Page 351 TITLE 31MONEY AND FINANCE 5118

Act [amending this section and enacting provisions set

out as notes under this section and sections 5101 and
5112 of this title] and the amendments made by this
Act.
(2) CONCURRENT SUBMISSION.The report required by
paragraph (1) may be incorporated into the annual re-
port of the Director of the United States Mint on the
operations of the mint and assay offices, referred to in
section 1329 of title 44, United States Code.
TERMINATION OF COINAGE METAL FUND
All assets and liabilities of Coinage Metal Fund
transferred to United States Mint Public Enterprise
Fund and such coinage fund to cease to exist as sepa-
rate fund as its activities and functions are subsumed
under and subject to United States Mint Public Enter-
prise Fund, see section 5136 of this title.
5117. Transferring gold and gold certificates
(a) All right, title, and interest, and every
claim of the Board of Governors of the Federal
Reserve System, a Federal reserve bank, and a
Federal reserve agent, in and to gold is trans-
ferred to and vests in the United States Govern-
ment to be held in the Treasury. Payment for
the transferred gold is made by crediting equiva-
lent amounts in dollars in accounts established
in the Treasury under the 15th paragraph of sec-
tion 16 of the Federal Reserve Act (12 U.S.C. 467).
Gold not in the possession of the Government
shall be held in custody for the Government and
delivered on the order of the Secretary of the
Treasury. The Board of Governors, Federal re-
serve banks, and Federal reserve agents shall
give instructions and take action necessary to
ensure that the gold is so held and delivered.
(b) The Secretary shall issue gold certificates
against gold transferred under subsection (a) of
this section. The Secretary may issue gold cer-
tificates against other gold held in the Treas-
ury. The Secretary may prescribe the form and
denominations of the certificates. The amount
of outstanding certificates may be not more
than the value (for the purpose of issuing those
certificates, of 42 and two-ninths dollars a fine
troy ounce) of the gold held against gold certifi-
cates. The Secretary shall hold gold in the
Treasury equal to the required dollar amount as
security for gold certificates issued after Janu-
ary 29, 1934.
(c) With the approval of the President, the
Secretary may prescribe regulations the Sec-
retary considers necessary to carry out this sec-
tion.
(Pub. L. 97258, Sept. 13, 1982, 96 Stat. 984.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code) Source (Statutes at Large)
5117(a) ..... 31:441(1st, last sen-
tences).
Jan. 30, 1934, ch. 6, 2(a), 11,
48 Stat. 337, 342.
5117(b) ..... 31:405b. Jan. 30, 1934, ch. 6, 14(c), 48
Stat. 344; Mar. 18, 1968, Pub.
L. 90269, 12, 82 Stat. 51; re-
stated Oct. 19, 1976, Pub. L.
94564, 8, 90 Stat. 2661.
31:408a(last pro-
viso).
Jan. 30, 1934, ch. 6, 6(last pro-
viso), 48 Stat. 340; Mar. 18,
1968, Pub. L. 90269, 8, 82
Stat. 50.
31:441(2d sentence).
5117(c) ..... 31:822b.
In subsection (a), the words On January 30, 1934 are
omitted as executed. The word gold is substituted for
gold coin and gold bullion for consistency and to
omit unnecessary words. The word transferred is
substituted for pass for consistency in the sub-
section. The words to be held in the Treasury are
added for consistency with the source provisions re-
stated in subsection (b) of the revised section.
In subsection (b), the first sentence is substituted for
31:441(2d sentence) for consistency. The word issued
in 31:405b is omitted as being included in outstand-
ing. The words of 42 and two-ninths dollars a fine
troy ounce) are substituted for at the legal standard
provided in section 449 of this title on October 19, 1976
because that was the legal standard in that section on
that date. The text of 31:449 was repealed by section 6
of the Bretton Woods Agreements Act. The words The
Secretary shall hold . . . in the Treasury . . . as secu-
rity are substituted for security . . . shall be main-
tained in 31:408a(last proviso) because of the source
provisions restated in section 321 of the revised title.
The words gold certificates issued after January 29,
1934 are substituted for gold certificates (including
the gold certificates held in the Treasury for credits
payable therein) for clarity and because of section
5118(c)(1)(A) of the revised title.
In subsection (c), the word regulations is sub-
stituted for rules and regulations, and the word
necessary is substituted for necessary or proper,
to eliminate unnecessary words.
5118. Gold clauses and consent to sue
(a) In this section
(1) gold clause means a provision in or re-
lated to an obligation alleging to give the obli-
gee a right to require payment in
(A) gold;
(B) a particular United States coin or cur-
rency; or
(C) United States money measured in gold
or a particular United States coin or cur-
rency.
(2) public debt obligation means a domes-
tic obligation issued or guaranteed by the
United States Government to repay money or
interest.
(b) The United States Government may not
pay out any gold coin. A person lawfully holding
United States coins and currency may present
the coins and currency to the Secretary of the
Treasury for exchange (dollar for dollar) for
other United States coins and currency (other
than gold and silver coins) that may be lawfully
held. The Secretary shall make the exchange
under regulations prescribed by the Secretary.
(c)(1) The Government withdraws its consent
given to anyone to assert against the Govern-
ment, its agencies, or its officers, employees, or
agents, a claim
(A) on a gold clause public debt obligation or
interest on the obligation;
(B) for United States coins or currency; or
(C) arising out of the surrender, requisition,
seizure, or acquisition of United States coins
or currency, gold, or silver involving the effect
or validity of a change in the metallic content
of the dollar or in a regulation about the value
of money.
(2) Paragraph (1) of this subsection does not
apply to a proceeding in which no claim is made
for payment or credit in an amount greater than
the face or nominal value in dollars of public
debt obligations or United States coins or cur-
rency involved in the proceeding.
(3) Except when consent is not withdrawn
under this subsection, an amount appropriated
Page 352 TITLE 31MONEY AND FINANCE 5119
for payment on public debt obligations and for
United States coins and currency may be ex-
pended only dollar for dollar.
(d)(1) In this subsection, obligation means
any obligation (except United States currency)
payable in United States money.
(2) An obligation issued containing a gold
clause or governed by a gold clause is discharged
on payment (dollar for dollar) in United States
coin or currency that is legal tender at the time
of payment. This paragraph does not apply to an
obligation issued after October 27, 1977.
(Pub. L. 97258, Sept. 13, 1982, 96 Stat. 985; Pub.
L. 99185, 2(d), Dec. 17, 1985, 99 Stat. 1178; Pub.
L. 104208, div. A, title II, 2609, Sept. 30, 1996, 110
Stat. 3009475; Pub. L. 10561, title VI, 641, Oct.
10, 1997, 111 Stat. 1318.)
HISTORICAL AND REVISION NOTES
Revised
Section
Source (U.S. Code) Source (Statutes at Large)
5118(a) ..... 31:773d. Aug. 27, 1935, ch. 780, 49 Stat.
938.
5118(b) ..... 31:315b. Jan. 30, 1934, ch. 6, 5, 48 Stat.
340.
31:773a.
5118(c)(1),
(2).
31:773b.
5118(c)(3) 31:773c.
5118(d) ..... 31:463. June 5, 1933, ch. 48, 1, 48 Stat.
113.
31:463(note). Oct. 28, 1977, Pub. L. 95147,
4(c), 91 Stat. 1229.
In subsection (a), before clause (1), the words the
phrase are omitted as surplus. In clause (1), the words
declared to be against public policy by section 463 of
this title are omitted as surplus. Clause (2) is sub-
stituted for 31:773d(words after semicolon) for consist-
ency in the revised title and to eliminate unnecessary
words.
In subsection (b), the words after January 30, 1934
in 31:315b are omitted as executed. The words that
may be lawfully held are substituted for which may
be lawfully acquired and are legal tender for public and
private debts in 31:773a for consistency in the sub-
section and to eliminate unnecessary words. The words
and that the owners of the gold clause securities of
the United States shall be, at their election, entitled to
receive immediate payment of the stated dollar
amount thereof with interest to the date of payment or
to prior maturity or to prior redemption date, which-
ever is earlier in section 1 of the Act of August 27, 1935
(ch. 780, 49 Stat. 938), are omitted as expired. The words
make the exchange are substituted for make such
exchanges and payments upon presentation hereunder
to eliminate unnecessary words. The words No gold
shall after January 30, 1934, be coined in 31:315b are
omitted because of section 5112 of the revised title. The
text of 31:315b(proviso) is omitted as unnecessary be-
cause of the restatement. The text of 31:315b(last sen-
tence) is omitted as executed.
In subsection (c)(1), before clause (A), the word Gov-
ernment is substituted for United States for con-
sistency in the revised title and with other titles of the
United States Code. The words to anyone are added
for clarity. The words whether by way of suit, coun-
terclaim, set-off, recoupment, or other affirmative ac-
tion or defense in its own name or in the name of are
omitted as surplus. The word employees is added for
consistency in the revised title and with other titles of
the Code. The word instrumentalities is omitted as
unnecessary because of section 101 of the revised title.
The word claim is substituted for right, privilege,
or power to eliminate unnecessary words and for con-
sistency in the revised title and with other titles of the
Code. The words in any proceeding of any nature
whatsoever are omitted as surplus. In clause (C), the
words or demand are omitted as surplus.
In subsection (c)(2), the words any suit commenced
prior to August 27, 1935, or which may be commenced
by January 1, 1936 are omitted as executed. The words
referred to in this section are omitted as surplus.
In subsection (c)(3), the words may be expended are
substituted for an amount appropriated or authorized
to be expended and shall be available for or expended
in, and the words dollar for dollar are substituted
for on an equal and uniform dollar for dollar basis,
to eliminate unnecessary words.
In subsection (d)(1), the words including every obli-
gation of and to the United States are omitted as sur-
plus. The text of 31:463(b)(words after semicolon) is
omitted as unnecessary because of the restatement.
CONSTITUTIONALITY
For information regarding constitutionality of sec-
tion 1 of act June 5, 1933, cited as a source for provi-
sions of this section, see Congressional Research Serv-
ice, The Constitution of the United States of America:
Analysis and Interpretation, Appendix 1, Acts of Con-
gress Held Unconstitutional in Whole or in Part by the
Supreme Court of the United States.
AMENDMENTS
1997Subsec. (d)(2). Pub. L. 10561 struck out at end
This paragraph shall apply to any obligation issued on
or before October 27, 1977, notwithstanding any assign-
ment or novation of such obligation after October 27,
1977, unless all parties to the assignment or novation
specifically agree to include a gold clause in the new
agreement. Nothing in the preceding sentence shall be
construed to affect the enforceability of a Gold Clause
contained in any obligation issued after October 27, 1977
if the enforceability of that Gold Clause has been fi-
nally adjudicated before the date of enactment of the
Economic Growth and Regulatory Paperwork Reduc-
tion Act of 1996.
1996Subsec. (d)(2). Pub. L. 104208 inserted at end
This paragraph shall apply to any obligation issued on
or before October 27, 1977, notwithstanding any assign-
ment or novation of such obligation after October 27,
1977, unless all parties to the assignment or novation
specifically agree to include a gold clause in the new
agreement. Nothing in the preceding sentence shall be
construed to affect the enforceability of a Gold Clause
contained in any obligation issued after October 27, 1977
if the enforceability of that Gold Clause has been fi-
nally adjudicated before the date of enactment of the
Economic Growth and Regulatory Paperwork Reduc-
tion Act of 1996.
1985Subsec.(b). Pub. L. 99185 struck out or de-
liver after pay out and inserted (other than gold
and silver coins) before that may be lawfully held.
EFFECTIVE DATE OF 1985 AMENDMENT
Amendment by Pub. L. 99185 effective Oct. 1, 1985,
except that no coins may be issued or sold under sec-
tion 5112(i) of this title before Oct. 1, 1986, see section
3 of Pub. L. 99185, set out as a note under section 5112
of this title.
5119. Redemption and cancellation of currency
(a) Except to the extent authorized in regula-
tions the Secretary of the Treasury prescribes
with the approval of the President, the Sec-
retary may not redeem United States currency
(including Federal reserve notes and circulating
notes of Federal reserve banks and national
banks) in gold. However, the Secretary shall re-
deem gold certificates owned by the Federal re-
serve banks at times and in amounts the Sec-
retary decides are necessary to maintain the
equal purchasing power of each kind of United
States currency. When redemption in gold is au-
thorized, the redemption may be made only in
gold bullion bearing the stamp of a United