§290m North American Development Bank

Summary

Allows the President to accept U.S. membership in the North American Development Bank. The Treasury Secretary may buy up to 150,000 shares for the United States. Up to $1,500,000,000 is authorized for that purpose, of which $225,000,000 may be paid-in capital and $1,275,000,000 may be callable capital. For fiscal year 1995, $56,250,000 must be paid from the Treasury for the paid-in share (10% of that amount may be transferred by the Bank to the President to cover certain loan costs), and up to $318,750,000 may be subscribed as callable capital. Any profits the Bank pays to the United States go into the Treasury as miscellaneous receipts. Board members get no salary from the Bank or the U.S. A Bretton Woods Act rule applies to the Bank the same way it does to the World Bank and IMF. Without a law saying otherwise, the President and U.S. officials cannot buy more shares, agree to changes that increase U.S. obligations or change the Bank’s purpose, or lend money to the Bank. Federal Reserve banks can act as the Bank’s depository or fiscal agent when asked, under supervision of the Board of Governors. For lawsuits in the U.S., the Bank is treated as living in the federal district where its main U.S. office or service agent is, and federal courts have original jurisdiction; the Bank may remove state cases to federal court. Securities the Bank issues or guarantees for its capital are treated as exempted securities for federal securities laws, but the Bank must file reports with the SEC and the SEC may suspend the exemption after consulting the National Advisory Council.