§290m North American Development Bank

Summary

The President may accept U.S. membership in the North American Development Bank. The Secretary of the Treasury may buy up to 150,000 shares for the United States, but that buying must be paid for by Congress unless the law says otherwise. Congress has authorized up to $1,500,000,000 for this: $225,000,000 can be used as paid-in capital and $1,275,000,000 as callable capital. For fiscal year 1995, $56,250,000 must be paid from the Treasury for the paid-in part, and 10% of that paid-in amount may be transferred by the Bank to the President to cover costs of direct and guaranteed Federal loans. In 1995 the Treasury may also subscribe up to $318,750,000 of callable capital. Any net income paid to the United States by the Bank must go into the Treasury as a miscellaneous receipt. Board members get no salary or pay from the Bank or the U.S. Rules like those that apply to the World Bank and IMF (under the Bretton Woods Act) apply to this Bank. Without a law that authorizes it, no one may subscribe to more shares, agree to changes that increase U.S. obligations or change the Bank’s purpose, or loan money to the Bank. Federal Reserve banks must act as the Bank’s depository or fiscal agent if asked, under supervision of the Board of Governors. For lawsuits in the U.S., the Bank is treated as living in the federal district where its U.S. office or agent is located, and federal courts have original jurisdiction; the Bank can move state cases to federal court before trial. Securities the Bank issues or guarantees for its capital are treated as exempt securities under federal securities law, but the Bank must file reports the Securities and Exchange Commission requires. The Commission, after consulting a national advisory council, can suspend that exemption for any Bank securities and will report to Congress about how this rule works.