I

104TH CONGRESS

2D SESSION H. R. 3399

To authorize appropriations for the United States contribution to the tenth

replenishment of the resources of the International Development Association, to authorize consent to and authorize appropriations for the United

States contribution to the fifth replenishment of the resources of the

African Development Bank, to authorize consent to and authorize appropriations for a United States contribution to the Interest Subsidy Account of the successor (ESAF II) to the Enhanced Structural Adjustment

Facility of the International Monetary Fund, and to provide for the

establishment of the Middle East Development Bank.

IN THE HOUSE OF REPRESENTATIVES

MAY 7, 1996

Mr. CASTLE (by request) introduced the following bill; which was referred to

the Committee on Banking and Financial Services, and in addition to the

Committee on Commerce, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To authorize appropriations for the United States contribution to the tenth replenishment of the resources of the

International Development Association, to authorize consent to and authorize appropriations for the United

States contribution to the fifth replenishment of the resources of the African Development Bank, to authorize

consent to and authorize appropriations for a United

States contribution to the Interest Subsidy Account of

the successor (ESAF II) to the Enhanced Structural
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Adjustment Facility of the International Monetary Fund,

and to provide for the establishment of the Middle East

Development Bank.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 TITLE I—INTERNATIONAL

4 DEVELOPMENT ASSOCIATION

5 SEC. 101. The International Development Associa6 tion Act, 22 U.S.C. 284 et seq., is amended by adding

7 at the end thereof the following new section:

8 ‘‘SEC. 22. In order to pay for the United States con9 tribution to the tenth replenishment of the resources of

10 the association authorized in section 526 of Public Law

11 103–87, there are authorized to be appropriated, without

12 fiscal year limitation, $550,000,000 for payment by the

13 Secretary of the Treasury.’’.

14 TITLE II—AFRICAN

15 DEVELOPMENT BANK

16 SEC. 201. The African Development Bank Act, 22

17 U.S.C. 290i et seq., is amended by adding at the end

18 thereof the following new section:

19 ‘‘SEC. 11. (a) SUBSCRIPTION AUTHORIZED.—(1) The

20 United States Governor of the Bank may subscribe on be21 half of the United States to additional

22 shares of the capital stock of the Bank. (2) Any subscrip23 tion by the United States to the capital stock of the Bank
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1 shall be effective only to such extent or in such amounts

2 as are provided in advance in appropriations Acts.

3 ‘‘(b) LIMITATIONS ON AUTHORIZATION OF APPRO4 PRIATIONS.—In order to pay for the increase in the Unit5 ed States subscription to the Bank provided for in sub6 section (a), there are authorized to be appropriated, with7 out fiscal year limitation, $for payment by

8 the Secretary of the Treasury.’’.

9 TITLE III—INTEREST SUBSIDY

10 ACCOUNT OF THE SUCCES11 SOR (ESAF II) TO THE EN12 HANCED STRUCTURAL AD13 JUSTMENT FACILITY OF THE

14 INTERNATIONAL MONETARY

15 FUND

16 SEC. 301. The Bretton Woods Agreements Act, 22

17 U.S.C. 286 et seq., is amended by adding at the end there18 of the following new section:

19 ‘‘CONTRIBUTION TO THE INTEREST SUBSIDY ACCOUNT

20 OF THE SUCCESSOR (ESAF II) TO THE ENHANCED

21 STRUCTURAL ADJUSTMENT FACILITY OF THE INTER22 NATIONAL MONETARY FUND (FUND)

23 ‘‘SEC. 61. (a) CONTRIBUTION AUTHORIZED.—

24 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

25 the United States Governor of the Fund may con26 tribute $75,000,000 to the Interest Subsidy Account
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1 of the Successor (ESAF II) to the Enhanced Struc2 tural Adjustment Facility of the Fund on behalf of

3 the United States.

4 ‘‘(2) CONTRIBUTION.—The contribution author5 ized in paragraph (1) shall be effective only to such

6 extent or in such amounts as are provided in ad7 vance in appropriations Acts.

8 ‘‘(b) LIMITATION ON AUTHORIZATION OF APPRO9 PRIATIONS.—To pay for the contribution authorized in

10 subsection (a), there are authorized to be appropriated

11 $75,000,000 without fiscal year limitation for payment by

12 the Secretary of the Treasury.’’.

13 TITLE IV—MIDDLE EAST

14 DEVELOPMENT BANK

15 SEC. 401. This title may be cited as the ‘‘Bank for

16 Economic Cooperation and Development in the Middle

17 East and North Africa Act’’.

18 ACCEPTANCE OF MEMBERSHIP

19 SEC. 402. The President is hereby authorized to ac20 cept membership for the United States in the Bank for

21 Economic Cooperation and Development in the Middle

22 East and North Africa (hereinafter the ‘‘Bank’’) provided

23 for by the agreement establishing the Bank (hereinafter

24 the ‘‘Agreement’’).
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1 GOVERNOR AND ALTERNATE GOVERNOR

2 SEC. 403. (a) The Governor and the Alternate Gov3 ernor of the International Bank for Reconstruction and

4 Development, appointed under section 3 of the Bretton

5 Woods Agreements Act, as amended (22 U.S.C. 286a),

6 shall serve ex-officio as the Governor and the Alternate

7 Governor at the inaugural meeting of the Board of Gov8 ernors of the Bank. Thereafter, the President, by and with

9 the advice and consent of the Senate, shall appoint a Gov10 ernor of the Bank and an alternate for the Governor.

11 (b) No person shall be entitled to receive any salary

12 or other compensation from the United States for services

13 as a Governor or Alternate Governor.

14 APPLICABILITY OF BRETTON WOODS AGREEMENTS ACT

15 SEC. 404. The provisions of section 4 of the Bretton

16 Woods Agreements Act, as amended, 59 Stat. 512, 22

17 U.S.C. 286b, shall apply with respect to the Bank to the

18 same extent as with respect to the International Bank for

19 Reconstruction and Development and the International

20 Monetary Fund.

21 FEDERAL RESERVE BANKS AS DEPOSITORIES

22 SEC. 405. Any Federal Reserve bank which is re23 quested to do so by the Bank may act as its depository,

24 or as its fiscal agent, and the Board of Governors of the

25 Federal Reserve System shall exercise general supervision

26 over the carrying out of these functions.
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1 SUBSCRIPTION OF STOCK

2 SEC. 406. (a) The Secretary of the Treasury is au3 thorized to subscribe on behalf of the United States up

4 to 7,011,270 shares of the capital stock of the Bank; pro5 vided, however, that the subscription shall be effective only

6 to such extent or in such amounts as are provided in ad7 vance in appropriations Acts.

8 (b) There is hereby authorized to be appropriated,

9 without fiscal year limitation, for payment by the Sec10 retary of the Treasury of the subscription of the United

11 States for those shares, $1,050,007,800.

12 (c) Any payment made to the United States by the

13 Bank as a distribution of net income shall be covered into

14 the Treasury as a miscellaneous receipt.

15 JURISDICTION OF UNITED STATES COURTS AND

16 ENFORCEMENT OF ARBITRAL AWARDS

17 SEC. 407. For the purpose of any civil action which

18 may be brought within the United States, its territories

19 or possessions, or the Common-wealth of Puerto Rico, by

20 or against the Bank in accordance with the Agreement,

21 including an action brought to enforce an arbitral award

22 against the Bank, the Bank shall be deemed to be an in23 habitant of the Federal judicial district in which its prin24 cipal office within the United States, or its agent ap25 pointed for purpose of accepting service or notice of serv26 ice of process, is located, and any such action to which
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1 the Bank shall be a party shall be deemed to arise under

2 the laws of the United States, and the district courts of

3 the United States, including the courts enumerated in sec4 tion 460 of title 28, United States Code, shall have origi5 nal jurisdiction of any such action. When the Bank is the

6 defendant in any action in a State court, it may, at any

7 time before trial, remove such action into the appropriate

8 district court of the United States by following the proce9 dure for removal provided in section 1446 of title 28,

10 United States Code.

11 EFFECTIVENESS OF AGREEMENT

12 SEC. 408. The Agreement shall have full force and

13 effect in the United States, its territories and possessions,

14 and the Commonwealth of Puerto Rico, upon acceptance

15 of membership by the United States in, and the establish16 ment of, the Bank.

17 EXEMPTION FROM SECURITIES LAWS FOR CERTAIN

18 SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED

19 SEC. 409. (a) The seventh sentence of the seventh

20 undesignated paragraph of section 5136 of the Revised

21 Statutes of the United States as amended, 12 U.S.C. 24,

22 is further amended by striking out ‘‘or’’ after ‘‘the Inter23 American Investment Corporation,’’ and by inserting, ‘‘or

24 the Bank for Economic Cooperation and Development in

25 the Middle East and North Africa,’’ after ‘‘the Inter26 national Finance Corporation’’.
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1 (b) Any securities issued by the Bank (including any

2 guarantee by the Bank, whether or not limited in scope)

3 in connection with borrowing of funds, or the guarantee

4 of securities as to both principal and interest, shall be

5 deemed to be exempted securities within the meaning of

6 section 3(a)(2) of the Securities Act of 1933, (15 U.S.C.

7 77c), and section 3(a)(12) of the Securities Exchange Act

8 of 1934, as amended (15 U.S.C. 78c). The Bank shall file

9 with the Securities and Exchange Commission such an10 nual and other reports with regard to such securities as

11 the Commission shall determine to be appropriate in view

12 of the special character of the Bank and its operations

13 and necessary in the public interest or for the protection

14 of investors.

15 (c) The Securities and Exchange Commission, acting

16 in consultation with such agency or officer as the Presi17 dent shall designate, is authorized to suspend the provi18 sions of paragraph (b) at any time as to any or all securi19 ties issued or guaranteed by the Bank during the period

20 of such suspension. The Commission shall include in its

21 annual reports to Congress such information as it shall

22 deem advisable with regard to the operation and effect of

23 this section and in connection therewith shall include any

24 views submitted for such purpose by any association of

25 dealers registered with the Commission.
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1 TECHNICAL AMENDMENT

2 SEC. 410. (a) Section 1701(c)(2) of the International

3 Financial Institutions Act, 22 U.S.C. 262r(c)(2), is

4 amended by striking out ‘‘and’’ after ‘‘Inter-American De5 velopment Bank’’ and inserting ‘‘and Bank for Economic

6 Cooperation and Development in the Middle East and

7 North Africa’’ after ‘‘Inter-American Development Cor8 poration’’.

9 (b) Section 51 of Public Law 91–599, as amended

10 84 Stat. 1657; 22 U.S.C. 276c–2, is amended by striking

11 out ‘‘and’’ after ‘‘the African Development Bank,’’ and in12 serting ‘‘and the Bank for Economic Cooperation and De13 velopment in the Middle East and North Africa,’’ after

14 ‘‘the Inter-American Investment Corporation’’.

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