PUBLIC LAWS-CH. 44 -MAR. 8, 1938 stock shall be exercised by the President, or by such officer, officers, agency, or agencies as he shall designate, and in such manner as he shall prescribe. issuance of obliga- SEC. 4. With the approval of the Secretary of the Treasury, the gregate amont. Commodity Credit Corporation is authorized to issue and have out- standing at any one time, bonds, notes, debentures, and other similar Forms, denomina- obligations in an aggregate amount not exceeding $500,000,000. Such teStrates'etc.i obligations shall be in such forms and denominations, shall have such maturities, shall bear such rates of interest, shall be subject to such terms and conditions, and shall be issued in such manner and sold at such prices as may be prescribed by the Commodity Credit Cor- Obligations uncon- poration, with the approval of the Secretary of the Treasury. Such ditionay guanteed. obligations shall be fully and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall Use as security. be expressed on the face thereof, and such obligations shall be lawful investments and may be accepted as security for all fiduciary, trust, and public funds the investment or deposit of which shall be under the authority or control of the United States or any officer or officers thereof. In the event that the Commodity Credit Corporation shall be unable to pay upon demand, when due, the principal of, or interest on, such obligations, the Secretary of the Treasury shall pay to the holder the amount thereof which is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appro- priated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders ratichas of corpo- of such obligations. The Secretary of the Treasury, in his discre- ionoblgations. tion, is authorized to purchase any obligations of the Commodity Securities hereafter Credit Corporation issued hereunder, and for such purpose the Sec- issued under Second prn f pr e- Liberty Bond Act; retary of the Treasury is authorized to use as a public-debt transac- purposes extended tion the proceeds from the sale of any securities hereafter issued 40 Stat.288 . under the Second Liberty Bond Act, as amended, and the purposes for which securities may be issued under such Act, as amended, are extended to include any purchases of the Commodity Credit Cor- sale of acquired poration's obligations hereunder. The Secretary of the Treasury obligations. o Tf may at any time sell any of the obligations of the Commodity Credit Redemptions, etc.. Corporation acquired by him under this section. All redemptions, transactions. purchases, and sales by the Secretary of the Treasury of the obliga- tions of the Commodity Credit Corporation shall be treated as Issue not to exceed public-debt transactions of the United States. No such obligations assets, etc. shall be issued in excess of the assets of the Commodity Credit Cor- poration, including the assets to be obtained from the proceeds of such obligations, but a failure to comply with this provision shall Open-market pur- not invalidate the obligations or the guaranty of the same. The Commodity Credit Corporation shall have power to purchase such obligations in the open market at any time and at any price. Obligations deemed SEC. 5. Bonds, notes, debentures, and other similar obligations ities. issued by the Commodity Credit Corporation under the provisions of this Act shall be deemed and held to be instrumentalities of the Tax exemption; ex- Government of the United States, and as such they and the income epton. derived therefrom shall be exempt from Federal, State, municipal, and local taxation (except surtaxes, estate, inheritance, and gift taxes). The Commodity Credit Corporation, including its franchise, its capital, reserves, and surplus, and its income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority; except that any real property of the Commodity Credit Corporation shall be subject to State, Terri- torial, county, municipal, or local taxation to the same extent accord- ing to its value as other real property is taxed. Approved, March 8, 1938. 108 [52 STAT.
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