Sec. 205. Sustaining the Madison Foundation
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Subsection
(b)of section 811 of the James Madison Memorial Fellowship Act ( 20 U.S.C. 4510 ) is amended to read as follows: It shall be the duty of the Secretary of the Treasury to invest in full the amounts appropriated to the fund. Subject to paragraph (3), investments of amounts appropriated to the fund shall be made in public debt securities of the United States with maturities suitable to the fund. For such purpose, such obligations may be acquired
(A)on original issue at the issue price, or
(B)by purchase of outstanding obligations at the market price. The purposes for which obligations of the United States may be issued under chapter 31 of title 31, United States Code, are hereby extended to authorize the issuance at par of special obligations exclusively to the fund. Such special obligations shall bear interest at a rate equal to the average rate of interest, computed as to the end of the calendar month next preceding the date of such issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt, except that where such average rate is not a multiple of 1/8 of 1 percent, the rate of interest of such special obligations shall be the multiple of 1/8 of 1 percent next lower than such average rate. Such special obligations shall be issued only if the Secretary determines that the purchases of other interest-bearing obligations of the United States, or of obligations guaranteed as to both principal and interest by the United States or original issue or at the market price, is not in the public interest. Notwithstanding paragraph (2), upon receiving a determination of the Board described in subparagraph (B), the Secretary shall invest up to 40 percent of the fund’s assets in securities other than public debt securities of the United States, provided that the securities are traded in established United States markets. A determination described in this subparagraph is a determination by the Board that investments as described in subparagraph
(A)are necessary to enable the Foundation to carry out the purposes of this title without any diminution of the number of fellowships provided under section 804. Nothing in this paragraph shall be construed to limit the authority of the Board to increase the number of fellowships provided under section 804, or to increase the amount of the fellowship authorized by section 809, as the Board considers appropriate and is otherwise consistent with the requirements of this title. .
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Sec. 205
Sustaining the Madison Foundation
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