# 12 CFR § 1266.3: Purpose of long-term advances; Proxy test

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.3

## Section

- **Citation:** 12 CFR § 1266.3
- **Heading:** Purpose of long-term advances; Proxy test
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** September 22, 2026
- **Source:** Publisher's official text
- **Location:** Title 12—Banks and Banking > CHAPTER XII—FEDERAL HOUSING FINANCE AGENCY > SUBCHAPTER D—FEDERAL HOME LOAN BANKS > PART 1266—ADVANCES > Subpart A—Advances to Members

## Text

(a) A Bank shall make long-term advances only for the purpose of enabling any member to purchase or fund new or existing residential housing finance assets.
(b)(1) Prior to approving an application for a long-term advance, a Bank shall determine that the principal amount of all long-term advances currently held by the member does not exceed the total book value of residential housing finance assets held by such member. The Bank shall determine the total book value of such residential housing finance assets, using the most recent Thrift Financial Report, Report of Condition and Income, financial statement or other reliable documentation made available by the member.
(2) Applications for CICA advances are exempt from the requirements of paragraph (b)(1) of this section.
[75 FR 76623, Dec. 9, 2010]

## Nearby sections

- [12 CFR § 1266.1 § 1266.1 Definitions.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.1.md)
- [12 CFR § 1266.2 § 1266.2 Authorization and application for advances; obligation to repay advances.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.2.md)
- [12 CFR § 1266.3 § 1266.3 Purpose of long-term advances; Proxy test.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.3.md)
- [12 CFR § 1266.4 § 1266.4 Limitations on access to advances.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.4.md)
- [12 CFR § 1266.5 § 1266.5 Terms and conditions for advances.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.5.md)
- [12 CFR § 1266.6 § 1266.6 Fees.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.6.md)
- [12 CFR § 1266.7 § 1266.7 Collateral.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.7.md)
- [12 CFR § 1266.8 § 1266.8 Banks as secured creditors.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.8.md)
- [12 CFR § 1266.9 § 1266.9 Pledged collateral; verification.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.9.md)
- [12 CFR § 1266.10 § 1266.10 Collateral valuation; appraisals.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.10.md)
- [12 CFR § 1266.12 § 1266.12 Intradistrict transfer of advances.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.12.md)
- [12 CFR § 1266.13 § 1266.13 Special advances to savings associations.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.13.md)
- [12 CFR § 1266.14 § 1266.14 Advances to the Savings Association Insurance Fund.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.14.md)
- [12 CFR § 1266.15 § 1266.15 Liquidation of advances upon termination of membership.](https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.15.md)

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-12-1266.3. Check the current official text before relying on it. Not legal advice.