FHLBs are after that protected against loss of the the extremely-lien status, which provides all of them concern on collateral more than other financial institutions-like the FDIC-when the a part facilities fails as well as the value of guarantee reduces. The brand new Aggressive Equivalence Banking Act off 1987 written you to awesome-lien status; yet not, the brand new defenses this agreed to FHLBs beyond those accessible to most other secure lenders was in fact narrowed within the 2001 by the transform towards Consistent Industrial Code. 21 (In the example of enhances in order to insurance vendors, which can be managed in another way than simply industrial banks is actually, FHLBs get most actions to preserve its usage of security-plus mortgage loans, mortgage-backed ties, and you will securities-in those claims in which the awesome-lien standing isnt set up.) 22 Because of the extremely-lien updates, loss which may or even become borne because of the FHLBs will get as an alternative end up being borne of the FDIC and uninsured depositors.