§ 2906. — Management of the Friendship Trust Fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2906]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 44--JAPAN-UNITED STATES FRIENDSHIP
Sec. 2906. Management of the Friendship Trust Fund
(a) Constituent amounts
The Fund shall consist of--
(1) amounts appropriated under sections 2902(d) and (e)(1) of
this title;
(2) any other amounts received by the Fund by way of gifts and
donations; and
(3) interest and proceeds credited to it under subsection (b) of
this section.
(b) Investments by Secretary of Treasury in authorized obligations;
issuance of obligations and special obligations; conditions of
acquisition
It shall be the duty of the Secretary of the Treasury (hereafter
referred to as the ``Secretary'') to invest such portion of the Fund as
is not, in the judgment of the Commission, required to meet current
withdrawals. Such investment may be made only in interest-bearing
obligations of the United States, in obligations guaranteed as to both
principal and interest by the United States, in interest-bearing
obligations of Japan, or in obligations guaranteed as to both principal
and interest by Japan. For such purposes, the obligations may be
acquired (1) on original issue at the issue price, or (2) by purchase of
outstanding obligations at the market price. The purposes for which
obligations of the United States may be issued under chapter 31 of title
31, are hereby extended to authorize the issuance at par of special
obligations exclusively to the Fund. Such special obligations shall bear
interest at a rate equal to the average rate of interest, computed as to
the end of the calendar month next preceding the date of such issue,
borne by all marketable interest-bearing obligations of the United
States issued during the preceding two years then forming part of the
public debt; except that where such average rate is not a multiple of
one-eight of 1 per centum, the rate of interest of such special
obligations shall be the multiple of one-eighth of 1 per centum next
lower than such average rate. Such special obligations shall be issued
only if the Secretary determines that the purchase of other interest-
bearing obligations of the United States, or of obligations guaranteed
as to both principal and interest by the United States on original issue
or at the market price, is not in the public interest.
(c) Sale of obligations; redemption of special obligations
Any obligation acquired by the Fund (except special obligations
issued exclusively to the Fund) may be sold by the Secretary at the
market price, and such special obligations may be redeemed at par plus
accrued interest.
(d) Credit to Fund of interest on, and proceeds from sale or redemption
of, any obligations held in Fund
The interest on, and the proceeds from the sale or redemption of,
any obligations held in the Fund shall be credited to and form a part of
the Fund.
(e) Payments for implementation of programs and necessary expenses of
Commission; appropriation of amounts; exceptions
In accordance with section 2905(4) of this title, the Secretary
shall pay out of the Fund such amounts, including expenses of the
Commission, as the Commission considers necessary to carry out the
provisions of this chapter; except that amounts in the Fund, other than
amounts which have been appropriated and amounts received (including
amounts earned as interest on, and proceeds from the sale or redemption
of, obligations purchased with amounts received) by the Commission
pursuant to sections 2905(2) and (3) of this title, shall be subject to
the appropriation process.
(Pub. L. 94-118, Sec. 7, Oct. 20, 1975, 89 Stat. 606; Pub. L. 94-350,
title IV, Sec. 401(3)(B), July 12, 1976, 90 Stat. 833; Pub. L. 97-241,
title V, Sec. 503(b), Aug. 24, 1982, 96 Stat. 298; Pub. L. 105-277, div.
A, Sec. 101(b) [title IV, Sec. 404(b)], Oct. 21, 1998, 112 Stat. 2681-
50, 2681-101.)
Codification
In subsec. (b), ``chapter 31 of title 31'' substituted for ``the
Second Liberty Bond Act, as amended'' on authority of Pub. L. 97-258,
Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which
enacted Title 31, Money and Finance.
Amendments
1998--Subsec. (b). Pub. L. 105-277 amended second sentence
generally. Prior to amendment, second sentence read as follows: ``Such
investment of amounts authorized to be appropriated under section
2902(d) of this title may be made only in interest-bearing obligations
of the United States or in obligations guaranteed as to both principal
and interest by the United States.''
1982--Subsec. (e). Pub. L. 97-241 inserted ``(including amounts
earned as interest on, and proceeds from the sale or redemption of,
obligations purchased with amounts received)'' after ``amounts
received''.
1976--Subsec. (b). Pub. L. 94-350 substituted ``investment of
amounts authorized to be appropriated under section 2902(d) of this
title may be made'' for ``investment may be made'' in second sentence.
Section Referred to in Other Sections
This section is referred to in section 2902 of this title.
