development loan fund

development loan fund Sec. 203. Title II of chapter II of the Mutual Security Act of 1954, as amended, which relates to the Development Loan Fund, is amended as follows: (a) Amend section 202(b), which relates to general authority, as follows: (1) Insert the following sentence immediately after the second sentence: “The Fund in its operations shall recognize that development loan assistance will be most effective in those countries which snow a responsiveness to the vital long-term economic, political, and social concerns of their people, demonstrate a clear willingness to take effective self-help measures, and effectively demonstrate that such assistance is consistent with, and makes a contribution to, workable long-term economic development objectives.” (2) In the next to last sentence, immediately before the period at the end thereof, insert the following: “nor shall the fractional reserve maintained by the Development Loan Fund for any guaranty made pursuant to this section be less in any case than 50 per centum of the contractual liability of the Development Loan Fund under such guaranty, and the total contractual liability of the Development Loan Fund under all of such guaranties shall not, at any one time, exceed $100,000,000”. (b) Amend section 203, which relates to capitalization, to read as follows: “Sec. 203. Capitalization.— There is hereby authorized to be appropriated to the President at any time after enactment of the Mutual Security Act of 1959 without fiscal year limitation for advances to the Fund after June 30, 1959, not to exceed $1,800,000,000 of which not to 73 Stat. 249 exceed $700,000,000 may be advanced prior to July 1, I960, and not to exceed an additional $1,100,000,000 may be advanced prior to July 1, 1961.” (c) In section 204(b), which relates to fiscal provisions, strike out “(a)” in the second sentence. (d) Amend section 205, which relates to management, powers, and authorities, as follows: (1) In subsection (b), strike out “three” in the second sentence and substitute “four”. (2) In subsection (c), strike out the last sentence.