
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: 31USC3109]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                         CHAPTER 31--PUBLIC DEBT
 
                    SUBCHAPTER I--BORROWING AUTHORITY
 
Sec. 3109. Tax and loss bonds

    (a) The Secretary of the Treasury may issue tax and loss bonds of 
the United States Government and may buy, redeem, and make refunds under 
section 3111 of this title. The proceeds of the tax and loss bonds shall 
be used for expenditures authorized by law. Tax and loss bonds are 
nontransferrable except as provided by the Secretary, bear no interest, 
and shall be issued in amounts needed to allow persons to comply with 
section 832(e) of the Internal Revenue Code of 1986 (26 U.S.C. 832(e)). 
The Secretary may prescribe the amount of tax and loss bonds and the 
conditions under which the bonds will be issued as required by section 
832(e).
    (b) For a taxable year in which amounts are deducted from the 
mortgage guaranty account referred to in section 832(e)(3) of the 
Internal Revenue Code of 1986 (26 U.S.C. 832(e)(3)), an amount of tax 
and loss bonds bought under section 832(e)(2) of the Internal Revenue 
Code of 1986 (26 U.S.C. 832(e)(2)) shall be redeemed for the amount 
deducted from the account. The amount redeemed shall be applied as 
necessary to pay taxes due because of the inclusion under section 
832(b)(1)(E) of the Internal Revenue Code of 1986 (26 U.S.C. 
832(b)(1)(E)) of amounts in gross income. The Secretary also may 
prescribe additional ways to redeem the bonds.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 942; Pub. L. 99-514, Sec. 2, 
Oct. 22, 1986, 100 Stat. 2095.)

                                          Historical and Revision Notes
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---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
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---------------------------------
3109(a)..............................  31:757c-3(1st-3d sentences).    Sept. 24
, 1917, ch. 56, 40 Stat. 288,
                                                                        Sec.  2
6; added Jan. 2, 1968, Pub. L. 90-
                                                                        240, Se
c.  5(f), 81 Stat. 778.
3109(b)..............................  31:757c-3(4th, last
                                        sentences).
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---------------------------------

    In subsection (a), the words ``and may buy, redeem, and make refunds 
under section 3111 of this title'' are substituted for ``and to retire 
any outstanding obligations of the United States issued under this Act'' 
for consistency. The words ``subject to the limitations imposed by 
section 757b of this title'' are omitted as surplus. The word 
``conditions'' is substituted for ``terms and conditions'' because it is 
inclusive.


                               Amendments

    1986--Pub. L. 99-514 substituted ``Internal Revenue Code of 1986'' 
for ``Internal Revenue Code of 1954'' wherever appearing.
