Title 12, Banks and BankingRelease 119-110
§2285 Functions
Title 12 › CHAPTER 24 — FEDERAL FINANCING BANK › § 2285
Summary
The Bank may buy and sell debt that federal agencies issue, sell, or guarantee, and those agencies may sell that debt directly to the Bank. Any purchase must earn at least a rate set by the Secretary of the Treasury, based on either (1) the current average yield of U.S. marketable debt of similar maturity or (2) if the Bank has enough of its own debt outstanding, the Bank’s average yield for similar maturities. The Bank may charge fees that cover its costs and allow it to build reasonable contingency reserves.
Full Legal Text
Title 12, §2285
Banks and Banking, Source: USLM XML via OLRC
(a)Purchase and sale of obligations issued, sold, or guaranteed by Federal agencies
The Bank is authorized to make commitments to purchase and sell, and to purchase and sell on terms and conditions determined by the Bank, any obligation which is issued, sold, or guaranteed by a Federal agency. Any Federal agency which is authorized to issue, sell, or guarantee any obligation is authorized to issue or sell such obligations directly to the Bank.
(b)Yield
Any purchase by the Bank shall be upon such terms and conditions as to yield a return at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration (1) the current average yield on outstanding marketable obligations of the United States of comparable maturity, or (2) whenever the Bank’s own obligations outstanding are sufficient, the current average yield on outstanding obligations of the Bank of comparable maturity.
(c)Fees
The Bank is authorized to charge fees for its commitments and other services adequate to cover all expenses and to provide for the accumulation of reasonable contingency reserves.
Reference
Citations & Metadata
Citation
12 U.S.C. § 2285
Title 12, Banks and Banking
Last Updated
Sep 22, 2026
Release point: 119-110