Page:United States Statutes at Large Volume 96 Part 1.djvu/982

 96 STAT. 940

PUBLIC LAW 97-258—SEPT. 13, 1982 § 3105. Savings bonds and savings certiflcates (a) With the approval of the President, the Secretary of the Treasury may issue savings bonds and savings certificates of the United States Government and may buy, redeem, and make refunds under section 3111 of this title. Proceeds from the bonds and certificates shall be used for expenditures authorized by law. Savings bonds and certificates may be issued on an interest-bearing basis, on a discount basis, or on an interest-bearing and discount basis. Savings bonds shall mature not more than 20 years from the date of issue. Savings certificates shall mature not more than 10 years from the date of issue. The difference between the price paid and the amount received on redeeming a savings bond or certificate is interest under the Internal Revenue Code of 1954 (26 U.S.C. 1 et seq.). (b)(1) Except as provided in paragraph (2) of this subsection, the interest rate on, and the issue price of, savings bonds and savings certificates and the conditions under which they may be redeemed may not give an investment yield of more than 5.5 percent a year compounded semiannually. The investment yield on a series E savings bond shall be at least 4 percent a year compounded semiannually beginning on the first day of the month beginning after the date of issuance of the bond and ending on the last day of the month before the date of redemption. (2) With the approval of the President, the Secretary may fix the investment yield for savings bonds at any percent a year compounded semiannually. However, the total of the increases in the yield that are effective for a 6-month period may not be more than one percent a year compounded semiannually. (3) With the approval of the President, the Secretary may prescribe regulations providing that owners of series E and H savings bonds may keep the bonds after maturity or after a period beyond maturity during which the bonds have earned interest and continue to earn interest at rates consistent with paragraph (1) of this subsection. However, series E and H savings bonds earning a higher rate of interest before the regulations are prescribed shall continue to earn a higher rate of interest consistent with paragraph (1). (c) The Secretary may prescribe for savings bonds and savings certificates issued under this section— (1) the form and amount of an issue and series; (2) the way in which they will be issued; (3) the conditions, including restrictions on transfer, to which they will be subject; (4) conditions governing their redemption; (5) their sales price and denominations (expressed in terms of the maturity value); (6) a way to evidence payments for or on account of them and to provide for the exchange of savings certificates for savings bonds; and (7) the maximum amount issued in a year that may be held by one person. (d) The Secretary may authorize financial institutions to make payments to redeem savings bonds and savings notes. A financial institution may be a paying agent only if the institution— (1) is incorporated under the laws of the United States, a State, the District of Columbia, or a territory or possession of the United States;

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