### Compact of Free Association Amendments Act 2003

### (Public Law 108-188)

### Federated States of Micronesia

### Quote:

**Title Two, Sections 215 and 216**

Section 215 - Trust Fund

\(a\) The United States shall contribute annually for twenty years from
the effective date of this Compact, as amended, in the amounts set forth
in section 216 into a Trust Fund established in accordance with the
Agreement Between the Government of the United States of America and the
Government of the Federated States of Micronesia Implementing Section
215 and Section 216 of the Compact, as Amended, Regarding a Trust Fund
(\`Trust Fund Agreement\'). Upon termination of the annual financial
assistance under section 211, the proceeds of the fund shall thereafter
be used for the purposes described in section 211 or as otherwise
mutually agreed.

\(b\) The United States contribution into the Trust Fund described in
subsection(a) of this section is conditioned on the Government of the
Federated States of Micronesia contributing to the Trust Fund at least
\$30 million, prior to September 30, 2004. Any funds received by the
Federated States of Micronesia under section 111 (d) of Public Law
99-239 (January 14, 1986), or successor provisions, would be contributed
to the Trust Fund as a Federated States of Micronesia contribution.

\(c\) The terms regarding the investment and management of funds and use
of the income of the Trust Fund shall be set forth in the separate Trust
Fund Agreement described in subsection (a) of this section. Funds
derived from United States investment shall not be subject to Federal or
state taxes in the United States or the Federated States of Micronesia.
The Trust Fund Agreement shall also provide for annual reports to the
Government of the United States and to the Government of the Federated
States of Micronesia. The Trust Fund Agreement shall provide for
appropriate distributions of trust fund proceeds to the Federated States
of Micronesia and for appropriate remedies for the failure of the
Federated States of Micronesia to use income of the Trust Fund for the
annual grant purposes set forth in section 211. These remedies may
include the return to the United States of the present market value of
its contributions to the Trust Fund and the present market value of any
undistributed income on the contributions of the United States. If this
Compact, as amended, is terminated, the provisions of sections 451
through 453 of this Compact, as amended, shall govern treatment of any
U.S. contributions to the Trust Fund or accrued interest thereon.

Section 216 - Sector Grant Funding and Trust Fund Contributions

The funds described in sections 211, 212(b) and 215 shall be made
available as follows:

\[In millions of dollars\]

Fiscal year Annual Grants Audit Grant Trust Fund Total

Section 211 Section 212(b) Section 215

(amount up to)

2004 76.2 .5 16 92.7

2005 76.2 .5 16 92.7

2006 76.2 .5 16 92.7

2007 75.4 .5 16.8 92.7

2008 74.6 .5 17.6 92.7

2009 73.8 .5 18.4 92.7

2010 73 .5 19.2 92.7

2011 72.2 .5 20 92.7

2012 71.4 .5 20.8 92.7

2013 70.6 .5 21.6 92.7

2014 69.8 .5 22.4 92.7

2015 69 .5 23.2 92.7

2016 68.2 .5 24 92.7

2017 67.4 .5 24.8 92.7

2018 66.6 .5 25.6 92.7

2019 65.8 .5 26.4 92.7

2020 65 .5 27.2 92.7

2021 64.2 .5 28 92.7

2022 63.4 .5 28.8 92.7

2023 62.6 .5 29.6 92.7

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