---
kind: "section"
citation: "12 U.S.C. § 1433"
title: "12"
title_heading: "Banks and Banking"
number: "1433"
heading: "Exemption from taxation; obligations acceptable as credit on debt of home owner"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1433"
units:
  - "Chapter 11 — Federal Home Loan Banks"
---

# §1433. Exemption from taxation; obligations acceptable as credit on debt of home owner


Any and all notes, debentures, bonds, and other such obligations issued by any [bank](/usc/12/1422.md?p=1-A), and consolidated [Federal Home Loan Bank](/usc/12/1422.md?p=1-A) bonds and debentures, shall be exempt both as to principal and interest from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any [State](/usc/12/1422.md?p=2), county, municipality, or local taxing authority. The [bank](/usc/12/1422.md?p=1-A), including its franchise, its capital, reserves, and surplus, its advances, and its income, shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any [State](/usc/12/1422.md?p=2), county, municipality, or local taxing authority; except that in[^1] any real property of the [bank](/usc/12/1422.md?p=1-A) shall be subject to [State](/usc/12/1422.md?p=2), Territorial, county, municipal, or local taxation to the same extent according to its value as other real property is taxed. The notes, debentures, and bonds issued by any [bank](/usc/12/1422.md?p=1-A), with unearned coupons attached, shall be accepted at par by such [bank](/usc/12/1422.md?p=1-A) in payment of or as a [credit](/usc/12/5481.md?p=7) against the obligation of any home-owner debtor of such [bank](/usc/12/1422.md?p=1-A).


## Footnotes

[^1]: So in original. Word “in” probably should not appear.

## Source credit

(July 22, 1932, ch. 522, § 13, 47 Stat. 735; May 28, 1935, ch. 150, § 8, 49 Stat. 295.)

## Notes

### Editorial Notes

### Amendments

1935—Act May 28, 1935, inserted “and consolidated Federal Home Loan Bank bonds and debentures” in first sentence.