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