[Congressional Record Volume 143, Number 25 (Monday, March 3, 1997)]
[Extensions of Remarks]
[Page E359]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     LEGISLATION INCLUDING SAMOA IN THE FEDERAL HOME LOAN BANK ACT

                                 ______
                                 

                       HON. ENI F.H. FALEOMAVAEGA

                           of american samoa

                    in the house of representatives

                         Monday, March 3, 1997

  Mr. FALEOMAVAEGA. Mr. Speaker, I rise today to introduce legislation 
to include American Samoa in the Federal Home Loan Bank Act.
  For decades there has been inadequate capital available to provide 
home loans to the qualified residents of American Samoa wishing to make 
loans to build homes or additions. As Samoa moved toward a credit 
economy, the mainland financial community had many questions which 
needed to be answered before they were willing to lend money in Samoa: 
Would the Samoans pay back their loans? Would the local courts enter 
judgments against locals in favor of banks? would the chiefs of 
communal lands permit purchasers of leasehold interests to reside on 
communal properties?
  Each question seemed insurmountable, but over the years we have 
overcome these hurdles, and today there is only one impediment left--a 
lack of funding at reasonable rates for home loans. Other rural areas 
have solved this problem by membership in a Federal home loan bank. In 
fact, the Federal Home Loan Bank Act makes membership available to 
banks in all 50 States, the District of Columbia, Puerto Rico, the 
Virgin Islands, and Guam. In enacting the original legislation, remote 
American Samoa, one of the areas most in need, was again left in the 
woods.
  The legislation I am introducing today makes a technical change to 
the definitions section to include American Samoa within the definition 
of a State. This small change will enable the FDIC-insured local banks 
to join a Federal home loan bank and gain access to a new source of 
funding to make loans to the residents in American Samoa. I hope my 
colleagues will join me in making this small change in the law which 
will have a significant, beneficial impact on American Samoa.

                                 H.R.--

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. AMENDMENT TO DEFINITION OF ``STATE''.

       Section 2(3) of the Federal Home Loan Bank Act (12 U.S.C. 
     1422(3)) is amended by inserting ``American Samoa,'' after 
     ``Puerto Rico,''.

                          ____________________