[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).