[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1687 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1687

 To provide for annual payments from the surplus funds of the Federal 
   Reserve System to cover the interest on obligations issued by the 
                         Financing Corporation.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 18, 1996

   Mr. Kerry introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide for annual payments from the surplus funds of the Federal 
   Reserve System to cover the interest on obligations issued by the 
                         Financing Corporation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Surplus Act of 
1996''.

SEC. 2. TRANSFER OF FEDERAL RESERVE SURPLUS FUNDS TO MEET FICO CARRYING 
              COSTS.

    (a) In General.--Section 7(a) of the Federal Reserve Act (12 U.S.C. 
289) is amended by adding at the end the following new paragraph:
            ``(4) FICO payments.--
                    ``(A) In general.--During the period beginning on 
                the date of enactment of the Federal Reserve Surplus 
                Act of 1996 and ending on the date on which the 
                Financing Corporation ceases to have any obligations 
                outstanding under section 21(e) of the Federal Home 
                Loan Bank Act, the Board shall annually transfer (in 
                addition to the transfers of funds required under 
                paragraph (3)) to the Financing Corporation, from 
                amounts in the surplus funds of the Federal reserve 
                banks, an amount equal to $3,000,000,000 divided by the 
                number of calendar years any portion of which falls 
                within such period for use in accordance with section 
                21(f)(1) of the Federal Home Loan Bank Act.
                    ``(B) Allocation.--The Board shall annually 
                determine, on the basis of such factors as the Board 
                considers appropriate, the manner in which the amount 
                of the obligation of the Board under subparagraph (A) 
                shall be allocated among the surplus funds of the 
                Federal reserve banks.''.
    (b) Conforming Amendment.--Paragraph (1) of section 21(f) of the 
Federal Home Loan Bank Act (12 U.S.C. 1441(f)) is amended to read as 
follows:
            ``(1) Federal reserve surplus.--
                    ``(A) In general.--Amounts transferred to the 
                Financing Corporation by the Board of Governors of the 
                Federal Reserve System from the surplus funds of the 
                Federal reserve banks in accordance with section 
                7(a)(4) of the Federal Reserve Act.
                    ``(B) Treatment in case of bank insurance fund 
                member assessments.--To the extent Bank Insurance Fund 
                members (as defined in section 7(l)(4) of the Federal 
                Deposit Insurance Act) are subject to any assessments 
                under this subsection, the total amount of such 
                assessments which, but for this subparagraph, would be 
                imposed on all such members for any year shall be 
                reduced by the transferred amount referred to in 
                subparagraph (A) with respect to such year.''.
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