Collapse to view only § 9108. Obligations
- § 9101. Definitions
- § 9102. Establishing and acquiring corporations
- § 9103. Budgets of wholly owned Government corporations
- § 9104. Congressional action on budgets of wholly owned Government corporations
- § 9105. Audits
- § 9106. Management reports
- § 9107. Accounts
- § 9108. Obligations
- § 9109. Exclusion of a wholly owned Government corporation from this chapter
- § 9110. Standards for depository institutions holding securities of a Government-sponsored corporation for customers
§ 9101. DefinitionsIn this chapter—
(1) “Government corporation” means a mixed-ownership Government corporation and a wholly owned Government corporation.
(2) “mixed-ownership Government corporation” means—
(A) the Central Bank for Cooperatives.
(B) the Federal Deposit Insurance Corporation.
(C) the Federal Home Loan Banks.
(D) the Federal Intermediate Credit Banks.
(E) the Federal Land Banks.
(F) the National Credit Union Administration Central Liquidity Facility.
(G) the Regional Banks for Cooperatives.
(H) the Financing Corporation.
(I) the Resolution Trust Corporation.
(J) the Resolution Funding Corporation.
(3) “wholly owned Government corporation” means—
(A) the Commodity Credit Corporation.
(B) the Community Development Financial Institutions Fund.
(C) the Export-Import Bank of the United States.
(D) the Federal Crop Insurance Corporation.
(E) Federal Prison Industries, Incorporated.
(F) the Corporation for National and Community Service.
(G) the Government National Mortgage Association.
(H) the United States International Development Finance Corporation.
(I) the Pennsylvania Avenue Development Corporation.
(J) the Pension Benefit Guaranty Corporation.
(K) the Great Lakes St. Lawrence Seaway Development Corporation.
(L) the Secretary of Housing and Urban Development when carrying out duties and powers related to the Federal Housing Administration Fund.
(M) the Tennessee Valley Authority.
(N) the Panama Canal Commission.
(O) the Millennium Challenge Corporation.
(P) the International Clean Energy Foundation.
(Pub. L. 97–258, §§ 1, 2(l)(1), Sept. 13, 1982, 96 Stat. 1041, 1062; Pub. L. 97–452, § 1(26), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 100–86, title III, § 303, Aug. 10, 1987, 101 Stat. 597; Pub. L. 101–73, title III, § 307(e), title V, §§ 501(d), 511(b)(1), Aug. 9, 1989, 103 Stat. 353, 394, 406; Pub. L. 102–486, title IX, § 902(b), Oct. 24, 1992, 106 Stat. 2944; Pub. L. 103–82, title II, § 202(e)(1), Sept. 21, 1993, 107 Stat. 888; Pub. L. 103–272, § 4(f)(1)(Z), July 5, 1994, 108 Stat. 1363; Pub. L. 103–325, title I, § 104(e), Sept. 23, 1994, 108 Stat. 2168; Pub. L. 104–106, div. C, title XXXV, § 3530, Feb. 10, 1996, 110 Stat. 642; Pub. L. 104–127, title VII, § 722(b), Apr. 4, 1996, 110 Stat. 1115; Pub. L. 104–134, title III, § 3117(a), Apr. 26, 1996, 110 Stat. 1321–350; Pub. L. 104–287, § 4(2), Oct. 11, 1996, 110 Stat. 3388; Pub. L. 105–134, title IV, § 415(d)(2), Dec. 2, 1997, 111 Stat. 2590; Pub. L. 107–171, title VI, § 6201(d)(6), May 13, 2002, 116 Stat. 419; Pub. L. 108–199, div. D, title VI, § 614(e)(2), Jan. 23, 2004, 118 Stat. 223; Pub. L. 110–140, title IX, § 925(c)(2), Dec. 19, 2007, 121 Stat. 1737; Pub. L. 115–254, div. F, title VI, § 1470(u), Oct. 5, 2018, 132 Stat. 3519; Pub. L. 115–334, title VI, § 6602(b)(19), Dec. 20, 2018, 132 Stat. 4777; Pub. L. 116–260, div. AA, title V, § 512(c)(4), Dec. 27, 2020, 134 Stat. 2756.)
§ 9102. Establishing and acquiring corporations
An agency may establish or acquire a corporation to act as an agency only by or under a law of the United States specifically authorizing the action.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1042.)
§ 9103. Budgets of wholly owned Government corporations
(a) Each wholly owned Government corporation shall prepare and submit each year to the President a business-type budget in a way, and before a date, the President prescribes by regulation for the budget program.
(b) The budget program for each wholly owned Government corporation shall—
(1) contain estimates of the financial condition and operations of the corporation for the current and following fiscal years and the condition and results of operations in the last fiscal year;
(2) contain statements of financial condition, income and expense, and sources and use of money, an analysis of surplus or deficit, and additional statements and information to make known the financial condition and operations of the corporation, including estimates of operations by major activities, administrative expenses, borrowings, the amount of United States Government capital that will be returned to the Treasury during the fiscal year, and appropriations needed to restore capital impairments; and
(3) provide for emergencies and contingencies and otherwise be flexible so that the corporation may carry out its activities.
(c) The President shall submit the budget programs submitted by wholly owned Government corporations (as changed by the President) as part of the budget submitted to Congress under section 1105 of this title. The President thereafter may submit changes in a budget program of a corporation at any time.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1042.)
§ 9104. Congressional action on budgets of wholly owned Government corporations
(a) Congress shall—
(1) consider budget programs for wholly owned Government corporations the President submits;
(2) make necessary appropriations authorized by law;
(3) make corporate financial resources available for operating and administrative expenses; and
(4) provide for repaying capital and the payment of dividends.
(b) This section does not—
(1) prevent a wholly owned Government corporation from carrying out or financing its activities as authorized under another law;
(2) affect section 26 of the Tennessee Valley Authority Act of 1933 (16 U.S.C. 831y); or
(3) affect the authority of a wholly owned Government corporation to make a commitment without fiscal year limitation.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1043.)
§ 9105. Audits
(a)
(1) The financial statements of Government corporations shall be audited by the Inspector General of the corporation appointed under chapter 4 of title 5, or under other Federal law, or by an independent external auditor, as determined by the Inspector General or, if there is no Inspector General, by the head of the corporation.
(2) Audits under this section shall be conducted in accordance with applicable generally accepted government auditing standards.
(3) Upon completion of the audit required by this subsection, the person who audits the statement shall submit a report on the audit to the head of the Government corporation, to the Chairman of the Committee on Government Operations of the House of Representatives, and to the Chairman of the Committee on Governmental Affairs of the Senate.
(4) The Comptroller General of the United States—
(A) may review any audit of a financial statement conducted under this subsection by an Inspector General or an external auditor;
(B) shall report to the Congress, the Director of the Office of Management and Budget, and the head of the Government corporation which prepared the statement, regarding the results of the review and make any recommendation the Comptroller General of the United States considers appropriate; and
(C) may audit a financial statement of a Government corporation at the discretion of the Comptroller General or at the request of a committee of the Congress.
An audit the Comptroller General performs under this paragraph shall be in lieu of the audit otherwise required by paragraph (1) of this subsection. Prior to performing such audit, the Comptroller General shall consult with the Inspector General of the agency which prepared the statement.
(5) A Government corporation shall reimburse the Comptroller General of the United States for the full cost of any audit conducted by the Comptroller General under this subsection, as determined by the Comptroller General. All reimbursements received under this paragraph by the Comptroller General of the United States shall be deposited in the Treasury as miscellaneous receipts.
(b) Upon request of the Comptroller General of the United States, a Government corporation shall provide to the Comptroller General of the United States all books, accounts, financial records, reports, files, workpapers, and property belonging to or in use by the Government corporation and its auditor that the Comptroller General of the United States considers necessary to the performance of any audit or review under this section.
(c) Activities of the Comptroller General of the United States under this section are in lieu of any audit of the financial transactions of a Government corporation that the Comptroller General is required to make under any other law.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1043; Pub. L. 100–86, title IV, § 403, Aug. 10, 1987, 101 Stat. 609; Pub. L. 100–233, title VII, § 703, Jan. 6, 1988, 101 Stat. 1706; Pub. L. 100–399, title VI, § 602, Aug. 17, 1988, 102 Stat. 1006; Pub. L. 101–73, title V, § 511(b)(2), Aug. 9, 1989, 103 Stat. 406; Pub. L. 101–576, title III, § 305, Nov. 15, 1990, 104 Stat. 2853; Pub. L. 103–82, title II, § 202(e)(2), Sept. 21, 1993, 107 Stat. 888; Pub. L. 117–286, § 4(b)(58), Dec. 27, 2022, 136 Stat. 4349.)
§ 9106. Management reports
(a)
(1) A Government corporation shall submit an annual management report to the Congress not later than 180 days after the end of the Government corporation’s fiscal year.
(2) A management report under this subsection shall include—
(A) a statement of financial position;
(B) a statement of operations;
(C) a statement of cash flows;
(D) a reconciliation to the budget report of the Government corporation, if applicable;
(E) a statement on internal accounting and administrative control systems by the head of the management of the corporation, consistent with the requirements for agency statements on internal accounting and administrative control systems under the amendments made by the Federal Managers’ Financial Integrity Act of 1982 (Public Law 97–255);
(F) the report resulting from an audit of the financial statements of the corporation conducted under section 9105 of this title; and
(G) any other comments and information necessary to inform the Congress about the operations and financial condition of the corporation.
(b) A Government corporation shall provide the President, the Director of the Office of Management and Budget, and the Comptroller General of the United States a copy of the management report when it is submitted to Congress.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1044; Pub. L. 101–576, title III, § 306(a), Nov. 15, 1990, 104 Stat. 2854.)
§ 9107. Accounts
(a) With the approval of the Comptroller General, a Government corporation may consolidate its cash into an account if the cash will be expended as provided by law.
(b) The Secretary of the Treasury shall keep the accounts of a Government corporation. If the Secretary approves, a Federal reserve bank or a bank designated as a depositary or fiscal agent of the United States Government may keep the accounts. The Secretary may waive the requirements of this subsection.
(c)
(1) Subsection (b) of this section does not apply to maintaining a temporary account of not more than $50,000 in one bank.
(2) Subsection (b) of this section does not apply to a mixed-ownership Government corporation when the corporation has no capital of the Government.
(3) Subsection (b) of this section does not apply to the Federal Intermediate Credit Banks, the Central Bank for Cooperatives, the Regional Banks for Cooperatives, or the Federal Land Banks. However, the head of each of those banks shall report each year to the Secretary the names of depositaries where accounts are kept. If the Secretary considers it advisable when an annual report is received, the Secretary may make a written report to the corporation, the President, and Congress.
(Pub. L. 97–258, §§ 1, 2(l)(2), Sept. 13, 1982, 96 Stat. 1044, 1062; Pub. L. 97–452, § 1(27), Jan. 12, 1983, 96 Stat. 2478.)
§ 9108. Obligations
(a) Before a Government corporation issues obligations and offers obligations to the public, the Secretary of the Treasury shall prescribe—
(1) the form, denomination, maturity, interest rate, and conditions to which the obligations will be subject;
(2) the way and time the obligations are issued; and
(3) the price for which the obligations will be sold.
(b) A Government corporation may buy or sell a direct obligation of the United States Government, or an obligation on which the principal, interest, or both, is guaranteed, of more than $100,000 only when the Secretary approves the purchase or sale. The Secretary may waive the requirement of this subsection under conditions the Secretary may decide.
(c) The Secretary may designate an officer or employee of an agency to carry out this section if the head of the agency agrees.
(d)
(1) This section does not apply to a mixed-ownership Government corporation when the corporation has no capital of the Government.
(2) Subsections (a) and (b) of this section do not apply to the Federal Intermediate Credit Banks, the Central Bank for Cooperatives, the Regional Banks for Cooperatives, and the Federal Land Banks. However, the head of each of those banks shall consult with the Secretary before taking action of the kind described in subsection (a) or (b). If agreement is not reached, the Secretary may make a written report to the corporation, the President, and Congress on the reasons for the Secretary’s disagreement.
(Pub. L. 97–258, §§ 1, 2(l)(2), Sept. 13, 1982, 96 Stat. 1045, 1062; Pub. L. 97–452, § 1(27), Jan. 12, 1983, 96 Stat. 2478; Pub. L. 115–334, title VI, § 6602(b)(20), Dec. 20, 2018, 132 Stat. 4777.)
§ 9109. Exclusion of a wholly owned Government corporation from this chapter
When the President considers it practicable and in the public interest, the President shall include in the budget submitted to Congress under section 1105 of this title a recommendation that a wholly owned Government corporation be deemed to be an agency (except a corporation) under chapter 11 of this title and for fiscal matters. If Congress approves the recommendation, the corporation is deemed to be an agency (except a corporation) under chapter 11 and for fiscal matters for fiscal years beginning after the fiscal year of approval and is not subject to this chapter. The corporate entity is not affected by this section.
(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1045.)
§ 9110. Standards for depository institutions holding securities of a Government-sponsored corporation for customers
(a) The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations that are government securities described in subparagraph (B) or (C) of section 3(a)(42) of the Securities Exchange Act of 1934. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase.
(b) Violation of a regulation prescribed under subsection (a) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes (12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3) 1
1 See References in Text note below.
of the Home Owners’ Loan Act of 1933, section 407(e) or 407(f) 1 of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regulatory agency and with respect to a federally insured credit union by the National Credit Union Administration.(c) Nothing in this section shall be construed to affect in any way the powers of such agencies under any other provision of law.
(d) The Secretary shall, prior to adopting regulations under this section, determine with respect to each appropriate regulatory agency and the National Credit Union Administration Board, whether its rules and standards adequately meet the purposes of regulations to be promulgated under this section, and if the Secretary so determines, shall exempt any depository institution subject to such rules or standards from the regulations promulgated under this section.
(e) As used in this subsection—
(1) “depository institution” has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or branch of a foreign bank, and a commercial lending company owned or controlled by a foreign bank (as such terms are defined in the International Banking Act of 1978).
(2) “government securities broker” has the meaning prescribed in section 3(a)(43) of the Securities Exchange Act of 1934.
(3) “government securities dealer” has the meaning prescribed in section 3(a)(44) of the Securities Exchange Act of 1934.
(4) “appropriate regulatory agency” has the meaning prescribed in section 3(a)(34)(G) of the Securities Exchange Act of 1934.
(Added Pub. L. 99–571, title II, § 201(b)(1), Oct. 28, 1986, 100 Stat. 3223; amended Pub. L. 103–272, § 4(f)(1)(AA), July 5, 1994, 108 Stat. 1363.)