Title 22, Foreign Relations and IntercourseRelease 119-110

§285o Expropriation of United States Property; Loan Restrictions

Title 22 › CHAPTER 7 — INTERNATIONAL BUREAUS, CONGRESSES, ETC. › SUBCHAPTER XIV — ASIAN DEVELOPMENT BANK › § 285o

Last updated Sep 22, 2026|Official source

Summary

The President must tell the U.S. Executive Director at the Asian Development Bank to vote against any loan or other use of the Bank’s money that would help a country that has taken or seized property from a U.S. citizen or from a company at least 50% owned by U.S. citizens, or that has tried to cancel contracts with such U.S. owners, or that has used unfair taxes, fees, or rules that amount to taking control of that property. The President can allow a vote for the loan only if one of three things is true: there is a fast and full payment agreed to compensate the owners; the dispute has been sent to arbitration under the Convention for the Settlement of Investment Disputes; or honest negotiations are underway to reach a quick, fair, and effective payment under international law.

Full Legal Text

Title 22, §285o

Foreign Relations and Intercourse, Source: USLM XML via OLRC

The President shall instruct the United States Executive Director of the Asian Development 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 exaction, 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. § 285o

Title 22, Foreign Relations and Intercourse

Last Updated

Sep 22, 2026

Release point: 119-110