12 U.S.C. § 2158 — Purchase and sale by Federal Reserve

Page 1328 TITLE 12—BANKS AND BANKING § 2156 § 205(f)(2), Dec. 23, 1985, 99 Stat. 1679, 1706; Pub. L. 100–233, title II, § 207(c), title III, § 303, Jan. 6, 1988, 101 Stat. 1608, 1620; Pub. L. 100–399, title III, § 303, Aug. 17, 1988, 102 Stat. 995.) Editorial Notes AMENDMENTS 1988—Subsec. (a). Pub. L. 100–233, § 303(a), amended subsec. (a) generally. Prior to amendment, subsec. (a) read as follows: ‘‘Each bank of the System shall be fully liable on notes, bonds, debentures, or other obli- gations issued by it individually, and shall be liable for the interest payments on long-term notes, bonds, de- bentures, or other obligations issued by other banks op- erating under the same subchapter of this chapter. Each bank shall also be primarily liable for the portion of any issue of consolidated or System-wide obligations made on its behalf and be jointly and severally liable for the payment of any additional sums as called upon by the Farm Credit Administration in order to make payments of interest or principal which any bank pri- marily liable therefor shall be unable to make. Such calls shall be made first upon the other banks oper- ating under the same subchapter of this chapter as the defaulting bank, and second upon banks operating under other subchapters of this chapter, taking into consideration the capital, surplus, bonds, debentures, or other obligations which each may have outstanding at the time of such assessment.’’ Subsec. (c). Pub. L. 100–233, § 207(c), redesignated sub- sec. (d) as (c), and struck out former subsec. (c) which provided that for purposes of this part, the term ‘‘bank’’ included the Capital Corporation. Subsec. (d). Pub. L. 100–399 redesignated subsec. (e) as (d). Pub. L. 100–233, § 207(c), redesignated subsec. (d) as (c). Subsec. (e). Pub. L. 100–399 redesignated subsec. (e) as (d). Pub. L. 100–233, § 303(b), added subsec. (e). 1985—Subsec. (b). Pub. L. 99–205, § 205(f)(2), substituted ‘‘execution of’’ for ‘‘Governor to execute’’ in first sen- tence and struck out ‘‘by the Governor’’ after ‘‘shall be executed’’ in second sentence. Subsecs. (c), (d). Pub. L. 99–205, § 101(4), added subsec. (c) and redesignated former subsec. (c) as (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–399 effective as if enacted immediately after enactment of Pub. L. 100–233, which was approved Jan. 6, 1988, see section 1001(a) of Pub. L. 100–399, set out as a note under section 2002 of this title. EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–205 effective thirty days after Dec. 23, 1985, see section 401 of Pub. L. 99–205, set out as a note under section 2001 of this title. § 2156. Repealed. Pub. L. 100–233, title II, § 204(b), Jan. 6, 1988, 101 Stat. 1607 Section, Pub. L. 92–181, title IV, § 4.5, Dec. 10, 1971, 85 Stat. 611; Pub. L. 96–592, title IV, § 401, Dec. 24, 1980, 94 Stat. 3446; Pub. L. 99–205, title II, § 205(f)(3), Dec. 23, 1985, 99 Stat. 1706, provided for establishment of a fi- nance committee for banks organized and operated under subchapters I, II, and III of this chapter. See sec- tion 2160 of this title. § 2157. Bonds as investments The bonds, debentures, and other similar obli- gations issued under the authority of this chap- ter shall be lawful investments for all fiduciary and trust funds and may be accepted as security for all public deposits. (Pub. L. 92–181, title IV, § 4.6, Dec. 10, 1971, 85 Stat. 612.) § 2158. Purchase and sale by Federal Reserve System Any member of the Federal Reserve System may buy and sell bonds, debentures, or other similar obligations issued under the authority of this chapter and any Federal Reserve bank may buy and sell such obligations to the same extent and subject to the same limitations placed upon the purchase and sale by said banks of State, county, district, and municipal bonds under sec- tion 355 of this title. (Pub. L. 92–181, title IV, § 4.7, Dec. 10, 1971, 85 Stat. 612.) § 2159. Purchase and sale of obligations Each bank of the System may purchase its own obligations and the obligations of other banks of the System and may provide for the sale of obligations issued by it, consolidated ob- ligations, or Systemwide obligations through a fiscal agent or agents, by negotiation, offer, bid, syndicate sale, and to deliver such obligations by book entry, wire transfer, or such other means as may be appropriate. (Pub. L. 92–181, title IV, § 4.8, Dec. 10, 1971, 85 Stat. 612; Pub. L. 99–509, title I, § 1034, Oct. 21, 1986, 100 Stat. 1878; Pub. L. 100–233, title II, § 205(a), Jan. 6, 1988, 101 Stat. 1607; Pub. L. 115–334, title V, § 5411(18), Dec. 20, 2018, 132 Stat. 4680.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–334 struck out subsec. (a) designa- tion before ‘‘Each bank’’ and struck out subsec. (b) which described conditions under which each bank of the System could reduce the cost of its borrowings and amortize certain capitalizations through Dec. 31, 1992. 1988—Subsec. (b). Pub. L. 100–233 substituted ‘‘Decem- ber 31, 1992’’ for ‘‘December 31, 1988’’ in two places. 1986—Pub. L. 99–509 designated existing provisions as subsec. (a) and added subsec. (b). § 2160. Federal Farm Credit Banks Funding Cor- poration (a) Establishment There is hereby established the Federal Farm Credit Banks Funding Corporation (hereinafter in this section referred to as the ‘‘Corporation’’), which shall be an institution of the Farm Credit System. (b) Duties The Corporation— (1) shall issue, market, and handle the obli- gations of the banks of the Farm Credit Sys- tem, and interbank or intersystem flow of funds as may from time to time be required; (2) acting for the banks of the Farm Credit System, subject to approval of the Farm Cred- it Administration, shall determine the amount, maturities, rates of interest, terms, and conditions of participation by the several banks in each issue of joint, consolidated, or System-wide obligations; and (3) shall exercise such other powers as were provided to the predecessor Federal Farm