Page:United States Statutes at Large Volume 70.djvu/1140

 1084

PUBLIC LAW 1016-AUG. 7, 1956

[70

ST A T.

be deposited amounts accruing t.o the United States in connection with loan contract transactions. Investments. (c) Moneys in each of the funds may be invested in obligations of the United States or in obligations guaranteed as to principal and interest by the United States. Such obligations may be sold and the proceeds derived therefrom may be reinvested as above provided if deemed advisable by the Administrator. Income from such investment or reinvestment shall be deposited in the respective fund from which the investment was made. S a l v a g e p ro(d) All salvage proceeds realized by the Administrator in connecceeds. tion with insurance made available under this Act shall be deposited in the Disaster Insurance F u n d; and all salvage proceeds realized by the Administrator in connection with reinsurance made available under this Act shall be deposited in the Disaster Reinsurance Fund. I s s u a n c e of (e) The Administrator is authorized to issue to the Secretary of the notes. Treasury from time to time and have outstanding at any one time, in an amount not exceeding $500,000,000 (or such greater amount as may be approved by the President) notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions as may be prescribed by the Administrator, with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average rate on outstanding marketable obligations of the United States of comparable maturities as of the last day of the month preceding the issuance of such notes or other obligations. The Secretary of the Treasury is authorized and directed to purchase any notes and other obligations to be issued hereunder and for such purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as amended, and the pur40 Stat. 288. 31 USC 774. poses for which securities may be issued under such Act, as amended, are extended to include any purchases of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this section. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. Funds borrowed under this section shall be deposited, in such proportions as the Administrator deems advisable, in the Disaster Insurance Fund, the Disaster Reinsurance Fund, and the Disaster Loan Fund. Use of money s i n (f) Moneys in the Disaster Insurance Fund, the Disaster ReinsurFunds. ance Fund, and the Disaster Loan Fund may be used for the following purposes as deemed necessary by the Administrator: (1) To pay from the Disaster Insurance Fund proved and approved claims for loss under, and other nonadministrative expenses arising in connection with, insurance policies issued by the Administrator under this Act; (2) To pay from the Disaster Reinsurance Fund proved and approved claims under, and other nonadministrative expenses arising in connection with, reinsurance agreements entered into by the Administrator under this Act; (3) To pay from the Disaster Loan Fund the amounts of loans made by the Administrator, amounts in payment of guarantees, and other nonadministrative expenses in connection with direct and guaranteed loans under this Act; and (4) To repay to the Secretary of the Treasury sums borrowed from him in accordance with the provisions of subsection (e) of this section. (g) All administrative expenses of the Federal Government under this Act shall be paid from funds appropriated by the Federal Government.

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