An Act to establish a Federal Financing Bank, to provide for coordinated and more efficient financing of Federal and federally assisted borrowings from the public, and for other purposes.
PL 93-224 (H.R.5874), enacted 12/29/1973

87 STAT. ] 
PUBLIC LAW 93-224-DEC. 29, 1973 
^>37 
Public Law 93-224 
A N A C T 
December 29, 1973 
r jj p 
58741 
To establish a Federal Financing Bank, to provide for coordinated and more —LJ—'. 
efficient financing of Federal and federally assisted borrowings from the public, 
and for other purposes. 
Be it enacted hy the Senate and Iloune of Representatives 
of the 
United States of Amerh-a hi Congress assembled^ That this Act may i„g e^nk^A^c^^or" 
be cited as the "Federal Financing Bank Act of 1973''. 
1973. 
FIXDIXGS AXD DECLARATION OF PURPOSE 
SEC. 2. The Congress finds that demands for funds through Federal 
and federally assisted borrowing programs are increasing faster than 
the total supply of credit and that such borrowings are not adequately 
coordinated with overall Federal fiscal and debt management policies. 
The purpose of this Act is to assure coordination of these programs 
with the overall economic and fiscal policies of the Government, to 
reduce the costs of P^edei'al and federally assisted borrowings from the 
public, and to assure that such borrowings are financed in a manner 
least disi'uptive of private financial markets and institutions. 
DEFINITIONS 
SEC. ;>. For the purposes of this Act-— 
(1) The term "Federal agency" means an executive department, an 
independent Federal establishment, or a corporation or other entity 
established by the Congress which is owned in whole or in part by the 
United States. 
(2) The term "obligation" means any note, bond, debenture, or 
other evidence of indebtedness, but does not include Federal Reserve 
notes or stock evidencing an ownership interest in the issuing Federal 
agency. 
(3) The term "guarantee" means any guarantee, insurance, or other 
pledge with respect to the payment of all or part of the principal or 
interest on any obligation, but does not include the insurance of 
deposits, shares, or other v\-ithdrawable accounts in financial institu-
tions, or any guarantee or pledge arising out of a statutory obligation 
to insure such deposits, shares, or other withdraw^able accounts. 
(4) The term "Bank" means the Federal Financing Bank estab-
1 islied by section 4 of this Act. 
CREATION OF BANK 
SEC. 4. There is hereby created a body corporate to be known as the 
Federal Financing Bank, w^hich shall have succession until dissolved 
by an Act of Congress. The Bank shall be subject to the general super-
vision and direction of the Secretary of the Treasury. The Bank shall 
be an instrumentality of the United States Government and shall 
maintain such offices as may be necessary or appropriate in the conduct 
of its business. 
liOARD O F 
D I R E C T O R S 
SEC. 5. (a) The Bank shall have a Board of Directors consisting of 
five persons, one of whom shall be the Secretary of the Treasury as 
Chairman of the Board, and four of wiiom shall be appointed by the 
President from among the officers or employees of the Bank or of any 
Federal agency. The Chairman and each oi^lier member of the Board 
may designate some other officer or employee of the Government to 
serve in his place. 
938 
PUBLIC LAW 93-224-DEC. 29, 1973 
[87 STAT. 
Meetings, 
^j^) jlie Board of Dii-ectors shall meet at the call of its Chairman. 
The Board shall determine the general jiolicies which shall govern the 
operations of the Bank. The Chairman of the Board shall select and 
effect the appointment of qualified persons to fill such offices as may be 
provided for in the bylaws, and such persons shall be the executive 
officers of the Bank and shall discharge such executive functions, 
powers, and duties as may be provided for in the bylaws or by the 
Board of Directors. The members of the Board and their designees 
shall not receive compensation for their services on the Board. 
FUNCTIONS 
SEC. 6. (a) The Bank is authorized to make commitments to pur-
chase and sell, and to 2)urchase and sell on terms and conditions deter-
mined by the Bank, any obligation which is issued, sold, or guaranteed 
by a Federal agency. Any Federal agency which is authorized to issue, 
sell, or guarantee any obligation is authorized to issue or sell such obli-
gations directly to the Bank. 
(b) Any purchase by the Bank shall be upon such terms and con-
ditions as to yield a return at a rate not less than a rate determined 
by the Secretary of the Treasury taking into consideration (1) the 
current average yield on outstanding marketable obligations of the 
United States of comparable maturity, or (2) whenever the Bank's 
own obligations outstanding are sufficient, the current average yield 
on outstanding obligations of the Bank of comparable maturity. 
^^^^' 
(c) The Bank is authorized to charge fees for its commitments 
and other services adequate to cover all expenses and to provide for 
the accumulation of reasonable contingency reserves. 
TREASURY APPROVAL 
SEC. 7. (a) To insure the orderly and coordinated marketing of 
Treasury and Federal agency obligations and appropriate financing 
planning with respect thereto, and to facilitate the effective financing 
of programs authorized by law" subject to the applicable provisions 
of such law, the prior approval of the Secretary of the Treasury shall 
be required wdth respect to— 
(1) the method of financing, 
(2) the source of financing, 
(3) the timing of financing in relation to market conditions 
and financing by other Federal agencies, and 
(4) the financing terms and conditions, including rates of 
interest and maturities, 
of obligations issued or sold by any Federal agency; except that the 
approval of the Secretary of the Treasury shall not be required with 
respect to (A) obligations issued or sold pursuant to an Act of 
Congress which expressly prohibits any guarantee of such obligations 
by the United States, and (B) obligations issued or sold by the 
Farmers Home Administration. 
(b) Upon receipt of a request from a Federal agency for his 
approval under subsection (a) of this section, the Secretary of the 
Treasury shall act promptly either to grant his approval or to advise 
the agency of the reasons for withholding his approval. In no case 
shall the Secretary of the Treasury withhold such approval for a 
period longer than sixty days unless, prior to the end of such period, he 
submits to the Congress a detailed explanation of his reasons for so 
doing. In no case shall the Secretary withhold such approval for a 
period longer than one hundred and twenty days. To the maximum 
extent practicable, withholdings of approval shall be made in a man-
ner which is not disproportionately detrimental to the functioning of 
87 STAT.] 
PUBLIC LAW 93-224-DEC. 29, 1973 
939 
any particular type of Federal program. Expedited treatment shall be 
accorded in any case in which the Federal agency advises the Secretary 
of the Treasury that unusual circumstances require such treatment. 
(c) Federal agencies subject to this section shall submit financing 
plans to the Secretary of the Treasury at such times and in such forms 
as he shall prescribe. 
INITIAL CAPITAL. 
SEC. 8. The Secretary of the Treasury is authorized to advance the 
funds necessary to provide initial capital to the Bank. Each such 
advance shall be upon such terms and conditions as to yield a return at 
a rate not less than a rate determined by the Secretary of the Treas-
ury, taking into consideration the current average yield on outstand-
ing marketable obligations of the United States of comparable 
maturity. Interest payments on such advances may be deferred, at the 
discretion of the Secretary, but any such deferred payments shall 
themselves bear interest at the rate specified in this section. There is 
authorized to be appropriated not to exceed $100,000,000, which shall 
be available for the purposes of this section without fiscal year 
limitation. 
OBIJGATIOXS o r THE BANK 
SEC. 9. (a) The Bank is authorized, with the approval of the Secre-
tary of the Treasury, to issue publicly and have outstanding at any 
one time not in exce^^s of $ir),0()(),()()0,()0(), or such additional amounts 
as may be authorized in appropriations Acts, of obligations having 
such maturities and bearing such rate or rates of interest as may be 
determined by the Bank. Such obligations may be redeemable at the 
option of the Bank before maturity in such manner as may be stipu-
lated therein. So far as is feasible, the debt structure of the Bank shall 
be commensurate with its asset structure. 
(b) The Bank is also authorized to issue its obligations to the Secre-
tary of the Treasury and the Secretary of the Treasury may in his 
discretion purchase or agree to purchase any such obligations, and for 
such purpose the Secretary of the Treasury is authorized to use as a 
public debt transaction the proceeds of the sale of any securities here-
after issued under the Second Liberty Bond Act, and the purposes for 
which securities may be issued under the Second Liberty Bond Act 
are extended to include such purchases. Each purchase of obligations 
by the Secretary of the Treasury under this subsection shall be upon 
such terms and conditions as to yield a return at a rate not less than 
a rate determined by the Secretary of the Treasury, taking into con-
sideration the current average yield on outstanding marketable obliga-
tions of the United States of comparable maturity. The Secretary of 
the Treasury may sell, upon such terms and conditions and at such 
price or prices as he shall determine, any of the obligations acquired 
by him under this subsection. All purchases and sales by the Secretary 
of the Treasury of such obligations under this subsection shall be 
treated as public debt transactions of the United States. 
(c) The Bank may require the Secretary of the Treasury to purchase 
obligations of the Bank issued pursuant to subsection (b) in such 
amounts as will not cause the holding by the Secretary of the Treasury 
resulting from such required purchases to exceed $5,000,000,000 at any 
one time. This subsection shall not be construed as limiting the author-
ity of the Secretary to purchase obligations of the Bank in excess of 
such amount. 
(d) Obligations of the Bank issued pursuant to this section shall 
be lawful investments, and may be accepted as security for all fidu-
ciary, trust, and public funds, the investment or deposit of which shall 
Agency financ-
ing plans, sub-
mittal to Secre-
tary of Treasury, 
Advances, au-
thorization. 
Appropriation. 
40 Stat. 288. 
31 u s e 774. 
940 
PUBLIC LAW 93-224-DEC. 29, 1973 
[87 STAT. 
be under the authority or control of the United States, the District of 
Columbia, the Commonwealth of Puerto Eico, or any territory or pos-
session of the United States, or any agency or instrumentality of any 
of the foregoing, or any officer or officers thereof. 
GENERAL POWERS 
SEC. 10. The Bank shall have power— 
(1) to sue and be sued, complain, and defend, in its corporate 
name; 
(2) to adopt, alter, and use a corporate seal, which shall be 
judicially noticed; 
(3) to adopt, amend, and repeal bylaws, rules, and regulations 
as may be necessary for the conduct of its business; 
(4) to conduct its business, carry on its operations, and have 
offices and exercise the powers granted by this Act in any State 
without regard to any qualification or similar statute in any 
State; 
(5) to lease, purchase, or otherwise acquire, own, hold, improve, 
use, or otherwise deal in and Avith any property, real, personal, or 
mixed, or any interest therein, wherever situated; 
(6) to accept gifts or donations of services, or of property, 
real, personal, or mixed, tangible or intangible, in aid of any of 
the purposes of the Bank; 
(7) to sell, conv^ey, mortgage, pledge, lease, exchange, and 
otherwise dispose of its property and assets; 
(8) to appoint such officers, attorneys, employees, and agents 
as may be required, to define their duties, to fix and to pay such 
compensation for their services as may be determined, subject to 
the civil service and classification laws, to require bonds for them 
and pay the premium thereof; 
(9) to enter into contracts, to execute instruments to incur 
liabilities, and to do all things as are necessary or incidental to 
the proper management of its afi^airs and the proper conduct of 
its business; 
(10) to act through any corporate or other agency or instru-
mentality of the United States, and to utilize the services thereof 
on a reimbursable basis, and any such agency or instrumentality 
is authorized to provide services as requested by the Bank; and 
(11) to determine the character of and the necessity for its 
obligations and expenditures, and the manner in which they shall 
be incurred, allowed, and paid, subject to provisions of law spe-
cifically applicable to Government corporations. 
EXEMPTIONS 
Tax exemption. 
^-^(.^ n 
(^g^^ -phc Bank, its property, its franchise, capital, reserves, 
surplus, security holdings, and other funds, and its income shall be 
exempt from all taxation now or hereafter imposed by the United 
States or by any State or local taxing authority; except that (1) any 
real property and any tangible personal property of the Bank shall 
be subject to Federal, State, and local taxation to the same extent 
according to its value as other such property is taxed, and (2) any 
obligations issued by the Bank shall be subject to Federal taxation 
to the same extent as the obligations of private corporations are taxed. 
(b) All obligations issued by the Bank pursuant to this Act shall 
be deemed tx) be exempted securities within the meaning of section 
-3(a)(2) of the Securities Act of 1933 (15 U.S.C. 77c(a)(2)), of 
section 3(a) (12) of the Securities Exchange Act of 1934 (15 U.S.C. 
84 Stat. 1435, 
78c(a) (12)), and of section 304(a) (4) of the Trust Indenture Act 
53 Stat. 1153; 
of 1939 (15 U.S.C. 77ddd(a) ( 4 ) ) . 
84 Stat. 1499. 
84 Stat. 14? 
87 STAT. ] 
PUBLIC LAW 93-224-DEC. 29, 1973 
941 
(c) Nothing herein shall affect the budget status of the Federal 
agencies selling obligations to the Bank under section 6(a) of this 
Act, or the method of budget accounting for their transactions. The 
receipts and disbursements of the Bank in the discharge of its func-
tions shall not be included in the totals of the budget of the United 
States Government and shall be exempt from any general limitation 
imposed by statute on expenditures and net lending (budget outlays) 
of the United States. 
PREPARATION OF OBLIGATIONS 
SEC. 12. In order to furnish obligations for delivery by the Bank, the 
Secretary of the Treasury is authorized to prepare such obligations in 
such form as the Bank may approve, such obligations when prepared 
to be held in the Treasury subject to delivery upon order by the Bank. 
The engraved plates, dies, bed pieces, and other material executed in 
connection therewith, shall remain in the custody of the Secretary of 
the Treasury. The Bank shall reimburse the Secretary of the Treasury refm'b'ur"stmTnt!' 
for any expenditures made in preparation, custody, and delivery of 
such obligations. 
ANNUAL 
REPORT 
SEC. 13. The Bank shall, as soon as practicable after the end of each denfand c°or-'"'" 
fiscal year, transmit to the President and the Congress an annual report gress. 
of its operations and activities. 
OBLIGATIONS ELIGIBLE FOR PURCHASE BY NATIONAL BANKS 
SEC. 14. The sixth sentence of the seventh paragraph of section 5136 
of the Revised Statutes, as amended (12 U.S.C. 24), is amended by 
inserting "or obligations of the Federal Financing Bank" immediately 
after '"or obligations, participations, or other instruments of or issued 
by the Federal National Mortgage Association or the Government 
National ]\Iortgage Association,". 
(iOVERXIMENT CORPORATION CONTROL ACT 
SEC. 15. Tlie budget and audit provisions of the Government Corpo-
ration Control Act (31 U.S.C. 841 et seq.) shall be applicable to the 
59 stat. 597. 
Federal Financing Bank in the same manner as they are applied to 
the wholly owned Government corporations named in section 101 of 
such Act (31 U.S.C. 846). 
se stat. 1274. 
PAYMENTS o x 
BEHALF OF PUBLIC BODIES 
SEC. 16. (a) Notwithstanding any other provision of this Act, the 
purchase by the Bank of the obligations of any local public body or 
agency within the United States shall be made upon such terms and 
conditions as may be necessary to avoid an increase in borrowing costs 
to such local public body or agency as a result of the purchase by the 
Bank of its obligations. The head of the Federal agency guaranteeing 
such obligations, in consultation with the Secretary of the Treasury, 
shall estimate the borrowing costs that would be incurred by the local 
public body or agency if its obligations w^ere not sold to the Bank. 
(b) The Federal agency guaranteeing obligations purchased by the 
Bank may contract to make periodic payments to the Bank which 
shall be sufficient to offset the costs to the Bank of purchasing obliga-
tions of local public bodies or agencies upon terms and conditions as 
prescribed in this section rather than as prescribed by section 6. Such 
contracts may be made in advance of appropriations therefor, and 
appropriations for making payments under such contracts are hereby 
authorized. 
942 
PUBLIC LAW 93-225-DEC. 29, 1973 
[87 STAT. 
NO IMPAIRMENT 
SEC. 17. Nothing in this Act shall be construed as impairing any 
authority or responsibility of the President or the Secretary of the 
Treasury under any other provision of law, nor shall anything in this 
Act affect in any manner any provision of law concerning the right 
of any Federal agency to sell obligations to the Secretary of the Treas-
ury or the authority or responsibility of the Secretary of the Treasury 
to purchase such obligations. 
PROGRAM LIMITATION 
SEC. 18. Nothing in this Act shall be construed as authorizing an 
increase in the amounts of obligations issued, sold, or guaranteed by 
any Federal agency which issues, sells, or guarantees obligations 
purchased by the Bank. 
SEPARABILITY 
( > 
SEC. 19. If any provision of this Act, or the application thereof to 
' ' "'' 
any person or circumstance, is held invalid, the validity of the 
remainder of the Act, and the application of such provisions to other 
persons or circumstances, shall not be affected. 
EFFECTIVE DATE 
SEC. 20. This Act becomes effective upon the date of its enactment, 
except that section 7 becomes effective upon the expiration of thirty 
days after such date. 
Approved December 29, 1973. 
: 
: 
, ,. 
Public Law 93-225 
December 29, 1973 
AN A C T 
[H. R. 2303] 
.JQ eontinue mandatory price support for tung nuts only through the 1976 crop. 
Be It enacted hy the Senate and House of Representatives 
of the 
Mandatory "price United Sttttes of America in Congress asse?nhled, That section 201 (b) 
support. 
of the Agricultural Act of 1949, as amended, is amended to read as 
72"ta;!996'!"^ 
folloWS I 
7 use 1446. 
•' (b) The price of honey shall be supported through loans, purchases, 
or other operations at a level not in excess of 90 per centum nor less 
than 60 per centum of the parity price thereof; and the price of tung 
nuts for each crop of tung nuts through the 1976 crop shall be sup-
ported through loans, purchases, or other operations at a level not in 
excess of 90 per centum nor less than 60 per centum of the parity price 
therefor: Provided, That in any crop year through the 1976 crop year 
in which the Secretary determines that the domestic production of 
tung oil will be less than the anticipated domestic demand for such oil, 
the price of tun^ nuts shall be supported at not less than 65 per centum 
of the paritj' price therefor." 
Approved December 29, 1973.