[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR270.2]

[Page 850]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 270--OPEN MARKET OPERATIONS OF FEDERAL RESERVE BANKS--Table of Contents
 
Sec. 270.2  Definitions.

    (a) The term obligations means Government securities, U.S. agency 
securities, bankers' acceptances, bills of exchange, cable transfers, 
bonds, notes, warrants, debentures, and other obligations that Federal 
Reserve banks are authorized by law to purchase and sell.
    (b) The term Government securities means direct obligations of the 
United States (i.e., U.S. bonds, notes, certificates of indebtedness, 
and Treasury bills) and obligations fully guaranteed as to principal and 
interest by the United States.
    (c) The term U.S. agency securities means obligations that are 
direct obligations of, or are fully guaranteed as to principal and 
interest by, any agency of the United States.
    (d) The term System Open Market Account means the obligations 
acquired pursuant to authorizations and directives issued by the 
Committee and held on behalf of all Federal Reserve banks.