Title 31, Money and FinanceRelease 119-102
§3714 Keeping Money Due States in Default
Title 31 › SUBTITLE III — FINANCIAL MANAGEMENT › CHAPTER 37 — CLAIMS › SUBCHAPTER II — CLAIMS OF THE UNITED STATES GOVERNMENT › § 3714
Summary
Treasury must hold money to cover amounts owed a State if it defaults on principal or interest of State-backed securities in trust, and repay, with interest, advances for interest.
Full Legal Text
Title 31, §3714
Money and Finance, Source: USLM XML via OLRC
The Secretary of the Treasury shall keep the necessary amount of money the United States Government owes a State when the State defaults in paying principal or interest on investments in stocks or bonds the State issues or guarantees and that the Government holds in trust. The money shall be used to pay the principal or interest or reimburse, with interest, money the Government advanced for interest due on the stocks or bonds.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 371431:207.R.S. § 3481. The word “amount” is substituted for “whole, or so much thereof” for clarity. The word “owes” is substituted for “due on any account from the . . . to” to eliminate unnecessary words. The words “or either” and “thereon” are omitted as surplus.
Reference
Citations & Metadata
Citation
31 U.S.C. § 3714
Title 31, Money and Finance
Last Updated
Aug 21, 2026
Release point: 119-102