CUNA Regulatory Comment Call

February 2, 2007

Interim Final Rule on Federal Home Loan Bank Director Appointments


Please feel free to fax your responses to CUNA at 202-638-7052; e-mail them to Senior Vice President and Deputy General Counsel Mary Dunn at and to Senior Assistant General Counsel Jeff Bloch at; or mail them to Mary and Jeff in c/o CUNA’s Regulatory Advocacy Department, 601 Pennsylvania Avenue, NW, South Building, Suite 600, Washington, DC 20004-2601. You may also contact us at 800-356-9655, ext. 6732, if you have questions or would like a copy of the interim final rule. You may also access a copy of the rule at the following address:


The board of directors of each Bank is comprised of elected directors and directors who are appointed by the Board. The Board is also authorized to appoint directors for the remainder of any unexpired term. The directors that are appointed by the Board cannot serve as an officer or director of any member of the Bank. This would exclude an officer or director of a credit union that is a member of the Bank, but could include other credit union representatives.

Until now, the selection of the appointed directors has been made at the sole discretion of the Board, without any formal procedures. This interim final rule adopts procedures for this selection process under which the board of directors of each Bank will submit to the Board a list of individual to be considered, along with information regarding the individual’s eligibility and qualifications to serve as a Bank director. The Board will use this list in its selection process.


In the initial stages of the process in which the Board appoints Bank directors, each Bank will be responsible for identifying potential directors by assessing their eligibility, qualifications, abilities, and experience. Any party may submit names of potential directors to the Bank. As part of this process, a nine-page application form has been developed that must be completed for each applicant who is seeking an appointment to a Bank board of directors. The form also provides more information regarding the required criteria that the Bank uses when making these appointments.

On or before October 1st of each year, each Bank must submit to the Board a list of potential directors for the vacancies that will expire at the end of that year. (For vacancies as of January 1, 2007, the list must be submitted by March 31, 2007.) The list is to include those individuals who meet the eligibility requirements and are considered well-qualified, based on their background and experience. The number of potential directors on the list must be two times the number of vacancies that will be available for these appointed directors. Each Bank must also submit the original, executed application form for each potential director. The rule does not require a Bank to submit nominations for all vacancies at one time.

This process will also be used to appoint directors for vacancies that arise before the completion of a full term. In these situations, the Bank must promptly provide the list that will be used to fill these vacancies.

The Board will retain sole discretion when appointing individuals to these Bank board of directors and intends to appoint only those “who have demonstrated that they possess the experience necessary to serve on the board of a large and sophisticated financial institution with an important housing finance and economic development mission, such as a Bank.” As part of this process, the Board may decline to appoint any individual that appears on a Bank’s list and in these situations, the Board may direct the Bank to submit additional names for consideration.


  • Do you believe these new procedures will facilitate the possible appointment of credit union representatives to these Bank boards of directors? What changes would facilitate more credit union participation in this process?

  • How can this appointment process be publicized so that potential credit union representatives will be made aware of these opportunities?

  • Other comments?

Eric Richard • General Counsel • (202) 508-6742 •
Mary Mitchell Dunn • SVP & Deputy General Counsel • (202) 508-6736 •
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 •
Lilly Thomas • Assistant General Counsel • (202) 508-6733 •
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 •