WHEREAS it has been determined heretofore that the acquisition of debt obligations of foreign obligors by commercial banks in making loans in the ordinary course of the commercial banking business has materially impaired the effectiveness of the tax imposed by section 4911 of the Internal Revenue Code of 1954, as added by the Interest Equalization Tax Act, because such acquisitions have replaced acquisitions by United States persons, other than commercial banks, of debt obligations of foreign obligors which are subject to the tax imposed by section 4911; and WHEREAS such determination formed the basis for the issuance of Executive Order No. 11198, dated February 10, 1965, relating to the imposition of the interest equalization tax on the acquisition of such debt obligations by commercial banks; and WHEREAS it is now appropriate that Executive Order No. 11198 be modified: Now, THEREFORE, by virtue of the authority vested in me by section 4931 (a) of the Internal Revenue Code of 1954, as amended (26 U.S.C. 4931 (a)), by section 3 (e) (2) of the Interest Equalization Tax Extension Act of 1965 (Public Law 89-243; 79 Stat. 955), by section 301 of title 3 of the United States Code, and as President of the United States, it is ordered that Executive Order No. 11198 be, and it is hereby, modified to read as follows: SECTION 1. The provisions of section 4931 of the Internal Revenue Code of 1954, as amended, shall apply to acquisitions by commercial banks of debt obligations of foreign obligors to the extent set forth in sections 2 and 3. SEC. 2. (a) The exclusions provided in section 4914 (j) (1) (A) (ii) and section 4915 (c) (2) (A) from the tax imposed by section 4911 shall continue to apply to any acquisition by a commercial bank of a debt obligation of a foreign obligor; and (b) The exclusion provided in section 4914(b) (2) (A) from the tax imposed by section 4911 shall apply only to an acquisition of such debt obligation which is made by a commercial bank at any of its branches located outside the United States. SEC. 3. The amendments of section 4931 contained in section 3(e) (1) of the Interest Equalization Tax Extension Act of 1965 (Public Law 89-243; 79 Stat. 954) shall be applicable with respect to acquisitions of debt obligations of foreign obligors made after the date on which this order is issued. SEC. 4. The Secretary of the Treasury or his delegate is authorized to prescribe from time to time such regulations, rulings, directions, and instructions, and to require such reports of information, as he shall deem necessary to carry out the purposes of this order. SEC. 5. This order shall be effective with respect to acquisitions of debt obligations of foreign obligors made during the period beginning on the day after the date on which this order is issued and ending on the date set forth in section 4911 (d). LYNDON B. JOHNSON The White House February 20, 1967
Executive Order 11328 🏛️✅ Zone 1: Maximum Authority Constitutional Neutral (+0.02)
📜 Art. I §8: Delegated Tariff & Commerce Execution
Executive Order 11328—Modifying Executive Order No. 11198, Relating to the Interest Equalization Tax on Certain Commercial Bank Loans
Executive Brief • At a Glance
⏱️ 2 min read (497 words) •
● In Effect
🎯 Primary Mandate
Executive Order No. 11198 be, and it is hereby, modified to read as follows: SECTION 1.
⚖️ Constitutional Footing
🏛️✅ Zone 1: Maximum Authority
Express or Implied Congressional Authorization
📜 Art. I §8: Delegated Tariff & Commerce Execution
🏛️ Scope & Affected Sectors
Private Citizens & Property Owners Foreign Nations & International Entities Financial Institutions & Monetary Authorities
Plain-English Translation & Framers' Constitutional Analysis
Early Statesman synthesis distilling legal jargon into practical meaning, statutory anchors, and structural constitutional impacts.
Signed by President Lyndon B. Johnson on February 20, 1967, this order concerns Modifying Executive Order No. 11198, Relating to the Interest Equalization Tax on Certain Commercial Bank Loans. Executive Order No. 11198 be, and it is hereby, modified to read as follows: SECTION 1. The provisions of section 4931 of the Internal Revenue Code of 1954, as amended, shall apply to acquisitions by commercial banks of debt obligations of foreign obligors to the extent set forth in sections 2 and 3. SEC. 2.
Constitutional Assessment: This action represents an orderly exercise of Article II administrative discretion, managing the internal machinery and personnel of the executive branch without abridging the ancient liberties of the people.
Key Directives & Operative Actions
▪
Executive Order No. 11198 be, and it is hereby, modified to read as follows: SECTION 1.
▪
The provisions of section 4931 of the Internal Revenue Code of 1954, as amended, shall apply to acquisitions by commercial banks of debt obligations of foreign obligors to the extent set forth in sections 2 and 3.
▪
The exclusions provided in section 4914 (j) (1) (A) (ii) and section 4915 (c) (2) (A) from the tax imposed by section 4911 shall continue to apply to any acquisition by a commercial bank of a debt obligation of a foreign obligor; and (b) The exclusion provided in section 4914(b) (2) (A) from the tax imposed by section 4911 shall apply only to an acquisition of such debt obligation which is made by a commercial bank at any of its branches located outside the United States.
▪
The amendments of section 4931 contained in section 3(e) (1) of the Interest Equalization Tax Extension Act of 1965 (Public Law 89-243; 79 Stat. 954) shall be applicable with respect to acquisitions of debt obligations of foreign obligors made after the date on which this order is issued.
Constitutional & Societal Entities Impacted
🏛️ Private Citizens & Property Owners
🏛️ Foreign Nations & International Entities
🏛️ Financial Institutions & Monetary Authorities
Policy Areas & Topics
🏛️
The Framers' Constitutional Council
1787 PrismEvaluating this order against the constitutional debates of 1787 and the limits of Article II executive power.
🏛️✅ Zone 1 (Maximum Authority)
§
"When the President acts pursuant to an express or implied authorization of Congress, his authority is at its maximum, for it includes all that he possesses in his own right plus all that Congress can delegate."
— Justice Robert H. Jackson, Youngstown Sheet & Tube Co. v. Sawyer (1952) Express or Implied Congressional Authorization
JM
James Madison
Separation of Powers & Legislative Primacy
"The constitutional magistracy was designed not to invent policy, but to be the faithful instrument of the laws passed by the people's representatives." — Speech in the First Congress (1789)
Madison would approve the structural posture of this order. The President acts strictly in subordination to statutory authority granted under Article II, Section 3 ("take Care that the Laws be faithfully executed"). The checks and balances hold firm because the policy origin remains with the legislature.
Madisonian Stance: Concurring (Statutory)
AH
Alexander Hamilton
The Energetic Executive & Unified Command
"The direction of war implies the direction of the common strength; and the power of directing and employing the common strength must be under the direction of the single hand of the Executive." — Federalist No. 74 (1788)
Hamilton would forcefully champion executive discretion here. For foreign entanglements, commerce defense, and national security, deliberative assemblies are too slow and faction-ridden. A unified, energetic Executive exercising swift command is precisely what the Philadelphia Convention intended for national preservation.
Hamiltonian Stance: Supportive of Execution
GM
George Mason
Bill of Rights, Due Process & 10th Amendment
"The president will be surrounded by flatterers and sycophants... and the great powers of the executive will gradually absorb the liberties of the people." — Cato IV (Anti-Federalist, 1787)
The Anti-Federalist prism advises continuous democratic vigilance. Even routine administrative directives aggregate centralized federal power away from town halls and state assemblies toward a distant executive apparatus.
Anti-Federalist Stance: Eternal Vigilance Required
📐
Five Measurable "Constitutional Friction" Dimensions
An objective audit measuring potential separation-of-powers tension against the United States Constitution and established Supreme Court doctrine.
⚖️ Discretionary Twilight Zone
35 / 100 friction index
Dimension 1 • Art. I, §1 & §8
Moderate Friction
Legislative Encroachment & Purse
Administers commerce or fiscal programs requiring ongoing statutory delegation and legislative oversight.
Benchmark: Power of the purse, taxes/tariffs, and rule of law reserved to Congress.
Dimension 2 • Art. II, §1 & §3
Low Friction
Executive Scope & Faithfulness
Exercises standard supervisory executive authority to faithfully execute existing statutes.
Benchmark: Faithfully execute laws enacted by Congress vs. unilateral decree.
Dimension 3 • 10th Amendment
Moderate Friction
Federalism & State Sovereignty
Engages state and local partners in cooperative federalism programs.
Benchmark: Police powers and un-delegated responsibilities reserved to the States.
Dimension 4 • 5th & 14th Amendments
Moderate Friction
Due Process & Individual Rights
Applies regulatory or compliance standards to private contractors or commercial entities.
Benchmark: Protection of private property, contracts, liberty, and procedural justice.
Dimension 5 • Separation of Powers
Low Friction
Youngstown Jacksonian Tier
The President operates strictly as the constitutional Chief Executive, carrying out policy established by Congress with strong statutory backing.
Benchmark: Express or Implied Congressional Authorization
⚖️
Audit Synthesis
This order operates within Justice Jackson’s Zone of Twilight, resting upon concurrent presidential authority or congressional silence.
Weighted composite: Art. I (25%), Art. II (25%), Federalism (15%), Due Process (15%), Youngstown (20%).
ℹ️
How to read these dimensions: Executive power expands whenever an administration acts without explicit statutory authorization from Congress (Article I), touches upon police powers historically reserved to the states (Tenth Amendment), or limits private rights and property without judicial process. A low friction score indicates strict concordance with enacted law; a high friction score highlights orders testing the limits of presidential discretion.
Total Words
497
2,911 characters
Estimated Read Time
2 min
@ 200 words / min
Flesch-Kincaid
18.3
Post-Graduate Legal
Text size:
Related Executive Orders
1 order cited directly in this text, plus related actions from this administration.
EO 11198 Feb 10, 1965
🏛️✅ Zone 1 (Maximum Authority) Constitutional Neutral
Executive Order 11198—Imposition of Interest Equalization Tax on Certain Commercial Bank Loans
📜 Art. I §8: Delegated Tariff & Commerce Execution
Section 1. The provisions of section 4931 shall apply to acquisitions by commercial banks of debt obligations of foreign obligors to the extent set forth herein. Sec. 2.
Lyndon B. Johnson Post-Graduate Legal • 3m
EO 11327 Feb 15, 1967
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11327—Assigning Authority to Order Certain Persons in the Ready Reserve to Active Duty
📜 Art. II §2: Commander-in-Chief Supervisory Authority
The Secretary of Defense, and, when designated by him for this purpose, any of the Secretaries of the military departments of the Department of Defense, are hereby authorized and empowered to exercise the authority vested in the President until June 30, 1968, by Title I of the…
Lyndon B. Johnson Post-Graduate Legal • 2m
EO 11326 Feb 13, 1967
🏛️✅ Zone 1 (Maximum Authority) Fidelity (+0.33)
Executive Order 11326—Providing for the Regulation of Air Transportation in the Ryukyu Islands
📜 Art. II §2: Commander-in-Chief Supervisory Authority
As used in this order, (a) "Ryukyu Islands" means the territory, including territorial waters and overlying airspace, to which Executive Order No. 10713 of June 5, 1957, as amended, applies.
Lyndon B. Johnson High School • 2m
EO 11329 Mar 2, 1967
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11329—Creating a Board of Inquiry to Report on a Labor Dispute Affecting the Shipbuilding and Repair Industries of the United States
📜 Art. II §1: Executive Discretion & Internal Operations
I hereby create a Board of Inquiry, consisting of Mr. J. Keith Mann, Chairman, Mr. George E. Reedy and Mr. Paul D. Hanlon, whom I appoint to inquire into the issues involved in this dispute. The Board shall have powers and duties as set forth in Title II of such Act.
Lyndon B. Johnson College Level • 2m
EO 11330 Mar 5, 1967
🏛️✅ Zone 1 (Maximum Authority) Fidelity (+0.29)
Executive Order 11330—Providing for the Coordination of Youth Opportunity by Programs
📜 Art. II §2: Commander-in-Chief Supervisory Authority
Membership and chairmanship. (a) There is hereby established the President's Council on Youth Opportunity (hereinafter referred to as the "Council").
Lyndon B. Johnson Post-Graduate Legal • 6m
EO 11331 Mar 6, 1967
⚖️✨ Zone 2 (Zone of Twilight) Constitutional Neutral
Executive Order 11331—Establishment of the Pacific Northwest River Basins Commission
📜 Art. II §2: Commander-in-Chief Supervisory Authority
Pacific Northwest River Basins Commission. It is hereby declared that the Pacific Northwest River Basins Commission is established under the provisions of Title II of the Act. SEC. 2. Jurisdiction of the Commission.
Lyndon B. Johnson Post-Graduate Legal • 4m
📜
Scholarly & Legal Citations
Exec. Order No. 11,328 (Feb. 20, 1967), https://executiveordersarchive.org/orders/app-executive-order-11328-modifying-executive-order-no-11198-relating-the-interest.
