Chapter 6. To authorize the settlement of the indebtedness of the French Republic to the United States of America
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CHAP. 6.— An Act To authorize the settlement of the indebtedness of the French Republic to the United States of America. December 18, 1929.[[H. R. 6585](/us/bill/71/hr/6585).][[Public, No. 24](/us/pl/71/24).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, France.Settlement of its World War indebtedness to United States, approved.*Ante*, p. 44. That the settlement of the indebtedness of the French Republic 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 102, Sixty-ninth Congress, first session, is hereby approved in general terms as follows:
Amount to be funded.The amount of the indebtedness to be funded, after allowing for certain cash payments made by France, is $4,025,000,000, which has been computed as follows: 49 Principal of obligations held for cash advanced under Liberty bond acts $2, 933, 405, 070.15 Accrued and unpaid interest at 4¼ per centum to December 15, 1922 445, 066, 027.49 $3, 378, 471, 097.64 Principal of obligations given for surplus war supplies purchased on credit 407, 341, 145.01 Interest at 4¼ per centum from the last interest payment date prior to December 15, 1922, to December 15, 1922 6, 324, 940.79 413, 666, 085.80 Total indebtedness as of December 15, 1922 3, 792, 137, 183.44 Accrued and unpaid interest at 3 per centum per annum on this amount from December 15, 1922, to June 15, 1925 284, 410, 288.75 Total indebtedness as of June 15, 1925 4, 076, 547, 472.19 credits Payments received on account of interest between December 15, 1922, and June 15, 1925 $50, 917, 643.13 Payments on account of principal since December 15, 1922 230, 171.44 Interest on principal payments at 3 per centum per annum from date of payment to June 15, 1925 12, 970.73 51, 160, 785.30 Net indebtedness as of June 15, 1925 4, 025, 386, 686.89 Paid in cash upon execution of agreement 386, 686.89 Total indebtedness to be funded into bonds 4, 025, 000, 000.00 The principal of the bonds shall be paid in annual installments onPrincipal payable in installments.
June 15 of each year up to and including June 15, 1987, on a fixed schedule. France will pay the following annual principal installments during the first five years: June 15, 1926 $30, 000, 000 June 15, 1927 30, 000, 000 June 15, 1928 32, 500, 000 June 15, 1929 32, 500, 000 June 15, 1930 35, 000, 000 The amount of the principal installment due the sixth year shallAmounts after fifth year. be $1,350,000, the subsequent annual principal installments increasing until in the sixty-second year of the debt-funding period the final principal installment shall be $113,694,786.64, the aggregate principal installments being equal to the total principal indebtedness to be funded into bonds.
France, at its option, upon not less thanOptional postponement of principal and interest prior to 1932. ninety days’ advance notice to the United States, may postpone so much of any payment on account of principal and/or interest falling due in any one year after June 15, 1926, and prior to June 16, 1932, as shall be in excess of $20,000,000 in any one year, to any subsequent June 15 or December 15 not more than three years distant from its due date; and upon like notice France, at its option,Payment on principal after 1932. may postpone any payment on account of principal falling due after June 15, 1932, to any subsequent June 15 or December 15 not more than three years distant from its due date, but any such postponement shall be only on condition that in case France shall at anyCondition. time exercise this option as to any payment of principal and/or 50interest, the payment falling due in the third succeeding year can not be postponed at all unless and until the payment of principal and/or interest due three years, two years, and one year previous Interest on postponed payments.thereto shall actually have been made.
All such postponed payments shall bear interest at the rate of 4¼ per centum per annum payable semiannually. Prior payments allowed.France shall have the right to pay off additional amounts of principal of the bonds on June 15 and December 15 of any year upon ninety days’ advance notice. Interest rates after June 15, 1930.The bonds to be issued shall bear no interest until June 15, 1930, and thereafter shall bear interest at the rate of 1 per centum per annum from June 15, 1930, to June 15, 1940; at the rate of 2 per centum per annum from June 15, 1940, to June 15, 1950; at the rate of 2½ per centum per annum from June 15, 1950, to June 15, 1958; at the rate of 3 per centum per annum from June 15, 1958, to June 15, 1965; at the rate of 3½ per centum per annum after June 15, 1965, all payable semiannually on June 15 and December 15 of each year.
Payments may be made in United States bonds.Any payment of interest or principal may be made at the option of France in any United States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest. Approved, December 18, 1929.