§398 Sales of Government certificates to obtain funds for advances

Summary

The Treasury can sell U.S. certificates of indebtedness to raise money for advances to the reclamation fund. The certificates come in $50 units or multiples. The United States may redeem them any time after three years and must pay them in full five years after issue. They earn interest up to 3% per year, paid twice a year, and both principal and interest are payable in U.S. gold coins. The Treasury may sell them at no less than face value, give all U.S. citizens an equal chance to buy, and pay no sales commission. The total issued cannot exceed the advances to the fund and cannot be more than $20,000,000. The certificates are exempt from federal, state, and local taxes. Up to one-tenth of 1% of the amount issued is available from the Treasury to cover preparation, advertising, and issuance costs.