---
kind: "section"
citation: "12 U.S.C. § 1430b"
title: "12"
title_heading: "Banks and Banking"
number: "1430b"
heading: "Advances to nonmember mortgagee; terms and conditions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1430b"
units:
  - "Chapter 11 — Federal Home Loan Banks"
---

# §1430b. Advances to nonmember mortgagee; terms and conditions

- (a) **In general—** Each [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) is authorized to make advances to nonmember [mortgagees](/usc/12/1707.md?p=b) approved under title II of the National Housing Act [[12 U.S.C. 1707](/usc/12/1707.md) et seq.]. Such [mortgagees](/usc/12/1707.md?p=b) must be chartered institutions having succession and subject to the inspection and supervision of some governmental [agency](/usc/12/1422.md?p=12), and whose principal activity in the [mortgage](/usc/12/1707.md?p=a) field must consist of lending their own funds. Such advances shall not be subject to the other provisions and restrictions of this chapter, but shall be made upon the security of insured [mortgages](/usc/12/1707.md?p=a), insured under title II of the National Housing Act. Advances made under the terms of this section shall be at such rates of interest and upon such terms and conditions as shall be determined by the [Director](/usc/12/1422.md?p=11), but no advance may be for an amount in excess of 90 per centum of the [unpaid principal](/usc/12/1422.md?p=6) of the [mortgage](/usc/12/1707.md?p=a) loan given as security.
- (b) **Exception—** An advance made to a [State](/usc/12/1422.md?p=2) housing finance [agency](/usc/12/1422.md?p=12) for the purpose of facilitating [mortgage](/usc/12/1707.md?p=a) lending that benefits individuals and families that meet the income requirements set forth in section [142(d)](/usc/26/142.md?p=d) or [143(f)](/usc/26/143.md?p=f) of title 26, need not be collateralized by a [mortgage](/usc/12/1707.md?p=a) insured under title II of the National Housing Act [[12 U.S.C. 1707](/usc/12/1707.md) et seq.] or otherwise, if—
  - (1) such advance otherwise meets the requirements of this subsection; and
  - (2) such advance meets the requirements of [section 1430(a) of this title](/usc/12/1430.md?p=a), and any [real estate](/usc/12/1707.md?p=g) collateral for such loan comprises single family or multifamily residential [mortgages](/usc/12/1707.md?p=a).

## Source credit

(July 22, 1932, ch. 522, § 10b, as added May 25, 1935, ch. 150, § 7, 49 Stat. 295; amended Pub. L. 101–73, title VII, § 701(b)(1), (3)(A), Aug. 9, 1989, 103 Stat. 412; Pub. L. 102–550, title XIII, § 1392(b), Oct. 28, 1992, 106 Stat. 4009; Pub. L. 110–289, div. A, title II, § 1204(8), July 30, 2008, 122 Stat. 2786.)

## Notes

### Editorial Notes

### References in Text

The National Housing Act, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246. Title II of the Act is classified generally to subchapter II (§ 1707 et seq.) of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

### Amendments

2008—Subsec. (a). Pub. L. 110–289 substituted “the Director” for “the Board”.

1992—Pub. L. 102–550 designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

1989—Pub. L. 101–73 substituted “Board” for “Federal Home Loan Bank Board”.