I 

108TH CONGRESS 

1ST SESSION H. R. 2783

To restore Congress’ constitutional role in international transactions involving 

the Exchange Stabilization Fund, and to limit the amount of individual 

loans or credits that may be provided to a foreign entity through that 

fund. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2003

Mr. PAUL introduced the following bill; which was referred to the Committee 

on Financial Services, and in addition to the Committee on Rules, 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 restore Congress’ constitutional role in international 

transactions involving the Exchange Stabilization Fund, 

and to limit the amount of individual loans or credits 

that may be provided to a foreign entity through that 

fund.

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Aid Limitation 

5 Act’’. 
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1 SEC. 2. LIMITATION ON AMOUNT OF LOAN TO FOREIGN EN2 TITY FROM THE EXCHANGE STABILIZATION 

3 FUND. 

4 Section 5302 of title 31, United States Code, is 

5 amended by adding at the end the following: 

6 ‘‘(e) The Secretary may not use the fund to make 

7 a loan or extend credit in an amount that exceeds 

8 $250,000,000 to an entity the majority of which is owned 

9 or controlled by 1 or more foreign persons or foreign gov10 ernments.’’. 

11 SEC. 3. ADVANCE NOTICE TO CONGRESS OF LOAN TO BE 

12 MADE FROM THE EXCHANGE STABILIZATION 

13 FUND TO A FOREIGN ENTITY FOR MORE 

14 THAN 60 DAYS. 

15 Section 5302 of title 31, United States Code, is fur16 ther amended by adding at the end the following: 

17 ‘‘(f) The Secretary may not use the fund to make 

18 a loan or extend credit for a period that exceeds 60 days 

19 to an entity the majority of which is owned or controlled 

20 by 1 or more foreign persons or foreign governments, un21 less, before the loan is made, the President certifies in 

22 writing to the Committees on Financial Services and on 

23 International Relations of the House of Representatives 

24 and to the Committees on Banking, Housing, and Urban 

25 Affairs and on Foreign Relations of the Senate that any 

26 United States expenditures involved in the loan or credit 
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1 is adequately backed by an assured source of repayment 

2 the identity of whom is specified in the certification.’’. 

3 SEC. 4. PROHIBITION ON LOAN OF MORE THAN 

4 $1,000,000,000 FROM THE EXCHANGE STA5 BILIZATION FUND WITHOUT EXPRESS STATU6 TORY AUTHORIZATION; FINANCIAL CRISIS 

7 EXCEPTION. 

8 Section 5302 of title 31, United States Code, is fur9 ther amended by adding at the end the following: 

10 ‘‘(g)(1) Except as provided in paragraph (2), the Sec11 retary may not use the fund to make a loan or extend 

12 credit in an amount that exceeds $1,000,000,000 to an 

13 entity the majority of which is owned or controlled by 1 

14 or more foreign persons or foreign governments, without 

15 express statutory authorization for the particular loan or 

16 extension of credit. 

17 ‘‘(2) Paragraph (1) shall not apply to a loan or exten18 sion of credit if the President certifies in writing to the 

19 Committees on Financial Services and on International 

20 Relations of the House of Representatives and to the Com21 mittees on Banking, Housing, and Urban Affairs and on 

22 Foreign Relations of the Senate that the loan or extension 

23 of credit is necessary to address a financial crisis in a for24 eign country, which crisis poses a threat to the interests 

25 of the United States or the international financial system. 
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1 ‘‘(3)(A) Paragraph (1) shall apply to a loan or exten2 sion of credit, notwithstanding a certification made pursu3 ant to paragraph (2), if a joint resolution that meets the 

4 requirements of subparagraph (B) of this paragraph is en5 acted with respect to the certification. 

6 ‘‘(B) A joint resolution meets the requirements 

7 of this subparagraph with respect to a certification 

8 if—

9 ‘‘(i) the joint resolution is introduced with10 in 5 days after the date the certification is 

11 made; 

12 ‘‘(ii) the matter after the resolving clause 

13 of the joint resolution is as follows: ‘The Con14 gress disapproves of the certification made by 

15 the President pursuant to section 5302(g)(2) of 

16 title 31, United States Code, on 

17 .’, the blank space being 

18 appropriately filled in with the date the certifi19 cation is made; and 

20 ‘‘(iii) the title of the joint resolution is as 

21 follows: ‘Joint resolution disapproving the 

22 certification made by the President on

23 pursuant to section 

24 5302(g)(2) of title 31, United States Code.’, the 
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1 blank space being appropriately filled in with 

2 the date the certification is made. 

3 ‘‘(C) Subsections (d), (e), and (f) of section 208 

4 of Public Law 100–526 (102 Stat. 2632 et seq.) 

5 shall apply with respect to any such joint resolu6 tion.’’.

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