§ 4129. — Authority to borrow and invest.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 18USC4129]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART III--PRISONS AND PRISONERS
CHAPTER 307--EMPLOYMENT
Sec. 4129. Authority to borrow and invest
(a)(1) As approved by the board of directors, Federal Prison
Industries, to such extent and in such amounts as are provided in
appropriations Acts, is authorized to issue its obligations to the
Secretary of the Treasury, and the Secretary of the Treasury, in the
Secretary's discretion, may purchase or agree to purchase any such
obligations, except that the aggregate amount of obligations issued by
Federal Prison Industries under this paragraph that are outstanding at
any time may not exceed 25 percent of the net worth of the corporation.
For purchases of such obligations by the Secretary of the Treasury, the
Secretary is authorized to use as a public debt transaction the proceeds
of the sale of any securities issued under chapter 31 of title 31 after
the date of the enactment of this section, and the purposes for which
securities may be issued under that chapter are extended to include such
purchases. Each purchase of obligations by the Secretary of the Treasury
under this subsection shall be upon such terms and conditions as to
yield a return at a rate not less than a rate determined by the
Secretary of the Treasury, taking into consideration the current average
yield on outstanding marketable obligations of the United States of
comparable maturity. For purposes of the first sentence of this
paragraph, the net worth of Federal Prison Industries is the amount by
which its assets (including capital) exceed its liabilities.
(2) The Secretary of the Treasury may sell, upon such terms and
conditions and at such price or prices as the Secretary shall determine,
any of the obligations acquired by the Secretary under this subsection.
All purchases and sales by the Secretary of the Treasury of such
obligations under this subsection shall be treated as public debt
transactions of the United States.
(b) Federal Prison Industries may request the Secretary of the
Treasury to invest excess moneys from the Prison Industries Fund. Such
investments shall be in public debt securities with maturities suitable
to the needs of the corporation as determined by the board of directors,
and bearing interest at rates determined by the Secretary of the
Treasury, taking into consideration current market yields on outstanding
marketable obligations of the United States of comparable maturities.
(Added Pub. L. 100-690, title VII, Sec. 7093(a), Nov. 18, 1988, 102
Stat. 4411.)
References in Text
The date of the enactment of this section, referred to in subsec.
(a)(1), is the date of enactment of Pub. L. 100-690 which was approved
Nov. 18, 1988.
Section Referred to in Other Sections
This section is referred to in section 4127 of this title.
