12 U.S.C. § 1455 : US Code - Section 1455: Obligations and securities of the Corporation

Search 12 U.S.C. § 1455 : US Code - Section 1455: Obligations and securities of the Corporation

(a) Authority to issue; terms and conditions; validity
The Corporation is authorized, upon such terms and conditions as
it may prescribe, to borrow, to give security, to pay interest or
other return, and to issue notes, debentures, bonds, or other
obligations, or other securities, including without limitation
mortgage-backed securities guaranteed by the Government National
Mortgage Association in the manner provided in section 1721(g) of
this title. Any obligation or security of the Corporation shall be
valid and binding notwithstanding that a person or persons
purporting to have executed or attested the same may have died,
become under disability, or ceased to hold office or employment
before the issuance thereof.
(b) Prohibitions and restrictions; creation of liens and charges;
rank and priority; causes of action to enforce; jurisdiction;
service of process
The Corporation may, by regulation or by writing executed by the
Corporation, establish prohibitions or restrictions upon the
creation of indebtedness or obligations of the Corporation or of
liens or charges upon property of the Corporation, including after-
acquired property, and create liens and charges, which may be
floating liens or charges, upon all or any part or parts of the
property of the Corporation, including after-acquired property.
Such prohibitions, restrictions, liens, and charges shall have such
effect, including without limitation on the generality of the
foregoing such rank and priority, as may be provided by regulations
of the Corporation or by writings executed by the Corporation, and
shall create causes of action which may be enforced by action in
the United States District Court for the District of Columbia or in
the United States district court for any judicial district in which
any of the property affected is located. Process in any such action
may run to and be served in any judicial district or any place
subject to the jurisdiction of the United States.
(c) Purchase of obligations; funds, maximum amount of purchases,
etc.
(1) The Secretary of the Treasury may purchase any obligations
issued under subsection (a) of this section. For such purpose, the
Secretary may use as a public debt transaction the proceeds of the
sale of any securities issued under chapter 31 of title 31, and the
purposes for which securities may be issued under such chapter are
extended to include such purpose.
(2) The Secretary of (!1) Treasury shall not at any time purchase
any obligations under this subsection if the purchase would
increase the aggregate principal amount of the outstanding holdings
of obligations under this subsection by the Secretary to an amount
greater than $2,250,000,000.
(3) Each purchase of obligations by the Secretary of the Treasury
under this subsection shall be upon terms and conditions
established to yield a rate of return determined by the Secretary
to be appropriate, taking into consideration the current average
rate on outstanding marketable obligations of the United States as
of the last day of the month preceding the making of the purchase.
(4) The Secretary of the Treasury may at any time sell, upon
terms and conditions and at prices determined by the Secretary, any
of the obligations acquired by the Secretary under this subsection.
(5) All redemptions, purchases and sales by the Secretary of the
Treasury of obligations under this subsection shall be treated as
public debt transactions of the United States.
(d) Validity of provisions; validity of restrictions, prohibitions,
liens, or charges
The provisions of this section and of any restriction,
prohibition, lien, or charge referred to in subsection (b) of this
section shall be fully effective notwithstanding any other law,
including without limitation on the generality of the foregoing any
law of or relating to sovereign immunity or priority.
(e) Authority to purchase, hold, or invest by person, trust, or
organization
(1) Any person, trust, or organization created pursuant to or
existing under the laws of the United States or any State shall be
authorized to purchase, hold, and invest in mortgages, obligations,
or other securities which are or have been sold by the Corporation
pursuant to this section or pursuant to section 1454 of this title
to the same extent that such person, trust, or organization is
authorized under any applicable law to purchase, hold, or invest in
obligations issued by or guaranteed as to principal and interest by
the United States or any agency or instrumentality thereof. Where
State law limits the purchase, holding, or investment in
obligations issued by the United States by such a person, trust, or
organization, such Corporation mortgages, obligations, and other
securities shall be considered to be obligations issued by the
United States for purposes of the limitation.
(2) The provisions of paragraph (1) shall not apply with respect
to a particular person, trust, or organization or class thereof in
any State which, after December 21, 1979, enacts a statute which
specifically names the Corporation and either prohibits or provides
for a more limited authority to purchase, hold, or invest in such
securities by such person, trust, or organization or class thereof
than is provided in paragraph (1). The enactment by any State of
any statute of the type described in the preceding sentence shall
not affect the validity of any contractual commitment to purchase,
hold, or invest which was made prior thereto.
(3) Any authority granted by paragraph (1) and not granted by any
other Federal statute shall expire as of the end of June 30, 1985.
Such expiration shall not affect the validity of any contractual
commitment to purchase, hold, or invest which was made prior
thereto pursuant to paragraph (1), and shall not affect the
validity of any contractual commitment or other action to purchase,
hold, or invest pursuant to any other authorization.
(f) Preferred stock
The Corporation may have preferred stock on such terms and
conditions as the Board of Directors shall prescribe. Any preferred
stock shall not be entitled to vote with respect to the election of
any member of the Board of Directors.
(g) Securities exempt from regulation
All securities issued or guaranteed by the Corporation (other
than securities guaranteed by the Corporation that are backed by
mortgages not purchased by the Corporation) shall, to the same
extent as securities that are direct obligations of or obligations
guaranteed as to principal or interest by the United States, be
deemed to be exempt securities within the meaning of the laws
administered by the Securities and Exchange Commission.
(h) Securities backed by mortgages not purchased by Corporation
(1) The Corporation may not guarantee mortgage-backed securities
or mortgage related payment securities backed by mortgages not
purchased by the Corporation.
(2) The Corporation shall insert appropriate language in all of
the obligations and securities of the Corporation issued under this
section and section 1454 of this title clearly indicating that such
obligations and securities, together with the interest thereon, are
not guaranteed by the United States and do not constitute a debt or
obligation of the United States or any agency or instrumentality
thereof other than the Corporation.
(i) Prohibition on assessment or collection of fee or charge by
United States
Except for fees paid pursuant to sections 1452(c) (!2) and
1455(c) (!2) of this title and assessments pursuant to section 4516
(!2) of this title, no fee or charge may be assessed or collected
by the United States (including any executive department, agency,
or independent establishment of the United States) on or with
regard to the purchase, acquisition, sale, pledge, issuance,
guarantee, or redemption of any mortgage, asset, obligation, or
other security by the Corporation. No provision of this subsection
shall affect the purchase of any obligation by any Federal home
loan bank pursuant to section 1452(a) of this title.
(j) Notes, debentures, or substantially identical types of
unsecured obligations; issuance, maturities, interest rates, etc.
(1) Any notes, debentures, or substantially identical types of
unsecured obligations of the Corporation evidencing money borrowed,
whether general or subordinated, shall be issued upon the approval
of the Secretary of the Treasury and shall have such maturities and
bear such rate or rates of interest as may be determined by the
Corporation with the approval of the Secretary of the Treasury.
(2) Any notes, debentures, of (!3) substantially identical types
of unsecured obligations of the Corporation having maturities of 1
year or less that the Corporation has issued or is issuing as of
August 9, 1989, shall be deemed to have been approved by the
Secretary of the Treasury as required by this subsection. Such
deemed approval shall expire 365 days after August 9, 1989.
(3) Any notes, debentures, or substantially identical types of
unsecured obligations of the Corporation having maturities of more
than 1 year that the Corporation has issued or is issuing as of
August 9, 1989, shall be deemed to have been approved by the
Secretary of the Treasury as required by this subsection. Such
deemed approval shall expire 60 days after August 9, 1989.
(k) Securities in form of debt obligations or trust certificates of
beneficial interest; issuance, maturities, interest rates, etc.
(1) Any securities in the form of debt obligations or trust
certificates of beneficial interest, or both, and based upon
mortgages held and set aside by the Corporation, shall be issued
upon the approval of the Secretary of the Treasury and shall have
such maturities and shall bear such rate or rates of interest as
may be determined by the Corporation with the approval of the
Secretary of the Treasury.
(2) Any securities in the form of debt obligations or trust
certificates of beneficial interest, or both, and based upon
mortgages held and set aside by the Corporation, that the
Corporation has issued or is issuing as of August 9, 1989, shall be
deemed to have been approved by the Secretary of the Treasury as
required by this subsection.