Eligibility requirements for member directors. Each member director, and each nominee to a member directorship, shall be:

A citizen of the United States; and

An officer or director of a member that is located in the district in which the Bank is located and that meets all minimum capital requirements established by its appropriate Federal banking agency or appropriate State regulator. In the case of a director elected by the members, the institution of which the director is an officer or director must have been a member as of the record date. In the case of a director elected by a Bank's board of directors to fill a vacancy, the institution of which the director is an officer or director must be a member at the time the board acts.

State designation for member directors. Each member director, and each nominee to a member directorship, shall be an officer or director of a member that is located in the State to which the Director has allocated such directorship under § 1261.4(c).

Eligibility requirements for independent directors. Each independent director, and each nominee to an independent directorship, shall be:

A citizen of the United States; and

A bona fide resident of the district in which the Bank is located.

Restrictions. (1) A nominee is not eligible if he or she:

Is an incumbent director, unless:

The incumbent director's term of office would expire before the new term of office would begin; and

The new term of office would not be barred by the term limit provision of section 7(d) of the Bank Act (12 U.S.C. 1427(d)); or

Is a former director whose service would be barred by the term limit provision of section 7(d) of the Bank Act.

For purposes of applying the term limit provision of section 7(d) of the Bank Act (12 U.S.C. 1427(d)):

A term of office that is adjusted after July 30, 2008 to a period of fewer than four years shall not be deemed to be a full term;

Any member director's election and service to a directorship with a three year term of office prior to July 30, 2008 shall be deemed to be a full term;

Any three-year term of office that ends immediately before a term of office that is adjusted after July 30, 2008 to a period of fewer than four years, and any term of office commencing immediately following such adjusted term of office, shall constitute consecutive full terms of office; and

Any period of time served by a director who has been elected by the board of directors to fill a vacancy shall not be deemed to constitute a full term.

Loss of eligibility. A director shall become ineligible to remain in office if, during his or her term of office, the directorship to which he or she has been elected is eliminated. The incumbent director shall become ineligible after the close of business on December 31 of the year in which the directorship is eliminated.