Sec. 413. Funding

516 words·~2 min read·/bill/117/hr/4497/ih/section-413

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There is appropriated, out of any money in the Treasury not otherwise appropriated, to the Governing Board $27,000,000,000 for the initial establishment of the NIA and NIB and to carry out this title, such sums to remain available until expended. The Board of Governors of the Federal Reserve System may purchase NIA bonds and other debt instruments, both directly from the NIA or NIA Operating Subsidiary and in secondary markets. The total value of NIA bonds and other debt instruments held by the Board of Governors of the Federal Reserve System at any one time may not exceed 25 percent of the total assets held by the Board of Governors of the Federal Reserve System (excluding any amounts outstanding under paragraph (2)) and the Federal reserve banks.

For purposes of the preceding sentence, the total asset amount shall be calculated as the average total assets over the preceding 6-month period. At the request of the head of an NIA Operating Subsidiary, for purposes of providing short-term liquidity support, the Board of Governors of the Federal Reserve System shall lend funds to such NIA Operating Subsidiary— at preferential rates; and on a collateralized or uncollateralized basis. The total value of outstanding loans provided by the Board of Governors of the Federal Reserve System under this paragraph may not exceed 25 percent of the total assets held by the Board of Governors of the Federal Reserve System and the Federal reserve banks.

For purposes of the preceding sentence, the total asset amount shall be calculated as the average total assets over the preceding 6-month period. At the request of the Chair or Vice-Chair of the Governing Board, the Secretary of the Treasury shall lend funds to one or more NIA Operating Subsidiary designated in such request, at cost. The request submitted under this provision shall be accompanied by a written attestation by the head of the relevant NIA Operating Subsidiary that such Operating Subsidiary is unable to access the liquidity support from the Board of Governors of the Federal Reserve System authorized under subsection (b).

The aggregate amount of all loans authorized under paragraph

(1)at one time may not exceed an amount equal to 100 percent of the NIA’s total assets. For purposes of the preceding sentence, the total asset amount shall be calculated as the average total assets over the preceding 6-month period. The NIA or NIA Operating Subsidiaries may issue bonds and other debt instruments, or NIA Bonds , on terms determined by the Governing Board or the issuing NIA Operating Subsidiary, as applicable, in accordance with the requirements of this title. NIA Bonds and other instruments issued by NIA Operating Subsidiaries shall be exempt from the requirements of section 5 of the Securities Act of 1933. NIA Bonds and other instruments issued by NIA Operating Subsidiaries shall not be backed by the full faith and credit of the United States. The NIA and NIA Operating Subsidiaries shall retain all proceeds from financing, investments, and other financial assistance made under this title and may, without further appropriation, use such amounts to carry out this title.