Chapter 167. To authorize the settlement of the indebtedness of the Kingdom of Hungary to the United States of America
710 words·~3 min read·
/statutes-at-large/vol-43/chapter-167-709399·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
CHAP. 167.— An Act To authorize the settlement of the indebtedness of the Kingdom of Hungary to the United States of America. May 23, 1924.[[H. R. 8905](/us/bill/68/hr/8905).][[Public, No. 128](/us/pl/68/128).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, * Hungary.Settlement of Its World War indebtedness approved.Vol. 42, p. 363. That the settlement of the indebtedness of the Kingdom of Hungary to the United States of America, made by the World War Foreign Debt Commission and approved by the President upon the following terms, is hereby approved and authorized:
Funding of principal and interest into bonds.Principal amount of obligation to be funded, $1,685,835.61; interest accrued thereon to December 15, 1923, at the rate of 414 per centum per annum, $253,917.43; total principal and interest accrued and unpaid as of December 15, 1923, $1,939,753.04; less payment in cash by Hungary on April 25, 1924, $753.04; total indebtedness to be funded into bonds, $1,939,000. Principal payable In installments.The principal of the bonds shall be paid in annual installments, on the 15th day of December, up to and including December 15, 1985, on a fixed schedule, subject to the right of the Government of Hungary to make these payments in three-year periods; the amount of the first year’s installment shall be $9,600, the installments to increase with due regularity until, in the sixty-second year, the amount of the installment shall be $75,000, the aggregate installments being equal to the total principal of the debt.
Prior payments allowed.The Government of Hungary shall have the right to pay off additional amounts of the principal of the bonds on any interest date upon ninety days’ notice. Interest rates.Interest shall be payable upon the unpaid balances at the following rates, on December 15 and June 15 of each year: At the rate of 3 per centum per annum, payable semiannually, from December 15, 1923, to December 15, 1933, and thereafter at137 the rate of 312 per centum per annum, payable semiannually until final payment.
The Government of Hungary shall have the right to pay up toAcceptance of additional bonds for interest on accrued interest. one-half of any interest accruing between December 15, 1923, and December 15, 1928, on the $1,939,000 principal amount of the bonds first to be issued in bonds of Hungary dated as of the respective dates when the interest to be paid thereby becomes due, payable as to principal on the 15th day of December in each succeeding year, up to and including December 15, 1985, on a fixed schedule, in annual installments, increasing with due regularity in proportion to and in the manner provided for payments to be made on account of principal of the original issue of bonds, bearing the same rates of interest and being similar in other respects to such original issue of bonds.
Any payment of interest or of principal shall be made in UnitedPayment in gold coin or United States bonds. States gold coin of the present standard of value or at the option of the Government of Hungary, in any United States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest. The payment of the principal and interest of the bonds shall beSecurity for payments. secured in the same manner and to the same extent as the obligation of Hungary which is to be funded: *Provided, however*, That all or*Proviso*.Release in cooperation with other creditor nations, for immediate reconstruction needs. any part of such security may be released by the Secretary of the Treasury on such terms and conditions as he may deem necessary or appropriate in order that the United States may cooperate in any program whereby Hungary may be able to finance its immediate needs by the flotation of a loan for reconstruction purposes, if and when substantially all other creditor nations holding obligations similar to that held by the United States which is to be funded, to wit, Denmark, France, Great Britain, Holland, Norway, Sweden, and Switzerland, shall release to a similar extent the security enjoyed by such obligations.
The Secretary of the Treasury shall be authorized to decide whenSubject to decision of Secretary of the Treasury. this action has been substantially taken. Approved, May 23, 1924.