§ 831n-3. — Use of funds; limitation of issuance.
[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-3]
TITLE 16--CONSERVATION
CHAPTER 12A--TENNESSEE VALLEY AUTHORITY
Sec. 831n-3. Use of funds; limitation of issuance
With the approval of the Secretary of the Treasury the Corporation
is authorized, after the date of enactment of this section, to issue
bonds not to exceed in the aggregate $61,500,000. Such bonds may be sold
by the Corporation to obtain funds which may be used for the following
purposes only:
(1) Not to exceed $46,000,000 may be used for the purchase of
electric utility properties of the Tennessee Electric Power Company and
Southern Tennessee Power Company, as contemplated in the contract
between the Corporation and the Commonwealth and Southern Corporation
and others, dated as of May 12, 1939.
(2) Not to exceed $6,500,000 may be used for the purchase and
rehabilitation of electric utility properties of the Alabama Power
Company and Mississippi Power Company in the following named counties in
northern Alabama and northern Mississippi: The counties of Jackson,
Madison, Limestone, Lauderdale, Colbert, Lawrence, Morgan, Marshall, De
Kalb, Cherokee, Cullman, Winston, Franklin, Marion, and Lamar in
northern Alabama, and the counties of Calhoun, Chickasaw, Monroe, Clay,
Lowndes, Oktibbeha, Choctaw, Webster, Noxubee, Winston, Neshoba, and
Kemper in northern Mississippi.
(3) Not to exceed $3,500,000 may be used for rebuilding, replacing,
and repairing electric utility properties purchased by the Corporation
in accordance with the foregoing provisions of this section.
(4) Not to exceed $3,500,000 may be used for constructing electric
transmission lines, substations, and other electrical facilities
necessary to connect the electric utility properties purchased by the
Corporation in accordance with the foregoing provisions of this section
with the electric power system of the Corporation.
(5) Not to exceed $2,000,000 may be used for making loans under
section 831k-1 of this title to States, counties, municipalities, and
nonprofit organizations to enable them to purchase any electric utility
properties referred to in the contract between the Corporation and the
Commonwealth and Southern Corporation and others, dated as of May 12,
1939, or any electric utility properties of the Alabama Power Company or
Mississippi Power Company in any of the counties in northern Alabama or
northern Mississippi named in paragraph (2) of this section.
The Corporation shall file with the President and with the Congress
in December of each year a financial statement and complete report as to
the expenditure of funds derived from the sale of bonds under this
section covering the period not covered by any such previous statement
or report. 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. None of the proceeds of the bonds shall be
used 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 under this section shall expire January 1,
1941, except that if at the time such authority expires the amount of
bonds issued by the Corporation under this section is less than
$61,500,000, the Corporation may, subject to the foregoing provisions of
this section, issue, after the expiration of such period, bonds in an
amount not in excess of the amount by which the bonds so issued prior to
the expiration of such period is less than $61,500,000, for refunding
purposes, or, subject to the provisions of paragraph (5) of this section
(limiting the purposes for which loans under section 831k-1 of this
title of funds derived from bonds proceeds may be made) to provide funds
found necessary in the performance of any contract entered into by the
Corporation prior to the expiration of such period, under the authority
of section 831k-1 of this title.
(May 18, 1933, ch. 32, Sec. 15c, as added July 26, 1939, ch. 366, 53
Stat. 1083.)
References in Text
The date of enactment of this section, referred to in text, probably
means July 26, 1939.
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.
Executive and administrative functions of Federal Power Commission,
with certain reservations, transferred to Chairman of such Commission,
with authority vested in him to authorize their performance by any
officer, employee, or administrative unit under his jurisdiction, by
Reorg. Plan No. 9 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175,
64 Stat. 1265, set out as a note under section 792 of this title.
