Page:United States Statutes at Large Volume 49 Part 1.djvu/1123

 1078 74TH CONGRESS. SESS. I. CH. 836. AUGUST 31, 1935. Vol.4s,p.67. SEa. 9. That said Act be and the same is hereby further amended by adding after section 15 of said Act a new section as follows gate issue ; aggre- " SEC . 15a . With the approval of the Secretary of the Treasury, the Corporation is authorized to issue bonds not to exceed in the aggregate $50,000,000 outstanding at any one time, which bonds may sale . be sold by the Corporation to obtain funds to carry out the pro- Forms and denomi- visions of section 7 of this amendatory Act . Such bonds shall be in nations. such forms and denominations, shall mature within such periods not Redempti on . more than fifty years from the date of their issue, may be redeemable at the option of the Corporation before maturity in such manner as interest rates. may be stipulated therein, shall bear such rates of interest not exceed- ing 31/2 per centum per annum, shall be subject to such terms and conditions, shall be issued in such manner and amount, and sold at such prices, as may be prescribed by the Corporation, with the Annum investment approval of the Secretary of the Treasury : Provided, That suc h yield. bonds shall not be sold a t such pri ces or on such terms as to aff ord an investment yield to the holders in excess of 31/2 per centum per Guaranty of int er est annum. Such bonds shall be fully and unconditionally guaranteed an d princi pal. both as to interest and principal by the United States, and such guar- anty shall be expressed on the face thereof, and such bonds shall be lawful investments, and may be accepted as security, for all fiduc iary, trus t, and pub lic funds, the inves tment or d eposit of which shall be under the authority or control of the United States or any Pay men ts by Secre- officer or officers thereof. In the e vent that t he Co rporat ion s hould tary of the Treasury. not pay upon demand, when due, the principal of, or interest on, such bonds, the Secretary, of the Treasury shall pay to the holder the amount thereof, which is hereby authorized to be appropriated out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such bonds. Purchases by. The Secretary of the Treasury, in his discretion, is authorized to purchase any bonds issued hereunder, and for such purpose the Sec- retary of the Treasury is authorized to use as a public-debt transac- tion the proceeds from the sale of any securities hereafter issued Ante, p.20. under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of the Corporation's bonds here- Sales by under. The Secretary of the Treasury may, at any time, sell any of the bonds of the Corporation acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treas- ury of the bonds of the Corporation shall be treated as public-debt Purchases by Corpo- transactions of the United States. With the approval of the Secre- ration. tary of the Treasury, the Corporation shall have power to purchase Approval of con- such bonds in the open market at any time and at any price, No Power by Fe der al Power Commission . bonds shall be issued hereunder to provide funds or bonds necessary for the performance of any proposed contract negotiated by the Corporation under the authority of section 7 of this amendatory Act until the proposed contract shall have been submitted to and consideration of pro. approved by the Federal Power Commission. When any such pro- posed contract s. posed contract shall have been submitted to the said Commission, the matter shall be given precedence and shall be in every way expedited Expiration of author- and the Commission's determination of the matter shall be final. The ity to issue bonds. authority of the Corporation to issue bonds hereunder shall expire at the end of five years from the date when this section as amended herein becomes law, except that such bonds may be issued at any time after the expiration of said period to provide bonds or funds necessary for the performance of any contract entered into by the Corporatio n, prior t o the expi ration of said perio d, under t he author- ity of section 7 of this amendatory Act ."