12 U.S.C. § 355 | Purchase and sale of obligations of National, State, and municipal governments; open market operations; purchases and sales from or to United States; maximum aggregate amount of obligations acquired directly from or loaned directly to United States

Every Federal Reserve bank shall have power:

(1)

1 See References in Text note below.

To buy and sell, at home or abroad, bonds and notes of the United States, bonds issued under the provisions of subsection (c) of section 1463  of this title and having maturities from date of purchase of not exceeding six months, and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding six months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drainage and reclamation districts, and obligations of, or fully guaranteed as to principal and interest by, a foreign government or agency thereof, such purchases to be made in accordance with rules and regulations prescribed by the Board of Governors of the Federal Reserve System. Notwithstanding any other provision of this chapter, any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.

(2)

To buy and sell in the open market, under the direction and regulations of the Federal Open Market Committee, any obligation which is a direct obligation of, or fully guaranteed as to principal and interest by, any agency of the United States.

Dec. 23, 1913, ch. 6, § 14(b) 38 Stat. 264 Jan. 31, 1934, ch. 7, § 16(b) 48 Stat. 348 Apr. 27, 1934, ch. 168, § 7(b) 48 Stat. 646 Aug. 23, 1935, ch. 614 49 Stat. 704 Mar. 27, 1942, ch. 199 56 Stat. 180 Apr. 28, 1947, ch. 44 61 Stat. 56 June 30, 1950, ch. 425 64 Stat. 307 June 23, 1952, ch. 454 66 Stat. 154 June 29, 1954, ch. 422 68 Stat. 329 June 25, 1956, ch. 447 70 Stat. 339 Pub. L. 85–476June 30, 195872 Stat. 261 Pub. L. 86–567July 1, 196074 Stat. 295 Pub. L. 87–353, § 3(d)Oct. 4, 196175 Stat. 773 Pub. L. 87–506June 28, 196276 Stat. 112 Pub. L. 88–344June 30, 196478 Stat. 235 Pub. L. 89–484June 30, 196680 Stat. 235 Pub. L. 89–597, § 6Sept. 21, 196680 Stat. 825 Pub. L. 90–300May 4, 196882 Stat. 113 Pub. L. 91–360July 31, 197084 Stat. 668 Pub. L. 92–45July 2, 197185 Stat. 100 Pub. L. 93–93Aug. 14, 197387 Stat. 314 Pub. L. 93–495, title I, § 109Oct. 28, 197488 Stat. 1505 Pub. L. 94–125Nov. 12, 197589 Stat. 678 Pub. L. 95–22, title II, § 201Apr. 19, 197791 Stat. 49 Pub. L. 95–128, title II, § 209Oct. 12, 197791 Stat. 1131 Pub. L. 95–154Nov. 7, 197791 Stat. 1256 Pub. L. 95–534Oct. 27, 197892 Stat. 2032 Pub. L. 96–18June 8, 197993 Stat. 35 Pub. L. 96–221, title I, § 105(b)(2)Mar. 31, 198094 Stat. 140 (, ; , ; , ; , title II, §§ 203(a), 206(a), , 706; , title IV, § 401, ; , ; , ; , ; , ; , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , §§ 1, 3, , , 36; , , .)

Editorial Notes

References in Text

Section 1463 of this title Pub. L. 89–554, § 8(a)Sept. 6, 196680 Stat. 648 , referred to in par. (1), was repealed by , , .

act Dec. 23, 1913, ch. 6 38 Stat. 251 section 226 of this titleThis chapter, referred to in par. (1), was in the original “this Act”, meaning , , known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under and Tables.

Codification

Dec. 23, 1913section 353 of this titleSection is comprised of subsec. (b) of section 14 of act . For classification to this title of remainder of section 14, see Codification note set out under .

Amendments

Pub. L. 96–2211980—Par. (1). inserted provisions relating to obligations of a foreign government or agency thereof.

Pub. L. 96–18, § 1(a)May 1, 1979Apr. 30, 19791979—Par. (1). , struck out proviso under which Federal Reserve banks had been allowed, until , to buy and sell either in the open market or directly from or to the United States bonds, notes, or other obligations which were direct obligations of the United States or which were fully guaranteed by the United States and, after , had allowed such obligations to be purchased but only in the open market.

Pub. L. 96–18, § 3(b), inserted provision that notwithstanding any other provision of this chapter, any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.

Pub. L. 96–18Par. (2). , §§ 1(b), 3(a), temporarily substituted “the United States or any agency of the United States, and to lend, under the direction and regulations of the Federal Open Market Committee, any such obligation to the Secretary of the Treasury” for “any agency of the United States”. See Effective and Termination Dates of 1979 Amendment note set out below.

Pub. L. 96–18Pars. (3), (4). , §§ 1(c), 3(a), temporarily added pars. (3) and (4). See Effective and Termination Dates of 1979 Amendment note set out below.

Pub. L. 95–534May 1, 1979May 1, 1978April 30, 1979April 30, 19781978—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 95–154May 1, 1978October 1, 1977April 30, 1978September 30, 19771977—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 95–128October 1, 1977November 1, 1978September 30, 1977October 31, 1978 substituted “” for “” and “” for “”.

Pub. L. 95–22November 1, 1978November 1, 1976October 31, 1978October 31, 1976 substituted “” for “” and “” for “”.

Pub. L. 94–125November 1, 1976November 1, 1975October 31, 1976October 31, 19751975—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 93–495November 1, 1975November 1, 1973October 31, 1975October 31, 19731974—Par. (1). substituted “ for “” and “” for “”.

Pub. L. 93–93November 1, 1973July 1, 1973October 31, 1973June 30, 19731973—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 92–45July 1, 1973July 1, 1971June 30, 1973June 30, 19711971—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 91–360July 1, 1971July 1, 1970June 30, 1971June 30, 19701970—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 90–300July 1, 1970July 1, 1968June 30, 1970June 30, 19681968—Par. (1). substituted “” for “” and “” for “”.

Pub. L. 89–5971966— designated existing provisions as par. (1) and added par. (2).

Pub. L. 89–484July 1, 1968July 1, 1966June 30, 1968June 30, 1966 substituted “” for “” and “” for “”.

Pub. L. 88–344July 1, 1966July 1, 1964June 30, 1966June 30, 19641964— substituted “” for “”, and “” for “”.

Pub. L. 87–506July 1, 1964July 1, 1962June 30, 1964June 30, 19621962— substituted “” for “” and “” for “.”

Pub. L. 87–3531961— struck out provision authorizing every Federal reserve bank to buy and sell, at home or abroad, bonds of the Federal Farm Mortgage Corporation having maturities from date of purchase of not exceeding six months.

Pub. L. 86–567July 1, 1962July 1, 1960June 30, 1962June 30, 19601960— substituted “” for “” and “” for “”.

Pub. L. 85–476July 1, 1960July 1, 1958June 30, 1960June 30, 19581958— substituted “” for “” and “” for “”.

June 25, 1956July 1, 1958July 1, 1956June 30, 1958June 30, 19581956—Act , substituted “” for “” and “” for “”.

June 29, 1954July 1, 1956July 1, 1954June 30, 1956June 30, 19541954—Act , substituted “” for “” and “” for “”.

June 23, 1952July 1, 1954July 1, 1952June 30, 1954June 30, 19521952—Act , substituted “” for “” and “” for “”.

June 30, 1950July 1, 1952July 1, 1950June 30, 1952June 30, 19501950—Act , substituted “” for “” and “” for “”.

Apr. 28, 1947June 30, 19501947—Act , substituted proviso which allows the Federal Reserve banks to buy and sell either in the open market or directly from or to the United States any bonds, notes, or other obligations which are direct obligations of the United States or are fully guaranteed by the United States but limits the aggregate amount to be held at any one time to $5,000,000,000, and after allows such obligation to be purchased, but only in the open market for former proviso.

Mar. 27, 19421942—Act , amended proviso generally.

Aug. 23, 19351935—Act , § 206(a), inserted proviso.

Apr. 27, 1934section 1463 of this title1934—Act , authorized purchase and sale of bonds issued under subsec. (c) of [former] .

Jan. 31, 1934Act , authorized purchase and sale of bonds of Federal Farm Mortgage Corporation.

Statutory Notes and Related Subsidiaries

Change of Name

Aug. 23, 1935Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.

Effective Date and Applicability of 1980 Amendment

Pub. L. 96–221Mar. 31, 1980section 108 of Pub. L. 96–221 section 248 of this titleAmendment by effective on first day of sixth month which begins after , see , set out as an Effective Date of 1980 Amendment note under .

Pub. L. 96–221, title I, § 105(b)(2)Mar. 31, 198094 Stat. 140 section 105(b)(2) of Pub. L. 96–221 12 U.S.C. 355(1)March 31, 1980June 1, 1981, , , provided that the amendment made by is applicable to as such section is in effect on the first day of the sixth month which begins after , and as it will be in effect on .

Effective and Termination Dates of 1979 Amendment

Pub. L. 96–18, § 3(a)June 8, 197993 Stat. 36

June 8, 1979section 359a of this titleJune 8, 1979section 359a of this title“Except for the amendments made by subsection (a) of the first section of this Act [amending par. (1) of this section], and except for the amendment made by subsection (b) of this section [amending par. (1) of this section effective upon the expiration of the two-year period beginning on ], the amendments made by this Act [enacting and pars. (3) and (4) of this section and amending par. (2) of this section] shall be effective only during the two-year period which begins on the date of enactment of this Act []. Upon the expiration of such period, each provision of law amended by this Act [enacting and amending this section], except section 14(b)(1) of the Federal Reserve Act [par. (1) of this section], is amended to read as it did immediately prior to the enactment of this Act.”

, , , provided that:

Pub. L. 96–18, § 3(b)June 8, 197993 Stat. 36 June 8, 1979, , , provided that the amendment made by that section is effective “Upon the expiration of the 2-year period which begins on the date of enactment of this Act []”.

Expiration of 1942 Amendment

Mar. 27, 1942“ProvidedAmendment of the proviso of this section by act , remained in force only until the date fixed by section 645 of the former Appendix to Title 50, War and National Defense, after which provisions in force before the amendment again became effective. Before the 1942 amendment, the proviso of this section read: , That any bonds, notes, or other obligations which are direct obligations of the United States or which are fully guaranteed by the United States as to principal and interest may be bought and sold without regard to maturities but only in the open market.”