Editor’s note: Chapter 5, with subchapters I through VI, of this title were enacted by PL 5-121. Chapters 1 through 4 were reserved. Title 58 itself was not given a title by PL 5-121, but the chapter title designated reflects the name of the Act.
SUBCHAPTER V
FSM Fiscal Agents
SECTIONS
§ 551. Designation of banking firms or associations.
§ 552. Fidelity Bonds.
§ 553. Authority of Secretary.
§ 554. Unclaimed funds.
§ 555. Lost or destroyed Bonds; Security; Face statements.
Upon the recommendation of the committee, the Secretary may designate responsible banking firms, associations, or incorporated banking institutions, having a paid-up capital and surplus of not less than U.S. $100 million, as an FSM Fiscal Agent for the payment of the Bonds. The FSM Fiscal Agent selected as Trustee shall have a paid-up capital and surplus of not less than U.S. $500 million. An FSM Fiscal Agent may be organized under the laws of the United States of America, any of its constituent states (including the District of Columbia), or any member state of the Organization for Economic Cooperation and Development.
With the approval of the committee, the Secretary may fix the amount of and require bonds from any FSM Fiscal Agent, conditioned on the faithful performance of its duties as an FSM Fiscal Agent.
Subject to the approval of the committee, the Secretary may do all things necessary or proper to effectuate the purposes of this subchapter, including, among others, the making of such arrangements with any FSM Fiscal Agent as may be necessary including the compensation, if any, of any FSM Fiscal Agent for services under this subchapter, and the time when funds for the redemption of Bonds shall be remitted to it.
Source: PL 5-121 § 25.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.
Whenever any moneys held by an FSM Fiscal Agent in trust for the payment of the principal of, interest or premium, if any, on or discharge of, any Bonds shall have remained unclaimed for seven years after the date when such became due and payable, either on interest payment dates, at their stated maturity dates or by call for earlier redemption, the Secretary may after adequate public notice and at such time as he may determine, instruct FSM Fiscal Agents to return any such money originally transferred to meet the payments of the Bonds and deposit it with such FSM Fiscal Agent as the committee shall determine, and such money shall thereafter be treated in all respects as part of the Bond Fund, and the owner of the Bond or Bonds affected thereby shall no longer have any claim on such money.
(1) Whenever it appears to the Secretary upon competent proof that any Bond has been lost or destroyed and the required security has been deposited with the Trustee, he may issue or cause to be issued Bonds similar as to form and content. If the indebtedness evidenced by the instrument has matured and is due and payable, he may cause it to be paid if the records of the Trustee show the Bond is outstanding and unpaid.
(2) Before the Secretary may cause to be issued a new Bond or cause to be paid the indebtedness represented by a lost or destroyed Bond, the holder of the Bond shall give security in the form of a bond or indemnity (as the Trustee reasonably determines) to indemnify the FSM against loss or damage that may be incurred on account of the lost or destroyed Bond. The security may be specified by, is subject to the approval of, and, after approval is endorsed thereon, shall be filed with the Trustee.
(3) Every replacement Bond shall state upon its face the number and denomination of the Bond for which it is issued; that it is issued in the place of the Bond claimed to have been lost or destroyed; that it is issued as a duplicate; and that if both the original and duplicate instruments are presented to and paid by the Secretary or an FSM Fiscal Agent, the Secretary shall not be held responsible for the duplicate payment but may rely on the security given.
Source: PL 5-121 § 27.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code.