MODIFICATION OF AUTHORITY TO SET TERMS AND CONDITIONS FOR SAVINGS BONDS.

SEC. 745. MODIFICATION OF AUTHORITY TO SET TERMS AND CONDITIONS FOR SAVINGS BONDS. (a) In General.—Subsection (b) of section 3105 of title 31, United States Code, is amended to read as follows: “(b) (1) The Secretary may— “(A) fix the investment yield for savings bonds; and “(B) change the investment yield on an outstanding savings bond, except that the yield on a bond for the period held may not be decreased below the minimum yield for the period guaranteed on the date of issue. “(2) The Secretary may prescribe regulations providing that— “(A) owners of savings bonds may keep the bonds after maturity or after a period beyond maturity during which the bonds have earned interest and continue to earn interest at rates consistent with paragraph (1) of this subsection; and “(B) savings bonds earning a different rate of interest before the regulations are prescribed shall earn a rate of interest consistent with paragraph (1).” (b) Effective Date.—The amendment made by this section shall apply to bonds issued after October 31, 1994.