50 U.S.C. § 1904 : US Code - Section 1904: National Security Education Trust Fund

Search 50 U.S.C. § 1904 : US Code - Section 1904: National Security Education Trust Fund

(a) Establishment of Fund
There is established in the Treasury of the United States a trust
fund to be known as the "National Security Education Trust Fund".
The assets of the Fund consist of amounts appropriated to the Fund
and amounts credited to the Fund under subsection (e) of this
section.
(b) Availability of sums in Fund
Sums in the Fund shall, to the extent provided in appropriations
Acts, be available -
(1) for awarding scholarships, fellowships, and grants in
accordance with the provisions of this chapter; and
(2) for properly allocable costs of the Federal Government for
the administration of the program under this chapter.
(c) Investment of Fund assets
The Secretary of the Treasury shall invest in full the amount in
the Fund that is not immediately necessary for expenditure. Such
investments may be made only in interest-bearing obligations of the
United States or in obligations guaranteed as to both principal and
interest by the United States. For such purpose, such obligations
may be acquired on original issue at the issue price or by purchase
of outstanding obligations at the market price. The purposes for
which obligations of the United States may be issued under chapter
31 of title 31 are hereby extended to authorize the issuance at par
of special obligations exclusively to the Fund. Such special
obligations shall bear interest at a rate equal to the average rate
of interest, computed as to the end of the calendar month next
preceding the date of such issue, borne by all marketable interest-
bearing obligations of the United States then forming a part of
the public debt, except that where such average rate is not a
multiple of 1/8 of 1 percent, the rate of interest of such
special obligations shall be the multiple of 1/8 of 1 percent
next lower than such average rate. Such special obligations shall
be issued only if the Secretary of the Treasury determines that the
purchases of other interest-bearing obligations of the United
States, or of obligations guaranteed as to both principal and
interest by the United States or original issue or at the market
price, is not in the public interest.
(d) Authority to sell obligations
Any obligation acquired by the Fund (except special obligations
issued exclusively to the Fund) may be sold by the Secretary of the
Treasury at the market price, and such special obligations may be
redeemed at par plus accrued interest.
(e) Amounts credited to Fund
(1) The interest on, and the proceeds from the sale or redemption
of, any obligations held in the Fund shall be credited to and form
a part of the Fund.
(2) Any amount paid to the United States under section 1902(b)(3)
of this title shall be credited to and form a part of the Fund.
(3) Any gifts of money shall be credited to and form a part of
the Fund.