Page:United States Statutes at Large Volume 50 Part 1.djvu/923

 898 Issuance of obliga- tions. Tax exemption. Guarantee by United States. Deemed lawful in' vestments; security. Purchase, sale, etc. 40 Stat. 288. Ma rke ting. Depo sit:. Depositories, etc. Authority as finan- cial agent of Govern- ment. Limitation on ex- penditure in any one state. 75 TH CONG RES S, 1ST SESSION-CH. 896-SEPTEMBER 1, 1 937 SEC. 20. (a) The Authority is authoriz ed to issue obligations, in the form of notes, bonds, or otherwise, which it may sell to obtain funds f or the purp oses o f thi s Act. The Authority may issue such obliga- tions in an amount not to exceed $100,000,000 on or after the date of enactment of this Act, an additional amount not to exceed $200,000,000 on or after July 1, 1938, and an additional amount not to exceed $200,000,000 on or after July 1, 1939. Such obligations shall be in such forms and denominations, mature within such periods not exceeding sixty years from date of issue, bear such rates of interest not exceeding 4 per centum per annum, be subject to such terms and conditions, and be issued in such manner and sold at such prices as may be prescribed by the Authority, with the approval of the Secretary of the Treasury. (b) Such obligations shall be exempt, both as to principal and interest, from all taxation (except surtaxes, estate, inheritance, and gift taxes) now or hereafter imposed by the United States or by any State, county, municipality, or local taxing authority. (c) Such obligations shall be fully and unconditionally guara n- teed upon their face by the United States as to the payment of both interest and principal, and, in the event that the Authority shall be unable to make any such payment upon demand when due, payments shall be made to the holder by the Secretary of the Treasury with money hereby authorized to be appropriated for such purpose out of any money in the Treasury not otherwise appropriated. To the extent of such payment the Secretary of the Treasury shall succeed to all the rights of the holder. (d) Such obli gations sh all be la wful inves tments and may be accepted as security for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or agency thereof. The Secretary of the Treasury is likewise authorized to purchase any such obliga- tions, and for such purchases he may use as a public-debt transaction the proceeds from the sale of any securities hereafter issued 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 such purchases. The Secretary of the Treas- ury may at any time sell any of the obligations acquired by him pursuant to this section, and all redemptions, purch and sale s by him of such obligations shall be treated as public-debt tas es, ransa ction s of the United States. (e) Such obligations may be marketed for the Authority at its request by the Secretary of the Treasury, utilizing all the facilities of the Treasury Department now authorized by law for the marketing of obligations of the United States. SEc. 21 . (a) Any money of the Authority not otherwise employed m ay be depos ited, subje ct to check, wit h the Treas urer of the Unit ed States or in any Federal Reserve bank, or may be invested in obliga- tions of the United States or used in the purchase or retirement or r edempt ion o f any oblig ation s issu ed by the Author ity. (b) The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for the Authority in the general exercise of its powers, and the Authority may reimburse any such bank for its services in such manner as may be agreed upon. (c) The Authority may be employed as a financial agent of the Government. When designated by the Secretary of the Treasury, and subject to such regulations as he may prescribe, the Authority shall be a depository of public money, except receipts from customs. (d) Not more than 10 per centum of the funds provided for in this Act, either in the form of a loan, grant, or annual contribution, shall be expended within any one State.