Keeping money due States in default

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Title 31—MONEY AND FINANCE > SUBTITLE III—FINANCIAL MANAGEMENT > CHAPTER 37—CLAIMS > SUBCHAPTER II—CLAIMS OF THE UNITED STATES GOVERNMENT

This text was captured on Sep 16, 2026. It is a snapshot, not a live feed, so check the official code before relying on it.

Text

The Secretary of the Treasury shall keep the necessary amount of money the United States Government owes a State when the State defaults in paying principal or interest on investments in stocks or bonds the State issues or guarantees and that the Government holds in trust. The money shall be used to pay the principal or interest or reimburse, with interest, money the Government advanced for interest due on the stocks or bonds.

( Pub. L. 97–258 , Sept. 13, 1982 , 96 Stat. 972 .)

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