§1433 Exemption From Taxation; Obligations Acceptable as Credit on Debt of Home Owner

Summary

Banks’ bonds, notes, debentures, and similar obligations, including consolidated Federal Home Loan Bank bonds, are free from most taxes on both principal and interest. They are not exempt from surtaxes, or from estate, inheritance, or gift taxes. A bank’s franchise, capital, reserves, surplus, advances, and income are also tax-exempt, but the bank’s land and buildings are taxed like other real property. A bank must accept its own notes, debentures, or bonds with unearned coupons at face value as payment or credit toward a homeowner’s debt.