Chapter 199. To authorize the settlement of the indebtedness of the Government of the Kingdom of Belgium to the Government of the United States of America
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CHAP. 199.— An Act To authorize the settlement of the indebtedness of the Government of the Kingdom of Belgium to the Government of the United States of America.April 30, 1926.[[H. R. 6774](/us/bill/69/hr/6774).][[Public, No. 159](/us/69/pl/159).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Belgium.Settlement of its war indebtedness approved.Vol. 42, p. 363. That the settlement of the indebtedness of the Government of the Kingdom of Belgium to the Government of the United States of America made by the World War Foreign Debt Commission and approved by the President upon the terms and conditions as set forth in Senate Document Numbered 4, Sixty-ninth Congress, first session, is hereby approved in general terms as follows:
Indebtedness classified.The indebtedness to be funded has been divided into two classes, that incurred prior to November 11, 1918, called the prearmistice indebtedness, and that incurred subsequent to November 11, 1918, called the postarmistiee indebtedness. Amount to be funded of prearmistice indebtedness.The amount of the prearmistice indebtedness to be funded is $171,780,000, which is the principal amount of the obligations of Belgium received by the United States for cash advances made prior Payments annually without interest.to November 11, 1918.
The prearmistice indebtedness is payable in annual installments without interest over a period of sixty-two years, the first payment falling due June 15, 1926. Belgium is to pay the following amounts on the dates specified: June 15, 1926, $1,000,000; June 15,'1927, $1,000,000; June 15, 1928, $1,250,000; June 15, 1929, $1,750,000; June 15, 1930, $2,250,000; June 15, 1931, $2,750,000; June 15, 1932, to June 15, 1986, inclusive, $2,900,000 per annum; June 15, 1987, $2,280,000. Funding of postarmistice principal and interest into bonds.The amount of the postarmistice indebtedness to be funded after allowing for certain cash payments is $246,000,000, which lias been computed as follows:
Principal of obligations for cash advanced $175, 430, 808. 68 Accrued and unpaid interest at 4¼ per centum per annum to December 15, 1922 26,314,401.68 $201, 745, 300. 34 Principal of obligations for war material sold on credit 29, 818, 933. 39 Accrued and unpaid interest at 4¼ per centum per annum to December 15, 1922 491, 359, 24 30, 310, 292. 63 Total indebtedness as of December 15, 1922 232, 055, 592. 97 Accrued interest thereon at 3 per centum per annum from December 15, 1922, to June 15, 1925 17,404,160.47 Total Indebtedness as of June 15, 1925 249, 459, 762. 44 377 Deduct:
Payments on account of interest received between December 15, 1922. and June 15, 1925, on obligations for war material $3,442,346.20 Principal payment of $172.01 made August 7, 1923, together with interest thereon tit 3 per centum per annum to June 15, 1925 181. 58 $3,442, 527.78 Net Indebtedness as of June 15, 1925 246,017,234.66 To be paid in cash upon execution of agreement 17,234,66 Total Indebtedness to be funded into bonds 246,000,000.00 The principal of the bonds issued for the postarmistice indebtednessPrincipal payable in installments. shall be paid in annual installments on June 15 of each year up to and including June 15, 1987, on a fixed schedule subject to the right of the Government of the Kingdom of Belgium after June 15, 1935, to make such payments in three-year periods.
The amount of the first principal installment shall be $1,100,000, the annual principal installments to increase until in the sixty-second year the amount of the final principal installment shall be $9,600,000, the aggregate principal installments being equal to the total principal of the postarmistice indebtedness to be funded into bonds. The Government of the Kingdom of Belgium shall have the rightPrior payments allowed. to pay off additional amounts of the bonds on June 15 or December 15 of any year upon not less than ninety days’ advance notice.
The bonds issued for the postarmistice indebtedness shall bearInterest rates. interest from June 15, 1925, in the amounts and on the dates set forth in the following schedule: December 15, 1925, $870,000; June 15, 1926, $870,000; December 15, 1926, $1,000,000; June 15, 1927, $1,000,000; December 15, 1927, $1,125,000: June 15, 1928, $1,125,000; December 15, 1928, $1,250,000; June 15, 1929, $1,250,000; December 15, 1929, $1,375,000; June 15, 1930, $1,375,000; December 15, 1930, $1,625,000;
June 15, 1931, $1,625,000; December 15, 1931, $1,875,000; June 15, 1932, $1,875,000; December 15, 1932, $2,125,000; June 15, 1933, $2,125,000; December 15, 1933, $2,375,000; June 15, 1934, $2,375,000; December 15, 1934, $2,625,000; June 15, 1935, $2,625,000 until and including June 15, 1935, and thereafter at the rate of 3^ per centum per annum, payable semiannually on June 15 and December 15 of each year, until the principal of said bonds shall have been paid. Any payment of interest or principal may be made at the optionAcceptance of United States bonds In payment. of the Government of the Kingdom of Belgium in any United States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest.
Approved, April 30, 1926.