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20 U.S.C. § 54Appropriation of interest

submitted 44 years ago by Pub. L. 97-199 to r/title-20-EDUCATION · 170 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law sets up funding for the Smithsonian Institution from James Smithson's original gift. The government invests the $541,379.63 gift and uses only the interest to run the Smithsonian forever. The original amount, the principal, can never be spent.

This section explains how the Smithsonian Institution's original money is handled. James Smithson left the Smithsonian a gift of money. The part that came in as cash, $541,379.63, was paid into the U.S. Treasury. This section directs that the money be lent to the Treasury and invested in U.S. government debt securities. The maturities of those securities are chosen by the Smithsonian Institution, and the interest rate is set by the Secretary of the Treasury, based on current market yields on similar U.S. government debt. The interest earned on this investment is appropriated (set aside) to permanently maintain and support the Smithsonian Institution. All spending for the Smithsonian's purposes must come only from this interest, never from the original principal amount. Finally, all the money and stock that has been or will be received into the Treasury from the Smithson fund is pledged to pay back the Treasury for the amounts this section appropriates.
the actual law source: uscode.house.gov ↗public domain

So much of the property of James Smithson as has been received in money, and paid into the Treasury of the United States, being the sum of $541,379.63, shall be lent to the United States Treasury and invested in public debt securities with maturities requested by the Smithsonian Institution bearing interest at rates determined by the Secretary of the Treasury, based upon current market yields on outstanding marketable obligations of the United States of comparable maturities, and this interest is hereby appropriated for the perpetual maintenance and support of the Smithsonian Institution; and all expenditures and appropriations to be made, from time to time, to the purposes of the Institution shall be exclusively from the accruing interest, and not from the principal of the fund. All the moneys and stocks which have been, or may hereafter be, received into the Treasury of the United States, on account of the fund bequeathed by James Smithson, are hereby pledged to refund to the Treasury of the United States the sums hereby appropriated.

Source credit: (R.S. § 5590; Pub. L. 97–199, § 1, June 22, 1982, 96 Stat. 121.)

history & why it existsrecord from the source credit
  • 1982Enacted · Pub. L. 97-199 · 96 Stat. 121

A history note hasn’t been published yet. The record shows enactment by Pub. L. 97-199 on 1982-06-22.

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