PUBLIC LAWS-CH. 366 -JULY 26, 1939 Company and Southern Tennessee Power Company, as contem- plated in the contract between the Corporation and the Com- monwealth and Southern Corporation and others, dated as of May 12, 1939. "(2) Not to exceed $6,500,000 may be used for the purchase and rehabilitation of electric utility properties of the Alabama Power Company and Mississippi Power Company in the follow- ing named counties in northern Alabama and northern Missis- sippi: The counties of Jackson, Madison, Limestone, Lauderdale, Colbert, Lawrence, Morgan, Marshall, De Kalb, Cherokee, Cull- man, Winston, Franklin, Marion, and Lamar in northern Ala- bama, and the counties of Calhoun, Chickasaw, Monroe, Clay, Lowndes, Oktibbeha, Choctaw, Webster, Noxubee, Winston, Neshoba, and Kemper in northern Mississippi. purchased properties "(3) Not to exceed $3,500,000 may be used for rebuilding, replacing, and repairing electric utility properties purchased by the Corporation in accordance with the foregoing provisions of this section. Construction of this section. necting electrical "(4) Not to exceed $3,500,000 may be used for constructing cilities. electric transmission lines, substations, and other electrical facili- ties necessary to connect the electric utility properties purchased by the Corporation in accordance with the foregoing provisions of this section with the electric power system of the Corporation. foraciringtproperty. "(5) Not to exceed $2,000,000 may be used for making loans under section 12a to States, counties, municipalities, and non- profit organizations to enable them to purchase any electric utility properties referred to in the contract between the Cor- Prporaties in north- and the Commonwealth and Southern Corporation and ernAlabama and others, dated as of May 12, 1939, or any electric utility proper- northern Mississippi. ies of the Alabama Power Company or Mississippi Power Com- pany in any of the counties in northern Alabama or northern Mississippi named in paragraph (2). Annual financial The Corporation shall file with the President and with the Congress penditt ua tofunds in December of each year a financial statement and complete report derived from sale of. as to the expenditure of funds derived from the sale of bonds under this section covering the period not covered by any such previous tions, maturity, etc. statement or report. Such bonds shall be in such forms and denom- inations, shall mature within such periods not more than fifty years Rledemption. from the date of their issue, may be redeemable at the option of the Corporation before maturity in such manner as may be stipu- nterest rate. lated therein, shall bear such rates of interest not exceeding 31/2 per centum per annum, shall be subject to such terms and conditions, shall purchase price, be issued in such manner and amount, and sold at such prices, as may be prescribed by the Corporation with the approval of the Secretary Limitato n in- of the Treasury: Provided,That such bonds shall not be sold at such vestment yield. prices or on such terms as to afford an investment yield to the holders Unconditionalguar- in excess of 31/2 per centum per annum. Such bonds shall be fully anty. and unconditionally guaranteed both as to interest and principal by the United States, and such guaranty shall be expressed on the face se as security. thereof, and such bonds 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 con- tion to payprincipal, trol of the United States or any officer or officers thereof. In the etc.; payment from event that the Corporation should not pay upon demand when due, Treasury. the principal of, or interest on, such bonds, the Secretary of the Treasury shall pay to the holder the amount thereof, which is hereby authorized to be appropriated out of any moneys in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the 1084 [53 STAT.
�
