12 U.S. Code § 2279aa–13 - Authority to issue obligations to cover guarantee losses of Corporation
(a) Sale of obligations to Treasury
(1) In general
Subject to the limitations contained in section 2279aa–10 (c) of this title and the requirement of paragraph (2), the Corporation may issue obligations to the Secretary of the Treasury the proceeds of which may be used by the Corporation solely for the purpose of fulfilling the obligations of the Corporation under any guarantee provided by the Corporation under this subchapter.
The Secretary of the Treasury may purchase obligations of the Corporation under paragraph (1) only if the Corporation certifies to the Secretary that—
(b) Expeditious transaction required
Not later than 10 business days after receipt by the Secretary of the Treasury of any certification by the Corporation under subsection (a)(2) of this section, the Secretary of the Treasury shall purchase obligations issued by the Corporation in an amount determined by the Corporation to be sufficient to meet the guarantee liabilities of the Corporation.
(c) Limitation on amount of outstanding obligations
The aggregate amount of obligations issued by the Corporation under subsection (a)(1) of this section which may be held by the Secretary of the Treasury at any time (as determined by the Secretary) shall not exceed $1,500,000,000.
(d) Terms of obligation
Each obligation purchased by the Secretary of the Treasury shall bear interest at a rate determined by the Secretary, taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of such obligation.
(e) Coordination with title 31
(1) Authority to use proceeds from sale of Treasury securities
For the purpose of purchasing obligations of the Corporation, the Secretary of the Treasury may use as a public debt transaction the proceeds from the sale by the Secretary of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under such chapter are extended to include such purchases.
Source(Pub. L. 92–181, title VIII, § 8.13, as added Pub. L. 100–233, title VII, § 702,Jan. 6, 1988, 101 Stat. 1704; amended Pub. L. 104–105, title I, § 109(b)(2),Feb. 10, 1996, 110 Stat. 165.)
LII has no control over and does not endorse any external Internet site that contains links to or references LII.