§ 934. — Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 7USC934]
TITLE 7--AGRICULTURE
CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
SUBCHAPTER III--RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS
Sec. 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.
(May 20, 1936, ch. 432, title III, Sec. 304, as added Pub. L. 93-32,
Sec. 2, May 11, 1973, 87 Stat. 67; amended Pub. L. 103-354, title II,
Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)
Codification
In subsecs. (a) and (c), ``chapter 31 of title 31'', ``such
chapter'', and ``chapter 11 of title 31'' substituted for ``the Second
Liberty Bond Act, as amended'', ``such Act, as amended'', and ``the
Budget and Accounting Act, 1921 [31 U.S.C. 1 et seq.]'', 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.
Amendments
1994--Pub. L. 103-354 substituted ``Secretary'' for
``Administrator'' wherever appearing.
Effective Date
Section effective May 11, 1973, see section 12 of Pub. L. 93-32, set
out as a note under section 930 of this title.
Section Referred to in Other Sections
This section is referred to in sections 931, 932, 939 of this title.
