7 4TH C ONGRESS . SESS . II. CH. 32. JANUARY 27, 1936 . receive, at his option, under such rules and regulations as the Administrator may prescribe, either the certificate under section 501 of such Act, as amended, or payment under this Act . SEC . 4. The amount certified pursuant to section 1 of this Act shall be paid to the veteran or his estate on or after June 15, 1936, by the Secretary of the Treasury by the issuance of bonds of the United States, registered in the name of the veteran only, in denom- inations of $50 having a total face value up to the highest multiple of $50 in the amount certified as due the veteran, and the difference between the amount certified as due the veteran and the face amount of the bonds so issued shall be paid to the veteran or his estate by the Secretary of the Treasury out of the fund created by section 505 of the World War Adjusted Compensation Act, as amended . The bonds shall be dated June 15, 1936, and shall mature on June 15, 1945, but shall be redeemable at the option of the veteran or his estate at any time, at such places, including post offices, as the Secretary of the Treasury may designate . Such bonds shall be issued under the authority and subject to the provisions of the Second Liberty Bond Act, as amended, and shall not be transferable, assignable, subject to attachment, levy, or seizure under any legal or equitable process and shall be payable only to the veteran or, in case of death or incompetence of the veteran, to the representative of his estate . In teres t on each bond issue d her eunde r sha ll ac crue at the rate of 3 per centum per annum from June 15, 1936, to date of maturity or payment of the principal of the bond, whichever is earlier, and will be paid with such principal : Provided, however, That no interest will be paid on any bond redeemed prior to June 15, 1937. The provisions of this section shall be carried out subject to regulations of the Secretary of the Treasury to be issued from time to time to effectuate the purposes of this Act . SEC . 5 . The Secretary of the Treasury is authorized a nd directed to redeem from the United States Government life insurance fund al l adjusted -service c ertificate s held by that fund on account of loans made thereon, and to pay to the United States Government li fe insurance fund the amount of the outstanding liens against such certificates, including all interest due or accrued, together with such am ounts as may be due under subdivision (m) of section 502 of the World War Adjusted Compensation Act, as amended . The Secretary of the Treasury is authorized and directed to make such payment by issuing, to the United States Government life insurance fund, bonds of the United States which shall bear interest at the rate of 41/2 per centum per annum . No such bonds shall mature or be callable until the expiration of a peri od of at l east ten y ears from date of issue, except that any such bond shall be redeemed by the Secretary of the Treasury and the principal and accrued interest thereon paid to the United States Government life insurance fund at any time upon certification by the Administrator of Veterans' Affairs that the amount represented by such bond is required to meet current liabilities . Bonds issued for the purposes of this section shall be issued under the Second Liberty Bond Act, as amended, subject t o the prov isions of this secti on . SEC . 6 . The adjusted-service certificate fund is hereby made avail- able for payments authorized by this Act . SEC. 7. Notwithstanding the provisions of Public Law Numbered 262, Seventy-fourth Congress, approved August 12, 1935, no deduc- tions on account of any indebtedness of the veteran to the United States, except on account of any lien against the adjusted-service certificate authorized by law, shall be made from the adjusted-service Issuance of bonds. Post , pp . 1396,19 82 Vol. 43, p. 128. U.S.C.,p . 1685 . Dat e and maturity. Optional redemp- tion . U. S. C., pp. 1418, 14 19 . Nontransferable . Interest . Proviso . Exception . Regulations . U. S. G ove rnm ent life insurance fund . R edempti on of c ertif- icates held by. Vol. 43, p . 126; U. S. C. E p. 1685. xch ange for bonds Maturity . Provisions to apply . U. S. C., pp. 1418, 1419 . Availability of cer- tificate fund . No deductio ns . Ante, p. 607. Excep tion . 1101
