# United States Statutes at Large/Volume 2/12th Congress/1st Session/Chapter 41

Chap. XLI.—An Act authorizing a loan for a sum not exceeding eleven millions of dollars.
Act of July 6, 1812, ch. 136. Limitation of sum to be borrowed.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States be, and he is hereby authorized to borrow on the credit of the United States, a sum not exceeding eleven millions of dollars, at an interest not exceeding six per centum per annum, payable quarter yearly, to be applied, in addition to the monies now in the treasury, or which may be received from other sources, to defray any of the expenses which have been, or may, during the present session of Congress, be authorized by law, and for which appropriations have been, or may, during the present session of Congress, be made by law:The U. States may reimburse any sum borrowed after twelve years. Provided, that no engagement nor contract shall be entered into, which shall preclude the United States from reimbursing any sum or sums thus borrowed, at any time after the expiration of twelve years, from the first day of January next.
Certificates of stock to be constituted. Interest thereon. How transferable. Proviso.Sec. 2. And be it further enacted, That the President of the United States be, and he is hereby authorized, to cause to be constituted certificates of stock signed by the register of the treasury, or by a commissioner of loans, for the sum to be borrowed by virtue of this act, or for any part thereof, bearing an interest of six per centum, and reimbursable as aforesaid; which stock, thus created, shall be transferable in the same manner as is provided by law for the transfer of the existing public debt of the United States: and it is hereby further declared, that it shall be deemed a good execution of the said power to borrow, for the President of the United States to cause the said certificates of stock, or any part thereof, to be sold: Provided, that no such stock shall be sold under par.
Funds pledges for paying principal and interest.Sec. 3. And be it further enacted, That so much of the funds constituting the annual appropriation of eight millions of dollars, for the payment of the principal and interest of the public debt of the United States, as may be wanted for that purpose, after satisfying the sums necessary for the payment of the interest and such part of the principal of the said debt as the United States are now pledged annually to pay or reimburse, is hereby pledged and appropriated for the payment of the ​interest, and for the reimbursement of the principal of the stock which may be created by virtue of this act; it shall accordingly be the duty of the commissioners of the sinking fund, to cause to be applied and paid out of the said fund yearly, such sum and sums as may be annually wanted to discharge the interest accruing on the said stock, and to reimburse the principal as the same shall become due, and may be discharged in conformity with the terms of the loan; and they are further authorized to apply, from time to time, such sum or sums out of the said fund as they may think proper, towards redeeming by purchase, and at a price not above par, the principal of the said stock, or any part thereof.Faith of the U. States pledged for the establishment of sufficient revenue to make up deficiencies. And the faith of the United States is hereby pledged to establish sufficient revenues for making up any deficiency that may hereafter take place in the funds hereby appropriated for paying the said interest and principal sums, or any of them, in manner aforesaid.
Lawful for the banks in the district of Columbia to make the loan or any part thereof.Sec. 4. And be it further enacted, That it shall be lawful for any of the banks in the district of Columbia to lend any part of the sum authorized to be borrowed by virtue of this act, any thing in any of their charters of incorporation to the contrary notwithstanding.
Approved, March 14, 1812.