[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2783 Introduced in House (IH)]

  1st Session
                                H. R. 2783

To restore Congress' constitutional role in international transactions 
 involving the Exchange Stabilization Fund, and to limit the amount of 
 individual loans or credits that may be provided to a foreign entity 
                           through that fund.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2003

   Mr. Paul introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
 Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To restore Congress' constitutional role in international transactions 
 involving the Exchange Stabilization Fund, and to limit the amount of 
 individual loans or credits that may be provided to a foreign entity 
                           through that fund.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign Aid Limitation Act''.

SEC. 2. LIMITATION ON AMOUNT OF LOAN TO FOREIGN ENTITY FROM THE 
              EXCHANGE STABILIZATION FUND.

    Section 5302 of title 31, United States Code, is amended by adding 
at the end the following:
    ``(e) The Secretary may not use the fund to make a loan or extend 
credit in an amount that exceeds $250,000,000 to an entity the majority 
of which is owned or controlled by 1 or more foreign persons or foreign 
governments.''.

SEC. 3. ADVANCE NOTICE TO CONGRESS OF LOAN TO BE MADE FROM THE EXCHANGE 
              STABILIZATION FUND TO A FOREIGN ENTITY FOR MORE THAN 60 
              DAYS.

    Section 5302 of title 31, United States Code, is further amended by 
adding at the end the following:
    ``(f) The Secretary may not use the fund to make a loan or extend 
credit for a period that exceeds 60 days to an entity the majority of 
which is owned or controlled by 1 or more foreign persons or foreign 
governments, unless, before the loan is made, the President certifies 
in writing to the Committees on Financial Services and on International 
Relations of the House of Representatives and to the Committees on 
Banking, Housing, and Urban Affairs and on Foreign Relations of the 
Senate that any United States expenditures involved in the loan or 
credit is adequately backed by an assured source of repayment the 
identity of whom is specified in the certification.''.

SEC. 4. PROHIBITION ON LOAN OF MORE THAN $1,000,000,000 FROM THE 
              EXCHANGE STABILIZATION FUND WITHOUT EXPRESS STATUTORY 
              AUTHORIZATION; FINANCIAL CRISIS EXCEPTION.

    Section 5302 of title 31, United States Code, is further amended by 
adding at the end the following:
    ``(g)(1) Except as provided in paragraph (2), the Secretary may not 
use the fund to make a loan or extend credit in an amount that exceeds 
$1,000,000,000 to an entity the majority of which is owned or 
controlled by 1 or more foreign persons or foreign governments, without 
express statutory authorization for the particular loan or extension of 
credit.
    ``(2) Paragraph (1) shall not apply to a loan or extension of 
credit if the President certifies in writing to the Committees on 
Financial Services and on International Relations of the House of 
Representatives and to the Committees on Banking, Housing, and Urban 
Affairs and on Foreign Relations of the Senate that the loan or 
extension of credit is necessary to address a financial crisis in a 
foreign country, which crisis poses a threat to the interests of the 
United States or the international financial system.
    ``(3)(A) Paragraph (1) shall apply to a loan or extension of 
credit, notwithstanding a certification made pursuant to paragraph (2), 
if a joint resolution that meets the requirements of subparagraph (B) 
of this paragraph is enacted with respect to the certification.
            ``(B) A joint resolution meets the requirements of this 
        subparagraph with respect to a certification if--
                    ``(i) the joint resolution is introduced within 5 
                days after the date the certification is made;
                    ``(ii) the matter after the resolving clause of the 
                joint resolution is as follows: `The Congress 
                disapproves of the certification made by the President 
                pursuant to section 5302(g)(2) of title 31, United 
                States Code, on                    .', the blank space 
                being appropriately filled in with the date the 
                certification is made; and
                    ``(iii) the title of the joint resolution is as 
                follows: `Joint resolution disapproving the 
                certification made by the President on
                                     pursuant to section 5302(g)(2) of 
                title 31, United States Code.', the blank space being 
                appropriately filled in with the date the certification 
                is made.
            ``(C) Subsections (d), (e), and (f) of section 208 of 
        Public Law 100-526 (102 Stat. 2632 et seq.) shall apply with 
        respect to any such joint resolution.''.
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