Page:United States Statutes at Large Volume 75.djvu/466

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[75 Stat. 426]
[75 Stat. 426]
PUBLIC LAW 87-000—MMMM. DD, 1961


PUBLIC LAW 8 7 - 1 9 5 - S E P T. 4, 1961

[75 ST A T.




201. GENERAL AUTHORITY.— (a) The President shall establish a fund to be known as the "Development Loan F u n d " to be used by the President to make loans pursuant to the authority contained in this title. Development o f (b) The President is authorized to make loans payable as to e c o n o m i c resources, e t c. principal and interest in United States dollars on such terms and conditions as he may determine, in order to promote the economic development of less developed friendly countries and areas, with emphasis upon assisting long-range plans and programs designed to develop economic resources and increase productive capacities. I n so doing, the President shall take into account (1) whether financing could be obtained in whole or in part from other free-world sources on reasonable terms, (2) the economic and technical soundness of the activity to be financed, (3) whether the activity gives reasonable promise of contributing to the development of economic resources or to the increase of productive capacities in furtherance of the purposes of this title, (4) the consistency of the activity with, and its relationship to, other development activities being undertaken or planned, and its contribution to realizable long-range objectives,.(5) the extent to which the recipient country is showing a responsiveness to the vital economic, political, and social concerns of its people, and demonstrating a clear determination to take effective self-help measures, and (6) the possible effects uoon the United States economy, with special reference to areas of substantial labor surplus, of the loan involved. Tx)ans shall be made under this title only upon a finding of reasonable prospects of repayment. (c) The authority of section 610 may not be used to decrease the funds available under this title, nor may the authority of section 614 (a) be used to waive the requirements of this title. (d) Funds made available for this title shall not be loaned or reloaned at rates of interest excessive or unreasonable for the borrower and in no event higher than the applicable legal rate of interest of the country in which the loan is made. SEC. 202. AUTHORIZATION.—(a) There is hereby authorized to be appropriated to the President for the purposes of this title $1,200,000,000 for the fiscal year 1962 and $1,500,000,000 for each of the next four succeeding fiscal years, which sums shall remain available until expended: Provided, That any unappropriated portion of the amount authorized to be appropriated for any such fiscal year may be appropriated in any subsequent fiscal year during the above period in addition to the amount otherwise authorized to be appropriated for such subsequent fiscal year. Authority to en(b) Whenever the President determines that it is important to the ter into agreements. advancement of United States interests and necessary in order to further the purposes of this title, and in recognition of the need for reasonable advance assurances in the interest of orderly and effective execution of long-term plans and programs of development assistance, SEC.