Title 12, Banks and BankingRelease 119-102
§1723c Obligations, Participations, or Other Instruments as Lawful Investments; Acceptance as Security; Exempt Securities
Title 12 › CHAPTER 13 — NATIONAL HOUSING › SUBCHAPTER III — NATIONAL MORTGAGE ASSOCIATIONS › § 1723c
Summary
Permits obligations, stock, and similar instruments issued by either of the two named corporate bodies to be lawful investments and acceptable as security for fiduciary, trust, and public funds controlled by the United States or its officers, and treats them as exempt, like U.S. government securities, under SEC rules.
Full Legal Text
Title 12, §1723c
Banks and Banking, Source: USLM XML via OLRC
All obligations, participations, or other instruments issued by either of the bodies corporate named in section 1717(a)(2) of this title shall be lawful investments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority and control of the United States or any officer or officers thereof. All stock, obligations, securities, participations, or other instruments issued pursuant to this subchapter shall, to the same extent as securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1992—Pub. L. 102–550 struck out before period at end “; but all such issuances by the Association and all issuances of stock, and debt obligations convertible into stock, by the corporation shall be made only with the approval of the Secretary of Housing and Urban Development”. 1984—Pub. L. 98–440 inserted “by the Association and all issuances of stock, and debt obligations convertible into stock, by the corporation”. 1968—Pub. L. 90–448 substituted “either of the bodies corporate named in section 1717(a)(2) of this title” for “the Association,” and inserted provisions directing that all stock, obligations, securities, participations, or other instruments issued pursuant to this subchapter be deemed to be exempt securities, and requiring approval of the Secretary for all issuances. 1964—Pub. L. 88–560 inserted “, participations, or other instruments” after “obligations”.
Statutory Notes and Related Subsidiaries
Effective Date
of 1968 AmendmentFor
Effective Date
of amendment by title VIII of Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as an
Effective Date
note under section 1716b of this title.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1723c
Title 12, Banks and Banking
Last Updated
Aug 21, 2026
Release point: 119-102