§664 Issuance of obligations to Secretary of the Treasury

Summary

The Secretary may issue notes or other obligations to the Secretary of the Treasury in the forms, amounts, maturities, and with the terms the Secretary decides and the Treasury Secretary approves. The Treasury Secretary sets the interest rate by looking at the average market yield on similar U.S. marketable securities during the month before the notes are issued. The Treasury must buy those notes and may use proceeds from selling securities under chapter 31 of title 31 to do so. The Treasury can later sell, redeem, or repurchase them, and those actions count as public debt transactions. Money may be appropriated to pay the principal and interest. A guarantee made under this chapter cannot be ended except as allowed under section 662(d). That guarantee is proof it follows the chapter and that the certificate terms are approved and legal. A holder’s rights under a guaranteed certificate are valid and can’t be attacked, except if the holder committed fraud or made a material misrepresentation. The Attorney General must take steps to protect the United States’ rights when the government pays money or incurs expenses because of these guarantees.