7 U.S.C. § 934 : US Code - Section 934: Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens

Search 7 U.S.C. § 934 : US Code - Section 934: Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens

(a) The Secretary is authorized to make and issue interim notes
to the Secretary of the Treasury for the purpose of obtaining funds
necessary for discharging obligations of the fund and for making
loans, advances and authorized expenditures out of the fund. Such
notes shall be in such form and denominations and have such
maturities and be subject to such terms and conditions as may be
agreed upon by the Secretary and the Secretary of the Treasury.
Such notes shall bear interest at a rate fixed by the Secretary of
the Treasury, taking into consideration the current average market
yield of outstanding marketable obligations of the United States
having maturities comparable to the notes issued by the Secretary
under this section. The Secretary of the Treasury is authorized and
directed to purchase any notes of the Secretary issued hereunder,
and, for that purpose, the Secretary of the Treasury is authorized
to use as a public debt transaction the proceeds from the sale of
any securities issued under chapter 31 of title 31, and the
purposes for which such securities may be issued under such chapter
are extended to include the purchase of notes issued by the
Secretary. All redemptions, purchases, and sales by the Secretary
of the Treasury of such notes shall be treated as public debt
transactions of the United States: Provided, however, That such
interim notes to the Secretary of the Treasury shall not be
included in the totals of the budget of the United States
Government and shall be exempt from any general limitation imposed
by statute on expenditures and net lending (budget outlays) of the
United States.
(b) The Secretary of the Treasury is authorized and directed to
purchase for resale obligations insured through the fund when
offered by the Secretary. Such resales shall be upon such terms and
conditions as the Secretary of the Treasury shall determine.
Purchases and resales by the Secretary of the Treasury hereunder
shall not be included in the totals of the budget of the United
States Government and shall be exempt from any general limitation
imposed by statute on expenditures and not lending (budget outlays)
of the United States.
(c) The Secretary may, on an insured basis or otherwise, sell and
assign any notes in the fund or sell certificates of beneficial
ownership therein to the Secretary of the Treasury or in the
private market. Any sale by the Secretary of notes individually or
in blocks shall be treated as a sale of assets for the purposes of
chapter 11 of title 31, notwithstanding the fact that the
Secretary, under an agreement with the purchaser or purchasers,
holds the debt instruments evidencing the loans and holds or
reinvests payments thereon as trustee and custodian for the
purchaser or purchasers of the individual note or of the
certificate of beneficial ownership in a number of such notes.
Security instruments taken by the Secretary in connection with any
notes in the fund may constitute liens running to the United States
notwithstanding the fact that such notes may be thereafter held by
purchasers thereof.