§398 Sales of Government Certificates to Obtain Funds for Advances

Summary

The Secretary of the Treasury can issue U.S. certificates of indebtedness to get money for advances to the reclamation fund. They must be in $50 amounts or multiples. The United States may redeem them any time after three years from issue, and they must be paid five years after issue. They may carry interest up to 3% per year, paid twice a year, and both principal and interest must be paid in U.S. gold coin. The Treasury may sell them at no less than face value under rules it makes and must give all U.S. citizens an equal chance to buy them. No commission is allowed. The total issued cannot exceed the advances made to the reclamation fund and cannot be more than $20,000,000. They are exempt from federal, state, and local taxes. Up to one-tenth of 1 percent of the amount issued is available from Treasury funds not already used to cover preparation, advertising, and issuance costs.