
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3102]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                         CHAPTER 31--PUBLIC DEBT
 
                    SUBCHAPTER I--BORROWING AUTHORITY
 
Sec. 3102. Bonds

    (a) With the approval of the President, the Secretary of the 
Treasury may borrow on the credit of the United States Government 
amounts necessary for expenditures authorized by law and may issue bonds 
of the Government for the amounts borrowed and may buy, redeem, and make 
refunds under section 3111 of this title. The Secretary may issue bonds 
authorized by this section to the public and to Government accounts at 
any annual interest rate and prescribe conditions under section 3121 of 
this title.
    (b) The Secretary shall offer the bonds authorized under this 
section first as a popular loan under regulations of the Secretary that 
allow the people of the United States as nearly as possible an equal 
opportunity to participate in subscribing to the offered bonds. However, 
the bonds may be offered in a way other than as a popular loan when the 
Secretary decides the other way is in the public interest.
    (c)(1) When the Secretary decides it is in the public interest in 
making a bond offering under this section, the Secretary may--
        (A) make full allotments on receiving applications for smaller 
    amounts of bonds to subscribers applying before the closing date the 
    Secretary sets for filing applications;
        (B) reject or reduce allotments on receiving applications filed 
    after the closing date or for larger amounts;
        (C) reject or reduce allotments on receiving applications from 
    incorporated banks and trust companies for their own account and 
    make full allotments or increase allotments to other subscribers; 
    and
        (D) prescribe a graduated scale of allotments.

    (2) The Secretary shall prescribe regulations applying to all 
popular loan subscribers similarly situated governing a reduction or 
increase of an allotment under paragraph (1) of this subsection.
    (d) The Secretary may make special arrangements for subscriptions 
from members of the armed forces. However, bonds issued to those members 
must be the same as other bonds of the same issue.
    (e) The Secretary may dispose of any part of a bond offering not 
taken and may prescribe the price and way of disposition.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 938; Pub. L. 97-452, 
Sec. 1(5), Jan. 12, 1983, 96 Stat. 2467; Pub. L. 98-34, Sec. 2, May 26, 
1983, 97 Stat. 196; Pub. L. 98-302, Sec. 2, May 25, 1984, 98 Stat. 217; 
Pub. L. 99-272, title XIII, Sec. 13212, Apr. 7, 1986, 100 Stat. 325; 
Pub. L. 100-203, title IX, Sec. 9403, Dec. 22, 1987, 101 Stat. 1330-377; 
Pub. L. 100-647, title VI, Sec. 6301, Nov. 10, 1988, 102 Stat. 3755.)

                                          Historical and Revision Notes
                                                    1982 Act
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
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---------------------------------
3102(a)..............................  31:752(1st par.).               Sept. 24
, 1917, ch. 56, Sec.  1(1st
                                                                        par.), 
40 Stat. 288; restated Apr. 4,
                                                                        1918, c
h. 44, Sec.  1, 40 Stat. 502;
                                                                        July 9,
 1918, ch. 142, Sec.  1, 40 Stat.
                                                                        844; Ma
r. 3, 1931, ch. 433, 46 Stat.
                                                                        1506; F
eb. 4, 1935, ch. 5, Sec.  1, 49
                                                                        Stat. 2
0; May 26, 1938, ch. 285, Sec.
                                                                        1, 52 S
tat. 447.
                                       31:752(2d par. less form of     Sept. 24
, 1917, ch. 56, Sec.  1(2d par.
                                        bonds).                         less fo
rm of bonds), 40 Stat. 288;
                                                                        restate
d Apr. 4, 1918, ch. 44, Sec.  1,
                                                                        40 Stat
. 502; Mar. 17, 1971, Pub. L. 92-
                                                                        5, Sec.
  3, 85 Stat. 5; July 1, 1973,
                                                                        Pub. L.
 93-53, Sec.  2, 87 Stat. 135;
                                                                        Mar. 15
, 1976, Pub. L. 94-232, Sec.
                                                                        3(a), 9
0 Stat. 217; June 30, 1976, Pub.
                                                                        L. 94-3
34, Sec.  2, 90 Stat. 793; Oct.
                                                                        4, 1977
, Pub. L. 95-120, Sec.  3, 91
                                                                        Stat. 1
090; Aug. 3, 1978, Pub. L. 95-
                                                                        333, Se
c.  3, 92 Stat. 419; Apr. 2,
                                                                        1979, P
ub. L. 96-5, Sec.  3, 93 Stat. 8;
                                                                        Sept. 2
9, 1979, Pub. L. 96-78, Sec.
                                                                        102, 93
 Stat. 589; Oct. 3, 1980, Pub. L.
                                                                        96-377,
 Sec.  2, 94 Stat. 1512.
3102(b)..............................  31:752(3d par. 1st sentence     Sept. 24
, 1917, ch. 56, Sec.  1(3d par.),
                                        words before 4th comma).        40 Stat
. 288; restated Apr. 4, 1918, ch.
                                                                        44, Sec
.  1, 40 Stat. 502.
                                       31:752(4th par. related to a    Sept. 24
, 1917, ch. 56, 40 Stat. 288,
                                        popular loan).                  Sec.  1
(4th par.); added Jan. 30, 1934,
                                                                        ch. 6, 
Sec.  14(a)(1), 48 Stat. 343.
3102(c)(1)...........................  31:752(3d par. 1st sentence
                                        words between 4th comma and
                                        proviso), (4th par. related
                                        to allotments).
3102(c)(2)...........................  31:752(3d par. 1st sentence
                                        proviso).
3102(d)..............................  31:752(3d par. last sentence).
3102(e)..............................  31:752(3d par. 2d sentence).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the word ``amounts'' is substituted for ``sum or 
sums'' for consistency. The words ``as in his judgment may be'' are 
omitted as surplus. The words ``for expenditures authorized by law'' are 
substituted for ``for the purposes of this Act . . . and to meet 
expenditures authorized for the national security and defense and other 
public purposes authorized by law'' because they are inclusive and for 
consistency. The words ``under section 3111 of this title'' are 
substituted for ``at or before maturity, of any outstanding bonds, 
notes, certificates of indebtedness, or Treasury bills of the United 
States'' because of the restatement. The words ``prescribe conditions 
under section 3121 of this title'' are substituted for the text of 
31:752(2d par. 1st sentence less form of bonds, 2d sentence) because of 
the restatement. The words ``at any annual interest rate'' are added for 
clarity and to more precisely define the 4.25 percent limitation. The 
words ``bonds may not be issued under this section to the public, or 
sold by a Government account to the public, with a rate of interest 
exceeding 4\1/4\ per centum per annum in an amount which would cause'' 
are omitted as surplus.
    In subsections (b), (d), and (e), the words ``not less than par'' 
are omitted as superseded by section 3 of the Public Debt Act of 1942 
(ch. 205, 56 Stat. 189), restated in section 3121 of the revised title.
    In subsection (b), the words ``under regulations of the Secretary 
that allow'' are substituted for ``under such regulations, prescribed by 
the Secretary of the Treasury from time to time, as will in his opinion 
give'' to eliminate unnecessary words. The words ``subscribing to the 
offered bonds'' are substituted for ``therein'' for clarity. The words 
``However . . . when the Secretary decides the other way is in the 
public interest'' are substituted for ``Notwithstanding the provisions 
of the foregoing paragraph, the Secretary of the Treasury may from time 
to time, when he deems it to be in the public interest'' to eliminate 
unnecessary words.
    In subsection (c)(1), before clause (A), the words ``and may from 
time to time adopt any or all of said methods, should any such action'' 
in 31:752(3d par. 1st sentence words between 4th comma and proviso) are 
omitted because of the restatement. The word ``decides'' is substituted 
for ``deemed'' in 31:752(3d par. 1st sentence words between 4th comma 
and proviso) and ``deems'' in 31:752a(4th par. related to allotments) 
for consistency. The words ``in making a bond offering under this 
section'' are added for clarity.
    In subsection (c)(2), the word ``regulations'' is substituted for 
``general rules'' for consistency in the revised title and with other 
titles of the United States Code.
    In subsection (d), the words ``members of armed forces'' are 
substituted for ``persons in the military or naval forces of the United 
States'' for clarity and consistency with title 10.

                                                    1983 Act
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3102(a)..............................  31 App.:752(2d par. less form   Sept. 3,
 1982, Pub. L. 97-248, Sec.
                                        of bonds).                      289(c),
 96 Stat. 572.
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---------------------------------

                               Amendments

    1988--Subsec. (a). Pub. L. 100-647 struck out at end: ``However, the 
face amount of bonds issued under this section and held by the public 
with interest rates of more than 4.25 percent a year may not be more 
than $270,000,000,000.''
    1987--Subsec. (a). Pub. L. 100-203 substituted ``$270,000,000,000'' 
for ``$250,000,000,000''.
    1986--Subsec. (a). Pub. L. 99-272 substituted ``$250,000,000,000'' 
for ``$200,000,000,000''.
    1984--Subsec. (a). Pub. L. 98-302 substituted ``$200,000,000,000'' 
for ``$150,000,000,000''.
    1983--Subsec. (a). Pub. L. 98-34 substituted ``$150,000,000,000'' 
for ``$110,000,000,000''.
    Pub. L. 97-452 substituted ``$110,000,000,000'' for 
``$70,000,000,000''.

                  Section Referred to in Other Sections

    This section is referred to in sections 3108, 3121, 3123 of this 
title; title 29 section 213; title 45 sections 231f, 231n.
