Authority to issue obligations to cover guarantee losses of Corporation

12 U.S.C. § 2279aa–13

• Title: 12 — Banks and Banking
• Chapter: 23 — FARM CREDIT SYSTEM
• Subchapter: VIII
• Part: A
• Current through: Pub. L. 119-99

Text

(a) Sale of obligations to Treasury
(1) In general
Subject to the limitations contained in section 2279aa–10(c) of this title and the requirement of paragraph (2), the Corporation may issue obligations to the Secretary of the Treasury the proceeds of which may be used by the Corporation solely for the purpose of fulfilling the obligations of the Corporation under any guarantee provided by the Corporation under this subchapter.
(2) Certification
The Secretary of the Treasury may purchase obligations of the Corporation under paragraph (1) only if the Corporation certifies to the Secretary that—
(A) the requirements of section 2279aa–10(c) of this title have been fulfilled; and
(B) the proceeds of the sale of such obligations are needed to fulfill the obligations of the Corporation under any guarantee provided by the Corporation under this subchapter.
(b) Expeditious transaction required
Not later than 10 business days after receipt by the Secretary of the Treasury of any certification by the Corporation under subsection (a)(2), the Secretary of the Treasury shall purchase obligations issued by the Corporation in an amount determined by the Corporation to be sufficient to meet the guarantee liabilities of the Corporation.
(c) Limitation on amount of outstanding obligations
The aggregate amount of obligations issued by the Corporation under subsection (a)(1) which may be held by the Secretary of the Treasury at any time (as determined by the Secretary) shall not exceed $1,500,000,000.
(d) Terms of obligation
(1) Interest
Each obligation purchased by the Secretary of the Treasury shall bear interest at a rate determined by the Secretary, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of such obligation.
(2) Redemption
The Secretary of the Treasury shall require that such obligations be repurchased by the Corporation within a reasonable time.
(e) Coordination with title 31
(1) Authority to use proceeds from sale of Treasury securities
For the purpose of purchasing obligations of the Corporation, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale by the Secretary 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 purchases.
(2) Treatment of transactions
All purchases and sales by the Secretary of the Treasury of obligations issued by the Corporation under this section shall be treated as public debt transactions of the United States.
(f) Authorization of appropriations
There is authorized to be appropriated to the Secretary of the Treasury $1,500,000,000, without fiscal year limitation, to carry out the purposes of this subchapter.

History

(Pub. L. 92–181, title VIII, §8.13, as added Pub. L. 100–233, title VII, §702, Jan. 6, 1988, 101 Stat. 1704; amended Pub. L. 104–105, title I, §109(b)(2), Feb. 10, 1996, 110 Stat. 165.)

Editorial Notes

Editorial Notes

Amendments
1996—Subsec. (a). Pub. L. 104–105 substituted "section" for "sections 2279aa–6(b) and" in pars. (1) and (2)(A).