Page:United States Statutes at Large Volume 86.djvu/311

 86 STAT. ]

269

PUBLIC LAW 92-318-JUNE 23, 1972

such audits until December 31, 1975. A report of each such audit shall be furnished to the Secretary of the Treasury. The audit shall be conducted at the place or places where the accounts are normally kept. The representatives of the Secretary shall have access to all books, accounts, financial records, reports, files, and all other papers, things, or property belonging to or in use by the Association and necessary to facilitate the audit, and they shall be afforded full facilities for verifying transactions with the balances or securities held by depositaries, fiscal agents, and custodians. " (k) A report of each such audit for a fiscal year shall be made by rhe Secretary of the Treasury to the President and to the Congress not later than six months following the close of such fiscal year. The report shall set forth the scope of the audit and shall include a statement (showing intercorporate relations) of assets and liabilities, capital and >urplr.s or deficit; a statement of surplus or deficit analysis; a statement of income and expense; a statement of sources and application of funds; and such comments and information as may be deemed necessary to keep the President and the Congress informed of the operations and financial condition of the Association, together with such recommendations with respect thereto as the Secretary may deem advisable, including a report of any impairment of capital or lack of sufficient capital noted in the audit. A copy of each report shall be furnished to the Secretary of Health. Education, and Welfare and to the Association. •* (1) All obligations issued by the Association shall be lawful invest' ments, and may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under authority or control of the United States or of any officer or ofRcers thereof. All stock and obligations issued by the Association pursuant to this section shall be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission, to the same extent as securities which are direct obligations of. or obligations guaranteed as to principal or interest by, the United States. The Association shall, for the purposes of section 14(b)(2) of the Federal Reserve Act, be deemed to be an agency of the United States. " (m) In order to furnish obligations for delivery by the Association, the Secretary of the Treasury is authorized to prepare such obligations in such form as the Board of Directors may approA^e, such obligations when prepared to be held in the Treasury subject to delivery upon •irder by the Association. The engraved plates, dies, bed j^ieces. and so forth, 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 expenditures made in the preparation, custody, and delivery of such obligations. " (n) The Association shall, as soon as practicable after the end of each fiscal year, transmit to the President and the Congress a report of its operations and activities during each year.''. (b) If any provision of the amendment made by subsection (a) of this section or the application thereof to any person or circumstance is held invalid, the validity of the remainder of the amendment, and the application of such provisions to other persons or circumstances, shall not be affected. (c)(1) The sixth sentence of the seventh paragraph of section 513f) of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting "or obligations or other instruments or securities of the Student Loan Marketing Association," immediately after "or obligations, participation, or other instruments of or issued by the Federal Xational Mortgage Association or the Government National Mortgage Association,''.

Report to Treasury.

Reports to P r e s i d e n t and Congress.

Lawful investments.

80 Stat. 825. 12 USC 355. Preparation and delivery.

Reimbursement.

Report to P r e s i dent and Congress. Separability.

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