Title 12 — Banks and BankingRelease 119-73
§1723b Investment of funds
Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › Subchapter SUBCHAPTER III— - NATIONAL MORTGAGE ASSOCIATIONS › § 1723b
Summary
The Association must keep money not tied up in mortgages, securities, or facilities as cash, in U.S. government-backed securities, or in other investments allowed for trusts and public funds.
Full Legal Text
Title 12, §1723b
Banks and Banking — Source: USLM XML via OLRC
Moneys of the Association not invested in mortgages or other security holdings or in operating facilities shall be kept in cash on hand or on deposit, or invested in obligations of the United States or guaranteed thereby, or in obligations, participations, or other instruments which are lawful investments for fiduciary, trust, or public funds.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
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 holdings” 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”.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1723b
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73