PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 417 SEC. 707. ELECTION OF BANK DIRECTORS. Section 7 of the Federal Home Loan Bank Act (12 U.S.C. 1427) is amended— (1) in subsection (a)— (A) by striking "appointed by the Federal Home Loan Bank Board referred to in subsection (b) of section 17, hereinafter in this section referred to as the Board" and inserting "appointed by the Board referred to in section 2A", (B) by inserting after the last sentence the following: "At least 2 of the Federal Home Loan Bank directors who are appointed by the Board shall be representatives chosen from organizations with more than a 2-year history of representing consumer or community interests on banking services, credit needs, housing, or financial consumer protections. No Federal Home Loan Bank director who is appointed pursuant to this subsection may, during such Bank director's term of office, serve as an officer of any Federal Home Loan Bank or a director or officer of any member of a Bank, or hold shares, or any other financial interest in, any member of a Bank,"; (2) by inserting after the first sentence of subsection (b) the following: "No person who is an officer or director of a member that fails to meet any applicable capital requirement is eligible to hold the office of Federal Home Loan Bank director."; (3) by amending subsection (f) to read as follows: " (f) VACANCIES. — "(1) IN GENERAL. — A Bank director appointed or elected to fill a vacancy shall be appointed or elected for the unexpired term of his or her predecessor in office, "(2) APPOINTED BANK DIRECTORS. —In the event of a vacancy in any appointive Bank directorship, such vacancy shall be filled through appointment by the Board for the unexpired term. If any appointive Bank director shall cease to have the qusdifica- tions set forth in subsection (a), the office held by such person shall immediately become vacant, but such person may con- tinue to act as a Bank director until his or her successor assumes the vacated office or the term of such office expires, whichever occurs first. "(3) ELECTED BANK DIRECTORS.— In the event of a vacancy in any elective Bank directorship, such vacancy shall be filled by an affirmative vote of a majority of the remaining Bank direc- tors, regardless of whether such remaining Bank directors con- stitute a quorum of the Bank's board of directors. A Bank director so elected shall satisfy the requirements for eligibility which were applicable to his predecessor. If any elective Bank director shall cease to have any qualification set forth in this section, the office held by such person shall immediately become vacant, and such person shall not continue to act as a Bank director."; and (4) by adding at the end the following new subsection: "(k) INDEMNIFICATION OF DIRECTORS, OFFICERS, AND EMPLOYEES.— .^ The board of directors of each Bank shall determine the terms and conditions under which such Bank may indemnify its directors, officers, employees or agents.".
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