Editor’s note: PL 12-17 § 9 created this subchapter as subchapter X. However, because PL 9-135 had created the current subchapter X as subchapter IX, and because PL 10-152 had renumbered that subchapter as subchapter X, PL 12-17 created another competing subchapter X. Since PL 12-17 creates new sections with numbers greater than the current subchapter X, a codification decision was made to refer to the subchapter created by PL 12-17 § 9 as subchapter XI.
The purpose of the Fund is to provide an ongoing fund for the receipt and disbursement of funds associated with the loans from the Asian Development Bank (referred to as the “Bank” in this subchapter) with respect to the Basic Social Services Project, the Public Sector Reform Program, and any other loan from an external lender if the National Government authorizing legislation for that loan provides that the loan is to be repaid out of the Fund, all said loans hereinafter referred to collectively as the “subject loans” and individually as a “subject loan”.
(1) a disbursing account for each of the subject loans (except the Public Sector Reform Program loan, as to which all disbursing of loan proceeds has been completed) to receive and disburse the portion of the proceeds of that loan intended for the use of the National Government;
(2) a master repayment account for use by the National Government of its own share of the subject loans and in consolidating repayments from the State repayment accounts;
(3) a repayment account for each State for use by the National Government on behalf of the State in reserving funds for repayment of the State’s share of the subject loans; and
(4)such other accounts as may be deemed appropriate.
(1) Funds received pursuant to the loan agreements between the Federated States of Micronesia and the external lender with respect to a subject loan shall be deposited in the appropriate disbursing account.
(2) Funds appropriated by the National Government for execution of the programs and projects of a subject loan shall be deposited in the appropriate disbursing account.
(3) Funds received from a State or from a trust account administered by the National Government on behalf of a State for repayment of the State's portion of a subject loan shall be deposited in the State’s repayment account.
(4) Funds appropriated by the National Government for repayment of a subject loan shall be deposited in the master repayment account.
(5) Funds received from any other source associated with the subject loans shall be deposited in the appropriate account.
(6) Investment returns or losses shall remain with the account earning or suffering them.
(1) The Secretary of the Department of Finance and Administration is hereby authorized to make the following disbursements of moneys available in the Fund, without further authorization or appropriation by the Congress of the Federated States of Micronesia, for the following and no other purposes:
(a) execution of the programs and projects of the subject loans to the extent and in the manner called for in the applicable loan agreements or appropriating legislation applicable to the subject loan associated with that disbursing account;
(b) from a disbursing account to the master repayment account with respect to any surplus funds remaining after the programs and projects associated with that disbursement account have been executed;
(c) from the master repayment account for repayment of a subject loan in accordance with its terms;
(d) from a State repayment account for repayment of a subject loan in accordance with its terms;
(e) from a State repayment account to the State as called for by written agreement between the State and the National Government; or
(f) as otherwise required by law.
(2) Unexpended moneys in the Fund shall not revert to the General Fund nor lapse at the end of the fiscal year.
Source: PL 12-17 § 14.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Congress are found in title 3 of this code.
The Fund shall be administered by the Secretary of the Department of Finance and Administration, who shall administer the fund in accordance with the applicable loan agreements, financing or relending agreements, law, generally accepted accounting standards, and sound financial practices for the effectuation and implementation of the provisions of this subchapter.
The President of the Federated States of Micronesia, or his designee, shall report to the Congress of the Federated States of Micronesia and to the Governor of each participating State on the status of the Fund at the close of each fiscal year.
Source: PL 12-17 § 16.
Cross-reference: The statutory provisions on the President and the Executive are found in title 2 of this code. The statutory provisions on the FSM Congress are found in title 3 of this code.