§2906 — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

Creates a Friendship Trust Fund and says what money goes in and how it is managed. The Fund gets amounts appropriated under 2902(d) and 2902(e)(1), gifts and donations, and any interest or sale proceeds added under the investment rules. The Treasury Secretary must invest money not needed for current withdrawals in interest‑bearing or government‑backed securities of the United States or Japan. The Secretary can buy new issues or market securities. If needed, special U.S. obligations may be issued to the Fund at par with an interest rate equal to the average yield of marketable U.S. securities issued in the prior two years (computed to the end of the month before issue) rounded down to the next 1/8 of 1 percent, and only if other purchases would not be in the public interest. The Secretary may sell Fund holdings at market price and redeem special obligations at par plus accrued interest. Interest and sale or redemption proceeds go back into the Fund. The Secretary must pay from the Fund the amounts the Commission considers necessary to carry out the chapter, including Commission expenses, as allowed under 2905(4); however, Fund amounts other than the appropriations and amounts received under 2905(2) and (3) are subject to the normal appropriation process.

Title 22, §2906

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)The Fund shall consist of—

(1)amounts appropriated under section 2902(d) and (e)(1) of this title;

(2)any other amounts received by the Fund by way of gifts and donations; and

(3)interest and proceeds credited to it under subsection (b) of this section.

(b)It shall be the duty of the Secretary of the Treasury (hereafter referred to as the “Secretary”) to invest such portion of the Fund as is not, in the judgment of the Commission, required to meet current withdrawals. Such investment may be made only in interest-bearing obligations of the United States, in obligations guaranteed as to both principal and interest by the United States, in interest-bearing obligations of Japan, or in obligations guaranteed as to both principal and interest by Japan. For such purposes, the obligations may be acquired (1) on original issue at the issue price, or (2) 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, 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 issued during the preceding two years then forming part of the public debt; except that where such average rate is not a multiple of one-eight of 1 per centum, the rate of interest of such special obligations shall be the multiple of one-eighth of 1 per centum next lower than such average rate. Such special obligations shall be issued only if the Secretary determines that the purchase of other interest-bearing obligations of the United States, or of obligations guaranteed as to both principal and interest by the United States on original issue or at the market price, is not in the public interest.

(c)Any obligation acquired by the Fund (except special obligations issued exclusively to the Fund) may be sold by the Secretary at the market price, and such special obligations may be redeemed at par plus accrued interest.

(d)The interest on, and the proceeds from the sale or redemption of, any obligations held in the Fund shall be credited to and form a part of the Fund.

(e)In accordance with section 2905(4) of this title, the Secretary shall pay out of the Fund such amounts, including expenses of the Commission, as the Commission considers necessary to carry out the provisions of this chapter; except that amounts in the Fund, other than amounts which have been appropriated and amounts received (including amounts earned as interest on, and proceeds from the sale or redemption of, obligations purchased with amounts received) by the Commission pursuant to section 2905(2) and (3) of this title, shall be subject to the appropriation process.

Notes & Related Subsidiaries

Editorial Notes

Codification In subsec. (b), “chapter 31 of title 31” substituted for “the Second Liberty Bond Act, as amended” on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments

1998—Subsec. (b). Pub. L. 105–277 amended second sentence generally. Prior to amendment, second sentence read as follows: “Such investment of amounts authorized to be appropriated under section 2902(d) of this title may be made only in interest-bearing obligations of the United States or in obligations guaranteed as to both principal and interest by the United States.” 1982—Subsec. (e). Pub. L. 97–241 inserted “(including amounts earned as interest on, and proceeds from the sale or redemption of, obligations purchased with amounts received)” after “amounts received”. 1976—Subsec. (b). Pub. L. 94–350 substituted “investment of amounts authorized to be appropriated under section 2902(d) of this title may be made” for “investment may be made” in second sentence.

§2906 Management of the Friendship Trust Fund

Summary

Title 22, §2906

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata