31 U.S.C. § 9108 — Obligations

Page 579 TITLE 31—MONEY AND FINANCE § 9108 surplus. The words ‘‘if the cash will be expended as pro- vided by law’’ are substituted for 31:870(proviso) to eliminate unnecessary words. In subsections (b) and (c), the words ‘‘banking or checking’’ are omitted as surplus. In subsection (b), the words ‘‘Secretary of the Treas- ury’’ are substituted for ‘‘Treasurer of the United States’’ because of the source provisions restated in section 321(c) of the revised title. The words ‘‘wholly owned and mixed-ownership’’ and ‘‘under such condi- tions as he may determine’’ are omitted as surplus. In subsection (c)(1), the words ‘‘establishment and’’ and ‘‘in any one bank’’ are omitted as surplus. In subsection (c)(3), the words ‘‘head of each’’ are added for consistency. 1983 ACT This amends 31:9107(c)(3) and 9108(d)(2) because the National Consumer Cooperative Bank is no longer a mixed-ownership Government corporation. Section 396(h)(2) and (3) and (i) of the Omnibus Budget Rec- onciliation Act of 1981 (Pub. L. 97–35, 95 Stat. 440) pro- vided that references to the Bank in sections 302 and 303(d)(2d sentence) of the Government Corporation Con- trol Act would be deleted on the day after the Final Government Equity Redemption Date. Section 501(36) of the Act of December 23, 1981 (Pub. L. 97–101, 95 Stat. 1440), provided that the Redemption Date was Decem- ber 31, 1981. Editorial Notes AMENDMENTS 1983—Subsec. (c)(3). Pub. L. 97–452 struck out ‘‘the Na- tional Consumer Cooperative Bank,’’ after ‘‘Regional Banks for Cooperatives,’’ which had already been struck out by Pub. L. 97–258. See 1982 Amendment note below. 1982—Subsec. (c)(3). Pub. L. 97–258, § 2(l)(2), struck out ‘‘the National Consumer Cooperative Bank,’’ after ‘‘Re- gional Banks for Cooperatives,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Amendment effective Sept. 13, 1982, see section 2(i) of Pub. L. 97–452, set out as a note under section 3331 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–258, § 2(l), Sept. 13, 1982, 96 Stat. 1062, pro- vided that the amendment made by such section is ef- fective Jan. 1, 1982. § 9108. Obligations (a) Before a Government corporation issues obligations and offers obligations to the public, the Secretary of the Treasury shall prescribe— (1) the form, denomination, maturity, inter- est rate, and conditions to which the obliga- tions will be subject; (2) the way and time the obligations are issued; and (3) the price for which the obligations will be sold. (b) A Government corporation may buy or sell a direct obligation of the United States Govern- ment, or an obligation on which the principal, interest, or both, is guaranteed, of more than $100,000 only when the Secretary approves the purchase or sale. The Secretary may waive the requirement of this subsection under conditions the Secretary may decide. (c) The Secretary may designate an officer or employee of an agency to carry out this section if the head of the agency agrees. (d)(1) This section does not apply to a mixed- ownership Government corporation when the corporation has no capital of the Government. (2) Subsections (a) and (b) of this section do not apply to the Federal Intermediate Credit Banks, the Central Bank for Cooperatives, the Regional Banks for Cooperatives, and the Fed- eral Land Banks. However, the head of each of those banks shall consult with the Secretary be- fore taking action of the kind described in sub- section (a) or (b). If agreement is not reached, the Secretary may make a written report to the corporation, the President, and Congress on the reasons for the Secretary’s disagreement. (Pub. L. 97–258, §§ 1, 2(l)(2), Sept. 13, 1982, 96 Stat. 1045, 1062; Pub. L. 97–452, § 1(27), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 115–334, title VI, § 6602(b)(20), Dec. 20, 2018, 132 Stat. 4777.) HISTORICAL AND REVISION NOTES 1982 ACT Revised Section Source (U.S. Code) Source (Statutes at Large) 9108(a) ..... 31:868(a). Dec. 6, 1945, ch. 557, § 303(less (d)(1st sentence related to § 302)), 59 Stat. 601; July 26, 1956, ch. 741, § 201(a)(4), 70 Stat. 667; May 7, 1971, Pub. L. 92–12, § 5, 85 Stat. 37; Aug. 20, 1978, Pub. L. 95–351, § 301(c), 92 Stat. 514; Aug. 13, 1981, Pub. L. 97–35, § 396(h)(3), 95 Stat. 441. 9108(b) ..... 31:868(b). 9108(c) ..... 31:868(c). 9108(d) ..... 31:868(d)(less 1st sentence related to 31:867). In subsections (a) and (b), the words ‘‘on or after De- cember 6, 1945’’ are omitted as executed. The words ‘‘wholly owned or mixed-ownership’’ are omitted be- cause of section 9101(1) of the revised title. In subsection (a), before clause (1), the word ‘‘Before’’ is substituted for ‘‘which are’’ for clarity. The words ‘‘bonds, notes, debentures, and other similar’’ are omit- ted as surplus. The words ‘‘as have been’’ are omitted as executed. In clause (1), the words ‘‘terms and’’ are omitted as surplus. The restatement of the source pro- visions does not affect other existing laws. In subsection (b), the word ‘‘Government’’ is added for consistency. The words ‘‘for its own account and in its own right and interest, at any one time aggre- gating’’ and ‘‘his approval with respect to any trans- action or classes of transactions subject to the provi- sions of . . . for such period of time and’’ are omitted as surplus. In subsection (c), the word ‘‘agency’’ is substituted for ‘‘Federal agency’’ because of section 101 of the re- vised title. The words ‘‘any of the functions vested in him by’’ and ‘‘for such purpose’’ are omitted as surplus. In subsection (d)(2), the words ‘‘(when the ownership, control, and operation of the Bank are converted under section 410(a) of the Rural Electrification Act of 1936 (7 U.S.C. 950(a)))’’ are added because of 7:943(c) and 950(a). The words ‘‘head of each’’ are added for consistency. The words ‘‘be required to’’ are omitted as surplus. 1983 ACT This amends 31:9107(c)(3) and 9108(d)(2) because the National Consumer Cooperative Bank is no longer a mixed-ownership Government corporation. Section 396(h)(2) and (3) and (i) of the Omnibus Budget Rec- onciliation Act of 1981 (Pub. L. 97–35, 95 Stat. 440) pro- vided that references to the Bank in sections 302 and 303(d)(2d sentence) of the Government Corporation Con- trol Act would be deleted on the day after the Final Government Equity Redemption Date. Section 501(36) of the Act of December 23, 1981 (Pub. L. 97–101, 95 Stat. Page 580 TITLE 31—MONEY AND FINANCE § 9109 1 See References in Text note below. 1440), provided that the Redemption Date was Decem- ber 31, 1981. Editorial Notes AMENDMENTS 2018—Subsec. (d)(2). Pub. L. 115–334 struck out ‘‘the Rural Telephone Bank (when the ownership, control, and operation of the Bank are converted under section 410(a) of the Rural Electrification Act of 1936 (7 U.S.C. 950(a))),’’ after ‘‘do not apply to’’. 1983—Subsec. (d)(2). Pub. L. 97–452 struck out ‘‘the National Consumer Cooperative Bank,’’ after ‘‘the Re- gional Banks for Cooperatives,’’ which had already been struck out by Pub. L. 97–258. See 1982 Amendment note below. 1982—Subsec. (d)(2). Pub. L. 97–258, § 2(l)(2), struck out ‘‘the National Consumer Cooperative Bank,’’ after ‘‘Re- gional Banks for Cooperatives,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1983 AMENDMENT Amendment by Pub. L. 97–452 effective Sept. 13, 1982, see section 2(i) of Pub. L. 97–452, set out as a note under section 3331 of this title. EFFECTIVE DATE OF 1982 AMENDMENT Pub. L. 97–258, § 2(l), Sept. 13, 1982, 96 Stat. 1062, pro- vided that the amendment made by such section is ef- fective Jan. 1, 1982. § 9109. Exclusion of a wholly owned Government corporation from this chapter When the President considers it practicable and in the public interest, the President shall include in the budget submitted to Congress under section 1105 of this title a recommenda- tion that a wholly owned Government corpora- tion be deemed to be an agency (except a cor- poration) under chapter 11 of this title and for fiscal matters. If Congress approves the rec- ommendation, the corporation is deemed to be an agency (except a corporation) under chapter 11 and for fiscal matters for fiscal years begin- ning after the fiscal year of approval and is not subject to this chapter. The corporate entity is not affected by this section. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1045.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 9109 ......... 31:852. Dec. 6, 1945, ch. 577, § 107, 59 Stat. 599. The word ‘‘President’’ is substituted for ‘‘Director of the Office of Management and Budget’’ because sec- tions 101 and 102(a) of Reorganization Plan No. 2 of 1970 (eff. July 1, 1970, 84 Stat. 2085) designated the Bureau of the Budget as the Office of Management and Budget and transferred all functions of the Bureau to the President. The words ‘‘with the approval of the Presi- dent’’ are omitted because of the restatement. The word ‘‘considers’’ is substituted for ‘‘deemed’’ for con- sistency. The words ‘‘in connection with the budget program of such corporation’’ are omitted as surplus. The words ‘‘submitted to Congress under section 1105 of this title’’ are added for clarity. The words ‘‘deemed to be’’ are substituted for ‘‘treated . . . as if it were’’ for consistency. The word ‘‘agency’’ is substituted for ‘‘Government agency’’ and ‘‘establishment’’ because of section 101 of the revised title and for consistency. The words ‘‘if it were’’, ‘‘appropriations, expenditures, re- ceipts, accounts, and other’’, and ‘‘in connection with the budget program for any fiscal year’’ are omitted as surplus. The words ‘‘deemed to be’’ are substituted for ‘‘regarded as’’ for consistency. § 9110. Standards for depository institutions holding securities of a Government-spon- sored corporation for customers (a) The Secretary shall prescribe by regulation standards for the safeguarding and use of obliga- tions that are government securities described in subparagraph (B) or (C) of section 3(a)(42) of the Securities Exchange Act of 1934. Such regu- lations shall apply only to a depository institu- tion that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or oth- erwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase. (b) Violation of a regulation prescribed under subsection (a) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes (12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3) 1 of the Home Owners’ Loan Act of 1933, section 407(e) or 407(f) 1 of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regu- latory agency and with respect to a federally in- sured credit union by the National Credit Union Administration. (c) Nothing in this section shall be construed to affect in any way the powers of such agencies under any other provision of law. (d) The Secretary shall, prior to adopting reg- ulations under this section, determine with re- spect to each appropriate regulatory agency and the National Credit Union Administration Board, whether its rules and standards ade- quately meet the purposes of regulations to be promulgated under this section, and if the Sec- retary so determines, shall exempt any deposi- tory institution subject to such rules or stand- ards from the regulations promulgated under this section. (e) As used in this subsection— (1) ‘‘depository institution’’ has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or branch of a foreign bank, and a commercial lending company owned or controlled by a foreign bank (as such terms are defined in the Inter- national Banking Act of 1978). (2) ‘‘government securities broker’’ has the meaning prescribed in section 3(a)(43) of the Securities Exchange Act of 1934. (3) ‘‘government securities dealer’’ has the meaning prescribed in section 3(a)(44) of the Securities Exchange Act of 1934. (4) ‘‘appropriate regulatory agency’’ has the meaning prescribed in section 3(a)(34)(G) of the Securities Exchange Act of 1934. (Added Pub. L. 99–571, title II, § 201(b)(1), Oct. 28, 1986, 100 Stat. 3223; amended Pub. L. 103–272, § 4(f)(1)(AA), July 5, 1994, 108 Stat. 1363.)