Central Bank, National Ass'n v. Federal Home Loan Bank

This action is brought by Central Bank, a commercial banking institution, which is seeking (1) a declaratory judgment that the defendant Federal Home Loan Bank of San Francisco (FHLB) is without authority under the Federal Home Loan Bank Act, 12 U.S.C. § 1421 et seq., to engage in the business of money order banking, and (2) a permanent injunction to FHLB barring it from engaging in such business. Defendant FHLB has moved for dismissal on grounds of lack of subject matter jurisdiction and failure to state a claim, or, alternatively, for summary judgment. Plaintiff Central Bank seeks a partial summary judgment on the issue of FHLB’s authority to engage in money order banking, and the issue of whether a new contract between FHLB and United California Bank (UCB) placed FHLB in the money order banking business. The court has jurisdiction under 28 U.S.C. §§ 1331 , 1337, 1361 and 2201, and 5 U.S.C. § 701 et seq.

FACTS

There are twelve regional Federal Home Loan Banks. These are federal institutions which were created during the Depression to provide a long-term and continuous supply of mortgage credit to the nation’s homeowners and to establish, encourage and serve their…