§ 831n-1. — Bonds to carry out provisions of section 831k1; amount, terms, and conditions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC831n-1]
TITLE 16--CONSERVATION
CHAPTER 12A--TENNESSEE VALLEY AUTHORITY
Sec. 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.
(May 18, 1933, ch. 32, Sec. 15a, as added Aug. 31, 1935, ch. 836,
Sec. 9, 49 Stat. 1078.)
References in Text
The date when this section as amended herein becomes law, referred
to in text, probably means August 31, 1935.
Codification
``Chapter 31 of title 31'' and ``such chapter'' substituted in text
for ``the Second Liberty Bond Act, as amended'' and ``such Act, as
amended,'', respectively, on authority of Pub. L. 97-258, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title
31, Money and Finance.
Transfer of Functions
Federal Power Commission terminated and its functions, personnel,
property, funds, etc., transferred to Secretary of Energy (except for
certain functions transferred to Federal Energy Regulatory Commission)
by sections 7151(b), 7171(a), 7172(a), 7291, and 7293 of Title 42, The
Public Health and Welfare.
Section Referred to in Other Sections
This section is referred to in section 831n-2 of this title.
