An Act to provide for the participation of the United States in the Inter-American Development Bank.
PL 86-147 (S.1928), enacted 08/07/1959

73 S T A T . ] 
PUBLIC LAW 86-147-AUG. 7, 1959 
299 
Public Law 86-147 
AN ACT 
To provide for the participation of the United States in the Inter-American 
Development Bank. 
Be it enacted hy the Senate an^d House of Re'presentatives 
of the 
United States of America in Congress assembled^ 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Inter-American Develop-
ment Bank Act". 
ACCEPTANCE OF MEMBERSHIP 
SEC. 2. The President is hereby authorized to accept membership 
for the United States in the Inter-American Development Bank (here-
inafter referred to as the "Bank"), provided for by the agreement 
establishing the bank (hereinafter referred to as the "agreement") 
deposited in the archives of the Organization of American States. 
GOVERNOR, 
ALTERNATE 
GOVERNOR, 
AND 
EXECUTIVE 
DIRECTOR 
SEC. 3. (a) The President, by and with the advice and consent of 
the Senate, shall appoint a Governor of the Bank and an alternate 
for the Governor. 
The term of office for the governor and the alter-
nate Governor shall be five years, but each shall remain in office until 
a successor has been appointed. 
(b) The President, by and with the advice and consent of the 
Senate, shall appoint an Executive Director of the Bank. 
Except 
as provided for in article XV, section 3, of the agreement, the 
term of office for the Executive Director shall be three years, but 
he shall remain in office until a successor has been appointed. 
(c) No person shall be entitled to receive any salary or other com-
pensation from the United States for services as a Governor, Alter-
nate Governor, or Executive Director. 
;. 
NATIONAL ADVISORY COUNCIL ON INTERNATIONAL MONETARY AND 
FINANCIAL 
PROBLEMS 
SEC. i. The provisions of section 4 of the Bretton Woods Agree-
ments Act, as amended (22 U.S.C. 286b), shall apply with respect 
to the Bank to the same extent as with respect to the International 
Bank for Reconstruction and Development and the International 
Monetary Fund. Reports with respect to the Bank under paragraphs 
(5) and (6) of subsection (b) of section 4 of said Act, as amended, 
shall be included in the first report made thereunder after the estab-
lishment of the Bank and in each succeeding report. 
CERTAIN ACTS NOT TO BE TAKEN WITHOUT AUTHORIZATION 
SEC. 5. Unless Congress by law authorizes such action, neither the 
President nor any person or agency shall, on behalf of the United 
States, (a) subscribe to additional shares of stock under article II, 
section 3 of the agreement; (b) request or consent to any change in the 
quota of the United States under article IV, section 3, of the agree-
ment; (c) accept any amendment under article X I I of the agreement; 
or (d) make a loan or provide other financing to the Bank, except 
that loans or other financing may be provided to the Bank by a United 
States agency created pursuant to an Act of Congress which is author-
ized by law to make loans or provide other financing to international 
August 7, 1959 
[S. 1928] 
I n t er-American 
Development Bank 
Act. 
59 Stat. 512. 
32716 O-60—22 
300 
PUBLIC LAW 86-147-AUG. 7, 1959 
[73 ST 
A T . 
organizations. 
Unless Congress by law authorizes such action, no 
governor or alternate appointed to represent the United States shall 
vote for any increase of capital stock of the Bank under article II, 
section 2, of the agreement or any increase in the resources of the Fund 
for Special Operations under article IV, section 3 (g) thereof. 
DEPOSITORIES 
SEC. 6. Any Federal Reserve bank which is requested to do so by 
the Bank shall act as its depository or as its fiscal agent and the Board 
of Governors of the Federal Reserve System shall supervise and 
direct the carrying out of these functions by the Federal Reserve 
banks. 
PAYMENT OF SUBSCRIPTION 
th^fz'ed.'^^"*'"""" 
SEC. 7. (a) There is hereby authorized to be appropriated, without 
fiscal year limitation, for the purchase of thirty-five thousand shares 
of capital stock in the Bank, $350 million. In addition, there is hereby 
authorized to be appropriated, without fiscal year limitation, for pay-
ment of the subscription of the United States to the Fund for Special 
Operations, $100 million. 
(b) For the purpose of keeping to a minimum the cost to the 
United States of participation in the Bank, the Secretary of the 
Treasury, after paying the requisite part of the subscription and quota 
of the United States in the Bank required to be made under article 
II, section 4, and article IV, section 3, respectively, pf the agreement, 
is authorized and directed to issue special notes of the United States 
from time to time, at par, and to deliver such notes to the Bank in 
exchange for dollars to the extent permitted by the agreement. 
The 
special notes provided for in this subsection shall be issued under the 
authority and subject to the provisions of the Second Liberty Bond 
Act, as amended, and the purposes for which securities may be issued 
under that Act are extended to include the purposes for which special 
notes are authorized and directed to be issued under this subsection, 
but such notes shall bear no interest, shall be nonnegotiable, and shall 
be payable on demand of the Bank. The face amount of special notes 
issued to the Bank under the authority of this subsection and out-
standing at any one time shall not exceed, in the aggregate, the amount 
of the subscription and quota of the United States actually paid to 
the Bank under article II, section 4, and article IV, section 3, respec-
tively, of the agreement. 
(c) Any payment made to the United States by the Bank as a dis-
tribution of net income shall be covered into the Treasury as a mis-
cellaneous receipt. 
JURISDICTION AND VENUE OF ACTIONS 
SEC. 8. For the purpose of any action which may be brought with-
in the United States, its Territories or possessions, or the Common-
wealth of Puerto Rico by or against the Bank in accordance with 
the agreement, the Bank shall be deemed to be an inhabitant of 
the Federal judicial district in which its principal office in the United 
States is located, and any such action at law or in equity to which 
the Bank shall be a party shall be deemed to arise under the laws 
of the United States, and the district courts of the United States 
shall have original jurisdiction of any such action. When the Bank 
is a defendant in any such action, it may, at any time before the trial 
thereof, remove such action from a State court into the district court 
of the United States for the proper district by following the procedure 
for removal of causes otherwise provided by law. 
73 S T A T . ] 
PUBLIC LAW 86-147-AUG. 7, 1959 
301 
STATUS, I M M U N I T I E S AND PRIVILEGES 
SEC. 9. The provisions of article X, section 4(c), and article X I , 
sections 2 to 9, both inclusive, of the agreement shall have full force 
and effect in the United States, its Territories and possessions, and 
the Commonwealth of Puerto Kico, upon acceptance of membership 
by the United States in, and the establishment of, the Bank. 
SECURITIES ISSUED BY BANK AS INVESTMENT SECURITIES FOR NATIONAL 
BANKS 
SEC. 10. The last sentence of paragraph seven of section 5136 of the 
Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting 
after the words "International Bank for Reconstruction and Develop-
ment" the words "or the Inter-American Development Bank" and by 
striking the words "said Bank" and inserting in lieu thereof "either 
of said Banks". 
S E C U R I T I E S I S S U E D B Y BANK AS EXEMPT SECURITIES; REPORT FILED W I T H 
SECURITIES AND EXCHANGE COMMISSION 
SEC. 11. (a) Any securities issued by the Bank (including any 
guarantee by the Bank, whether or not limited in scope) in connection 
with raising of funds for including in the Bank's ordinary capital 
resources as defined in article II, section 5, of the agreement, and any 
securities guaranteed by the Bank as to both principal and interest to 
which the commitment in article II, section 4(a) (ii), of the agreement 
is expressly applicable, shall be deemed to be exempted securities 
within the meaning of paragraph (a) (2) of section 3 of the Act of 
May 27, 1933, as amended (15 U.S.C. 77c), and paragraph (a) (12) 
^f Hf; Jf; 
of section 3 of the Act of June 6, 1934, as amended (15 U.S.C. 78c). 
The Bank shall file with the Securities and Exchange Commission 
such annual and other reports with regard to such securities as 
the Commission shall determine to be appropriate in view of the 
special character of the Bank and its operations and necessary in the 
public interest or for the protection of investors. 
(b) The Securities and Exchange Commission, acting in consulta-
tion with the National Advisory Council on International Monetary 
and Financial Problems, is authorized to suspend the provisions of 
subsection (a) at any time as to any or all securities issued or guaran-
teed by the Bank during the period of such suspension. 
The Com-
mission shall include in its annual reports to Congress such informa-
tion as it shall deem advisable with regard to the operations and effect 
of this section and in connection therewith shall include any views 
submitted for such purpose by any association of dealers registered 
with the Commission. 
CERTAIN 
REPORTS 
REQUIRED 
SEC. 12. The reports of the National Advisory Council on Inter-
national Monetary and Financial Problems provided for in section 
4(b^ (6) of the Bretton Woods Agreements Act (and referred to in 
^9 st^^. M|. 
section 4 of this Act) shall also cover and include the effectiveness of 
the provisions of section 11 of this Act and the exemption for securi-
ties issued by the Bank provided by section 5136 of the Revised 
Statutes in facilitating the operations of the Bank and the develop- 
^^ "^^ ^
'
*
* 
ment of the economic resources of member countries of the Bank and 
the recommendations of the Council as to any modifications it may 
deem desirable in the provisions of this Act. 
Approved August 7, 1959. 
48 Stat. 882.