§ 2294. — Payments on behalf of public bodies.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC2294]
TITLE 12--BANKS AND BANKING
CHAPTER 24--FEDERAL FINANCING BANK
Sec. 2294. Payments on behalf of public bodies
(a) Notwithstanding any other provision of this chapter, the
purchase by the Bank of the obligations of any local public body or
agency within the United States shall be made upon such terms and
conditions as may be necessary to avoid an increase in borrowing costs
to such local public body or agency as a result of the purchase by the
Bank of its obligations. The head of the Federal agency guaranteeing
such obligations, in consultation with the Secretary of the Treasury,
shall estimate the borrowing costs that would be incurred by the local
public body or agency if its obligations were not sold to the Bank.
(b) The Federal agency guaranteeing obligations purchased by the
Bank may contract to make periodic payments to the Bank which shall be
sufficient to offset the costs to the Bank of purchasing obligations of
local public bodies or agencies upon terms and conditions as prescribed
in this section rather than as prescribed by section 2285 of this title.
Such contracts may be made in advance of appropriations therefor, and
appropriations for making payments under such contracts are hereby
authorized.
(Pub. L. 93-224, Sec. 16, Dec. 29, 1973, 87 Stat. 941.)
Section Referred to in Other Sections
This section is referred to in section 2294a of this title; title 42
section 1437q.