
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: 31USC5302]

 
                       TITLE 31--MONEY AND FINANCE
 
                           SUBTITLE IV--MONEY
 
                    CHAPTER 53--MONETARY TRANSACTIONS
 
               SUBCHAPTER I--CREDIT AND MONETARY EXPANSION
 
Sec. 5302. Stabilizing exchange rates and arrangements

    (a)(1) The Department of the Treasury has a stabilization fund. The 
fund is available to carry out this section, 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), and for investing in obligations of 
the United States Government those amounts in the fund the Secretary of 
the Treasury, with the approval of the President, decides are not 
required at the time to carry out this section. Proceeds of sales and 
investments, earnings, and interest shall be paid into the fund and are 
available to carry out this section. However, the fund is not available 
to pay administrative expenses.
    (2) Subject to approval by the President, the fund is under the 
exclusive control of the Secretary, and may not be used in a way that 
direct control and custody pass from the President and the Secretary. 
Decisions of the Secretary are final and may not be reviewed by another 
officer or employee of the Government.
    (b) Consistent with the obligations of the Government in the 
International Monetary Fund on orderly exchange arrangements and a 
stable system of exchange rates, the Secretary or an agency designated 
by the Secretary, with the approval of the President, may deal in gold, 
foreign exchange, and other instruments of credit and securities the 
Secretary considers necessary. However, a loan or credit to a foreign 
entity or government of a foreign country may be made for more than 6 
months in any 12-month period only if the President gives Congress a 
written statement that unique or emergency circumstances require the 
loan or credit be for more than 6 months.
    (c)(1) By the 30th day after the end of each month, the Secretary 
shall give the Committee on Banking, Finance and Urban Affairs of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a detailed financial statement on the 
stabilization fund showing all agreements made or renewed, all 
transactions occurring during the month, and all projected liabilities.
    (2) The Secretary shall report each year to the President and 
Congress on the operation of the fund.
    (d) A repayment of any part of the first subscription payment of the 
Government to the International Monetary Fund, previously paid from the 
stabilization fund, shall be deposited in the Treasury as a 
miscellaneous receipt.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 994.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
5302(a)..............................  31:822a(b)(1).                  Jan. 30,
 1934, ch. 6, Sec.  10(a),
                                                                        (b)(1),
 (c), 48 Stat. 341, 342; Jan. 23,
                                                                        1937, c
h. 5, Sec.  1, 50 Stat. 4; July
                                                                        6, 1939
, ch. 260, Secs.  1, 2, 53 Stat.
                                                                        998; Ju
ne 30, 1941, ch. 265, Sec.  1, 55
                                                                        Stat. 3
95; Apr. 29, 1943, ch. 76, 57
                                                                        Stat. 6
8; July 31, 1945, ch. 339, Sec.
                                                                        7(a), 5
9 Stat. 514; Dec. 30, 1970, Pub.
                                                                        L. 91-5
99, 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, Se
c.  4(b), 91 Stat. 1229; Nov. 8,
                                                                        1978, P
ub. L. 95-612, Secs.  1, 6, 92
                                                                        Stat. 3
091, 3092.
5302(b)..............................  31:822a(a)(1st sentence).
5302(c)(1)...........................  31:822a(b)(2).                  Jan. 30,
 1934, ch. 6, 48 Stat. 337, Sec.
                                                                        10(b)(2
); added Nov. 8, 1978, Pub. L. 95-
                                                                        612, Se
c.  6, 92 Stat. 3092.
5302(c)(2)...........................  31:822a(a)(last sentence).
5302(d)..............................  31:822a(c).
-------------------------------------------------------------------------------
---------------------------------

    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.

                  Section Referred to in Other Sections

    This section is referred to in section 5304 of this title; title 22 
sections 262r-3, 286e-3, 286e-7, 286o, 5411.
