PRIA, Government Policy, Made Personal

Summary

The Treasury Secretary can sell foreign government obligations that were acquired under the First Liberty Bond Act (matured before June 16, 1947), the Second Liberty Bond Act (matured before October 16, 1938), or section 7(a) of the Victory Liberty Loan Act, but only if the President agrees. The Secretary can also set the rules and timing for getting payments on those obligations. Any sale must bring in at least the original purchase price plus any interest that has built up. The money from sales and payments must be used to pay off or buy U.S. Government bonds issued under this chapter for no more than face value plus accrued interest. If those bonds cannot be bought or paid off, the money must be used to buy or pay other outstanding interest-bearing government debt that can be redeemed or bought for no more than face value plus accrued interest.

Title 31, §3110

Money and Finance, Source: USLM XML via OLRC

(a)With the approval of the President, the Secretary of the Treasury may sell obligations of the government of a foreign country when the obligations were acquired under—

(1)the First Liberty Bond Act and matured before June 16, 1947;

(2)the Second Liberty Bond Act and matured before October 16, 1938; or

(3)section 7(a) of the Victory Liberty Loan Act.

(b)The Secretary may prescribe the conditions and frequency for receiving payment under obligations of a government of a foreign country acquired under the laws referred to in subsection (a) of this section. A sale of an obligation acquired under those Acts shall at least equal the purchase price and accrued interest. The proceeds of obligations sold under this section and payments received from governments on the principal of their obligations shall be used to redeem or buy (for not more than par value and accrued interest) bonds of the United States Government issued under this chapter. If those bonds cannot be redeemed or bought, the Secretary shall redeem or buy other outstanding interest-bearing obligations of the Government that are subject to redemption or which can be bought at not more than par value and accrued interest.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 311031:801.Sept. 24, 1917, ch. 56, § 3, 40 Stat. 289. 31:802, 803.Mar. 3, 1919, ch. 100, §§ 7(b), 8, 40 Stat. 1312, 1313. 31:804.Apr. 24, 1917, ch. 4, § 3, 40 Stat. 35. In the section, the words “government of a foreign country” are substituted for “foreign governments” for consistency in the revised title and with other titles of the United States Code. In subsection (a), the text of 31:801 and 802 (related to converting certain obligations of foreign governments into obligations bearing a higher rate of interest or with a longer term to maturity) is omitted as executed. In subsection (b), the text of 31:804 is omitted as unnecessary. The word “conditions” is substituted for “terms and conditions” because it is inclusive. The words “unless otherwise hereafter provided by law” are omitted as surplus.

Editorial Notes

References in Text

The First Liberty Bond Act, referred to in subsec. (a)(1), is act Apr. 24, 1917, ch. 4, 40 Stat. 35, which enacted section 746, 755, 755a, 759, 764, 774, and 804 of former Title 31 and section 462a of Title 12, Banks and Banking, and amended section 745 and 768 of former Title 31, and was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1072. The Second Liberty Bond Act, referred to in subsec. (a)(2), is act Sept. 24, 1917, ch. 56, 40 Stat. 288, which enacted section 747, 752 to 754b, 757, 757b, 757c to 757e, 758, 760, 765, 766, 771, 773, and 801 and amended section 745, 764, 769, and 774 of former Title 31, and was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1072. section 7(a) of the Victory Liberty Loan Act, referred to in subsec. (a)(3), is section 7(a) of act Mar. 3, 1919, ch. 100, 40 Stat. 1309, and was repealed by Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1072.

§3110 Sale of Obligations of Governments of Foreign Countries