22 U.S.C. § 286e–2 — Loans to Fund
submitted 81 years ago by Pub. L. 87-490 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 1,678 words · no verdicts yet
This law lets the Treasury Secretary lend U.S. money to the IMF to help stabilize the world's finances, up to limits Congress sets in advance. It authorizes loans through several IMF borrowing arrangements, including the New Arrangements to Borrow. Loans require certifications to Congress and expire on December 31, 2030.
(a) Limitations. This subsection authorizes several rounds of loans from the U.S. Treasury to the International Monetary Fund, each tied to a specific IMF decision.
(1) To carry out IMF decisions from January 5, 1962, February 24, 1983, and January 27, 1997 — as those decisions have since been amended — the Secretary of the Treasury may lend the Fund up to the equivalent of 6,712,000,000 Special Drawing Rights, limited to what Congress appropriates in advance. Before activating any of this, the Secretary must certify that the Fund needs extra resources to prevent or handle a threat to the international monetary system, and that the Fund has already tried other ways to get funding. Any loan must also take into account the United States' own balance-of-payments and reserve position, both now and looking ahead.
(2) To carry out a one-time IMF decision expanding the "New Arrangements to Borrow" (NAB) — a standing IMF borrowing arrangement — and to make it broader and more flexible, as called for in the G-20 Leaders' 2009 London Statement, the Secretary may direct the U.S. Executive Director to agree to these NAB changes, and may lend up to the dollar equivalent of 75,000,000,000 Special Drawing Rights, on top of amounts already authorized, limited to what Congress appropriates in advance. Before activation, the Secretary must report to Congress on whether the extra resources are needed and whether the Fund explored other funding first. Before instructing the Executive Director to consent to the NAB changes, the Secretary must also consult Congress about the amendments — including the rules for using NAB resources, which countries have committed money and how much, and how the U.S. has worked to keep its own share of the expanded NAB at no more than 20 percent (about its share as of June 24, 2009). Any loan under this paragraph must also respect the U.S.'s balance-of-payments and reserve position.
(3) To carry out that same one-time NAB-expansion decision, the Secretary may also lend up to the dollar equivalent of 28,202,470,000 Special Drawing Rights, on top of previously authorized amounts, after reporting to Congress on the same two questions — whether extra resources are needed, and whether the Fund tried other funding first.
(4) The authority to make these loans expires five years after December 16, 2009 — unless the Secretary, at least 60 days before that expiration (or 60 days before the NAB decision comes up for renewal, whichever comes first), certifies to Congress that: (A) no NAB changes will stop the Secretary from being able to review the NAB decision at least every five years, or from withdrawing the U.S. from the NAB as current rules allow; and either (B)(i) the IMF will only borrow under the NAB when it needs to supplement its quota resources to handle a threat to the international monetary system, or (ii) the IMF has already fully explored other funding before activating the NAB for that purpose, or (iii) keeping the U.S.'s NAB contribution at its current relative size, or smaller, serves the United States' strategic economic interest.
(5) At least 15 days before sending that certification, the Secretary must consult with Congress about it.
(6) In any case, the authority to make loans under this section expires entirely on December 31, 2030.
(b) Authorization of appropriations; repayments available for loans to Fund. Congress authorizes the money to back these loans: 6,712,000,000 Special Drawing Rights for the loans described in (a)(1), and up to the dollar equivalent of 75,000,000,000 Special Drawing Rights for the loans in (a)(2) — both subject to the same certification or reporting steps, and both staying available until spent. When the Fund repays the principal on these loans, that repaid money stays available for future Fund loans too, unless Congress passes a law taking it back.
(c) Interest and charges covered into Treasury; additional authorization of appropriations for payment of charges for purchase of currencies or gold from Fund. Interest and other charges the U.S. earns on these loans go into the Treasury as ordinary income. Congress also authorizes whatever additional money is needed to cover charges when the U.S. buys currencies or gold from the Fund.
(d) Amendment to Executive Directors' decision prohibited; conditions. Unless Congress passes a law allowing it, neither the President, the Secretary, nor anyone else acting for the United States may direct the U.S. Executive Director to agree to any amendment of the 1983 or 1997 Fund decisions, if that amendment would significantly change the amount, terms, or conditions of U.S. participation in the General Arrangements to Borrow or the New Arrangements to Borrow.
(e) New requirement for activation of the new arrangements to borrow. Before activating the loans in (a)(1), (a)(2), (a)(3), (b)(1), or (b)(2), the Secretary must also certify and report that (A) the IMF's own one-year lending capacity — not counting borrowed money — is expected to drop below 100,000,000,000 Special Drawing Rights during the activation period, and (B) activating the NAB serves the United States' strategic economic interest, explaining why. Before sending any of these certifications, the Secretary must consult with Congress first.
(f) Appropriate congressional committees, defined. Throughout this section, "appropriate congressional committees" means the Senate Committees on Appropriations and Foreign Relations, and the House Committees on Appropriations and Financial Services.
In order to carry out the purposes of the decisions of January 5, 1962, February 24, 1983, and January 27, 1997, as amended in accordance with their terms, of the Executive Directors of the International Monetary Fund, the Secretary of the Treasury is authorized to make loans, in an amount not to exceed the equivalent of 6,712,000,000 Special Drawing Rights, limited to such amounts as are provided in advance in appropriations Acts, except that prior to activation, the Secretary of the Treasury shall certify that supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the Fund has fully explored other means of funding, to the Fund under article VII, section 1(i), of the Articles of Agreement of the Fund. Any loan under the authority granted in this subsection shall be made with due regard to the present and prospective balance of payments and reserve position of the United States.
In order to carry out the purposes of a one-time decision of the Executive Directors of the International Monetary Fund (the Fund) to expand the resources of the New Arrangements to Borrow, established pursuant to the decision of January 27, 1997 referred to in paragraph (1) above, and to make other amendments to the New Arrangements to Borrow to achieve an expanded and more flexible New Arrangements to Borrow as contemplated by paragraph 17 of the G–20 Leaders’ Statement of April 2, 2009 in London, the Secretary of the Treasury is authorized to instruct the United States Executive Director to consent to such amendments notwithstanding subsection (d) of this section, and to make loans, in an amount not to exceed the dollar equivalent of 75,000,000,000 Special Drawing Rights, in addition to any amounts previously authorized under this section and limited to such amounts as are provided in advance in appropriations Acts, except that prior to activation, the Secretary of the Treasury shall report to Congress on whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding, to the Fund under article VII, section 1(i), of the Articles of Agreement of the Fund: Provided, That prior to instructing the United States Executive Director to provide consent to such amendments, the Secretary of the Treasury shall consult with the appropriate congressional committees on the amendments to be made to the New Arrangements to Borrow, including guidelines and criteria governing the use of its resources; the countries that have made commitments to contribute to the New Arrangements to Borrow and the amount of such commitments; and the steps taken by the United States to expand the number of countries so the United States share of the expanded New Arrangements to Borrow remains not greater than 20 percent, which approximates the United States share as of June 24, 2009: Provided further, That any loan under the authority granted in this subsection shall be made with due regard to the present and prospective balance of payments and reserve position of the United States.
In order to carry out the purposes of a one-time decision of the Executive Directors of the International Monetary Fund (the Fund) to expand the resources of the New Arrangements to Borrow, established pursuant to the decision of January 27, 1997, referred to in paragraph (1), the Secretary of the Treasury is authorized to make loans, in an amount not to exceed the dollar equivalent of 28,202,470,000 of Special Drawing Rights, in addition to any amounts previously authorized under this section, except that prior to activation of the New Arrangements to Borrow, the Secretary of the Treasury shall report to Congress whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding to the Fund.
The authority to make loans under this section shall expire on the date that is 5 years after December 16, 2009, unless the Secretary of the Treasury, not later than 60 days before such expiration date or 60 days prior to the renewal of the decision governing the New Arrangements to Borrow (NAB), whichever occurs first, certifies to the appropriate congressional committees, that—
no amendments made, or anticipated to be made, to the NAB to achieve an expanded and more flexible NAB, as described in paragraph 17 of the G20 Leaders’ Statement at the 2009 London Summit, will impair the ability of the Secretary of the Treasury to consider a renewal of the NAB decision at intervals no greater than 5 years and to withdraw the adherence of the United States to the NAB decision as is currently provided under paragraph 19 of the New Arrangement to Borrow, adopted by the Executive Board of the International Monetary Fund (IMF) on January 27, 1997; and
the IMF will borrow resources from members under the NAB only when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system;
the IMF has, prior to any activation of the NAB, fully explored other means of funding to supplement any potential shortfall in quota resources necessary to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system; or
it is in the United States’ strategic economic interest to maintain the relative size or lower of the United States contribution to the NAB as in effect on the date of the certification.
Not later than 15 days before submitting the certification under paragraph (4), the Secretary of the Treasury shall consult with the appropriate congressional committees regarding such certification.
The authority to make loans under this section shall expire on December 31, 2030.
For the purpose of making loans to the International Monetary Fund pursuant to subsection (a)(1) of this section, there is authorized to be appropriated 6,712,000,000 Special Drawing Rights, except that prior to activation, the Secretary of the Treasury shall certify whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and that the Fund has fully explored other means of funding, to remain available until expended to meet calls by the International Monetary Fund. Any payments made to the United States by the International Monetary Fund as a repayment on account of the principal of a loan made under this section shall continue to be available for loans to the International Monetary Fund, only to the extent that amounts available for such loans are not rescinded by an Act of Congress.
For the purpose of making loans to the International Monetary Fund pursuant to subsection (a)(2) of this section, there is hereby authorized to be appropriated not to exceed the dollar equivalent of 75,000,000,000 Special Drawing Rights, in addition to any amounts previously authorized under this section, except that prior to activation, the Secretary of the Treasury shall report to Congress on whether supplementary resources are needed to forestall or cope with an impairment of the international monetary system and whether the Fund has fully explored other means of funding, to remain available until expended to meet calls by the Fund. Any payments made to the United States by the Fund as a repayment on account of the principal of a loan made under this section shall continue to be available for loans to the Fund, only to the extent that amounts available for such loans are not rescinded by an Act of Congress.
Payments of interest and charges to the United States on account of any loan to the International Monetary Fund shall be covered into the Treasury as miscellaneous receipts. In addition to the amount authorized in subsection (b), there is authorized to be appropriated such amounts as may be necessary for the payment of charges in connection with any purchases of currencies or gold by the United States from the International Monetary Fund.
Unless the Congress by law so authorizes, neither the President, the Secretary of the Treasury, nor any other person acting on behalf of the United States, may instruct the United States Executive Director to the Fund to consent to any amendment to the Decision of February 24, 1983, or the Decision of January 27, 1997, of the Executive Directors of the Fund, if the adoption of such amendment would significantly alter the amount, terms, or conditions of participation by the United States in the General Arrangements to Borrow or the New Arrangements to Borrow, as applicable.
The Secretary of the Treasury shall include in the certification and report required by paragraphs (a)(1), (a)(2), (a)(3), (b)(1), and (b)(2) of this section prior to activation an additional certification and report that—
the one-year forward commitment capacity of the IMF (excluding borrowed resources) is expected to fall below 100,000,000,000 Special Drawing Rights during the period of the NAB activation; and
activation of the NAB is in the United States strategic economic interest with the reasons and analysis for that determination.
Prior to submitting any certification and report required by paragraphs (a)(1), (a)(2), (b)(1), and (b)(2) of this section, the Secretary of the Treasury shall consult with the appropriate congressional committees.
In this section, the term “appropriate congressional committees” means the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and Financial Services of the House of Representatives.
Source credit: (July 31, 1945, ch. 339, § 17, as added Pub. L. 87–490, § 1, June 19, 1962, 76 Stat. 105; amended Pub. L. 94–564, § 4, Oct. 19, 1976, 90 Stat. 2661; Pub. L. 98–181, title I [title VIII, § 802(a)(1)–(3)], Nov. 30, 1983, 97 Stat. 1268; Pub. L. 105–277, div. A, § 101(d) [title VI, § 609], Oct. 21, 1998, 112 Stat. 2681–150, 2681–224; Pub. L. 111–32, title XIV, § 1401, June 24, 2009, 123 Stat. 1916; Pub. L. 111–117, div. F, title VII, § 7090(b), (c), Dec. 16, 2009, 123 Stat. 3406; Pub. L. 114–113, div. K, title IX, § 9001, Dec. 18, 2015, 129 Stat. 2829; Pub. L. 116–136, div. B, title XI, § 21012(b)(5)(A), Mar. 27, 2020, 134 Stat. 595; Pub. L. 118–47, div. F, title VII, § 7071(e)(1), Mar. 23, 2024, 138 Stat. 852.)
- 1945Enacted · Pub. L. 87-490 · 76 Stat. 105
- 1976Amended · Pub. L. 94-564 · 90 Stat. 2661
- 1983Amended · Pub. L. 98-181 · 97 Stat. 1268
- 1998Amended · Pub. L. 105-277 · 112 Stat. 2681
- 2009Amended · Pub. L. 111-32 · 123 Stat. 1916
- 2009Amended · Pub. L. 111-117 · 123 Stat. 3406
- 2015Amended · Pub. L. 114-113 · 129 Stat. 2829
- 2020Amended · Pub. L. 116-136 · 134 Stat. 595
- 2024Amended · Pub. L. 118-47 · 138 Stat. 852
A history note hasn’t been published yet. The record shows enactment by Pub. L. 87-490 on 1945-07-31.
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