Eligible institutions. (1) A Bank, upon receipt of a written request from the OCC, with respect to a federal savings association, or from the FDIC, with respect to a state chartered savings association, may make short-term advances to a savings association member pursuant to section 10(h) of the Bank Act (12 U.S.C. 1430(h)).
Such request must certify that the savings association member:
Is solvent but presents a supervisory concern to the OCC or FDIC, as appropriate, because of the member's financial condition; and
Has reasonable and demonstrable prospects of returning to a satisfactory financial condition.
Terms and conditions. Advances made by a Bank to a member savings association under this section shall:
Be subject to all applicable collateral requirements of the Bank, this part and section 10(a) of the Bank Act (12 U.S.C. 1430(a)); and
Be at the interest rate applicable to advances of similar type and maturity that are made available to other members that do not pose such a supervisory concern.
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