31 U.S.C. § 3102 — Bonds

(a) With the President’s approval, the Secretary may borrow on the United States Government’s credit amounts needed for expenditures authorized by law. The Secretary may issue Government bonds for the borrowed amounts and may buy, redeem, and refund them under section 3111. The Secretary may issue these bonds to the public and to Government accounts at any annual interest rate and may set conditions under section 3121. (b) The Secretary must first offer the bonds as a popular loan under rules that give people in the United States, as nearly as possible, an equal chance to subscribe. The Secretary may use another offering method when the Secretary decides it is in the public interest. (c)(1) When the Secretary decides it is in the public interest, the Secretary may: (A) give full allotments for smaller applications filed before the deadline; (B) reject or reduce late applications or applications for larger amounts; (C) reject or reduce applications from incorporated banks and trust companies for their own accounts, while giving full or increased allotments to other subscribers; and (D) use a graduated allotment scale. (2) The Secretary must issue rules that treat similarly situated popular-loan subscribers alike when reducing or increasing an allotment. (d) The Secretary may make special subscription arrangements for members of the armed forces, but their bonds must be the same as other bonds of that issue. (e) The Secretary may dispose of any part of an offering that is not taken and may set its price and method of disposition.