§ 2288. — Bank obligations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2288]
TITLE 12--BANKS AND BANKING
CHAPTER 24--FEDERAL FINANCING BANK
Sec. 2288. Bank obligations
(a) Maximum amount of obligations issued publicly and outstanding at any
one time
The Bank is authorized, with the approval of the Secretary of the
Treasury, to issue publicly and have outstanding at any one time not in
excess of $15,000,000,000, or such additional amounts as may be
authorized in appropriations Acts, of obligations having such maturities
and bearing such rate or rates of interest as may be determined by the
Bank. Such obligations may be redeemable at the option of the Bank
before maturity in such manner as may be stipulated therein. So far as
is feasible, the debt structure of the Bank shall be commensurate with
its asset structure.
(b) Purchase and sale of obligations of Federal Financing Bank by
Secretary of the Treasury as public debt transactions
The Bank is also authorized to issue its obligations to the
Secretary of the Treasury and the Secretary of the Treasury may in his
discretion purchase or agree to purchase any such obligations, and for
such purpose the Secretary of the Treasury is authorized to use as a
public debt transaction the proceeds of the sale of any securities
hereafter issued under chapter 31 of title 31, and the purposes for
which securities may be issued under chapter 31 of title 31 are extended
to include such purchases. Each purchase of obligations by the Secretary
of the Treasury under this subsection shall be upon such terms and
conditions as to yield a return at a rate not less than a rate
determined by the Secretary of the Treasury, taking into consideration
the current average yield on outstanding marketable obligations of the
United States of comparable maturity. The Secretary of the Treasury may
sell, upon such terms and conditions and at such price or prices as he
shall determine, any of the obligations acquired by him under this
subsection. All purchases and sales by the Secretary of the Treasury of
such obligations under this subsection shall be treated as public debt
transactions of the United States.
(c) Authority of Federal Financing Bank to require Secretary of the
Treasury to purchase obligations of the Bank
The Bank may require the Secretary of the Treasury to purchase
obligations of the Bank issued pursuant to subsection (b) of this
section in such amounts as will not cause the holding by the Secretary
of the Treasury resulting from such required purchases to exceed
$5,000,000,000 at any one time. This subsection shall not be construed
as limiting the authority of the Secretary to purchase obligations of
the Bank in excess of such amount.
(d) Bank obligations as lawful investments
Obligations of the Bank issued pursuant to this section shall be
lawful investments, and may be accepted as security for all fiduciary,
trust, and public funds, the investment or deposit of which shall be
under the authority or control of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, or any territory or
possession of the United States, or any agency or instrumentality of any
of the foregoing, or any officer or officers thereof.
(Pub. L. 93-224, Sec. 9, Dec. 29, 1973, 87 Stat. 939.)
Codification
In subsec. (b), ``chapter 31 of title 31'' substituted for ``the
Second Liberty Bond Act'' on authority of Pub. L. 97-258, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title
31, Money and Finance.
