§2294a — Title 12 Banks and Banking | U.S. Code

Summary

The HUD Secretary may, beginning October 1, 1981, make contracts to send regular payments to the Federal Financing Bank so the Bank’s costs are covered when it buys notes or bonds from local public housing agencies to fund public housing under 42 U.S.C. 1437c(c). These contracts can only be done if Congress approves them in appropriation acts, and the total amount obligated over their life cannot be more than $400,000,000. Congress can appropriate whatever money is needed to make those payments. This contract power replaces any similar contract authority under 12 U.S.C. 2294(b), except for authority given to the Secretary before October 1, 1981.

Title 12, §2294a

Banks and Banking — Source: USLM XML via OLRC

In addition to any authority provided before October 1, 1981, the Secretary of Housing and Urban Development may, on and after October 1, 1981, enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section 2294(b) of this title) issued by local public housing agencies for purposes of financing public housing projects authorized by section 1437c(c) of title 42. Notwithstanding any other provision of law, such contracts may be entered into only to the extent approved in appropriation Acts, and the aggregate amount which may be obligated over the duration of such contracts may not exceed $400,000,000. There are hereby authorized to be appropriated any amounts necessary to provide for such payments. The authority to enter into contracts under this subsection shall be in lieu of any authority (except for authority provided specifically to the Secretary before October 1, 1981) of the Secretary to enter into contracts for such purposes under section 2294(b) of this title.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as part of the Housing and Community Development

Amendments

of 1981 and also as part of the Omnibus Budget Reconciliation Act of 1981, and not as part of the Federal Financing Bank Act of 1973 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as a note under section 3701 of this title.

§2294a Contracts for Periodic Payments to Offset Costs of Purchase of Obligations of Local Public Housing Agencies