that such maximum limits be exceeded: Provided, however, That in no event may the interest rate or the investment yield exceed 44 per centum per annum. (Sept. 24, 1917, ch. 56, § 25, as added Sept. 22, 1959, Pub. L. 86-346, title I, § 101(a) 73 Stat. 621.)

COMMENCEMENT OF INCREASED INTEREST RATE OR
INVESTMENT YIELD

Section 101 (c) of Pub. L. 86-346 provided that: "The authority granted by the amendments made by subsections (a) and (b) [enacting this section and amending section 757c(b)(2) of this title] 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."

Chapter 13.-CREDIT AND CURRENCY

EXPANSION

§ 821. Purchase of Treasury bills and other obligations of United States; issuance of United States notes to repay money borrowed and purchase Government bonds; retirement of notes; legal tender; regulation of value of gold and silver coins.

(a) To direct the Secretary of the Treasury to enter into agreements with the several Federal Reserve banks and with the Board of Governors of the Federal Reserve System whereby the Board of Governors of the Federal Reserve System will, and it is authorized to, notwithstanding any provisions of law or rules and regulations to the contrary, permit such reserve banks to agree that they will, (1) conduct, pursuant to existing law, throughout specified periods, open market operations in obligations of the United States Government or corporations in which the United States is the majority stockholder, and (2) purchase directly and hold in portfolio for an agreed period or periods of time Treasury bills or other obligations of the United States Government in an aggregate sum of $3,000,000,000 in addition to those they may then hold, unless prior to the termination of such period or periods the Secretary shall consent to their sale. No suspension of reserve requirement of the Federal Reserve banks, under the terms of section 248 (c) of Title 12, necessitated by reason of operations under this section, shall require the imposition of the graduated tax upon any deficiency in reserves as provided in said section 248 (c) of Title 12. Nor shall it require any automatic increase in the rates of interest or discount charged by any Federal Reserve bank, as otherwise specified in that section. The Board of Governors of the Federal Reserve System, with the approval of the Secretary of the Treasury, may require the Federal Reserve banks to take such action as may be necessary, in the judgment of the Board and of the Secretary of the Treasury, to prevent undue credit expansion.

§ 822a. Stabilization of exchange value of dollar; stabilization fund; payment of subscription to International Monetary Fund; repayment covered into Treasury.

CROSS REFERENCES

Transfers to stabilization fund of purchase of currencies or gold from International Monetary Fund, ad

ministration and utilization of fund resources for repayments, see section 286e-3 of Title 22, Foreign Relations and Intercourse.

Chapter 14.-FINANCIAL CONTROL OF GOVERNMENT CORPORATIONS

§ 846. Definition of "wholly owned Government corporation".

As used in this chapter the term "wholly owned Government corporation" means the Commodity Credit Corporation; Regional Agricultural Credit Corporations; Farmers Home Corporation; Federal Crop Insurance Corporation; Federal Surplus Commodities Corporation; Reconstruction Finance Corporation; Defense Plant Corporation; Defense Supplies Corporation; Metals Reserve Company; Rubber Reserve Company; War Damage Corporation; Federal National Mortgage Association; the RFC Mortgage Company; Disaster Loan Corporation; Inland Waterways Corporation; Warrior River Terminal Company; Virgin Islands Corporation; Federal Prison Industries, Incorporated; United States Spruce Production Corporation; Development Loan Fund; Institute of Inter-American Affairs; Institute of Inter-American Transportation; Inter-American Educational Foundation, Incorporated; Inter-American Navigation Corporation; Prencinradio, Incorporated; Cargoes, Incorporated; Export-Import Bank of Washington; Petroleum Reserves Corporation; Rubber Development Corporation; U.S. Commercial Company; Smaller War Plants Corporation; Federal Public Housing Authority (or Public Housing Administration) and including public housing projects financed from appropriated funds and operations thereof; Defense Homes Corporation; Federal Savings and Loan Insurance Corporation; Home Owners' Loan Corporation; United States Housing Corporation; Federal Housing Administration; Saint Lawrence Seaway Development Corporation; Panama Canal Company; Tennessee Valley Authority; and Tennessee Valley Associated Cooperatives, Incorporated. (As amended Oct. 4, 1961, Pub. L. 87-353, § 3(u), 75 Stat. 774.)

AMENDMENTS

1961-Pub. L. 87-353 struck out "Federal Farm Mortgage Corporation:" following "Federal Crop Insurance Corporation;".

§ 847. Preparation of annual business-type budget; form, content, and manner of submission.

CROSS REFERENCE

Area redevelopment program loans for industrial projects and public facilities, budget program as provided for by sections 847-849 of this title, see section 2508 of Title 42, The Public Health and Welfare.

Chapter 15.-GIFTS FOR REDUCTION OF PUBLIC DEBT [New]

Sec.

901. Acceptance authority; conditions; rejection. 902. Conversion into money.

903. Payment of taxes.

904. Special account; establishment; deposits; expenditures; cancellation of obligations; prohibition against reissuance; appropriation.

§ 901. Acceptance authority; conditions; rejection.

In order to afford to the people of the United States an opportunity to make gifts to the Government of the United States to be used for the purpose of reducing the public debt

(a) the Secretary of the Treasury is authorized to accept on behalf of the United States (1) any gift of money made on the sole condition that it be used to reduce the public debt of the United States, (2) any gift of obligations of the United States included in the public debt of the United States, if made on the sole condition that the obligations be canceled and retired and not reissued, or (3) any gift of other intangible personal property made on the sole condition that it be sold, and the proceeds realized from the sale be used to reduce the public debt of the United States; and

(b) the Administrator of General Services is authorized to accept on behalf of the United States any gift of other property, real or personal, made to the United States on the sole condition that it be sold and the proceeds realized from the sale be used to reduce the public debt of the United States: Provided, however, That the Secretary of the Treasury or the Administrator of General Services, as the case may be, is authorized to reject any gift under this section whenever he determines such action to be in the interest of the United States.

(Pub. L. 87-58, § 1, June 27, 1961, 75 Stat. 119.)

§ 902. Conversion into money.

The Secretary of the Treasury shall convert into money, at the best terms available, any gift accepted by him under the provisions of subsection (a) (3) of section 901 of this title; and the Administrator of General Services shall convert into money, at the best terms available, any gift accepted by him under the provisions of section 901 of this title. (Pub. L. 87-58, § 2, June 27, 1961, 75 Stat. 120.)

§ 903. Payment of taxes.

If under applicable law any gift accepted under section 901 of this title is subject to a gift or inheritance tax, the Secretary of the Treasury or the Administrator of General Services, as the case may be, is authorized to pay such tax out of the proceeds of such gift, or the proceeds of the redemption or sale of such gift, as the case may be. (Pub. L. 87-58, § 3, June 27, 1961, 75 Stat. 120.)

§ 904. Special account; establishment; deposits; expenditures; cancellation of obligations; prohibition against reissuance; appropriation. There is established on the books of the Treasury a special account into which shall be deposited all money received as gifts under this chapter and all money received as a result of the conversion into money of gifts of property other than money received under this chapter. The Secretary of the Treasury shall from time to time utilize the money in the special account for the payment at maturity or the redemption or purchase before maturity of any obligations of the United States included in the public debt of the United States. All obligations of

For the purposes of this chapter

(a) The term "Secretary" means the Secretary of the Treasury.

(b) The term "United States notes" means currency notes issued pursuant to the first section of the Act of February 25, 1862 (12 Stat. 345), the Act of July 11, 1862 (12 Stat. 532), the resolution of January 17, 1863 (12 Stat. 822), section 2 of the Act of March 3, 1863 (12 Stat. 709), or section 401 of this title.

(c) The term "Treasury notes of 1890" means currency notes issued pursuant to the Act of July 14, 1890 (26 Stat. 289). (Pub. L. 87-66, § 2, June 30, 1961, 75 Stat. 146.)

REFERENCES IN TEXT

"This chapter", referred to in the introductory clause, read "this Act", in the original, meaning Pub. L. 87-66, which enacted this chapter and amended section 404 of this title and sections 415 and 416 of Title 12, Banks and Banking.

SHORT TITLE

Section 1 of Pub. L. 87-66 provided: "That this Act [enacting this chapter and amending section 404 of this title and sections 415 and 416 of Title 12, Banks and Banking may be cited as the 'Old Series Currency Adjustment Act'."

§ 912. Transfer of gold and silver to general fund.

The Secretary of the Treasury is authorized and directed to transfer to the general fund of the Treasury, to be credited as a public debt receipt, the following:

(1) Gold held as security for gold certificates issued prior to January 30, 1934.

(2) Standard silver dollars held as security for, or for the redemption of, silver certificates issued prior to July 1, 1929.

(3) Standard silver dollars held as security for, or for the redemption of Treasury notes of 1890. (Pub. L. 87-66, § 3, June 30, 1961, 75 Stat. 146.)

§ 913. Payment of amount of outstanding Federal Reserve notes.

The Board of Governors of the Federal Reserve System, with the approval of the Secretary, may require any Federal Reserve bank to pay to the Secretary, to be credited as a public debt receipt, an amount equal to the amount of Federal Reserve notes of any series prior to the series of 1928 issued

to such bank and outstanding at the time of such payment. (Pub. L. 87-66, § 4, June 30, 1961, 75 Stat. 146.)

§ 914. Redemption of currency.

Any currency the funds for the redemption or security of which have been transferred pursuant to the provisions of section 912 of this title, and any Federal Reserve notes as to which payment has been made under section 913 of this title, shall thereafter, upon presentation at the Treasury for redemption, be redeemed by the Secretary from the general fund of the Treasury and thereupon retired. (Pub. L. 87-66, § 5, June 30, 1961, 75 Stat. 146.)

§ 915. Continuing accountability.

(a) Except as provided in subsection (c) of this section, upon completion of the transfers and credits authorized and directed by section 912 of this title there shall be carried on the books of the Treasury as public debt bearing no interest the following: (1) Gold certificates issued prior to January 30, 1934.

(2) Treasury notes of 1890.

(3) United States notes issued prior to July 1, 1929.

(4) Silver certificates issued prior to July 1, 1929.

(b) Except as provided in subsection (c) of this section, there shall be carried on the books of the Treasury as public debt bearing no interest Federal Reserve notes as to which payment has been made to the Secretary under section 913 of this title and the amount of the payment credited as a public debt receipt in accordance with such section.

(c) The Secretary is authorized to determine, from time to time, the amount of-

(1) outstanding currency of any type designated in subsections (a) and (b) of this section.

(2) circulating notes of Federal Reserve banks, issued prior to July 1, 1929, for which the United States has assumed liability, and

(3) circulating notes of national banking associations, issued prior to July 1, 1929, for which the United States has assumed liability, which in his judgment, have been destroyed or irretrievably lost and so will never be presented for redemption, and to reduce accordingly the amount or amounts thereof outstanding on the books of the Treasury and to credit such amounts to the appropriate receipt account. (Pub. L. 87-66, § 6, June 30, 1961, 75 Stat. 146.)

§ 916. Redeemability of currency.

Nothing contained in this chapter shall impair the redeemability of any currency of the United States as now provided by law. (Pub. L. 87-66, § 9, June 30, 1961, 75 Stat. 147.)

REFERENCES IN TEXT

"This chapter", referred to in the text, read "this Act", in the original, meaning Pub. L. 87-66, which enacted this chapter and amended section 404 of this title and sections 415 and 416 of Title 12, Banks and Banking.

§ 917. Historical collection of paper currency.

In order to provide a historical collection of the paper currency issues of the United States, the Secretary of the Treasury is authorized, after redemption, to withhold from cancellation and destruction and to transfer to a special account one piece of each design, issue, or series of each denomination of each kind of paper currency of the United States, including bank notes, heretofore or hereafter issued, and to make appropriate entires in the redemption accounts and other books of the Treasury to cover any such transfers. (Pub. L. 87-66, § 10, June 30,

1961, 75 Stat. 147.)

Chapter 1.-ORGANIZATION

§ 101. Definitions.

In addition to the definitions in sections 1-5 of title 1, the following definitions apply in this title:

(1) "Territory” means any Territory organized after this title is enacted, so long as it remains a Territory.

§ 302. Enlistments, reenlistments, and extensions.

(a) Under regulations to be prescribed by the Secretary concerned, original enlistments in the National Guard may be accepted for

(1) any specified term, not less than three years, for persons who have not served in an armed force; or

(2) any specified term, not less than one year, for persons who have served in any armed force. (b) Under regulations to be prescribed by the Secretary concerned, reenlistment in the National Guard may be accepted for any specified period, or, if the person last served in one of the highest five enlisted grades, for an unspecified period.

(c) Enlistments or reenlistments in the National Guard may be extended

(1) under regulations to be prescribed by the Secretary concerned, at the request of the member, for any period not less than six months; or (2) by proclamation of the President, if Congress declares an emergency, until six months after termination of that emergency. (As amended Oct. 4, 1961, Pub. L. 87-378, § 5(1), 75 Stat. 808.)

AMENDMENTS

1961-Pub. L. 87-378 permitted original enlistments for any specified term, not less than three years, for persons who have not served in an armed force, authorized reenlistments for any specified period, or if the person last served in one of the highest five enlisted grades, for an unspecified period, extensions of enlistments or reenlistments at the request of the member for any period not less than six months after termination of the emergency.

EFFECTIVE DATE OF 1961 AMENDMENT Amendment of section by Pub. L. 87-378 not effective with respect to any enlistment, reenlistment, or appointment entered into or made before Oct. 4, 1961, see section

6 of Pub. L. 87-378, set out as a note under section 3261 of Title 10, Armed Forces.

§ 303. Active and inactive enlistments and transfers.

(c) Repealed. Pub. L. 87-649, § 14e(1), Sept. 7, 1962, 76 Stat. 502.

(As amended Sept. 7, 1962, Pub. L. 87-649, § 14e (1),

76 Stat. 502.)

1962

AMENDMENTS

Subsec. (c). Pub. L. 87-649 repealed subsec. (c) which provided that a person enlisted in the inactive Army National Guard or inactive Air National Guard is not entitled to pay under section 301 of Title 37. See section 206 of Title 37, Pay and Allowances of the Uniformed Services.

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment of section by Pub. L. 87-649 effective on Nov. 1, 1962, see section 15 of Pub. L. 87-649, set out as a note preceding section 101 of Title 37, Pay and Allowances of the Uniformed Services.

§304. Enlistment oath.

Each person enlisting in the National Guard shall sign an enlistment contract and subscribe to the following oath:

of

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"I do hereby acknowledge to have voluntarily enlisted this day of... 19_-, in the National Guard of the State for a period of year(s) under the conditions prescribed by law, unless sooner discharged by proper authority. "I, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and of the State of against all enemies, foreign and domestic; that I will bear true faith and allegiance to them; and that I will obey the orders of the President of the United States and the Governor of and the orders of the officers appointed over me, according to law and regulations. So help me God." This oath may be taken before any officer of the National Guard of the State or territory, or of Puerto Rico, the Canal Zone, or the District of Columbia, as the case may be, or before any other person authorized by the law of the jurisdiction concerned to administer oaths of enlistment in the National Guard. (As amended Oct. 5, 1962, Pub. L. 87-751, § 2, 76 Stat. 748.)

AMENDMENTS

1962-Pub. L. 87-751 substituted "support and defend the Constitution of the United States and of the State of against all enemies, foreign and domestic; that I will bear true faith and allegiance to them" for "bear true faith and allegiance to the United States of America and to the State of

That I will serve them honestly and faithfully against all their enemies whomsoever" and inserted "So help me God."

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