§2151t Development Assistance Authority

Summary

Allows the President to give grants and make loans to other countries or areas. He can do this directly or through regional, international, or private groups. Loans must be paid back in U.S. dollars. The President sets the interest rate and must consider the borrower’s economy. No loan can have an interest rate below 3% per year starting no later than ten years after the loan funds are first provided. During those first ten years the rate must be at least 2% and cannot exceed the legal interest rate in the country where the loan is made. Money repaid from these loans must be put into the U.S. Treasury as miscellaneous receipts. Up to $10,000,000 each fiscal year can be used to help U.S. research and education institutions build programs that support developing countries’ economic and social development. The President must create a Development Loan Committee of officers from U.S. agencies to set lending rules that match U.S. foreign and financial policy. Officers put on the committee must be assigned by the President with the Senate’s advice and consent, except for officers who already hold positions that were filled that way.