Volume 45 · 400

Public Law 70–304

To authorize the settlement of the indebtedness of the Kingdom of the Serbs, Croats, and Slovenes.

Approved March 30, 1928

Statutory text

An Act

To authorize the settlement of the indebtedness of the Kingdom of the Serbs, Croats, and Slovenes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

That the settlement of the indebtedness of the Kingdom of the Serbs, Croats, and Slovenes 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 106, Sixty-ninth Congress, first session, is hereby approved in general terms as follows:

Sec. 2.

The amount of the indebtedness to be funded after allowing for certain cash payments made by the Kingdom of the Serbs, Croats, and Slovenes is $62,850,000, which has been computed as follows:

Computation.

Principal of obligations acquired for cash advanced under Liberty Bond Acts	$26,126, 574. 59
Accrued and unpaid interest at 4¼ per centum per annum to December 15, 1922	4, 073, 423.14
		$30,199, 997. 73
Principal of obligations acquired by Secretary of War for surplus war supplies sold on credit	24, 978, 020. 99
Accrued and unpaid interest at 4¼ per centum per annum to December 15, 1922	3, 358, 790. 45
		28, 336, 811. 44
		58, 536, 809.17
Accrued interest at 3 per centum per annum from December 15, 1922, to June 15, 1925		4, 390, 260. 69
		62, 927, 069. 86
Credits:
Payments on account of principal since December 15, 1922	66, 709.19
Interest thereon at 3 per centum to June 15, 1925	3, 248. 28
		69, 957. 47
Total net indebtedness as of June 15, 1925		62, 857,112. 39
To be paid in cash upon execution of agreement		7,112. 39
Total indebtedness to be funded into bonds		62, 850, 000. 00

Sec. 3.

The principal of the bonds shall be paid in annual installments on June 15 of each year up to and including June 15, 1987, on a fixed schedule subject to the right of the Kingdom of the Serbs, Croats, and Slovenes to postpone such payments falling due after June 15, 1937, for two years, such postponed payment to bear interest

Amount for first five years.

at the rate of 414 per centum per annum. The amount of the annual principal installments during the first five years shall be

Succeeding seven years.

$200,000. Commencing with the sixth year the annual principal installment shall increase $25,000 a year for the succeeding seven

Subsequent yearly increases.

years. Commencing with the thirteenth year the annual principal installment will be $400,000, the subsequent annual principal installments increasing until in the sixty-second year of the debt funding period the final principal installments shall be $2,406,000, the aggregate principal installments being equal to the total principal of the indebtedness to be funded into bonds.

Sec. 4.

The Kingdom of the Serbs, Croats, and Slovenes shall have the right to pay off additional amounts of principal of the bonds on June 15 and December 15 in any year.

Sec. 5.

The bonds to be issued shall bear no interest until June 15, 1937, and thereafter shall bear interest at the rate of one-eighth of 1 per centum per annum from June 15, 1937, to June 15, 1940; at the rate of one-half of 1 per centum per annum from June 15, 1940, to June 15, 1954; at the rate of 1 per centum per annum from June 15, 1954, to June 15, 1957; at the rate of 2 per centum per annum from June 15, 1957, to June 15, 1960, and at the rate of 3% per centum per annum after June 15, 1960, all payable semiannually on June 15 and December 15 of each year, until the principal thereof shall have been paid.

Sec. 6.

Any payment of interest or principal may be made at the option of the Kingdom of the Serbs, Croats, and Slovenes in any United States Government obligations issued after April 6, 1917, such obligations to be taken at par and accrued interest.

Approved, March 30, 1928.