§1442 Informational Media Guaranties

Summary

The Director of the United States Information Agency may guarantee investments in businesses that make or distribute informational media if those guarantees help U.S. foreign policy and national interests. The Director can take on up to $28,000,000 of certain government notes, including unpaid interest, and can get advances from the Treasury up to that amount. Those advances go into a special Treasury account to pay claims on these media guarantees. Guarantees can be made without the usual time limits, but the total outstanding at any one time cannot be more than the face amount of the assumed notes minus prior advances on them, plus what is in the special account. Foreign currency received after June 30, 1955 from these guarantees can be sold for dollars and put into the special account, and Congress may allow some of those foreign funds to be used for educational, scientific, or cultural purposes or other agreed uses. Fees for issuing guarantees go into the same special account and can be used to pay claims, and the Director may charge a minimum fee up to $50 for issuing or changing a guarantee. The Director may make advance payments under guarantees if good security is taken and the foreign currency owed back to the United States is paid within nine months. As soon as practical after July 18, 1956, all money, assets, debts, and records for these media guarantees dating back to April 3, 1948 must be kept separate from other guarantee programs. Each year Congress may provide money to restore any loss to the capital used for these guarantees. Losses mean when losses plus interest on the notes are more than revenue and past restorations; they include dollar losses from selling foreign currency and costs of currencies the Treasury decides are not needed or were moved without being paid back. Any appropriated dollars can be used to pay interest and to pay off or satisfy the notes, and the Director may issue notes to the Treasury for amounts applied to principal with an interest rate set by the Treasury. Dollars from selling unneeded foreign currency go to miscellaneous receipts. Special rules apply to certain notes that were outstanding on August 24, 1982.