)6 STAT.] 77TH CONG., 2n SESS.-CH. 205-MAR. 28, 1942 [CHAPTER 205] AN ACT To increase the debt limit of the United States, to further amend the Second Liberty Bond Act, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the Public Debt Act of 1942. SEC. 2 . Section 21 of the Second Liberty Bond Act, as amended, is further amended to read as follows: "SEC. 21. The face amount of obligations issued under the authority of this Act shall not exceed in the aggregate $125,000,000,000 outstand- ing at any one time." SEC. 3 . Section 20 of the Second Liberty Bond Act, as amended, is further amended to read as follows: "SEC. 20. (a) Any obligations authorized by sections 1, 5, and 18 of this Act, may be issued on an interest-bearing basis, on a discount basis, or on a combination interest-bearing and discount basis, at such price or prices and with interest computed in such manner and pay- able at such time or times as the Secretary of the Treasury i.lay prescribe; and any such obligations may be offered for sale on a com- petitive or other basis under such regulations and upon such terms and conditions as the Secretary of the Treasury may prescribe; and his decision with respect to any such issue shall be final. "(b) Any obligations authorized by this Act and redeemable upon demand of the owner or holder may, under such regulations and upon such terms and conditions as the Commissioner of Internal Revenue with the approval of the Secretary of the Treasury may prescribe, be receivable by the United States in payment of any taxes imposed by the United States. "(c) Any obligations authorized by this Act may, under such regulations and upon such terms as the Secretary of the Treasury may prescribe, be issued in exchange for any obligations of any agency or instrumentality of the United States which are uncon- ditionally guaranteed both as to principal and interest by the United States, at or before their maturity." SEC. 4 . Section 19 of the Second Liberty Bond Act, as amended, is further amended to read as follows: "SEC. 19. Any obligations authorized by this Act may be issued for the purchase, redemption, or refunding, at or before maturity, of any outstanding bonds, notes, certificates of indebtedness, Treasury bills or savings certificates of the United States, and any money received from the sale of such obligations or any other money in the general fund of the Treasury may, under such rules, regulations, terms, and conditions as the Secretary of the Treasury may prescribe, be used for such purchase, redemption, or refunding." SEC. 5. The authority of the Postmaster General contained in sec- tion 6 of the Act of June 25, 1910, as amended (U. S . C., 1940 edition, title 39, sec. 756), and section 22 (c) of the Second Liberty Bond Act, as amended, to prepare and issue postal-savings cards and postal- savings stamps shall terminate on such date as stamps issued by the Secretary of the Treasury pursuant to the authority contained in section 22 (c) of the Second Liberty Bond Act, as amended, are made available for sale to the public; and, as soon as practicable there- after, the Board of Trustees of the Postal Savings System shall pay to the Secretary of the Treasury a sum equal to the redemption value of all postal-savings stamps outstanding, and after such payment has been made the obligation to redeem such stamps shall cease to be a liability of the Board of Trustees of the Postal Savings System but shall constitute a public debt obligation of the United States. 189 March 28, 1942 [H. R. 6691] [Public Law 510] Public Debt Act of 1942. 49 Stat. 21 . 31 U. S. C., Supp. I, § 757b. Limitation on obli- gations. 48 Stat. 343. 31 U. S. C. §754b. Basis of issue. Receivable in pay- ment of Federal taxes. Exchange of obliga- tions. 48 Stat. 343 . 31 U. S. C. §754a. Purchase, redemp- tion, or refunding of U. S. obligations. Issuanceofpostaal-v- ings cards and stamps. Termination of au- thority. 36 Stat. 815 . 39U.S.C. §756; Supp. I, §756 note. 55 Stat.8. 31 U.S . C., Supp. I, 757c (c). Redemption of out- standing stamps.
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