Title 22, Foreign Relations and IntercourseRelease 119-110

§290g–8 Presidential Instructions to United States Governor of the Fund to Veto Any Use of Funds to Benefit a Country Pursuing a Detrimental Economic Policy Against United States Interests; Exceptions

Title 22 › CHAPTER 7 — INTERNATIONAL BUREAUS, CONGRESSES, ETC. › SUBCHAPTER XXII — AFRICAN DEVELOPMENT FUND › § 290g–8

Last updated Sep 22, 2026|Official source

Summary

The President must tell the U.S. Governor of the Fund to have the U.S. Executive Director vote against any loan or use of the Fund’s money that would help a country that has taken or seized property from U.S. citizens or businesses at least 50% owned by U.S. citizens, canceled or refused to honor contracts with such U.S. owners, or used discriminatory taxes, fees, or rules that effectively seize property. This voting rule does not apply if the President finds that the country has arranged quick, fair, and effective payment; the dispute has been sent to arbitration under the rules of the Convention for the Settlement of Investment Disputes; or the parties are negotiating in good faith to reach such payment under international law.

Full Legal Text

Title 22, §290g–8

Foreign Relations and Intercourse, Source: USLM XML via OLRC

The President shall instruct the United States Governor of the Fund to cause the Executive Director representing the United States in the Fund to cast the votes of the United States against any loan or other utilization of the funds of the Fund 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. § 290g–8

Title 22, Foreign Relations and Intercourse

Last Updated

Sep 22, 2026

Release point: 119-110