- Trust Fund“(a) The Government of the United States shall contribute annually for twenty years in the amounts set forth in section 217 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 Republic of the Marshall Islands Implementing Section 216 and Section 217 of the Compact, as Amended, Regarding a Trust Fund, done at Majuro on April 30, 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 Republic of the Marshall Islands contributing to the Trust Fund at least $25 million, on the effective date of the 2003 Trust Fund Agreement or on October 1, 2003, whichever is later, $2.5 million prior to October 1, 2004, and $2.5 million prior to October 1, 2005. Any funds received by the Republic of the Marshall Islands under section 111(d) of PL 99-239 (January 14, 1986), or successor provisions, would be contributed to the Trust Fund as a Republic of the Marshall Islands’ contribution.
“(c) The terms regarding the investment and management of funds and use of the income of the Trust Fund shall be governed by the 2003 Trust Fund Agreement and shall apply for the duration of that agreement. Through FY 2023, funds derived from United States investment shall not be subject to federal or state taxes in the United States or any taxes in the Republic of the Marshall Islands. The 2003 Trust Fund Agreement shall also provide for annual reports to the Government of the United States and to the Government of the Republic of the Marshall Islands. The 2003 Trust Fund Agreement shall provide for appropriate distributions of trust fund proceeds to the Republic of the Marshall Islands and for appropriate remedies for the failure of the Republic of the Marshall Islands 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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