12 U.S.C. § 355 — Purchase and sale of obligations of Na-

Page 132 TITLE 12—BANKS AND BANKING § 354 1 See References in Text note below. fers and bankers’ acceptances and bills of ex- change of the kinds and maturities by this chap- ter made eligible for rediscount, with or without the indorsement of a member bank. (Dec. 23, 1913, ch. 6, § 14 (par.), 38 Stat. 264; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of introductory provisions of section 14 of act Dec. 23, 1913. Subsecs. (a) to (g) of sec- tion 14 are set out as sections 354 to 359 and 348a of this title, respectively. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. § 354. Transactions involving gold coin, bullion, and certificates Every Federal reserve bank shall have power to deal in gold coin and bullion at home or abroad, to make loans thereon, exchange Fed- eral reserve notes for gold, gold coin, or gold certificates, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hypothecation of United States bonds or other securities which Federal reserve banks are au- thorized to hold. (Dec. 23, 1913, ch. 6, § 14(a), 38 Stat. 264.) Editorial Notes CODIFICATION Section is comprised of subsec. (a) of section 14 of act Dec. 23, 1913. For classification to this title of remain- der of section 14, see Codification note set out under section 353 of this title. § 355. Purchase and sale of obligations of Na- tional, State, and municipal governments; open market operations; purchases and sales from or to United States; maximum aggre- gate amount of obligations acquired directly from or loaned directly to United States Every Federal Reserve bank shall have power: (1) To buy and sell, at home or abroad, bonds and notes of the United States, bonds issued under the provisions of subsection (c) of section 1463 1 of this title and having maturities from date of purchase of not exceeding six months, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not ex- ceeding six months, issued in anticipation of the collection of taxes or in anticipation of the re- ceipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irriga- tion, drainage and reclamation districts, and ob- ligations of, or fully guaranteed as to principal and interest by, a foreign government or agency thereof, such purchases to be made in accord- ance with rules and regulations prescribed by the Board of Governors of the Federal Reserve System. Notwithstanding any other provision of this chapter, any bonds, notes, or other obliga- tions which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market. (2) To buy and sell in the open market, under the direction and regulations of the Federal Open Market Committee, any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States. (Dec. 23, 1913, ch. 6, § 14(b), 38 Stat. 264; Jan. 31, 1934, ch. 7, § 16(b), 48 Stat. 348; Apr. 27, 1934, ch. 168, § 7(b), 48 Stat. 646; Aug. 23, 1935, ch. 614, title II, §§ 203(a), 206(a), 49 Stat. 704, 706; Mar. 27, 1942, ch. 199, title IV, § 401, 56 Stat. 180; Apr. 28, 1947, ch. 44, 61 Stat. 56; June 30, 1950, ch. 425, 64 Stat. 307; June 23, 1952, ch. 454, 66 Stat. 154; June 29, 1954, ch. 422, 68 Stat. 329; June 25, 1956, ch. 447, 70 Stat. 339; Pub. L. 85–476, June 30, 1958, 72 Stat. 261; Pub. L. 86–567, July 1, 1960, 74 Stat. 295; Pub. L. 87–353, § 3(d), Oct. 4, 1961, 75 Stat. 773; Pub. L. 87–506, June 28, 1962, 76 Stat. 112; Pub. L. 88–344, June 30, 1964, 78 Stat. 235; Pub. L. 89–484, June 30, 1966, 80 Stat. 235; Pub. L. 89–597, § 6, Sept. 21, 1966, 80 Stat. 825; Pub. L. 90–300, May 4, 1968, 82 Stat. 113; Pub. L. 91–360, July 31, 1970, 84 Stat. 668; Pub. L. 92–45, July 2, 1971, 85 Stat. 100; Pub. L. 93–93, Aug. 14, 1973, 87 Stat. 314; Pub. L. 93–495, title I, § 109, Oct. 28, 1974, 88 Stat. 1505; Pub. L. 94–125, Nov. 12, 1975, 89 Stat. 678; Pub. L. 95–22, title II, § 201, Apr. 19, 1977, 91 Stat. 49; Pub. L. 95–128, title II, § 209, Oct. 12, 1977, 91 Stat. 1131; Pub. L. 95–154, Nov. 7, 1977, 91 Stat. 1256; Pub. L. 95–534, Oct. 27, 1978, 92 Stat. 2032; Pub. L. 96–18, §§ 1, 3, June 8, 1979, 93 Stat. 35, 36; Pub. L. 96–221, title I, § 105(b)(2), Mar. 31, 1980, 94 Stat. 140.) Editorial Notes REFERENCES IN TEXT Section 1463 of this title, referred to in par. (1), was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 648. This chapter, referred to in par. (1), was in the origi- nal ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under section 226 of this title and Ta- bles. CODIFICATION Section is comprised of subsec. (b) of section 14 of act Dec. 23, 1913. For classification to this title of remain- der of section 14, see Codification note set out under section 353 of this title. AMENDMENTS 1980—Par. (1). Pub. L. 96–221 inserted provisions relat- ing to obligations of a foreign government or agency thereof. 1979—Par. (1). Pub. L. 96–18, § 1(a), struck out proviso under which Federal Reserve banks had been allowed, until May 1, 1979, to buy and sell either in the open Page 133 TITLE 12—BANKS AND BANKING § 356 market or directly from or to the United States bonds, notes, or other obligations which were direct obliga- tions of the United States or which were fully guaran- teed by the United States and, after Apr. 30, 1979, had allowed such obligations to be purchased but only in the open market. Pub. L. 96–18, § 3(b), inserted provision that notwith- standing any other provision of this chapter, any bonds, notes, or other obligations which are direct obli- gations of the United States or which are fully guaran- teed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market. Par. (2). Pub. L. 96–18, §§ 1(b), 3(a), temporarily sub- stituted ‘‘the United States or any agency of the United States, and to lend, under the direction and reg- ulations of the Federal Open Market Committee, any such obligation to the Secretary of the Treasury’’ for ‘‘any agency of the United States’’. See Effective and Termination Dates of 1979 Amendment note set out below. Pars. (3), (4). Pub. L. 96–18, §§ 1(c), 3(a), temporarily added pars. (3) and (4). See Effective and Termination Dates of 1979 Amendment note set out below. 1978—Par. (1). Pub. L. 95–534 substituted ‘‘May 1, 1979’’ for ‘‘May 1, 1978’’ and ‘‘April 30, 1979’’ for ‘‘April 30, 1978’’. 1977—Par. (1). Pub. L. 95–154 substituted ‘‘May 1, 1978’’ for ‘‘October 1, 1977’’ and ‘‘April 30, 1978’’ for ‘‘Sep- tember 30, 1977’’. Pub. L. 95–128 substituted ‘‘October 1, 1977’’ for ‘‘No- vember 1, 1978’’ and ‘‘September 30, 1977’’ for ‘‘October 31, 1978’’. Pub. L. 95–22 substituted ‘‘November 1, 1978’’ for ‘‘No- vember 1, 1976’’ and ‘‘October 31, 1978’’ for ‘‘October 31, 1976’’. 1975—Par. (1). Pub. L. 94–125 substituted ‘‘November 1, 1976’’ for ‘‘November 1, 1975’’ and ‘‘October 31, 1976’’ for ‘‘October 31, 1975’’. 1974—Par. (1). Pub. L. 93–495 substituted ‘‘November 1, 1975 for ‘‘November 1, 1973’’ and ‘‘October 31, 1975’’ for ‘‘October 31, 1973’’. 1973—Par. (1). Pub. L. 93–93 substituted ‘‘November 1, 1973’’ for ‘‘July 1, 1973’’ and ‘‘October 31, 1973’’ for ‘‘June 30, 1973’’. 1971—Par. (1). Pub. L. 92–45 substituted ‘‘July 1, 1973’’ for ‘‘July 1, 1971’’ and ‘‘June 30, 1973’’ for ‘‘June 30, 1971’’. 1970—Par. (1). Pub. L. 91–360 substituted ‘‘July 1, 1971’’ for ‘‘July 1, 1970’’ and ‘‘June 30, 1971’’ for ‘‘June 30, 1970’’. 1968—Par. (1). Pub. L. 90–300 substituted ‘‘July 1, 1970’’ for ‘‘July 1, 1968’’ and ‘‘June 30, 1970’’ for ‘‘June 30, 1968’’. 1966—Pub. L. 89–597 designated existing provisions as par. (1) and added par. (2). Pub. L. 89–484 substituted ‘‘July 1, 1968’’ for ‘‘July 1, 1966’’ and ‘‘June 30, 1968’’ for ‘‘June 30, 1966’’. 1964—Pub. L. 88–344 substituted ‘‘July 1, 1966’’ for ‘‘July 1, 1964’’, and ‘‘June 30, 1966’’ for ‘‘June 30, 1964’’. 1962—Pub. L. 87–506 substituted ‘‘July 1, 1964’’ for ‘‘July 1, 1962’’ and ‘‘June 30, 1964’’ for ‘‘June 30, 1962.’’ 1961—Pub. L. 87–353 struck out provision authorizing every Federal reserve bank to buy and sell, at home or abroad, bonds of the Federal Farm Mortgage Corpora- tion having maturities from date of purchase of not ex- ceeding six months. 1960—Pub. L. 86–567 substituted ‘‘July 1, 1962’’ for ‘‘July 1, 1960’’ and ‘‘June 30, 1962’’ for ‘‘June 30, 1960’’. 1958—Pub. L. 85–476 substituted ‘‘July 1, 1960’’ for ‘‘July 1, 1958’’ and ‘‘June 30, 1960’’ for ‘‘June 30, 1958’’. 1956—Act June 25, 1956, substituted ‘‘July 1, 1958’’ for ‘‘July 1, 1956’’ and ‘‘June 30, 1958’’ for ‘‘June 30, 1958’’. 1954—Act June 29, 1954, substituted ‘‘July 1, 1956’’ for ‘‘July 1, 1954’’ and ‘‘June 30, 1956’’ for ‘‘June 30, 1954’’. 1952—Act June 23, 1952, substituted ‘‘July 1, 1954’’ for ‘‘July 1, 1952’’ and ‘‘June 30, 1954’’ for ‘‘June 30, 1952’’. 1950—Act June 30, 1950, substituted ‘‘July 1, 1952’’ for ‘‘July 1, 1950’’ and ‘‘June 30, 1952’’ for ‘‘June 30, 1950’’. 1947—Act Apr. 28, 1947, substituted proviso which al- lows the Federal Reserve banks to buy and sell either in the open market or directly from or to the United States any bonds, notes, or other obligations which are direct obligations of the United States or are fully guaranteed by the United States but limits the aggre- gate amount to be held at any one time to $5,000,000,000, and after June 30, 1950 allows such obligation to be pur- chased, but only in the open market for former proviso. 1942—Act Mar. 27, 1942, amended proviso generally. 1935—Act Aug. 23, 1935, § 206(a), inserted proviso. 1934—Act Apr. 27, 1934, authorized purchase and sale of bonds issued under subsec. (c) of [former] section 1463 of this title. Act Jan. 31, 1934, authorized purchase and sale of bonds of Federal Farm Mortgage Corporation. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. EFFECTIVE DATE AND APPLICABILITY OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on first day of sixth month which begins after Mar. 31, 1980, see sec- tion 108 of Pub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 248 of this title. Pub. L. 96–221, title I, § 105(b)(2), Mar. 31, 1980, 94 Stat. 140, provided that the amendment made by section 105(b)(2) of Pub. L. 96–221 is applicable to 12 U.S.C. 355(1) as such section is in effect on the first day of the sixth month which begins after March 31, 1980, and as it will be in effect on June 1, 1981. EFFECTIVE AND TERMINATION DATES OF 1979 AMENDMENT Pub. L. 96–18, § 3(a), June 8, 1979, 93 Stat. 36, provided that: ‘‘Except for the amendments made by subsection (a) of the first section of this Act [amending par. (1) of this section], and except for the amendment made by subsection (b) of this section [amending par. (1) of this section effective upon the expiration of the two-year period beginning on June 8, 1979], the amendments made by this Act [enacting section 359a of this title and pars. (3) and (4) of this section and amending par. (2) of this section] shall be effective only during the two-year period which begins on the date of enactment of this Act [June 8, 1979]. Upon the expiration of such period, each provision of law amended by this Act [enacting section 359a of this title and amending this section], ex- cept section 14(b)(1) of the Federal Reserve Act [par. (1) of this section], is amended to read as it did imme- diately prior to the enactment of this Act.’’ Pub. L. 96–18, § 3(b), June 8, 1979, 93 Stat. 36, provided that the amendment made by that section is effective ‘‘Upon the expiration of the 2-year period which begins on the date of enactment of this Act [June 8, 1979]’’. EXPIRATION OF 1942 AMENDMENT Amendment of the proviso of this section by act Mar. 27, 1942, remained in force only until the date fixed by section 645 of the former Appendix to Title 50, War and National Defense, after which provisions in force before the amendment again became effective. Before the 1942 amendment, the proviso of this section read: ‘‘Provided, That any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.’’ § 356. Purchase of commercial paper from mem- ber banks and sale of same Every Federal reserve bank shall have power to purchase from member banks and to sell, with or without its indorsement, bills of ex-