§ 5953. — Demilitarization Enterprise 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: 22USC5953]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 68A--COOPERATIVE THREAT REDUCTION WITH STATES OF FORMER SOVIET
UNION
Sec. 5953. Demilitarization Enterprise Fund
(a) Designation of Fund
The President is authorized to designate a Demilitarization
Enterprise Fund for the purposes of this section. The President may
designate as the Demilitarization Enterprise Fund any organization that
satisfies the requirements of subsection (e) of this section.
(b) Purpose of Fund
The purpose of the Demilitarization Enterprise Fund is to receive
grants pursuant to this section and to use the grant proceeds to provide
financial support under programs described in subsection (b)(5) of this
section for demilitarization of industries and conversion of military
technologies and capabilities into civilian activities.
(c) Grant authority
The President may make one or more grants to the Demilitarization
Enterprise Fund.
(d) Risk capital funding of demilitarization
The Demilitarization Enterprise Fund shall use the proceeds of
grants received under this section to provide financial support in
accordance with subsection (b) of this section through transactions as
follows:
(1) Making loans.
(2) Making grants.
(3) Providing collateral for loan guaranties by the Export-
Import Bank of the United States.
(4) Taking equity positions.
(5) Providing venture capital in joint ventures with United
States industry.
(6) Providing risk capital through any other form of transaction
that the President considers appropriate for supporting programs
described in subsection (b)(5) of this section.
(e) Eligible organization
An organization is eligible for designation as the Demilitarization
Enterprise Fund if the organization--
(1) is a private, nonprofit organization;
(2) is governed by a board of directors consisting of private
citizens of the United States; and
(3) provides assurances acceptable to the President that it will
use grants received under this section to provide financial support
in accordance with this section.
(f) Operational provisions
The following provisions of section 5421 of this title shall apply
with respect to the Demilitarization Enterprise Fund in the same manner
as such provisions apply to Enterprise Funds designated pursuant to
subsection (d) of such section:
(1) Subsection (d)(5), relating to the private character of
Enterprise Funds.
(2) Subsection (h), relating to retention of interest earned in
interest bearing accounts.
(3) Subsection (i), relating to use of United States private
venture capital.
(4) Subsection (k), relating to support from Executive agencies.
(5) Subsection (l), relating to limitation on payments to Fund
personnel.
(6) Subsections (m) and (n), relating to audits.
(7) Subsection (o), relating to record keeping requirements.
(8) Subsection (p), relating to annual reports.
In addition, returns on investments of the Demilitarization Enterprise
Fund and other payments to the Fund may be reinvested in projects of the
Fund.
(g) Experience of other Enterprise Funds
To the maximum extent practicable, the Board of Directors of the
Demilitarization Enterprise Fund should adopt for that Fund practices
and procedures that have been developed by Enterprise Funds for which
funding has been made available pursuant to section 5421 of this title.
(h) Consultation requirement
In the implementation of this section, the Secretary of State and
the Administrator of the Agency for International Development shall be
consulted to ensure that the Articles of Incorporation of the Fund
(including provisions specifying the responsibilities of the Board of
Directors of the Fund), the terms of United States Government grant
agreements with the Fund, and United States Government oversight of the
Fund are, to the maximum extent practicable, consistent with the
Articles of Incorporation of, the terms of grant agreements with, and
the oversight of the Enterprise Funds established pursuant to section
5421 of this title and comparable provisions of law.
(i) Initial implementation
The Board of Directors of the Demilitarization Enterprise Fund shall
publish the first annual report of the Fund not later than January 31,
1995.
(j) Termination of designation
A designation of an organization as the Demilitarization Enterprise
Fund under subsection (a) of this section shall be temporary. When
making the designation, the President shall provide for the eventual
termination of the designation.
(Pub. L. 103-160, div. A, title XII, Sec. 1204, Nov. 30, 1993, 107 Stat.
1779.)
Delegation of Functions
For delegation of certain authorities and duties of the President
under this section to Secretary of Defense, see Memorandum of President
of the United States, Jan. 29, 1994, 59 F.R. 5929, set out as a note
under section 5952 of this title.
Section Referred to in Other Sections
This section is referred to in section 5954 of this title.
