§ 635. — Powers and functions of Bank.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC635]
TITLE 12--BANKS AND BANKING
CHAPTER 6A--EXPORT-IMPORT BANK OF THE UNITED STATES
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 635. Powers and functions of Bank
(a) General banking business; use of mails; publication of documents,
reports, contracts, etc.; use of assets and allocated or
borrowed money; payment of dividends; medium-term financing;
dissemination of information; enhancement of medium-term program
(1) There is created a corporation with the name Export-Import Bank
of the United States, which shall be an agency of the United States of
America. The objects and purposes of the Bank shall be to aid in
financing and to facilitate exports of goods and services, imports, and
the exchange of commodities and services between the United States or
any of its territories or insular possessions and any foreign country or
the agencies or nationals of any such country, and in so doing to
contribute to the employment of United States workers. The Bank's
objective in authorizing loans, guarantees, insurance, and credits shall
be to contribute to maintaining or increasing employment of United
States workers. In connection with and in furtherance of its objects and
purposes, the bank is authorized and empowered to do a general banking
business except that of circulation; to receive deposits; to purchase,
discount, rediscount, sell, and negotiate, with or without its
endorsement or guaranty, and to guarantee notes, drafts, checks, bills
of exchange, acceptances, including bankers' acceptances, cable
transfers, and other evidences of indebtedness; to guarantee, insure,
coinsure, and reinsure against political and credit risks of loss; to
purchase, sell, and guarantee securities but not to purchase with its
funds any stock in any other corporation except that it may acquire any
such stock through the enforcement of any lien or pledge or otherwise to
satisfy a previously contracted indebtedness to it; to accept bills and
drafts drawn upon it; to issue letters of credit; to purchase and sell
coin, bullion, and exchange; to borrow and to lend money; to perform any
act herein authorized in participation with any other person, including
any individual, partnership, corporation, or association; to adopt,
alter, and use a corporate seal, which shall be judicially noticed; to
sue and to be sued, to complain and to defend in any court of competent
jurisdiction; to represent itself or to contract for representation in
all legal and arbitral proceedings outside the United States; and the
enumeration of the foregoing powers shall not be deemed to exclude other
powers necessary to the achievement of the objects and purposes of the
bank. The bank shall be entitled to the use of the United States mails
in the same manner and upon the same conditions as the executive
departments of the Government. The Bank is authorized to publish or
arrange for the publication of any documents, reports, contracts, or
other material necessary in connection with or in furtherance of its
objects and purposes without regard to the provisions of section 501 of
title 44 whenever the Bank determines that publication in accordance
with the provisions of such section would not be practicable. Subject to
regulations which the Bank shall issue pursuant to section 553 of title
5, the Bank may impose and collect reasonable fees to cover the costs of
conferences and seminars sponsored by, and publications provided by, the
Bank, and may accept reimbursement for travel and subsistence expenses
incurred by a director, officer, or employee of the Bank, in accordance
with subchapter I of chapter 57 of title 5. Amounts received under the
preceding sentence shall be credited to the fund which initially paid
for such activities and shall be offset against the expenses of the Bank
for such activities. The bank is authorized to use all of its assets and
all moneys which have been or may hereafter be allocated to or borrowed
by it in the exercise of its functions. Net earnings of the bank after
reasonable provision for possible losses shall be used for payment of
dividends on capital stock. Any such dividends shall be deposited into
the Treasury as miscellaneous receipts.
(2) In order for the Bank to be competitive in all of its financing
programs with countries whose exports compete with United States
exports, the Bank shall establish a program that--
(A) provides medium-term financing where necessary to be fully
competitive--
(i) at rates of interest to the customer which are equal to
rates established in international agreements; and
(ii) in amounts up to 85 percent of the total cost of the
exports involved; and
(B) enables the Bank to cooperate fully with the Secretary of
Commerce and the Administrator of the Small Business Administration
to develop a program for purposes of disseminating information
(using existing private institutions) to small business concerns
regarding the medium-term financing provided under this paragraph.
(3) Enhancement of Medium-Term Program.--To enhance the medium-term
financing program established pursuant to paragraph (2), the Bank shall
establish measures to--
(A) improve the competitiveness of the Bank's medium-term
financing and ensure that its medium-term financing is fully
competitive with that of other major official export credit
agencies;
(B) ease the administrative burdens and procedural and
documentary requirements imposed on the users of medium-term
financing;
(C) attract the widest possible participation of private
financial institutions and other sources of private capital in the
medium-term financing of United States exports; and
(D) render the Bank's medium-term financing as supportive of
United States exports as is its Direct Loan Program.
(b) Guarantees, insurance, and extension of credit functions;
competitive with Government-supported rates and terms and
conditions of foreign exporting countries; survey and report;
interest rates; private capital encouragement; national interest
determinations; delivery of United States services in
international commerce; small business concern encouragement;
coverage of losses by Foreign Credit Insurance Association;
loans to Union of Soviet Socialist Republics for fossil fuel
research, etc.; nuclear safeguards violations resulting in
limitations on exports and credit; defense article credit sales
to less developed countries; amount outstanding; supplementation
of Commodity Credit Corporation programs; limitations on
authority of Bank; prohibition relating to Angola
(1)(A) It is the policy of the United States to foster expansion of
exports of manufactured goods, agricultural products, and other goods
and services, thereby contributing to the promotion and maintenance of
high levels of employment and real income, a commitment to reinvestment
and job creation, and the increased development of the productive
resources of the United States. To meet this objective in all its
programs, the Export-Import Bank is directed, in the exercise of its
functions, to provide guarantees, insurance, and extensions of credit at
rates and on terms and other conditions which are fully competitive with
the Government-supported rates and terms and other conditions available
for the financing of exports of goods and services from the principal
countries whose exporters compete with United States exporters. The Bank
shall, in cooperation with the export financing instrumentalities of
other governments, seek to minimize competition in government-supported
export financing and shall, in cooperation with other appropriate United
States Government agencies, seek to reach international agreements to
reduce government subsidized export financing. The Bank shall, not later
than June 30 of each year, report to the appropriate committees of
Congress its actions in complying with these directives. In this report
the Bank shall include a survey of all other major export-financing
facilities available from other governments and government-related
agencies through which foreign exporters compete with the United States
exporters (including through use of market windows) and indicate in
specific terms the ways in which the Bank's rates, terms, and other
conditions compare with those offered from such other governments
directly or indirectly. With respect to the preceding sentence, the Bank
shall use all available information to estimate the annual amount of
export financing available from each government and government-related
agency. Further, the Bank shall at the same time survey a representative
number of United States exporters and United States commercial lending
institutions which provide export credit to determine their experience
in meeting financial competition from other countries whose exporters
compete with United States exporters. The results of this survey shall
be included as part of the annual report required by this subparagraph.
The Bank shall include in the annual report a description of its role in
the implementation of the strategic plan prepared by the Trade Promotion
Coordinating Committee in accordance with section 4727 of title 15. The
annual report required under this subparagraph shall include the report
required under section 635i-3(g) of this title. The Bank shall include
in the annual report a description of all Bank transactions which shall
be classified according to their principal purpose, such as to correct a
market failure or to provide matching support. The Bank shall include in
the annual report a description of the efforts undertaken under
subparagraph (K).
(B) It is further the policy of the United States that loans made by
the Bank in all its programs shall bear interest at rates determined by
the Board of Directors, consistent with the Bank's mandate to support
United States exports at rates and on terms and conditions which are
fully competitive with exports of other countries, and consistent with
international agreements. For the purpose of the preceding sentence,
rates and terms and conditions need not be identical in all respects to
those offered by foreign countries, but should be established so that
the effect of such rates, terms, and conditions for all the Bank's
programs, including those for small businesses and for medium-term
financing, will be to neutralize the effect of such foreign credit on
international sales competition. The Bank shall consider its average
cost of money as one factor in its determination of interest rates,
where such consideration does not impair the Bank's primary function of
expanding United States exports through fully competitive financing. The
Bank may not impose a credit application fee unless (i) the fee is
competitive with the average fee charged by the Bank's primary foreign
competitors, and (ii) the borrower or the exporter is given the option
of paying the fee at the outset of the loan or over the life of the loan
and the present value of the fee determined under either such option is
the same amount. It is also the policy of the United States that the
Bank in the exercise of its functions should supplement and encourage,
and not compete with, private capital; that the Bank, in determining
whether to provide support for a transaction under the loan, guarantee,
or insurance program, or any combination thereof, shall consider the
need to involve private capital in support of United States exports as
well as the cost of the transaction as calculated in accordance with the
requirements of the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et
seq.]; that the Bank shall accord equal opportunity to export agents and
managers, independent export firms, export trading companies, and small
commercial banks in the formulation and implementation of its programs;
that the Bank should give emphasis to assisting new and small business
entrants in the agricultural export market, and shall, in cooperation
with other relevant Government agencies, including the Commodity Credit
Corporation, develop a program of education to increase awareness of
export opportunities among small agribusinesses and cooperatives; that
loans, so far as possible consistent with the carrying out of the
purposes of subsection (a) of this section, shall generally be for
specific purposes, and, in the judgment of the Board of Directors, offer
reasonable assurance of repayment; and that in authorizing any loan or
guarantee, the Board of Directors shall take into account any serious
adverse effect of such loan or guarantee on the competitive position of
United States industry, the availability of materials which are in short
supply in the United States, and employment in the United States, and
shall give particular emphasis to the objective of strengthening the
competitive position of United States exporters and thereby of expanding
total United States exports. Only in cases where the President, after
consultation with the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban Affairs
of the Senate, determines that such action would be in the national
interest where such action would clearly and importantly advance United
States policy in such areas as international terrorism (including, when
relevant, a foreign nation's lack of cooperation in efforts to eradicate
terrorism), nuclear proliferation, the enforcement of the Foreign
Corrupt Practices Act of 1977, the Arms Export Control Act [22 U.S.C.
2751 et seq.], the International Emergency Economic Powers Act [50
U.S.C. 1701 et seq.], or the Export Administration Act of 1979 [50 App.
U.S.C. 2401 et seq.], environmental protection and human rights (such as
are provided in the Universal Declaration of Human Rights adopted by the
United Nations General Assembly on December 10, 1948) (including child
labor), should the Export-Import Bank deny applications for credit for
nonfinancial or noncommercial considerations. Each such determination
shall be delivered in writing to the President of the Bank, shall state
that the determination is made pursuant to this section, and shall
specify the applications or categories of applications for credit which
should be denied by the Bank in furtherance of the national interest.
(C) Consistent with the policy of section 3261 of title 22 and
section 2151q \1\ of title 22, the Board of Directors shall name an
officer of the Bank whose duties shall include advising the President of
the Bank on ways of promoting the export of goods and services to be
used in the development, production, and distribution of nonnuclear
renewable energy resources, disseminating information concerning export
opportunities and the availability of Bank support for such activities,
and acting as a liaison between the Bank and the Department of Commerce
and other appropriate departments and agencies.
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(D) It is further the policy of the United States to foster the
delivery of United States services in international commerce. In
exercising its powers and functions, the Bank shall give full and equal
consideration to making loans and providing guarantees for the export of
services (independently, or in conjunction with the export of
manufactured goods, equipment, hardware or other capital goods)
consistent with the Bank's policy to neutralize foreign subsidized
credit competition and to supplement the private capital market.
(E)(i)(I) It is further the policy of the United States to encourage
the participation of small business in international commerce.
(II) In exercising its authority, the Bank shall develop a program
which gives fair consideration to making loans and providing guarantees
for the export of goods and services by small businesses.
(ii) It is further the policy of the United States that the Bank
shall give due recognition to the policy stated in section 631(a) of
title 15 that ``the Government should aid, counsel, assist, and protect,
insofar as is possible, the interests of small business concerns in
order to preserve free competitive enterprise''.
(iii) In furtherance of this policy, the Board of Directors shall
designate an officer of the Bank who--
(I) shall be responsible to the President of the Bank for all
matters concerning or affecting small business concerns; and
(II) among other duties, shall be responsible for advising small
business concerns of the opportunities for small business concerns
in the functions of the Bank, with particular emphasis on conducting
outreach and increasing loans to socially and economically
disadvantaged small business concerns (as defined in section
637(a)(4) of title 15), small business concerns (as defined in
section 632(a) of title 15) owned by women, and small business
concerns (as defined in section 632(a) of title 15) employing fewer
than 100 employees, and for maintaining liaison with the Small
Business Administration and other departments and agencies in
matters affecting small business concerns.
(iv) The Director appointed to represent the interests of small
business under section 635a(c) of this title shall ensure that the Bank
carries out its responsibilities under clauses (ii) and (iii) of this
subparagraph and that the Bank's financial and other resources are, to
the maximum extent possible, appropriately used for small business
needs.
(v) To assure that the purposes of clauses (i) and (ii) of this
subparagraph are carried out, the Bank shall make available, from the
aggregate loan, guarantee, and insurance authority available to it, an
amount to finance exports directly by small business concerns (as
defined under section 632 of title 15) which shall be not less than 20
percent of such authority for each fiscal year.
(vi) The Bank shall utilize the amount set aside pursuant to clause
(v) of this subparagraph to offer financing for small business exports
on terms which are fully competitive with regard to interest rates and
with regard to the portion of financing which may be provided,
guaranteed, or insured. Financing under this clause (vi) shall be
available without regard to whether financing for the particular
transaction was disapproved by any other Federal agency.
(vii)(I) The Bank shall utilize a part of the amount set aside
pursuant to clause (v) to provide lines of credit or guarantees to
consortia of small or medium size banks, export trading companies, State
export finance agencies, export financing cooperatives, small business
investment companies (as defined in section 662 of title 15), or other
financing institutions or entities in order to finance small business
exports.
(II) Financing under this clause (vii) shall be made available only
where the consortia or the participating institutions agree to undertake
processing, servicing, and credit evaluation functions in connection
with such financing.
(III) To the maximum extent practicable, the Bank shall delegate to
the consortia the authority to approve financing under this clause
(vii).
(IV) In the administration of the program under this clause (vii),
the Bank shall provide appropriate technical assistance to participating
consortia and may require such consortia periodically to furnish
information to the Bank regarding the number and amount of loans made
and the creditworthiness of the borrowers.
(viii) In order to assure that the policy stated in clause (i) is
carried out, the Bank shall promote small business exports and its small
business export financing programs in cooperation with the Secretary of
Commerce, the Office of International Trade of the Small Business
Administration, and the private sector, particularly small business
organizations, State agencies, chambers of commerce, banking
organizations, export management companies, export trading companies,
and private industry.
(ix) The Bank shall provide, through creditworthy trade
associations, export trading companies, State export finance companies,
export finance cooperatives, and other multiple-exporter organizations,
medium-term risk protection coverage for the members and clients of such
organizations. Such coverage shall be made available to each such
organization under a single risk protection policy covering its members
or clients. Nothing in this provision shall be interpreted as limiting
the Bank's authority to deny support for specific transactions or to
disapprove a request by such an organization to participate in such
coverage.
(x) The Bank shall implement technology improvements that are
designed to improve small business outreach, including allowing
customers to use the Internet to apply for the Bank's small business
programs.
(F) Consistent with international agreements, the Bank shall urge
the Foreign Credit Insurance Association to provide coverage against 100
per centum of any loss with respect to exports having a value of less
than $100,000.
(G) Participation in or access to long-, medium-, and short-term
financing, guarantees, and insurance provided by the Bank shall not be
denied solely because the entity seeking participation or access is not
a bank or is not a United States person.
(H)(i) It is further the policy of the United States to foster the
development of democratic institutions and market economies in countries
seeking such development, and to assist the export of high technology
items to such countries.
(ii) In exercising its authority, the Bank shall develop a program
for providing guarantees and insurance with respect to the export of
high technology items to countries making the transition to market based
economies, including eligible East European countries (within the
meaning of section 5402 of title 22).
(iii) As part of the ongoing marketing and outreach efforts of the
Bank, the Bank shall, to the maximum extent practicable, inform high
technology companies, particularly small business concerns (as such term
is defined in section 632 of title 15), about the programs of the Bank
for United States companies interested in exporting high technology
goods to countries making the transition to market based economies,
including any eligible East European country (within the meaning of
section 5402 of title 22).
(iv) In carrying out clause (iii), the Bank shall--
(I) work with other agencies involved in export promotion and
finance; and
(II) invite State and local governments, trade centers,
commercial banks, and other appropriate public and private
organizations to serve as intermediaries for the outreach efforts.
(I) The President of the Bank shall undertake efforts to enhance the
Bank's capacity to provide information about the Bank's programs to
small and rural companies which have not previously participated in the
Bank's programs. Not later than 1 year after November 26, 1997, the
President of the Bank shall submit to Congress a report on the
activities undertaken pursuant to this subparagraph.
(J) The Bank shall implement an electronic system designed to track
all pending transactions of the Bank.
(K) The Bank shall promote the export of goods and services related
to renewable energy sources.
(L) The Bank shall require an applicant for assistance from the Bank
to disclose whether the applicant has been found by a court of the
United States to have violated the Foreign Corrupt Practices Act of
1977, the Arms Export Control Act [22 U.S.C. 2751 et seq.], the
International Emergency Economic Powers Act [50 U.S.C. 1701 et seq.], or
the Export Administration Act of 1979 [50 App. U.S.C. 2401 et seq.]
within the preceding 12 months, and shall maintain, in cooperation with
the Department of Justice, for not less than 3 years a record of such
applicants so found to have violated any such Act.
(2) Prohibition on Aid to Marxist-Leninist Countries.--
(A) In general.--The Bank in the exercise of its functions shall
not guarantee, insure, extend credit, or participate in the
extension of credit--
(i) in connection with the purchase or lease of any product
by a Marxist-Leninist country, or agency or national thereof; or
(ii) in connection with the purchase or lease of any product
by any other foreign country, or agency or national thereof, if
the product to be purchased or leased by such other country,
agency, or national is, to the knowledge of the Bank,
principally for use in, or sale or lease to, a Marxist-Leninist
country.
(B) Marxist-Leninist country defined.--
(i) In general.--For purposes of this paragraph, the term
``Marxist-Leninist country'' means any country that maintains a
centrally planned economy based on the principles of Marxism-
Leninism, or is economically and militarily dependent on any
other such country.
(ii) Specific countries deemed to be marxist-leninist.--
Unless otherwise determined by the President in accordance with
subparagraph (C), the following countries are deemed to be
Marxist-Leninist countries for purposes of this paragraph:
(I) Cambodian People's Republic.
(II) Democratic People's Republic of Korea.
(III) Democratic Republic of Afghanistan.
(IV) Lao People's Democratic Republic.
(V) People's Republic of China.
(VI) Republic of Cuba.
(VII) Socialist Federal Republic of Yugoslavia.
(VIII) Socialist Republic of Vietnam.
(IX) Tibet.
(C) Presidential determination that a country has ceased to be
marxist-leninist.--If the President determines that any country on
the list contained in subparagraph (B)(ii) has ceased to be a
Marxist-Leninist country (within the definition of such term in
subparagraph (B)(i)), such country shall not be treated as a
Marxist-Leninist country for purposes of this paragraph after the
date of such determination, unless the President subsequently
determines that such country has again become a Marxist-Leninist
country.
(D) Presidential determination relating to financing in the
national interest.--
(i) In general.--Subparagraph (A) shall not apply to
guarantees, insurance, or extensions of credit by the Bank to a
country, agency, or national described in clause (i) or (ii) of
subparagraph (A) (in connection with transactions described in
such clauses) if the President determines that such guarantees,
insurance, or extensions of credit are in the national interest.
(ii) Separate determination for certain transactions.--The
President shall make a separate determination under clause (i)
for each transaction described in clause (i) or (ii) of
subparagraph (A) for which the Bank would extend a loan in an
amount equal to or greater than $50,000,000.
(iii) Report of clause (i) determinations to congress.--Any
determination by the President under clause (i) shall be
reported to the Congress not later than the earlier of--
(I) the end of the 30-day period beginning on the date
of such determination; or
(II) the date the Bank takes final action with respect
to the first transaction involving the country, agency, or
national for which such determination is made after January
4, 1975, unless a report of a determination with respect to
such country, agency, or national was made and reported
before January 4, 1975.
(iv) Report of clause (ii) determinations to congress.--Any
determination by the President under clause (ii) shall be
reported to the Congress not later than the earlier of--
(I) the end of the 30-day period beginning on the date
of such determination; or
(II) the date the Bank takes final action with respect
to the transaction for which such determination is made.
(3) Except as provided by the fourth sentence of this paragraph, no
loan or financial guarantee or general guarantee or insurance facility
or combination thereof (i) in an amount which equals or exceeds
$100,000,000, or (ii) for the export of technology, fuel, equipment,
materials, or goods or services to be used in the construction,
alteration, operation, or maintenance of nuclear power, enrichment,
reprocessing, research, or heavy water production facilities, shall be
finally approved by the Board of Directors of the Bank, unless in each
case the Bank has submitted to the Congress with respect to such loan,
financial guarantee, or combination thereof, a detailed statement
describing and explaining the transaction, at least 25 days of
continuous session of the Congress prior to the date of final approval.
For the purpose of the preceding sentence, continuity of a session of
the Congress shall be considered as broken only by an adjournment of the
Congress sine die, and the days on which either House is not in session
because of an adjournment of more than 3 days to a day certain shall be
excluded in the computation of the 25 day period referred to in such
sentence. Such statement shall contain--
(A) in the case of a loan or financial guarantee--
(i) a brief description of the purposes of the transaction;
(ii) the identity of the party or parties requesting the
loan or financial guarantee;
(iii) the nature of the goods or services to be exported and
the use for which the goods or services are to be exported; and
(iv) in the case of a general guarantee or insurance
facility--
(I) a description of the nature and purpose of the
facility;
(II) the total amount of guarantees or insurance; and
(III) the reasons for the facility and its methods of
operation; and
(B) a full explanation of the reasons for Bank financing of the
transaction, the amount of the loan to be provided by the Bank, the
approximate rate and repayment terms at which such loan will be made
available and the approximate amount of the financial guarantee.
If the Bank submits a statement to the Congress under this paragraph and
either House of Congress is in an adjournment for a period which
continues for at least ten days after the date of submission of the
statement, then any such loan or guarantee or combination thereof may,
subject to the second sentence of this paragraph, be finally approved by
the Board of Directors upon the termination of the twenty-five-day
period referred to in the first sentence of this paragraph or upon the
termination of a thirty-five-calendar-day period (which commences upon
the date of submission of the statement), whichever occurs sooner.
(4)(A) If the Secretary of State determines that--
(i) any country that has agreed to International Atomic Energy
Agency nuclear safeguards materially violates, abrogates, or
terminates, after October 26, 1977, such safeguards;
(ii) any country that has entered into an agreement for
cooperation concerning the civil use of nuclear energy with the
United States materially violates, abrogates, or terminates, after
October 26, 1977, any guarantee or other undertaking to the United
States made in such agreement;
(iii) any country that is not a nuclear-weapon state detonates,
after October 26, 1977, a nuclear explosive device;
(iv) any country willfully aids or abets, after June 29, 1994,
any non-nuclear-weapon state to acquire any such nuclear explosive
device or to acquire unsafeguarded special nuclear material; or
(v) any person knowingly aids or abets, after September 23,
1996, any non-nuclear-weapon state to acquire any such nuclear
explosive device or to acquire unsafeguarded special nuclear
material,
then the Secretary of State shall submit a report to the appropriate
committees of the Congress and to the Board of Directors of the Bank
stating such determination and identifying each country or person the
Secretary determines has so acted.
(B)(i) If the Secretary of State makes a determination under
subparagraph (A)(v) with respect to a foreign person, the Congress urges
the Secretary to initiate consultations immediately with the government
with primary jurisdiction over that person with respect to the
imposition of the prohibition contained in subparagraph (C).
(ii) In order that consultations with that government may be
pursued, the Board of Directors of the Bank shall delay imposition of
the prohibition contained in subparagraph (C) for up to 90 days if the
Secretary of State requests the Board to make such delay. Following
these consultations, the prohibition contained in subparagraph (C) shall
apply immediately unless the Secretary determines and certifies to the
Congress that that government has taken specific and effective actions,
including appropriate penalties, to terminate the involvement of the
foreign person in the activities described in subparagraph (A)(v). The
Board of Directors of the Bank shall delay the imposition of the
prohibition contained in subparagraph (C) for up to an additional 90
days if the Secretary requests the Board to make such additional delay
and if the Secretary determines and certifies to the Congress that that
government is in the process of taking the actions described in the
preceding sentence.
(iii) Not later than 90 days after making a determination under
subparagraph (A)(v), the Secretary of State shall submit to the
appropriate committees of the Congress a report on the status of
consultations with the appropriate government under this subparagraph,
and the basis for any determination under clause (ii) that such
government has taken specific corrective actions.
(C) The Board of Directors of the Bank shall not give approval to
guarantee, insure, or extend credit, or participate in the extension of
credit in support of United States exports to any country, or to or by
any person, identified in the report described in subparagraph (A).
(D) The prohibition in subparagraph (C) shall not apply to approvals
to guarantee, insure, or extend credit, or participate in the extension
of credit in support of United States exports to a country with respect
to which a determination is made under clause (i), (ii), (iii), or (iv)
of subparagraph (A) regarding any specific event described in such
clause if the President determines and certifies in writing to the
Congress not less than 45 days prior to the date of the first approval
following the determination that it is in the national interest for the
Bank to give such approvals.
(E) The prohibition in subparagraph (C) shall not apply to approvals
to guarantee, insure, or extend credit, or participate in the extension
of credit in support of United States exports to or by a person with
respect to whom a determination is made under clause (v) of subparagraph
(A) regarding any specific event described in such clause if--
(i) the Secretary of State determines and certifies to the
Congress that the appropriate government has taken the corrective
actions described in subparagraph (B)(ii); or
(ii) the President determines and certifies in writing to the
Congress not less than 45 days prior to the date of the first
approval following the determination that--
(I) reliable information indicates that--
(aa) such person has ceased to aid or abet any non-
nuclear-weapon state to acquire any nuclear explosive device
or to acquire unsafeguarded special nuclear material; and
(bb) steps have been taken to ensure that the activities
described in item (aa) will not resume; or
(II) the prohibition would have a serious adverse effect on
vital United States interests.
(F) For purposes of this paragraph:
(i) The term ``country'' has the meaning given to ``foreign
state'' in section 1603(a) of title 28.
(ii) The term ``knowingly'' is used within the meaning of the
term ``knowing'' in section 78dd-2(h)(3) of title 15.
(iii) The term ``person'' means a natural person as well as a
corporation, business association, partnership, society, trust, any
other nongovernmental entity, organization, or group, and any
governmental entity operating as a business enterprise, and any
successor of any such entity.
(iv) The term ``nuclear-weapon state'' has the meaning given the
term in Article IX(3) of the Treaty on the Non-Proliferation of
Nuclear Weapons, signed at Washington, London, and Moscow on July 1,
1968.
(v) The term ``non-nuclear-weapon state'' has the meaning given
the term in section 6305(5) of title 22.
(vi) The term ``nuclear explosive device'' has the meaning given
the term in section 6305(4) of title 22.
(vii) The term ``unsafeguarded special nuclear material'' has
the meaning given the term in section 6305(8) of title 22.
(5) The Bank shall not guarantee, insure, or extend credit, or
participate in the extension of credit in connection with (A) the
purchase of any product, technical data, or other information by a
national or agency of any nation which engages in armed conflict,
declared or otherwise, with the Armed Forces of the United States, (B)
the purchase by any nation (or national or agency thereof) of any
product, technical data, or other information which is to be used
principally by or in any such nation described in clause (A), or (C) the
purchase of any liquid metal fast breeder nuclear reactor or any nuclear
fuel reprocessing facility. The Bank shall not guarantee, insure, or
extend credit, or participate in the extension of credit in connection
with the purchase of any product, technical data, or other information
by a national or agency of any nation if the President determines that
any such transaction would be contrary to the national interest.
(6)(A) The Bank shall not guarantee, insure, or extend credit, or
participate in an extension of credit in connection with any credit sale
of defense articles and defense services to any country.
(B) Subparagraph (A) shall not apply to any sale of defense articles
or services if--
(i) the Bank is requested to provide a guarantee or insurance
for the sale;
(ii) the President determines that the defense articles or
services are being sold primarily for anti-narcotics purposes;
(iii) section 2291j(e) of title 22 does not apply with respect
to the purchasing country;
(iv) the President determines, in accordance with subparagraph
(C), that the sale is in the national interest of the United States;
and
(v) the Bank determines that, notwithstanding the provision of a
guarantee or insurance for the sale, not more than 5 percent of the
guarantee and insurance authority available to the Bank in any
fiscal year will be used by the Bank to support the sale of defense
articles or services.
(C) In determining whether a sale of defense articles or services
would be in the national interest of the United States, the President
shall take into account whether the sale would--
(i) be consistent with the anti-narcotics policy of the United
States;
(ii) involve the end use of a defense article or service in a
major illicit drug producing or major drug-transit country (as
defined in section 2291(e) of title 22); and
(iii) be made to a country with a democratic form of government.
(D)(i) The Board shall not give approval to guarantee or insure a
sale of defense articles or services unless--
(I) the President determines, in accordance with subparagraph
(C), that it is in the national interest of the United States for
the Bank to provide such guarantee or insurance;
(II) the President determines, after consultation with the
Assistant Secretary of State for Human Rights and Humanitarian
Affairs, that the purchasing country has complied with all
restrictions imposed by the United States on the end use of any
defense articles or services for which a guarantee or insurance was
provided under subparagraph (B), and has not used any such defense
articles or services to engage in a consistent pattern of gross
violations of internationally recognized human rights; and
(III) such determinations have been reported to the Speaker and
the Committee on Financial Services of the House of Representatives,
and to the Committee on Banking, Housing, and Urban Affairs and the
Committee on Foreign Relations of the Senate, not less than 25 days
of continuous session of the Congress before the date of such
approval.
(ii) For purposes of clause (i), continuity of a session of the
Congress shall be considered as broken only by an adjournment of the
Congress sine die, and the days on which either House is not in session
because of an adjournment of more than 3 days to a day certain shall be
excluded in the computation of the 25-day period referred to in such
clause.
(E) The provision of a guarantee or insurance under subparagraph (B)
shall be deemed to be the provision of security assistance for purposes
of section 2304 of title 22 (relating to governments which engage in a
consistent pattern of gross violations of internationally recognized
human rights).
(F) To the extent that defense articles or services for which a
guarantee or insurance is provided under subparagraph (B) are used for a
purpose other than anti-narcotics purposes, they may be used only for
those purposes for which defense articles and defense services sold
under the Arms Export Control Act [22 U.S.C. 2751 et seq.] (relating to
the foreign military sales program) may be used under section 4 of such
Act [22 U.S.C. 2754].
(G) As used in subparagraphs (B), (C), (D), and (F), the term
``defense articles or services'' means articles, services, and related
technical data that are designated as defense articles and defense
services pursuant to sections 38 and 47(7) of the Arms Export Control
Act [22 U.S.C. 2778, 2794(7)] and listed on the United States Munitions
List (part 121 of title 22 of the Code of Federal Regulations).
(H) Once in each calendar quarter, the Bank shall submit a report to
the Committee on Banking, Housing, and Urban Affairs of the Senate, and
the Committee on Financial Services of the House of Representatives on
all instances in which the Bank, during the reporting quarter,
guaranteed, insured, or extended credit or participated in an extension
of credit in connection with any credit sale of an article, service, or
related technical data described in subparagraph (G) that the Bank
determined would not be put to a military use or described in
subparagraph (I)(i). Such report shall include a description of each of
the transactions and the justification for the Bank's actions.
(I)(i) Subparagraph (A) shall not apply to a transaction involving
defense articles or services if--
(I) the Bank determines that--
(aa) the defense articles or services are nonlethal; and
(bb) the primary end use of the defense articles or services
will be for civilian purposes; and
(II) at least 15 calendar days before the date on which the
Board of Directors of the Bank gives final approval to Bank
participation in the transaction, the Bank provides notice of the
transaction to the Committees on Financial Services and on
Appropriations of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and on Appropriations of the
Senate.
(ii) Not more than 10 percent of the loan, guarantee, and insurance
authority available to the Bank for a fiscal year may be used by the
Bank to support the sale of defense articles or services to which
subparagraph (A) does not apply by reason of clause (i) of this
subparagraph.
(iii) Not later than September 1 of each fiscal year, the
Comptroller General of the United States, in consultation with the Bank,
shall submit to the Committees on Financial Services and on
Appropriations of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and on Appropriations of the Senate
a report on the end uses of any defense articles or services described
in clause (i) with respect to which the Bank provided support during the
second preceding fiscal year.
(7) In no event shall the Bank have outstanding at any time in
excess of 7\1/2\ per centum of the limitation imposed by section 635e of
this title for such guarantees, insurance, credits or participation in
credits with respect to exports of defense articles and services to
countries which, in the judgment of the Board of Directors of the Bank,
are less developed.
(8) The Bank shall supplement but not compete with private capital
and the programs of the Commodity Credit Corporation to ensure that
adequate financing will be made available to assist the export of
agricultural commodities, except that, consistent with paragraph (1)(A)
of this subsection, the Bank in assisting any such export transactions
shall, in cooperation with the export financing instrumentalities of
other governments, seek to minimize competition in Government-supported
export financing, and shall, in cooperation with other appropriate
United States Government agencies, seek to reach international
agreements to reduce Government subsidized export financing. In order to
carry out the purposes of this subsection, the Bank shall consult with
the Secretary of Agriculture and where the Secretary of Agriculture has
recommended against Bank financing of the export of a particular
agricultural commodity, shall take such recommendation into
consideration in determining whether to provide credit or other
assistance for any export sale of such commodity, and shall consider the
importance of agricultural commodity exports to the United States export
market and the nation's balance of trade in deciding whether or not to
provide assistance under this subsection.
(9)(A) The Board of Directors of the Bank shall, in consultation
with the Secretary of Commerce and the Trade Promotion Coordinating
Committee, take prompt measures, consistent with the credit standards
otherwise required by law, to promote the expansion of the Bank's
financial commitments in sub-Saharan Africa under the loan, guarantee,
and insurance programs of the Bank.
(B)(i) The Board of Directors shall establish and use an advisory
committee to advise the Board of Directors on the development and
implementation of policies and programs designed to support the
expansion described in subparagraph (A).
(ii) The advisory committee shall make recommendations to the Board
of Directors on how the Bank can facilitate greater support by United
States commercial banks for trade with sub-Saharan Africa.
(iii) The advisory committee shall terminate on September 30, 2006.
(10)(A) The Bank shall not, without a specific authorization by law,
guarantee, insure, or extend credit (or participate in the extension of
credit) to--
(i) assist specific countries with balance of payments
financing; or
(ii) assist (as the primary purpose of any such guarantee,
insurance, or credit) any country in the management of its
international indebtedness, other than its outstanding obligations
to the Bank.
(B) Nothing contained in subparagraph (A) shall preclude guarantees,
insurance, or credit the primary purpose of which is to support United
States exports.
(11) Prohibition Relating to Angola.--The Bank may not guarantee,
insure, or extend (or participate in the extension of) credit in
connection with any export of any good (other than food or an
agricultural commodity) or service to the People's Republic of Angola
until the President certifies to the Congress that free and fair
elections have been held in Angola in which all participants were
afforded free and fair access, and that the government of Angola--
(A) is willing, and is actively seeking, to achieve an equitable
political settlement of the conflict in Angola, including free and
fair elections, through a mutual cease-fire and a dialogue with the
opposition armed forces;
(B) has demonstrated progress in protecting internationally
recognized human rights, and particularly in--
(i) ending, through prosecution or other means, involvement
of members of the military and security forces in political
violence and abuses of internationally recognized human rights;
(ii) vigorously prosecuting persons engaged in political
violence who are connected with the government; and
(iii) bringing to justice those responsible for the
abduction, torture, and murder of citizens of Angola and
citizens of the United States; and
(C) has demonstrated progress in its respect for, and protection
of--
(i) the freedom of the press;
(ii) the freedom of speech;
(iii) the freedom of assembly;
(iv) the freedom of association (including the right to
organize for political purposes);
(v) internationally recognized worker rights; and
(vi) other attributes of political pluralism and democracy.
The President shall include in each report made pursuant to this
paragraph a detailed statement with respect to each of the conditions
set forth in this paragraph. This paragraph shall not be construed to
impose any requirement with respect to Angola that is more restrictive
than any requirement imposed by this section generally on all other
countries.
(12) Prohibition relating to russian transfers of certain missile
systems.--If the President of the United States determines that the
military or Government of the Russian Federation has transferred or
delivered to the People's Republic of China an SS-N-22 missile system
and that the transfer or delivery represents a significant and imminent
threat to the security of the United States, the President of the United
States shall notify the Bank of the transfer or delivery as soon as
practicable. Upon receipt of the notice and if so directed by the
President of the United States, the Board of Directors of the Bank shall
not give approval to guarantee, insure, extend credit, or participate in
the extension of credit in connection with the purchase of any good or
service by the military or Government of the Russian Federation.
(c) Guarantees, insurance, coinsurance, and reinsurance functions;
fractional charge; aggregate outstanding amount; fees and
premiums; issuance, service and adjustments by agents;
transferability of guarantees
(1) The Bank shall charge fees and premiums commensurate, in the
judgment of the Bank, with risks covered in connection with the
contractual liability that the Bank incurs for guarantees, insurance,
coinsurance, and reinsurance against political and credit risks of loss.
(2) The Bank may issue such guarantees, insurance, coinsurance, and
reinsurance to or with exporters, insurance companies, financial
institutions, or others, or groups thereof, and where appropriate may
employ any of the same to act as its agent in the issuance and servicing
of such guarantees, insurance, coinsurance, and reinsurance, and the
adjustment of claims arising thereunder.
(3) Transferability of Guarantees.--
(A) In general.--With respect to medium-term and long-term
obligations insured or guaranteed by the Bank after October 15,
1986, the Bank shall authorize the unrestricted transfer of such
obligations by the originating lenders or their transferees to other
lenders without affecting, limiting, or terminating the guarantee or
insurance provided by the Bank.
(B) Guarantee coverage.--For the guarantee program provided for
in this subsection, the Bank may provide up to 100 percent coverage
of the interest and principal if the Board of Directors determines
such coverage to be necessary to ensure acceptance of Bank
guarantees by financial institutions for any transaction in any
export market in which the Bank is open for business.
(d) Equal and nondiscriminatory opportunities for domestic companies to
bid for insurance
(1) In carrying out its responsibilities under this subchapter, the
Bank shall work to ensure that United States companies are afforded an
equal and nondiscriminatory opportunity to bid for insurance in
connection with transactions assisted by the Bank.
(2) Competitive opportunity for insurance companies.--In the case of
any long-term loan or guarantee of not less than $10,000,000, the Bank
shall seek to ensure that United States insurance companies are accorded
a fair and open competitive opportunity to provide insurance against
risk of loss in connection with any transaction with respect to which
such loan or guarantee is provided.
(3) Responsive actions.--If the Bank becomes aware that a fair and
open competitive opportunity is not accorded to any United States
insurance company in a foreign country with respect to which the Bank is
considering a loan or guarantee, the Bank--
(A) may approve or deny the loan or guarantee after considering
whether such action would be likely to achieve competitive access
for United States insurance companies; and
(B) shall forward information regarding any foreign country that
denies United States insurance companies a fair and open competitive
opportunity to the Secretary of Commerce and to the United States
Trade Representative for consideration of a recommendation to the
President that access by such country to export credit of the United
States should be restricted.
(4) Notice of approval.--If the Bank approves a loan or guarantee
with respect to a foreign country notwithstanding information regarding
denial by that foreign country of competitive opportunities for United
States insurance companies, the Bank shall include notice of such
approval and the reason for such approval in the report on competition
in officially supported export credit required under subsection
(b)(1)(A) of this section.
(5) Definitions.--For purposes of this section--
(A) the term ``United States insurance company''--
(i) includes an individual, partnership, corporation,
holding company, or other legal entity which is authorized (or
in the case of a holding company, subsidiaries of which are
authorized) by a State to engage in the business of issuing
insurance contracts or reinsuring the risk underwritten by
insurance companies; and
(ii) includes foreign operations, branches, agencies,
subsidiaries, affiliates, or joint ventures of any entity
described in clause (i); and
(B) the term ``fair and open competitive opportunity'' means,
with respect to the provision of insurance by a United States
insurance company, that the company--
(i) has received notice of the opportunity to provide such
insurance; and
(ii) has been evaluated for such opportunity on a
nondiscriminatory basis.
(e) Limitation on assistance which adversely affects the United States
(1) In general.--The Bank may not extend any direct credit or
financial guarantee for establishing or expanding production of any
commodity for export by any country other than the United States, if--
(A) the Bank determines that--
(i) the commodity is likely to be in surplus on world
markets at the time the resulting commodity will first be sold;
or
(ii) the resulting production capacity is expected to
compete with United States production of the same, similar, or
competing commodity; and
(B) the Bank determines that the extension of such credit or
guarantee will cause substantial injury to United States producers
of the same, similar, or competing commodity.
(2) Outstanding orders and preliminary injury determinations.--
(A) Orders.--The Bank shall not provide any loan or guarantee to
an entity for the resulting production of substantially the same
product that is the subject of--
(i) a countervailing duty or antidumping order under title
VII of the Tariff Act of 1930 [19 U.S.C. 1671 et seq.]; or
(ii) a determination under title II of the Trade Act of 1974
[19 U.S.C. 2251 et seq.].
(B) Affirmative determination.--Within 60 days after June 14,
2002, the Bank shall establish procedures regarding loans or
guarantees provided to any entity that is subject to a preliminary
determination of a reasonable indication of material injury to an
industry under title VII of the Tariff Act of 1930. The procedures
shall help to ensure that these loans and guarantees are likely to
not result in a significant increase in imports of substantially the
same product covered by the preliminary determination and are likely
to not have a significant adverse impact on the domestic industry.
The Bank shall report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the implementation of these
procedures.
(C) Comment period.--The Bank shall establish procedures under
which the Bank shall notify interested parties and provide a comment
period with regard to loans or guarantees reviewed pursuant to
subparagraph (B) or (D).
(D) Consideration of investigations under title ii of the trade
act of 1974.--In making any determination under paragraph (1) for a
transaction involving more than $10,000,000, the Bank shall consider
investigations under title II of the Trade Act of 1974 that have
been initiated at the request of the President of the United States,
the United States Trade Representative, the Committee on Finance of
the Senate, or the Committee on Ways and Means of the House of
Representatives, or by the International Trade Commission on its own
motion.
(3) Exception.--Paragraphs (1) and (2) shall not apply in any case
where, in the judgment of the Board of Directors of the Bank, the short-
and long-term benefits to industry and employment in the United States
are likely to outweigh the short- and long-term injury to United States
producers and employment of the same, similar, or competing commodity.
(4) Definition.--For purposes of paragraph (1)(B), the extension of
any credit or guarantee by the Bank will cause substantial injury if the
amount of the capacity for production established, or the amount of the
increase in such capacity expanded, by such credit or guarantee equals
or exceeds 1 percent of United States production.
(f) Authority to deny application for assistance based on fraud or
corruption by party involved in the transaction
In addition to any other authority of the Bank, the Bank may deny an
application for assistance with respect to a transaction if the Bank has
substantial credible evidence that any party to the transaction or any
party involved in the transaction has committed an act of fraud or
corruption in connection with the transaction.
(July 31, 1945, ch. 341, Sec. 2, 59 Stat. 526; Dec. 28, 1945, ch. 602,
59 Stat. 666; June 9, 1947, ch. 101, Sec. 1, 61 Stat. 130; May 21, 1953,
ch. 64, Sec. 1, 67 Stat. 28; Pub. L. 87-311, Sept. 26, 1961, 75 Stat.
673; Pub. L. 88-101, Sec. 1(a), Aug. 20, 1963, 77 Stat. 128; Pub. L. 90-
267, Sec. 1(a)-(c), Mar. 13, 1968, 82 Stat. 47-49; Pub. L. 92-126,
Sec. 1(b)(1), (2), (5), (6), Aug. 17, 1971, 85 Stat. 345, 346; Pub. L.
93-646, Secs. 2-6, 13, Jan. 4, 1975, 88 Stat. 2333-2335, 2337; Pub. L.
95-143, Secs. 1-3, Oct. 26, 1977, 91 Stat. 1210; Pub. L. 95-630, title
XIX, Secs. 1902-1904, 1907(a), 1909, 1910, 1915, 1916, Nov. 10, 1978, 92
Stat. 3724-3727; Pub. L. 96-470, title II, Sec. 210, Oct. 19, 1980, 94
Stat. 2245; Pub. L. 98-181, title VI, Secs. 612, 616(a), 617, 618(a),
(c), 619(b)-(d), 620(a), 622, Nov. 30, 1983, 97 Stat. 1255, 1257, 1258,
1260, 1261; Pub. L. 99-440, title II, Sec. 204, Oct. 2, 1986, 100 Stat.
1096; Pub. L. 99-472, Secs. 2-11, 20(a), Oct. 15, 1986, 100 Stat. 1200-
1203, 1209; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub.
L. 100-418, title III, Sec. 3304, Aug. 23, 1988, 102 Stat. 1384; Pub. L.
100-690, title IV, Sec. 4703, Nov. 18, 1988, 102 Stat. 4293; Pub. L.
101-240, title I, Secs. 101(a), (c), (d), 102, Dec. 19, 1989, 103 Stat.
2493-2495; Pub. L. 101-513, title V, Sec. 562(part), Nov. 5, 1990, 104
Stat. 2031; Pub. L. 101-623, Sec. 16, Nov. 21, 1990, 104 Stat. 3357;
Pub. L. 102-145, Sec. 121(2), (3), Oct. 28, 1991, as added Pub. L. 102-
266, Sec. 102, Apr. 1, 1992, 106 Stat. 95; Pub. L. 102-429, title I,
Secs. 104, 105, 107, 109(a), 110-112(d), 114, 116, 121(a), Oct. 21,
1992, 106 Stat. 2189, 2190, 2193-2196, 2198; Pub. L. 102-583,
Secs. 6(c), 12(a), (c)(1)(A), Nov. 2, 1992, 106 Stat. 4932, 4935; Pub.
L. 103-149, Sec. 4(b)(5), Nov. 23, 1993, 107 Stat. 1505; Pub. L. 103-
236, title VIII, Sec. 825, Apr. 30, 1994, 108 Stat. 514; Pub. L. 103-
428, Sec. 1(a), (b), Oct. 31, 1994, 108 Stat. 4375; Pub. L. 103-447,
title I, Sec. 102(a), Nov. 2, 1994, 108 Stat. 4693; Pub. L. 104-201,
div. A, title XIII, Sec. 1303(a), Sept. 23, 1996, 110 Stat. 2702; Pub.
L. 105-121, Secs. 5, 7(a), 9-12, Nov. 26, 1997, 111 Stat. 2529, 2530;
Pub. L. 106-569, title XI, Secs. 1103(d)(1), 1104(a)(1), (2), Dec. 27,
2000, 114 Stat. 3031; Pub. L. 107-189, Secs. 2, 6(a), (b), 7-8(b), 11,
13, 15-19, 21, 24(a)(1)-(2)(D), (b)(1)-(3), June 14, 2002, 116 Stat.
698, 700, 704-709.)
Amendment of Section
For termination of amendment by section 1(c) of Pub. L. 103-428,
see Effective and Termination Dates of 1994 Amendments note below.
References in Text
The Federal Credit Reform Act of 1990, referred to in subsec.
(b)(1)(B), is title V of Pub. L. 93-344, as added by Pub. L. 101-508,
title XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-609, which is
classified generally to subchapter III (Sec. 661 et seq.) of chapter 17A
of Title 2, The Congress. For complete classification of this Act to the
Code, see Short Title note set out under section 621 of Title 2 and
Tables.
The Foreign Corrupt Practices Act of 1977, referred to in subsec.
(b)(1)(B), (L), is title I of Pub. L. 95-213, Dec. 19, 1977, 91 Stat.
1494, as amended, which enacted sections 78dd-1 to 78dd-3 of Title 15,
Commerce and Trade, and amended sections 78m and 78ff of Title 15. For
complete classification of this Act to the Code, see Short Title of 1977
Amendment note set out under section 78a of Title 15 and Tables.
The Arms Export Control Act, referred to in subsec. (b)(1)(B), (L),
(6)(F), is Pub. L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended,
which is classified principally to chapter 39 (Sec. 2751 et seq.) of
Title 22, Foreign Relations and Intercourse. For complete classification
of this Act to the Code, see Short Title note set out under section 2751
of Title 22 and Tables.
The International Emergency Economic Powers Act, referred to in
subsec. (b)(1)(B), (L), is title II of Pub. L. 95-223, Dec. 28, 1977, 91
Stat. 1626, as amended, which is classified generally to chapter 35
(Sec. 1701 et seq.) of Title 50, War and National Defense. For complete
classification of this Act to the Code, see Short Title note set out
under section 1701 of Title 50 and Tables.
The Export Administration Act of 1979, referred to in subsec.
(b)(1)(B), (L), is Pub. L. 96-72, Sept. 29, 1979, 93 Stat. 503, as
amended, which is classified principally to section 2401 et seq. of
Title 50, Appendix, War and National Defense. For complete
classification of this Act to the Code, see Short Title note set out
under section 2401 of Title 50, Appendix, and Tables.
Section 2151q of title 22, referred to in subsec. (b)(1)(C), was
repealed by Pub. L. 96-533, title III, Sec. 304(g), Dec. 16, 1980, 94
Stat. 3147. See section 2151d(a)(2), (b)(2), (c) of Title 22, Foreign
Relations and Intercourse.
The Tariff Act of 1930, referred to in subsec. (e)(2)(A)(i), (B), is
act June 17, 1930, ch. 497, 46 Stat. 590, as amended. Title VII of the
Act is classified generally to subtitle IV (Sec. 1671 et seq.) of
chapter 4 of Title 19, Customs Duties. For complete classification of
this Act to the Code, see section 1654 of Title 19 and Tables.
The Trade Act of 1974, referred to in subsec. (e)(2)(A)(ii), (D), is
Pub. L. 93-618, Jan. 3, 1975, 88 Stat. 1978, as amended. Title II of the
Act is classified generally to subchapter II (Sec. 2251 et seq.) of
chapter 12 of Title 19, Customs Duties. For complete classification of
this Act to the Code, see section 2101 of Title 19 and Tables.
Codification
Section 1(c) of Pub. L. 90-267 added pars. (2) to (5) of subsec. (b)
and another section of Pub. L. 90-267 also designated 1(c) substituted
``$3,500,000,000'' for ``$2,000,000,000'' in subsec. (c)(1). See, also,
1968 Amendments hereunder.
Amendments
2002--Subsec. (a)(1). Pub. L. 107-189, Sec. 2, substituted ``The
objects and purposes of the Bank shall be to aid in financing and to
facilitate exports of goods and services, imports, and the exchange of
commodities and services between the United States or any of its
territories or insular possessions and any foreign country or the
agencies or nationals of any such country, and in so doing to contribute
to the employment of United States workers. The Bank's objective in
authorizing loans, guarantees, insurance, and credits shall be to
contribute to maintaining or increasing employment of United States
workers.'' for ``The objects and purposes of the bank shall be to aid in
financing and to facilitate exports and imports and the exchange of
commodities and services between the United States or any of its
Territories or insular possessions and any foreign country or the
agencies or nationals thereof.''
Subsec. (b)(1)(A). Pub. L. 107-189, Secs. 11, 13(b), substituted
``not later than June 30 of each year'' for ``on an annual basis'' in
fourth sentence, inserted ``(including through use of market windows)''
after ``which foreign exporters compete with the United States
exporters'' in fifth sentence, inserted ``With respect to the preceding
sentence, the Bank shall use all available information to estimate the
annual amount of export financing available from each government and
government-related agency.'' after fifth sentence, and inserted at end
``The Bank shall include in the annual report a description of all Bank
transactions which shall be classified according to their principal
purpose, such as to correct a market failure or to provide matching
support. The Bank shall include in the annual report a description of
the efforts undertaken under subparagraph (K).''
Subsec. (b)(1)(B). Pub. L. 107-189, Secs. 15, 17, 21, 24(a)(1),
substituted ``Committee on Financial Services of the House of
Representatives'' for ``Committee on Banking and Financial Services of
the House of Representatives'' and inserted ``(including, when relevant,
a foreign nation's lack of cooperation in efforts to eradicate
terrorism)'' after ``international terrorism'', ``the enforcement of the
Foreign Corrupt Practices Act of 1977, the Arms Export Control Act, the
International Emergency Economic Powers Act, or the Export
Administration Act of 1979,'' after ``nuclear proliferation,'' and
``(such as are provided in the Universal Declaration of Human Rights
adopted by the United Nations General Assembly on December 10, 1948)''
after ``human rights''.
Subsec. (b)(1)(E)(iii)(II). Pub. L. 107-189, Sec. 7(b), inserted ``,
with particular emphasis on conducting outreach and increasing loans to
socially and economically disadvantaged small business concerns (as
defined in section 637(a)(4) of title 15), small business concerns (as
defined in section 632(a) of title 15) owned by women, and small
business concerns (as defined in section 632(a) of title 15) employing
fewer than 100 employees,'' after ``Bank''.
Subsec. (b)(1)(E)(v). Pub. L. 107-189, Sec. 7(a), substituted ``20
percent'' for ``10 percent''.
Subsec. (b)(1)(E)(x). Pub. L. 107-189, Sec. 8(a), added cl. (x).
Subsec. (b)(1)(H)(ii), (iii). Pub. L. 107-189, Sec. 24(b)(1), made
technical amendment to reference in original act which appears in text
as reference to section 5402 of title 22.
Subsec. (b)(1)(J). Pub. L. 107-189, Sec. 8(b), added subpar. (J).
Subsec. (b)(1)(K). Pub. L. 107-189, Sec. 13(a), added subpar. (K).
Subsec. (b)(1)(L). Pub. L. 107-189, Sec. 19, added subpar. (L).
Subsec. (b)(6)(D)(i)(III). Pub. L. 107-189, Sec. 24(a)(2)(A),
substituted ``Committee on Financial Services of the House of
Representatives'' for ``Committee on Banking, Finance and Urban Affairs
of the House of Representatives''.
Subsec. (b)(6)(E). Pub. L. 107-189, Sec. 24(b)(3), substituted
``internationally'' for ``international''.
Subsec. (b)(6)(H). Pub. L. 107-189, Sec. 24(a)(2)(B), substituted
``Committee on Financial Services of the House of Representatives'' for
``Committee on Banking, Finance and Urban Affairs of the House of
Representatives''.
Subsec. (b)(6)(I)(i)(II), (iii). Pub. L. 107-189, Sec. 24(a)(2)(C),
(D), substituted ``Committees on Financial Services'' for ``Committees
on Banking, Finance and Urban Affairs''.
Subsec. (b)(9)(A). Pub. L. 107-189, Sec. 6(b), inserted ``, in
consultation with the Secretary of Commerce and the Trade Promotion
Coordinating Committee,'' after ``shall''.
Subsec. (b)(9)(B)(iii). Pub. L. 107-189, Sec. 6(a), amended cl.
(iii) generally. Prior to amendment, cl. (iii) read as follows: ``The
advisory committee shall terminate 4 years after November 26, 1997.''
Subsec. (b)(12). Pub. L. 107-189, Sec. 24(b)(2), realigned margins.
Subsec. (e)(2) to (4). Pub. L. 107-189, Sec. 18, substituted
``Paragraphs (1) and (2)'' for ``Paragraph (1)'' in par. (2), added a
new par. (2), and redesignated former pars. (2) and (3) as (3) and (4),
respectively.
Subsec. (f). Pub. L. 107-189, Sec. 16, added subsec. (f).
2000--Subsec. (b)(1)(A). Pub. L. 106-569, Sec. 1103(d)(1),
substituted ``The Bank shall, on an annual basis, report'' for ``The
Bank shall, on a annual basis, report'' and inserted at end ``The annual
report required under this subparagraph shall include the report
required under section 635i-3(g) of this title.''
Subsec. (b)(1)(D). Pub. L. 106-569, Sec. 1104(a)(1), struck out
``(i)'' after ``(D)'' and struck out cl. (ii) which read as follows:
``The Bank shall include in its annual report a summary of its programs
regarding the export of services.''
Subsec. (b)(8). Pub. L. 106-569, Sec. 1104(a)(2), struck out at end
``The Bank shall include in the report to Congress under section 635g(a)
of this title a description of the measures undertaken by it pursuant to
this subsection.''
1997--Subsec. (b)(1)(A). Pub. L. 105-121, Sec. 10, in first
sentence, substituted ``real income, a commitment to reinvestment and
job creation, and the increased development of the productive resources
of the United States'' for ``real income and to the increased
development of the productive resources of the United States''.
Subsec. (b)(1)(B). Pub. L. 105-121, Sec. 11, inserted ``(including
child labor)'' after ``human rights'' in penultimate sentence.
Pub. L. 105-121, Sec. 5(2), inserted at end ``Each such
determination shall be delivered in writing to the President of the
Bank, shall state that the determination is made pursuant to this
section, and shall specify the applications or categories of
applications for credit which should be denied by the Bank in
furtherance of the national interest.''
Pub. L. 105-121, Sec. 5(1), in penultimate sentence, inserted ``,
after consultation with the Committee on Banking and Financial Services
of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate,'' after ``President''.
Subsec. (b)(1)(I). Pub. L. 105-121, Sec. 9, added subpar. (I).
Subsec. (b)(9). Pub. L. 105-121, Sec. 7(a), added par. (9).
Subsec. (b)(12). Pub. L. 105-121, Sec. 12, added par. (12).
1996--Subsec. (b)(4). Pub. L. 104-201 amended par. (4) generally,
restating provisions of former single par. as subpars. (A) to (F) with
addition of provisions relating to persons knowingly aiding or abetting
non-nuclear-weapon states to acquire nuclear explosive devices or
unsafeguarded special nuclear material and requiring Secretary of State
to initiate consultations with governments having jurisdiction over such
persons.
1994--Subsec. (b)(4). Pub. L. 103-236 inserted ``(as defined in
section 6305(4) of title 22), or that any country has willfully aided or
abetted any non-nuclear-weapon state (as defined in section 6305(5) of
title 22) to acquire any such nuclear explosive device or to acquire
unsafeguarded special nuclear material (as defined in section 6305(8) of
title 22).'' after ``device'' at end of first sentence.
Subsec. (b)(6)(C)(ii). Pub. L. 103-447 substituted ``defined in
section 2291(e) of title 22'' for ``determined under section 2291j(h) or
2291(e), as appropriate, of title 22''.
Subsec. (b)(6)(H). Pub. L. 103-428, Sec. 1(b), (c), temporarily
inserted ``or described in subparagraph (I)(i)'' before period at end of
first sentence. See Effective and Termination Dates of 1994 Amendments
note below.
Subsec. (b)(6)(I). Pub. L. 103-428, Sec. 1(a), (c), temporarily
added subpar. (I). See Effective and Termination Dates of 1994
Amendments note below.
1993--Subsec. (b)(9). Pub. L. 103-149 struck out par. (9) which
prohibited the Bank from taking certain actions with respect to business
affecting Republic of South Africa.
1992--Subsec. (a)(3). Pub. L. 102-429, Sec. 121(a)(1), struck out
``(A) In general.--'' before ``To enhance the medium-term'',
redesignated cls. (i) to (iv) as subpars. (A) to (D), respectively, and
struck out former subpar. (B) which read as follows: ``Report
required.--Not later than April 15, 1988, the Bank shall transmit a
report to the Congress analyzing the measures adopted to enhance medium-
term financing.''
Subsec. (b)(1)(A). Pub. L. 102-429, Sec. 121(a)(2), added sentence
at end and struck out former last sentence which read as follows: ``The
Bank shall also include in the annual report a description of each loan
by the Bank involving the export of any product or service related to
the production, refining or transportation of any type of energy or the
development of any energy resource with a statement assessing the
impact, if any, on the availability of such products, services, or
energy supplies thus developed for use within the United States.''
Subsec. (b)(1)(B). Pub. L. 102-429, Sec. 104, inserted after first
semicolon in fifth sentence ``that the Bank, in determining whether to
provide support for a transaction under the loan, guarantee, or
insurance program, or any combination thereof, shall consider the need
to involve private capital in support of United States exports as well
as the cost of the transaction as calculated in accordance with the
requirements of the Federal Credit Reform Act of 1990;''.
Subsec. (b)(1)(E)(v). Pub. L. 102-429, Sec. 121(a)(3), substituted
``not less than 10 percent of such authority for each fiscal year.'' for
``not less than--
``(I) 6 per centum of such authority for fiscal year 1984;
``(II) 8 per centum of such authority for fiscal year 1985; and
``(III) 10 per centum of such authority for fiscal year 1986 and
thereafter.''
Pub. L. 102-429, Sec. 116, inserted ``directly'' after ``to finance
exports''.
Subsec. (b)(1)(H). Pub. L. 102-429, Sec. 114, added subpar. (H).
Subsec. (b)(2)(B). Pub. L. 102-429, Sec. 110, amended subpar. (B)
generally. Prior to amendment, subpar. (B) read as follows:
``(i) In general.--For the purposes of this paragraph, the term
`Marxist-Leninist country' means any country which--
``(I) maintains a centrally planned economy based on the
principles of Marxist-Leninism, or
``(II) is economically and militarily dependent on the Union of
Soviet Socialist Republics or on any other Marxist-Leninist country.
``(ii) Specific countries deemed to be marxist-leninist.--Unless
otherwise determined by the President in the manner provided in
subparagraph (C), the following countries are deemed to be Marxist-
Leninist countries for purposes of this paragraph:
``Cambodian People's Republic.
``Cooperative Republic of Guyana.
``Czechoslovak Socialist Republic.
``Democratic People's Republic of Korea.
``Democratic Republic of Afghanistan.
``Estonia.
``German Democratic Republic.
``Hungarian People's Republic.
``Lao People's Democratic Republic.
``Latvia.
``Lithuania.
``Mongolian People's Republic.
``People's Democratic Republic of Yemen.
``People's Republic of Albania.
``People's Republic of Angola.
``People's Republic of Benin.
``People's Republic of Bulgaria.
``People's Republic of China.
``People's Republic of the Congo.
``People's Republic of Mozambique.
``Polish People's Republic.
``Republic of Cuba.
``Republic of Nicaragua.
``Socialist Ethiopia.
``Socialist Federal Republic of Yugoslavia.
``Socialist Republic of Romania.
``Socialist Republic of Vietnam.
``Surinam.
``Tibet.
``Union of Soviet Socialist Republics (including its captive
constituent republics).''
Subsec. (b)(6)(A). Pub. L. 102-583, Sec. 12(c)(1)(A), which directed
the substitution of ``, except as otherwise provided in subparagraph
(B).'' for ``designated'' and all that follows through the end of the
subparagraph could not be executed because the words did not appear
subsequent to the amendment by Pub. L. 102-429, Sec. 112(d)(1). See
below.
Pub. L. 102-429, Sec. 112(d)(1), struck out before period at end
``designated under section 4916 of title 26 as an economically less
developed country for purposes of the tax imposed by section 4911 of
title 26. The prohibitions set forth in this subparagraph shall not
apply with respect to any transaction the consummation of which the
President determines would be in the national interest and reports such
determination (within thirty days after making the same) to the Senate
and House of Representatives. In making any such determination the
President shall take into account, among other considerations, the
national interest in avoiding arms races among countries not directly
menaced by the Soviet Union or by Communist China; in avoiding arming
military dictators who are denying social progress to their own peoples;
and in avoiding expenditures by developing countries of scarce foreign
exchange needed for peaceful economic progress''.
Subsec. (b)(6)(B). Pub. L. 102-429, Sec. 112(d)(2)(A), struck out
``, and section 32 of the Arms Export Control Act,'' after
``Subparagraph (A)''.
Subsec. (b)(6)(B)(iii). Pub. L. 102-583, Sec. 6(c)(1), substituted
``section 2291j(e) of title 22'' for ``section 2291(h)(5) of title 22''.
Subsec. (b)(6)(B)(iv), (v). Pub. L. 102-429, Sec. 112(a)(1), (2),
(d)(2)(B), inserted ``and'' at end of cl. (iv) and substituted
``articles or services.'' for ``articles and services; and'' at end of
cl. (v).
Subsec. (b)(6)(B)(vi). Pub. L. 102-583, Sec. 12(a), which directed
the substitution of ``1997'' for ``1992'' in cl. (vi), could not be
executed because cl. (vi) was struck out by Pub. L. 102-429,
Sec. 112(a)(3). See below.
Pub. L. 102-429, Sec. 112(a)(3), struck out cl. (vi) which read as
follows: ``the sale is made on or before September 30, 1992.''
Subsec. (b)(6)(C)(ii). Pub. L. 102-583, Sec. 6(c)(2), substituted
``determined under section 2291j(h) or 2291(e), as appropriate, of title
22'' for ``defined in section 2291(i) of title 22''.
Subsec. (b)(6)(D)(i). Pub. L. 102-429, Sec. 112(b), (d)(3), struck
out ``and'' at end of subcl. (I), added subcl. (II), redesignated former
subcl. (II) as (III), and substituted ``determinations have'' for
``determination has'' in subcl. (III).
Subsec. (b)(6)(D)(ii). Pub. L. 102-429, Sec. 112(d)(4), substituted
``clause'' for ``sentence'' before period at end.
Subsec. (b)(6)(G). Pub. L. 102-429, Sec. 112(d)(5), substituted ``or
services'' for ``and services''.
Subsec. (b)(6)(H). Pub. L. 102-429, Sec. 112(c), added subpar. (H).
Subsec. (b)(11), (12). Pub. L. 102-429, Sec. 111, redesignated par.
(12) as (11), substituted ``The President'' for ``Notwithstanding any
determination by the President under paragraph (2) or (11), the'', and
struck out former par. (11) which read as follows: ``Prohibition
Relating to Angola.--Notwithstanding any determination by the President
under paragraph (2), the Bank may not guarantee, insure, or extend
credit (or participate in the extension of credit) in connection with
any export of goods or services, except food or agricultural
commodities, to the People's Republic of Angola until the President
certifies to the Congress that no combatant forces or military advisors
of the Republic of Cuba or of any other Marxist-Leninist country (as
such term is defined in paragraph (2)(B)) remain in Angola.''
Subsec. (c)(1). Pub. L. 102-429, Sec. 109(a), amended par. (1)
generally. Prior to amendment, par. (1) read as follows: ``The Bank is
authorized and empowered to charge against the limitations imposed by
section 635e of this title, not less than 25 per centum of the related
contractual liability which the Bank incurs for guarantees, insurance,
coinsurance, and reinsurance against political and credit risks of loss.
The aggregate amount of guarantees, insurance, coinsurance, and
reinsurance which may be charged on this fractional basis pursuant to
this section shall not exceed $25,000,000,000 outstanding at any one
time. Fees and premiums shall be charged in connection with such
contracts commensurate, in the judgment of the Bank, with risks
covered.''
Subsec. (c)(3). Pub. L. 102-429, Sec. 105, designated existing
provisions as subpar. (A), inserted heading, and added subpar. (B).
Subsec. (d)(2) to (5). Pub. L. 102-429, Sec. 107, added pars. (2) to
(5) and struck out former pars. (2) and (3) which read as follows:
``(2) In furtherance of such effort, the Chairman of the Bank shall
review Bank policies and programs in regard to this issue, and in
coordination with the United States Trade Representative and the
appropriate agencies of the Department of State, the Department of the
Treasury, and the Department of Commerce, undertake actions designed to
promote equal and nondiscriminatory opportunities to bid for insurance
in connection with all aspects of international trade activities.
``(3) The Bank shall report to the Committee or Banking, Finance and
Urban Affairs of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate not later than May 15,
1984, regarding--
``(A) the existing obstacles to equal and nondiscriminatory
bidding for insurance related to transactions assisted by the Bank;
``(B) the efforts that the Bank has taken in addressing such
problems; and
``(C) recommendations for such legislative or administrative
actions as the Bank considers necessary.''
Subsec. (f). Pub. L. 102-429, Sec. 121(a)(4), struck out subsec. (f)
which related to interest subsidy payments.
1991--Subsec. (b)(3). Pub. L. 102-145, Sec. 121(2), (3), as added by
Pub. L. 102-266, amended par. (3) in introductory provisions by
redesignating cl. (iii) as (ii) and striking out ``(ii) in an amount
which equals or exceeds $25,000,000 for the export of goods or services
involving research, exploration, or production of fossil fuel energy
resources in the Union of Soviet Socialist Republics,''.
1990--Subsec. (b)(6)(B)(vi). Pub. L. 101-513 and Pub. L. 101-623
amended cl. (vi) identically, substituting ``1992'' for ``1990''.
1989--Subsec. (a)(1). Pub. L. 101-240, Sec. 101(c), substituted
``Subject to regulations which the Bank shall issue pursuant to section
553 of title 5, the Bank may'' for ``The Bank may'' in sixth sentence
and inserted before period ``, and may accept reimbursement for travel
and subsistence expenses incurred by a director, officer, or employee of
the Bank, in accordance with subchapter I of chapter 57 of title 5'' and
inserted before period in seventh sentence ``and shall be offset against
the expenses of the Bank for such activities''.
Subsec. (b)(6)(G). Pub. L. 101-240, Sec. 101(d), substituted
``subparagraphs (B), (C), (D), and (F)'' for ``this paragraph''.
Subsec. (b)(12). Pub. L. 101-240, Sec. 102, added par. (12).
Subsec. (f)(2). Pub. L. 101-240, Sec. 101(a)(1), redesignated par.
(3) as (2) and struck out former par. (2) which read as follows:
``Authority to make payments subject to minimum amount of direct loan
authority.--The authority to enter into commitments to make interest
subsidy payments under paragraph (1) shall be effective for any fiscal
year only if the aggregate principal amount of direct loans the Bank may
obligate in such fiscal year is equal to or greater than $700,000,000.''
Subsec. (f)(3). Pub. L. 101-240, Sec. 101(a)(1), (2), redesignated
par. (4) as (3) and amended it generally. Prior to amendment, such par.
read as follows:
``(A) In general.--Subject to subparagraph (B), there are authorized
to be appropriated to the Bank, for any fiscal year beginning after
fiscal year 1986, such sums as may be necessary to carry out the
purposes of this subsection.
``(B) Budget scoring.--No amount is authorized to be appropriated
for commitments to make interest subsidy payments on loans for which the
Bank extends a loan guarantee commitment if any amount of such loan
guarantee commitment is scored as budget authority in any estimate of
budget authority prepared pursuant to any provision of the Congressional
Budget and Impoundment Control Act of 1974.'' Former par. (3)
redesignated (2).
Subsec. (f)(4), (5). Pub. L. 101-240, Sec. 101(a)(1), (3),
redesignated par. (5) as (4) and substituted ``1991'' for ``1988''.
Former par. (4) redesignated (3).
1988--Subsec. (b)(6). Pub. L. 100-690 designated existing provision
as subpar. (A), substituted ``subparagraph'' for ``paragraph'', and
added subpars. (B) to (G).
Subsec. (e)(1)(A)(i). Pub. L. 100-418, Sec. 3304(a), substituted
``commodity will first be sold'' for ``productive capacity is expected
to become operative''.
Subsec. (e)(2). Pub. L. 100-418, Sec. 3304(b), substituted ``short-
and long-term injury'' for ``injury'' and ``producers and employment''
for ``producers''.
Subsec. (e)(3). Pub. L. 100-418, Sec. 3304(c), added par. (3).
1986--Subsec. (a)(1). Pub. L. 99-472, Sec. 2, inserted provisions
which related to imposition and collection of reasonable fees by Bank to
cover costs of conferences and seminars sponsored, and publications
provided, by Bank, and credit of amounts thus received to fund which
initially paid for such activities.
Subsec. (a)(3). Pub. L. 99-472, Sec. 4, added par. (3).
Subsec. (b)(1)(B). Pub. L. 99-472, Secs. 3, 5, substituted ``need
not be identical in all respects to those'' for ``need not be equivalent
to those'' and inserted provisions which prohibited Bank from imposing
credit application fee unless Bank's fee is competitive with average fee
charged by Bank's primary foreign competitors, and option of paying fee
at outset of, or over life of, loan is given to borrower or exporter,
and present value of fee determined under either option is same amount.
Subsec. (b)(1)(E)(ix). Pub. L. 99-472, Sec. 6, added cl. (ix).
Subsec. (b)(1)(G). Pub. L. 99-472, Sec. 7, added subpar. (G).
Subsec. (b)(2). Pub. L. 99-472, Sec. 8, amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``The Bank in the exercise
of its functions shall not guarantee, insure, or extend credit, or
participate in any extension of credit--
``(A) in connection with the purchase or lease of any product by
a Communist country (as defined in section 2370(f) of title 22), or
agency, or national thereof, or
``(B) in connection with the purchase or lease of any product by
any other foreign country, or agency or national thereof, if the
product to be purchased or leased by such other country, agency, or
national is, to the knowledge of the Bank, principally for use in,
or sale or lease to, a Communist country (as so defined),
unless the President determines that guarantees, insurance, or
extensions of credit in connection therewith to such Communist or such
other country or agency or national thereof would be in the national
interest. The President shall make a separate determination with respect
to each transaction in which the bank would extend a loan to such
Communist or other country, or agency, or national thereof an amount of
$50,000,000 or more. Any determination required under the first sentence
of this paragraph shall be reported to the Congress not later than the
earlier of thirty days following the date of such determination, or the
date on which the Bank takes final action on a transaction which is the
first transaction involving such country or agency or national after
January 4, 1975, unless a determination with respect to such country or
agency or national has been made and reported prior to January 4, 1975.
Any determination required to be made under the second sentence of this
paragraph shall be reported to the Congress not later than the earlier
of thirty days following the date of such determination or the date on
which the Bank takes final action on the transaction involved.''
Subsec. (b)(6). Pub. L. 99-514 substituted ``Internal Revenue Code
of 1986'' for ``Internal Revenue Code of 1954'', which for purposes of
codification was translated as ``title 26'' thus requiring no change in
text.
Subsec. (b)(9). Pub. L. 99-440 designated existing provisions of
par. (9) as subpar. (A), substituted ``Except as provided in
subparagraph (B), in no event'' for ``In no event'', and added subpar.
(B).
Subsec. (b)(11). Pub. L. 99-472, Sec. 9, added par. (11).
Subsec. (c)(3). Pub. L. 99-472, Sec. 10, added par. (3).
Subsecs. (e), (f). Pub. L. 99-472, Secs. 11, 20(a), added subsecs.
(e) and (f).
1983--Subsec. (a)(1). Pub. L. 98-181, Sec. 616(a)(1), substituted
``the exchange of commodities and services'' for ``the exchange of
commodities''.
Subsec. (a)(2). Pub. L. 98-181, Sec. 622, added par. (2).
Subsec. (b)(1)(A). Pub. L. 98-181, Secs. 612(a), 616(a)(2), in
second sentence inserted ``in all its programs'' after ``To meet this
objective'', inserted ``fully'' after ``other conditions which are'',
and substituted ``exports of goods and services'' for ``exports''.
Subsec. (b)(1)(B). Pub. L. 98-181, Secs. 612(b), (c), 618(a)(1),
substituted provisions that loans under this section shall bear interest
at rates consistent with the Bank's mandate to support exports at rates
and on terms and conditions which are fully competitive with exports of
other countries, and consistent with international agreements, and that
such rates, terms and conditions need not be equivalent to those offered
by foreign countries, but should be established so as to neutralize the
effect of such foreign credit on international sales competition, and
that the Board shall consider its average cost of money in determination
of interest rates, where such consideration does not impair the Bank's
function of expanding exports through fully competitive financing for
provisions that loans made by the Bank had to be at interest at rates
determined by the Board of Directors of the Bank, taking into
consideration the average cost of money to the Bank as well as the
Bank's mandate to support United States exports at rates and on terms
and conditions which were competitive with exports of other countries;
inserted ``export trading companies,'' after ``independent export
firms,''; and struck out provision which required the Bank to give due
recognition to the policy stated in section 631(a) of Title 15 that the
government should aid, counsel, assist, and protect the interests of
small business in order to preserve free competitive enterprise, and
that in furtherance of this policy the Board of Directors had to
designate an officer of the Bank to handle small business concerns,
including advising small businessmen and maintaining liaison with the
Small Business Administration and other departments and agencies in
matters affecting small business concerns.
Subsec. (b)(1)(D). Pub. L. 98-181, Sec. 616(a)(3), added subpar.
(D).
Subsec. (b)(1)(E). Pub. L. 98-181, Sec. 618(a)(2), added subpar.
(E).
Subsec. (b)(1)(F). Pub. L. 98-181, Sec. 618(c), added subpar. (F).
Subsec. (b)(3). Pub. L. 98-181, Sec. 619(b), substituted ``no loan
or financial guarantee or general guarantee or insurance facility'' for
``no loan or financial guarantee'' in provisions preceding subpar. (A).
Subsec. (b)(3)(A). Pub. L. 98-181, Sec. 619(c), inserted language
limiting existing provisions to loans or financial guarantees,
designated existing provisions as cls. (i), (ii), and (iii), and added
cl. (iv).
Subsec. (b)(4). Pub. L. 98-181, Sec. 620(a), substituted ``the
Secretary'' for ``he'' before ``determines that any country'' in first
sentence, and before ``has determined to have so acted'' in second
sentence.
Subsec. (b)(7) to (10). Pub. L. 98-181, Sec. 619(d), redesignated
second par. (7) and par. (8), as added by Pub. L. 95-630, as pars. (8)
and (9), respectively, and added par. (10).
Subsec. (d). Pub. L. 98-181, Sec. 617, added subsec. (d).
1980--Subsec. (b)(1)(A). Pub. L. 96-470 substituted ``annual'' for
``semiannual'' in three places.
1978--Subsec. (b)(1)(A). Pub. L. 95-630, Sec. 1910, substituted
``manufactured goods, agricultural products, and other goods and
services'' for ``goods and related services''.
Subsec. (b)(1)(B). Pub. L. 95-630, Secs. 1904, 1916, inserted ``that
the Bank should give emphasis to assisting new and small business
entrants in the agricultural export market, and shall, in cooperation
with other relevant Government agencies, including the Commodity Credit
Corporation, develop a program of education to increase awareness of
export opportunities among small agribusinesses and cooperatives;''
after ``in matters affecting small business concerns;'' and substituted
``and shall give particular emphasis to the objective of strengthening
the competitive position of the United States exporters and thereby of
expanding total United States exports. Only in cases where the President
determines that such action would be in the national interest where such
action would clearly and importantly advance United States policy in
such areas as international terrorism, nuclear proliferation,
environmental protection and human rights, should the Export-Import Bank
deny applications for credit for nonfinancial or noncommercial
considerations'' for ``and shall also take into account, in consultation
with the Secretary of State, the observance of and respect for human
rights in the country to receive the exports supported by a loan or
financial guarantee and the effect such exports may have on human rights
in such country''.
Subsec. (b)(1)(C). Pub. L. 95-630, Sec. 1907(a), added subpar. (C).
Subsec. (b)(3). Pub. L. 95-630, Sec. 1902, substituted ``Except as
provided by the fourth sentence of this paragraph, no loan'' for ``No
loan'' and ``$100,000,000'' for ``$60,000,000'' and inserted provisions
following subpar. (B).
Subsec. (b)(7) to (9). Pub. L. 95-630, Secs. 1909, 1915, added a
second par. (7) and par. (8), which were editorially designated pars.
(8) and (9). See 1983 Amendment note above.
Subsec. (c)(1). Pub. L. 95-630, Sec. 1903, substituted
``$25,000,000,000'' for ``$20,000,000,000''.
1977--Subsec. (b)(1)(A). Pub. L. 95-143, Sec. 1, inserted ``and
shall, in cooperation with other appropriate United States Government
agencies, seek to reach international agreements to reduce government
subsidized export financing'' after ``government-supported export
financing''.
Subsec. (b)(1)(B). Pub. L. 95-143, Sec. 2, inserted ``, and shall
also take into account, in consultation with the Secretary of State, the
observance of and respect for human rights in the country to receive the
exports supported by a loan or financial guarantee and the effect such
exports may have on human rights in such country'' after ``employment in
the United States''.
Subsec. (b)(3). Pub. L. 95-143, Sec. 3(a), inserted ``(i)'' after
``No loan or financial guarantee or combination thereof'' and ``, or
(iii) for the export of technology, fuel, equipment, materials, or goods
or services to be used in the construction, alteration, operation, or
maintenance of nuclear power, enrichment, reprocessing, research, or
heavy water production facilities,'' after ``Union of Soviet Socialist
Republics'' and substituted ``, (ii) in an amount'' for ``shall be
finally approved by the Board of Directors of the Bank, and no loan or
financial guarantee or combination thereof''.
Subsec. (b)(4) to (7). Pub. L. 95-143, Sec. 3(b), (c), added par.
(4), redesignated former par. (4) as (5) and, as so redesignated, added
cl. (C), and redesignated former pars. (5) and (6) as (6) and (7),
respectively.
1975--Subsec. (a)(1). Pub. L. 93-646, Sec. 2, inserted provisions
authorizing the Bank to guarantee, insure, coinsure, and reinsure
against political and credit risks of loss, to represent itself or to
contract for representation in all legal and arbitral proceedings
outside the United States, and to publish any documents, reports, etc.,
without regard to section 501 of title 44, whenever compliance with such
section would not be practicable.
Subsec. (a)(2). Pub. L. 93-646, Sec. 13, eff. at the close of Sept.
30, 1976, repealed par. (2), which related to inclusion of receipts and
disbursements of the bank in the federal budget and exemption of such
receipts and disbursements from budget limitations, to the transmittal
to Congress of a budget for program activities and for administrative
expenses of the bank, and to the annual report of the net lending of the
bank.
Subsec. (b)(1). Pub. L. 93-646, Sec. 3, designated existing
provisions as subpars. (A) and (B), and as so designated, substituted
provisions requiring a comparison of the rates and terms of the Bank
with other countries for provisions requiring a report to include ways
in which the Bank's terms are equal to or superior to those of other
countries, and inserted provisions requiring the appointment of a Bank
officer to be responsible for all matters affecting small business, and
to act as liaison with the Small Business Administration and other
agencies in matters affecting small business concerns, in order to carry
out the policy of the Small Business Act.
Subsec. (b)(2). Pub. L. 93-646, Sec. 4, inserted provision requiring
a separate Presidential determination of national interest with respect
to each transaction over $50,000,000, and substituted provision
requiring a report to Congress either within 30 days of the President's
finding or on the day the Bank takes final action on the proposed
credit, whichever is earlier, for provision requiring a report of his
finding to Congress within thirty days after making such finding.
Subsec. (b)(3) to (6). Pub. L. 93-646, Sec. 5, added par. (3) and
redesignated former pars. (3), (4), and (5) as (4), (5) and (6),
respectively.
Subsec. (c)(1). Pub. L. 93-646, Sec. 6, removed the $10 billion
limit on the Bank's insurance authority, and increased the Bank's
authority to charge such guarantees and insurance on a fractional charge
basis from $10 billion to $20 billion.
1971--Subsec. (a). Pub. L. 92-126, Sec. 1(b)(1), designated existing
provisions as par. (1) and added par. (2).
Subsec. (b)(1). Pub. L. 92-126, Sec. 1(b)(6), inserted provisions
declaring the policy of the United States to be to foster expansion of
goods and related services, contributing to the proposition and
maintenance of high levels of employment and real income and to the
increased development of the productive resources of the United States
and laid down directives to achieve this objective.
Subsec. (b)(3). Pub. L. 92-126, Sec. 1(b)(5), substituted provisions
prohibiting the Bank from extending assistance in export sales to any
nation which engages in armed conflict with the United States or to any
other nation when the export is to be used principally by or in any
nation which engages in armed conflict with the United States and
further prohibiting such assistance to any export sales which the
President determines would be contrary to the national interest for
provisions placing limitations on the Bank's activity in connection with
any nation which supplies goods or assistance to a country with whom the
United States is engaged in armed conflict.
Subsec. (c)(1). Pub. L. 92-126, Sec. 1(b)(2), increased the amount
of insurance outstanding at any one time from ``$3,500,000,000'' to
``$10,000,000,000''.
1968--Subsec. (a). Pub. L. 90-267, Sec. 1(a), changed name of
``Export-Import Bank of Washington'' to ``Export-Import Bank of the
United States''.
Subsec. (b)(1). Pub. L. 90-267, Sec. 1(b), designated existing
provisions as par. (1) and required the Board of Directors when
authorizing loans to take into account the possible adverse effects upon
the economy of the United States.
Subsec. (b)(2) to (5). Pub. L. 90-267, Sec. 1(c), added pars. (2) to
(5).
Subsec. (c)(1). Pub. L. 90-267, Sec. 1(a), (c), increased amount of
insurance outstanding at any one time from $2,000,000,000'' to
$3,500,000,000'' and changed name of ``Export-Import Bank of
Washington'' to ``Export-Import Bank of the United States''.
1963--Subsec. (c)(1). Pub. L. 88-101 substituted ``$2,000,000,000''
for ``$1,000,000,000''.
1961--Subsec. (c). Pub. L. 87-311 amended subsection generally, and
among other changes, authorized the Bank to guarantee, insure, coinsure,
and reinsure United States exporters and foreign exporters doing
business in the United States, increased the maximum amount of
insurance, etc., outstanding at any one time to $1,000,000,000, limited
the types of risks the Bank would insure, etc., to political and credit
risks, required reserves to be maintained at not less than 25 per centum
of the related contractual liability of the Bank, provided that for
contracts of insurance, etc., only the Bank's liabilities represented by
the aforementioned reserves shall be considered for purposes of applying
the limitations of section 635e of this title, required the charging of
fees and premiums, and authorized issuance of insurance, etc., to
exporters, insurance companies, financial institutions, or others, and
where appropriate, to employ any of the same as agent, and struck out
provisions authorizing insurance for the benefit of United States
citizens against loss of tangible personal property of United States
origin, exported from the United States, and located in a friendly
country, from hostile or warlike actions including internal strife, or
from governmental confiscation or expropriation, to the extent owned by
the assured or constituting security for obligations owed the assured,
limiting the issuance of insurance to the extent that it could not be
obtained from private companies authorized to do business in the United
States, or from United States Government agencies providing marine or
air war-risk insurance, permitting reinsurance of companies authorized
to do an insurance business in the United States, or to use such company
or companies as agent, and limiting the term of coverage of any
insurance issued to one year, subject to renewals or extensions, from
time to time, of one year periods.
1953--Subsec. (c). Act May 21, 1953, added subsec. (c).
1947--Subsec. (a). Act June 9, 1947, provided for the
reincorporation of the Bank as a corporate agency of the United States
and specifically provided for the following powers which the bank
formerly possessed by implication: (1) to acquire stock through the
enforcement of any lien or pledge or to satisfy an indebtedness; (2) to
sue and be sued, to complain and defend in any court of competent
jurisdiction; (3) to use the United States mails as any other executive
department; and (4) after provision for possible losses to use the net
earnings as dividends on capital stock and to deposit said dividends as
miscellaneous receipts in the Treasury.
1945--Subsec. (a). Act Dec. 28, 1945, inserted ``(or the Philippine
Islands)'' after ``any foreign country''.
Effective and Termination Dates of 1994 Amendments
Section 1(c) of Pub. L. 103-428, as amended by Pub. L. 105-121,
Sec. 4, Nov. 26, 1997, 111 Stat. 2529, provided that: ``The amendments
made by this section [amending this section] shall remain in effect
during the period beginning on the date of enactment of this Act [Oct.
31, 1994] and ending on September 30, 2001.''
[Pub. L. 107-229, Sec. 129, as added by Pub. L. 107-240, Sec. 5,
Oct. 11, 2002, 116 Stat. 1494, provided that: ``Notwithstanding section
1(c) of Public Law 103-428 [set out above], as amended, sections 1(a)
and (b) of Public Law 103-428 [amending this section] shall remain in
effect until the date specified in section 107(c) [Jan. 11, 2003].'']
[For provisions continuing functions of Export-Import Bank of the
United States through June 14, 2002, notwithstanding section 1(c) of
Pub. L. 103-428, set out above, see Continuation of Bank Functions note
set out under section 635f of this title.]
Amendment by Pub. L. 103-236 effective 60 days after Apr. 30, 1994,
see section 831 of Pub. L. 103-236, set out as an Effective Date note
under section 6301 of Title 22, Foreign Relations and Intercourse.
Effective Date of 1978 Amendment
Section 1917 of title XIX of Pub. L. 95-630 provided that: ``This
title [enacting sections 635a-1 to 635a-3 of this title and section
2153e-1 of Title 42, The Public Health and Welfare, and amending this
section and sections 635e to 635g of this title] shall take effect upon
enactment [Nov. 10, 1978].''
Short Title of 2002 Amendment
Pub. L. 107-189, Sec. 1(a), June 14, 2002, 116 Stat. 698, provided
that: ``This Act [enacting section 635i-9 of this title, amending this
section, sections 635a, 635e to 635g, 635i-3, 635i-6, and 635i-8 of this
title, section 5315 of Title 5, Government Organization and Employees,
sections 9 and 11 of the Inspector General Act of 1978, Pub. L. 95-452,
set out in the Appendix to Title 5, and section 1105 of Title 31, Money
and Finance, enacting provisions set out as notes under this section,
sections 635a, 635g, and 635i-9 of this title, and section 5315 of Title
5, and amending provisions set out as a note under this section] may be
cited as the `Export-Import Bank Reauthorization Act of 2002'.''
Short Title of 1997 Amendment
Section 1(a) of Pub. L. 105-121 provided that: ``This Act [amending
this section and sections 635a, 635f, and 635i-3 of this title, enacting
provisions set out as notes under this section and section 635f of this
title, and amending provisions set out as a note under this section] may
be cited as the `Export-Import Bank Reauthorization Act of 1997'.''
Short Title of 1992 Amendment
Section 1(a) of Pub. L. 102-429 provided that: ``This Act [enacting
sections 635i-5 to 635i-7 of this title, section 831 of Title 2, The
Congress, and sections 4727 to 4729 of Title 15, Commerce and Trade,
amending this section and sections 635a, 635b, 635e, 635f, and 635i-3 of
this title, and sections 4052 and 4721 of Title 15, repealing sections
635c, 635i to 635i-2, and 635i-4 of this title, section 713b of Title
15, and section 2772 of Title 22, Foreign Relations and Intercourse, and
enacting provisions set out as notes under this section, section 635a of
this title, and section 4728 of Title 15] may be cited as the `Export
Enhancement Act of 1992'.''
Short Title of 1988 Amendment
Section 3301 of Pub. L. 100-418 provided that: ``This subtitle
[subtitle D (Secs. 3301-3304) of title III of Pub. L. 100-418, amending
this section and section 635i-3 of this title and enacting provisions
set out as a note under section 635i-3 of this title] may be cited as
the `Export-Import Bank and Tied Aid Credit Amendments of 1988'.''
Short Title of 1986 Amendment
Section 1 of Pub. L. 99-472 provided that: ``This Act [enacting
section 635i-3 of this title and section 262h of Title 22, Foreign
Relations and Intercourse, amending this section and sections 635a,
635a-2, 635a-3, and 635e to 635g of this title, and enacting provisions
set out as a note under section 635g of this title] may be cited as the
`Export-Import Bank Act Amendments of 1986'.''
Short Title of 1983 Amendment
Section 601 of title VI of Pub. L. 98-181 provided that: ``This
title [enacting sections 635i-1, 635i-2, and 635o-635t of this title and
section 1671g of Title 19, Customs Duties, amending this section,
sections 635a, 635a-2, 635a-3, 635a-4, 635b, 635e, 635f, and 635g of
this title, and sections 1671a and 1671b of Title 19, and enacting
provisions set out as notes under sections 635a and 635o of this title]
may be cited as the `Export-Import Bank Act Amendments of 1983'.''
For short title of part C (Secs. 641-647) of title VI of Pub. L. 98-
181, which enacted subchapter III (Sec. 635o et seq.) of this chapter
and section 1671g of Title 19 and amended sections 1671a and 1671b of
Title 19, as the ``Trade and Development Enhancement Act of 1983'', see
Short Title note set out under section 635o of this title.
Short Title of 1981 Amendment
Pub. L. 97-35, title III, Sec. 380, Aug. 13, 1981, 95 Stat. 431,
provided that: ``This subtitle [subtitle B (Secs. 380-385) of title III
of Pub. L. 97-35, amending sections 461 and 635e of this title, and
section 369 of former Title 31, Money and Finance, enacting provisions
set out as a note under section 369 of former Title 31, and amending
provisions set out as notes under sections 1735f-7 and 1904 of this
title] may be cited as the `Banking and Related Programs Authorization
Adjustment Act'.''
Short Title of 1978 Amendment
Section 1901 of title XIX of Pub. L. 95-630 provided: ``That this
title [enacting sections 635a-1 to 635a-3 of this title and section
2153e-1 of Title 42, The Public Health and Welfare, amending this
section and sections 635e to 635g of this title, and enacting provisions
set out as a note under this section] may be cited as the `Export-Import
Bank Act Amendments of 1978'.''
Short Title of 1975 Amendment
Section 1 of Pub. L. 93-646 provided that: ``This Act [amending this
section and sections 82 and 635d to 635g of this title and enacting
provisions set out as notes under this section] may be cited as the
`Export-Import Bank Amendments of 1974'.''
Short Title of 1971 Amendment
Section 1(a) of Pub. L. 92-126 provided that: ``This Act [amending
this section and sections 635e and 635f of this title and enacting
provisions set out as notes under section 95a of this title] may be
cited as the `Export Expansion Finance Act of 1971'.''
Short Title
Section 1 of act July 31, 1945, provided: ``That this Act [this
subchapter] may be cited as the `Export-Import Bank Act of 1945'.''
Authority of Secretary of State
Except as otherwise provided, Secretary of State to have and
exercise any authority vested by law in any official or office of
Department of State and references to such officials or offices deemed
to refer to Secretary of State or Department of State, as appropriate,
see section 2651a of Title 22, Foreign Relations and Intercourse, and
section 161(d) of Pub. L. 103-236, set out as a note under section 2651a
of Title 22.
Delegation of Functions
Functions of President under subsec. (b)(6) of this section
delegated to Secretary of State by section 1(s) of Ex. Ord. No. 11958,
Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note under section
2751 of Title 22, Foreign Relations and Intercourse.
Board of Directors
A Board of Directors was reestablished for the Export-Import Bank of
Washington by section 1 of act Aug. 9, 1954, ch. 660, 68 Stat. 677,
amending section 635a of this title. The Board had previously been
abolished and its functions transferred to the Managing Director of the
Bank by Reorg. Plan No. 5 of 1953, eff. June 30, 1953, 18 F.R. 3741, 67
Stat. 637, set out as a note under section 635a of this title. The 1953
Reorg. Plan was superseded by sections 1, 4 of act Aug. 9, 1954. See
section 635a of this title and 1954 Amendment and Effective Date of 1954
Amendment notes thereunder.
History of Bank
The Export-Import Bank of Washington was organized as a District of
Columbia banking corporation under Ex. Ord. No. 6581, Feb. 2, 1934. It
was continued as an agency of the United States by act Jan. 31, 1935,
ch. 2, Sec. 9, 49 Stat. 4, formerly set out as section 713b of Title 15,
Commerce and Trade, as amended by acts Jan. 26, 1937, ch. 6, Sec. 2(a),
50 Stat. 5; Mar. 4, 1939, ch. 5, Sec. 1(b)(c), 53 Stat. 510; Mar. 2,
1940, ch. 34, 54 Stat. 38; Sept. 26, 1940, ch. 734, Sec. 3, 54 Stat.
962, and repealed by section 10 of act July 31, 1945. The Second Export-
Import Bank of Washington, D.C., was established under Ex. Ord. No.
6638, Mar. 9, 1934. Its commitments were transferred to the Export-
Import Bank of Washington and it was abolished by Ex. Ord. No. 7365, May
7, 1936, 1 F.R. 372. The ``Export-Import Bank of Washington'' was
renamed the ``Export-Import Bank of the United States''. See the 1968
Amendment note under this section.
Waiver of Sanctions
Sanctions contained in subsec. (b)(4) waived in certain regards with
respect to India and Pakistan by the following Determinations of the
President, set out as notes under section 2799aa-1 of Title 22, Foreign
Relations and Intercourse:
Determination of President of the United States, No. 2000-4, Oct.
27, 1999, 64 F.R. 60649.
Determination of President of the United States, No. 2000-18, Mar.
16, 2000, 65 F.R. 16297.
GAO Report on Comparative Reserve Practices of Export Credit Agencies
and Private Banks
Pub. L. 107-189, Sec. 14, June 14, 2002, 116 Stat. 705, provided
that: ``Within 1 year after the date of the enactment of this Act [June
14, 2002], the Comptroller General of the United States shall submit to
the Committee on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate a
report that examines the reserve ratios of the Export-Import Bank of the
United States as compared with the reserve practices of private banks
and foreign export credit agencies.''
Reports to Congress
Pub. L. 105-121, Sec. 7(b), Nov. 26, 1997, 111 Stat. 2529, as
amended by Pub. L. 107-189, Sec. 6(c), June 14, 2002, 116 Stat. 700,
provided that: ``Within 6 months after the date of enactment of this Act
[Nov. 26, 1997], and annually for each of the 8 years thereafter, the
Board of Directors of the Export-Import Bank of the United States shall
submit to Congress a report on the steps that the Board has taken to
implement section 2(b)(9)(B) of the Export-Import Bank Act of 1945 [12
U.S.C. 635(b)(9)(B)] and any recommendations of the advisory committee
established pursuant to such section.''
Declaration of Policy
Section 101 of Pub. L. 102-429 provided that: ``The Congress finds
that--
``(1) as the world's largest economy, the United States has an
enormous stake in the future of the global trading system;
``(2) exports are a crucial force driving the United States
economy;
``(3) during 1991, the value of United States exports increased
by 7.1 percent from the 1990 level to $421,600,000,000, supporting
more than 7,000,000 full-time United States jobs, and affecting the
lives of all of the people of the United States;
``(4) exports also support the global strategic position of the
United States;
``(5) a significant part of a country's influence is drawn from
the reputation of its goods, its industrial connections with other
countries, and the capital it has available for investment, and
trade finance is a critical component of this equation;
``(6) the growth in United States exports has increased the
demand for financing from the Export-Import Bank of the United
States;
``(7) during 1991, the value of exports assisted by the Export-
Import Bank rose 28.7 percent, from $9,700,000,000 to
$12,100,000,000, the highest level since 1981;
``(8) the Export-Import Bank used its entire budget authority
provided for 1991, and still could not meet all of the demand for
its financing assistance; and
``(9) accordingly, the charter of the Export-Import Bank, which
is scheduled to expire on September 30, 1992, must be renewed in
order that the Bank continue to arrange competitive and innovative
financing for the foreign sales of United States exporters.''
Report on Financing of Services
Section 119 of Pub. L. 102-429 directed Export-Import Bank of the
United States, not later than 1 year after Oct. 21, 1992, to submit a
report to Congress on ways of facilitating the export financing of high
technology services.
Report on Demand for Trade Finance for the Baltic States, the
Independent States of the Former Soviet Union, and Central and Eastern
Europe
Section 120 of Pub. L. 102-429 directed Export-Import Bank, not
later than 1 year after Oct. 21, 1992, to transmit to Congress a report
analyzing present and future demand for loans, guarantees, and insurance
for trade between the United States and the Baltic States, between the
United States and the independent States of the former Soviet Union, and
between the United States and Central and Eastern Europe, and to make
recommendations regarding the adequacy of financing for trade between
the United States and such countries.
Export-Import Programs to People's Republic of China Prohibited Unless
Certain Conditions Met
Section 103 of Pub. L. 101-240 provided that:
``(a) Notwithstanding any other provision of law and subject to the
provisions of subsections (b) and (c), the Export-Import Bank of the
United States shall not finance any trade with, nor extend any loan,
credit, credit guarantee, insurance or reinsurance to the People's
Republic of China.
``(b) The prohibitions described in subsection (a) of this section
shall not apply to food or agricultural commodities.
``(c) The President may waive the prohibitions in subsection (a) if
he makes a report to Congress either--
``(1) that the Government of the People's Republic of China has
made progress on a program of political reform throughout the
country, as well as in Tibet, which includes--
``(A) lifting of martial law;
``(B) halting of executions and other reprisals against
individuals for the nonviolent expression of their political
beliefs;
``(C) release of political prisoners;
``(D) increased respect for internationally recognized human
rights, including freedom of expression, the press, assembly,
and association; and
``(E) permitting a freer flow of information, including an
end to the jamming of Voice of America and greater access for
foreign journalists; or
``(2) it is in the national interest of the United States to
terminate a suspension under subsection (a).''
Export-Import Bank Programs for Poland and Hungary
Pub. L. 101-179, title III, Sec. 303, Nov. 28, 1989, 103 Stat. 1312,
provided that:
``(a) Authority to Extend Credit to Poland and Hungary.--
Notwithstanding section 2(b)(2) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(b)(2)), the Export-Import Bank of the United States may
guarantee, insure, finance, extend credit, and participate in the
extension of credit in connection with the purchase or lease of any
product by the Republic of Hungary or any agency or national thereof or
by the Polish People's Republic or any agency or national thereof.
``(b) Private Financial Intermediaries to Facilitate Exports to
Poland.--Consistent with the provisions of the Export-Import Bank Act of
1945 (12 U.S.C. 635 and following), the Export-Import Bank of the United
States shall work with private financial intermediaries in Poland to
facilitate the export of goods and services to Poland.''
Restrictions on Loans
Section 12 of Pub. L. 93-646 provided that, until Jan. 3, 1975, no
loan, guarantee, insurance, or credit could be extended by the Export-
Import Bank of the United States to the Union of Soviet Socialist
Republics.
Ex. Ord. No. 12166. Delegation of Function of President Relating to
Application for Credit to Secretary of State
Ex. Ord. No. 12166, Oct. 19, 1979, 44 F.R. 60971, provided:
By the authority vested in me as President of the United States of
America by Section 2(b)(1)(B) of the Export-Import Bank Act of 1945, as
amended (12 U.S.C. 635(b)(1)(B)), and by Section 301 of Title 3 of the
United States Code, it is hereby ordered as follows:
1-101. The function vested in the President by Section 2(b)(1)(B) of
the Export-Import Bank Act of 1945, as amended (12 U.S.C. 635(b)(1)(B)),
is delegated to the Secretary of State. That function is the authority
to determine that a denial by the Export-Import Bank of an application
for credit would be in the national interest, where such action could
clearly and importantly advance United States policy in such areas as
international terrorism, nuclear proliferation, environmental protection
and human rights.
1-102. Before making such a determination, the Secretary of State
shall consult with the Secretary of Commerce and the heads of other
interested Executive agencies.
1-103. In accord with Section 2(b)(1)(B) of that Act, only in those
cases where the Secretary of State has made such a determination should
the Export-Import Bank deny an application for credit for nonfinancial
or noncommercial considerations.
Jimmy Carter.
Section Referred to in Other Sections
This section is referred to in sections 635a, 635g, 635i-5, 635j,
635m of this title; title 22 sections 2184, 2185, 2357.
