---
kind: "section"
citation: "12 U.S.C. § 1455"
title: "12"
title_heading: "Banks and Banking"
number: "1455"
heading: "Obligations and securities of the Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1455"
units:
  - "Chapter 11A — Federal Home Loan Mortgage Corporation"
---

# §1455. Obligations and securities of the Corporation

- (a) **Authority to issue; terms and conditions; validity—** The [Corporation](/usc/12/1451.md?p=b) is authorized, upon such terms and conditions as it may [prescribe](/usc/12/1451.md?p=f), to borrow, to give [security](/usc/12/1451.md?p=j), to pay interest or other return, and to issue notes, debentures, bonds, or other obligations, or other [securities](/usc/12/1451.md?p=j), including without limitation [mortgage](/usc/12/1451.md?p=d)-backed [securities](/usc/12/1451.md?p=j) guaranteed by the Government National [Mortgage](/usc/12/1451.md?p=d) Association in the manner provided in [section 1721(g) of this title](/usc/12/1721.md?p=g). Any obligation or [security](/usc/12/1451.md?p=j) of the [Corporation](/usc/12/1451.md?p=b) shall be valid and binding notwithstanding that a [person](/usc/12/5481.md?p=19) or [persons](/usc/12/5481.md?p=19) purporting to have executed or attested the same may have died, become under disability, or ceased to hold office or employment before the issuance thereof.
- (b) **Prohibitions and restrictions; creation of liens and charges; rank and priority; causes of action to enforce; jurisdiction; service of process—** The [Corporation](/usc/12/1451.md?p=b) may, by regulation or by writing executed by the [Corporation](/usc/12/1451.md?p=b), establish prohibitions or restrictions upon the creation of indebtedness or obligations of the [Corporation](/usc/12/1451.md?p=b) or of liens or charges upon [property](/usc/12/1451.md?p=g) of the [Corporation](/usc/12/1451.md?p=b), including after-acquired [property](/usc/12/1451.md?p=g), and create liens and charges, which may be floating liens or charges, upon all or any part or parts of the [property](/usc/12/1451.md?p=g) of the [Corporation](/usc/12/1451.md?p=b), including after-acquired [property](/usc/12/1451.md?p=g). Such prohibitions, restrictions, liens, and charges shall have such effect, including without limitation on the generality of the foregoing such rank and priority, as may be provided by regulations of the [Corporation](/usc/12/1451.md?p=b) or by writings executed by the [Corporation](/usc/12/1451.md?p=b), and shall create causes of action which may be enforced by action in the United States District Court for the District of Columbia or in the United States district court for any judicial district in which any of the [property](/usc/12/1451.md?p=g) affected is located. Process in any such action may run to and be served in any judicial district or any place subject to the jurisdiction of the United States.
- (c) **Purchase of obligations; funds, maximum amount of purchases, etc.**
  - (1) The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may purchase any obligations issued under [subsection (a)](#a). For such purpose, the [Secretary](/usc/12/1715z–22a.md?p=4) may use as a public debt transaction the proceeds of the sale of any [securities](/usc/12/1451.md?p=j) issued under [chapter 31](/usc/31/chstIII/ch31.md) of title 31, and the purposes for which [securities](/usc/12/1451.md?p=j) may be issued under such chapter are extended to include such purpose.
  - (2) The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall not at any time purchase any obligations under this subsection if the purchase would increase the aggregate principal amount of the outstanding holdings of obligations under this subsection by the [Secretary](/usc/12/1715z–22a.md?p=4) to an amount greater than $2,250,000,000.
  - (3) Each purchase of obligations by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury under this subsection shall be upon terms and conditions established to yield a rate of return determined by the [Secretary](/usc/12/1715z–22a.md?p=4) to be appropriate, taking into consideration the current average rate on outstanding marketable obligations of the United States as of the last day of the month preceding the making of the purchase.
  - (4) The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may at any time sell, upon terms and conditions and at prices determined by the [Secretary](/usc/12/1715z–22a.md?p=4), any of the obligations acquired by the [Secretary](/usc/12/1715z–22a.md?p=4) under this subsection.
  - (5) All redemptions, purchases and sales by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury of obligations under this subsection shall be treated as public debt transactions of the United States.
- (d) **Validity of provisions; validity of restrictions, prohibitions, liens, or charges—** The provisions of this section and of any restriction, prohibition, lien, or charge referred to in [subsection (b)](#b) shall be fully effective notwithstanding any other law, including without limitation on the generality of the foregoing any law of or relating to sovereign immunity or priority.
- (e) **Authority to purchase, hold, or invest by person, trust, or organization—**
  - (1) Any [person](/usc/12/5481.md?p=19), trust, or [organization](/usc/12/1451.md?p=e) created pursuant to or existing under the laws of the United States or any [State](/usc/12/1451.md?p=k) shall be authorized to purchase, hold, and [invest](/usc/12/1861.md?p=b-6) in [mortgages](/usc/12/1451.md?p=d), obligations, or other [securities](/usc/12/1451.md?p=j) which are or have been sold by the [Corporation](/usc/12/1451.md?p=b) pursuant to this section or pursuant to [section 1454 of this title](/usc/12/1454.md) to the same extent that such [person](/usc/12/5481.md?p=19), trust, or [organization](/usc/12/1451.md?p=e) is authorized under any applicable law to purchase, hold, or [invest](/usc/12/1861.md?p=b-6) in obligations issued by or guaranteed as to principal and interest by the United States or any agency or instrumentality thereof. Where [State](/usc/12/1451.md?p=k) law limits the purchase, holding, or investment in obligations issued by the United States by such a [person](/usc/12/5481.md?p=19), trust, or [organization](/usc/12/1451.md?p=e), such [Corporation](/usc/12/1451.md?p=b) [mortgages](/usc/12/1451.md?p=d), obligations, and other [securities](/usc/12/1451.md?p=j) shall be considered to be obligations issued by the United States for purposes of the limitation.
  - (2) The provisions of [paragraph (1)](#e-1) shall not apply with respect to a particular [person](/usc/12/5481.md?p=19), trust, or [organization](/usc/12/1451.md?p=e) or class thereof in any [State](/usc/12/1451.md?p=k) which, after December 21, 1979, enacts a statute which specifically names the [Corporation](/usc/12/1451.md?p=b) and either prohibits or provides for a more limited authority to purchase, hold, or [invest](/usc/12/1861.md?p=b-6) in such [securities](/usc/12/1451.md?p=j) by such [person](/usc/12/5481.md?p=19), trust, or [organization](/usc/12/1451.md?p=e) or class thereof than is provided in [paragraph (1)](#e-1). The enactment by any [State](/usc/12/1451.md?p=k) of any statute of the type described in the preceding sentence shall not affect the validity of any contractual commitment to purchase, hold, or [invest](/usc/12/1861.md?p=b-6) which was made prior thereto.
  - (3) Any authority granted by [paragraph (1)](#e-1) and not granted by any other Federal statute shall expire as of the end of June 30, 1985. Such expiration shall not affect the validity of any contractual commitment to purchase, hold, or [invest](/usc/12/1861.md?p=b-6) which was made prior thereto pursuant to [paragraph (1)](#e-1), and shall not affect the validity of any contractual commitment or other action to purchase, hold, or [invest](/usc/12/1861.md?p=b-6) pursuant to any other authorization.
- (f) **Preferred stock—** The [Corporation](/usc/12/1451.md?p=b) may have preferred stock on such terms and conditions as the [Board of Directors](/usc/12/1451.md?p=a) shall [prescribe](/usc/12/1451.md?p=f). Any preferred stock shall not be entitled to vote with respect to the election of any member of the [Board of Directors](/usc/12/1451.md?p=a).
- (g) **Securities exempt from regulation—** All [securities](/usc/12/1451.md?p=j) issued or guaranteed by the [Corporation](/usc/12/1451.md?p=b) (other than [securities](/usc/12/1451.md?p=j) guaranteed by the [Corporation](/usc/12/1451.md?p=b) that are backed by [mortgages](/usc/12/1451.md?p=d) not purchased by the [Corporation](/usc/12/1451.md?p=b)) shall, to the same extent as [securities](/usc/12/1451.md?p=j) that are direct obligations of or obligations guaranteed as to principal or interest by the United States, be deemed to be exempt [securities](/usc/12/1451.md?p=j) within the meaning of the laws administered by the [Securities](/usc/12/1451.md?p=j) and Exchange Commission.
- (h) **Securities backed by mortgages not purchased by Corporation—**
  - (1) The [Corporation](/usc/12/1451.md?p=b) may not guarantee [mortgage](/usc/12/1451.md?p=d)-backed [securities](/usc/12/1451.md?p=j) or [mortgage](/usc/12/1451.md?p=d) related payment [securities](/usc/12/1451.md?p=j) backed by [mortgages](/usc/12/1451.md?p=d) not purchased by the [Corporation](/usc/12/1451.md?p=b).
  - (2) The [Corporation](/usc/12/1451.md?p=b) shall insert appropriate language in all of the obligations and [securities](/usc/12/1451.md?p=j) of the [Corporation](/usc/12/1451.md?p=b) issued under this section and [section 1454 of this title](/usc/12/1454.md) clearly indicating that such obligations and [securities](/usc/12/1451.md?p=j), together with the interest thereon, are not guaranteed by the United States and do not constitute a debt or obligation of the United States or any agency or instrumentality thereof other than the [Corporation](/usc/12/1451.md?p=b).
- (i) **Prohibition on assessment or collection of fee or charge by United States—** Except for fees paid pursuant to [sections 1452(c)](/usc/12/1452.md?p=c)[^1] and [1455(c)](#c) of this title and assessments pursuant to [section 4516 of this title](/usc/12/4516.md), no fee or charge may be assessed or collected by the United States (including any executive department, agency, or independent establishment of the United States) on or with regard to the purchase, acquisition, sale, pledge, issuance, guarantee, or redemption of any [mortgage](/usc/12/1451.md?p=d), asset, obligation, or other [security](/usc/12/1451.md?p=j) by the [Corporation](/usc/12/1451.md?p=b). No provision of this subsection shall affect the purchase of any obligation by any Federal home loan bank pursuant to [section 1452(a) of this title](/usc/12/1452.md?p=a).
- (j) **Notes, debentures, or substantially identical types of unsecured obligations; issuance, maturities, interest rates, etc.**
  - (1) Any notes, debentures, or substantially identical types of unsecured obligations of the [Corporation](/usc/12/1451.md?p=b) evidencing money borrowed, whether general or subordinated, shall be issued upon the approval of the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury and shall have such maturities and bear such rate or rates of interest as may be determined by the [Corporation](/usc/12/1451.md?p=b) with the approval of the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury.
  - (2) Any notes, debentures, or substantially identical types of unsecured obligations of the [Corporation](/usc/12/1451.md?p=b) having maturities of 1 year or less that the [Corporation](/usc/12/1451.md?p=b) has issued or is issuing as of August 9, 1989, shall be deemed to have been approved by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury as required by this subsection. Such deemed approval shall expire 365 days after August 9, 1989.
  - (3) Any notes, debentures, or substantially identical types of unsecured obligations of the [Corporation](/usc/12/1451.md?p=b) having maturities of more than 1 year that the [Corporation](/usc/12/1451.md?p=b) has issued or is issuing as of August 9, 1989, shall be deemed to have been approved by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury as required by this subsection. Such deemed approval shall expire 60 days after August 9, 1989.
- (k) **Securities in form of debt obligations or trust certificates of beneficial interest; issuance, maturities, interest rates, etc.**
  - (1) Any [securities](/usc/12/1451.md?p=j) in the form of debt obligations or trust certificates of beneficial interest, or both, and based upon [mortgages](/usc/12/1451.md?p=d) held and set aside by the [Corporation](/usc/12/1451.md?p=b), shall be issued upon the approval of the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury and shall have such maturities and shall bear such rate or rates of interest as may be determined by the [Corporation](/usc/12/1451.md?p=b) with the approval of the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury.
  - (2) Any [securities](/usc/12/1451.md?p=j) in the form of debt obligations or trust certificates of beneficial interest, or both, and based upon [mortgages](/usc/12/1451.md?p=d) held and set aside by the [Corporation](/usc/12/1451.md?p=b), that the [Corporation](/usc/12/1451.md?p=b) has issued or is issuing as of August 9, 1989, shall be deemed to have been approved by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury as required by this subsection.
- (l) **Temporary authority of Treasury to purchase obligations and securities; conditions—**
  - (1) **Authority to purchase—**
    - (A) **General authority—** In addition to the authority under [subsection (c)](#c) of this section, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury is authorized to purchase any obligations and other [securities](/usc/12/1451.md?p=j) issued by the [Corporation](/usc/12/1451.md?p=b) under any section of this chapter, on such terms and conditions as the [Secretary](/usc/12/1715z–22a.md?p=4) may determine and in such amounts as the [Secretary](/usc/12/1715z–22a.md?p=4) may determine. Nothing in this subsection requires the [Corporation](/usc/12/1451.md?p=b) to issue obligations or [securities](/usc/12/1451.md?p=j) to the [Secretary](/usc/12/1715z–22a.md?p=4) without mutual agreement between the [Secretary](/usc/12/1715z–22a.md?p=4) and the [Corporation](/usc/12/1451.md?p=b). Nothing in this subsection permits or authorizes the [Secretary](/usc/12/1715z–22a.md?p=4), without the agreement of the [Corporation](/usc/12/1451.md?p=b), to engage in open market purchases of the common [securities](/usc/12/1451.md?p=j) of the [Corporation](/usc/12/1451.md?p=b).
    - (B) **Emergency determination required—** In connection with any use of this authority, the [Secretary](/usc/12/1715z–22a.md?p=4) must determine that such actions are necessary to—
      - (i) provide stability to the financial markets;
      - (ii) prevent disruptions in the availability of [mortgage](/usc/12/1451.md?p=d) finance; and
      - (iii) protect the taxpayer.
    - (C) **Considerations—** To protect the taxpayers, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall take into consideration the following in connection with exercising the authority contained in this paragraph:
      - (i) The need for preferences or priorities regarding payments to the Government.
      - (ii) Limits on maturity or disposition of obligations or [securities](/usc/12/1451.md?p=j) to be purchased.
      - (iii) The [Corporation](/usc/12/1451.md?p=b)’s plan for the orderly resumption of private market funding or capital market access.
      - (iv) The probability of the [Corporation](/usc/12/1451.md?p=b) fulfilling the terms of any such obligation or other [security](/usc/12/1451.md?p=j), including repayment.
      - (v) The need to maintain the [Corporation](/usc/12/1451.md?p=b)’s status as a private shareholder-owned company.
      - (vi) Restrictions on the use of [Corporation](/usc/12/1451.md?p=b) resources, including limitations on the payment of dividends and executive compensation and any such other terms and conditions as appropriate for those purposes.
    - (D) **Reports to Congress—** Upon exercise of this authority, the [Secretary](/usc/12/1715z–22a.md?p=4) shall report to the Committees on the Budget, Financial Services, and Ways and Means of the House of Representatives and the Committees on the Budget, Finance, and Banking, Housing, and Urban Affairs of the Senate as to the necessity for the purchase and the determinations made by the [Secretary](/usc/12/1715z–22a.md?p=4) under [subparagraph (B)](#l-1-B) and with respect to the considerations required under [subparagraph (C)](#l-1-C), and the size, terms, and probability of repayment or fulfillment of other terms of such purchase.
  - (2) **Rights; sale of obligations and securities—**
    - (A) **Exercise of rights—** The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may, at any time, exercise any rights received in connection with such purchases.
    - (B) **Sale of obligation and securities—** The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may, at any time, subject to the terms of the [security](/usc/12/1451.md?p=j) or otherwise upon terms and conditions and at prices determined by the [Secretary](/usc/12/1715z–22a.md?p=4), sell any obligation or [security](/usc/12/1451.md?p=j) acquired by the [Secretary](/usc/12/1715z–22a.md?p=4) under this subsection.
    - (C) **Deficit reduction—** The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall deposit in the General Fund of the Treasury any amounts received by the [Secretary](/usc/12/1715z–22a.md?p=4) from the sale of any obligation acquired by the [Secretary](/usc/12/1715z–22a.md?p=4) under this subsection, where such amounts shall be—
      - (i) dedicated for the sole purpose of deficit reduction; and
      - (ii) prohibited from use as an offset for other spending increases or revenue reductions.
    - (D) **Application of sunset to purchased obligations or securities—** The authority of the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury to hold, exercise any rights received in connection with, or sell, any obligations or [securities](/usc/12/1451.md?p=j) purchased is not subject to the provisions of [paragraph (4)](#l-4).
  - (3) **Funding—** For the purpose of the authorities granted in this subsection, the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may use the proceeds of the sale of any [securities](/usc/12/1451.md?p=j) issued under [chapter 31](/usc/31/chstIII/ch31.md) of Title 31, and the purposes for which [securities](/usc/12/1451.md?p=j) may be issued under [chapter 31](/usc/31/chstIII/ch31.md) of Title 31 are extended to include such purchases and the exercise of any rights in connection with such purchases. Any funds expended for the purchase of, or modifications to, obligations and [securities](/usc/12/1451.md?p=j), or the exercise of any rights received in connection with such purchases under this subsection shall be deemed appropriated at the time of such purchase, modification, or exercise.
  - (4) **Termination of authority—** The authority under this [subsection (l)](#l), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009.
  - (5) **Authority of the Director with respect to executive compensation—** The [Director](/usc/12/5481.md?p=10) shall have the power to approve, disapprove, or modify the executive compensation of the [Corporation](/usc/12/1451.md?p=b), as defined under Regulation S-K, 17 C.F.R. 229.

## Footnotes

[^1]: See References in Text note below.

## Source credit

(Pub. L. 91–351, title III, § 306, July 24, 1970, 84 Stat. 455; Pub. L. 96–153, title III, § 316(a), Dec. 21, 1979, 93 Stat. 1118; Pub. L. 97–289, § 6, Oct. 6, 1982, 96 Stat. 1232; Pub. L. 98–35, § 5, May 26, 1983, 97 Stat. 198; Pub. L. 98–440, title II, §§ 210, 211, Oct. 3, 1984, 98 Stat. 1697; Pub. L. 100–242, title IV, § 441(b), Feb. 5, 1988, 101 Stat. 1921; Pub. L. 101–73, title VII, § 731(g)–(i), Aug. 9, 1989, 103 Stat. 434; Pub. L. 102–550, title XIII, § 1382(n), Oct. 28, 1992, 106 Stat. 4005; Pub. L. 110–289, div. A, title I, §§ 1117(b), 1161(c)(2), July 30, 2008, 122 Stat. 2684, 2780; Pub. L. 111–203, title XIII, § 1304(b), July 21, 2010, 124 Stat. 2134.)

## Notes

### Editorial Notes

### References in Text

Section 1452(c) of this title, referred to in subsec. (i), was redesignated section 1452(d) of this title by Pub. L. 101–73, title VII, § 731(c)(1), Aug. 9, 1989, 103 Stat. 431.

This chapter, referred to in subsec. (l)(1)(A), was in the original “this Act” and has been translated as reading “this title”, meaning title III of Pub. L. 91–351, to reflect the probable intent of Congress.

### Amendments

2010—Subsec. (l)(2)(C), (D). Pub. L. 111–203 added subpar. (C) and redesignated former subpar. (C) as (D).

2008—Subsec. (c)(2). Pub. L. 110–289, § 1161(c)(2)(A), inserted “the” after “Secretary of”.

Subsec. (i). Pub. L. 110–289, § 1161(c)(2)(B)(ii), made technical amendment to reference in original act which appears in text as reference to section 4516 of this title.

Pub. L. 110–289, § 1161(c)(2)(B)(i), made technical amendment to reference in original act which appears in text as reference to section 1455(c) of this title. Amendment was given effect, notwithstanding error in directory language which directed substitution of “section 306(c)” for “section 1316(c)” in the original.

Subsec. (j)(2). Pub. L. 110–289, § 1161(c)(2)(C), substituted “or substantially” for “of substantially”.

Subsec. (l). Pub. L. 110–289, § 1117(b), added subsec. (l).

1992—Subsec. (h). Pub. L. 102–550, § 1382(n)(1), designated existing provisions as par. (1) and added par. (2).

Subsec. (i). Pub. L. 102–550, § 1382(n)(2), substituted “sections 1452(c) and 1455(c) of this title and assessments pursuant to section 4516 of this title” for “section 1452(c) or 1455(c) of this title”.

1989—Subsec. (c). Pub. L. 101–73, § 731(g), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The Federal home loan banks shall, to such extent as the Board of Directors may prescribe, guarantee the faithful and timely performance by the Corporation of any obligation or undertaking of the Corporation on or with respect to any security (which term as used in this sentence shall not include the capital stock referred to in section 1453 of this title).”

Subsec. (f). Pub. L. 101–73, § 731(h), amended subsec. (f) generally. Prior to amendment, subsec. (f) read as follows: “The Corporation may have preferred stock on such terms and conditions as the Board of Directors shall prescribe. Any preferred stock shall not affect the status of the capital stock issued under section 1453 of this title as nonvoting common stock, and shall not be entitled to vote with respect to the election of any member of the Board of Directors. Such preferred stock, or any class thereof, may have such terms as would be required for listing of preferred stock on the New York Stock Exchange, except that this sentence does not apply to any preferred stock, or class thereof, the initial sale of which is made directly or indirectly by the Corporation exclusively to any Federal Home Loan Bank or Banks.”

Subsecs. (j), (k). Pub. L. 101–73, § 731(i), added subsecs. (j) and (k).

1988—Subsec. (i). Pub. L. 100–242 added subsec. (i).

1984—Subsec. (f). Pub. L. 98–440, § 211, inserted provisions that preferred stock shall not be entitled to vote with respect to the election of any member of the Board of Directors and that such preferred stock, or any class thereof, may have such terms as would be required for listing of preferred stock on the New York Stock Exchange, except for any preferred stock, or class thereof, the initial sale of which is made directly or indirectly by the Corporation exclusively to any Federal Home Loan Bank or Banks.

Subsec. (h). Pub. L. 98–440, § 210, added subsec. (h).

1983—Subsec. (g). Pub. L. 98–35 added subsec. (g).

1982—Subsec. (f). Pub. L. 97–289 added subsec. (f).

1979—Subsec. (e). Pub. L. 96–153 added subsec. (e).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

### Repayment of Fees

Pub. L. 111–203, title XIII, § 1304(d), July 21, 2010, 124 Stat. 2134, provided that: “Any periodic commitment fee or any other fee or assessment paid by the Federal National Mortgage Association or Federal Home Loan Mortgage Corporation to the Secretary of the Treasury as a result of any preferred stock purchase agreement, mortgage-backed security purchase program, or any other program or activity authorized or carried out pursuant to the authorities granted to the Secretary of the Treasury under section 1117 of the Housing and Economic Recovery Act of 2008 (Public Law 110–289; 122 Stat. 2683) [amending this section and sections 1431 and 1719 of this title], including any fee agreed to by contract between the Secretary and the Association or Corporation, shall be deposited in the General Fund of the Treasury where such amounts shall be— dedicated for the sole purpose of deficit reduction; and prohibited from use as an offset for other spending increases or revenue reductions.”

[For definitions of terms used in section 1304(d) of Pub. L. 111–203, set out above, see section 5301 of this title.]