31 U.S.C. § 3102 — Bonds

Page 215 TITLE 31—MONEY AND FINANCE § 3102 401(b)(3)(B)(i)(II) of title IV of Pub. L. 112–25, which is set out in a note under section 900 of Title 2, The Con- gress. Section 255, section 256, and subsections (c), (d), (e), and (f) of section 253 of the Balanced Budget and Emer- gency Deficit Control Act of 1985, referred to in subsec. (f)(6)(B), are classified to sections 905, 906, and 903(c) to (f), respectively, of Title 2, The Congress. § 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 pre- scribe conditions under section 3121 of this title. (b) The Secretary shall offer the bonds author- ized under this section first as a popular loan under regulations of the Secretary that allow the people of the United States as nearly as pos- sible an equal opportunity to participate in sub- scribing 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 appli- cations for smaller amounts of bonds to sub- scribers 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 allot- ments. (2) The Secretary shall prescribe regulations applying to all popular loan subscribers simi- larly situated governing a reduction or increase of an allotment under paragraph (1) of this sub- section. (d) The Secretary may make special arrange- ments 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. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 938; Pub. L. 97–452, § 1(5), Jan. 12, 1983, 96 Stat. 2467; Pub. L. 98–34, § 2, May 26, 1983, 97 Stat. 196; Pub. L. 98–302, § 2, May 25, 1984, 98 Stat. 217; Pub. L. 99–272, title XIII, § 13212, Apr. 7, 1986, 100 Stat. 325; Pub. L. 100–203, title IX, § 9403, Dec. 22, 1987, 101 Stat. 1330–377; Pub. L. 100–647, title VI, § 6301, Nov. 10, 1988, 102 Stat. 3755.) HISTORICAL AND REVISION NOTES 1982 ACT Revised Section Source (U.S. Code) Source (Statutes at Large) 3102(a) ..... 31:752(1st par.). Sept. 24, 1917, ch. 56, § 1(1st par.), 40 Stat. 288; restated Apr. 4, 1918, ch. 44, § 1, 40 Stat. 502; July 9, 1918, ch. 142, § 1, 40 Stat. 844; Mar. 3, 1931, ch. 433, 46 Stat. 1506; Feb. 4, 1935, ch. 5, § 1, 49 Stat. 20; May 26, 1938, ch. 285, § 1, 52 Stat. 447. 31:752(2d par. less form of bonds). Sept. 24, 1917, ch. 56, § 1(2d par. less form of bonds), 40 Stat. 288; restated Apr. 4, 1918, ch. 44, § 1, 40 Stat. 502; Mar. 17, 1971, Pub. L. 92–5, § 3, 85 Stat. 5; July 1, 1973, Pub. L. 93–53, § 2, 87 Stat. 135; Mar. 15, 1976, Pub. L. 94–232, § 3(a), 90 Stat. 217; June 30, 1976, Pub. L. 94–334, § 2, 90 Stat. 793; Oct. 4, 1977, Pub. L. 95–120, § 3, 91 Stat. 1090; Aug. 3, 1978, Pub. L. 95–333, § 3, 92 Stat. 419; Apr. 2, 1979, Pub. L. 96–5, § 3, 93 Stat. 8; Sept. 29, 1979, Pub. L. 96–78, § 102, 93 Stat. 589; Oct. 3, 1980, Pub. L. 96–377, § 2, 94 Stat. 1512. 3102(b) ..... 31:752(3d par. 1st sentence words before 4th comma). Sept. 24, 1917, ch. 56, § 1(3d par.), 40 Stat. 288; restated Apr. 4, 1918, ch. 44, § 1, 40 Stat. 502. 31:752(4th par. re- lated to a popular loan). Sept. 24, 1917, ch. 56, 40 Stat. 288, § 1(4th par.); added Jan. 30, 1934, ch. 6, § 14(a)(1), 48 Stat. 343. 3102(c)(1) 31:752(3d par. 1st sentence words between 4th comma and pro- viso), (4th par. re- lated to allot- ments). 3102(c)(2) 31:752(3d par. 1st sentence proviso). 3102(d) ..... 31:752(3d par. last sentence). 3102(e) ..... 31:752(3d par. 2d sen- tence). In subsection (a), the word ‘‘amounts’’ is substituted for ‘‘sum or sums’’ for consistency. The words ‘‘as in his judgment may be’’ are omitted as surplus. The words ‘‘for expenditures authorized by law’’ are sub- stituted for ‘‘for the purposes of this Act . . . and to meet expenditures authorized for the national security and defense and other public purposes authorized by law’’ because they are inclusive and for consistency. The words ‘‘under section 3111 of this title’’ are sub- stituted for ‘‘at or before maturity, of any outstanding bonds, notes, certificates of indebtedness, or Treasury bills of the United States’’ because of the restatement. The words ‘‘prescribe conditions under section 3121 of this title’’ are substituted for the text of 31:752(2d par. 1st sentence less form of bonds, 2d sentence) because of the restatement. The words ‘‘at any annual interest rate’’ are added for clarity and to more precisely define the 4.25 percent limitation. The words ‘‘bonds may not be issued under this section to the public, or sold by a Government account to the public, with a rate of inter- est exceeding 41⁄4 per centum per annum in an amount which would cause’’ are omitted as surplus. In subsections (b), (d), and (e), the words ‘‘not less than par’’ are omitted as superseded by section 3 of the Public Debt Act of 1942 (ch. 205, 56 Stat. 189), restated in section 3121 of the revised title. In subsection (b), the words ‘‘under regulations of the Secretary that allow’’ are substituted for ‘‘under such regulations, prescribed by the Secretary of the Treas- ury from time to time, as will in his opinion give’’ to eliminate unnecessary words. The words ‘‘subscribing to the offered bonds’’ are substituted for ‘‘therein’’ for clarity. The words ‘‘However . . . when the Secretary decides the other way is in the public interest’’ are sub- stituted for ‘‘Notwithstanding the provisions of the foregoing paragraph, the Secretary of the Treasury Page 216 TITLE 31—MONEY AND FINANCE § 3103 may from time to time, when he deems it to be in the public interest’’ to eliminate unnecessary words. In subsection (c)(1), before clause (A), the words ‘‘and may from time to time adopt any or all of said meth- ods, should any such action’’ in 31:752(3d par. 1st sen- tence words between 4th comma and proviso) are omit- ted because of the restatement. The word ‘‘decides’’ is substituted for ‘‘deemed’’ in 31:752(3d par. 1st sentence words between 4th comma and proviso) and ‘‘deems’’ in 31:752a(4th par. related to allotments) for consistency. The words ‘‘in making a bond offering under this sec- tion’’ are added for clarity. In subsection (c)(2), the word ‘‘regulations’’ is sub- stituted for ‘‘general rules’’ for consistency in the re- vised title and with other titles of the United States Code. In subsection (d), the words ‘‘members of armed forces’’ are substituted for ‘‘persons in the military or naval forces of the United States’’ for clarity and con- sistency with title 10. 1983 ACT Revised Section Source (U.S. Code) Source (Statutes at Large) 3102(a) ..... 31 App.:752(2d par. less form of bonds). Sept. 3, 1982, Pub. L. 97–248, § 289(c), 96 Stat. 572. Editorial Notes AMENDMENTS 1988—Subsec. (a). Pub. L. 100–647 struck out at end: ‘‘However, the face amount of bonds issued under this section and held by the public with interest rates of more than 4.25 percent a year may not be more than $270,000,000,000.’’ 1987—Subsec. (a). Pub. L. 100–203 substituted ‘‘$270,000,000,000’’ for ‘‘$250,000,000,000’’. 1986—Subsec. (a). Pub. L. 99–272 substituted ‘‘$250,000,000,000’’ for ‘‘$200,000,000,000’’. 1984—Subsec. (a). Pub. L. 98–302 substituted ‘‘$200,000,000,000’’ for ‘‘$150,000,000,000’’. 1983—Subsec. (a). Pub. L. 98–34 substituted ‘‘$150,000,000,000’’ for ‘‘$110,000,000,000’’. Pub. L. 97–452 substituted ‘‘$110,000,000,000’’ for ‘‘$70,000,000,000’’. § 3103. Notes (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 notes of the Government for the amounts borrowed and may buy, redeem, and make refunds under section 3111 of this title. The Secretary may prescribe conditions under section 3121 of this title. Notwithstanding section 3121(a)(5) of this title, the payment date of each series of notes issued shall be at least one year but not more than 10 years from the date of issue. (b) The Government may redeem any part of a series of notes before maturity by giving at least 4 months’ notice but not more than one year’s notice. (c) The holder of a note of one series issued under this section with the same issue date as another series of notes issued under this section may convert, at par value, a note of the holder for a note of the other series. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 939.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 3103(a), (b). 31:753(a)(less form of notes, certifi- cates of indebted- ness, and Treas- ury bills). Sept. 24, 1917, ch. 56, 40 Stat. 288, § 18(a)(less form of notes, certificates of indebt- edness, and Treasury bills); added Mar. 3, 1919, ch. 100, § 1, 40 Stat. 1309; Nov. 23, 1921, ch. 136, § 1401, 42 Stat. 321; Jan. 30, 1934, ch. 6, § 14(a)(3), 48 Stat. 343; re- stated Feb. 4, 1935, ch. 5, § 4, 49 Stat. 20; June 30, 1967, Pub. L. 90–39, § 4, 81 Stat. 99; Mar. 15, 1976, Pub. L. 94–232, § 3(b), 90 Stat. 217. 3103(c) ..... 31:753(c). Sept. 24, 1917, ch. 56, 40 Stat. 288, § 18(c); added Mar. 3, 1919, ch. 100, § 1, 40 Stat. 1310. In subsection (a), the words ‘‘In addition to the bonds and certificates of indebtedness and war-savings certifi- cates authorized by this Act, and amendments thereto’’ are omitted as unnecessary. The words ‘‘subject to the limitation imposed by section 757b of this title’’ are omitted as surplus. The word ‘‘Government’’ is added for consistency. The words ‘‘for expenditures author- ized by law’’ are substituted for ‘‘for the purposes of this Act . . . and to meet public expenditures author- ized by law’’ for clarity and because they are inclusive. The words ‘‘under section 3111 of this title’’ are sub- stituted for ‘‘at or before maturity, of any outstanding bonds, notes, certificates of indebtedness, or Treasury bills of the United States’’ because of the restatement. The words ‘‘denomination or denominations’’ are omit- ted because section 3121(a) of the revised title consoli- dates this authority in one section for the various types of debt instruments. The words ‘‘under section 3121 of this title’’ are substituted for ‘‘containing such terms and conditions, and at such rate or rates of inter- est’’ because of the restatement. The words ‘‘at not less than par (except as provided in section 754b of this title)’’ are omitted as superseded by section 3 of the Public Debt Act of 1942 (ch. 205, 56 Stat. 189), restated in section 3121 of the revised title. The words ‘‘Notwith- standing section 3121(a)(5) of this title’’ are added for clarity because the section cited contains the general authority to which subsection (a)(last sentence) of this section is an exception. In subsection (b), the words ‘‘at the option of’’ and ‘‘and under such rules and regulations and during such period as he may prescribe’’ are omitted as surplus. Subsection (c) is substituted for 31:753(c) to eliminate unnecessary words and for clarity and consistency. § 3104. Certificates of indebtedness and Treasury bills (a) The Secretary of the Treasury may borrow on the credit of the United States Government amounts necessary for expenditures authorized by law and may buy, redeem, and make refunds under section 3111 of this title. For amounts bor- rowed, the Secretary may issue— (1) certificates of indebtedness of the Gov- ernment; and (2) Treasury bills of the Government. (b) The Secretary may prescribe conditions for issuing certificates of indebtedness and Treas- ury bills under section 3121 of this title and con- ditions under which the certificates and bills may be redeemed before maturity. Notwith- standing section 3121(a)(5) of this title, the pay- ment date of certificates of indebtedness and Treasury bills may not be more than one year after the date of issue. (c) Treasury bills issued under this section may not be accepted before maturity to pay