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Internal Revenue Code of 1986

The main body of federal tax law in the United States, established in 1986 and frequently amended.

Tax-exempt status

A condition where certain income, like interest from specific bonds, is not subject to federal income tax, making it more appealing to investors.

State and local bonds

Debt securities issued by state, county, or municipal governments to raise money for public projects, such as roads, schools, or hospitals.

Federal Home Loan Bank (FHLB)

A system of 11 government-sponsored banks that provide low-cost funding to their member financial institutions (like banks, credit unions, and insurance companies) to support mortgage lending and community development.

Federally guaranteed

When a federal agency or entity formally promises to pay back a debt if the original borrower defaults, often making the debt more secure but potentially affecting its tax treatment.

Federal Housing Finance Agency (FHFA)

An independent agency of the U.S. government that regulates and oversees the Federal Home Loan Banks, Fannie Mae, and Freddie Mac.

Safety and soundness requirements