S.Amdt. 2592

SA 2592. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill H.R. 5515, to authorize appropriations for fiscal year
2019 for military activities of the Department of Defense, for military
construction, and for defense activities of the Department of Energy,
to prescribe military personnel strengths for such fiscal year, and for
other purposes; which was ordered to lie on the table; as follows:

At the appropriate place in title X, insert the following:

SEC. ___. INVESTMENT OF ASSETS OF JAMES MADISON MEMORIAL
FELLOWSHIP TRUST FUND.

Subsection (b) of section 811 of the James Madison Memorial
Fellowship Act (20 U.S.C. 4510) is amended to read as
follows:
``(b)(1) It shall be the duty of the Secretary of the
Treasury to invest in full the amounts appropriated to the
fund.
``(2) Subject to paragraph (3), investments of amounts
appropriated to the fund shall be made in public debt
securities of the United States with maturities suitable to
the fund. For such purpose, such obligations may be acquired
(A) on original issue at the issue price, or (B) by purchase
of outstanding obligations at the market price. The purposes
for which obligations of the United States may be issued
under chapter 31 of title 31, United States Code, are hereby
extended to authorize the issuance at par of special
obligations exclusively to the fund. Such special obligations
shall bear interest at a rate equal to the average rate of
interest, computed as to the end of the calendar month next
preceding the date of such issue, borne by all marketable
interest-bearing obligations of the United States then
forming a part of the public debt, except that where such
average rate is not a multiple of \1/8\ of 1 percent, the
rate of interest of such special obligations shall be the
multiple of \1/8\ of 1 percent next lower than such average
rate. Such special obligations shall be issued only if the
Secretary determines that the purchases of other interest-
bearing obligations of the United States, or of obligations
guaranteed as to both principal and interest by the United
States or original issue or at the market price, is not in
the public interest.
``(3)(A) Notwithstanding paragraph (2), upon receiving a
determination of the Board described in subparagraph (B), the
Secretary shall invest up to 40 percent of the fund's assets
in securities other than public debt securities of the United
States, provided that the securities are traded in
established United States markets.
``(B) A determination described in this subparagraph is a
determination by the Board that investments as described in
subparagraph (A) are necessary to enable the Foundation to
carry out the purposes of this title without any diminution
of the number of fellowships provided under section 804.
``(C) Nothing in this paragraph shall be construed to limit
the authority of the

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Board to increase the number of fellowships provided under
section 804, or to increase the amount of the fellowship
authorized by section 809, as the Board considers appropriate
and is otherwise consistent with the requirements of this
title.''.
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