Notes on 31 U.S.C. § 5302 : US Code - Notes

Search Notes on 31 U.S.C. § 5302 : US Code - Notes

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.)
HISTORICAL AND REVISION NOTES
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Revised Source (U.S. Code) Source (Statutes at Large)
Section
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5302(a) 31:822a(b)(1). Jan. 30, 1934, ch. 6, Sec.
10(a), (b)(1), (c), 48 Stat.
341, 342; Jan. 23, 1937, ch.
5, Sec. 1, 50 Stat. 4; July 6,
1939, ch. 260, Secs. 1, 2, 53
Stat. 998; June 30, 1941, ch.
265, Sec. 1, 55 Stat. 395;
Apr. 29, 1943, ch. 76, 57
Stat. 68; July 31, 1945, ch.
339, Sec. 7(a), 59 Stat. 514;
Dec. 30, 1970, Pub. L. 91-599,
Secs. 41, 42, 84 Stat. 1659;
Oct. 19, 1976, Pub. L. 94-564,
Sec. 7, 90 Stat. 2661; Oct.
28, 1977, Pub. L. 95-147, Sec.
4(b), 91 Stat. 1229; Nov. 8,
1978, Pub. L. 95-612, Secs. 1,
6, 92 Stat. 3091, 3092.
5302(b) 31:822a(a)(1st
sentence).
5302(c)( 31:822a(b)(2). Jan. 30, 1934, ch. 6, 48 Stat.
1) 337, Sec. 10(b)(2); added Nov.
8, 1978, Pub. L. 95-612, Sec.
6, 92 Stat. 3092.
5302(c)( 31:822a(a)(last
2) sentence).
5302(d) 31:822a(c).
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In subsection (a)(1), the words "The Department of the Treasury
has a stabilization fund" are substituted for "there is
appropriated, out of the receipts which are directed to be covered
into the Treasury under section 408b of this title, the sum of
$2,000,000,000, which sum when available shall be deposited in the
United States Treasury in a stabilization fund" because the fund
has been established. The words "(hereinafter called the 'fund')"
are omitted as unnecessary because of the restatement. The words
"To enable the Secretary of the Treasury" and "The fund shall be
available for expenditure, under the direction of the Secretary of
the Treasury and in his discretion, for any purpose in connection
with carrying out the provisions of this section" are omitted as
surplus. The words "section 18 of the Bretton Woods Agreement Act
(22 U.S.C. 286e-3), and section 3 of the Special Drawing Rights Act
(22 U.S.C. 286o)" are added for clarity. The words "and
reinvestment" and "direct" are omitted as surplus. The word
"Government" is added for consistency. The words "accruing under
the operations of this section" are omitted as surplus. The words
"to carry out this section" after "are available" are substituted
for "for the purposes of the fund" for consistency.
In subsection (b), the words "directly . . . through" and "for
the account of the fund established in this section" are omitted as
surplus. The words "government of a foreign country" are
substituted for "foreign government" for consistency in the revised
title and with other titles of the United States Code. The words
"by or through such fund" are omitted as surplus.
In subsection (c)(1), the word "calendar" is omitted as surplus.
The words "beginning after the effective date of this paragraph"
are omitted as executed. The words "to occur" are omitted as
surplus.
In subsection (d), the words "any part of the first subscription
payment of the Government to the International Monetary Fund,
previously paid from the stabilization fund" are substituted for
31:822a(c)(words before semicolon) and "thereof" for clarity
because the payment has been made.
CHANGE OF NAME
Committee on Banking, Finance and Urban Affairs of House of
Representatives treated as referring to Committee on Banking and
Financial Services of House of Representatives by section 1(a) of
Pub. L. 104-14, set out as a note preceding section 21 of Title 2,
The Congress. Committee on Banking and Financial Services of House
of Representatives abolished and replaced by Committee on Financial
Services of House of Representatives, and jurisdiction over matters
relating to securities and exchanges and insurance generally
transferred from Committee on Energy and Commerce of House of
Representatives by House Resolution No. 5, One Hundred Seventh
Congress, Jan. 3, 2001.
MEXICAN DEBT DISCLOSURE
Pub. L. 104-6, title IV, Apr. 10, 1995, 109 Stat. 89, provided
that:
"SEC. 401. SHORT TITLE.
"This title may be cited as the 'Mexican Debt Disclosure Act of
1995'.
"SEC. 402. FINDINGS.
"The Congress finds that -
"(1) Mexico is an important neighbor and trading partner of the
United States;
"(2) on January 31, 1995, the President approved a program of
assistance to Mexico, in the form of swap facilities and
securities guarantees in the amount of $20,000,000,000, using the
exchange stabilization fund;
"(3) the program of assistance involves the participation of
the Board of Governors of the Federal Reserve System, the
International Monetary Fund, the Bank for International
Settlements, the International Bank for Reconstruction and
Development, the Inter-American Development Bank, the Bank of
Canada, and several Latin American countries;
"(4) the involvement of the exchange stabilization fund and the
Board of Governors of the Federal Reserve System means that
United States taxpayer funds will be used in the assistance
effort to Mexico;
"(5) assistance provided by the International Monetary Fund,
the International Bank for Reconstruction and Development, and
the Inter-American Development Bank may require additional United
States contributions of taxpayer funds to those entities;
"(6) the immediate use of taxpayer funds and the potential
requirement for additional future United States contributions of
taxpayer funds necessitates congressional oversight of the
disbursement of funds; and
"(7) the efficacy of the assistance to Mexico is contingent on
the pursuit of sound economic policy by the Government of Mexico.
"SEC. 403. PRESIDENTIAL REPORTS.
"(a) Reporting Requirement. - Not later than June 30, 1995, and
every 6 months thereafter, the President shall transmit to the
appropriate congressional committees a report concerning all
guarantees issued to, and short-term and long-term currency swaps
with, the Government of Mexico by the United States Government,
including the Board of Governors of the Federal Reserve System.
"(b) Contents of Reports. - Each report described in subsection
(a) shall contain a description of the following actions taken, or
economic situations existing, during the preceding 6-month period
or, in the case of the initial report, during the period beginning
on the date of enactment of this Act [Apr. 10, 1995]:
"(1) Changes in wage, price, and credit controls in the Mexican
economy.
"(2) Changes in taxation policy of the Government of Mexico.
"(3) Specific actions taken by the Government of Mexico to
further privatize the economy of Mexico.
"(4) Actions taken by the Government of Mexico in the
development of regulatory policy that significantly affected the
performance of the Mexican economy.
"(5) Consultations concerning the program approved by the
President, including advice on economic, monetary, and fiscal
policy, held between the Government of Mexico and the Secretary
of the Treasury (including any designee of the Secretary) and the
conclusions resulting from any periodic reviews undertaken by the
International Monetary Fund pursuant to the Fund's loan
agreements with Mexico.
"(6) All outstanding loans, credits, and guarantees provided to
the Government of Mexico, by the United States Government,
including the Board of Governors of the Federal Reserve System,
set forth by category of financing.
"(7) The progress the Government of Mexico has made in
stabilizing the peso and establishing an independent central bank
or currency board.
"(c) Summary of Treasury Department Reports. - In addition to the
information required to be included under subsection (b), each
report required under this section shall contain a summary of the
information contained in all reports submitted under section 404
during the period covered by the report required under this
section.
"SEC. 404. REPORTS BY THE SECRETARY OF THE TREASURY.
"(a) Reporting Requirement. - Beginning on the last day of the
first month which begins after the date of enactment of this Act
[Apr. 10, 1995], and on the last day of every month thereafter, the
Secretary of the Treasury shall submit to the appropriate
congressional committees a report concerning all guarantees issued
to, and short-term and long-term currency swaps with, the
Government of Mexico by the United States Government, including the
Board of Governors of the Federal Reserve System.
"(b) Contents of Reports. - Each report described in subsection
(a) shall include a description of the following actions taken, or
economic situations existing, during the month in which the report
is required to be submitted:
"(1) The current condition of the Mexican economy.
"(2) The reserve positions of the central bank of Mexico and
data relating to the functioning of Mexican monetary policy.
"(3) The amount of any funds disbursed from the exchange
stabilization fund pursuant to the program of assistance to the
Government of Mexico approved by the President on January 31,
1995.
"(4) The amount of any funds disbursed by the Board of
Governors of the Federal Reserve System pursuant to the program
of assistance referred to in paragraph (3).
"(5) Financial transactions, both inside and outside of Mexico,
made during the reporting period involving funds disbursed to
Mexico from the exchange stabilization fund or proceeds of
Mexican Government securities guaranteed by the exchange
stabilization fund.
"(6) All outstanding guarantees issued to, and short-term and
medium-term currency swaps with, the Government of Mexico by the
Secretary of the Treasury, set forth by category of financing.
"(7) All outstanding currency swaps with the central bank of
Mexico by the Board of Governors of the Federal Reserve System
and the rationale for, and any expected costs of, such
transactions.
"(8) The amount of payments made by customers of Mexican
petroleum companies that have been deposited in the account at
the Federal Reserve Bank of New York established to ensure
repayment of any payment by the United States Government,
including the Board of Governors of the Federal Reserve System,
in connection with any guarantee issued to, or any swap with, the
Government of Mexico.
"(9) Any setoff by the Federal Reserve Bank of New York against
funds in the account described in paragraph (8).
"(10) To the extent such information is available, once there
has been a setoff by the Federal Reserve Bank of New York, any
interruption in deliveries of petroleum products to existing
customers whose payments were setoff.
"(11) The interest rates and fees charged to compensate the
Secretary of the Treasury for the risk of providing financing.
"SEC. 405. TERMINATION OF REPORTING REQUIREMENTS.
"The requirements of sections 403 and 404 shall terminate on the
date that the Government of Mexico has paid all obligations with
respect to swap facilities and guarantees of securities made
available under the program approved by the President on January
31, 1995.
"SEC. 406. PRESIDENTIAL CERTIFICATION REGARDING SWAP OF
CURRENCIES TO MEXICO THROUGH EXCHANGE STABILIZATION FUND OR
FEDERAL RESERVE.
"(a) In General. - Notwithstanding any other provision of law, no
loan, credit, guarantee, or arrangement for a swap of currencies to
Mexico through the exchange stabilization fund or by the Board of
Governors of the Federal Reserve System may be extended or (if
already extended) further utilized, unless and until the President
submits to the appropriate congressional committees a certification
that -
"(1) there is no projected cost (as defined in the Credit
Reform Act of 1990 [probably means the Federal Credit Reform Act
of 1990, 2 U.S.C. 661 et seq.]) to the United States from the
proposed loan, credit, guarantee, or currency swap;
"(2) all loans, credits, guarantees, and currency swaps are
adequately backed to ensure that all United States funds are
repaid;
"(3) the Government of Mexico is making progress in ensuring an
independent central bank or an independent currency control
mechanism;
"(4) Mexico has in effect a significant economic reform effort;
and
"(5) the President has provided the documents described in
paragraphs (1) through (28) of House Resolution 80, adopted March
1, 1995.
"(b) Treatment of Classified or Privileged Material. - For
purposes of the certification required by subsection (a)(5), the
President shall specify, in the case of any document that is
classified or subject to applicable privileges, that, while such
document may not have been produced to the House of
Representatives, in lieu thereof it has been produced to specified
Members of Congress or their designees by mutual agreement among
the President, the Speaker of the House, and the chairmen and
ranking members of the Committee on Banking and Financial Services
[now Committee on Financial Services], the Committee on
International Relations, and the Permanent Select Committee on
Intelligence of the House.
"SEC. 407. DEFINITIONS.
"For purposes of this title, the following definitions shall
apply:
"(1) Appropriate congressional committees. - The term
'appropriate congressional committees' means the Committees on
International Relations and Banking and Financial Services [now
Committee on Financial Services] of the House of Representatives,
the Committees on Foreign Relations and Banking, Housing, and
Urban Affairs of the Senate, and the Committees on Appropriations
of the House of Representatives and the Senate.
"(2) Exchange stabilization fund. - The term 'exchange
stabilization fund' means the stabilization fund referred to in
section 5302(a)(1) of title 31, United States Code."
CERTIFICATION REGARDING USE OF EXCHANGE STABILIZATION FUND AND
FEDERAL RESERVE IN RELATION TO ECONOMIC CRISIS IN MEXICO
Memorandum of President of the United States, June 29, 1995, 60
F.R. 35113, provided:
Memorandum for the Secretary of the Treasury
On January 31, 1995, I approved a program of assistance to
Mexico, in the form of swap facilities and securities guarantees in
an amount not to exceed $20 billion, using the Exchange
Stabilization Fund (the "ESF program").
By virtue of the authority vested in me by the Constitution and
the laws of the United States, including section 301 of title 3,
United States Code, and section 406 of the Emergency Supplemental
Appropriations and Rescissions for the Department of Defense to
Preserve and Enhance Military Readiness Act of 1995 (Public Law 104-
6) [set out above], I hereby certify that:
(1) There is no projected cost (as defined in the Federal Credit
Reform Act of 1990 [2 U.S.C. 661 et seq.]) to the United States
from the proposed swap transaction.
(2) All loans, credits, guarantees, and currency swaps to Mexico
from the Exchange Stabilization Fund or the Federal Reserve System
are adequately backed to ensure that all United States funds are
repaid.
(3) The Government of Mexico is making progress in ensuring an
independent central bank.
(4) Mexico has in effect a significant economic reform effort.
(5) The Executive Branch has provided the documents requested by
House Resolution 80 adopted March 1, 1995, and described in
paragraphs (1) through (28) of that Resolution. All documents
identified as responsive to the Resolution have been provided to
the entire House of Representatives. Pursuant to the terms of the
Resolution, the Executive Branch has not provided those documents
as to which the Executive Branch has informed the House that it
would be inconsistent with the public interest to provide the
documents to the House. Pursuant to arrangements for safekeeping of
classified materials in House facilities, classified documents have
been provided to the House by making them available either at
designated, secure House facilities or at Executive Branch
facilities. Each agency, including the Federal Reserve Board, has
advised the House of the procedures employed by that agency to
provide the documents requested by House Resolution 80.
I have been informed that the Board of Governors of the Federal
Reserve System has provided the documents requested by House
Resolution 80 and described in paragraphs (1) through (28) of that
Resolution.
I hereby delegate to you the reporting requirement contained in
section 406 of Public Law 104-6 [set out above]. You are authorized
and requested to report this certification immediately to the
Speaker of the House and appropriate congressional committees, as
defined in section 407 of Public Law 104-6 [set out above].
I also hereby delegate to you the reporting requirement contained
in section 403 of Public Law 104-6 [set out above].
You are authorized and directed to publish this memorandum in the
Federal Register.
William J. Clinton.
Prior certifications were contained in the following:
Memorandum of President of the United States, May 17, 1995, 60
F.R. 27395.
Memorandum of President of the United States, Apr. 14, 1995, 60
F.R. 19485.