---
kind: "section"
citation: "12 U.S.C. § 2279aa–13"
title: "12"
title_heading: "Banks and Banking"
number: "2279aa–13"
heading: "Authority to issue obligations to cover guarantee losses of Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/2279aa-13"
units:
  - "Chapter 23 — Farm Credit System"
  - "Subchapter VIII — Agricultural Mortgage Secondary Market"
  - "Part A — Establishment and Activities of Federal Agricultural Mortgage Corporation"
---

# §2279aa–13. Authority to issue obligations to cover guarantee losses of Corporation

- (a) **Sale of obligations to Treasury—**
  - (1) **In general—** Subject to the limitations contained in [section 2279aa–10(c) of this title](/usc/12/2279aa–10.md?p=c) and the requirement of [paragraph (2)](#a-2), the [Corporation](/usc/12/2279aa.md?p=4) may issue obligations to the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury the proceeds of which may be used by the [Corporation](/usc/12/2279aa.md?p=4) solely for the purpose of fulfilling the obligations of the [Corporation](/usc/12/2279aa.md?p=4) under any [guarantee](/usc/12/2279aa.md?p=5) provided by the [Corporation](/usc/12/2279aa.md?p=4) under this subchapter.
  - (2) **Certification—** The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may purchase obligations of the [Corporation](/usc/12/2279aa.md?p=4) under [paragraph (1)](#a-1) only if the [Corporation](/usc/12/2279aa.md?p=4) certifies to the [Secretary](/usc/12/1715z–22a.md?p=4) that—
    - (A) the requirements of [section 2279aa–10(c) of this title](/usc/12/2279aa–10.md?p=c) have been fulfilled; and
    - (B) the proceeds of the sale of such obligations are needed to fulfill the obligations of the [Corporation](/usc/12/2279aa.md?p=4) under any [guarantee](/usc/12/2279aa.md?p=5) provided by the [Corporation](/usc/12/2279aa.md?p=4) under this subchapter.
- (b) **Expeditious transaction required—** Not later than 10 business days after receipt by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury of any certification by the [Corporation](/usc/12/2279aa.md?p=4) under [subsection (a)(2)](#a-2), the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall purchase obligations issued by the [Corporation](/usc/12/2279aa.md?p=4) in an amount determined by the [Corporation](/usc/12/2279aa.md?p=4) to be sufficient to meet the [guarantee](/usc/12/2279aa.md?p=5) liabilities of the [Corporation](/usc/12/2279aa.md?p=4).
- (c) **Limitation on amount of outstanding obligations—** The aggregate amount of obligations issued by the [Corporation](/usc/12/2279aa.md?p=4) under [subsection (a)(1)](#a-1) which may be held by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury at any time (as determined by the [Secretary](/usc/12/1715z–22a.md?p=4)) shall not exceed $1,500,000,000.
- (d) **Terms of obligation—**
  - (1) **Interest—** Each obligation purchased by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall bear interest at a rate determined by the [Secretary](/usc/12/1715z–22a.md?p=4), taking into consideration the average rate on outstanding marketable obligations of the United States as of the last day of the last calendar month ending before the date of the purchase of such obligation.
  - (2) **Redemption—** The [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury shall require that such obligations be repurchased by the [Corporation](/usc/12/2279aa.md?p=4) within a reasonable time.
- (e) **Coordination with title 31—**
  - (1) **Authority to use proceeds from sale of Treasury securities—** For the purpose of purchasing obligations of the [Corporation](/usc/12/2279aa.md?p=4), the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury may use as a public debt transaction the proceeds from the sale by the [Secretary](/usc/12/1715z–22a.md?p=4) of any securities issued under [chapter 31](/usc/31/chstIII/ch31.md) of title 31, and the purposes for which securities may be issued under such chapter are extended to include such purchases.
  - (2) **Treatment of transactions—** All purchases and sales by the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury of obligations issued by the [Corporation](/usc/12/2279aa.md?p=4) under this section shall be treated as public debt transactions of the United States.
- (f) **Authorization of appropriations—** There is authorized to be appropriated to the [Secretary](/usc/12/1715z–22a.md?p=4) of the Treasury $1,500,000,000, without fiscal year limitation, to carry out the purposes of this subchapter.

## Source credit

(Pub. L. 92–181, title VIII, § 8.13, as added Pub. L. 100–233, title VII, § 702, Jan. 6, 1988, 101 Stat. 1704; amended Pub. L. 104–105, title I, § 109(b)(2), Feb. 10, 1996, 110 Stat. 165.)

## Notes

### Editorial Notes

### Amendments

1996—Subsec. (a). Pub. L. 104–105 substituted “section” for “sections 2279aa–6(b) and” in pars. (1) and (2)(A).