Title 12 — Banks and BankingRelease 119-73not60
§2285 Functions
Title 12 › Chapter 24— FEDERAL FINANCING BANK › § 2285
Summary
The Bank may promise to buy or sell, and may actually buy or sell, any security a federal agency issues, sells, or guarantees. Federal agencies that can issue or back those securities may sell them directly to the Bank. Any purchase must earn at least a rate set by the Secretary of the Treasury, based on either comparable U.S. marketable Treasury yields or, if the Bank has enough of its own debt, the Bank’s own comparable yields. The Bank may charge fees to cover costs and build reasonable reserve funds.
Full Legal Text
Title 12, §2285
Banks and Banking — Source: USLM XML via OLRC
(a)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)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)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
Apr 3, 2026
Release point: 119-73not60