§ 1718. Capitalization of Federal National Mortgage Association
(a)
Common stock; preferred stock; transferability of shares
The corporation shall have common stock, without par value, which shall be vested with all voting rights, each share being entitled to one vote with rights of cumulative voting at all elections of directors. The corporation may eliminate such rights of cumulative voting by a resolution adopted by its board of directors and approved by the holders of a majority of the shares of common stock voting in person or by proxy at the annual meeting, or other special meeting, at which such resolution is considered. The corporation may have preferred stock on such terms and conditions as the board of directors shall prescribe. The free transferability of the stock at all times to any person, firm, corporation, or other entity shall not be restricted except that, as to the corporation, it shall be transferable only on the books of the corporation. The corporation may issue shares of common stock in return for appropriate payments into capital or capital and surplus.
(b)
Fees and charges; annual transfer of earnings to general surplus account
(c)
Capital distributions from general surplus account; minimum capitalization levels
(1)
Except as provided in paragraph (2), the corporation may make such capital distributions (as such term is defined in section
4502 of this title) as may be declared by the board of directors. All capital distributions shall be charged against the general surplus account of the corporation.
(2)
The corporation may not make any capital distribution that would decrease the total capital of the corporation (as such term is defined in section
4502 of this title) to an amount less than the risk-based capital level for the corporation established under section
4611 of this title or that would decrease the core capital of the corporation (as such term is defined in section
4502 of this title) to an amount less than the minimum capital level for the corporation established under section
4612 of this title, without prior written approval of the distribution by the Director of the Federal Housing Finance Agency.
(d)
Institutions eligible to purchase stock
Notwithstanding any other provision of law, any institution, including a national bank or State member bank of the Federal Reserve System or any member of the Federal Deposit Insurance Corporation, trust company, or other banking organization, organized under any law of the United States, including the laws relating to the District of Columbia, shall be authorized to purchase shares of common stock of the corporation and to hold or dispose of such stock, subject to the provisions of this subchapter.