Sec. 2. Independence from credit policy
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/bill/116/hr/8984/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 1 year after the date of the enactment of this Act— the Board of Governors of the Federal Reserve System shall transfer to the Department of the Treasury all covered assets that are neither gold stock, Treasury currency, nor direct obligations of the United States, foreign central banks, or the International Monetary Fund; and the Secretary of the Treasury shall transfer to the Federal reserve banks direct obligations of the United States of equivalent market value to such covered assets.
In this subsection, the term covered assets means all assets— purchased through open-market operations by the Federal reserve banks; or acquired through transactions under the following sections of the Federal Reserve Act ( 12 U.S.C. 221 et seq.): Section 10A before the date of the enactment of this Act. Section 10B. Section 13. Section 13A. Section 24. Section 14(b) of the Federal Reserve Act ( 12 U.S.C. 355 ) (relating to Purchase and sale of obligations of United States, States, counties, etc. ) is amended to read as follows:
To buy and sell in the open market, at home or abroad, under the direction and regulations of the Federal Open Market Committee, gold stock, Treasury currency, or direct obligations of the United States, foreign central banks, or the International Monetary Fund. Nothing in this subsection shall be construed to limit advances under section 10B, or discount loans under sections 13, 13A, or 24. . Section 13(3) of the Federal Reserve Act ( 12 U.S.C. 343(3) ) is amended by inserting after subparagraph
(E)following new subparagraph: Not later than 1 year after a Federal reserve bank acquires any assets under this paragraph that are neither gold nor direct obligations of the United States, foreign central banks, or the International Monetary Fund— the Board shall transfer such assets of the Federal reserve bank to the Department of the Treasury; and the Secretary of the Treasury shall transfer to the Federal reserve banks direct obligations of the United States of equivalent market value to the assets described in clause (i). . Section 10A of the Federal Reserve Act ( 12 U.S.C. 347a ) is repealed. The second undesignated paragraph of subsection
(a)of section 10B of the Federal Reserve Act ( 12 U.S.C. 347b(a) ) is amended— by inserting not before secured by mortgage loans ; and by striking lowest discount rate and inserting highest discount rate .
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U.S. Code
- Definitions§ 221
- 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§ 355
- Discount of obligations arising out of actual commercial transactions§ 343
- Advances to member bank groups; inadequate amounts of eligible and acceptable assets; liability of individual banks in group; distribution of loans among banks of group; rate of interest; notes accepted for advances as collateral security for Federal reserve notes; foreign obligations as security for advances§ 347a
- Advances to individual member banks on time or demand notes; maturities; time notes secured by mortgage loans covering one-to-four family residences§ 347b
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