Pub. L. 86-346, tit. I, sec. 101

Sec. 101. (a) The Second Liberty Bond Act, as amended, is amended by adding at the end thereof the following new section: “Sec. 25. In the case of any offering of United States savings bonds issued or to be issued under section 22 of this Act, the maximum limits on the interest rate or the investment yield or both may be exceeded upon a finding by the President with respect to such offering that the national interest requires that such maximum limits be exceeded: Provided, however, That in no event may the interest rate or the investment yield exceed 4¼ per centum per annum.” (b) Paragraph (2) of section 22(b) of the Second Liberty Bond Act, as amended (31 U.S.C., sec. 757c(b) (2)), is amended to read as follows: “(2) The Secretary of the Treasury, with the approval of the President, is authorized to provide by regulations: “(A) That owners of series E and H savings bonds may, at their option, retain the bonds after maturity, or after any period beyond maturity during which such bonds have earned interest, and continue to earn interest upon them at rates which (subject to section 25) are consistent with the provisions of paragraph (1). “(B) That series E and H savings bonds on which the rates of interest have been fixed prior to such regulations will earn interest at higher rates which (subject to section 25) are consistent with the provisions of paragraph (1).” (c) The authority granted by the amendments made by subsections (a) and (b) may be exercised with respect to United States savings bonds bearing issue dates of June 1, 1959, or thereafter. Such authority may also be exercised with respect to United States savings bonds issued before June 1, 1959, but in no case shall the interest rate, or investment yield, on any bond be changed pursuant to such authority for any period which begins before June 1, 1959.