15 USC 697b - Pooling of debentures

U.S Code last checked for updates: Nov 22, 2024

§ 697b.

Pooling of debentures

(a)

Issuance; debentures composing trust or pool

(b)

Terms and conditions of guarantee; payment of principal and interest

(c)

Full faith and credit of United States

(d)

Collection of fees

(e)

Subrogation rights; ownership rights in debentures

(1)

In the event the Administration pays a claim under a guarantee issued under this section, it shall be subrogated fully to the rights satisfied by such payment.

(2)

No State or local law, and no Federal law, shall preclude or limit the exercise by the Administration of its ownership rights in the debentures constituting the trust or pool against which the trust certificates are issued.

(f)

Central registration requirements; regulation of brokers and dealers; electronic registration

(1)

The Administration shall—

(A)

provide for a central registration of all trust certificates sold pursuant to this section;

(B)

contract with an agent to carry out on behalf of the Administration the central registration functions of this section and the issuance of trust certificates to facilitate poolings; such agent shall provide a fidelity bond or insurance in such amounts as the Administration determines to be necessary to fully protect the interests of the Government;

(C)

prior to any sale, require the seller to disclose to a purchaser of a trust certificate issued pursuant to this section, information on the terms, conditions, and yield of such instrument; and

(D)

have the authority to regulate brokers and dealers in trust certificates sold pursuant to this section.

(2)

Nothing in this subsection shall prohibit the utilization of a book-entry or other electronic form of registration for trust certificates.

(Pub. L. 85–699, title V, § 505, as added Pub. L. 99–272, title XVIII, § 18008(c), Apr. 7, 1986, 100 Stat. 367; amended Pub. L. 100–590, title I, § 111(d)(1), (2), Nov. 3, 1988, 102 Stat. 2995; Pub. L. 104–208, div. D, title II, § 205(c), Sept. 30, 1996, 110 Stat. 3009–738.)

cite as: 15 USC 697b