Federal Home Loan Bank System Modernization Act of 1997

[AI summary unavailable — showing source text] Federal Home Loan Bank System Modernization Act of 1997 - Amends the Federal Home Loan Bank Act (FHLBA) to instruct the Federal Housing Finance Board (the FHF Board) to divide the States into not fewer than one Federal Home Loan Bank district (currently 8 to 12 districts). (Sec. 4) Amends Federal Home Loan Bank (FHLB) membership parameters to make a Federal savings association's membership in the FHLB system voluntary instead of mandatory. (Sec. 5) Modifies guidelines governing long-term advances to: (1) allow advances to any community financial institution for small businesses, agricultural, rural development, or low-income community development lending; (2) make the cash (as well as the deposits) of an FHLB eligible collateral for securing a bank's interest in a loan or advance; and (3) repeal the 30 percent of capital cap on the aggregate amount of outstanding advances secured by real estate related collateral. Includes within the categories of collateral eligible for bank loan: (1) secured loans for small business, agriculture, rural development, or low-income community development, or securities representing a whole interest in such secured loans, in the case of any community …