Is that the true nature of the redemption, "they" being FRN that shall be redeemed on demand?

Since the subject of that code/statute is FRN, it seems most reasonable to me that FRN is the object of redemption.

If that indeed is the case, and since nowhere I can find are FRN referred to as being redeemed for USN, it seems more reasonable to conclude it's a question of venue.

What do you think?