Request to FHFA. If a Bank finds that the contributions required pursuant to § 1291.10 are contributing to the financial instability of the Bank, the Bank may apply in writing to FHFA for a temporary suspension of such contributions.
Director review—(1) Financial instability. In determining the financial instability of a Bank, the Director shall consider such factors as:
Severely depressed Bank earnings;
A substantial decline in Bank membership capital; and
A substantial reduction in Bank advances outstanding.
Limitations on grounds for suspension. The Director shall not suspend a Bank's annual AHP contributions if it determines that the Bank's reduction in earnings is due to:
A change in the terms of advances to members that is not justified by market conditions;
Inordinate operating and administrative expenses; or
Mismanagement.
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