Chapter 223. To authorize the settlement of the indebtedness of the Kingdom of Rumania to the United States of America
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CHAP. 223.— An Act To authorize the settlement of the indebtedness of the Kingdom of Rumania to the United States of America.May 3, 1926.[[H. R. 6772](/us/bill/69/hr/6772).][[Public, No. 167](/us/pl/69/167).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Rumania.Settlement of its World War indebtedness approved.Vol. 42, p. 363. That the settlement of the indebtedness of the Kingdom of Rumania to 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 5, Sixty-ninth Congress, first session, is hereby approved in general terms as follows:
The amount of the indebtedness to be funded, after allowingAmount to be funded. for the cash payments made by the Kingdom of Rumania and the credits set out below, is $44,590,000, which has been computed as follows: Principal amount of Indebtedness to be funded $36, 128, 494. 94Funding of principal and interest in bonds. Interest accrued and unpaid thereon to December 15, 1922, at the rate of 4¼ per centum a year 5, 365, 806. 08 Total indebtedness as of December 15, 1922 41, 494, 301. 02 Interest accrued and unpaid thereon to June 15, 1925, at the rate of 3 per centum a year 3, 112, 072. 59 44, 606, 373. 61 Credits allowed by War Department on material together with interest thereon 11, 922. 07 Total net Indebtedness as of June 15, 1925 44, 594, 451. 54 To be paid in cash upon execution of agreement 4,451. 54 Total indebtedness to be funded into bonds 44, 590, 000. 00 The principal amount of the bonds to be delivered to the UnitedPrincipal amount of bonds.
States is $66,560,560.43, the increase over the funded indebtedness as of June 15, 1925, being due to the smaller payments during the first fourteen years than would have been payable upon the basis of the British-American settlement, this difference being funded over the remaining forty-eight years, compounded annually, at the rates of 3 per centum per annum up to and including the tenth year and 3½ per centum per annum from the eleventh to the fourteenth year, both inclusive.
The principal of the bonds shall bePrincipal payable in installments. paid in annual installments on June 15 of each year up to and including June 15, 1987, subject to the right of the Kingdom of Rumania, after June 15, 1939, to make such payments in three-year periods. The first fourteen annual installments are to be paidInstallments without interest. without interest on the dates specified and in the following amounts: June 15, 1926, $200,000; June 15, 1927, $300,000; June 15, 1928, $400,000;
June 15, 1929, $500,000; June 15, 1930, $600,000; June 15, 1931, $700,000; June 15, 1932, $800,000; June 15, 1933, $1,000,000; June 15, 1934, $1,200,000; June 15, 1935, $1,400,000; June 15, 1936, $1,600,000; June 15, 1937, $1,800,000; June 15, 1938, $2,000,000; June 15, 1939, $2,200,000. The remaining forty-eight installmentsInterest on remaining are to be paid annually on June 15 of each year, with interest at the rate of 3½ per centum per annum from June 15, 1939, payable semiannually on June 15 and December 15 of each year.
The amount of the installment due in the fifteenth year is $430,560.43, the annual installments to increase thereafter until in the sixty-second year the amount of the final installment will be $2,172,000, the aggregate installments being equal to the total face amount of bonds to be delivered, namely, $66,560,560.43. The Kingdom of Rumania shall have the right to pay oil additionalPrior payments allowed. amounts of the principal of the bonds on June 15 or December 15 of any year upon not less than ninety days’ advance notice. 386 Any payment of interest or of principal may be made at thePayments may be made in United States bonds. option of the Kingdom of Rumania in any obligations of the United States issued after April 6, 1917, such obligations to be taken at par and accrued interest.
Approved, May 3, 1926.