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

Summary

Allows the Treasury Secretary to invest part of the Treasury’s operating cash for up to 90 days. The investments can be short-term notes from banks that hold Treasury tax and loan accounts if those banks pledge acceptable collateral, U.S. Government securities, or repurchase agreements with approved counterparties. The Secretary does not have to invest money in any particular account. When setting interest rates for the bank notes, the Secretary must consider current market rates. Each year the Secretary must send a report to the House Ways and Means Committee and the Senate Committee on Finance about the prior fiscal year’s investments and how investment risks were managed.

Title 31, §323

Money and Finance — Source: USLM XML via OLRC

(a)To manage United States cash, the Secretary of the Treasury may invest any part of the operating cash of the Treasury for not more than 90 days. The Secretary may invest the operating cash of the Treasury in—

(1)obligations of depositories maintaining Treasury tax and loan accounts secured by pledged collateral acceptable to the Secretary;

(2)obligations of the United States Government; and

(3)repurchase agreements with parties acceptable to the Secretary.

(b)Subsection (a) of this section does not require the Secretary to invest a cash balance held in a particular account.

(c)The Secretary shall consider the prevailing market in prescribing rates of interest for investments under subsection (a)(1) of this section.

(d)(1)The Secretary of the Treasury shall submit each fiscal year to the appropriate committees a report detailing the investment of operating cash under subsection (a) for the preceding fiscal year. The report shall describe the Secretary’s consideration of risks associated with investments and the actions taken to manage such risks.

(2)For purposes of paragraph (1), the term “appropriate committees” means the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 323(a)31:1038(1st sentence less 1st, 2d provisos).Oct. 28, 1977, Pub. L. 95–147, § 1, 91 Stat. 1227. 323(b)31:1038(1st, 2d provisos). 323(c)31:1038(last sentence). In subsection (a), before clause (1), the words “To manage United States cash” are substituted for “for cash management purposes” for clarity. In clause (1), the words “as security for tax and loan accounts” are omitted as unnecessary. In clause (2), the words “agencies of the United States” are omitted as being included in “the Government”. In subsection (c), the words “Investments in obligations of depositaries maintaining such accounts” and “rates of interest” (the 2d time they appear) are omitted as unnecessary because of the restatement.

Editorial Notes

Amendments

2008—Pub. L. 110–351 amended section generally. Prior to amendment, section related to investment of operating cash.

§323 Investment of Operating Cash