United States Code

12 U.S.C. § 1824

Borrowing authority

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Bills that would change it 47

  • HR 6955 Main Street Capital Access Act Amends its part · introduced · 119th Congress
  • HR 6556 Failing Bank Acquisition Fairness Act Amends its part · introduced · 119th Congress
  • HRES 1299 Providing for the concurrence by the House in the Senate amendment to H.R. 6644, with amendment. Amends its part · introduced · 119th Congress
  • HR 7056 Community Bank Regulatory Tailoring Act Amends its part · introduced · 119th Congress
  • HR 7886 Failed Bank Executives Accountability and Consequences Act Amends its part · introduced · 119th Congress
  • HR 654 TABS Act of 2025 Amends its part · introduced · 119th Congress
  • HR 415 End the Threat of Default Act Amends 1824(d)(2) · introduced · 118th Congress
  • S 2190 RECOUP Act of 2023 Amends its part · introduced · 118th Congress
  • HR 7247 Ensuring Diverse Leadership Act of 2024 Amends its part · introduced · 118th Congress
  • HR 4208 Failed Bank Executives Accountability and Consequences Act Amends its part · introduced · 118th Congress
  • HR 3953 Debt Ceiling Reform Act Amends 1824(d)(2)(A) · introduced · 118th Congress
  • S 1882 Debt Ceiling Reform Act Amends 1824(d)(2)(A) · introduced · 118th Congress
  • S 1190 End the Threat of Default Act Amends 1824(d)(2) · introduced · 118th Congress
  • HR 2714 Return to Prudent Banking Act of 2023 Amends its part · introduced · 118th Congress
  • S 1160 Financial Regulators Transparency Act of 2023 Amends its part · introduced · 118th Congress
  • HR 1382 TABS Act of 2023 Amends its part · introduced · 118th Congress
  • HR 9706 Ensuring Diverse Leadership Act of 2022 Amends its part · introduced · 117th Congress
  • HR 7776 James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 Amends its part · enacted · 117th Congress
  • HR 9643 Ensuring Diverse Leadership Act of 2022 Amends its part · introduced · 117th Congress
  • S 5300 Financial Regulators Transparency Act of 2022 Amends its part · introduced · 117th Congress
  • HRES 1512 Providing for the concurrence by the House in the Senate amendment to H.R. 7776, with an amendment. Amends its part · introduced · 117th Congress
  • HR 7900 National Defense Authorization Act for Fiscal Year 2023 Amends its part · introduced · 117th Congress
  • HR 2543 Financial Services Racial Equity, Inclusion, and Economic Justice Act Amends its part · introduced · 117th Congress
  • S 4295 Financial Data Transparency Act of 2022 Amends its part · introduced · 117th Congress
  • S 3654 Debt Ceiling Reform Act Amends 1824(d)(2)(A) · introduced · 117th Congress
  • HR 6724 Debt Ceiling Reform Act Amends 1824(d)(2)(A) · introduced · 117th Congress
  • HR 2989 Financial Transparency Act of 2021 Amends its part · introduced · 117th Congress
  • S 1785 End the Threat of Default Act Amends 1824(d)(2) · introduced · 117th Congress
  • HR 3305 End the Threat of Default Act Amends 1824(d)(2) · introduced · 117th Congress
  • S 1553 End the Threat of Default Act Amends 1824(d)(2) · introduced · 116th Congress
  • HR 4476 Financial Transparency Act of 2019 Amends its part · introduced · 116th Congress
  • HR 281 Ensuring Diverse Leadership Act of 2019 Amends its part · introduced · 116th Congress
  • HR 2870 End the Threat of Default Act Amends 1824(d)(2) · introduced · 116th Congress
  • HR 2176 Return to Prudent Banking Act of 2019 Amends its part · introduced · 116th Congress
  • S 65 Ensuring Diverse Leadership Act of 2019 Amends its part · introduced · 116th Congress
  • S 2155 Economic Growth, Regulatory Relief, and Consumer Protection Act Amends its part · enacted · 115th Congress
  • HR 5785 Jobs and Justice Act of 2018 Amends its part · introduced · 115th Congress
  • S 2829 Ensuring Diverse Leadership Act of 2018 Amends its part · introduced · 115th Congress
  • S 1846 End the Threat of Default Act Amends 1824(d)(2) · introduced · 115th Congress
  • HR 10 Financial CHOICE Act of 2017 Amends its part · introduced · 115th Congress
  • HR 2585 21st Century Glass-Steagall Act of 2017 Amends its part · introduced · 115th Congress
  • S 881 21st Century Glass-Steagall Act of 2017 Amends its part · introduced · 115th Congress
  • HR 1530 Financial Transparency Act of 2017 Amends its part · introduced · 115th Congress
  • HR 790 Return to Prudent Banking Act of 2017 Amends its part · introduced · 115th Congress
  • HR 485 Ensuring Diverse Leadership Act of 2017 Amends its part · introduced · 115th Congress
  • HR 703 To promote bank liquidity and lending through deposit insurance, the HOPE for Homeowners Program, and other enhancements. Amends 1824(a) · introduced · 111th Congress
  • HR 384 TARP Reform and Accountability Act of 2009 Amends 1824(a) · introduced · 111th Congress

The law today

From the official United States Code, current through Public Law 119-121.

(a) Borrowing from Treasury (1) In general The Corporation is authorized to borrow from the Treasury, and the Secretary of the Treasury is authorized and directed to loan to the Corporation on such terms as may be fixed by the Corporation and the Secretary, such funds as in the judgment of the Board of Directors of the Corporation are from time to time required for insurance purposes, not exceeding in the aggregate $100,000,000,000 outstanding at any one time, subject to the approval of the Secretary of the Treasury: Provided, That the rate of interest to be charged in connection with any loan made pursuant to this subsection shall not be less than an amount determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. For such purpose the Secretary of the Treasury is authorized to use as a public-debt transaction the proceeds of the sale of any securities hereafter issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are extended to include such loans. Any such loan shall be used by the Corporation solely in carrying out its functions with respect to such insurance. All loans and repayments under this subsection shall be treated as public-debt transactions of the United States. The Corporation may employ any funds obtained under this section for purposes of the Deposit Insurance Fund and the borrowing shall become a liability of the Deposit Insurance Fund to the extent funds are employed therefor. (2) Funding There are hereby appropriated to the Secretary, for fiscal year 1989 and each fiscal year thereafter, such sums as may be necessary to carry out this subsection. (3) Temporary increases authorized (A) Recommendations for increase During the period beginning on May 20, 2009, and ending on December 31, 2010, if, upon the written recommendation of the Board of Directors (upon a vote of not less than two-thirds of the members of the Board of Directors) and the Board of Governors of the Federal Reserve System (upon a vote of not less than two-thirds of the members of such Board), the Secretary of the Treasury (in consultation with the President) determines that additional amounts above the $100,000,000,000 amount specified in paragraph (1) are necessary, such amount shall be increased to the amount so determined to be necessary, not to exceed $500,000,000,000. (B) Report required If the borrowing authority of the Corporation is increased above $100,000,000,000 pursuant to subparagraph (A), the Corporation shall promptly submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives describing the reasons and need for the additional borrowing authority and its intended uses. (C) Restriction on usage The Corporation may not borrow pursuant to subparagraph (A) to fund obligations of the Corporation incurred as a part of a program established by the Secretary of the Treasury pursuant to the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5201 et seq.] to purchase or guarantee assets. (b) Borrowing from Federal Financing Bank The Corporation is authorized to issue and sell the Corporation’s obligations, on behalf of the Deposit Insurance Fund, to the Federal Financing Bank established by the Federal Financing Bank Act of 1973 [12 U.S.C. 2281 et seq.]. The Federal Financing Bank is authorized to purchase and sell the Corporation’s obligations on terms and conditions determined by the Federal Financing Bank. Any such borrowings shall be obligations subject to the obligation limitation of section 1825(c) of this title. This subsection does not affect the eligibility of any other entity to borrow from the Federal Financing Bank. (c) Repayment schedules required for any borrowing (1) In general No amount may be provided by the Secretary of the Treasury to the Corporation under subsection (a) unless an agreement is in effect between the Secretary and the Corporation which— (A) provides a schedule for the repayment of the outstanding amount of any borrowing under such subsection; and (B) demonstrates that income to the Corporation from assessments under this chapter will be sufficient to amortize the outstanding balance within the period established in the repayment schedule and pay the interest accruing on such balance. (2) Consultation with and report to Congress The Secretary of the Treasury and the Corporation shall— (A) consult with the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the terms of any repayment schedule agreement described in paragraph (1) relating to repayment, including terms relating to any emergency special assessment under section 1817(b)(7) of this title; and (B) submit a copy of each repayment schedule agreement entered into under paragraph (1) to the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate before the end of the 30-day period beginning on the date any amount is provided by the Secretary of the Treasury to the Corporation under subsection (a). (d) Borrowing for the Deposit Insurance Fund from insured depository institutions (1) Borrowing authority The Corporation may issue obligations to insured depository institutions, and may borrow from insured depository institutions and give security for any amount borrowed, and may pay interest on (and any redemption premium with respect to) any such obligation or amount to the extent— (A) the proceeds of any such obligation or amount are used by the Corporation solely for purposes of carrying out the Corporation’s functions with respect to the Deposit Insurance Fund; and (B) the terms of the obligation or instrument limit the liability of the Corporation or the Deposit Insurance Fund for the payment of interest and the repayment of principal to the amount which is equal to the amount of assessment income received by the Fund from assessments under section 1817 of this title. (2) Limitations on borrowing (A) Applicability of public debt limit For purposes of the public debt limit established in section 3101(b) of title 31, any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an obligation to which such limit applies. (B) Applicability of FDIC borrowing limit For purposes of the dollar amount limitation established in subsection (a), any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall be considered to be an amount borrowed from the Treasury under such subsection. (C) Interest rate limit The rate of interest payable in connection with any obligation issued, or amount borrowed, by the Corporation under paragraph (1) shall not exceed an amount determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturities. (D) Obligations to be held only by BIF members 1 The terms of any obligation issued by the Corporation under paragraph (1) shall provide that the obligation will be valid only if held by a 2 insured depository institution. (3) Liability of the Deposit Insurance Fund Any obligation issued or amount borrowed under paragraph (1) shall be a liability of the Deposit Insurance Fund. (4) Terms and conditions Subject to paragraphs (1) and (2), the Corporation shall establish the terms and conditions for obligations issued or amounts borrowed under paragraph (1), including interest rates and terms to maturity. (5) Investment by insured depository institutions (A) Authority to invest Subject to subparagraph (B) and notwithstanding any other provision of Federal law or the law of any State, any insured depository institution may purchase and hold for investment any obligation issued by the Corporation under paragraph (1) without limitation, other than any limitation the appropriate Federal banking agency may impose specifically with respect to such obligations. (B) Investment only from capital and retained earnings Any insured depository institution may purchase obligations or make loans to the Corporation under paragraph (1) only to the extent the purchase money or the money loaned is derived from the member’s 3 capital or retained earnings. (6) Accounting treatment In accounting for any investment in an obligation purchased from, or any loan made to, the Corporation for purposes of determining compliance with any capital standard and preparing any report required pursuant to section 1817(a) of this title, the amount of such investment or loan shall be treated as an asset. (e) Borrowing for the Deposit Insurance Fund from Federal home loan banks (1) In general The Corporation may borrow from the Federal home loan banks, with the concurrence of the Federal Housing Finance Board, such funds as the Corporation considers necessary for the use of the Deposit Insurance Fund. (2) Terms and conditions Any loan from any Federal home loan bank under paragraph (1) to the Deposit Insurance Fund shall— (A) bear a rate of interest of not less than the current marginal cost of funds to that bank, taking into account the maturities involved; (B) be adequately secured, as determined by the Federal Housing Finance Board; (C) be a direct liability of the Deposit Insurance Fund; and (D) be subject to the limitations of section 1825(c) of this title.
Official text at uscode.house.gov ↗