Page:United States Statutes at Large Volume 100 Part 3.djvu/124

 100 STAT. 1932

31 USC 3101 et
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Public debt limit.

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Securities. Public debt limit.

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Ante, p. 516. ' ^

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PUBLIC LAW 99-509—OCT. 21, 1986

"(3) Upon expiration of the debt issuance suspension period, the Secretary of the Treasury shall immediately issue to the Fund obligations under chapter 31 of title 31 that (notwithstanding subsection (d) of this section) bear such interest rates and maturity dates as are necessary to ensure that, after such obligations are issued, the holdings of the Fund will replicate to the maximum extent practicable the obligations that would then be held by the Fund if the suspension of investment under paragraph (1) of this subsection, and any redemption or disinvestment under subsection (k) of this section for the purpose described in such paragraph, during such period had not occurred. "(4) On the first normal interest payment date after the expiration of any debt issuance suspension period, the Secretary of the Treasury shall pay to the Fund, from amounts in the general fund of the Treasury of the United States not otherwise appropriated, an amount determined by the Secretary to be equal to the excess of"(A) the net amount of interest that would have been earned by the Fund during such debt issuance suspension period if— "(i) amounts in the Fund that were not invested during such debt issuance suspension period solely by reason of the } public debt limit had been invested, and < "(ii) redemptions and disinvestments with respect to the nt: Fund which occurred during such debt issuance suspension period solely by reason of the public debt limit had not -m occurred, over "(B) the net amount of interest actually earned by the Fund during such debt issuance suspension period. "(5) For purposes of this subsection and subsections (k) and (1) of this section— ^. "(A) the term 'public debt limit' means the limitation imposed by section 3101(b) of title 31; and "(B) the term 'debt issuance suspension period' means any period for which the Secretary of the Treasury determines for purposes of this subsection that the issuance of obligations of the United States may not be made without exceeding the public debt limit.". (b) SALES AND REDEMPTIONS BY THE FUND.—Section 8348 of title 5, United States Code, as amended by subsection (a), is further amended by adding at the end the following new subsection: "(k)(1) Subject to paragraph (2) of this subsection, the Secretary of the Treasury may sell or redeem securities, obligations, or other invested assets of the Fund before maturity in order to prevent the public debt of the United States from exceeding the public debt limit. "(2) The Secretary may sell or redeem securities, obligations, or other invested assets of the Fund under paragraph (1) of this subsection only during a debt issuance suspension period, and only to the extent necessary to obtain any amount of funds not exceeding the amount equal to the total amount of the payments authorized to be made from the Fund under the provisions of this subchapter or chapter 84 of this title or related provisions of law during such period. A sale or redemption may be made under this subsection even if, before the sale or redemption, there is a sufficient amount in the Fund to ensure that such payments are made in a timely manner.". (c)

REPORTS REGARDING THE OPERATION AND STATUS OF THE

FUND.—Section 8348 of title 5, United States Code, as amended by

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