12 USC 1424 - Eligibility for membership

(a) Criteria for eligibility 

(1) In general 
Any building and loan association, savings and loan association, cooperative bank, homestead association, insurance company, savings bank, community development financial institution, or any insured depository institution (as defined in section 1422 of this title), shall be eligible to become a member of a Federal Home Loan Bank if such institution
(A) is duly organized under the laws of any State or of the United States;
(B) is subject to inspection and regulation under the banking laws, or under similar laws, of the State or of the United States or, in the case of a community development financial institution, is certified as a community development financial institution under the Community Development Banking and Financial Institutions Act of 1994 [12 U.S.C. 4701 et seq.].;[1] and

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(C) makes such home mortgage loans as, in the judgment of the Director, are long-term loans (except that in the case of a savings bank, this subparagraph applies only if, in the judgment of the Director, its time deposits, as defined in section 461 of this title, warrant its making such loans).
(2) Qualified thrift lender 
An insured depository institution that is not a member on January 1, 1989, may become a member of a Federal Home Loan Bank only if
(A) the insured depository institution (other than a community financial institution) has at least 10 percent of its total assets in residential mortgage loans;
(B) the insured depository institutions financial condition is such that advances may be safely made to such institution; and
(C) the character of its management and its home-financing policy are consistent with sound and economical home financing.
(3) Certain institutions 
An insured depository institution commencing its initial business operations after January 1, 1989, may become a member of a Federal Home Loan Bank if it complies with regulations and orders prescribed by the Director for the 10 percent asset requirement (described in the[2] paragraph (2)) within one year after the commencement of its operations.
(4) Limited exemption for community financial institutions 
A community financial institution that otherwise meets the requirements of paragraph (2) may become a member without regard to the percentage of its total assets that is represented by residential mortgage loans, as described in subparagraph (A) of paragraph (2).
(b) Location requirement 
An institution eligible to become a member under this section may become a member only of, or secure advances from, the Federal Home Loan Bank of the district in which is located the institutions principal place of business, or of the bank of a district adjoining such district, if demanded by convenience and then only with the approval of the Director.
(c) Inspection and regulation requirements 
Notwithstanding the provisions of clause (2) of subsection (a) of this section requiring inspection and regulation under law as a condition with respect to eligibility for membership, any building and loan association which would be eligible to become a member of a Federal Home Loan Bank except for the fact that it is not subject to inspection and regulation under the banking laws or similar laws of the State in which such association is organized shall, upon subjecting itself to such inspection and regulation as the Director shall prescribe, be eligible to become a member.
[1] So in original.
[2] So in original. The word “the” probably should not appear.