
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2279aa-13]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
         SUBCHAPTER VIII--AGRICULTURAL MORTGAGE SECONDARY MARKET
 
 Part A--Establishment and Activities of Federal Agricultural Mortgage 
                               Corporation
 
Sec. 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.

                          (2) Certification

        The Secretary of the Treasury may purchase obligations of the 
    Corporation under paragraph (1) only if the Corporation certifies to 
    the Secretary that--
            (A) the requirements of section 2279aa-10(c) of this title 
        have been fulfilled; and
            (B) the proceeds of the sale of such obligations are needed 
        to fulfill the obligations of the Corporation under any 
        guarantee provided by the Corporation under this subchapter.

(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

                            (1) Interest

        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.

                           (2) Redemption

        The Secretary of the Treasury shall require that such 
    obligations be repurchased by the Corporation within a reasonable 
    time.

(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.

                    (2) Treatment of transactions

        All purchases and sales by the Secretary of the Treasury of 
    obligations issued by the Corporation under this section shall be 
    treated as public debt transactions of the United States.

(f) Authorization of appropriations

    There is authorized to be appropriated to the Secretary of the 
Treasury $1,500,000,000, without fiscal year limitation, to carry out 
the purposes of this subchapter.

(Pub. L. 92-181, title VIII, Sec. 8.13, as added Pub. L. 100-233, title 
VII, Sec. 702, Jan. 6, 1988, 101 Stat. 1704; amended Pub. L. 104-105, 
title I, Sec. 109(b)(2), Feb. 10, 1996, 110 Stat. 165.)


                               Amendments

    1996--Subsec. (a). Pub. L. 104-105 substituted ``section'' for 
``sections 2279aa-6(b) and'' in pars. (1) and (2)(A).

                  Section Referred to in Other Sections

    This section is referred to in sections 2279aa-4, 2279aa-6, 2279aa-
10 of this title.
