---
kind: "section"
citation: "12 U.S.C. § 1446"
title: "12"
title_heading: "Banks and Banking"
number: "1446"
heading: "Liquidation or reorganization; acquisition of assets by other banks; assumption of liabilities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1446"
units:
  - "Chapter 11 — Federal Home Loan Banks"
---

# §1446. Liquidation or reorganization; acquisition of assets by other banks; assumption of liabilities

- (a) **In general—** Whenever the [Director](/usc/12/1422.md?p=11) finds that the efficient and economical accomplishment of the purposes of this chapter will be aided by such action, and in accordance with such rules, regulations, and orders as the [Director](/usc/12/1422.md?p=11) may prescribe, any [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) may be liquidated or reorganized, and its stock paid off and retired in whole or in part in connection therewith after paying or making provision for the payment of its liabilities. In the case of any such liquidation or reorganization, any other [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) may, with the approval of the [Director](/usc/12/1422.md?p=11), acquire assets of any such liquidated or reorganized [bank](/usc/12/1422.md?p=1-A) and assume liabilities thereof, in whole or in part. At least 30 days prior to liquidating or reorganizing any [Bank](/usc/12/1422.md?p=1-A) under this section, the [Director](/usc/12/1422.md?p=11) shall notify the [Bank](/usc/12/1422.md?p=1-A) of its determination and the facts and circumstances upon which such determination is based. The [Bank](/usc/12/1422.md?p=1-A) may contest that determination in a hearing before the [Director](/usc/12/1422.md?p=11), in which all issues shall be determined on the record pursuant to [section 554 of title 5](/usc/5/554.md).
- (b) **Voluntary mergers authorized—**
  - (1) **In general—** Any [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) may, with the approval of the [Director](/usc/12/1422.md?p=11) and of the [boards](/usc/12/1861.md?p=b-3) of [directors](/usc/12/1422.md?p=11) of the [Banks](/usc/12/1422.md?p=1-A) involved, merge with another [Bank](/usc/12/1422.md?p=1-A).
  - (2) **Regulations required—** The [Director](/usc/12/1422.md?p=11) shall promulgate regulations establishing the conditions and procedures for the consideration and approval of any voluntary merger described in [paragraph (1)](#b-1), including the procedures for [Bank](/usc/12/1422.md?p=1-A) [member](/usc/12/1422.md?p=3) approval.

## Source credit

(July 22, 1932, ch. 522, § 26, 47 Stat. 740; 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), 1209, 1214, July 30, 2008, 122 Stat. 2786, 2789, 2791.)

## Notes

### Editorial Notes

### Amendments

2008—Pub. L. 110–289, § 1209, designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

Pub. L. 110–289, § 1204(8), substituted “the Director” for “the Board” wherever appearing.

Subsec. (a). Pub. L. 110–289, § 1214, which directed insertion of “At least 30 days prior to liquidating or reorganizing any Bank under this section, the Director shall notify the Bank of its determination and the facts and circumstances upon which such determination is based. The Bank may contest that determination in a hearing before the Director, in which all issues shall be determined on the record pursuant to section 554 of title 5.” at the end of this section, was executed by making the insertion at the end of subsec. (a), to reflect the probable intent of Congress and the amendment by Pub. L. 110–289, § 1209. See above.

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