Director](/usc/12/1422.md?p=11) may withhold or limit the operation of any [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) in such [State](/usc/12/1422.md?p=2) until satisfactory conditions of law, regulation, or procedure shall be established. In any [State](/usc/12/1422.md?p=2) where [State](/usc/12/1422.md?p=2) examination of [members](/usc/12/1422.md?p=3) or nonmember borrowers is deemed inadequate for the purposes of the [Federal Home Loan Banks](/usc/12/1422.md?p=1-A), the [Director](/usc/12/1422.md?p=11) shall establish such examination, all or part of the cost of which may be considered as part of the cost of making advances in such [State](/usc/12/1422.md?p=2). The [banks](/usc/12/1422.md?p=1-A) and/or the [Director](/usc/12/1422.md?p=11) may make studies of trends of home and other property values, methods of appraisals, and other subjects such as they may deem useful for the general guidance of their policies and operations and those of institutions authorized to secure advances.


## Source credit

(July 22, 1932, ch. 522, § 8, 47 Stat. 731; Pub. L. 101–73, title VII, § 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412; Pub. L. 110–289, div. A, title II, § 1204(8), (9), July 30, 2008, 122 Stat. 2786.)

## Notes

### Editorial Notes

### Amendments

2008—Pub. L. 110–289 substituted “The Director” for “The Board” and “the Director” for “the Board” wherever appearing.

1989—Pub. L. 101–73 substituted “Board” for “board” wherever appearing.