--- kind: "section" citation: "7 U.S.C. § 934" title: "7" title_heading: "Agriculture" number: "934" heading: "Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/7/934" units: - "Chapter 31 — Rural Electrification and Telephone Service" - "Subchapter III — Rural Electric and Telephone Direct Loan Programs" --- # §934. Authorized financial transactions; interim notes; purchase of obligations for resale; sale of notes and certificates; liens - (a) The [Secretary](/usc/7/913.md?p=5) is authorized to make and issue interim notes to the [Secretary](/usc/7/913.md?p=5) of the Treasury for the purpose of obtaining funds necessary for discharging obligations of the fund and for making loans, advances and authorized expenditures out of the fund. Such notes shall be in such form and denominations and have such maturities and be subject to such terms and conditions as may be agreed upon by the [Secretary](/usc/7/913.md?p=5) and the [Secretary](/usc/7/913.md?p=5) of the Treasury. Such notes shall bear interest at a rate fixed by the [Secretary](/usc/7/913.md?p=5) of the Treasury, taking into consideration the current average [market](/usc/7/198.md?p=1) yield of outstanding marketable obligations of the United States having maturities comparable to the notes issued by the [Secretary](/usc/7/913.md?p=5) under this section. The [Secretary](/usc/7/913.md?p=5) of the Treasury is authorized and directed to purchase any notes of the [Secretary](/usc/7/913.md?p=5) issued hereunder, and, for that purpose, the [Secretary](/usc/7/913.md?p=5) of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any [securities](/usc/7/24.md?p=b) issued under [chapter 31](/usc/31/chstIII/ch31.md) of title 31, and the purposes for which such [securities](/usc/7/24.md?p=b) may be issued under such chapter are extended to include the purchase of notes issued by the [Secretary](/usc/7/913.md?p=5). All redemptions, purchases, and sales by the [Secretary](/usc/7/913.md?p=5) of the Treasury of such notes shall be treated as public debt transactions of the United States: Provided, however, That such interim notes to the [Secretary](/usc/7/913.md?p=5) of the Treasury shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and net lending (budget outlays) of the United States. - (b) The [Secretary](/usc/7/913.md?p=5) of the Treasury is authorized and directed to purchase for resale obligations insured through the fund when offered by the [Secretary](/usc/7/913.md?p=5). Such resales shall be upon such terms and conditions as the [Secretary](/usc/7/913.md?p=5) of the Treasury shall determine. Purchases and resales by the [Secretary](/usc/7/913.md?p=5) of the Treasury hereunder shall not be included in the totals of the budget of the United States Government and shall be exempt from any general limitation imposed by statute on expenditures and not lending (budget outlays) of the United States. - (c) The [Secretary](/usc/7/913.md?p=5) may, on an insured basis or otherwise, sell and assign any notes in the fund or sell certificates of beneficial ownership therein to the [Secretary](/usc/7/913.md?p=5) of the Treasury or in the private [market](/usc/7/198.md?p=1). Any sale by the [Secretary](/usc/7/913.md?p=5) of notes individually or in blocks shall be treated as a sale of assets for the purposes of [chapter 11](/usc/31/chstII/ch11.md) of title 31, notwithstanding the fact that the [Secretary](/usc/7/913.md?p=5), under an agreement with the purchaser or purchasers, holds the debt instruments evidencing the loans and holds or reinvests payments thereon as trustee and custodian for the purchaser or purchasers of the individual note or of the certificate of beneficial ownership in a number of such notes. [Security](/usc/7/24.md?p=b) instruments taken by the [Secretary](/usc/7/913.md?p=5) in connection with any notes in the fund may constitute liens running to the United States notwithstanding the fact that such notes may be thereafter held by purchasers thereof. ## Source credit (May 20, 1936, ch. 432, title III, § 304, as added Pub. L. 93–32, § 2, May 11, 1973, 87 Stat. 67; amended Pub. L. 103–354, title II, § 235(a)(13), Oct. 13, 1994, 108 Stat. 3221.) ## Notes ### Editorial Notes ### Codification In subsecs. (a) and (c), “chapter 31 of title 31”, “such chapter”, and “chapter 11 of title 31” substituted for “the Second Liberty Bond Act, as amended”, “such Act, as amended”, and “the Budget and Accounting Act, 1921 [31 U.S.C. 1 et seq.]”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. ### Amendments 1994—Pub. L. 103–354 substituted “Secretary” for “Administrator” wherever appearing. ### Statutory Notes and Related Subsidiaries ### Effective Date Section effective May 11, 1973, see section 12 of Pub. L. 93–32, set out as a note under section 930 of this title.