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12 U.S.C. § 355 — Purchase and sale of obligations of National, State, and municipal governments; open market operations; purchases and sales from or to United States; maximum aggregate amount of obligations acquired directly from or loaned directly to United States

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 239 words · no verdicts yet

in plain englishAI-generated · not legal advice

Federal Reserve Banks may buy and sell certain government debt. They can trade short-term U.S., state, and local government notes and bonds. They may also trade foreign government debt and agency obligations under Federal Reserve rules.

(1) A Federal Reserve Bank can buy and sell bonds and notes of the United States. It can also buy and sell certain bonds issued under section 1463(c) of this title, but only if they mature within six months of the date the Bank buys them. It can buy and sell bills, notes, revenue bonds, and warrants that mature within six months of purchase, if a state, county, district, or municipality in the continental United States issued them while waiting to collect taxes or receive revenue it is sure to get. This includes irrigation, drainage, and reclamation districts. The Bank can also buy and sell debt of a foreign government or its agency, as long as that debt is fully guaranteed for principal and interest. These purchases must follow rules set by the Board of Governors of the Federal Reserve System. Despite anything else in this chapter, a Federal Reserve Bank can buy and sell any bond, note, or other debt that is a direct U.S. obligation, or one the United States fully guarantees for principal and interest, no matter how long until it matures. But this can only happen in the open market. (2) A Federal Reserve Bank can also buy and sell, in the open market, any direct obligation of a U.S. government agency, or any obligation a U.S. agency fully guarantees for principal and interest. The Federal Open Market Committee directs and regulates these trades.
the actual law source: uscode.house.gov ↗public domain

Every Federal Reserve bank shall have power:

(1)

To buy and sell, at home or abroad, bonds and notes of the United States, bonds issued under the provisions of subsection (c) of section 1463 1 of this title and having maturities from date of purchase of not exceeding six months, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drainage and reclamation districts, and obligations of, or fully guaranteed as to principal and interest by, a foreign government or agency thereof, such purchases to be made in accordance with rules and regulations prescribed by the Board of Governors of the Federal Reserve System. Notwithstanding any other provision of this chapter, any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.

(2)

To buy and sell in the open market, under the direction and regulations of the Federal Open Market Committee, any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States.

Source credit: (Dec. 23, 1913, ch. 6, § 14(b), 38 Stat. 264; Jan. 31, 1934, ch. 7, § 16(b), 48 Stat. 348; Apr. 27, 1934, ch. 168, § 7(b), 48 Stat. 646; Aug. 23, 1935, ch. 614, title II, §§ 203(a), 206(a), 49 Stat. 704, 706; Mar. 27, 1942, ch. 199, title IV, § 401, 56 Stat. 180; Apr. 28, 1947, ch. 44, 61 Stat. 56; June 30, 1950, ch. 425, 64 Stat. 307; June 23, 1952, ch. 454, 66 Stat. 154; June 29, 1954, ch. 422, 68 Stat. 329; June 25, 1956, ch. 447, 70 Stat. 339; Pub. L. 85–476, June 30, 1958, 72 Stat. 261; Pub. L. 86–567, July 1, 1960, 74 Stat. 295; Pub. L. 87–353, § 3(d), Oct. 4, 1961, 75 Stat. 773; Pub. L. 87–506, June 28, 1962, 76 Stat. 112; Pub. L. 88–344, June 30, 1964, 78 Stat. 235; Pub. L. 89–484, June 30, 1966, 80 Stat. 235; Pub. L. 89–597, § 6, Sept. 21, 1966, 80 Stat. 825; Pub. L. 90–300, May 4, 1968, 82 Stat. 113; Pub. L. 91–360, July 31, 1970, 84 Stat. 668; Pub. L. 92–45, July 2, 1971, 85 Stat. 100; Pub. L. 93–93, Aug. 14, 1973, 87 Stat. 314; Pub. L. 93–495, title I, § 109, Oct. 28, 1974, 88 Stat. 1505; Pub. L. 94–125, Nov. 12, 1975, 89 Stat. 678; Pub. L. 95–22, title II, § 201, Apr. 19, 1977, 91 Stat. 49; Pub. L. 95–128, title II, § 209, Oct. 12, 1977, 91 Stat. 1131; Pub. L. 95–154, Nov. 7, 1977, 91 Stat. 1256; Pub. L. 95–534, Oct. 27, 1978, 92 Stat. 2032; Pub. L. 96–18, §§ 1, 3, June 8, 1979, 93 Stat. 35, 36; Pub. L. 96–221, title I, § 105(b)(2), Mar. 31, 1980, 94 Stat. 140.)

history & why it existsrecord from the source credit
  • 1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 264
  • 1934Amended · Act of Jan. 31, 1934, ch. 7 · 48 Stat. 348
  • 1934Amended · Act of Apr. 27, 1934, ch. 168 · 48 Stat. 646
  • 1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 704, 706
  • 1942Amended · Act of Mar. 27, 1942, ch. 199 · 56 Stat. 180
  • 1947Amended · Act of Apr. 28, 1947, ch. 44 · 61 Stat. 56
  • 1950Amended · Act of June 30, 1950, ch. 425 · 64 Stat. 307
  • 1952Amended · Act of June 23, 1952, ch. 454 · 66 Stat. 154
  • 1954Amended · Act of June 29, 1954, ch. 422 · 68 Stat. 329
  • 1956Amended · Act of June 25, 1956, ch. 447 · 70 Stat. 339
  • 1958Amended · Pub. L. 85-476 · 72 Stat. 261
  • 1960Amended · Pub. L. 86-567 · 74 Stat. 295
  • 1961Amended · Pub. L. 87-353 · 75 Stat. 773
  • 1962Amended · Pub. L. 87-506 · 76 Stat. 112
  • 1964Amended · Pub. L. 88-344 · 78 Stat. 235
  • 1966Amended · Pub. L. 89-484 · 80 Stat. 235
  • 1966Amended · Pub. L. 89-597 · 80 Stat. 825
  • 1968Amended · Pub. L. 90-300 · 82 Stat. 113
  • 1970Amended · Pub. L. 91-360 · 84 Stat. 668
  • 1971Amended · Pub. L. 92-45 · 85 Stat. 100
  • 1973Amended · Pub. L. 93-93 · 87 Stat. 314
  • 1974Amended · Pub. L. 93-495 · 88 Stat. 1505
  • 1975Amended · Pub. L. 94-125 · 89 Stat. 678
  • 1977Amended · Pub. L. 95-22 · 91 Stat. 49
  • 1977Amended · Pub. L. 95-128 · 91 Stat. 1131
  • 1977Amended · Pub. L. 95-154 · 91 Stat. 1256
  • 1978Amended · Pub. L. 95-534 · 92 Stat. 2032
  • 1979Amended · Pub. L. 96-18 · 93 Stat. 35, 36
  • 1980Amended · Pub. L. 96-221 · 94 Stat. 140

A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.

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