12 U.S.C. § 2286 — Approval of financing plans by Secretary

Page 1435 TITLE 12—BANKS AND BANKING § 2286 Executive Documents EXECUTIVE ORDER NO. 11782 Ex. Ord. No. 11782, May 6, 1974, 39 F.R. 15991, which es- tablished the Federal Financing Bank Advisory Council and provided for its membership, functions, etc., was revoked by Ex. Ord. No. 12379, § 15, Aug. 17, 1982, 47 F.R. 36099, formerly set out as a note under section 1013 of Title 5, Government Organization and Employees. § 2282. Definitions For the purposes of this chapter— (1) The term ‘‘Federal agency’’ means an exec- utive department, an independent Federal estab- lishment, or a corporation or other entity estab- lished by the Congress which is owned in whole or in part by the United States. (2) The term ‘‘obligation’’ means any note, bond, debenture, or other evidence of indebted- ness, but does not include Federal Reserve notes or stock evidencing an ownership interest in the issuing Federal agency. (3) The term ‘‘guarantee’’ means any guar- antee, insurance, or other pledge with respect to the payment of all or part of the principal or in- terest on any obligation, but does not include the insurance of deposits, shares, or other withdrawable accounts in financial institutions, or any guarantee or pledge arising out of a stat- utory obligation to insure such deposits, shares, or other withdrawable accounts. (4) The term ‘‘Bank’’ means the Federal Fi- nancing Bank established by section 2283 of this title. (Pub. L. 93–224, § 3, Dec. 29, 1973, 87 Stat. 937.) § 2283. Creation of Federal Financing Bank There is hereby created a body corporate to be known as the Federal Financing Bank, which shall have succession until dissolved by an Act of Congress. The Bank shall be subject to the general supervision and direction of the Sec- retary of the Treasury. The Bank shall be an in- strumentality of the United States Government and shall maintain such offices as may be nec- essary or appropriate in the conduct of its busi- ness. (Pub. L. 93–224, § 4, Dec. 29, 1973, 87 Stat. 937.) § 2284. Board of Directors (a) The Bank shall have a Board of Directors consisting of five persons, one of whom shall be the Secretary of the Treasury as Chairman of the Board, and four of whom shall be appointed by the President from among the officers or em- ployees of the Bank or of any Federal agency. The Chairman and each other member of the Board may designate some other officer or em- ployee of the Government to serve in his place. (b) The Board of Directors shall meet at the call of its Chairman. The Board shall determine the general policies which shall govern the oper- ations of the Bank. The Chairman of the Board shall select and effect the appointment of quali- fied persons to fill such offices as may be pro- vided for in the bylaws, and such persons shall be the executive officers of the Bank and shall discharge such executive functions, powers, and duties as may be provided for in the bylaws or by the Board of Directors. The members of the Board and their designees shall not receive com- pensation for their services on the Board. (Pub. L. 93–224, § 5, Dec. 29, 1973, 87 Stat. 937.) § 2285. Functions (a) Purchase and sale of obligations issued, sold, or guaranteed by Federal agencies The Bank is authorized to make commitments to purchase and sell, and to purchase and sell on terms and conditions determined by the Bank, any obligation which is issued, sold, or guaran- teed by a Federal agency. Any Federal agency which is authorized to issue, sell, or guarantee any obligation is authorized to issue or sell such obligations directly to the Bank. (b) Yield Any purchase by the Bank shall be upon such terms and conditions as to yield a return at a rate not less than a rate determined by the Sec- retary of the Treasury taking into consideration (1) the current average yield on outstanding marketable obligations of the United States of comparable maturity, or (2) whenever the Bank’s own obligations outstanding are suffi- cient, the current average yield on outstanding obligations of the Bank of comparable maturity. (c) Fees The Bank is authorized to charge fees for its commitments and other services adequate to cover all expenses and to provide for the accu- mulation of reasonable contingency reserves. (Pub. L. 93–224, § 6, Dec. 29, 1973, 87 Stat. 938.) § 2285a. Acquisition of obligations involving loan guarantees for New York City Nothing in any provision of law shall be con- strued to authorize the Federal Financing Bank to acquire any obligation the payment of inter- est or principal of which has at any time been guaranteed in whole or in part under title I of the New York City Loan Guarantee Act of 1978. (Pub. L. 95–339, title II, § 201(b), Aug. 8, 1978, 92 Stat. 467.) Editorial Notes REFERENCES IN TEXT Title I of the New York City Loan Guarantee Act of 1978, referred to in text, is title I of Pub. L. 95–339, Aug. 8, 1978, 92 Stat. 460, which was classified generally to subchapter II (§ 1521 et seq.) of chapter 27 of former Title 31, and was omitted from the Code in the general revision and reenactment of Title 31, Money and Fi- nance, by Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 877. CODIFICATION Section was enacted as part of the New York City Loan Guarantee Act of 1978, and not as part of the Fed- eral Financing Bank Act of 1973 which comprises this chapter. § 2286. Approval of financing plans by Secretary of the Treasury (a) Method, source, timing, terms, and conditions of sale of obligations issued or sold by Fed- eral agencies To insure the orderly and coordinated mar- keting of Treasury and Federal agency obliga- Page 1436 TITLE 12—BANKS AND BANKING § 2287 tions and appropriate financing planning with respect thereto, and to facilitate the effective fi- nancing of programs authorized by law subject to the applicable provisions of such law, the prior approval of the Secretary of the Treasury shall be required with respect to— (1) the method of financing, (2) the source of financing, (3) the timing of financing in relation to market conditions and financing by other Fed- eral agencies, and (4) the financing terms and conditions, in- cluding rates of interest and maturities, of obligations issued or sold by any Federal agency; except that the approval of the Sec- retary of the Treasury shall not be required with respect to (A) obligations issued or sold pursu- ant to an Act of Congress which expressly pro- hibits any guarantee of such obligations by the United States, and (B) obligations issued or sold by the Farmers Home Administration. (b) Grant or denial of approval by Secretary Upon receipt of a request from a Federal agen- cy for his approval under subsection (a) of this section, the Secretary of the Treasury shall act promptly either to grant his approval or to ad- vise the agency of the reasons for withholding his approval. In no case shall the Secretary of the Treasury withhold such approval for a pe- riod longer than sixty days unless, prior to the end of such period, he submits to the Congress a detailed explanation of his reasons for so doing. In no case shall the Secretary withhold such ap- proval for a period longer than one hundred and twenty days. To the maximum extent prac- ticable, withholdings of approval shall be made in a manner which is not disproportionately det- rimental to the functioning of any particular type of Federal program. Expedited treatment shall be accorded in any case in which the Fed- eral agency advises the Secretary of the Treas- ury that unusual circumstances require such treatment. (c) Time and form for submission of financing plans Federal agencies subject to this section shall submit financing plans to the Secretary of the Treasury at such times and in such forms as he shall prescribe. (Pub. L. 93–224, § 7, Dec. 29, 1973, 87 Stat. 938.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on expiration of 30 days after Dec. 29, 1973, see section 20 of Pub. L. 93–224, set out as a note under section 2281 of this title. § 2287. Initial capital The Secretary of the Treasury is authorized to advance the funds necessary to provide initial capital to the Bank. Each such advance shall be upon such terms and conditions as to yield a re- turn at a rate not less than a rate determined by the Secretary of the Treasury, taking into con- sideration the current average yield on out- standing marketable obligations of the United States of comparable maturity. Interest pay- ments on such advances may be deferred, at the discretion of the Secretary, but any such de- ferred payments shall themselves bear interest at the rate specified in this section. There is au- thorized to be appropriated not to exceed $100,000,000, which shall be available for the pur- poses of this section without fiscal year limita- tion. (Pub. L. 93–224, § 8, Dec. 29, 1973, 87 Stat. 939.) § 2288. Bank obligations (a) Maximum amount of obligations issued pub- licly 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 ex- cess 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 obli- gations to the Secretary of the Treasury and the Secretary of the Treasury may in his discretion purchase or agree to purchase any such obliga- tions, 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 secu- rities 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 ob- ligations 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 obliga- tions of the United States of comparable matu- rity. 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 sub- section. All purchases and sales by the Sec- retary 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 re- quire 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) 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