to $100,000,000,000 in 30-year United States 
Treasury Bonds. 
(3) CAPITAL
ADEQUACY
RATIO.—The Bank 
shall maintain risk-based capital of no less than 10.0 
percent. 
(4) LIMITATION
ON
PURCHASE
OF
NEWLY 
ISSUED PUBLIC DEBT.—The Bank shall not pur-
chase public debt of the United States, as newly 
issued, except for the purpose of rolling over the ex-
isting Treasury holdings of the Bank or to convert 
the proceeds of cash purchases of the Bank’s pre-
ferred stock into Treasury securities. 
(5) ASSESSMENTS AND PHASE-IN OF LIMITA-
TION ON CAPITAL STOCK.—The Bank’s accumula-
tion of capital stock shall be limited— 
(A) to no more than $150,000,000,000 by 
the end of its first full fiscal year of operations, 
following the end of which fiscal year the Board 
of Governors of the Federal Reserve System 
shall conduct an assessment of the Bank’s oper-
ations and report to Congress and the Bank’s 
Board concerning the ways in which the Bank 
is succeeding or falling short in fulfilling the 
purposes of this Act; 
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kjohnson on DSK79L0C42PROD with BILLS
(B) to no more than $300,000,000,000 by 
the end of its third full fiscal year, following the 
end of which fiscal year the Board of Governors 
of the Federal Reserve System shall conduct 
another assessment of the Bank’s operations 
and submit similar reports to those specified in 
subparagraph (A), noting in particular the ade-
quacy of the Bank’s response to criticisms and 
recommendations included in the assessment 
conducted pursuant to subparagraph (A); 
(C) to no more than $500,000,000,000 by 
the end of its fifth full fiscal year, following the 
end of which fiscal year the Board of Governors 
of the Federal Reserve System shall conduct 
another assessment of the Bank’s operations 
and submit similar reports to those specified in 
subparagraphs (A) and (B), noting in par-
ticular the adequacy of the Bank’s response to 
criticisms and recommendations included in the 
assessments conducted pursuant to subpara-
graphs (A) and (B); and 
(D) thereafter to the full amount set forth 
in paragraph (1), with the Board of Governors 
of the Federal Reserve System conducting peri-
odic assessments of the Bank’s operations and 
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submitting similar reports to those specified in 
subparagraphs (A) through (C) following the 
end of each fifth fiscal year beginning with the 
Bank’s tenth full fiscal year. 
(c) PREFERRED STOCK.— 
(1) IN GENERAL.—All subscribed capital shall 
be exchanged for an equivalent in preferred stock, or 
shares, in the Bank, callable only by the Bank at the 
current market value of the shares during a period 
of 20 years following finalization of a stock purchase 
agreement. Notwithstanding any other provision of 
law, a guarantee of redemption at the then current 
market price of the shares shall be included in the 
stock purchase agreement along with a contractual 
obligation by the United States Treasury to fund the 
redemption. Preferred shareholders shall have no 
voting rights in the Bank. 
(2) DIVIDENDS ON PREFERRED STOCK.—The 
Bank shall pay dividends on its preferred stock 
semiannually at the following rates: 
(A) For stock acquired in exchange for 
Treasury securities by an individual, by an enti-
ty that is not exempt from tax under section 
501 of the Internal Revenue Code of 1986, or 
by the United States Treasury, the same an-
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nual rate as the Treasury security exchanged 
for the stock. 
(B) For stock acquired in exchange for se-
curities by an organization that is exempt from 
tax under section 501 of the Internal Revenue 
Code of 1986, the same annual rate as the 
Treasury security exchanged for the stock plus 
one half of one percent (0.5%). 
(C) For stock purchased in exchange for 
cash by an individual or an entity that is not 
exempt from tax under section 501 of the Inter-
nal Revenue Code of 1986 and for stock ac-
quired in exchange for municipal bonds, the 
same annual rate payable on Treasury bonds 
with a 30-year maturity purchased from the 
Treasury on the day the stock purchase agree-
ment is finalized. 
(D) For stock purchased in exchange for 
cash by an organization that is exempt from tax 
under section 501 of the Internal Revenue Code 
of 1986, the same annual rate payable on 
Treasury bonds with a 30-year maturity on the 
day the stock purchase agreement is finalized 
plus one half of one percent (0.5%). 
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(3) ACQUISITIONS FOR OTHER THAN CASH OR 
TREASURY SECURITIES TREATED AS ACQUISITIONS 
FOR CASH.—For stock acquired in exchange for non- 
cash assets other than Treasury securities, the as-
sets shall be liquidated by the Bank and the pro-
ceeds treated as a cash purchase of stock. 
(4) AUTHORITY
TO
MODIFY
RATES.—If the 
dividends provided for in paragraph (2) generate ei-
ther more or less investment in the Bank’s preferred 
stock than is needed to achieve and maintain the 
Bank’s desired capitalization, the Directors may re-
duce or increase the dividends provided for new ac-
quisitions of preferred stock in one or more of sub-
paragraphs (A) through (D) of paragraph (2) for 
such periods of time as the Directors determine ap-
propriate. 
(5) PRIORITY AND GUARANTEE OF DIVIDEND 
PAYMENTS.—Dividend payments on the Bank’s pre-
ferred stock shall have priority over other uses of in-
terest payments received by the Bank on its capital 
stock holdings of Treasury securities, and any such 
dividends owed in excess of the amount covered by 
these interest payments shall be guaranteed by the 
United States in the stock purchase agreement. 
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(d) BORROWED CAPITAL.—The Bank is further au-
thorized to raise borrowed capital for projects needs, or 
to meet its cash flow (liquidity) needs, by— 
(1) issuing Bonds, with a fixed 5 to 10 year 
maturity; 
(2) maintaining a permanent, revolving dis-
count line of credit account with the Board of Gov-
ernors of the Federal Reserve System; and 
(3) borrowing from other banks or wholesale 
capital markets, under repurchase or other agree-
ments, on a short- or medium-term basis, as deter-
mined by the Bank’s Chief Financial and Risk Offi-
cers, with approval by the Bank’s Board. 
(e) DEPOSITS.—Once chartered as a national bank, 
the Bank— 
(1) shall accept deposits from individuals, cor-
porations, public entities, or any other source, into 
transaction deposit accounts on its books, and pay 
interest on those deposits, in an amount deemed ap-
propriate by the Board; 
(2) may deposit its funds in any bank or other 
financial institution; and 
(3) may utilize the services of electronic trans-
fer systems to transfer funds among any deposit ac-
counts. 
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