§ 1824.
(d)
Borrowing for the Deposit Insurance Fund from insured depository institutions
(1)
Borrowing authority
The Corporation may issue obligations to insured depository institutions, and may borrow from insured depository institutions and give security for any amount borrowed, and may pay interest on (and any redemption premium with respect to) any such obligation or amount to the extent—
(A)
the proceeds of any such obligation or amount are used by the Corporation solely for purposes of carrying out the Corporation’s functions with respect to the Deposit Insurance Fund; and
(B)
the terms of the obligation or instrument limit the liability of the Corporation or the Deposit Insurance Fund for the payment of interest and the repayment of principal to the amount which is equal to the amount of assessment income received by the Fund from assessments under
section 1817 of this title.
(2)
Limitations on borrowing
(A)
Applicability of public debt limit
For purposes of the public debt limit established in section 3101(b) of title 31, any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an obligation to which such limit applies.
(B)
Applicability of FDIC borrowing limit
For purposes of the dollar amount limitation established in subsection (a), any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an amount borrowed from the Treasury under such subsection.
(C)
Interest rate limit
The rate of interest payable in connection with any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall not exceed an amount determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities.
(D)
Obligations to be held only by BIF members
1
So in original. Probably should be “insured depository institutions”.
The terms of any obligation issued by the Corporation under paragraph (1) shall provide that the obligation will be valid only if held by a
2
So in original. Probably should be “an”.
insured depository institution.
(3)
Liability of the Deposit Insurance Fund
Any obligation issued or amount borrowed under paragraph (1) shall be a liability of the Deposit Insurance Fund.
(4)
Terms and conditions
Subject to paragraphs (1) and (2), the Corporation shall establish the terms and conditions for obligations issued or amounts borrowed under paragraph (1), including interest rates and terms to maturity.
(5)
Investment by insured depository institutions
(A)
Authority to invest
Subject to subparagraph (B) and notwithstanding any other provision of Federal law or the law of any State, any insured depository institution may purchase and hold for investment any obligation issued by the Corporation under paragraph (1) without limitation, other than any limitation the appropriate Federal banking agency may impose specifically with respect to such obligations.
(B)
Investment only from capital and retained earnings
Any insured depository institution may purchase obligations or make loans to the Corporation under paragraph (1) only to the extent the purchase money or the money loaned is derived from the member’s
3
So in original. Probably should be “institution’s”.
capital or retained earnings.
(6)
Accounting treatment
In accounting for any investment in an obligation purchased from, or any loan made to, the Corporation for purposes of determining compliance with any capital standard and preparing any report required pursuant to section 1817(a) of this title, the amount of such investment or loan shall be treated as an asset.
([Sept. 21, 1950, ch. 967, § 2][14], [64 Stat. 890]; [Pub. L. 101–73, title II, § 218], Aug. 9, 1989, [103 Stat. 261]; [Pub. L. 101–508, title II, § 2005], Nov. 5, 1990, [104 Stat. 1388–16]; [Pub. L. 102–242, title I], §§ 101, 103(a), 105, Dec. 19, 1991, [105 Stat. 2236], 2237, 2239; [Pub. L. 102–550, title XVI, § 1603(a)(2)], Oct. 28, 1992, [106 Stat. 4078]; [Pub. L. 103–204, § 10], Dec. 17, 1993, [107 Stat. 2389]; [Pub. L. 104–208, div. A, title II, § 2704(d)(14)(N)]–(Q), Sept. 30, 1996, [110 Stat. 3009–493]; [Pub. L. 109–171, title II, § 2102(b)], Feb. 8, 2006, [120 Stat. 9]; [Pub. L. 109–173, § 8(a)(20)]–(24), Feb. 15, 2006, [119 Stat. 3613], 3614; [Pub. L. 111–22, div. A, title II, § 204(c)(1)], May 20, 2009, [123 Stat. 1649].)