22 U.S.C. § 286e — Payment of subscriptions to Fund and Bank by United States; issuance of special notes; income covered into Treasury

submitted 81 years ago by ch. 339 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 477 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law lets the Treasury Secretary pay the remaining U.S. subscription owed to the IMF and World Bank. It allows using $8,675,000,000 in bond proceeds and lets the Secretary issue special no-interest notes instead of cash. Any income the U.S. earns back gets deposited in the Treasury.

This section lets the Secretary of the Treasury pay the rest of the United States' membership subscription to the Fund — the part not covered under "subsection (a)," a part of this law not included in the text supplied here — and to pay the U.S. subscription to the Bank whenever payments come due. To make these payments, the Secretary may use, as a public-debt transaction, $8,675,000,000 from the proceeds of any securities later issued under chapter 31 of title 31 (the law governing U.S. government bonds and similar debt). The purposes for which those securities can be issued are expanded to include this payment. Both the payment and any later repayment count as public-debt transactions of the United States. To keep the cost of U.S. participation as low as possible, the Secretary — after paying the Fund subscription and any part of the Bank subscription required under Article II, Section 7(i) of the Bank's Articles of Agreement — must issue special U.S. notes at face value and hand them to the Fund and Bank in exchange for dollars, wherever their Articles of Agreement allow this. These notes are issued under chapter 31 of title 31, whose purposes are again expanded to cover them. The notes carry no interest, cannot be sold or transferred, and must be paid on demand by the Fund or Bank. At any one time, the face value of notes issued to the Fund cannot exceed the U.S. subscription actually paid to the Fund, plus the dollar value of currencies and gold the U.S. has bought back from the Fund. Similarly, notes issued to the Bank cannot exceed the U.S. subscription actually paid to the Bank under Article II, Section 7(i) of the Bank's Articles. Finally, any payment the Fund or Bank makes to the United States as a share of its net income must go into the Treasury as a miscellaneous receipt — ordinary government income.

the actual law source: uscode.house.gov ↗public domain

The Secretary of the Treasury is authorized to pay the balance of the subscription of the United States to the Fund not provided for in subsection (a) and to pay the subscription of the United States to the Bank from time to time when payments are required to be made to the Bank. For the purpose of making these payments, the Secretary of the Treasury is authorized to use as a public-debt transaction $8,675,000,000 of the proceeds of any securities hereafter issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter are extended to include such purpose. Payment under this paragraph of the subscription of the United States to the Fund or the Bank and repayments thereof shall be treated as public-debt transactions of the United States.

For the purpose of keeping to a minimum the cost to the United States of participation in the Fund and the Bank, the Secretary of the Treasury, after paying the subscription of the United States to the Fund, and any part of the subscription of the United States to the Bank required to be made under article II, section 7(i), of the Articles of Agreement of the Bank, is authorized and directed to issue special notes of the United States from time to time at par and to deliver such notes to the Fund and the Bank in exchange for dollars to the extent permitted by the respective Articles of Agreement. The special notes provided for in this paragraph shall be issued under the authority and subject to the provisions of chapter 31 of title 31, and the purposes for which securities may be issued under that chapter are extended to include the purposes for which special notes are authorized and directed to be issued under this paragraph, but such notes shall bear no interest, shall be nonnegotiable, and shall be payable on demand of the Fund or the Bank, as the case may be. The face amount of special notes issued to the Fund under the authority of this paragraph and outstanding at any one time shall not exceed in the aggregate the amount of the subscription of the United States actually paid to the Fund and the dollar equivalent of currencies and gold which the United States shall have purchased from the Fund in accordance with the Articles of Agreement, and the face amount of such notes issued to the Bank and outstanding at any one time shall not exceed in the aggregate the amount of the subscription of the United States actually paid to the Bank under article II, section 7(i) of the Articles of Agreement of the Bank.

Any payment made to the United States by the Fund or the Bank as a distribution of net income shall be covered into the Treasury as a miscellaneous receipt.

Source credit: (July 31, 1945, ch. 339, § 7(b)–(d), 59 Stat. 514; Pub. L. 86–48, § 2, June 17, 1959, 73 Stat. 80; Pub. L. 87–490, § 2, June 19, 1962, 76 Stat. 105.)

history & why it existsrecord from the source credit

1945Enacted · Act of July 31, 1945, ch. 339 · 59 Stat. 514
1959Amended · Pub. L. 86-48 · 73 Stat. 80
1962Amended · Pub. L. 87-490 · 76 Stat. 105

A history note hasn’t been published yet. The record shows enactment by ch. 339 on 1945-07-31.

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