An Act to exempt certain pension and other employee trusts from the laws of the District of Columbia relating to perpetuities, restraints on alienation, and accumulation of income
PL 86-201 (H.R.8527), enacted 08/25/1959

428 
PUBLIC LAW 86-200-AUG. 25, 1969 
[78 STAT. 
Public Law 86-200 
August 25, 1959 
AN ACT 
[H. R. 4328] 
^ ^ 
To amend provisions of the Canal Zone Code relative to the handling of the 
excess funds of the Panama Canal Company, and for other purposes. 
P an am a Canal 
r HI! am a ^.anai 
^^ ^^ enocted hy the Senate and the House of Representatives 
of the. 
^Excess fund 
United States of America 
in Congress assembled, That the fund 
of $10,000,000 now maintained by the Panama Canal Company in the 
Treasury pursuant to section 254 of title 2 of the Canal Zone Code, 
as added by the Act of June 29, 1948 (eh. 706, 62 Stat. 1076), shall, 
as of the date of enactment of this Act, be deemed to have been paid 
into the Treasury as a dividend of said corporation. 
62 Stat 1076 
^^^' ^' ^^^^^^n 254 of title 2 of the Canal Zone Code, as added by 
the Act of June 29,1948, is amended to read as follows: 
"SEC. 254. BORROWING FROM TREASURY.—The corporation may bor-
row from the Treasury, for any of the purposes of the corporation, 
sums of money not to exceed a total of $10,000,000 outstanding at any 
time. For this purpose the corporation may issue to the Secretary 
of the Treasury its notes, or other obligations, which shall have 
maturities agreed upon by the corporation and the Secretary of the 
Treasury, but shall be redeemable at the option of the corporation be-
fore maturity in such manner as may be stipulated in such obligations. 
Each such obligation shall bear interest at a rate determined by the 
Secretary of the Treasury, taking into consideration the current aver-
age rate on current marketable obligations of the United States of 
comparable maturities as of the last day of the month preceding the 
issuance of the obligation of the corporation. 
The Secretary of the 
Treasurj^ is authorized and directed to purchase .any obligations of the 
corporation to be issued hereunder, and for such purpose the Secretary 
of the Treasury is authorized to use as a public-debt transaction the 
~ 
proceeds from the sale of any securities issued under the Second Lib-
si us^c' 7^74%). 
®^^y Bond Act, as amended, and the purposes for which securities may 
be issued under the Second Liberty Bond Act, as amended, are ex-
tended to include any purchases of the corporation's obligations here-
under." 
Approved August 25, 1959. 
Public Law 86-201 
« 
, « 
AN ACT 
August 25, 1959 
[H. R. 8527] 
To exempt certain pension and other employee trusts from the laws of the District 
of Columbia relating to i>eri)etuities, restraints on alienation, and accumulation 
of income. 
a n d 
e mp 1 o y e e 
Be it enacted hy the Senate and House of Representatives 
of the 
?*^^l'i'.ft"/„^f r United States of America in Congress assembled, That any pension, 
profit-sharing, stock bonus, annuity, disability, death benefit, or other 
employee trusts heretofore or hereafter established by employers for 
the purpose of distributing the income or the principal thereof, or 
the principal and income thereof to some or all of their employees, or 
the beneficiaries of such employees, shall not be invalid as violating 
any laws of the District of Columbia against perpetuities, against 
restraints on the power of alienation of title to property, or against 
accumulation of income, but such trusts may continue for such period 
of time as may be required by the provisions thereof to accomplish 
the purposes for which they are established. 
Approved August 25, 1959,