Page:United States Statutes at Large Volume 96 Part 1.djvu/986

 96 STAT. 944

PUBLIC LAW 97-258—SEPT. 13, 1982 (c) The Secretary and the Administrator shall convert a gift either of them accepts under subsection (a)(l)(C) or (2) of this section to money on the best terms available. If a gift accepted under subsection (a) of this section is subject to a gift or inheritance tax, the Secretary or the Administrator may pay the tax out of the proceeds of the gift or the proceeds of the redemption or sale of the gift. (d) The Treasury has an account into which money received as gifts and proceeds from the sale or redemption of gifts under this section shall be deposited. The Secretary shall use the money in the account to pay at maturity, or to redeem or buy before maturity, an obligation of the Government included in the public debt. An obligation of the Government that is paid, redeemed, or bought with money from the account shall be canceled and retired and may not be reissued. Money deposited in the account is appropriated and may be expended to carry out this section. (e)(1) The Secretary shall redeem a direct obligation of the Government bearing interest or sold on a discount basis on receiving it when the obligation— (A) is given to the Government; (B) becomes the property of the Government under the conditions of a trust; or (C) is payable on the death of the owner to the Government (or to an officer of the Government in the officer's official capacity). (2) If the gift or transfer to the Government is subject to a gift or inheritance tax, the Secretary shall pay the tax out of the proceeds of redemption. SUBCHAPTER II—ADMINISTRATIVE §3121. Procedure (a) In issuing obligations under sections 3102-3104 of this title, the Secretary of the Treasury may prescribe— (1) whether an obligation is to be issued on an interest-bearing basis, a discount basis, or an interest-bearing and discount basis; (2) regulations on the conditions under which the obligation will be offered for sale, including whether it will be offered for sale on a competitive or other basis; (3) the offering price and interest rate; (4) the method of computing the interest rate; (5) the dates for paying principal and interest; (6) the form and denominations of the obligations; and (7) other conditions. (b)(1) Under conditions prescribed by the Secretary, an obligation issued under this chapter and redeemable on demand of the owner or holder may be used to pay the United States Government for taxes imposed by it. (2) An obligation of the Government issued after March 3, 1971, under law may not be redeemed before its maturity to pay a tax imposed by the Government in an amount more than the fair market value of the obligation at the time of its redemption. This paragraph does not apply to a Treasury bill issued under section 3104 of this title. (c) Under conditions prescribed by the Secretary, an obligation authorized by this chapter may be issued in exchange for an obliga-

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