Statute: 1971 ACT AS AMENDED
Title: Title VIII Agricultural Mortgage Secondary Market
Subtitle: Subtitle A - Establishment and Activities of Federal Agricultural Mortgage Corporation
U.S. Code Citation: 12 U.S.C. 2279aa-13
12 U.S.C. 2279aa-13 SEC. 8.13. 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 8.10(c) 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 title.
(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 8.10(c) 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 title.
(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, UNITED STATES CODE.
(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, United States Code, 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 title.
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