Title 43 — Public LandsRelease 119-73not60

§398 Sales of Government Certificates to Obtain Funds for Advances

Title 43 › Chapter 12— RECLAMATION AND IRRIGATION OF LANDS BY FEDERAL GOVERNMENT › Subchapter II— RECLAMATION FUND GENERALLY › § 398

Last updated Apr 5, 2026|Official source

Summary

The Secretary of the Treasury can sell U.S. debt certificates to raise money for advances to the reclamation fund. The certificates come in $50 units (or multiples), must be sold for at least face value, and the Treasury can choose to redeem them any time after three years. They are due five years after issue and pay interest up to 3 percent per year, paid twice a year. Both principal and interest are payable in United States gold coin. The Secretary sets the form and rules and must give all U.S. citizens an equal chance to buy them. No sales commission is allowed. The total issued cannot exceed the advances to the reclamation fund and cannot be more than $20,000,000. The certificates are free from federal, state, and local taxes, and up to one‑tenth of 1 percent (0.1%) of the amount issued is available from the Treasury to cover preparation, advertising, and issuance costs.

Full Legal Text

Title 43, §398

Public Lands — Source: USLM XML via OLRC

For the purpose of providing the Treasury with funds for the advances to the reclamation fund, provided for in section 397 of this title, the Secretary of the Treasury is authorized to issue certificates of indebtedness of the United States in such form as he may prescribe and in denominations of $50, or multiples of that sum; said certificates to be redeemable at the option of the United States at any time after three years from the date of their issue and to be payable five years after such date, and to bear interest, payable semiannually, at not exceeding 3 per centum per annum; the principal and interest to be payable in gold coin of the United States. The certificates of indebtedness herein authorized may be disposed of by the Secretary of the Treasury at not less than par, under such rules and regulations as he may prescribe, giving all citizens of the United States an equal opportunity to subscribe therefor, but no commission shall be allowed and the aggregate issue of such certificates shall not exceed the amount of all advances made to said reclamation fund, and in no event shall the same exceed the sum of $20,000,000. The certificates of indebtedness herein authorized shall be exempt from taxes or duties of the United States as well as from taxation in any form by or under State, municipal, or local authority; and a sum not exceeding one-tenth of 1 per centum of the amount of the certificates of indebtedness issued under this section is appropriated, out of any money in the Treasury not otherwise appropriated, to pay the expense of preparing, advertising, and issuing the same.

Reference

Citations & Metadata

Citation

43 U.S.C. § 398

Title 43 — Public Lands

Last Updated

Apr 5, 2026

Release point: 119-73not60