Title 22, Foreign Relations and IntercourseRelease 119-110

§284j Expropriation of United States Property; Loan Restrictions

Title 22 › CHAPTER 7 — INTERNATIONAL BUREAUS, CONGRESSES, ETC. › SUBCHAPTER XIII — INTERNATIONAL DEVELOPMENT ASSOCIATION › § 284j

Last updated Sep 22, 2026|Official source

Summary

The President must tell the U.S. directors at the World Bank and the International Development Association to vote against any loan or use of funds that would help a country that seizes property of U.S. citizens or companies at least 50% U.S.-owned, cancels contracts with them, or uses discriminatory taxes or rules that amount to taking their property. Loans can go forward only if prompt, adequate, and effective compensation is paid, the dispute is sent to arbitration under the Convention for the Settlement of Investment Disputes, or good-faith negotiations under international law are underway to provide that compensation.

Full Legal Text

Title 22, §284j

Foreign Relations and Intercourse, Source: USLM XML via OLRC

The President shall instruct the United States Executive Directors of the International Bank for Reconstruction and Development and the International Development Association to vote against any loan or other utilization of the funds of the Bank and the Association 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 the 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. § 284j

Title 22, Foreign Relations and Intercourse

Last Updated

Sep 22, 2026

Release point: 119-110