12 USC 1824 - Borrowing authority

View all text of Chapter 16 [§ 1811 - § 1835a]

§ 1824. Borrowing authority

(a) Borrowing from Treasury

(1) In general

(2) Funding

(3) Temporary increases authorized

(A) Recommendations for increase

(B) Report required

(b) Borrowing from Federal Financing Bank

(1) In general

No amount may be provided by the Secretary of the Treasury to the Corporation under subsection (a) unless an agreement is in effect between the Secretary and the Corporation which—

(A) provides a schedule for the repayment of the outstanding amount of any borrowing under such subsection; and

(B) demonstrates that income to the Corporation from assessments under this chapter will be sufficient to amortize the outstanding balance within the period established in the repayment schedule and pay the interest accruing on such balance.

(2) Consultation with and report to Congress

The Secretary of the Treasury and the Corporation shall—

(A) consult with the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the terms of any repayment schedule agreement described in paragraph (1) relating to repayment, including terms relating to any emergency special assessment under section 1817(b)(7) of this title; and

(B) submit a copy of each repayment schedule agreement entered into under paragraph (1) to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate before the end of the 30-day period beginning on the date any amount is provided by the Secretary of the Treasury to the Corporation under subsection (a).

(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

(B) Applicability of FDIC borrowing limit

(D) Obligations to be held only by BIF members 1

1 So in original. Probably should be “insured depository institutions”.

(3) Liability of the Deposit Insurance Fund

(4) Terms and conditions

(5) Investment by insured depository institutions

(A) Authority to invest

(B) Investment only from capital and retained earnings

(6) Accounting treatment

(e) Borrowing for the Deposit Insurance Fund from Federal home loan banks

(1) In general

(2) Terms and conditions

Any loan from any Federal home loan bank under paragraph (1) to the Deposit Insurance Fund shall—

(A) bear a rate of interest of not less than the current marginal cost of funds to that bank, taking into account the maturities involved;

(B) be adequately secured, as determined by the Federal Housing Finance Board;

(D) be subject to the limitations of section 1825(c) of this title.

(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.)