# United States Statutes at Large/Volume 3/16th Congress/1st Session/Chapter 103

Chap. CIII.—An Act to authorize the President of the United States to borrow a sum not exceeding three millions of dollars.
The President empowered to borrow 3,000,000 dollars on the credit of the United States.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, empowered to borrow, on the credit of the United States, a sum not exceeding three millions of dollars, at a rate of interest, payable quarter yearly, not exceeding five per centum per annum, and reimbursable at the will of the government, at any time after the first day of January, one thousand eight hundred and thirty-two: or at a rate of interest, payableRates of interest. in like manner, not exceeding six per centum per annum, and reimbursable at the pleasure of the United States; ​to be applied, in addition to the moneys now in the treasury, or which may be received therein from other sources, during the present year, to defray any of the public expenses, which are, or may be authorized, by law. The stock thereby createdStock transferable. shall be transferable in the same manner as is provided by law for the transfer of the public debt.
The bank of the United States may lend the money. The Secretary of the Treasury may cause certificates of stock to be constituted at 5 per cent.Sec. 2. And be it further enacted, That it shall be lawful for the Bank of the United States to lend the said sum, or any part thereof; and it is hereby further declared, that it shall be deemed a good execution of the said power to borrow, for the Secretary of the Treasury, with the approbation of the President of the United States, 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, or for any part thereof bearing an interest of five per centum per annum, transferrable and reimbursable as aforesaid, and to cause the said certificates of stock to be sold: Provided, That no stock be sold under par.
Secretary of the Treasury may employ an agent, &c. One eighth of one per cent. to the agent.Sec. 3. And be it further enacted, That the Secretary of the Treasury be, and he is hereby, authorized, with the approbation of the President of the United States, to employ an agent or agents, for the purpose of obtaining subscriptions to the loan authorized by this act, or of selling any part of the stock to be created by virtue thereof. A commission, not exceeding one eighth of one per cent. on the amount thus sold, or for which subscriptions shall have been thus obtained, may, by the Secretary of the Treasury, be allowed to such agent or agents; and a sum not exceeding four thousand dollars, to be paid out of any moneys in the treasury not otherwise appropriated, is hereby appropriated for that object, and also for defraying the expenses of printing, and issuing the subscription certificates, and certificates of stock, and other expenses incident to the due execution of this act.
So much of the annual appropriation of 10,000,000 dollars as may be sufficient, appropriated for redemption of stock, and interest, of this loan. Commissioners of the sinking fund to apply the sums necessary out of the fund, &c.Sec. 4. And be it further enacted, That so much of the funds constituting the annual appropriation of ten millions of dollars, for the payment of the principal and interest, of the public debt of the United States, as may be sufficient for that purpose, after satisfying the sums necessary for the payment of the interest, and of 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 annually be necessary to discharge the interest accruing on the said stock, and to reimburse the principal, as the same may 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 discharging,And to purchase at a price not above par, &c. by purchase, and at a price, not above par, the principal of the said stock, or any part thereof. 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.
Approved, May 15, 1820.