[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR81.94]



[Page 470-471]

 

                 TITLE 24--HOUSING AND URBAN DEVELOPMENT

 

PART 81_THE SECRETARY OF HUD'S REGULATION OF THE FEDERAL NATIONAL 

MORTGAGE ASSOCIATION (FANNIE MAE) AND THE FEDERAL HOME LOAN MORTGAGE 

CORPORATION (FREDDIE MAC)--Table of Contents

 

                     Subpart H_Book-Entry Procedures

 

Sec.  81.94  Obligations of GSEs; no adverse claims.



    (a) Except in the case of a security interest in favor of the United 

States or a Federal Reserve Bank or otherwise as provided in Sec.  

81.93(c)(1), for the purposes of this subpart H, the GSE and the Federal 

Reserve Banks shall treat the Participant to whose Securities Account an 

interest in a Book-entry GSE Security has been credited as the person 

exclusively entitled to issue a Transfer Message, to receive interest 

and other payments with respect thereof and otherwise to exercise all 

the rights and powers with respect to such



[[Page 471]]



Security, notwithstanding any information or notice to the contrary. 

Neither the Federal Reserve Banks nor a GSE is liable to a Person 

asserting or having an adverse claim to a Security Entitlement or to a 

Book-entry GSE Security in a Participant's Securities Account, including 

any such claim arising as a result of the transfer or disposition of a 

Book-entry GSE Security by a Federal Reserve Bank pursuant to a Transfer 

Message that the Federal Reserve Bank reasonably believes to be genuine.

    (b) The obligation of the GSE to make payments (including payments 

of interest and principal) with respect to Book-entry GSE Securities is 

discharged at the time payment in the appropriate amount is made as 

follows:

    (1) Interest or other payments on Book-entry GSE Securities is 

either credited by a Federal Reserve Bank to a Funds Account maintained 

at such Bank or otherwise paid as directed by the Participant.

    (2) Book-entry GSE Securities are redeemed in accordance with their 

terms by a Federal Reserve Bank withdrawing the securities from the 

Participant's Securities Account in which they are maintained and by 

either crediting the amount of the redemption proceeds, including both 

redemption proceeds, where applicable, to a Funds Account at such Bank 

or otherwise paying such redemption proceeds as directed by the 

Participant. No action by the Participant ordinarily is required in 

connection with the redemption of a Book-entry GSE Security.



[61 FR 63948, Dec. 2, 1996, as amended at 62 FR 28977, May 28, 1997]