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§ 1455. —  Obligations and securities of the Corporation.

WAIS Document Retrieval



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1455]

 
                       TITLE 12--BANKS AND BANKING
 
           CHAPTER 11A--FEDERAL HOME LOAN MORTGAGE CORPORATION
 
Sec. 1455. Obligations and securities of the Corporation


(a) Authority to issue; terms and conditions; validity

    The Corporation is authorized, upon such terms and conditions as it 
may prescribe, to borrow, to give security, to pay interest or other 
return, and to issue notes, debentures, bonds, or other obligations, or 
other securities, including without limitation mortgage-backed 
securities guaranteed by the Government National Mortgage Association in 
the manner provided in section 1721(g) of this title. Any obligation or 
security of the Corporation shall be valid and binding notwithstanding 
that a person or persons purporting to have executed or attested the 
same may have died, become under disability, or ceased to hold office or 
employment before the issuance thereof.

(b) Prohibitions and restrictions; creation of liens and charges; rank 
        and priority; causes of action to enforce; jurisdiction; service 
        of process

    The Corporation may, by regulation or by writing executed by the 
Corporation, establish prohibitions or restrictions upon the creation of 
indebtedness or obligations of the Corporation or of liens or charges 
upon property of the Corporation, including after-acquired property, and 
create liens and charges, which may be floating liens or charges, upon 
all or any part or parts of the property of the Corporation, including 
after-acquired property. Such prohibitions, restrictions, liens, and 
charges shall have such effect, including without limitation on the 
generality of the foregoing such rank and priority, as may be provided 
by regulations of the Corporation or by writings executed by the 
Corporation, and shall create causes of action which may be enforced by 
action in the United States District Court for the District of Columbia 
or in the United States district court for any judicial district in 
which any of the property affected is located. Process in any such 
action may run to and be served in any judicial district or any place 
subject to the jurisdiction of the United States.

(c) Purchase of obligations; funds, maximum amount of purchases, etc.

    (1) The Secretary of the Treasury may purchase any obligations 
issued under subsection (a) of this section. For such purpose, the 
Secretary may use as a public debt transaction the proceeds of the sale 
of any securities issued under chapter 31 of title 31, and the purposes 
for which securities may be issued under such chapter are extended to 
include such purpose.
    (2) The Secretary of \1\ Treasury shall not at any time purchase any 
obligations under this subsection if the purchase would increase the 
aggregate principal amount of the outstanding holdings of obligations 
under this subsection by the Secretary to an amount greater than 
$2,250,000,000.
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    \1\ So in original. Probably should be ``of the''.
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    (3) Each purchase of obligations by the Secretary of the Treasury 
under this subsection shall be upon terms and conditions established to 
yield a rate of return determined by the Secretary to be appropriate, 
taking into consideration the current average rate on outstanding 
marketable obligations of the United States as of the last day of the 
month preceding the making of the purchase.
    (4) The Secretary of the Treasury may at any time sell, upon terms 
and conditions and at prices determined by the Secretary, any of the 
obligations acquired by the Secretary under this subsection.
    (5) All redemptions, purchases and sales by the Secretary of the 
Treasury of obligations under this subsection shall be treated as public 
debt transactions of the United States.

(d) Validity of provisions; validity of restrictions, prohibitions, 
        liens, or charges

    The provisions of this section and of any restriction, prohibition, 
lien, or charge referred to in subsection (b) of this section shall be 
fully effective notwithstanding any other law, including without 
limitation on the generality of the foregoing any law of or relating to 
sovereign immunity or priority.

(e) Authority to purchase, hold, or invest by person, trust, or 
        organization

    (1) Any person, trust, or organization created pursuant to or 
existing under the laws of the United States or any State shall be 
authorized to purchase, hold, and invest in mortgages, obligations, or 
other securities which are or have been sold by the Corporation pursuant 
to this section or pursuant to section 1454 of this title to the same 
extent that such person, trust, or organization is authorized under any 
applicable law to purchase, hold, or invest in obligations issued by or 
guaranteed as to principal and interest by the United States or any 
agency or instrumentality thereof. Where State law limits the purchase, 
holding, or investment in obligations issued by the United States by 
such a person, trust, or organization, such Corporation mortgages, 
obligations, and other securities shall be considered to be obligations 
issued by the United States for purposes of the limitation.
    (2) The provisions of paragraph (1) shall not apply with respect to 
a particular person, trust, or organization or class thereof in any 
State which, after December 21, 1979, enacts a statute which 
specifically names the Corporation and either prohibits or provides for 
a more limited authority to purchase, hold, or invest in such securities 
by such person, trust, or organization or class thereof than is provided 
in paragraph (1). The enactment by any State of any statute of the type 
described in the preceding sentence shall not affect the validity of any 
contractual commitment to purchase, hold, or invest which was made prior 
thereto.
    (3) Any authority granted by paragraph (1) and not granted by any 
other Federal statute shall expire as of the end of June 30, 1985. Such 
expiration shall not affect the validity of any contractual commitment 
to purchase, hold, or invest which was made prior thereto pursuant to 
paragraph (1), and shall not affect the validity of any contractual 
commitment or other action to purchase, hold, or invest pursuant to any 
other authorization.

(f) Preferred stock

    The Corporation may have preferred stock on such terms and 
conditions as the Board of Directors shall prescribe. Any preferred 
stock shall not be entitled to vote with respect to the election of any 
member of the Board of Directors.

(g) Securities exempt from regulation

    All securities issued or guaranteed by the Corporation (other than 
securities guaranteed by the Corporation that are backed by mortgages 
not purchased by the Corporation) shall, to the same extent as 
securities that are direct obligations of or obligations guaranteed as 
to principal or interest by the United States, be deemed to be exempt 
securities within the meaning of the laws administered by the Securities 
and Exchange Commission.

(h) Securities backed by mortgages not purchased by Corporation

    (1) The Corporation may not guarantee mortgage-backed securities or 
mortgage related payment securities backed by mortgages not purchased by 
the Corporation.
    (2) The Corporation shall insert appropriate language in all of the 
obligations and securities of the Corporation issued under this section 
and section 1454 of this title clearly indicating that such obligations 
and securities, together with the interest thereon, are not guaranteed 
by the United States and do not constitute a debt or obligation of the 
United States or any agency or instrumentality thereof other than the 
Corporation.

(i) Prohibition on assessment or collection of fee or charge by United 
        States

    Except for fees paid pursuant to sections 1452(c) \2\ and 1455(c) 
\2\ of this title and assessments pursuant to section 4516 \2\ of this 
title, no fee or charge may be assessed or collected by the United 
States (including any executive department, agency, or independent 
establishment of the United States) on or with regard to the purchase, 
acquisition, sale, pledge, issuance, guarantee, or redemption of any 
mortgage, asset, obligation, or other security by the Corporation. No 
provision of this subsection shall affect the purchase of any obligation 
by any Federal home loan bank pursuant to section 1452(a) of this title.
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    \2\ See References in Text note below.
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(j) Notes, debentures, or substantially identical types of unsecured 
        obligations; issuance, maturities, interest rates, etc.

    (1) Any notes, debentures, or substantially identical types of 
unsecured obligations of the Corporation evidencing money borrowed, 
whether general or subordinated, shall be issued upon the approval of 
the Secretary of the Treasury and shall have such maturities and bear 
such rate or rates of interest as may be determined by the Corporation 
with the approval of the Secretary of the Treasury.
    (2) Any notes, debentures, of \3\ substantially identical types of 
unsecured obligations of the Corporation having maturities of 1 year or 
less that the Corporation has issued or is issuing as of August 9, 1989, 
shall be deemed to have been approved by the Secretary of the Treasury 
as required by this subsection. Such deemed approval shall expire 365 
days after August 9, 1989.
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    \3\ So in original. Probably should be ``or''.
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    (3) Any notes, debentures, or substantially identical types of 
unsecured obligations of the Corporation having maturities of more than 
1 year that the Corporation has issued or is issuing as of August 9, 
1989, shall be deemed to have been approved by the Secretary of the 
Treasury as required by this subsection. Such deemed approval shall 
expire 60 days after August 9, 1989.

(k) Securities in form of debt obligations or trust certificates of 
        beneficial interest; issuance, maturities, interest rates, etc.

    (1) Any securities in the form of debt obligations or trust 
certificates of beneficial interest, or both, and based upon mortgages 
held and set aside by the Corporation, shall be issued upon the approval 
of the Secretary of the Treasury and shall have such maturities and 
shall bear such rate or rates of interest as may be determined by the 
Corporation with the approval of the Secretary of the Treasury.
    (2) Any securities in the form of debt obligations or trust 
certificates of beneficial interest, or both, and based upon mortgages 
held and set aside by the Corporation, that the Corporation has issued 
or is issuing as of August 9, 1989, shall be deemed to have been 
approved by the Secretary of the Treasury as required by this 
subsection.

(Pub. L. 91-351, title III, Sec. 306, July 24, 1970, 84 Stat. 455; Pub. 
L. 96-153, title III, Sec. 316(a), Dec. 21, 1979, 93 Stat. 1118; Pub. L. 
97-289, Sec. 6, Oct. 6, 1982, 96 Stat. 1232; Pub. L. 98-35, Sec. 5, May 
26, 1983, 97 Stat. 198; Pub. L. 98-440, title II, Secs. 210, 211, Oct. 
3, 1984, 98 Stat. 1697; Pub. L. 100-242, title IV, Sec. 441(b), Feb. 5, 
1988, 101 Stat. 1921; Pub. L. 101-73, title VII, Sec. 731(g)-(i), Aug. 
9, 1989, 103 Stat. 434; Pub. L. 102-550, title XIII, Sec. 1382(n), Oct. 
28, 1992, 106 Stat. 4005.)

                       References in Text

    Section 1452(c) of this title, referred to in subsec. (i), was 
redesignated section 1452(d) of this title by Pub. L. 101-73, title VII, 
Sec. 731(c)(1), Aug. 9, 1989, 103 Stat. 431.
    Section 1455(c) of this title, referred to in subsec. (i), was in 
the original a reference to section ``1316(c) of this Act'', and was 
translated as meaning a reference to section 306(c) of Pub. L. 91-351, 
which is classified to subsec. (c) of this section, to reflect the 
probable intent of Congress. Pub. L. 91-351 does not contain a section 
1316.
    Section 4516 of this title, referred to in subsec. (i), was in the 
original ``section 106 of the Federal Housing Enterprises Financial 
Safety and Soundness Act of 1992'', and was translated as meaning 
section 1316 of that Act, which is classified to section 4516 of this 
title, to reflect the probable intent of Congress. The Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 does not contain 
a section 106.


                               Amendments

    1992--Subsec. (h). Pub. L. 102-550, Sec. 1382(n)(1), designated 
existing provisions as par. (1) and added par. (2).
    Subsec. (i). Pub. L. 102-550, Sec. 1382(n)(2), substituted 
``sections 1452(c) and 1455(c) of this title and assessments pursuant to 
section 4516 of this title'' for ``section 1452(c) or 1455(c) of this 
title''.
    1989--Subsec. (c). Pub. L. 101-73, Sec. 731(g), amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``The 
Federal home loan banks shall, to such extent as the Board of Directors 
may prescribe, guarantee the faithful and timely performance by the 
Corporation of any obligation or undertaking of the Corporation on or 
with respect to any security (which term as used in this sentence shall 
not include the capital stock referred to in section 1453 of this 
title).''
    Subsec. (f). Pub. L. 101-73, Sec. 731(h), amended subsec. (f) 
generally. Prior to amendment, subsec. (f) read as follows: ``The 
Corporation may have preferred stock on such terms and conditions as the 
Board of Directors shall prescribe. Any preferred stock shall not affect 
the status of the capital stock issued under section 1453 of this title 
as nonvoting common stock, and shall not be entitled to vote with 
respect to the election of any member of the Board of Directors. Such 
preferred stock, or any class thereof, may have such terms as would be 
required for listing of preferred stock on the New York Stock Exchange, 
except that this sentence does not apply to any preferred stock, or 
class thereof, the initial sale of which is made directly or indirectly 
by the Corporation exclusively to any Federal Home Loan Bank or Banks.''
    Subsecs. (j), (k). Pub. L. 101-73, Sec. 731(i), added subsecs. (j) 
and (k).
    1988--Subsec. (i). Pub. L. 100-242 added subsec. (i).
   

	 
	 


































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