Title 12 — Banks and BankingRelease 119-73

§2285 Functions

Title 12 › Chapter CHAPTER 24— - FEDERAL FINANCING BANK › § 2285

Last updated Apr 6, 2026|Official source

Summary

The Bank can agree to buy or sell, and can buy or sell, debt or bonds that a federal agency issues, sells, or guarantees. A federal agency that can issue or sell those bonds may sell them directly to the Bank. Any purchase must earn at least a minimum return set by the Secretary of the Treasury. The Secretary sets that minimum by looking at either the current average yield on similar-maturity U.S. government marketable securities or, if the Bank has enough of its own securities outstanding, the current average yield on similar-maturity securities of the Bank. The Bank may charge fees for its deals and services to cover all costs and to build reasonable contingency reserves.

Full Legal Text

Title 12, §2285

Banks and Banking — Source: USLM XML via OLRC

(a)The Bank is authorized to make commitments to purchase and sell, and to purchase and sell on terms and conditions determined by the Bank, any obligation which is issued, sold, or guaranteed by a Federal agency. Any Federal agency which is authorized to issue, sell, or guarantee any obligation is authorized to issue or sell such obligations directly to the Bank.

(b)Any purchase by the Bank shall be upon such terms and conditions as to yield a return at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration (1) the current average yield on outstanding marketable obligations of the United States of comparable maturity, or (2) whenever the Bank’s own obligations outstanding are sufficient, the current average yield on outstanding obligations of the Bank of comparable maturity.

(c)The Bank is authorized to charge fees for its commitments and other services adequate to cover all expenses and to provide for the accumulation of reasonable contingency reserves.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2285

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73