31 U.S.C. § 3102 : US Code - Section 3102: Bonds

Search 31 U.S.C. § 3102 : US Code - Section 3102: Bonds

(a) With the approval of the President, the Secretary of the
Treasury may borrow on the credit of the United States Government
amounts necessary for expenditures authorized by law and may issue
bonds of the Government for the amounts borrowed and may buy,
redeem, and make refunds under section 3111 of this title. The
Secretary may issue bonds authorized by this section to the public
and to Government accounts at any annual interest rate and
prescribe conditions under section 3121 of this title.
(b) The Secretary shall offer the bonds authorized under this
section first as a popular loan under regulations of the Secretary
that allow the people of the United States as nearly as possible an
equal opportunity to participate in subscribing to the offered
bonds. However, the bonds may be offered in a way other than as a
popular loan when the Secretary decides the other way is in the
public interest.
(c)(1) When the Secretary decides it is in the public interest in
making a bond offering under this section, the Secretary may -
(A) make full allotments on receiving applications for smaller
amounts of bonds to subscribers applying before the closing date
the Secretary sets for filing applications;
(B) reject or reduce allotments on receiving applications filed
after the closing date or for larger amounts;
(C) reject or reduce allotments on receiving applications from
incorporated banks and trust companies for their own account and
make full allotments or increase allotments to other subscribers;
and
(D) prescribe a graduated scale of allotments.
(2) The Secretary shall prescribe regulations applying to all
popular loan subscribers similarly situated governing a reduction
or increase of an allotment under paragraph (1) of this subsection.
(d) The Secretary may make special arrangements for subscriptions
from members of the armed forces. However, bonds issued to those
members must be the same as other bonds of the same issue.
(e) The Secretary may dispose of any part of a bond offering not
taken and may prescribe the price and way of disposition.