12 U.S.C. § 1723c — Obligations, participations, or other in-

Page 777 TITLE 12—BANKS AND BANKING § 1723d wise provided by law. See sections 1001(2) and 1013 of Title 5, Government Organization and Employees. PROPOSAL BY FEDERAL NATIONAL MORTGAGE ASSOCIA- TION RESPECTING MORTGAGE-BACKED SECURITIES PROGRAM; APPROVAL, ETC. Pub. L. 96–399, title III, § 330, Oct. 8, 1980, 94 Stat. 1652, provided that: ‘‘If the Federal National Mortgage Asso- ciation submits to the Secretary of Housing and Urban Development or the Secretary of the Treasury, after the date of enactment of this section [Oct. 8, 1980], a proposal with respect to undertaking a mortgage- backed securities program, the Secretary of Housing and Urban Development or the Secretary of the Treas- ury, as the case may be, shall, within 90 days after sub- mission of such proposal, approve the proposal or trans- mit to the Congress a report explaining why the pro- posal has not been approved.’’ Executive Documents TRANSFER OF FUNCTIONS ‘‘Director of the Office of Personnel Management’’ substituted for ‘‘United States Civil Service Commis- sion’’ pursuant to Reorg. Plan No. 2 of 1978, § 102, 43 F.R. 36037, 92 Stat. 3783, set out under section 1101 of Title 5, Government Organization and Employees, which transferred functions vested by statute in United States Civil Service Commission to Director of Office of Personnel Management (except as otherwise speci- fied), effective Jan. 1, 1979, as provided by section 1–102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of Title 5. § 1723b. Investment of funds Moneys of the Association not invested in mortgages or other security holdings or in oper- ating facilities shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaranteed thereby, or in obli- gations, participations, or other instruments which are lawful investments for fiduciary, trust, or public funds. (June 27, 1934, ch. 847, title III, § 310, as added Aug. 2, 1954, ch. 649, title II, § 201, 68 Stat. 621; amended Pub. L. 86–372, title III, § 305(b), Sept. 23, 1959, 73 Stat. 670; Pub. L. 87–70, title VI, § 603(e), June 30, 1961, 75 Stat. 177; Pub. L. 88–560, title VII, § 701(b)(3), Sept. 2, 1964, 78 Stat. 800.) Editorial Notes PRIOR PROVISIONS Prior provisions on the subject of this section were formerly contained in section 1718 of this title. AMENDMENTS 1964—Pub. L. 88–560 authorized investment of funds in participations and other instruments which are lawful investments. 1961—Pub. L. 87–70 inserted ‘‘or other security hold- ings’’ after ‘‘mortgages’’. 1959—Pub. L. 86–372 substituted ‘‘in obligations of the United States or guaranteed thereby, or in obligations which are lawful investments for fiduciary, trust, or public funds’’ for ‘‘in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States’’. § 1723c. Obligations, participations, or other in- struments as lawful investments; acceptance as security; exempt securities All obligations, participations, or other in- struments issued by either of the bodies cor- porate named in section 1717(a)(2) of this title shall be lawful investments, and may be accept- ed as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. All stock, obligations, securities, participations, or other instruments issued pursuant to this sub- chapter shall, to the same extent as securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securi- ties within the meaning of laws administered by the Securities and Exchange Commission. (June 27, 1934, ch. 847, title III, § 311, as added Aug. 2, 1954, ch. 649, title II, § 201, 68 Stat. 622; amended Pub. L. 88–560, title VII, § 701(b)(1), Sept. 2, 1964, 78 Stat. 800; Pub. L. 90–448, title VIII, § 802(ff), Aug. 1, 1968, 82 Stat. 542; Pub. L. 98–440, title II, § 213(b), Oct. 3, 1984, 98 Stat. 1698; Pub. L. 102–550, title XIII, § 1381(r), Oct. 28, 1992, 106 Stat. 4001.) Editorial Notes AMENDMENTS 1992—Pub. L. 102–550 struck out before period at end ‘‘; but all such issuances by the Association and all issuances of stock, and debt obligations convertible into stock, by the corporation shall be made only with the approval of the Secretary of Housing and Urban De- velopment’’. 1984—Pub. L. 98–440 inserted ‘‘by the Association and all issuances of stock, and debt obligations convertible into stock, by the corporation’’. 1968—Pub. L. 90–448 substituted ‘‘either of the bodies corporate named in section 1717(a)(2) of this title’’ for ‘‘the Association,’’ and inserted provisions directing that all stock, obligations, securities, participations, or other instruments issued pursuant to this sub- chapter be deemed to be exempt securities, and requir- ing approval of the Secretary for all issuances. 1964—Pub. L. 88–560 inserted ‘‘, participations, or other instruments’’ after ‘‘obligations’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by title VIII of Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as an Effective Date note under section 1716b of this title. § 1723d. Transfer of certain functions to Associa- tion The functions of the Housing and Home Fi- nance Administrator (including the function of making payments to the Secretary of the Treas- ury) under section 2 of Reorganization Plan Numbered 22 of 1950, together with the notes and capital stock of the Federal National Mortgage Association held by said Administrator there- under, are transferred to the Federal National Mortgage Association. (Aug. 2, 1954, ch. 649, title II, § 207, 68 Stat. 622.) Editorial Notes REFERENCES IN TEXT Reorganization Plan Numbered 22 of 1950, referred to in text, is set out as a note under section 1717 of this title. CODIFICATION Section was enacted as part of the Housing Act of 1954, and not as part of the National Housing Act which