Pub. Law 86-168

73 STAT. 389.

August 18, 1959

pay into the Treasury as miscellaneous receipts such portion of the cost of administration of the fund as is determined by the United States Civil Service Commission to be attributable to its employees.

"(g) Any Federal land bank, Federal intermediate credit bank, or bank for cooperatives may, subject to the approval of the Farm Credit Administration, establish a retirement system for its officers and employees either separately or jointly with any other corporation under the supervision of the Farm Credit Administration. În determining eligibility for or the amount of any benefit under any such retirement system, there shall not be taken into account any service which 5 USC 2251 note. is creditable under the Civil Service Retirement Act, as amended, but service which constitutes employment as defined in section 210 (a) of the Social Security Act, as amended (42 U.S.C., supp. IV, 410(a)), may be so taken into account notwithstanding section 115 of the Social Security Amendments of 1954 (42 U.S.C., supp. IV, 410, note) or any other provision of law.

60 Stat. 979; 72 Stat. 1035. 68 Stat. 1087.

70 Stat. 824.

59 Stat. 296.

"(n) Subsections (b), (c), (d), (e), (f), and (g) of this section shall apply to the Central Bank for Cooperatives and its personnel and the board of directors of the Central Bank for Cooperatives shall have all the authority and responsibility with respect to personnel of such central bank as is vested in the farm credit board of a district or the board of directors of a district bank for cooperatives with respect to personnel of any such district bank under subsection (a)(1) of this section."

SEC. 202. (a) Section 210(a) (6) (B)(ii) of title II of the Social Security Act, as amended (42 U.S.C., supp. IV, 410(a) (6) (B) (ii)), and section 3121(b) (6) (B) (ii) of the Internal Revenue Code of 1954, as amended (26 U.S.C., supp. IV, 3121(b)(6)(B)(ii)), are each amended by inserting "a Federal land bank, a Federal intermediate credit bank, a bank for cooperatives," immediately before the words "a national farm loan association" therein.

(b) Section 2680 of title 28, United States Code, is amended by adding at the end thereof the following new subsection: "(n) Any claim arising from the activities of a Federal land bank, a Federal intermediate credit bank, or a bank for cooperatives.".

(c) Section 102(b) of the Federal Employees Pay Act of 1945, as amended (5 U.S.C. 902(b)), is amended by striking out "and" immediately preceding "(6)" therein and by inserting before the period at the end thereof "; and (7) officers and employees of a Federal land bank, a Federal intermediate credit bank, or a bank for cooperatives". (d) Section 303 of the Government Employees' Incentive Awards 68 Stat. 1113. Act (5 U.S.C., supp. IV, 2122) is amended by inserting within the parentheses after the words "the Tennessee Valley Authority" the words "or the Central Bank for Cooperatives".

67 Stat. 138. 58 Stat. 845.

(e) Section 205 (e) of the Annual and Sick Leave Act of 1951, as added by section 4(b) of the Act of July 2, 1953 (5 U.S.C., supp. IV, 2064 (e)), and section 1 of the Act of December 21, 1944, as amended by section 4(a) of the Act of July 2, 1953 (5 U.S.C., supp. IV, 61b), are each amended by substituting “(C), (H), or (Í)” for “(C), or (H)" therein.

SEC. 203. (a) Nothing in this title shall be deemed to amend, alter, repeal, or restrict the application of (1) section 190 of the Revised Statutes (5 U.S.C. 99), relating to the prosecution of claims against the United States by former employees; (2) the Act of August 26, 64 Stat. 476. 1950 (5 U.S.C. 22-1, 22-2, 22-3), relating to the suspension and separation of employees for security reasons; (3) section 710(e) of the Defense Production Act of 1950, as amended (50 U.S.C., app., supp. 69 Stat. 583. IV, 2160 (e)), relating to the authority of the President to provide

August 18, 1959

Pub. Law 86-168
73 STAT. 390.

for an executive reserve training program; or (4) any Act of Congress the violation of which is punishable by a fine or imprisonment, or both. (b) Any Act of Congress enacted after the effective date of this title and which states that it shall be applicable to agencies or instrumentalities of the United States or to corporations controlled or owned, in whole or in part, by the United States, or to officers and employees of the United States or such agencies or instrumentalities or corporations, shall not be applicable to a Federal land bank, Federal intermediate credit bank, or bank for cooperatives, or to its directors, officers, or employees unless such Act specifically so provides by naming such banks.

(c) This title shall become effective January 1, 1960. Approved August 18, 1959.

Effective

date.

Public Law 86-284 86th Congress, H. R. 213 September 16, 1959

AN ACT

73 STAT. 566.

To provide additional time within which certain State agreements under section 218 of the Social Security Act may be modified to secure coverage for nonprofessional school district employees, and to permit the States of California, Kansas, North Dakota, and Vermont to obtain social security coverage, under State agreement, for policemen and firemen in positions covered by a retirement system.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 104(f) of the Social Security Amendments of 1956 is amended by striking out "prior to July 1, 1957," and inserting in lieu thereof "prior to January 1, 1962,".

Social Security. School employees, coverage.

70 Stat. 826. 42 USC 418

note.

SEC. 2. Subsection (p) of section 218 of the Social Security Act is amended by inserting "California," after "Alabama,"; "Kansas," after 42 USC 418. "Georgia,"; "North Dakota," after "North Carolina," and "Vermont," after "Tennessee,”.

per

SEC. 3. Notwithstanding the provisions of subsection (d) (5) (A) of section 218 of the Social Security Act and the references thereto in subsections (d)(1) and (d)(3) of such section 218, the agreement with the State of Oklahoma heretofore entered into pursuant to such section 218 may, at any time prior to 1962, be modified pursuant to subsection (c) (4) of such section 218 so as to apply to services formed by any individual employed by such State (or any political subdivision thereof) in any policeman's position covered by a retirement system in effect on the date of enactment of this Act if (1) in the case of an individual performing such services on such date, such individual is ineligible to become a member of such retirement system, or, in the case of an individual who prior to such date has ceased to perform such services, such individual was, on the last day he did perform such services, ineligible to become a member of such retirement system, and (2) such State has, prior to 1959, paid to the Secretary of the Treasury, with respect to any of the services performed by such individual in any such position, the sums prescribed pursuant to subsection (e) (1) of such section 218. Notwithstanding the provisions of subsection (f) of such section 218, such modification shall be effective with respect to (i) all services performed by such individual in any such position on or after the date of enactment of this Act, and (ii) all such services, performed before such date, with respect to which such State has paid to the Secretary of the Treasury the sums prescribed pursuant to subsection (e) of such section 218, at the time or times established pursuant to such subsection.

Approved September 16, 1959.

(404)

To permit the issuance of series E and H United States savings bonds at interest rates above the existing maximum, to permit the Secretary of the Treasury to designate certain exchanges of Government securities to be made without recognition of gain or loss, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I—IN GENERAL

SEC. 101. (a) The Second Liberty Bond Act, as amended, is amended by adding at the end thereof the following new section: "SEC. 25. In the case of any offering of United States savings bonds issued or to be issued under section 22 of this Act, the maximum limits on the interest rate or the investment yield or both may be exceeded upon a finding by the President with respect to such offering that the national interest requires that such maximum limits be exceeded: Provided, however, That in no event may the interest rate or the investment yield exceed 414 per centum per annum."

(b) Paragraph (2) of section 22(b) of the Second Liberty Bond 65 Stat. 26. Act, as amended (31 U.S.C., sec. 757c(b) (2)), is amended to read as follows:

"(2) The Secretary of the Treasury, with the approval of the President, is authorized to provide by regulations:

"(A) That owners of series E and H savings bonds may, at Retention of their option, retain the bonds after maturity, or after any period matured bonds. beyond maturity during which such bonds have earned interest, and continue to earn interest upon them at rates which (subject to section 25) are consistent with the provisions of paragraph (1). "(B) That series E and H savings bonds on which the rates of interest have been fixed prior to such regulations will earn interest at higher rates which (subject to section 25) are consistent with the provisions of paragraph (1)."

(c) The authority granted by the amendments made by subsections (a) and (b) may be exercised with respect to United States savings bonds bearing issue dates of June 1, 1959, or thereafter. Such authority may also be exercised with respect to United States savings bonds issued before June 1, 1959, but in no case shall the interest rate, or investment yield, on any bond be changed pursuant to such authority for any period which begins before June 1, 1959.

SEC. 102. The heading and first sentence of section 454 (c) of the 68A Stat. 156. Internal Revenue Code of 1954 (relating to matured United States

savings bonds) are amended to read as follows:

66

"(c) MATURED UNITED STATES SAVINGS BONDS.-In the case of a

taxpayer who

"(1) holds a series E United States savings bond at the date of maturity, and

"(2) pursuant to regulations prescribed under the Second

Liberty Bond Act (A) retains his investment in such series E 31 USC 774(2). bond in an obligation of the United States, other than a current income obligation, or (B) exchanges such series E bond for another nontransferable obligation of the United States in an exchange upon which gain or loss is not recognized because of

section 1037 (or so much of section 1031 as relates to section Post, p. 623. 1037),

the increase in redemption value (to the extent not previously includible in gross income) in excess of the amount paid for such series E

68A Stat. 302.

Paying agents. Relief from liability.

57 Stat. 63.

53 Stat. 1226.

70 Stat. 397.

23 USC 120 note. Tax exemption.

Repeals.

46 Stat. 19, 775.

40 Stat. 291, 1309.

55 Stat. 7.

Pub. Law 86-346
73 STAT. 622.

September 22, 1959

bond shall be includible in gross income in the taxable year in which the obligation is finally redeemed or in the taxable year of final maturity, whichever is earlier."

SEC. 103. Subsection (i) of section 22 of the Second Liberty Bond Act, as amended (31 U.S.C., sec. 757c(i)), is amended by inserting after the third sentence thereof the following: "Relief from liability shall be granted in all cases where the Secretary of the Treasury shall determine, under regulations prescribed by him, that written notice of liability or potential liability has not been given by the United States, within ten years from the date of the erroneous payment, to any of the foregoing agents or agencies whose liability is to be determined: Provided, That no relief shall be granted in any case in which a qualified paying agent has assumed unconditional liability to the United States."

SEC. 104. The following provisions of law are amended by striking out the words "on original issue at par" and inserting in lieu thereof the words "on original issue at the issue price":

(1) Section 6(g) (5) of the Act of March 24, 1934, as amended (22 U.S.C., sec. 1393 (g) (5)), relating to the trust account for the payment of pre-1934 bonds of the Government of the Philippines.

(2) Section 201 (d) of the Social Security Act (42 U.S.C., sec. 401(d)), relating to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

(3) Section 904(b) of the Social Security Act (42 U.S.C., sec. 1104(b)), relating to the Unemployment Trust Fund.

(4) Section 15 (b) of the Railroad Retirement Act of 1937 (45 U.S.C., sec. 2280 (b)), relating to the Railroad Retirement Account.

(5) Section 209 (e) (2) of the Highway Revenue Act of 1956 (23 U.S.C., sec. 173 (e) (2)), relating to the Highway Trust Fund. SEC. 105. (a) Section 3701 of the Revised Statutes (31 U.S.C., sec. 742) is amended by adding at the end thereof the following: "This exemption extends to every form of taxation that would require that either the obligations or the interest thereon, or both, be considered, directly or indirectly, in the computation of the tax, except nondiscriminatory franchise or other nonproperty taxes in lieu thereof imposed on corporations and except estate taxes or inheritance taxes." (b) The following provisions of the Second Liberty Bond Act, as amended, relating to the tax-exempt status of obligations of the United States, are repealed, without changing the status of any outstanding obligation:

(1) Subsections (b) and (d) of section 5 (31 U.S.C., sec. 754 (b) and (d));

(2) The second and third sentences of section 7 (31 U.S.C., sec. 747);

(3) Subsection (b) of section 18 (31 U.S.C., sec. 753(b)); (4) The first sentence of subsection (d) of section 22 (31 U.S.C., sec. 757c(d)).