16 U.S.C. § 831n-1 : US Code - Section 831N-1: Bonds to carry out provisions of section 831k-1; amount, terms, and conditions

Search 16 U.S.C. § 831n-1 : US Code - Section 831N-1: Bonds to carry out provisions of section 831k-1; amount, terms, and conditions

With the approval of the Secretary of the Treasury, the
Corporation is authorized to issue bonds not to exceed in the
aggregate $50,000,000 outstanding at any one time, which bonds may
be sold by the Corporation to obtain funds to carry out the
provisions of section 831k-1 of this title. Such bonds shall be in
such forms and denominations, shall mature within such periods not
more than fifty years from the date of their issue, may be
redeemable at the option of the Corporation before maturity in such
manner as may be stipulated therein, shall bear such rates of
interest not exceeding 3 1/2 per centum per annum, shall be
subject to such terms and conditions, shall be issued in such
manner and amount, and sold at such prices, as may be prescribed by
the Corporation, with the approval of the Secretary of the
Treasury: Provided, That such bonds shall not be sold at such
prices or on such terms as to afford an investment yield to the
holders in excess of 3 1/2 per centum per annum. Such bonds shall
be fully and unconditionally guaranteed both as to interest and
principal by the United States, and such guaranty shall be
expressed on the face thereof, and such bonds shall be lawful
investments, and may be accepted as security, for all fiduciary,
trust, and public funds, the investment or deposit of which shall
be under the authority or control of the United States or any
officer or officers thereof. In the event that the Corporation
should not pay upon demand, when due, the principal of, or interest
on, such bonds, the Secretary of the Treasury shall pay to the
holder the amount thereof, which is authorized to be appropriated
out of any moneys in the Treasury not otherwise appropriated, and
thereupon to the extent of the amount so paid the Secretary of the
Treasury shall succeed to all the rights of the holders of such
bonds. The Secretary of the Treasury, in his discretion, is
authorized to purchase any bonds issued hereunder, and for such
purpose the Secretary of the Treasury is authorized to use as a
public-debt transaction the proceeds from the sale of any
securities hereafter issued under chapter 31 of title 31, and the
purposes for which securities may be issued under such chapter are
extended to include any purchases of the Corporation's bonds
hereunder. The Secretary of the Treasury may, at any time, sell any
of the bonds of the Corporation acquired by him under this section.
All redemptions, purchases, and sales by the Secretary of the
Treasury of the bonds of the Corporation shall be treated as public-
debt transactions of the United States. With the approval of the
Secretary of the Treasury, the Corporation shall have power to
purchase such bonds in the open market at any time and at any
price. No bonds shall be issued hereunder to provide funds or bonds
necessary for the performance of any proposed contract negotiated
by the Corporation under the authority of section 831k-1 of this
title until the proposed contract shall have been submitted to and
approved by the Federal Power Commission. When any such proposed
contract shall have been submitted to the said Commission, the
matter shall be given precedence and shall be in every way
expedited and the Commission's determination of the matter shall be
final. The authority of the Corporation to issue bonds hereunder
shall expire at the end of five years from the date when this
section as amended herein becomes law, except that such bonds may
be issued at any time after the expiration of said period to
provide bonds or funds necessary for the performance of any
contract entered into by the Corporation, prior to the expiration
of said period, under the authority of section 831k-1 of this
title.