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U.S. Code as of:
01/19/04
Section 664. Issuance of obligations to Secretary of the Treasury
(a) Forms and denominations; maturity dates; terms and conditions;
interest rate; purchase and sale of obligations by Secretary of
the Treasury; authorization of appropriations
To enable the Secretary to carry out his rights and
responsibilities under section 662 of this title, he is authorized
to issue to the Secretary of the Treasury notes or other
obligations in such forms and denominations, bearing such
maturities, and subject to such terms and conditions, as may be
prescribed by the Secretary with the approval of the Secretary of
the Treasury. Such notes or other obligations shall bear interest
at a rate determined by the Secretary of the Treasury, taking into
consideration the current average market yield on outstanding
marketable obligations of the United States of comparable
maturities during the month preceding the issuance of the notes or
other obligations. The Secretary of the Treasury shall purchase any
notes and other obligations issued hereunder and for that purpose
he 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 securities may be issued under that
chapter are extended to include any purchase of such notes and
obligations. The Secretary of the Treasury may at any time sell any
of the notes or other obligations acquired by him under this
subsection. All redemptions, purchases, and sales by the Secretary
of the Treasury of such notes or other obligations shall be treated
as public debt transactions of the United States. There are
authorized to be appropriated to the Secretary such sums as may be
necessary to pay the principal and interest on the notes or
obligations issued by him to the Secretary of the Treasury.
(b) Revocation of guarantee; legal effect of guarantee; validity
and incontestability of guaranteed certificate
Any guarantee made by the Secretary under this chapter shall not
be terminated, canceled, or otherwise revoked, except as provided
by the terms and conditions prescribed by the Secretary under
section 662(d) of this title; shall be conclusive evidence that
such guarantee complies fully with the provisions of this chapter,
and of the approval and legality of the principal amount, interest
rate, and all other terms of the certificates and the guarantee;
and shall be valid and incontestable in the hands of a holder of a
guaranteed certificate except for fraud or material
misrepresentation on the part of such holder.
(c) Enforcement by Attorney General of rights accruing to United
States because of guarantee
The Attorney General shall take such action as may be appropriate
to enforce any right accruing to the United States by reason of its
having paid money or incurred expenses as a result of making such
guarantees.
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