
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2395]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
          SUBCHAPTER III--GENERAL AND ADMINISTRATIVE PROVISIONS
 
                   Part II--Administrative Provisions
 
Sec. 2395. General authorities


(a) Manner of furnishing assistance; emphasis on loans

    Except as otherwise specifically provided in this chapter, 
assistance under this chapter may be furnished on a grant basis or on 
such terms, including cash, credit, or other terms of repayment 
(including repayment in foreign currencies or by transfer to the United 
States Government of commodities) as may be determined to be best suited 
to the achievement of the purposes of this chapter, and shall emphasize 
loans rather than grants wherever possible.

(b) Authority of the President

    The President may make loans, advances, and grants to, make and 
perform agreements and contracts with, or enter into other transactions 
with, any individual, corporation, or other body of persons, friendly 
government or government agency, whether within or without the United 
States, and international organizations in furtherance of the purposes 
and within the limitations of this chapter.

(c) Utilization of services and facilities of voluntary, nonprofit 
        organizations

    It is the sense of Congress that the President, in furthering the 
purposes of this chapter, shall use to the maximum extent practicable 
the services and facilities of voluntary, nonprofit organizations 
registered with, and approved by, the Agency for International 
Development.

(d) Acceptance of gifts, devises, bequests, grants, etc.

    The President may accept and use in furtherance of the purposes of 
this chapter, money, funds, property, and services of any kind made 
available by gift, devise, bequest, grant, or otherwise for such 
purpose.

(e) Health and accident insurance for foreign participants and foreign 
        employees

    (1) Any agency of the United States Government is authorized to pay 
the cost of health and accident insurance for foreign participants in 
any program of furnishing technical information and assistance 
administered by such agency while such participants are absent from 
their homes for the purpose of participation in such program.
    (2) Any agency of the United States Government is authorized to pay 
the cost of health and accident insurance for foreign employees of that 
agency while those employees are absent from their place of employment 
abroad for purposes of training or other official duties.

(f) Admission of alien participants

    Alien participants in any program of furnishing technical 
information and assistance under this chapter may be admitted to the 
United States if otherwise qualified as nonimmigrants under section 
1101(a)(15) of title 8, for such time and under such conditions as may 
be prescribed by regulations promulgated by the Secretary of State and 
the Attorney General.

(g) Powers and authorities of the President with respect to loans

    In making loans under this chapter, the President--
        (1) may issue letters of credit and letters of commitment;
        (2) may collect or compromise any obligations assigned to, or 
    held by, and any legal or equitable rights accruing to him, and, as 
    he may determine, refer any such obligations or rights to the 
    Attorney General for suit or collection;
        (3) may acquire and dispose of, upon such terms and conditions 
    as he may determine, any property, including any instrument 
    evidencing indebtedness or ownership (provided that equity 
    securities may not be directly purchased although such securities 
    may be acquired by other means such as by exercise of conversion 
    rights or through enforcement of liens or pledges or otherwise to 
    satisfy a previously incurred indebtedness), and guarantee payment 
    against any such instrument;
        (4) may determine the character of, and necessity for, 
    obligations and expenditures of funds used in making such loans and 
    the manner in which they shall be incurred, allowed, and paid, 
    subject to provisions of law specifically applicable to corporations 
    of the United States Government; and
        (5) shall cause to be maintained an integral set of accounts 
    which shall be audited by the General Accounting Office in 
    accordance with principles and procedures applicable to commercial 
    corporate transactions as provided by chapter 91 of title 31.

(h) Term of contracts and agreements

    A contract or agreement which entails commitments for the 
expenditure of funds made available under part I (except development 
loans) and subpart II of part II of subchapter I and under subchapter II 
of this chapter, may, subject to any future action of the Congress, 
extend at any time for not more than five years.

(i) Settlement and arbitration of claims arising under investment 
        guaranty operations

    Claims arising as a result of investment guaranty operations may be 
settled, and disputes arising as a result thereof may be arbitrated with 
the consent of the parties, on such terms and conditions as the 
President may direct. Payment made pursuant to any such settlement, or 
as a result of an arbitration award, shall be final and conclusive 
notwithstanding any other provision of law.

(j) Financial transactions with foreign governments; exemption

    The provisions of section 955 of title 18 shall not apply to prevent 
any person, including any individual, partnership, corporation, or 
association, from acting for, or participating in, any operation or 
transaction arising under this chapter, or from acquiring any obligation 
issued in connection with any operation or transaction arising under 
this chapter.

(k) Cost-type contracts with educational institutions; payment of 
        reimbursable indirect costs

    Any cost-type contract or agreement (including grants) entered into 
with a university, college, or other educational institution for the 
purpose of carrying out programs authorized by subchapter I of this 
chapter may provide for the payment of the reimbursable indirect costs 
of said university, college, or other educational institution on the 
basis of predetermined fixed-percentage rates applied to the total, or 
an element thereof, of the reimbursable direct costs incurred.

(l) Program oversight

     The Administrator of the agency primarily responsible for 
administering subchapter I of this chapter may use funds made available 
under that subchapter to provide program and management oversight for 
activities that are funded under that subchapter and that are conducted 
in countries in which the agency does not have a field mission or 
office.

(m) Working capital fund

    (1) There is established a working capital fund (in this subsection 
referred to as the ``fund'') for the United States Agency for 
International Development (in this subsection referred to as the 
``Agency'') which shall be available without fiscal year limitation for 
the expenses of personal and nonpersonal services, equipment, and 
supplies for--
        (A) International Cooperative Administrative Support Services; 
    and
        (B) rebates from the use of United States Government credit 
    cards.

    (2) The capital of the fund shall consist of--
        (A) the fair and reasonable value of such supplies, equipment, 
    and other assets pertaining to the functions of the fund as the 
    Administrator determines,
        (B) rebates from the use of United States Government credit 
    cards, and
        (C) any appropriations made available for the purpose of 
    providing capital,

minus related liabilities.
    (3) The fund shall be reimbursed or credited with advance payments 
for services, equipment, or supplies provided from the fund from 
applicable appropriations and funds of the Agency, other Federal 
agencies and other sources authorized by section 2357 of this title at 
rates that will recover total expenses of operation, including accrual 
of annual leave and depreciation. Receipts from the disposal of, or 
payments for the loss or damage to, property held in the fund, rebates, 
reimbursements, refunds and other credits applicable to the operation of 
the fund may be deposited in the fund.
    (4) At the close of each fiscal year the Administrator of the Agency 
shall transfer out of the fund to the miscellaneous receipts account of 
the Treasury of the United States such amounts as the Administrator 
determines to be in excess of the needs of the fund.
    (5) The fund may be charged with the current value of supplies and 
equipment returned to the working capital of the fund by a post, 
activity, or agency, and the proceeds shall he \1\ credited to current 
applicable appropriations.
---------------------------------------------------------------------------
    \1\ So in original. Probably should be ``be''.
---------------------------------------------------------------------------

(Pub. L. 87-195, pt. III, Sec. 635, Sept. 4, 1961, 75 Stat. 456; Pub. L. 
87-565, pt. III, Sec. 302(g), Aug. 1, 1962, 76 Stat. 262; Pub. L. 88-
205, pt. III, Sec. 302(e), Dec. 16, 1963, 77 Stat. 389; Pub. L. 89-171, 
pt. III, Sec. 302(g), Sept. 6, 1965, 79 Stat. 660; Pub. L. 89-583, pt. 
III, Sec. 302(d), Sept. 19, 1966, 80 Stat. 807; Pub. L. 90-137, pt. III, 
Sec. 302(i), Nov. 14, 1967, 81 Stat. 461; Pub. L. 95-424, title I, 
Sec. 102(g)(2)(G), Oct. 6, 1978, 92 Stat. 943; Pub. L. 96-53, title I, 
Sec. 121, Aug. 14, 1979, 93 Stat. 366; Pub. L. 106-264, title III, 
Sec. 301, Aug. 19, 2000, 114 Stat. 760; Pub. L. 106-309, title IV, 
Sec. 404, Oct. 17, 2000, 114 Stat. 1098.)

                       References in Text

    This chapter, referred to in subsecs. (a) to (d), (g), and (j), was 
in the original ``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 75 
Stat. 424, as amended, known as the Foreign Assistance Act of 1961. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 2151 of this title and Tables.


References to Subchapter I Deemed To Include Certain Parts of Subchapter 
    II, and References to Subchapter II Deemed To Exclude Such Parts

    References to subchapter I of this chapter are deemed to include 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II of this chapter, and references 
to subchapter II are deemed to exclude such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.


           References to Part I Deemed To Include Section 2293

    References to part I of subchapter I of this chapter are deemed to 
include a reference to section 2293 of this title. See section 
2293(d)(1) of this title.

                          Codification

    In subsec. (g)(5), ``chapter 91 of title 31'' substituted for ``the 
Government Corporation Control Act, as amended (31 U.S.C. 841 et seq.)'' 
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

    2000--Subsec. (l). Pub. L. 106-264 added subsec. (l).
    Subsec. (m). Pub. L. 106-309 added subsec. (m).
    1979--Subsec. (c). Pub. L. 96-53 substituted ``Agency for 
International Development'' for ``Advisory Committee on Voluntary 
Foreign Aid''.
    1978--Subsec. (h). Pub. L. 95-424 substituted ``part I (except 
development loans) and subpart II of part II of subchapter I'' for 
``subparts II, V, and VI of part II of subchapter I (except development 
loans)''.
    1967--Subsec. (e). Pub. L. 90-137, Sec. 302(i)(1), designated 
existing provisions as par. (1) and added par. (2).
    Subsec. (g). Pub. L. 90-137, Sec. 302(i)(2), struck out ``and 
sales'' after ``loans'' in introductory clause.
    1966--Subsec. (h). Pub. L. 89-583 excluded development loans under 
the Alliance for Progress from the provision that contracts or 
agreements which entail commitments for the expenditure of funds may not 
extend for more than five years.
    1965--Subsec. (g). Pub. L. 89-171 inserted ``and sales'' in 
introductory clause.
    1963--Subsec. (k). Pub. L. 88-205 added subsec. (k).
    1962--Subsec. (h). Pub. L. 87-565 included sections 2211 to 2213 of 
this title within the limitation on the duration of contracts and 
agreements.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-53 effective Oct. 1, 1979, see section 
512(a) of Pub. L. 96-53, set out as a note under section 2151 of this 
title.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-424 effective Oct. 1, 1978, see section 605 
of Pub. L. 95-424, set out as a note under section 2151 of this title.


                    Effective Date of 1967 Amendment

    Section 302(i)(2) of Pub. L. 90-137 provided in part that amendment 
of subsec. (g) by such section 302(i)(2) shall take effect on June 30, 
1968.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


                        International Agreements

    The negotiation, conclusion, and termination of international 
agreements pursuant to this chapter shall be subject to requirements of 
section 112b of Title 1, General Provisions, and to applicable 
regulations and procedures, see section 1-604 of Ex. Ord. No. 12163, 
Sept. 29, 1979, 44 F.R. 56677, eff. Oct. 1, 1979, set out as a note 
under section 2381 of this title.


Information to Congressional Committees on Negotiations Regarding Debts 
 Owed United States by Foreign Governments; Transmittal to Congress of 
                       Debt Modification Proposals

    Pub. L. 93-333, Sec. 4, July 8, 1974, 88 Stat. 290, relating to 
cancellation, renegotiation, etc., of any debt owed by a foreign 
government, was repealed by Pub. L. 95-424, title VI, Sec. 603(b), Oct. 
6, 1978, 92 Stat. 961.


                   Termination of Advisory Committees

    Advisory committees in existence on Jan. 5, 1973, to terminate not 
later than the expiration of the 2-year period following Jan. 5, 1973, 
unless, in the case of a committee established by the President or an 
officer of the Federal Government, such committee is renewed by 
appropriate action prior to the expiration of such 2-year period, or in 
the case of a committee established by the Congress, its duration is 
otherwise provided by law. See section 14 of Pub. L. 92-463, Oct. 6, 
1972, 86 Stat. 776, set out in the Appendix to Title 5, Government 
Organization and Employees.
