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    [Appendix]
    [Other Materials]
    [Financing Vehicles and the Board of Governors of the Federal Reserve]
    [From the U.S. Government Publishing Office, www.gpo.gov]

             <h1>FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE</h1>

          FINANCING VEHICLES AND THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE

             This chapter contains descriptions of, and data on, financing vehicles and the Board of Governors of the Federal Reserve System
                (Board). The Financing Corporation functions as a financing vehicle for the Federal Savings and Loan Insurance Corporation
                (FSLIC) Resolution Fund. The Resolution Funding Corporation provided financing for the Resolution Trust Corporation (RTC)
                and is subject to the general oversight and direction of the Secretary of the Treasury.

             The Board's transactions are not included in the Budget because of its unique status in the conduct of monetary policy. The
                Board provides data on its administrative budget, which is included here for information. Its budget is not subject to review
                by the President and is executed and presented here on a calendar-year basis. The previous year's data reflects the final
                budget, as approved by the Board.

             The 2017 balance sheets for the Financing Corporation and Resolution Funding Corporation are as of December 31, 2017, and
                the 2018 balance sheets are as of September 30, 2018.

          Federal Funds
             Financing Corporation
             The Financing Corporation (FICO) is a mixed-ownership Government corporation, chartered by the Federal Home Loan Bank Board
                pursuant to the Federal Savings and Loan Insurance Corporation Recapitalization Act of 1987, as amended (the Act). FICO's
                sole purpose is to function as a financing vehicle for the FSLIC Resolution Fund, formerly the Federal Savings and Loan Insurance
                Corporation. Pursuant to the Act, FICO was authorized to issue debentures, bonds, and other obligations subject to limitations
                contained in the Act, the net proceeds of which were to be used solely to purchase capital certificates issued by the FSLIC
                Resolution Fund or to refund any previously issued obligations. The Resolution Trust Corporation Refinancing, Restructuring,
                and Improvement Act of 1991 terminated FICO's borrowing authority.

             The Act provided formulas pursuant to which the Federal Home Loan Banks made capital contributions to FICO. FICO used the
                proceeds received from the sales of such capital stock to purchase non-interest bearing securities for deposit in a segregated
                account as required by the Act. The non-interest bearing securities held in the segregated account are the primary source
                of repayment of the principal of FICO obligations. Securities in the segregated account are kept separate from other FICO
                accounts and funds, but are not specifically pledged as collateral for the payment of obligations. The primary source of payment
                of interest on the obligations is the receipt of assessments imposed on and collected from institutions' accounts, which are
                insured by the Federal Deposit Insurance Corporation's Deposit Insurance Fund.

          Balance Sheet (in millions of dollars)

                      Identification code 920–4980–0–4–373
                      2017 actual
                      2018 actual

                      ASSETS:

                      Federal assets:

                      Investments in U.S. securities:

                      1102
                      Segregated accounts investment, net
                      6,860
                      4,529

                      1801
                      Other Federal assets: Cash, cash equivalents
                      187
                      176

                      1999
                      Total assets
                      7,047
                      4,705

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Interest payable
                      136
                      112

                      2203
                      Debt
                      6,968
                      4,419

                      2207
                      Other
                      53
                      65

                      2999
                      Total liabilities
                      7,157
                      4,596

                      NET POSITION:

                      3100
                      FICO capital stock purchased by FHLBanks
                      680
                      680

                      3300
                      Cumulative results of operations
                      7,380
                      7,599

                      3300
                      FSLIC capital certificates
                      –8,170
                      –8,170

                      3999
                      Total net position
                      –110
                      109

                      4999
                      Total liabilities and net position
                      7,047
                      4,705

             Resolution Funding Corporation
             The Resolution Funding Corporation (REFCORP) is a mixed-ownership Government corporation established by Title V of the Financial
                Institutions Reform, Recovery, and Enforcement Act of 1989 or FIRREA (P.L. 101–73). The sole purpose of REFCORP was to provide
                financing for the Resolution Trust Corporation (RTC). Pursuant to FIRREA, REFCORP was authorized to issue debentures, bonds,
                and other obligations, subject to limitations contained in the Act and regulations established by the Thrift Depositor Protection
                Oversight Board. The proceeds of the debt (less any discount, plus any premium, net of issuance cost) were used solely to
                purchase nonredeemable capital certificates of RTC or to refund any previously issued obligations.

             Until October 29, 1998, REFCORP was subject to the general oversight and direction of the Thrift Depositor Protection Oversight
                Board. At that time, the Oversight Board was abolished and its authority and duties were transferred to the Secretary of the
                Treasury. The day-to-day operations of REFCORP are under the management of a three-member Directorate composed of the Chief
                Executive Officer of the Office of Finance of the Federal Home Loan Banks and two members selected from among the presidents
                of the 11 Federal Home Loan Banks (FHLBs). Members of the Directorate serve without compensation, and REFCORP is not permitted
                to have any paid employees.

             FIRREA, as amended, and the regulations adopted by the Thrift Depositor Protection Oversight Board and the Secretary of the
                Treasury required that FHLBs contribute 20 percent of net earnings annually to assist in the payment of interest on bonds
                issued by REFCORP until such time as the total payments are equivalent to a $300 million annual annuity with a final maturity
                date of April 15, 2030. The FHLBs fulfilled this obligation on August 5, 2011. Since then, only the U.S. Treasury has paid
                interest on REFCORP's long-term obligations. For details, please see the Payment to the Resolution Funding Corporation account
                in the Department of the Treasury section of the Appendix volume of the Budget.

          Balance Sheet (in millions of dollars)

                      Identification code 920–4981–0–4–373
                      2017 actual
                      2018 actual

                      ASSETS:

                      Federal assets:

                      Investments in U.S. securities:

                      1102
                      Principal fund account investment, net
                      20,174
                      21,385

                      1206
                      Non-Federal assets: Assessments receivable for interest expense
                      886
                      888

                      1999
                      Total assets
                      21,060
                      22,273

                      LIABILITIES:

                      Non-Federal liabilities:

                      2202
                      Accrued interest payable on long-term obligations
                      886
                      888

                      2203
                      Debt
                      30,058
                      30,056

                      2999
                      Total liabilities
                      30,944
                      30,944

                      NET POSITION:

                      3100
                      Nonvoting capital stock issued to FHLBanks
                      2,513
                      2,513

                      3300
                      Cumulative results of operations
                      17,832
                      19,045

                      3300
                      RTC nonredeemable capital certificates
                      –31,286
                      –31,286

                      3300
                      Contributed capital - principal fund assessments
                      1,057
                      1,057

                      3999
                      Total net position
                      –9,884
                      –8,671

                      4999
                      Total liabilities and net position
                      21,060
                      22,273

             Board of Governors of the Federal Reserve SystemProgram and Financing (in millions of dollars)

                      Identification code 920–4982–0–4–803
                      2017 actual
                      2018 est.
                      2019 est.

                      Obligations by program activity:

                      0801
                      Monetary and economic policy
                      160
                      176
                      179

                      0802
                      Federal Reserve System policy direction
                      38
                      40
                      41

                      0803
                      Supervisory, regulatory, and legal services
                      239
                      261
                      267

                      0804
                      Support and security services
                      254
                      267
                      261

                      0805
                      Currency operating expenses (Board incurred)
                      44
                      56
                      49

                      0806
                      Extraordinary items
                      16
                      22
                      46

                      0809
                      Reimbursable program activities, subtotal
                      751
                      822
                      843

                      0810
                      Office of Inspector General operating expenses
                      34
                      36
                      35

                      0900
                      Total new obligations, unexpired accounts
                      785
                      858
                      878

                      Budgetary resources:

                      Financing authority:

                      Spending authority from offsetting collections, mandatory:

                      1800
                      Collected
                      785
                      858
                      878

                      1930
                      Total budgetary resources available
                      785
                      858
                      878

                      Change in obligated balance:

                      Unpaid obligations:

                      3010
                      New obligations, unexpired accounts
                      785
                      858
                      878

                      3020
                      Outlays (gross)
                      –785
                      –858
                      –878

                      Financing authority and disbursements, net:

                      Mandatory:

                      4090
                      Budget authority, gross
                      785
                      858
                      878

                      4110
                      Outlays, gross (total)
                      785
                      858
                      878

                      Offsets against gross financing authority and disbursements:

                      Offsetting collections (collected) from:

                      4123
                      Non-Federal sources
                      –785
                      –858
                      –878

                      4180
                      Budget authority, net (total)

                      4190
                      Outlays, net (total)

             The Federal Reserve System operates under the provisions of the Federal Reserve Act of 1913, as amended, and other acts of
                the Congress. To carry out its responsibilities under this Act, the Board of Governors (Board) determines general monetary,
                credit, and operating policies for the System as a whole and formulates the rules and regulations necessary to carry out the
                purposes of the Act. The Board's principal duties consist of exerting an influence over credit conditions and supervising
                the Federal Reserve banks and member banks.

             Under the provisions of section 10 of the Federal Reserve Act, the Board levies upon the Federal Reserve banks, in proportion
                to their capital and surplus, an assessment sufficient to pay its estimated expenses. Also under the Act, the Board determines
                and prescribes the manner in which its obligations are incurred and its expenses paid. Funds derived from assessments are
                deposited in the Federal Reserve Bank of Richmond and the Act provides that such funds "not be construed to be Government
                funds or appropriated moneys.'' No Government appropriation is required to support operations of the Board.

             The Board issues U.S. currency (Federal Reserve notes) and the Reserve Banks distribute currency through depository institutions.
                The Board incurs costs and assesses the Reserve Banks for these costs related to producing, issuing, and retiring Federal
                Reserve notes, as well as providing other services. The assessment is allocated based on each Reserve Bank's share of the
                number of notes comprising the System's net liability for Federal Reserve notes on December 31 of the prior year. The Board
                recognizes the assessment in the year in which the associated costs are incurred.

             Since 2017, the Board has undertaken a greater role in the currency program, including in research and development and quality
                assurance. This expanded role is reflected in the reclassification of certain transactions compared to prior years. The information
                presented pertains to Board operations only, which includes these new programs; expenditures for the currency program costs
                specific to the work performed by Treasury, including production, issuance and retirement, are not included.

             The Dodd-Frank Act (P.L. 111–203), enacted July 21, 2010, directed the Board to collect assessments, fees, or other charges
                equal to the total expenses the Board estimates are necessary or appropriate to carry out the supervisory and regulatory responsibilities
                of the Board for certain bank holding companies and savings and loan holding companies, as well as nonbank financial companies
                designated for Board supervision by the Financial Stability Oversight Council (FSOC). The Board does not recognize the supervision
                and regulation assessments as revenue nor does the Board use the collections to fund Board expenses; the funds are transferred
                to the Treasury. The Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, P.L. 115–174), enacted May
                24, 2018, directed the Board to collect these assessments, fees, or other charges on such companies with total consolidated
                assets of $100 billion (from $50 billion in the Dodd-Frank Act), as well as to adjust amounts charged to reflect changes in
                supervisory and regulatory responsibilities resulting from EGRRCPA on firms with total consolidated assets less than $250
                billion.

          Object Classification (in millions of dollars)

                      Identification code 920–4982–0–4–803
                      2017 actual
                      2018 est.
                      2019 est.

                      Reimbursable obligations:

                      11.1
                      Personnel compensation: Full-time permanent
                      437
                      471
                      483

                      12.1
                      Civilian personnel benefits
                      92
                      97
                      97

                      13.0
                      Benefits for former personnel
                      13
                      13
                      17

                      21.0
                      Travel and transportation of persons
                      14
                      18
                      16

                      22.0
                      Transportation of things
                      22
                      25
                      23

                      23.2
                      Rental payments to others
                      31
                      35
                      36

                      23.3
                      Communications, utilities, and miscellaneous charges
                      8
                      10
                      8

                      24.0
                      Printing and reproduction
                      12
                      11
                      8

                      25.1
                      Advisory and assistance services
                      69
                      85
                      99

                      25.2
                      Other services from non-Federal sources
                      50
                      60
                      56

                      25.4
                      Operation and maintenance of facilities
                      4
                      3
                      3

                      25.7
                      Operation and maintenance of equipment
                      5
                      5
                      4

                      26.0
                      Supplies and materials
                      1
                      1
                      1

                      31.0
                      Equipment
                      27
                      24
                      27

                      99.9
                      Total new obligations, unexpired accounts
                      785
                      858
                      878