12 U.S.C. § 1718 : US Code - Section 1718: Capitalization of Federal National Mortgage Association

Search 12 U.S.C. § 1718 : US Code - Section 1718: Capitalization of Federal National Mortgage Association

(a) Common stock; preferred stock; transferability of shares
The corporation shall have common stock, without par value, which
shall be vested with all voting rights, each share being entitled
to one vote with rights of cumulative voting at all elections of
directors. The corporation may eliminate such rights of cumulative
voting by a resolution adopted by its board of directors and
approved by the holders of a majority of the shares of common stock
voting in person or by proxy at the annual meeting, or other
special meeting, at which such resolution is considered. The
corporation may have preferred stock on such terms and conditions
as the board of directors shall prescribe. The free transferability
of the stock at all times to any person, firm, corporation, or
other entity shall not be restricted except that, as to the
corporation, it shall be transferable only on the books of the
corporation. The corporation may issue shares of common stock in
return for appropriate payments into capital or capital and
surplus.
(b) Fees and charges; annual transfer of earnings to general
surplus account
(1) The corporation may impose charges or fees, which may be
regarded as elements of pricing, with the objective that all costs
and expenses of the operations of the corporation should be within
its income derived from such operations and that such operations
should be fully self-supporting.
(2) All earnings from the operations of the corporation shall
annually be transferred to the general surplus account of the
corporation. At any time, funds of the general surplus account may,
in the discretion of the board of directors, be transferred to
reserves.
(c) Capital distributions from general surplus account; minimum
capitalization levels
(1) Except as provided in paragraph (2), the corporation may make
such capital distributions (as such term is defined in section 4502
of this title) as may be declared by the board of directors. All
capital distributions shall be charged against the general surplus
account of the corporation.
(2) The corporation may not make any capital distribution that
would decrease the total capital of the corporation (as such term
is defined in section 4502 of this title) to an amount less than
the risk-based capital level for the corporation established under
section 4611 of this title or that would decrease the core capital
of the corporation (as such term is defined in section 4502 of this
title) to an amount less than the minimum capital level for the
corporation established under section 4612 of this title, without
prior written approval of the distribution by the Director of the
Office of Federal Housing Enterprise Oversight of the Department of
Housing and Urban Development.
(d) Institutions eligible to purchase stock
Notwithstanding any other provision of law, any institution,
including a national bank or State member bank of the Federal
Reserve System or any member of the Federal Deposit Insurance
Corporation, trust company, or other banking organization,
organized under any law of the United States, including the laws
relating to the District of Columbia, shall be authorized to
purchase shares of common stock of the corporation and to hold or
dispose of such stock, subject to the provisions of this
subchapter.