§ 265.
346 words·~2 min read·
/usc/title-48/section-265A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
- Trust Fund The Government of the United States shall contribute the amounts set forth in section 266 to the Trust Fund to be used in the sectors described in section 261(a) and in accordance with the Agreement Between the Government of the United States of America and the Government of the Federated States of Micronesia Regarding the Compact Trust Fund, done at Palikir on May 23, 2023 (‘2023 Trust Fund Agreement’). The 2023 Trust Fund Agreement, and any successor agreements, shall govern the Trust Fund and all contributions made pursuant to this Title and shall provide for:
Exemption from federal and state taxes in the United States and the Federated States of Micronesia of all funds derived from the United States investment; Annual reports to the Government of the United States and the Government of the Federated States of Micronesia; Distributions from the Trust Fund to provide an ongoing source of support for certain needs of the Federated States of Micronesia while protecting the sustainability of the Trust Fund; Fiscal procedures that are sufficient to provide oversight of the Trust Fund, including for expending of and accounting for distributions, and to ensure that distributions are used for the purposes described in section 26l(a);
A Joint Trust Fund Committee composed of three voting members appointed by the Government of the United States, to include the chair of the Joint Trust Fund Committee, and three voting members appointed by the Government of the Federated States of Micronesia; and Appropriate remedies for the gross failure of the Government of the Federated States of Micronesia to use Trust Fund distributions in accordance with the 2023 Trust Fund Agreement, to include the return to the Government of the United States of the present market value of its contributions to the Trust Fund and the present market value of any undistributed income derived therefrom.
If this Compact, as amended, is terminated, the provisions of sections 451 through 453 of this Compact, as amended, shall govern treatment of any United States contributions to the Trust Fund and any undistributed income derived therefrom.