Title 22, Foreign Relations and IntercourseRelease 119-110

§283r Expropriation of United States Property; Loan Restrictions

Title 22 › CHAPTER 7 — INTERNATIONAL BUREAUS, CONGRESSES, ETC. › SUBCHAPTER XII — INTER-AMERICAN DEVELOPMENT BANK › § 283r

Last updated Sep 22, 2026|Official source

Summary

The President must tell the United States Executive Director at the Bank to vote against any loan or use of Bank funds that would help a country that has either taken or seized property from U.S. citizens or from companies that are at least 50% owned by U.S. citizens; tried to cancel contracts with those U.S. owners; or used discriminatory taxes, other charges, or restrictive rules that effectively take or control such property. The President may allow a vote for the loan only if one of three things is true: the owners have been given timely, sufficient, and effective payment; the dispute has been sent to arbitration under the international convention for settling investment disputes; or the parties are engaged in good‑faith talks to reach such payment under applicable international law.

Full Legal Text

Title 22, §283r

Foreign Relations and Intercourse, Source: USLM XML via OLRC

The President shall instruct the United States Executive Director of the Bank to vote against any loan or other utilization of the funds of the Bank for the benefit of any country which has—

(1)nationalized or expropriated or seized ownership or control of property owned by any United States citizen or by any corporation, partnership, or association not less than 50 per centum of which is beneficially owned by United States citizens;

(2)taken steps to repudiate or nullify existing contracts or agreements with any United States citizen or any corporation, partnership, or association not less than 50 per centum of which is beneficially owned by United States citizens; or

(3)imposed or enforced discriminatory taxes or other exactions, or restrictive maintenance or operational conditions, or has taken other actions, which have the effect of nationalizing, expropriating, or otherwise seizing ownership or control of property so owned;

unless the President determines that (A) an arrangement for prompt, adequate, and effective compensation has been made, (B) the parties have submitted the dispute to arbitration under the rules of the Convention for the Settlement of Investment Disputes, or (C) good faith negotiations are in progress aimed at providing prompt, adequate, and effective compensation under the applicable principles of international law.

Reference

Citations & Metadata

Citation

22 U.S.C. § 283r

Title 22, Foreign Relations and Intercourse

Last Updated

Sep 22, 2026

Release point: 119-110