§2279aa–13 Authority to Issue Obligations to Cover Guarantee Losses of Corporation

Summary

The Corporation can sell obligations (IOUs) to the Secretary of the Treasury to get money only to pay guarantees it made under this subchapter, and only if it follows the limits in section 2279aa–10(c). The Treasury will buy those IOUs only after the Corporation certifies that the limits in section 2279aa–10(c) are met and that the sale proceeds are needed to pay guarantee obligations. Within 10 business days after getting that certification, the Treasury must buy enough obligations to cover the Corporation’s guarantee liabilities, in the amount the Corporation says is needed. The Treasury may not hold more than $1,500,000,000 of these obligations at any time. The Treasury will set the interest rate by looking at the average rate on U.S. marketable debt as of the last day of the previous month and will require the Corporation to repurchase the obligations within a reasonable time. The Treasury may use proceeds from selling its own securities under chapter 31 to buy the Corporation’s obligations, and all such buys and sales are treated as public debt transactions. Up to $1,500,000,000 is authorized to be appropriated to the Treasury, with no fiscal year limit, to carry out these purposes.