Whoever, within the United States, purchases or sells the bonds, securities, or other
obligations of any foreign government or political subdivision thereof or any organization
or association acting for or on behalf of a foreign government or political subdivision
thereof, issued after April 13, 1934, or makes any loan to such foreign government,
political subdivision, organization or association, except a renewal or adjustment
of existing indebtedness, while such government, political subdivision, organization
or association, is in default in the payment of its obligations, or any part thereof,
to the United States, shall be fined under this title or imprisoned for not more than
five years, or both.
This section is applicable to individuals, partnerships, corporations, or associations
other than public corporations created by or pursuant to special authorizations of
Congress, or corporations in which the United States has or exercises a controlling
interest through stock ownership or otherwise. While any foreign government is a member both of the International Monetary Fund
and of the International Bank for Reconstruction and Development, this section shall
not apply to the sale or purchase of bonds, securities, or other obligations of such
government or any political subdivision thereof or of any organization or association
acting for or on behalf of such government or political subdivision, or to making
of any loan to such government, political subdivision, organization, or association.
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