Source: https://collections.lib.utah.edu/details?id=1138964
Timestamp: 2019-04-22 16:38:00+00:00

Document:
582 for the generation or transmission of electric power" to issue bonds not exceeding $50,000,000 in amount.471 Similar author- ity was later granted for TVA to issue bonds in a like amount to enable the extension of credit to specified nonfederal agencies to assist them in acquiring, improving, and operating existing power facilities.472 But the foregoing authorizations were re- placed in 1939, at which time TVA was authorized to issue bonds not to exceed $61,500,000 to finance acquisition, rehabili- tation, and connection of property owned by private utilities.473 It should be noted that these bonding provisions unneces- sarily separate the funding arrangements with respect to prosecution of water-resource projects from other funding ar- rangements of the Treasury Department. For equally ef- fective borrowing authority could be made available by au- thorizing advances to a federal constructing agency and mak- ing such advances a "public-debt" transaction, empowering the Secretary of the Treasury to issue securities to obtain the required funds.474 This approach is not without precedent.475 With respect to the need for financial flexibility resulting from varying expenses of operating power-market facilities and the need to maintain uninterrupted service, the TVA Act furnishes another unique example. Under its authority to reserve revenues, TVA may except such part thereof as it deems necessary "in conducting its business in generating, transmitting, and distributing electric energy."476 Such funds are in addition to the continuing fund of $1,000,000 available to TVA to defray emergency expenses and to insure continu- 471 Act of May 18, 1933, § 15, 48 Stat. 58, 66, 16 U. S. O. 831n. 472 § 15a, as added by Act of August 31, 1935, § 9, 49 Stat. 1075, 1079, 16 U. S. C. 831n-l. 473 §§ 15b, 15c, as added by Act of July 26, 1939, 53 Stat. 1083, 16 U. S. G. 831n-2, 831n-3. 474 Under the Second Liberty Bond Act, as amended, the Secretary of the Treasury may borrow on the credit of the United States and issue bonds for sums necessary to meet authorized expenditures for public purposes. Act of September 24, 1917, § 1, 40 Stat. 288, as amended, 31 U. S. O. 752. 475 This was done, for example, in the case of the Defense Production Act of 1950. Act of September 8,1950, § 304 (b), 64 Stat. 798, -. 478 Act of May 18, 1933, § 26, 48 Stat. 58, 71, as amended, 16 U. S. C. 831y.

References: § 15
 § 15
 § 9
 § 1
 § 304
 § 26