
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: 7USC934]

 
                          TITLE 7--AGRICULTURE
 
         CHAPTER 31--RURAL ELECTRIFICATION AND TELEPHONE SERVICE
 
    SUBCHAPTER III--RURAL ELECTRIC AND TELEPHONE DIRECT LOAN PROGRAMS
 
Sec. 934. Authorized financial transactions; interim notes; 
        purchase of obligations for resale; sale of notes and 
        certificates; liens
        
    (a) The Secretary is authorized to make and issue interim notes to 
the Secretary of the Treasury for the purpose of obtaining funds 
necessary for discharging obligations of the fund and for making loans, 
advances and authorized expenditures out of the fund. Such notes shall 
be in such form and denominations and have such maturities and be 
subject to such terms and conditions as may be agreed upon by the 
Secretary and the Secretary of the Treasury. Such notes shall bear 
interest at a rate fixed by the Secretary of the Treasury, taking into 
consideration the current average market yield of outstanding marketable 
obligations of the United States having maturities comparable to the 
notes issued by the Secretary under this section. The Secretary of the 
Treasury is authorized and directed to purchase any notes of the 
Secretary issued hereunder, and, for that purpose, the Secretary of the 
Treasury is authorized to use as a public debt transaction the proceeds 
from the sale of any securities issued under chapter 31 of title 31, and 
the purposes for which such securities may be issued under such chapter 
are extended to include the purchase of notes issued by the Secretary. 
All redemptions, purchases, and sales by the Secretary of the Treasury 
of such notes shall be treated as public debt transactions of the United 
States: Provided, however, That such interim notes to the Secretary of 
the Treasury shall not be included in the totals of the budget of the 
United States Government and shall be exempt from any general limitation 
imposed by statute on expenditures and net lending (budget outlays) of 
the United States.
    (b) The Secretary of the Treasury is authorized and directed to 
purchase for resale obligations insured through the fund when offered by 
the Secretary. Such resales shall be upon such terms and conditions as 
the Secretary of the Treasury shall determine. Purchases and resales by 
the Secretary of the Treasury hereunder shall not be included in the 
totals of the budget of the United States Government and shall be exempt 
from any general limitation imposed by statute on expenditures and not 
lending (budget outlays) of the United States.
    (c) The Secretary may, on an insured basis or otherwise, sell and 
assign any notes in the fund or sell certificates of beneficial 
ownership therein to the Secretary of the Treasury or in the private 
market. Any sale by the Secretary of notes individually or in blocks 
shall be treated as a sale of assets for the purposes of chapter 11 of 
title 31, notwithstanding the fact that the Secretary, under an 
agreement with the purchaser or purchasers, holds the debt instruments 
evidencing the loans and holds or reinvests payments thereon as trustee 
and custodian for the purchaser or purchasers of the individual note or 
of the certificate of beneficial ownership in a number of such notes. 
Security instruments taken by the Secretary in connection with any notes 
in the fund may constitute liens running to the United States 
notwithstanding the fact that such notes may be thereafter held by 
purchasers thereof.

(May 20, 1936, ch. 432, title III, Sec. 304, as added Pub. L. 93-32, 
Sec. 2, May 11, 1973, 87 Stat. 67; amended Pub. L. 103-354, title II, 
Sec. 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.)

                          Codification

    In subsecs. (a) and (c), ``chapter 31 of title 31'', ``such 
chapter'', and ``chapter 11 of title 31'' substituted for ``the Second 
Liberty Bond Act, as amended'', ``such Act, as amended'', and ``the 
Budget and Accounting Act, 1921 [31 U.S.C. 1 et seq.]'', respectively, 
on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 Stat. 
1067, the first section of which enacted Title 31, Money and Finance.


                               Amendments

    1994--Pub. L. 103-354 substituted ``Secretary'' for 
``Administrator'' wherever appearing.


                             Effective Date

    Section effective May 11, 1973, see section 12 of Pub. L. 93-32, set 
out as a note under section 930 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 931, 932, 939 of this title.
