Title 12 — Banks and BankingRelease 119-73

§2290 Exemptions

Title 12 › Chapter CHAPTER 24— - FEDERAL FINANCING BANK › § 2290

Last updated Apr 6, 2026|Official source

Summary

Exempts the Bank, its assets, funds, and income from most federal, state, and local taxes. Two exceptions apply: land and other tangible property the Bank owns is taxed like similar property owned by others, and the Bank’s debt (its issued obligations) is taxed federally the same as private corporations’ debt. The Bank’s obligations are treated as "exempted securities" under sections 77c(a)(2), 77ddd(a)(4), and 78c(a)(12) of title 15. Agencies that sell obligations to the Bank keep their budget status and accounting under section 2285(a). The Bank’s receipts and payments are not included in the U.S. Government budget totals and do not count against general statutory limits on spending and net lending (budget outlays).

Full Legal Text

Title 12, §2290

Banks and Banking — Source: USLM XML via OLRC

(a)The Bank, its property, its franchise, capital, reserves, surplus, security holdings, and other funds, and its income shall be exempt from all taxation now or hereafter imposed by the United States or by any State or local taxing authority; except that (1) any real property and any tangible personal property of the Bank shall be subject to Federal, State, and local taxation to the same extent according to its value as other such property is taxed, and (2) any obligations issued by the Bank shall be subject to Federal taxation to the same extent as the obligations of private corporations are taxed.

(b)All obligations issued by the Bank pursuant to this chapter shall be deemed to be exempted securities within the meaning of section 77c(a)(2), 77ddd(a)(4), and 78c(a)(12) of title 15.

(c)Nothing herein shall affect the budget status of the Federal agencies selling obligations to the Bank under section 2285(a) of this title, or the method of budget accounting for their transactions. The receipts and disbursements of the Bank in the discharge of its functions shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States.

Reference

Citations & Metadata

Citation

12 U.S.C. § 2290

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73