[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6206 Received in Senate (RDS)]


109th CONGRESS
  2d Session
                                H. R. 6206


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 8, 2006

                                Received

_______________________________________________________________________

                                 AN ACT


 
 To revise the calculation of interest on investments of the Harry S. 
                   Truman Memorial Scholarship Fund.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truman Scholarship Fund 
Modernization Act''.

SEC. 2. REVISION OF INVESTMENT PROCEDURE.

    Section 10 of the Harry S Truman Memorial Scholarship Act (20 
U.S.C. 2009) is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Investment of Amounts Appropriated.--
            ``(1) At the request of the Board, it shall be the duty of 
        the Secretary of the Treasury to invest in full the amounts 
        appropriated and contributed to the fund. Such investments may 
        be made only in the interest-bearing obligations of the United 
        States issued directly to the fund.
            ``(2) The purposes for which obligations of the United 
        States may be issued under chapter 31 of title 31 are hereby 
        extended to authorize the issuance at par of special 
        obligations directly to the fund. Such special obligations 
        shall bear interest at a rate equal to the average rate of 
        interest, computed as to the end of the calendar month next 
        preceding the date of such issue, borne by all marketable 
        interest-bearing obligations of the United States then forming 
        a part of the public debt; except that where such average rate 
        is not a multiple of one-eighth of 1 per centum, the rate of 
        interest of such special obligations shall be the multiple of 
        one-eighth of 1 per centum next lower than such average rate. 
        All requests of the Board to the Secretary of the Treasury 
        provided for in this section shall be binding upon the 
        Secretary.''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Sale of Obligations Acquired by Fund.--At the request of the 
Board, the Secretary of the Treasury shall redeem any obligation issued 
directly to the fund. Obligations issued to the fund under subsection 
(b)(2) shall be redeemed at par plus accrued interest. Any other 
obligations issued directly to the fund shall be redeemed at the market 
price.''.

            Passed the House of Representatives December 7, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.