Congressional Charter Law and Legal Definition

A congressional charter is a law passed by the U.S. Congress describing the purpose, authority, and actions of an organization or an agency. Generally state laws are made of three corporate documents; Congress Charter, Constitution, and by laws. Congress has used charters to create a variety of corporate entities, such as banks, government-sponsored enterprises, commercial corporations, venture, and capital funds. The relationship between Congress and the organization gives the organization the impression of being officially sanctioned by the U.S. government. Since Congress does not supervise organizations with the charter other than receiving a yearly financial statement, in 1990s Congress agreed not to issue additional charters to clarify that the chartered organizations are not government entities.