Chapter 26. To amend section 5 of the Second Liberty Bond Act, as amended
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CHAP. 26.— An Act To amend section 5 of the Second Liberty Bond Act, as amended. June 17, 1929.[[H. R. 1648](/us/bill/71/hr/1648).][[Public, No. 11](/us/pl/71/11).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That section 5 ofSecond Liberty Bond Act.Vol. 40, p. 290, amended.[U. S. C. p. 1027](/us/usc/p1027).Additional loans authorized to pay for certificates of indebtedness before maturity, etc.Vol. 40, pp. 35, 1309. the Second Liberty Bond Act, as amended (United States Code, title 31, section 754), is hereby amended to read as follows: " “Sec. 5.
(a)That in addition to the bonds and notes authorized by sections 1 and 18 of this Act, as amended, the Secretary of the Treasury is authorized to borrow from time to time, on the credit of the United States, for the purposes of this Act, to provide for the 20*Post*, p. 775,purchase or redemption before maturity of any certificates of indebtedness or Treasury bills issued hereunder, and to meet public expenditures authorized by law, such sum or sums as in his judgment Certificates to be issued at par, etc.may be necessary, and to issue therefor
(1)certificates of indebtedness of the United States at not less than par and at such rate or rates of interest, payable at such time or times as he may prescribe; or Sale of Treasury bills on competitive basis at discount.(2) Treasury bills on a discount basis and payable at maturity without interest. Treasury bills to be issued hereunder shall be offered for sale on a competitive basis, under such regulations and upon such terms and conditions as the Secretary of the Treasury may prescribe, and the decisions of the Secretary in respect of any Payment in not exceeding one year.issue shall be final. Certificates of indebtedness and Treasury bills issued hereunder shall be in such form or forms and subject to such terms and conditions, shall be payable at such time not exceeding one year from the date of issue, and may be redeemable before maturity upon such terms and conditions as the Secretary of the Bills not accepted for foreign indebtedness payments.Treasury may prescribe. Treasury bills issued hereunder shall not be acceptable before maturity in payment of interest or of principal on account of obligations of foreign governments held by the United Maximum par value limited.Vol. 30, p. 291.States of America. The sum of the par value of such certificates and Treasury bills outstanding hereunder and under section 6 of the First Liberty Bond Act shall not at any one time exceed in the aggregate $10,000,000,000. “(b) Tax exemption. All certificates of indebtedness and Treasury bills issued hereunder (after the date upon which this subdivision becomes law) shall be exempt, both as to principal and interest, from all taxation (except estate and inheritance taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority; and the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest within the meaning of this subdivision. “(c) Certificates and Treasury bills included as Government bonds or notes. Wherever the words ‘bonds and notes of the United States,’ or ‘bonds and notes of the Government of the United States,’ or ‘bonds or notes of the United States’ are used in the Federal Reserve Act, as amended, they shall be held to include certificates of indebtedness and Treasury bills issued hereunder.” " Approved, June 17, 1929.