31 U.S.C. § 3121: Procedure

whether an obligation is to be issued on an interest-bearing basis, a discount basis, or an interest-bearing and discount basis; regulations on the conditions under which the obligation will be offered for sale, including whether it will be offered for sale on a competitive or other basis; the offering price and interest rate; the method of computing the interest rate; the dates for paying principal and interest; the form and denominations of the obligations; and other conditions. Under conditions prescribed by the Secretary, an obligation issued under this chapter and redeemable on demand of the owner or holder may be used to pay the United States Government for taxes imposed by it. An obligation of the Government issued after March 3, 1971 , under law may not be redeemed before its maturity to pay a tax imposed by the Government in an amount more than the fair market value of the obligation at the time of its redemption. This paragraph does not apply to a Treasury bill issued under section 3104 of this title . Under conditions prescribed by the Secretary, an obligation authorized by this chapter may be issued in exchange for an obligation of an agency whose principal and interest are unconditionally guaranteed by the Government at or before maturity. Under conditions prescribed by the Secretary, the Secretary may issue registered bonds in exchange for and instead of coupon bonds that have been or may be issued. The registered bonds shall be similar in all respects to the registered bonds issued under a law authorizing the issue of coupon bonds offered for exchange. A decision of the Secretary about an issue of obligations under sections 3102–3104 of this title is final. The Secretary may accept voluntary services in carrying out the sale of public debt obligations. not of a type offered to the public; or having a maturity (at issue) of not more than one year. Every registration-required obligation of the Government shall be in registered form. A book entry obligation is deemed to be in registered form if the right to principal and stated interest on the obligation may be transferred only through a book entry consistent with regulations of the Secretary. The Secretary shall prescribe regulations necessary to carry out this subsection when there is a nominee. The Secretary shall prescribe by regulation standards for the safeguarding and use of obligations issued under this chapter, and obligations otherwise issued or guaranteed as to principal or interest by the United States. Such regulations shall apply only to a depository institution that is not a government securities broker or a government securities dealer and that holds such obligations as fiduciary, custodian, or otherwise for the account of a customer and not for its own account. Such regulations shall provide for the adequate segregation of obligations so held, including obligations which are purchased or sold subject to resale or repurchase. Violation of a regulation prescribed under paragraph (1) shall constitute adequate basis for the issuance of an order under section 5239(a) or (b) of the Revised Statutes ( 12 U.S.C. 93(a) or (b)), section 8(b) or 8(c) of the Federal Deposit Insurance Act, section 5(d)(2) or 5(d)(3) 1 of the Home Owners’ Loan Act of 1933, section 407(e) or 407(f) 1 See References in Text note below. 1 of the National Housing Act, or section 206(e) or 206(f) of the Federal Credit Union Act. Such an order may be issued with respect to a depository institution by its appropriate regulatory agency and with respect to a federally insured credit union by the National Credit Union Administration Board. Nothing in this subsection shall be construed to affect in any way the powers of such agencies under any other provision of law. The Secretary shall, prior to adopting regulations under this subsection, determine with respect to each appropriate regulatory agency and the National Credit Union Administration Board, whether its rules and standards adequately meet the purposes of regulations to be promulgated under this subsection, and if the Secretary so determines, shall exempt any depository institution subject to such rules or standards from the regulations promulgated under this subsection. “depository institution” has the meaning stated in clauses (i) through (vi) of section 19(b)(1)(A) of the Federal Reserve Act and also includes a foreign bank, an agency or branch of a foreign bank, and a commercial lending company owned or controlled by a foreign bank (as such terms are defined in the International Banking Act of 1978). “government securities broker” has the meaning prescribed in section 3(a)(43) of the Securities Exchange Act of 1934. “government securities dealer” has the meaning prescribed in section 3(a)(44) of the Securities Exchange Act of 1934. “appropriate regulatory agency” has the meaning prescribed in section 3(a)(34)(G) of the Securities Exchange Act of 1934. Except as provided in paragraph (2) of this subsection, the amendment made by section 1(9) of the Act of January 12, 1983 ( Public Law 97–452 , 96 Stat. 2468 ) [amending this section], applies to an obligation issued under section 3102(a) of title 31 , United States Code, after September 3, 1982 . interest on the obligation is exempt from tax (decided without regard to the amendments made by section 310 of the Tax Equity and Fiscal Responsibility Act of 1982 ( Public Law 97–248 , 96 Stat. 595 ) [enacting section 4701 of Title 26 , Internal Revenue Code, section 757c–5 of former Title 31, Money and Finance, amending sections 103, 103A, 163, 165, 312, and 1232 of Title 26, and enacting a provision set out as a note under section 103 of Title 26 ]) under law (without regard to the identity of the holder); and the obligation was not required to be in registered form under the Internal Revenue Code of 1986 [formerly I.R.C. 1954] ( 26 U.S.C. 1 et seq.) as in effect on September 2, 1982 . The amendment made by section 1(9) of the Act of January 12, 1983 ( Public Law 97–452 , 96 Stat. 2468 ) [amending this section], applies to an obligation issued under section 3103(a) of title 31 , United States Code, after December 31, 1982 .” meets the minimum creditworthiness standard established by the Secretary; and agrees to comply with regulations and procedures applicable to the automated system and the sale upon issuance of securities issued by the Secretary. No government securities broker or government securities dealer may receive any advantage, favorable treatment, or other benefit, in connection with the purchase upon issuance of securities issued by the Secretary of the Treasury, which is not generally available to other government securities brokers or government securities dealers under the regulations governing the sale upon issuance of securities issued by the Secretary of the Treasury. the Secretary determines that any advantage, favorable treatment, or other benefit referred to in such paragraph is necessary and appropriate and in the public interest; and the grant of the exception is designed to minimize any anticompetitive effect. The Secretary of the Treasury shall submit an annual report to the Congress describing any exception granted by the Secretary under subparagraph (A) during the year covered by the report and the basis upon which the exception was granted. Except as provided in subparagraph (B), any meeting of the Treasury Borrowing Advisory Committee of the Public Securities Association (hereafter in this subsection referred to as the ‘advisory committee’), or any successor to the advisory committee, shall be open to the public. discusses and debates the issues presented to the advisory committee by the Secretary of the Treasury; or makes recommendations to the Secretary. The detailed minutes required to be maintained under section 1009(c) of title 5 , United States Code, for any meeting by the advisory committee shall be made available to the public within 3 business days of the date of the meeting. In connection with any meeting of the advisory committee, no officer or employee of the Department of the Treasury, the Board of Governors of the Federal Reserve System, or any Federal reserve bank may accept any gratuity, consideration, expense of any sort, or any other thing of value from any advisory committee described in subsection (c), any member of such committee, or any other person. another member of the advisory committee who is present at the meeting; or an officer or employee of the Department of the Treasury. with respect to any discussion, debate, or recommendation which relates to the securities to be auctioned in a midquarter refunding by the Secretary of the Treasury, at the time the Secretary makes a public announcement of the refunding; and with respect to any other discussion, debate, or recommendation at the meeting, at the time the Secretary releases the minutes of the meeting in accordance with paragraph (2). remove a member of the advisory committee who violates a provision of this paragraph from the advisory committee and permanently bar such person from serving as a member of the advisory committee; and prohibit any director, officer, or employee of the firm of which the member referred to in clause (i) is a director, officer, or employee (at the time the member is removed from the advisory committee) from serving as a member of the advisory committee at any time during the 5-year period beginning on the date of such removal. The number of inquiries begun by the Secretary during the year covered by the report regarding such material violations or suspected material violations by any participant in the auction system or any director, officer, or employee of any such participant and the number of inquiries regarding any such violations or suspected violations which remained open at the end of such year. A brief description of the nature of the violations. A brief description of any action taken by the Secretary during such year with respect to any such violation, including any referrals made to the Attorney General, the Securities and Exchange Commission, any other law enforcement agency, and any Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act [ 12 U.S.C. 1813 ]). The Secretary of the Treasury shall not be required to include in a report under paragraph (1) any information the disclosure of which could jeopardize an investigation by an agency described in paragraph (1)(C) for so long as such disclosure could jeopardize the investigation.”