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

Summary

The Corporation may sell debt instruments to the Treasury to get money only to pay for guarantee losses it is responsible for, and only under the limits in section 2279aa–10(c). The Treasury will buy those debt notes only after the Corporation certifies that the limits in section 2279aa–10(c) have been met and that the money is needed. After the Treasury gets that certification, it must buy the notes within 10 business days. The Treasury may hold no more than $1,500,000,000 of these notes at any time. The notes will pay interest at a rate the Treasury sets, based on the average rate of marketable U.S. government debt as of the last day of the previous month. The Treasury will require the Corporation to repurchase the notes within a reasonable time. The Treasury may use proceeds from selling certain government securities to buy the notes, and those buys count as public debt transactions. Up to $1,500,000,000 may be made available to the Treasury without a fiscal year limit to carry out these rules.