Page:United States Statutes at Large Volume 49 Part 1.djvu/667

 622 74TH CONGRESS. SESS. I. CH. 531 . AUGUST 14, 1935. Operation of State OPERATION OF ST ATE PLANS plans. Payments not co m- when State not SEC. 4. In the case of any State plan for,old-age assistance which plying with approved has been approved by the Board, if the Board, after reasonable plan; notice and hear- ing. notice and opportunity for hearing to the State agency administering or supervising the administration of such plan, finds- (1) that the plan has been so changed as to impose any age, residence, or citizenship requirement prohibited by section 2 (b), or that in the administration of the plan any such prohibited requirement is imposed, with the knowledge of such State agency, in a substantial number of cases ; or (2) that in the administration of the plan there is a failure to comply substantially with any provision required by section 2 (a) to be included in the plan ; the Board shall notify such State agency that further payments will not be made to the State until the Board is satisfied that such pro- hibited requirement is no longer so imposed, and that there is no longer any such failure to comply. Until it is so satisfied it shall make no further certification to the Secretary of the Treasury with respect to such State. ADMINISTRATION SEC. 5. There is hereby authorized to be appropriated for the fiscal year ending June 30, 1936, the slim of $250,000, for all necessary expenses of the Board in administering the provisions of this title. Ante, p. 620. Administration. Appropriation au - thorized for Board ex- penses. Post, p. 1118. Defini tion. "Old-a ge assi stance ." DEFINITION SEC. 6. When used in this title the term " old-age assistance " means money payments to aged individuals. Title It-Federal old- TITLE II-FEDERAL OLD-AGE BENEFITS age benefits. OLD-AGE RESERVE ACCOUNT SECTION 201. (a) There is hereby created an account in the Treas- ury of the United States to be known as the "Old-Age Reserve Annual appr opria- Account" hereinafter in this title called the "Account". T h e r e i s ti Past, p. 1635. hereby authorized to be appropriated to the Account for each fiscal Determination of year, beginning with the fiscal year ending June 30, 1937, an amount amount. a s an annual premium to provide for the payments requied Sufficientr under this title, such amount to be determined on a reserve basis in accordance with accepted actuarial principles, and based upon such tab les of mor tality as the Secret ary of the Treasury shall from time to time adopt, and upon an interest rate of 3 per centum per annum of compounded annually. The Secretary of the Treasury shall submit annually to the Bureau of the Budget an estimate of the appropri- ations to be made to the Account. Investment o f (b) It shall be the duty of the Secretary of the Treasury to invest amounts credited to Account. such portion of the amounts credited to the Account as is not, in his judgment, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States or in o bligat ions guaran teed as to both princi pal a nd in terest by the United States. For such purpose such obligations may be acq uired (1) on origina l issue at par, or ( 2) by purc hase of ou tstand- ing obligations at the market price. The purposes for which obli- gations of the United States may be issued under the Second Liberty Bond Act, as amended, are hereby extended to authorize the issuance at par of special obligations exclusively to the Account. Such special obligations shall bear interest at the rate of 3 per centum per "Old-Age Res erve Account ", created. An nual es tima te appropriation. Acquisition of Uni ted States obligations. Second Liberty Bond Act. Vol. 40, p. 503;Ante, p.20;Post,p.699;U.S. C.,p. 1419. Special obligations ; interest rate.