§985 — Title 33 Navigation and Navigable Waters | U.S. Code

Summary

The Corporation can sell revenue bonds backed by its own income to the Secretary of the Treasury to pay for its work. The total face value of those bonds cannot be more than $140,000,000. No more than 50% of the bonds can be sold in any one year. How long the bonds run is agreed with the Secretary, up to 50 years. The Corporation can pay bonds off early if the bond terms allow, but it may not refinance bonds it redeems. The Secretary must buy these bonds and may use money from selling certain government securities under chapter 31 of title 31 to do so. Effective October 21, 1970, those bonds do not earn interest, and any unpaid interest that had already built up on them is canceled.

Title 33, §985

Navigation and Navigable Waters — Source: USLM XML via OLRC

(a)To finance its activities, the Corporation may issue revenue bonds payable from corporate revenue to the Secretary of the Treasury. The total face value of all bonds so issued shall not be greater than $140,000,000. Not more than fifty per centum of the bonds may be issued during any one year. Such obligations shall have maturities agreed upon by the Corporation and the Secretary of the Treasury, not in excess of fifty years. Such obligations may be redeemable at the option of the Corporation before maturity in such manner as may be stipulated in such obligations, but the obligations thus redeemed shall not be refinanced by the Corporation. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Corporation to be issued hereunder and for such purpose the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under chapter 31 of title 31 are extended to include any purchases of the Corporation’s obligations hereunder.

(b)Effective as of October 21, 1970, the obligations of the Corporation incurred under subsection (a) of this section shall bear no interest, and the obligation of the Corporation to pay the unpaid interest which has accrued on such obligations is terminated.

Notes & Related Subsidiaries

Editorial Notes

Codification In subsec. (a), “chapter 31 of title 31” substituted for “the Second Liberty Bond Act, as amended” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments

1970—Subsec. (a). Pub. L. 91–469, § 43(a)(1), designated existing provisions as subsec. (a) and struck out fourth, fifth, and eighth sentences which provided for deferral, with approval of Secretary of the Treasury, of interest payments on bonds but required interest payments so deferred to bear interest after June 30, 1960; prohibited charging of deferred interest against debt limitation of $140,000,000; and prescribed for each obligation a rate of interest determined by the Secretary, taking into consideration the current average rate on current marketable obligations of the United States of comparable maturities as of the last day of the month preceding the issuance of the obligation of the Corporation. Subsec. (b). Pub. L. 91–469, § 43(a)(2), added subsec. (b). 1957—Pub. L. 85–108 increased Corporation’s borrowing authority from $105,000,000 to $140,000,000; omitted first year bond issue limitation, and raised limits of bond issues for any year from 40 to 50 per centum of total borrowing power; and authorized deferment of interest payments on borrowings, excluding such deferred interest charges from the debt limitation of $140,000,000.

§985 Bonds; Issuance; Maturity; Redemption; Interest; Purchase of Obligations by Secretary of the Treasury

Summary

Title 33, §985

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata