- Trust Fund“(a) The Government of the United States shall contribute annually for twenty years in the amounts set forth in section 216 into a trust fund (‘Trust Fund’) established in accordance with the Agreement Between the Government of the United States of America and the Government of the Federated States of Micronesia Implementing Section 215 and Section 216 of the Compact, as Amended Regarding a Trust Fund, done at Palikir on May 14, 2003 (‘2003 Trust Fund Agreement’).
“(b) The United States contribution into the Trust Fund described in subsection (a) of this section is conditioned on the Government of the Federated States of Micronesia contributing to the Trust Fund at least $30 million, prior to September 30, 2004. Any funds received by the Federated States of Micronesia under section 111(d) of Public Law 99–239 (January 14, 1986), or successor provisions, would be contributed to the Trust Fund as a Federated States of Micronesia contribution.
“(c) The terms regarding the investment and management of funds and use of the income of the Trust Fund shall be set forth in the 2003 Trust Fund Agreement and shall apply for the duration of that agreement. Through Fiscal Year 2023, funds derived from United States investment shall not be subject to Federal or state taxes in the United States or the Federated States of Micronesia. The 2003 Trust Fund Agreement shall also provide for annual reports to the Government of the United States and to the Government of the Federated States of Micronesia. The 2003 Trust Fund Agreement shall provide for appropriate distributions of Trust Fund proceeds to the Federated States of Micronesia and for appropriate remedies for the failure of the Federated States of Micronesia to use income of the Trust Fund for the annual grant purposes set forth in section 211. These remedies may 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 on the contributions of the Government of the United States.
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