Page:United States Statutes at Large Volume 103 Part 1.djvu/430

 103 STAT. 402 PUBLIC LAW 101-73 —AUG. 9, 1989 "(i) IN GENERAL. —To the extent the amounts avail- able pursuant to subparagraphs (A), (B), (C), and (D) are insufficient to cover the amount of interest payments, the Secretary of the Treasury shall pay to the Funding Corporation the additional amount due, which shall be used by the Funding Corporation to pay such interest, "(ii) LIABILITY OF FUNDING CORPORATION. — In each instance where the Secretary is required to make a pa3anent under this subparagraph to the Funding Cor- poration, the amount of the payment shall become a liability of the Funding Corporation to be repaid to the Secretary upon dissolution of the Funding Corporation (to the extent the Funding Corporation may have any remaining assets), "(iii) APPROPRIATION OF FUNDS.—There are hereby, appropriated to the Secretary, for fiscal year 1989 and each fiscal year thereafter, such sums as may be nec- essary to carry out clause (i). "(3) PRINCIPAL PAYMENTS. — On maturity of an obligation issued under this subsection, the obligation shall be repaid by the Funding Corporation from the liquidation of noninterest bearing instruments held in the Funding Corporation Principal Fund. "(4) PROCEEDS TO BE TRANSFERRED TO RESOLUTION TRUST COR- PORATION. —Subject to terms and conditions approved by the Oversight Board, the proceeds (less any discount, plus any premium, net of issuance costs) of any obligation issued by the Funding Corporation shall be used to— "(A) purchase the capital certificates issued by the Reso- lution Trust Corporation under section 21A; or "(B) refund any previously issued obligation the proceeds of which were transferred in the manner described in subparagraph (A). "(5) INVESTMENT OF UNITED STATES FUNDS IN OBLIGATIONS. — Obligations issued under this section by the Funding Corpora- tion, at the direction of the Oversight Board shall be lawful investments, and may be accepted as security, for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer of the United States. "(6) MARKET FOR OBLIGATIONS. — Al l persons having the power to invest in, sell, underwrite, purchase for their own accounts, accept as security, or otherwise deal in obligations of the Fed- eral Home Loan Banks shall also have the power to do so with respect to obligations of the Funding Corporation. (7) TAX EXEMPT STATUS. — "(A) IN GENERAL.— Except as provided in subparagraph (B), obligations of the Funding Corporation shall be exempt from ta^ both as to principal and interest to the same extent as any obligation of a Federal Home Loan Bank is exempt from tax under section 13 of this Act. "(B) EXCEPTION.— The Funding Corporation, like the Fed- eral Home Loan Banks, shall be treated as an agency of the United States for purposes of the first sentence of section 3124(b) of title 31, United States Code (relating to deter- mination of tax status of interest on obligations). "(8) OBLIGATIONS NOT EXEMPT SECURITIES. —

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