HR 5522 RFS 
on Appropriations that such waiver is important to the 
national interest of the United States. 
PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST 
COUNTRIES 
SEC. 526. (a) Funds appropriated for bilateral assist-
ance under any heading of this Act and funds appro-
priated under any such heading in a provision of law en-
acted prior to the enactment of this Act, shall not be made 
available to any country which the President determines— 
(1) grants sanctuary from prosecution to any 
individual or group which has committed an act of 
international terrorism; or 
(2) otherwise supports international terrorism. 
(b) The President may waive the application of sub-
section (a) to a country if the President determines that 
national security or humanitarian reasons justify such 
waiver. The President shall publish each waiver in the 
Federal Register and, at least 15 days before the waiver 
takes effect, shall notify the Committees on Appropria-
tions of the waiver (including the justification for the waiv-
er) in accordance with the regular notification procedures 
of the Committees on Appropriations. 
DEBT-FOR-DEVELOPMENT 
SEC. 527. In order to enhance the continued partici-
pation of nongovernmental organizations in debt-for-devel-
opment and debt-for-nature exchanges, a nongovern-
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mental organization which is a grantee or contractor of 
the United States Agency for International Development 
may place in interest bearing accounts local currencies 
which accrue to that organization as a result of economic 
assistance provided under title II of this Act and, subject 
to the regular notification procedures of the Committees 
on Appropriations, any interest earned on such investment 
shall be used for the purpose for which the assistance was 
provided to that organization. 
SEPARATE ACCOUNTS 
SEC. 528. (a) SEPARATE ACCOUNTS
FOR LOCAL 
CURRENCIES.— 
(1) If assistance is furnished to the government 
of a foreign country under chapters 1 and 10 of part 
I or chapter 4 of part II of the Foreign Assistance 
Act of 1961 under agreements which result in the 
generation of local currencies of that country, the 
Administrator of the United States Agency for 
International Development shall— 
(A) require that local currencies be depos-
ited in a separate account established by that 
government; 
(B) enter into an agreement with that gov-
ernment which sets forth— 
(i) the amount of the local currencies 
to be generated; and 
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(ii) the terms and conditions under 
which the currencies so deposited may be 
utilized, consistent with this section; and 
(C) establish by agreement with that gov-
ernment the responsibilities of the United 
States Agency for International Development 
and that government to monitor and account 
for deposits into and disbursements from the 
separate account. 
(2) USES OF LOCAL CURRENCIES.—As may be 
agreed upon with the foreign government, local cur-
rencies deposited in a separate account pursuant to 
subsection (a), or an equivalent amount of local cur-
rencies, shall be used only— 
(A) to carry out chapter 1 or 10 of part 
I or chapter 4 of part II (as the case may be), 
for such purposes as— 
(i) project and sector assistance activi-
ties; or 
(ii) debt and deficit financing; or 
(B) for the administrative requirements of 
the United States Government. 
(3) 
PROGRAMMING
ACCOUNTABILITY.—The 
United States Agency for International Development 
shall take all necessary steps to ensure that the 
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equivalent of the local currencies disbursed pursuant 
to subsection (a)(2)(A) from the separate account 
established pursuant to subsection (a)(1) are used 
for the purposes agreed upon pursuant to subsection 
(a)(2). 
(4) 
TERMINATION
OF
ASSISTANCE
PRO-
GRAMS.—Upon termination of assistance to a coun-
try under chapter 1 or 10 of part I or chapter 4 of 
part II (as the case may be), any unencumbered bal-
ances of funds which remain in a separate account 
established pursuant to subsection (a) shall be dis-
posed of for such purposes as may be agreed to by 
the government of that country and the United 
States Government. 
(5) REPORTING REQUIREMENT.—The Adminis-
trator of the United States Agency for International 
Development shall report on an annual basis as part 
of the justification documents submitted to the Com-
mittees on Appropriations on the use of local cur-
rencies for the administrative requirements of the 
United States Government as authorized in sub-
section (a)(2)(B), and such report shall include the 
amount of local currency (and United States dollar 
equivalent) used and/or to be used for such purpose 
in each applicable country. 
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(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.— 
(1) If assistance is made available to the gov-
ernment of a foreign country, under chapter 1 or 10 
of part I or chapter 4 of part II of the Foreign As-
sistance Act of 1961, as cash transfer assistance or 
as nonproject sector assistance, that country shall be 
required to maintain such funds in a separate ac-
count and not commingle them with any other 
funds. 
(2) APPLICABILITY OF OTHER PROVISIONS OF 
LAW.—Such funds may be obligated and expended 
notwithstanding provisions of law which are incon-
sistent with the nature of this assistance including 
provisions which are referenced in the Joint Explan-
atory Statement of the Committee of Conference ac-
companying House Joint Resolution 648 (House Re-
port No. 98–1159). 
(3) NOTIFICATION.—At least 15 days prior to 
obligating any such cash transfer or nonproject sec-
tor assistance, the President shall submit a notifica-
tion through the regular notification procedures of 
the Committees on Appropriations, which shall in-
clude a detailed description of how the funds pro-
posed to be made available will be used, with a dis-
cussion of the United States interests that will be 
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