§3102 — Title 31 Money and Finance | U.S. Code

Summary

With the President’s OK, the Treasury Secretary can borrow money for government spending and issue U.S. Government bonds. The Secretary may sell those bonds to the public and to government accounts, set the annual interest rate, and set conditions under other rules. Bonds should be offered first as a “popular loan” so ordinary people get a fair, equal chance to buy them, but the Secretary can choose a different sales method if it’s better for the public. For popular sales, the Secretary can give full allotments to small, on-time applicants, reduce or reject late or large requests, limit bank purchases in favor of others, or use a graduated allotment plan. The Secretary must have rules that treat similar buyers the same. Special arrangements can be made for military members, but their bonds must be the same as others. Any unsold bonds can be sold or disposed of at prices and in ways the Secretary sets.

Title 31, §3102

Money and Finance — Source: USLM XML via OLRC

(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 prescribe conditions under section 3121 of this title.

(b)The Secretary shall offer the bonds authorized under this section first as a popular loan under regulations of the Secretary that allow the people of the United States as nearly as possible an equal opportunity to participate in subscribing 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 applications for smaller amounts of bonds to subscribers 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 allotments.

(2)The Secretary shall prescribe regulations applying to all popular loan subscribers similarly situated governing a reduction or increase of an allotment under paragraph (1) of this subsection.

(d)The Secretary may make special arrangements 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.

Notes & Related Subsidiaries

Historical and Revision Notes

1982 Act Revised SectionSource (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. related 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 proviso), (4th par. related to allotments). 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 sentence). 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 substituted 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 substituted 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 interest exceeding 4¼ 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 Treasury 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 substituted for “Notwithstanding the provisions of the foregoing paragraph, the Secretary of the Treasury 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 methods, should any such action” in 31:752(3d par. 1st sentence words between 4th comma and proviso) are omitted 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 section” are added for clarity. In subsection (c)(2), the word “

Regulations

” is substituted for “general rules” for consistency in the revised 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 consistency with title 10. 1983 Act Revised SectionSource (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”.

§3102 Bonds

Summary

Title 31, §3102

Notes & Related Subsidiaries

Historical and Revision Notes

Regulations

Regulations

Regulations

Editorial Notes

Amendments

Citations & Metadata