§3017 — Title 12 Banks and Banking | U.S. Code

Summary

The Bank may raise money by selling bonds, notes, debentures, and other debt instruments. The Bank’s Board decides when to sell them, what interest to pay, and the other terms. At any one time, the total amount outstanding cannot be more than ten times the paid-in capital and surplus of the Bank. The Bank may buy back its own debt and may use agents to sell it by negotiation, offer, bid, syndicate sale, or other methods, and can deliver the securities by book entry, wire transfer, or other suitable means. These obligations are not backed by the United States and do not create any debt or liability for the United States or its agencies — only the Bank is responsible.

Title 12, §3017

Banks and Banking — Source: USLM XML via OLRC

(a)The Bank is authorized to obtain funds through the public or private sale of its bonds, debentures, notes, and other evidences of indebtedness. Such obligations shall be issued at such times, bear interest at such rates, and contain such terms and conditions as the Board shall determine: Provided, however, That the amount of such obligations which may be outstanding at any one time pursuant to this section shall not exceed ten times the paid-in capital and surplus of the Bank.

(b)The Bank may purchase its own obligations, and may provide for the sale of any such obligations through a fiscal agent or agents, by negotiation, offer, bid, syndicate sale, or otherwise, and may deliver such obligations by book entry, wire transfer, or such other means as may be appropriate.

(c)Obligations issued under this section shall not be guaranteed by the United States and shall not constitute a debt or obligation of the United States or any agency or instrumentality thereof other than the Bank.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1981—Subsec. (a). Pub. L. 97–35, § 394(g)(1), struck out requirement respecting consultation with the Secretary of the Treasury. Subsecs. (b) to (d). Pub. L. 97–35, § 396(d), redesignated subsecs. (c) and (d) as (b) and (c), respectively, and struck out former subsec. (b) relating to discretionary authority for issuance to and purchase by Secretary of Treasury.

Statutory Notes and Related Subsidiaries

Effective Date

of 1981 Amendment Pub. L. 97–35, title III, § 394(g)(2), Aug. 13, 1981, 95 Stat. 437, provided that: “The amendment made by paragraph (1) [amending this section] shall take effect on the day after the Final Government Equity Redemption Date [Dec. 31, 1981].” For definition of “Final Government Equity Redemption Date”, see section 396(a) of Pub. L. 97–35, set out as a note under section 3012 of this title. Amendment by section 396(d) of Pub. L. 97–35 effective on the day after the Final Government Equity Redemption Date (Dec. 31, 1981), see section 396(i) of Pub. L. 97–35, set out as a note under section 3011 of this title.

§3017 Bonds, debentures, notes and other evidences of indebtedness