§ 1723a. — General powers of Government National Mortgage Association and Federal National Mortgage Association.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1723a]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER III--NATIONAL MORTGAGE ASSOCIATIONS
Sec. 1723a. General powers of Government National Mortgage
Association and Federal National Mortgage Association
(a) Seal, and other matters incident to operation
Each of the bodies corporate named in section 1717(a)(2) of this
title shall have power to adopt, alter, and use a corporate seal, which
shall be judicially noticed; to enter into and perform contracts,
leases, cooperative agreements, or other transactions, on such terms as
it may deem appropriate, with any agency or instrumentality of the
United States, or with any State, Territory, or possession, or the
Commonwealth of Puerto Rico, or with any political subdivision thereof,
or with any person, firm, association, or corporation; to execute, in
accordance with its bylaws, all instruments necessary or appropriate in
the exercise of any of its powers; in its corporate name, to sue and to
be sued, and to complain and to defend, in any court of competent
jurisdiction, State or Federal, but no attachment, injunction, or other
similar process, mesne or final, shall be issued against the property of
the Association or against the Association with respect to its property;
to conduct its business without regard to any qualification or similar
statute in any State of the United States, including the District of
Columbia, the Commonwealth of Puerto Rico, and the Territories and
possessions of the United States; to lease, purchase, or acquire any
property, real, personal, or mixed, or any interest therein, to hold,
rent, maintain, modernize, renovate, improve, use, and operate such
property, and to sell, for cash or credit, lease, or otherwise dispose
of the same, at such time and in such manner as and to the extent that
it may deem necessary or appropriate; to prescribe, repeal, and amend or
modify, rules, regulations, or requirements governing the manner in
which its general business may be conducted; to accept gifts or
donations of services, or of property, real, personal, or mixed,
tangible, or intangible, in aid of any of its purposes; and to do all
things as are necessary or incidental to the proper management of its
affairs and the proper conduct of its business.
(b) Determination with respect to obligations and expenditures
Except as may be otherwise provided in this subchapter, in chapter
91 of title 31, or in other laws specifically applicable to Government
corporations, the Association shall determine the necessity for and the
character and amount of its obligations and expenditures and the manner
in which they shall be incurred, allowed, paid, and accounted for.
(c) Exemption from taxation
(1) The Association, including its franchise, capital, reserves,
surplus, mortgages or other security holdings, and income shall be
exempt from all taxation now or hereafter imposed by the United States,
by any territory, dependency, or possession thereof, or by any State,
county, municipality, or local taxing authority, except that any real
property of the Association shall be subject to State, territorial,
county, municipal, or local taxation to the same extent according to its
value as other real property is taxed.
(2) The corporation, including its franchise, capital, reserves,
surplus, mortgages or other security holdings, and income, shall be
exempt from all taxation now or hereafter imposed by any State,
territory, possession, Commonwealth, or dependency of the United States,
or by the District of Columbia, or by any county, municipality, or local
taxing authority, except that any real property of the corporation shall
be subject to State, territorial, county, municipal, or local taxation
to the same extent as other real property is taxed.
(d) Appointment and compensation of personnel; use of services of other
agencies
(1) Subject to the provisions of section 1723(a) of this title, the
Secretary of Housing and Urban Development shall have power to select
and appoint or employ such officers, attorneys, employees, and agents of
the Association, to vest them with such powers and duties, and to fix
and to cause the Association to pay such compensation to them for their
services, as he may determine, subject to the civil service and
classification laws. With the consent of any Government corporation or
Federal Reserve bank, or of any board, commission, independent
establishment, or executive department of the Government, the
Association may avail itself on a reimbursable basis of the use of
information, services, facilities, officers, and employees thereof,
including any field service thereof, in carrying out the provisions of
the subchapter.
(2) The board of directors of the corporation shall have the power
to select and appoint or employ such officers, attorneys, employees, and
agents, to vest them with such powers and duties, and to fix and to
cause the corporation to pay such compensation to them for their
services, as the board of directors determines reasonable and comparable
with compensation for employment in other similar businesses (including
other publicly held financial institutions or major financial services
companies) involving similar duties and responsibilities, except that a
significant portion of potential compensation of all executive officers
(as such term is defined in paragraph (3)(C)) of the corporation shall
be based on the performance of the corporation; and any such action
shall be without regard to the Federal civil service and classification
laws. Appointments, promotions, and separations so made shall be based
on merit and efficiency, and no political tests or qualifications shall
be permitted or given consideration. Each officer and employee of the
corporation who is employed by the corporation prior to January 31,
1972, and who on the day previous to the beginning of such employment
will have been subject to the civil service retirement law (subch. III
of ch. 83 of title 5) shall, so long as the employment of such officer
or employee by the corporation continues without a break in continuity
of service, continue to be subject to such law; and for the purpose of
such law the employment of such officer or employee by the corporation
without a break in continuity of service shall be deemed to be
employment by the Government of the United States. The corporation shall
contribute to the Civil Service Retirement and Disability Fund a sum as
provided by section 8334(a) of title 5, except that such sum shall be
determined by applying to the total basic pay (as defined in section
8331(3) of title 5 and except as hereinafter provided) paid to the
employees of the corporation who are covered by the civil service
retirement law, the per centum rate determined annually by the Director
of the Office of Personnel Management to be the excess of the total
normal cost per centum rate of the civil service retirement system over
the employee deduction rate specified in section 8334(a) of title 5. The
corporation shall also pay into the Civil Service Retirement and
Disability Fund such portion of the cost of administration of the fund
as is determined by the Director of the Office of Personnel Management
to be attributable to its employees. Notwithstanding the foregoing
provisions, there shall not be considered for the purposes of the civil
service retirement law that portion of the basic pay in any one year of
any officer or employee of the corporation which exceeds the basic pay
provided for positions listed in section 5312 of title 5 on the last day
of such year: Provided, That with respect to any person whose employment
is made subject to the civil service retirement law by section 806 of
the Housing and Community Development Act of 1974, there shall not be
considered for the purposes of such law that portion of the basic pay of
such person in any one year which exceeds the basic pay provided for
positions listed in section 5316 of such title 5 on the last day of such
year. Except as provided in this subsection, the corporation shall not
be subject to the provisions of title 5.
(3)(A) Not later than June 30, 1993, and annually thereafter, the
corporation shall submit a report 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 on (i) the
comparability of the compensation policies of the corporation with the
compensation policies of other similar businesses, (ii) in the
aggregate, the percentage of total cash compensation and payments under
employee benefit plans (which shall be defined in a manner consistent
with the corporation's proxy statement for the annual meeting of
shareholders for the preceding year) earned by executive officers of the
corporation during the preceding year that was based on the
corporation's performance, and (iii) the comparability of the
corporation's financial performance with the performance of other
similar businesses. The report shall include a copy of the corporation's
proxy statement for the annual meeting of shareholders for the preceding
year.
(B) Notwithstanding the first sentence of paragraph (2), after
October 28, 1992, the corporation may not enter into any agreement or
contract to provide any payment of money or other thing of current or
potential value in connection with the termination of employment of any
executive officer of the corporation, unless such agreement or contract
is approved in advance by the Director of the Office of Federal Housing
Enterprise Oversight of the Department of Housing and Urban Development.
The Director may not approve any such agreement or contract unless the
Director determines that the benefits provided under the agreement or
contract are comparable to benefits under such agreements for officers
of other public and private entities involved in financial services and
housing interests who have comparable duties and responsibilities. For
purposes of this subparagraph, any renegotiation, amendment, or change
after October 28, 1992, to any such agreement or contract entered into
on or before October 28, 1992, shall be considered entering into an
agreement or contract.
(C) For purposes of this paragraph, the term ``executive officer''
has the meaning given the term in section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 [12 U.S.C. 4502].
(e) Prohibition against use of names; injunction; damages
No individual, association, partnership, or corporation, except the
bodies corporate named in section 1717(a)(2) of this title, shall
hereafter use the words ``Federal National Mortgage Association,''
``Government National Mortgage Association,'' or any combination of such
words, as the name or a part thereof under which the individual,
association, partnership, or corporation shall do business. Violations
of the foregoing sentence may be enjoined by any court of general
jurisdiction at the suit of the proper body corporate. In any such suit,
the plaintiff may recover any actual damages flowing from such
violation, and, in addition, shall be entitled to punitive damages
(regardless of the existence or nonexistence of actual damages) of not
exceeding $100 for each day during which such violation is committed or
repeated.
(f) Preparation of forms of obligations and certificates
In order that the Association may be supplied with such forms of
obligations or certificates as it may need for issuance under this
subchapter, the Secretary of the Treasury is authorized, upon request of
the Association, to prepare such forms as shall be suitable and approved
by the Association, to be held in the Treasury subject to delivery, upon
order of the Association. The engraved plates, dies, bed pieces, and
other material executed in connection therewith shall remain in the
custody of the Secretary of the Treasury. The Association shall
reimburse the Secretary of the Treasury for any expenses incurred in the
preparation, custody, and delivery of such forms.
(g) Depositaries, custodians, and fiscal agents
The Federal Reserve banks are authorized and directed to act as
depositaries, custodians, and fiscal agents for each of the bodies
corporate named in section 1717(a)(2) of this title, for its own account
or as fiduciary, and such banks shall be reimbursed for such services in
such manner as may be agreed upon; and each of such bodies corporate may
itself act in such capacities, for its own account or as fiduciary, and
for the account of others.
(h), (i) Repealed. Pub. L. 102-550, title XIII, Sec. 1381(k), Oct. 28,
1992, 106 Stat. 3997
(j) Audit; access to books, etc.; report of audit
(1) The programs, activities, receipts, expenditures, and financial
transactions of the corporation shall be subject to audit by the
Comptroller General of the United States under such rules and
regulations as may be prescribed by the Comptroller General. The
representatives of the General Accounting Office shall have access to
such books, accounts, financial records, reports, files, and such other
papers, things, or property belonging to or in use by the corporation
and necessary to facilitate the audit, and they shall be afforded full
facilities for verifying transactions with the balances or securities
held by depositories, fiscal agents, and custodians. A report on each
such audit shall be made by the Comptroller General to the Congress. The
corporation shall reimburse the General Accounting Office for the full
cost of any such audit as billed therefor by the Comptroller General.
(2) To carry out this subsection, the representatives of the General
Accounting Office shall have access, upon request to the corporation or
any auditor for an audit of the corporation under subsection (l) of this
section, to any books, accounts, financial records, reports, files, or
other papers, things, or property belonging to or in use by the
corporation and used in any such audit and to any papers, records,
files, and reports of the auditor used in such an audit.
(k) Financial reports; submission to Director; contents
(1) The corporation shall submit to the Director of the Office of
Federal Housing Enterprise Oversight of the Department of Housing and
Urban Development annual and quarterly reports of the financial
condition and operations of the corporation which shall be in such form,
contain such information, and be submitted on such dates as the Director
shall require.
(2) Each such annual report shall include--
(A) financial statements prepared in accordance with generally
accepted accounting principles;
(B) any supplemental information or alternative presentation
that the Director may require; and
(C) an assessment (as of the end of the corporation's most
recent fiscal year), signed by the chief executive officer and chief
accounting or financial officer of the corporation, of--
(i) the effectiveness of the internal control structure and
procedures of the corporation; and
(ii) the compliance of the corporation with designated
safety and soundness laws.
(3) The corporation shall also submit to the Director any other
reports required by the Director pursuant to section 1314 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 [12
U.S.C. 4514].
(4) Each report of financial condition shall contain a declaration
by the president, vice president, treasurer, or any other officer
designated by the board of directors of the corporation to make such
declaration, that the report is true and correct to the best of such
officer's knowledge and belief.
(l) Independent audits of financial statements
(1) The corporation shall have an annual independent audit made of
its financial statements by an independent public accountant in
accordance with generally accepted auditing standards.
(2) In conducting an audit under this subsection, the independent
public accountant shall determine and report on whether the financial
statements of the corporation (A) are presented fairly in accordance
with generally accepted accounting principles, and (B) to the extent
determined necessary by the Director, comply with any disclosure
requirements imposed under subsection (k)(2)(B) of this section.
(m) Mortgage data collection and reporting requirements
(1) The corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to its
mortgages on housing consisting of 1 to 4 dwelling units. Such data
shall include--
(A) the income, census tract location, race, and gender of
mortgagors under such mortgages;
(B) the loan-to-value ratios of purchased mortgages at the time
of origination;
(C) whether a particular mortgage purchased is newly originated
or seasoned;
(D) the number of units in the housing subject to the mortgage
and whether the units are owner-occupied; and
(E) any other characteristics that the Secretary considers
appropriate, to the extent practicable.
(2) The corporation shall collect, maintain, and provide to the
Secretary, in a form determined by the Secretary, data relating to its
mortgages on housing consisting of more than 4 dwelling units. Such data
shall include--
(A) census tract location of the housing;
(B) income levels and characteristics of tenants of the housing
(to the extent practicable);
(C) rent levels for units in the housing;
(D) mortgage characteristics (such as the number of units
financed per mortgage and the amount of loans);
(E) mortgagor characteristics (such as nonprofit, for-profit,
limited equity cooperatives);
(F) use of funds (such as new construction, rehabilitation,
refinancing);
(G) type of originating institution; and
(H) any other information that the Secretary considers
appropriate, to the extent practicable.
(3)(A) Except as provided in subparagraph (B), this subsection shall
apply only to mortgages purchased by the corporation after December 31,
1992.
(B) This subsection shall apply to any mortgage purchased by the
corporation after the date determined under subparagraph (A) if the
mortgage was originated before such date, but only to the extent that
the data referred in paragraph (1) or (2), as applicable, is available
to the corporation.
(n) Report on housing activities; contents; public disclosure
(1) The corporation shall submit to the Committee on Banking,
Finance and Urban Affairs of the House of Representatives, the Committee
on Banking, Housing, and Urban Affairs of the Senate, and the Secretary
a report on its activities under subpart B of part 2 of subtitle A of
the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 [12 U.S.C. 4561 et seq.].
(2) The report under this subsection shall--
(A) include, in aggregate form and by appropriate category,
statements of the dollar volume and number of mortgages on owner-
occupied and rental properties purchased which relate to each of the
annual housing goals established under such subpart;
(B) include, in aggregate form and by appropriate category,
statements of the number of families served by the corporation, the
income class, race, and gender of homebuyers served, the income
class of tenants of rental housing (to the extent such information
is available), the characteristics of the census tracts, and the
geographic distribution of the housing financed;
(C) include a statement of the extent to which the mortgages
purchased by the corporation have been used in conjunction with
public subsidy programs under Federal law;
(D) include statements of the proportion of mortgages on housing
consisting of 1 to 4 dwelling units purchased by the corporation
that have been made to first-time homebuyers, as soon as providing
such data is practicable, and identifying any special programs (or
revisions to conventional practices) facilitating homeownership
opportunities for first-time homebuyers;
(E) include, in aggregate form and by appropriate category, the
data provided to the Secretary under subsection (m)(1)(B) of this
section;
(F) compare the level of securitization versus portfolio
activity;
(G) assess underwriting standards, business practices,
repurchase requirements, pricing, fees, and procedures, that affect
the purchase of mortgages for low- and moderate-income families, or
that may yield disparate results based on the race of the borrower,
including revisions thereto to promote affordable housing or fair
lending;
(H) describe trends in both the primary and secondary
multifamily housing mortgage markets, including a description of the
progress made, and any factors impeding progress toward
standardization and securitization of mortgage products for
multifamily housing;
(I) describe trends in the delinquency and default rates of
mortgages secured by housing for low- and moderate-income families
that have been purchased by the corporation, including a comparison
of such trends with delinquency and default information for mortgage
products serving households with incomes above the median level that
have been purchased by the corporation, and evaluate the impact of
such trends on the standards and levels of risk of mortgage products
serving low- and moderate-income families;
(J) describe in the aggregate the seller and servicer network of
the corporation, including the volume of mortgages purchased from
minority-owned, women-owned, and community-oriented lenders, and any
efforts to facilitate relationships with such lenders;
(K) describe the activities undertaken by the corporation with
nonprofit and for-profit organizations and with State and local
governments and housing finance agencies, including how the
corporation's activities support the objectives of comprehensive
housing affordability strategies under section 12705 of title 42;
and
(L) include any other information that the Secretary considers
appropriate.
(3)(A) The corporation shall make each report under this subsection
available to the public at the principal and regional offices of the
corporation.
(B) Before making a report under this subsection available to the
public, the corporation may exclude from the report information that the
Secretary has determined is proprietary information under section 1326
of the Federal Housing Enterprises Financial Safety and Soundness Act of
1992 [12 U.S.C. 4546].
(o) Affordable Housing Advisory Council
(1) Not later than 4 months after October 28, 1992, the corporation
shall appoint an Affordable Housing Advisory Council to advise the
corporation regarding possible methods for promoting affordable housing
for low- and moderate-income families.
(2) The Affordable Housing Advisory Council shall consist of 15
individuals, who shall include representatives of community-based and
other nonprofit and for-profit organizations and State and local
government agencies actively engaged in the promotion, development, or
financing of housing for low- and moderate-income families.
(June 27, 1934, ch. 847, title III, Sec. 309, as added Aug. 2, 1954, ch.
649, title II, Sec. 201, 68 Stat. 620; amended Pub. L. 87-70, title VI,
Sec. 603(e), June 30, 1961, 75 Stat. 177; Pub. L. 90-448, title VIII,
Sec. 802(z)-(ee), Aug. 1, 1968, 82 Stat. 540, 541; Pub. L. 92-310, title
II, Sec. 223(c), June 6, 1972, 86 Stat. 206; Pub. L. 93-383, title VIII,
Sec. 806(k), Aug. 22, 1974, 88 Stat. 728; Pub. L. 94-375, Sec. 17(b),
Aug. 3, 1976, 90 Stat. 1076; Pub. L. 95-128, title IV, Sec. 408(c), Oct.
12, 1977, 91 Stat. 1138; 1978 Reorg. Plan No. 2, Sec. 102, eff. Jan. 1,
1979, 43 F.R. 36037, 92 Stat. 3783; Pub. L. 98-440, title II, Secs. 208,
209, 213(a), Oct. 3, 1984, 98 Stat. 1696, 1698; Pub. L. 98-479, title
II, Sec. 203(a)(3), Oct. 17, 1984, 98 Stat. 2229; Pub. L. 100-242, title
IV, Sec. 444, Feb. 5, 1988, 101 Stat. 1922; Pub. L. 101-73, title VII,
Sec. 731(m)(3), Aug. 9, 1989, 103 Stat. 436; Pub. L. 102-550, title
XIII, Sec. 1381(j)-(q), (s)(3), Oct. 28, 1992, 106 Stat. 3996-4001.)
References in Text
The civil service laws, referred to in subsec. (d), are set forth in
Title 5, Government Organization and Employees. See, particularly,
section 3301 et seq. of Title 5.
The classification laws, referred to in subsec. (d), are classified
to chapter 51 (Sec. 5101 et seq.) and subchapter III (Sec. 5331 et seq.)
of chapter 53 of Title 5.
The civil service retirement law, referred to in subsec. (d), is
classified to subchapter III (Sec. 8331 et seq.) of chapter 83 of Title
5.
Section 806 of the Housing and Community Development Act of 1974,
referred to in subsec. (d)(2), is section 806 of Pub. L. 93-383, title
VIII, Aug. 22, 1974, 88 Stat. 727. Subsection (k) of section 806 amended
this subsec. (d)(2) relative to employment subject to the civil service
retirement law. For complete classification of section 806 to the Code,
see Tables.
The Federal Housing Enterprises Financial Safety and Soundness Act
of 1992, referred to in subsec. (n)(1), (2)(A), is title XIII of Pub. L.
102-550, Oct. 28, 1992, 106 Stat. 3941. Subpart B of part 2 of subtitle
A of the Act is classified generally to subpart 2 (Sec. 4561 et seq.) of
part B of subchapter I of chapter 46 of this title. For complete
classification of this Act to the Code, see Short Title note under
section 4501 of this title and Tables.
Prior Provisions
Prior provisions on the subject of subsecs. (a) and (c) to (e) of
this section were contained in sections 1716, 1719, and 1721 of this
title.
Amendments
1992--Subsec. (d)(2). Pub. L. 102-550, Sec. 1381(s)(3)(A)(ii), which
directed the substitution, in last sentence, of ``the basic pay of such
persons'' for ``his basic pay'', was executed by making the substitution
in penultimate sentence to reflect the probable intent of Congress,
because the words ``his basic pay'' do not appear in last sentence.
Pub. L. 102-550, Sec. 1381(j)(1), (s)(3)(A)(i), in first sentence,
substituted ``as the board of directors determines reasonable and
comparable with compensation for employment in other similar businesses
(including other publicly held financial institutions or major financial
services companies) involving similar duties and responsibilities,
except that a significant portion of potential compensation of all
executive officers (as such term is defined in paragraph (3)(C)) of the
corporation shall be based on the performance of the corporation'' for
``as it may determine'' and in third sentence ``the employment of such
officer or employee'' for ``his employment'' in two places.
Subsec. (d)(3). Pub. L. 102-550, Sec. 1381(j)(2), added par. (3).
Subsec. (e). Pub. L. 102-550, Sec. 1381(s)(3)(B), substituted ``the
individual, association, partnership, or corporation'' for ``he or it''.
Subsecs. (h), (i). Pub. L. 102-550, Sec. 1381(k), struck out subsec.
(h) which related to regulatory power over Federal National Mortgage
Association, approval for issuance of stock and other instruments,
relation of mortgage purchases to national goal, audits, and a report to
Congress and subsec. (i) which related to requests for approval
submitted by Federal National Mortgage Association to Secretary, report
to Congress, extension of approval period, and effect of inaction by
Secretary.
Subsec. (j). Pub. L. 102-550, Sec. 1381(l), designated existing
provisions as par. (1), inserted first sentence and struck out former
first sentence which read as follows: ``The mortgage transactions of the
corporation may be subject to audit by the Comptroller General of the
United States in accordance with the principles and procedures
applicable to commercial corporation transactions under such rules and
regulations as may be prescribed by the Comptroller General.'', and
added par. (2).
Subsecs. (k) to (o). Pub. L. 102-550, Sec. 1381(m)-(q), added
subsecs. (k) to (o), respectively.
1989--Subsec. (j). Pub. L. 101-73 added subsec. (j).
1988--Subsec. (i). Pub. L. 100-242 inserted at end of second
sentence ``, but such 45-day period may not be extended for any other
reason or for any period in addition to or other than such 15-day
period''.
1984--Subsec. (b). Pub. L. 98-479 substituted ``chapter 91 of title
31'' for ``the Government Corporation Control Act''.
Subsec. (h). Pub. L. 98-440, Secs. 208, 213(a), substituted ``issued
by the corporation before October 1, 1985,'' for ``issued by the
Corporation'' and substituted ``shall, not later than June 30 of each
year, report to the Congress on the activities of the corporation under
this subchapter'' for ``shall conduct a review of the financial
operations of the corporation and undertake a study of the extent to
which the activities of the corporation meet the purposes of this
subchapter. Such review and study shall be completed and transmitted to
the Congress on or before July 1, 1978.''
Subsec. (i). Pub. L. 98-440, Sec. 209, added subsec. (i).
1977--Subsec. (h). Pub. L. 95-128 inserted provision for review of
the financial operations of the corporation and a study respecting how
the activities of the corporation meet the purposes of this subchapter
and transmittal of the review and study to the Congress.
1976--Subsec. (d)(1). Pub. L. 94-375 substituted ``Subject to the
provisions of section 1723(a) of this title, the Secretary'' for ``The
Secretary''.
1974--Subsec. (d)(2). Pub. L. 93-383 inserted ``positions listed''
before ``in section 5312'' and proviso relating to persons whose
employment is subject to the civil service law by section 806 of the
Housing and Community Development Act of 1974, and substituted reference
to Jan. 31, 1972, for reference to termination of transitional period
referred to in section 810(b) of the Housing and Urban Development Act
of 1968.
1972--Subsec. (d)(1). Pub. L. 92-310 struck out provisions which
related to bonds of officers, attorneys, employees, and agents of the
Association and which permitted the Association to pay the premiums
therefor.
1968--Subsec. (a). Pub. L. 90-448, Sec. 802(z), among other changes,
expanded scope to include both the Government National Mortgage
Association and the Federal National Mortgage Association, substituted
``conduct its business without regard to any qualification or similar
statute'' for ``conduct its business'', and struck out provisions which
empowered the Federal National Mortgage Association, by its board of
directors, to adopt, amend, and repeal bylaws.
Subsec. (c). Pub. L. 90-448, Sec. 802(aa), designated existing
provisions as par. (1), and struck out provisions which required the
Association, with respect to its secondary market operations under
section 1719 of this title, to pay annually to the Secretary of the
Treasury an amount equivalent to the amount of Federal income taxes for
which it would be subject if it were not exempt from such taxes with
respect to such secondary market operations, and added par. (2).
Subsec. (d). Pub. L. 90-448, Sec. 802(bb), designated existing
provisions as par. (1), substituted ``Secretary of Housing and Urban
Development'' for ``Chairman of the Board'', and ``agents of the
Association'' for ``agents'', and added par. (2).
Subsec. (e). Pub. L. 90-448, Sec. 802(cc), prohibited the use of the
name Government National Mortgage Association, authorized injunctions,
and permitted recovery of actual damages and punitive damages, and
eliminated provisions which made violations of this subsection a
misdemeanor punishable by a fine of not more than $100 or imprisonment
for not more than 30 days, or both, for each day during which the
violation is committed or repeated.
Subsec. (g). Pub. L. 90-448, Sec. 802(dd), authorized and directed
the Federal Reserve Banks to act for the Government National Mortgage
Association, and empowered each of the bodies corporate to act as
depositary, custodian, and fiscal agent, for its own account or as
fiduciary, and for the account of others.
Subsec. (h). Pub. L. 90-448, Sec. 802(ee), added subsec. (h).
1961--Subsec. (c). Pub. L. 87-70 inserted ``or other security
holdings'' after ``mortgages''.
Change of Name
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of Pub.
L. 104-14, set out as a note preceding section 21 of Title 2, The
Congress. Committee on Banking and Financial Services of House of
Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally transferred
from Committee on Energy and Commerce of House of Representatives by
House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001.
Effective Date of 1974 Amendment
Section 806(k) of Pub. L. 93-383 provided that the amendment made by
that section does not apply with respect to any person receiving an
annuity on the date of the enactment of Pub. L. 93-383, which was
approved Aug. 22, 1974.
Effective Date of 1968 Amendment
For effective date of amendment by title VIII of Pub. L. 90-448, see
section 808 of Pub. L. 90-448, set out as an Effective Date note under
section 1716b of this title.
Transfer of Functions
``Director of the Office of Personnel Management'' substituted for
``United States Civil Service Commission'' pursuant to Reorg. Plan No. 2
of 1978, Sec. 102, 43 F.R. 36037, 92 Stat. 3783, set out under section
1101 of Title 5, Government Organization and Employees, which
transferred functions vested by statute in United States Civil Service
Commission to Director of Office of Personnel Management (except as
otherwise specified), effective Jan. 1, 1979, as provided by section 1-
102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under
section 1101 of Title 5.
Termination of Advisory Councils
Advisory councils established after Jan. 5, 1973, to terminate not
later than the expiration of the 2-year period beginning on the date of
their establishment, unless, in the case of a council established by the
President or an officer of the Federal Government, such council is
renewed by appropriate action prior to the expiration of such 2-year
period, or in the case of a council established by Congress, its
duration is otherwise provided by law. See sections 3(2) and 14 of Pub.
L. 92-463, Oct. 6, 1972, 86 Stat. 770, 776, set out in the Appendix to
Title 5, Government Organization and Employees.
Proposal by Federal National Mortgage Association Respecting Mortgage-
Backed Securities Program; Approval, Etc.
Pub. L. 96-399, title III, Sec. 330, Oct. 8, 1980, 94 Stat. 1652,
provided that: ``If the Federal National Mortgage Association submits to
the Secretary of Housing and Urban Development or the Secretary of the
Treasury, after the date of enactment of this section [Oct. 8, 1980], a
proposal with respect to undertaking a mortgage-backed securities
program, the Secretary of Housing and Urban Development or the Secretary
of the Treasury, as the case may be, shall, within 90 days after
submission of such proposal, approve the proposal or transmit to the
Congress a report explaining why the proposal has not been approved.''
Section Referred to in Other Sections
This section is referred to in sections 1719, 1833c, 4513, 4514,
4543, 4544, 4546, 4581, 4585, 4631, 4636 of this title; title 42 section
12851.
