Aligning SEC Regulations for the World Bank’s International Development Association Act in plain language
1: Short title
This section would let the Act be officially called the "Aligning SEC Regulations for the World Bank's International Development Association Act."
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1. Short title This Act may be cited as the Aligning SEC Regulations for the World Bank’s International Development Association Act .
2: Exemption of securities of the International Development Association from the securities laws
This section would amend the International Development Association Act (22 U.S.C. 284-284cc) by adding a new section 32. Under that new section, any securities issued by the International Development Association (IDA), including any guaranty by the IDA, and any securities the IDA guarantees for both principal and interest, would count as exempted securities under section 3(a)(2) of the Securities Act of 1933 and section 3(a)(12) of the Securities Exchange Act of 1934, the same exemption already given to the securities of other multilateral development banks in which the United States is a member. The IDA would have to file annual and other reports about those securities with the Securities and Exchange Commission (SEC), in whatever form the SEC decides fits the IDA's special character and operations and is needed in the public interest or to protect investors. The SEC, acting in consultation with the National Advisory Council on International Monetary and Financial Problems, could suspend this exemption at any time for any or all of the IDA's securities for as long as the suspension lasts, and the SEC would have to include information about how this section is working in its annual reports to Congress. The amendment would take effect 30 days after this Act becomes law. However, it would not take effect if, before that 30-day deadline, the Secretary of the Treasury reports to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs that the IDA is providing financial assistance to a country whose government the Secretary of State has determined, under section 6(j) of the Export Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961, or section 40 of the Arms Export Control Act, to have repeatedly supported acts of international terrorism.
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2. Exemption of securities of the International Development Association from the securities laws (a) In general The International Development Association Act ( 22 U.S.C. 284–284cc ) is amended by adding at the end the following: 32. Exemption of securities of the International Development Association from the securities laws (a) Exemption from securities laws; reports to Securities and Exchange Commission Any securities issued by the Association (including any guaranty by the Association, whether or not limited in scope) and any securities guaranteed by the Association as to both principal and interest shall be deemed to be exempted securities within the meaning of section 3(a)(2) of the Securities Act of 1933 ( 15 U.S.C. 77c(a)(2) ) and section 3(a)(12) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a)(12) ). The Association shall file with the Securities and Exchange Commission such annual and other reports with regard to such securities as the Commission shall determine to be appropriate in view of the special character of the Association and its operations and necessary in the public interest or for the protection of investors. (b) Authority of Securities and Exchange Commission To suspend exemption; reports to Congress The Securities and Exchange Commission, acting in consultation with the National Advisory Council on International Monetary and Financial Problems, is authorized to suspend the provisions of subsection (a) of this section at any time as to any or all securities issued or guaranteed by the Association during the period of such suspension. The Commission shall include in its annual reports to the Congress such information as it shall deem advisable with regard to the operations and effect of this section. . (b) Effective date (1) In general The amendment made by subsection (a) shall take effect 30 days after the date of enactment of this Act. (2) Exception Notwithstanding paragraph (1), the amendment made by subsection (a) shall not take effect if, before the effective date described under paragraph (1), the Secretary of the Treasury reports to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that the International Development Association is providing financial assistance to any country the government of which the Secretary of State has determined, for purposes of section 6(j) of the Export Administration Act of 1979, section 620A of the Foreign Assistance Act of 1961, or section 40 of the Arms Export Control Act, to be a government that has repeatedly provided support for acts of international terrorism.