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U.S. Code as of:
01/19/04
Section 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.
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