12 U.S.C. § 635 — Powers and functions of Bank

Page 198 TITLE 12—BANKS AND BANKING § 635 (1) an act of war, insurrection, or civil strife; or (2) an action by a foreign government or in- strumentality (whether de jure or de facto) in the country in which the branch is located; unless the member bank has expressly agreed in writing to repay the deposit under those cir- cumstances. (b) Regulations The Board and the Comptroller of the Cur- rency may jointly prescribe such regulations as they deem necessary to implement this section. (Dec. 23, 1913, ch. 6, § 25C, as added Pub. L. 103–325, title III, § 326(a), Sept. 23, 1994, 108 Stat. 2229.) Editorial Notes CODIFICATION Section was enacted as section 25C of the Federal Re- serve Act, and not as part of section 25A of that Act which comprises this subchapter. Statutory Notes and Related Subsidiaries EXISTING CLAIMS NOT AFFECTED Pub. L. 103–325, title III, § 326(c), Sept. 23, 1994, 108 Stat. 2229, provided that: ‘‘Section 25C of the Federal Reserve Act [this section] (as added by subsection (a)) shall not be applied retroactively and shall not be con- strued to affect or apply to any claim or cause of action addressed by that section arising from events or cir- cumstances that occurred before the date of enactment of this Act [Sept. 23, 1994].’’ CHAPTER 6A—EXPORT-IMPORT BANK OF THE UNITED STATES SUBCHAPTER I—GENERAL PROVISIONS Sec. 635. Powers and functions of Bank. 635a. Management of Bank. 635a–1. Export credit competition. 635a–2. Implementation of regulations and proce- dures to lessen adverse effect of loans and guarantees on industries in United States; report by United States International Trade Commission; written consideration of views of adversely affected parties. 635a–3. Export-Import Bank financing to match for- eign financing. 635a–4. Guarantees for export accounts receivable and inventory. 635a–5. Negotiations to end export credit financing. 635a–6. Periodic audits of bank transactions. 635a–7. Independent audit of bank portfolio. 635b. Capitalization of Bank; method of capital stock payments; public-debt transactions; issuance of stock certificates. 635c. Repealed. 635d. Issuance of debentures, bonds, etc.; obliga- tions redeemable; payment of interest; obli- gations purchasable by Secretary of the Treasury; public-debt transactions. 635e. Aggregate loan, guarantee, and insurance au- thority. 635f. Termination date of Bank’s functions; excep- tions; liquidation. 635g. Report to Congress; time for submission; con- tents. 635g–1. Annual competitiveness report. 635h. Exemption from prohibition of section 955 of title 18. 635i to 635i–2. Repealed. 635i–3. Tied Aid Credit Fund and program. Sec. 635i–4. Repealed. 635i–5. Environmental policy and procedures. 635i–6. Debt reduction; Enterprise for the Americas Initiative. 635i–7. Cooperation on export financing programs. 635i–8. Special debt relief for poorest, most heavily indebted countries. 635i–9. Market windows. SUBCHAPTER II—EXPORT FINANCING 635j. Export financing program to foster foreign trade and commercial interest of the United States. 635k. Apportionment of losses incurred on loans, guarantees, and insurance; reimbursement; contingent obligations. 635l. Authorization for appropriation of funds for losses. 635m. Loans, guarantees, and insurance subject to the provisions of this chapter. 635n. Prohibition of loans, guarantees, and insur- ance as to sales of defense articles or serv- ices. SUBCHAPTER III—TIED AID CREDIT EXPORT SUBSIDIES 635o. Congressional statement of purpose. 635p. Presidential mandate to negotiate; objec- tives. 635q. Establishment of tied aid credit program in United States Export-Import Bank. 635r. Establishment of tied aid credit program ad- ministered by Trade and Development Agency. 635s. Implementation. 635t. Definitions. SUBCHAPTER I—GENERAL PROVISIONS § 635. Powers and functions of Bank (a) General banking business; use of mails; publi- cation of documents, reports, contracts, etc.; use of assets and allocated or borrowed money; payment of dividends; medium-term financing; dissemination of information; en- hancement 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 ex- ports of goods and services, imports, and the ex- change of commodities and services between the United States or any of its territories or insular possessions and any foreign country or the agen- cies 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 work- ers. In connection with and in furtherance of its objects and purposes, the bank is authorized and empowered to do a general banking business ex- cept that of circulation; to receive deposits; to purchase, discount, rediscount, sell, and nego- tiate, with or without its endorsement or guar- anty, and to guarantee notes, drafts, checks, bills of exchange, acceptances, including bank- ers’ acceptances, cable transfers, and other evi- dences of indebtedness; to guarantee, insure, co- insure, and reinsure against political and credit risks of loss; to purchase, sell, and guarantee se- curities but not to purchase with its funds any Page 199 TITLE 12—BANKS AND BANKING § 635 stock in any other corporation except that it may acquire any such stock through the en- forcement 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 as- sociation; 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 fore- going 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 ob- jects and purposes without regard to the provi- sions of section 501 of title 44 whenever the Bank determines that publication in accordance with the provisions of such section would not be prac- ticable. 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 al- located to or borrowed by it in the exercise of its functions. Net earnings of the bank after rea- sonable 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 ex- ports, 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 inter- national agreements; (ii) in amounts up to 85 percent of the total cost of the exports involved; and (iii) with principal amounts of not more than $25,000,000; and (B) enables the Bank to cooperate fully with the Secretary of Commerce and the Adminis- trator of the Small Business Administration to develop a program for purposes of dissemi- nating information (using existing private in- stitutions) to small business concerns regard- ing 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 com- petitive with that of other major official ex- port credit agencies; (B) ease the administrative burdens and pro- cedural and documentary requirements im- posed 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 financ- ing as supportive of United States exports as is its Direct Loan Program. (b) Guarantees, insurance, and extension of cred- it functions; competitive with Government- supported rates and terms and conditions of foreign exporting countries; survey and re- port; interest rates; private capital encour- agement; national interest determinations; delivery of United States services in inter- national commerce; small business concern encouragement; coverage of losses by For- eign Credit Insurance Association; loans to Union of Soviet Socialist Republics for fossil fuel research, etc.; nuclear safeguards viola- tions resulting in limitations on exports and credit; defense article credit sales to less de- veloped countries; amount outstanding; sup- plementation of Commodity Credit Corpora- tion 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 pro- motion and maintenance of high levels of em- ployment and real income, a commitment to re- investment 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 guar- antees, insurance, and extensions of credit at rates and on terms and other conditions which are fully competitive with the Government-sup- ported 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, including countries the governments of which are not members of the Arrangement (as defined in section 635i–3(h)(3) of this title). 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 agree- ments to reduce government subsidized export financing. (B) It is further the policy of the United States that loans made by the Bank in all its programs Page 200 TITLE 12—BANKS AND BANKING § 635 1 See References in Text note below. 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 coun- tries, and consistent with international agree- ments. For the purpose of the preceding sen- tence, 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 condi- tions 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 competi- tion. The Bank shall consider its average cost of money as one factor in its determination of in- terest rates, where such consideration does not impair the Bank’s primary function of expand- ing United States exports through fully com- petitive financing. The Bank may not impose a credit application fee unless (i) the fee is com- petitive 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 func- tions 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 insur- ance 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 accord- ance with the requirements of the Federal Cred- it Reform Act of 1990 [2 U.S.C. 661 et seq.]; that the Bank shall accord equal opportunity to ex- port agents and managers, independent export firms, export trading companies, and small com- mercial banks in the formulation and implemen- tation of its programs; that the Bank should give emphasis to assisting new and small busi- ness entrants in the agricultural export market, and shall, in cooperation with other relevant Government agencies, including the Commodity Credit Corporation, develop a program of edu- cation to increase awareness of export opportu- nities among small agribusinesses and coopera- tives; that loans, so far as possible consistent with the carrying out of the purposes of sub- section (a), shall generally be for specific pur- poses, and, in the judgment of the Board of Di- rectors, offer reasonable assurance of repay- ment; and that in authorizing any loan or guar- antee, the Board of Directors shall take into ac- count 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 expand- ing 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 Bank- ing, Housing, and Urban Affairs of the Senate, determines that such action would be in the na- tional interest where such action would clearly and importantly advance United States policy in such areas as international terrorism (includ- ing, when relevant, a foreign nation’s lack of co- operation in efforts to eradicate terrorism), nu- clear proliferation, the enforcement of the For- eign Corrupt Practices Act of 1977, the Arms Ex- port 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 Adminis- tration Act of 1979, environmental protection and human rights (such as are provided in the Universal Declaration of Human Rights adopted by the United Nations General Assembly on De- cember 10, 1948) (including child labor), should the Export-Import Bank deny applications for credit for nonfinancial or noncommercial con- siderations. 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 de- velopment, production, and distribution of non- nuclear renewable energy resources, dissemi- nating information concerning export opportu- nities 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. (D) It is further the policy of the United States to foster the delivery of United States services in international commerce. In exer- cising 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 sub- sidized 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 (including women-owned businesses, minority-owned businesses, veteran-owned busi- nesses, businesses owned by persons with dis- abilities, and businesses in rural areas) and start-up businesses in international commerce, and to educate such businesses about how to ex- port goods using the Bank. (II) In exercising its authority, the Bank shall develop a program which gives fair consider- ation 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, as- Page 201 TITLE 12—BANKS AND BANKING § 635 sist, and protect, insofar as is possible, the in- terests 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 affect- ing small business concerns; and (II) among other duties, shall be responsible for advising small business concerns of the op- portunities for small business concerns in the functions of the Bank, with particular empha- sis on conducting outreach and increasing loans to socially and economically disadvan- taged 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 con- cerns (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 finan- cial 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 avail- able 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 30 percent of such authority for each fiscal year. From the amount made available under the preceding sentence, it shall be a goal of the Bank to increase the amount made available to finance exports directly by small business con- cerns referred to in section 635a(i)(1) of this title. For the purpose of calculating the amounts of authority required under this clause, the Bank shall, with respect to insurance, ex- clude unutilized authorizations that terminated during the 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 financ- ing for the particular transaction was dis- approved by any other Federal agency. (vii)(I) The Bank shall utilize a part of the amount set aside pursuant to clause (v) to pro- vide lines of credit or guarantees to consortia of small or medium size banks, export trading companies, State export finance agencies, ex- port financing cooperatives, small business in- vestment companies (as defined in section 662 of title 15), or other financing institutions or enti- ties 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 or other fi- nancing institutions or entities 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 partici- pating 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 pro- mote small business exports and its small busi- ness export financing programs in cooperation with the Secretary of Commerce, the Office of International Trade of the Small Business Ad- ministration, and the private sector, particu- larly small business organizations, State agen- cies, chambers of commerce, banking organiza- tions, export management companies, export trading companies, and private industry. (ix) The Bank shall provide, through credit- worthy trade associations, export trading com- panies, State export finance companies, export finance cooperatives, and other multiple-ex- porter organizations, medium-term risk protec- tion coverage for the members and clients of such organizations. Such coverage shall be made available to each such organization under a sin- gle risk protection policy covering its members or clients. Nothing in this provision shall be in- terpreted as limiting the Bank’s authority to deny support for specific transactions or to dis- approve a request by such an organization to participate in such coverage. (x) The Bank shall implement technology im- provements 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 Insur- ance 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-, me- dium-, and short-term financing, guarantees, and insurance provided by the Bank shall not be denied solely because the entity seeking partici- pation 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 ex- port 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 tran- sition to market based economies, including eli- gible East European countries (within the mean- ing of section 5402 of title 22). (iii) As part of the ongoing marketing and out- reach efforts of the Bank, the Bank shall, to the maximum extent practicable, inform high tech- nology companies, particularly small business Page 202 TITLE 12—BANKS AND BANKING § 635 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 ex- port 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 ef- forts. (I) The President of the Bank shall undertake efforts to enhance the Bank’s capacity to pro- vide information about the Bank’s programs to small and rural companies which have not pre- viously participated in the Bank’s programs. Not later than 1 year after November 26, 1997, the President of the Bank shall submit to Con- gress a report on the activities undertaken pur- suant to this subparagraph. (J) The Bank shall implement an electronic system designed to track all pending trans- actions of the Bank. (K) The Bank shall promote the export of goods and services related to renewable energy sources, energy efficiency (including battery electric vehicles, batteries for electric vehicles, and electric vehicle charging infrastructure), and energy storage. It shall be a goal of the Bank to ensure that not less than 5 percent of the applicable amount (as defined in section 635e(a)(2) of this title) is made available each fis- cal year for the financing of renewable energy, energy efficiency (including battery electric ve- hicles, batteries for electric vehicles, and elec- tric vehicle charging infrastructure), and energy storage technology exports. (L) The Bank shall require an applicant for as- sistance from the Bank to disclose whether the applicant has been found by a court of the United States to have violated the Foreign Cor- rupt Practices Act of 1977, the Arms Export Con- trol Act [22 U.S.C. 2751 et seq.], the Inter- national Emergency Economic Powers Act [50 U.S.C. 1701 et seq.], or the Export Administra- tion Act of 1979 within the preceding 12 months, and shall maintain, in cooperation with the De- partment of Justice, for not less than 3 years a record of such applicants so found to have vio- lated any such Act. (M) Not later than 2 years after December 4, 2015, the Bank shall implement policies— (i) to accept electronic documents with re- spect to transactions whenever possible, in- cluding copies of bills of lading, certifications, and compliance documents, in such manner so as not to undermine any potential civil or criminal enforcement related to the trans- actions; and (ii) to accept electronic payments in all of its programs. (2) PROHIBITION ON AID TO MARXIST-LENINIST COUNTRIES.— (A) IN GENERAL.—The Bank in the exercise of its functions shall not guarantee, insure, ex- tend 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 para- graph, the term ‘‘Marxist-Leninist country’’ means any country that maintains a cen- trally planned economy based on the prin- ciples of Marxism-Leninism, or is economi- cally and militarily dependent on any other such country. (ii) SPECIFIC COUNTRIES DEEMED TO BE MARXIST-LENINIST.—Unless otherwise deter- mined by the President in accordance with subparagraph (C), the following countries are deemed to be Marxist-Leninist countries for purposes of this paragraph: (I) Democratic People’s Republic of Korea. (II) Democratic Republic of Afghanistan. (III) People’s Republic of China. (IV) Republic of Cuba. (V) Socialist Republic of Vietnam. (VI) Tibet. (C) PRESIDENTIAL DETERMINATION THAT A COUNTRY HAS CEASED TO BE MARXIST-LEN- INIST.—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 pur- poses of this paragraph after the date of such determination, unless the President subse- quently 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 exten- sions 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 Page 203 TITLE 12—BANKS AND BANKING § 635 (II) the date the Bank takes final action with respect to the first transaction in- volving 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 coun- try, agency, or national was made and re- ported 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 ex- port of technology, fuel, equipment, materials, or goods or services to be used in the construc- tion, alteration, operation, or maintenance of nuclear power, enrichment, reprocessing, re- search, or heavy water production facilities, shall be finally approved by the Board of Direc- tors 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 ex- plaining the transaction, at least 25 days of con- tinuous session of the Congress prior to the date of final approval. For the purpose of the pre- ceding 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 be- cause of an adjournment of more than 3 days to a day certain shall be excluded in the computa- tion of the 25 day period referred to in such sen- tence. Such statement shall contain— (A) in the case of a loan or financial guar- antee— (i) a brief description of the purposes of the transaction; (ii) the identity of the party or parties re- questing 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 pur- pose of the facility; (II) the total amount of guarantees or in- surance; 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 ap- proximate rate and repayment terms at which such loan will be made available and the ap- proximate amount of the financial guarantee. If the Bank submits a statement to the Congress under this paragraph and either House of Con- gress 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, sub- ject 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 para- graph 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 Inter- national Atomic Energy Agency nuclear safe- guards materially violates, abrogates, or ter- minates, after October 26, 1977, such safe- guards; (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 ter- minates, 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-weap- on state detonates, after October 26, 1977, a nu- clear 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 ma- terial; or (v) any person knowingly aids or abets, after September 23, 1996, any non-nuclear-weapon state to acquire any such nuclear explosive de- vice or to acquire unsafeguarded special nu- clear material, then the Secretary of State shall submit a re- port to the appropriate committees of the Con- gress 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 deter- mination under subparagraph (A)(v) with re- spect 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 gov- ernment may be pursued, the Board of Directors of the Bank shall delay imposition of the prohi- bition contained in subparagraph (C) for up to 90 days if the Secretary of State requests the Board to make such delay. Following these con- sultations, the prohibition contained in subpara- graph (C) shall apply immediately unless the Secretary determines and certifies to the Con- gress that that government has taken specific and effective actions, including appropriate pen- alties, to terminate the involvement of the for- eign person in the activities described in sub- paragraph (A)(v). The Board of Directors of the Bank shall delay the imposition of the prohibi- tion 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 Page 204 TITLE 12—BANKS AND BANKING § 635 Secretary determines and certifies to the Con- gress 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 de- termination under subparagraph (A)(v), the Sec- retary of State shall submit to the appropriate committees of the Congress a report on the sta- tus of consultations with the appropriate gov- ernment 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 ex- tend 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 sub- paragraph (A) regarding any specific event de- scribed in such clause if the President deter- mines 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 determina- tion 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 fol- lowing 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 inter- ests. (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 per- son as well as a corporation, business associa- tion, 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 Nu- clear 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 nu- clear 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 informa- tion by a national or agency of any nation which engages in armed conflict, declared or other- wise, with the Armed Forces of the United States, (B) the purchase by any nation (or na- tional or agency thereof) of any product, tech- nical data, or other information which is to be used principally by or in any such nation de- scribed 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 connec- tion with the purchase of any product, technical data, or other information by a national or agency of any nation if the President deter- mines that any such transaction would be con- trary 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 de- fense articles and defense services to any coun- try. (B) Subparagraph (A) shall not apply to any sale of defense articles or services if— (i) the Bank is requested to provide a guar- antee or insurance for the sale; (ii) the President determines that the de- fense articles or services are being sold pri- marily 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, notwith- standing the provision of a guarantee or insur- ance for the sale, not more than 5 percent of the guarantee and insurance authority avail- able to the Bank in any fiscal year will be used by the Bank to support the sale of de- fense articles or services. (C) In determining whether a sale of defense articles or services would be in the national in- terest of the United States, the President shall take into account whether the sale would— (i) be consistent with the anti-narcotics pol- icy of the United States; (ii) involve the end use of a defense article or service in a major illicit drug producing or Page 205 TITLE 12—BANKS AND BANKING § 635 major drug-transit country (as defined in sec- tion 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 na- tional interest of the United States for the Bank to provide such guarantee or insurance; (II) the President determines, after consulta- tion 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 pro- vided under subparagraph (B), and has not used any such defense articles or services to engage in a consistent pattern of gross viola- tions of internationally recognized human rights; and (III) such determinations have been reported to the Speaker and the Committee on Finan- cial Services of the House of Representatives, and to the Committee on Banking, Housing, and Urban Affairs and the Committee on For- eign Relations of the Senate, not less than 25 days of continuous session of the Congress be- fore 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 ex- cluded 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 govern- ments which engage in a consistent pattern of gross violations of internationally recognized human rights). (F) To the extent that defense articles or serv- ices for which a guarantee or insurance is pro- vided under subparagraph (B) are used for a pur- pose 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 pro- gram) 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 Muni- tions List (part 121 of title 22 of the Code of Fed- eral Regulations). (H) Once in each calendar quarter, the Bank shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Sen- ate, 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 par- ticipated in an extension of credit in connection with any credit sale of an article, service, or re- lated 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 serv- ices if— (I) the Bank determines that— (aa) the defense articles or services are nonlethal; and (bb) the primary end use of the defense ar- ticles or services will be for civilian pur- poses; 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 Finan- cial 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, guar- antee, 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 sub- mit to the Committees on Financial Services and on Appropriations of the House of Rep- resentatives and the Committees on Banking, Housing, and Urban Affairs and on Appropria- tions 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 pro- vided support during the second preceding fiscal year. (7) In no event shall the Bank have out- standing at any time in excess of 71⁄2 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 com- pete 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 Gov- ernment subsidized export financing. In order to carry out the purposes of this subsection, the Page 206 TITLE 12—BANKS AND BANKING § 635 Bank shall consult with the Secretary of Agri- culture and where the Secretary of Agriculture has recommended against Bank financing of the export of a particular agricultural commodity, shall take such recommendation into consider- ation 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 Coordi- nating Committee, take prompt measures, con- sistent with the credit standards otherwise re- quired 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 im- plementation of policies and programs designed to support the expansion described in subpara- graph (A). (ii) The advisory committee shall make rec- ommendations 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 the date on which the authority of the Bank expires under section 635f of this title. (C) The Bank shall include in the annual re- port to the Congress submitted under section 635g(a) of this title a separate section that con- tains a report on the efforts of the Bank to— (i) improve its working relationships with the African Development Bank, the African Export-Import Bank, and other institutions in the region that are relevant to the purposes of subparagraph (A) of this paragraph; and (ii) coordinate closely with the United States Foreign Service and Foreign Commer- cial Service, and with the overall strategy of the United States Government for economic engagement with Africa pursuant to the Afri- can Growth and Opportunity Act [19 U.S.C. 3701 et seq.]. (D) Consistent with the requirement that the Bank obtain a reasonable assurance of repay- ment in connection with each transaction the Bank supports, the Bank shall, in consultation with the entities described in subparagraph (C), seek to qualify a greater number of appropriate African entities for participation in programs of the Bank. (10)(A) The Bank shall not, without a specific authorization by law, guarantee, insure, or ex- tend 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 inter- national indebtedness, other than its out- standing 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 connec- tion with any export of any good (other than food or an agricultural commodity) or service to the People’s Republic of Angola until the Presi- dent 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 mili- tary and security forces in political violence and abuses of internationally recognized human rights; (ii) vigorously prosecuting persons en- gaged in political violence who are con- nected 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 re- spect to Angola that is more restrictive than any requirement imposed by this section gen- erally on all other countries. (12) PROHIBITION RELATING TO RUSSIAN TRANS- FERS OF CERTAIN MISSILE SYSTEMS.—If the Presi- dent of the United States determines that the military or Government of the Russian Federa- tion 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, in- sure, extend credit, or participate in the exten- sion of credit in connection with the purchase of any good or service by the military or Govern- ment of the Russian Federation. (13) PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY CONNECTIONS AND Page 207 TITLE 12—BANKS AND BANKING § 635 RAILWAY-RELATED CONNECTIONS.—The Bank shall not guarantee, insure, or extend (or participate in the extension of) credit in connection with the export of any good or service relating to the development or promotion of any railway con- nection or railway-related connection that does not traverse or connect with Armenia and does traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey. (c) Guarantees, insurance, coinsurance, and rein- surance functions; fractional charge; aggre- gate outstanding amount; fees and pre- miums; 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 con- tractual liability that the Bank incurs for guar- antees, insurance, coinsurance, and reinsurance against political and credit risks of loss. (2) The Bank may issue such guarantees, in- surance, coinsurance, and reinsurance to or with exporters, insurance companies, financial insti- tutions, 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 reinsur- ance, 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 guar- antee program provided for in this subsection, the Bank may provide up to 100 percent cov- erage of the interest and principal if the Board of Directors determines such coverage to be necessary to ensure acceptance of Bank guar- antees by financial institutions for any trans- action 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 $25,000,000, the Bank shall seek to ensure that United States in- surance 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 oppor- tunity is not accorded to any United States in- surance company in a foreign country with re- spect to which the Bank is considering a loan or guarantee, the Bank— (A) may approve or deny the loan or guar- antee 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 in- surance 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 ex- port credit of the United States should be re- stricted. (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 com- panies, the Bank shall include notice of such ap- proval and the reason for such approval in the report on competition in officially supported ex- port credit required under subsection (b)(1)(A). (5) DEFINITIONS.—For purposes of this sec- tion— (A) the term ‘‘United States insurance com- pany’’— (i) includes an individual, partnership, cor- poration, 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 busi- ness of issuing insurance contracts or rein- suring 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 op- portunity’’ means, with respect to the provi- sion 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 oppor- tunity on a nondiscriminatory basis. (e) Limitation on assistance which adversely af- fects the United States (1) In general The Bank may not extend any direct credit or financial guarantee for establishing or ex- panding production of any commodity for ex- port by any country other than the United States, if— (A) the Bank determines that— (i) the commodity is likely to be in sur- plus on world markets at the time the re- sulting commodity will first be sold; or (ii) the resulting production capacity is expected to compete with United States production of the same, similar, or com- peting commodity; and (B) the Bank determines that the exten- sion of such credit or guarantee will cause substantial injury to United States pro- ducers of the same, similar, or competing commodity. In making the determination under subpara- graph (B), the Bank shall determine whether Page 208 TITLE 12—BANKS AND BANKING § 635 the facility that would benefit from the exten- sion of a credit or guarantee is reasonably likely to produce a commodity in addition to, or other than, the commodity specified in the application and whether the production of the additional commodity may cause substantial injury to United States producers of the same, or a 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 pro- duction 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 determina- tion 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 in- crease in imports of substantially the same product covered by the preliminary deter- mination and are likely to not have a sig- nificant adverse impact on the domestic in- dustry. The Bank shall report to the Com- mittee 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 pro- cedures. (C) Comment period The Bank shall establish procedures under which the Bank shall notify interested par- ties and provide a comment period of not less than 14 days (which, on request of any affected party, shall be extended to a period of not more than 30 days) 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 para- graph (1) for a transaction involving more than $10,000,000, the Bank shall consider in- vestigations under title II of the Trade Act of 1974 that have been initiated at the re- quest 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. (E) Anti-circumvention The Bank shall not provide a loan or guar- antee if the Bank determines that providing the loan or guarantee will facilitate cir- cumvention of an order or determination re- ferred to in subparagraph (A). (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, simi- lar, or competing commodity. (4) Definition For purposes of paragraph (1)(B), the exten- sion 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 ex- panded, by such credit or guarantee equals or exceeds 1 percent of United States production. (5) Designation of sensitive commercial sectors and products Not later than 120 days after December 20, 2006, the Bank shall submit a list to the Com- mittee on Banking, Housing, and Urban Af- fairs of the Senate and the Committee on Fi- nancial Services of the House of Representa- tives, which designates sensitive commercial sectors and products with respect to which the provision of financing support by the Bank is deemed unlikely by the President of the Bank due to the significant potential for a deter- mination that such financing support would result in an adverse economic impact on the United States. The President of the Bank shall review on an annual basis thereafter the list of sensitive commercial sectors and products and the Bank shall submit an updated list to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representa- tives of such sectors and products. (6) Financial threshold determinations For purposes of determining whether a pro- posed transaction exceeds a financial thresh- old under this subsection or under the proce- dures or rules of the Bank, the Bank shall ag- gregate the dollar amount of the proposed transaction and the dollar amounts of all loans and guarantees, approved by the Bank in the preceding 24-month period, that involved the same foreign entity and substantially the same product to be produced. (7) Procedures to reduce adverse effects of loans and guarantees on industries and employment in United States (A) Consideration of economic effects of pro- posed transactions If, in making a determination under this paragraph with respect to a loan or guar- antee, the Bank conducts a detailed eco- nomic impact analysis or similar study, the analysis or study, as the case may be, shall include consideration of— (i) the factors set forth in subparagraphs (A) and (B) of paragraph (1); and (ii) the views of the public and interested parties. (B) Notice and comment requirements (i) In general If, in making a determination under this subsection with respect to a loan or guar- Page 209 TITLE 12—BANKS AND BANKING § 635 antee, the Bank intends to conduct a de- tailed economic impact analysis or similar study, the Bank shall publish in the Fed- eral Register a notice of the intent, and provide a period of not less than 14 days (which, on request by any affected party, shall be extended to a period of not more than 30 days) for the submission to the Bank of comments on the economic effects of the provision of the loan or guarantee, including comments on the factors set forth in subparagraphs (A) and (B) of para- graph (1). In addition, the Bank shall seek comments on the economic effects from the Department of Commerce, the Office of Management and Budget, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Finan- cial Services of the House of Representa- tives. (ii) Content of notice The notice shall include appropriate, nonproprietary information about— (I) the country to which the goods in- volved in the transaction will be shipped; (II) the type of goods being exported; (III) the amount of the loan or guar- antee involved; (IV) the goods that would be produced as a result of the provision of the loan or guarantee; (V) the amount of increased production that will result from the transaction; (VI) the potential sales market for the resulting goods; and (VII) the value of the transaction. (iii) Procedure regarding materially changed applications (I) In general If a material change is made to an ap- plication for a loan or guarantee from the Bank after a notice with respect to the intent described in clause (i) is pub- lished under this subparagraph, the Bank shall publish in the Federal Register a revised notice of the intent, and shall provide for a comment period, as pro- vided in clauses (i) and (ii). (II) Material change defined As used in subclause (I), the term ‘‘ma- terial change’’, with respect to an appli- cation, includes— (aa) a change of at least 25 percent in the amount of a loan or guarantee re- quested in the application; and (bb) a change in the principal prod- uct to be produced as a result of any transaction that would be facilitated by the provision of the loan or guar- antee. (C) Requirement to address views of ad- versely affected persons Before taking final action on an applica- tion for a loan or guarantee to which this section applies, the staff of the Bank shall provide in writing to the Board of Directors the views of any person who submitted com- ments pursuant to subparagraph (B). (D) Publication of conclusions Within 30 days after a party affected by a final decision of the Board of Directors with respect to a loan or guarantee makes a writ- ten request therefor, the Bank shall provide to the affected party a non-confidential sum- mary of the facts found and conclusions reached in any detailed economic impact analysis or similar study conducted pursu- ant to subparagraph (B) with respect to the loan or guarantee, that were submitted to the Board of Directors. (E) Maintenance of documentation The Bank shall maintain documentation relating to economic impact analyses and similar studies conducted under this sub- section in a manner consistent with the Standards for Internal Control of the Fed- eral Government issued by the Comptroller General of the United States. (F) Rule of interpretation This paragraph shall not be construed to make subchapter II of chapter 5 of title 5 ap- plicable to the Bank. (G) Regulations The Bank shall implement such regula- tions and procedures as may be appropriate to carry out this paragraph. (f) Authority to deny application for assistance based on fraud or corruption by party in- volved in the transaction In addition to any other authority of the Bank, the Bank may deny an application for as- sistance 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, and shall deny an application for assistance if the end user, borrower, lender, or exporter has been convicted of an act of fraud or corruption in connection with an application for support from the Bank made in the preceding 5 years. The Bank may proceed with an applica- tion described in this subsection only if an end user, borrower, lender, or exporter can be fully excluded from the transaction. (g) Process for notifying applicants of applica- tion status The Bank shall establish and adhere to a clearly defined process for— (1) acknowledging receipt of applications; (2) informing applicants that their applica- tions are complete or, if incomplete or con- taining a minor defect, of the additional mate- rial or changes that, if supplied or made, would make the application eligible for con- sideration; and (3) keeping applicants informed of the status of their applications, including a clear and timely notification of approval or disapproval, and, in the case of disapproval, the reason for disapproval, as appropriate. (h) Response to application for financing; imple- mentation of online loan request and track- ing process (1) Response to applications Within 5 days after the Bank receives an ap- plication for financing, the Bank shall notify Page 210 TITLE 12—BANKS AND BANKING § 635 the applicant that the application has been re- ceived, and shall include in the notice— (A) a request for such additional informa- tion as may be necessary to make the appli- cation complete; (B) the name of a Bank employee who may be contacted with questions relating to the application; and (C) a unique identification number which may be used to review the status of the ap- plication at a website established by the Bank. (2) Website Not later than September 1, 2007, the Bank shall exercise the authority granted by sub- paragraphs (E)(x) and (J) of subsection (b)(1) to establish, and thereafter to maintain, a website through which— (A) Bank products may be applied for; and (B) information may be obtained with re- spect to— (i) the status of any such application; (ii) the Small Business Division of the Bank; and (iii) incentives, preferences, targets, and goals relating to small business concerns (as defined in section 632(a) of title 15), in- cluding small business concerns exporting to Africa. (i) Due diligence standards for lender partners The Bank shall set due diligence standards for its lender partners and participants, which should be applied across all programs consist- ently. To minimize or prevent fraudulent activ- ity, the Bank shall require all delegated lenders to implement ‘‘Know your customer practices’’. (j) Non-subordination requirement In entering into financing contracts, the Bank shall seek a creditor status which is not subordi- nate to that of all other creditors, in order to re- duce the risk to, and enhance recoveries for, the Bank. (k) Prohibition on discrimination based on in- dustry (1) In general Except as provided in this subchapter, the Bank may not— (A) deny an application for financing based solely on the industry, sector, or business that the application concerns; or (B) promulgate or implement policies that discriminate against an application based solely on the industry, sector, or business that the application concerns. (2) Applicability The prohibitions under paragraph (1) apply only to applications for financing by the Bank for projects concerning the exploration, devel- opment, production, or export of energy sources and the generation or transmission of electrical power, or combined heat and power, regardless of the energy source involved. (l) Program on China and Transformational Ex- ports (1) In general The Bank shall establish a Program on China and Transformational Exports to sup- port the extension of loans, guarantees, and insurance, at rates and on terms and other conditions, to the extent practicable, that are fully competitive with rates, terms, and other conditions established by the People’s Repub- lic of China or by a covered country, that aim to— (A) directly neutralize export subsidies for competing goods and services financed by of- ficial export credit, tied aid, or blended fi- nancing provided by the People’s Republic of China or by a covered country; or (B) advance the comparative leadership of the United States with respect to the Peo- ple’s Republic of China, or support United States innovation, employment, and techno- logical standards, through direct exports in any of the following areas: (i) Artificial intelligence. (ii) Biotechnology. (iii) Biomedical sciences. (iv) Wireless communications equipment (including 5G or subsequent wireless tech- nologies). (v) Quantum computing. (vi) Renewable energy, energy efficiency, and energy storage. (vii) Semiconductor and semiconductor machinery manufacturing. (viii) Emerging financial technologies, including technologies that facilitate— (I) financial inclusion through in- creased access to capital and financial services; (II) data security and privacy; (III) payments, the transfer of funds, and associated messaging services; and (IV) efforts to combat money laun- dering and the financing of terrorism. (ix) Water treatment and sanitation, in- cluding technologies and infrastructure to reduce contaminants and improve water quality. (x) High performance computing. (xi) Associated services necessary for use of any of the foregoing exports. (2) Covered countries In this subsection, the term ‘‘covered coun- try’’ means any country that— (A) the Secretary of the Treasury des- ignates as a covered country in a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Develop- ment of the Senate; (B) is not a participant in the Arrange- ment on Officially Supported Export Credits of the Organization for Economic Coopera- tion and Development (in this subsection re- ferred to as the ‘‘Arrangement’’); and (C) is not in substantial compliance with the financial terms and conditions of the Ar- rangement. (3) Financing (A) In general It shall be a goal of the Bank to reserve not less than 20 percent of the applicable amount (as defined in section 635e(a)(2) of this title) for support made pursuant to the Page 211 TITLE 12—BANKS AND BANKING § 635 Program on China and Transformational Ex- ports. (B) Exception The Secretary of the Treasury may reduce or eliminate the 20 percent goal in subpara- graph (A), on reporting to the Committee on Financial Services of the House of Rep- resentatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that the People’s Republic of China is in substantial compliance with— (i) the financial terms and conditions of the Arrangement; and (ii) the rules and principles of the Paris Club. (C) Sunset and report The program established under paragraph (1) shall expire on December 31, 2026. Not later than 4 years after December 20, 2019, the President of the Bank shall submit a re- port to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate assessing the following: (i) The capacity and demand of United States entities to export goods and serv- ices in the areas described in paragraph (1)(B), as assessed in consultation with the Secretary of Commerce. (ii) The availability of private-sector fi- nancing for exports in the areas. (iii) The feasibility and advisability of continuing the goal of subparagraph (A) of this paragraph with respect to paragraph (1)(B) after December 31, 2026. (D) National Advisory Council on Inter- national Monetary and Financial Prob- lems The National Advisory Council on Inter- national Monetary and Financial Problems shall ensure that Bank authorizations pursu- ant to the Program on China and Trans- formational Exports are considered or re- viewed expeditiously, consistent with the other credit standards required by law. (July 31, 1945, ch. 341, § 2, 59 Stat. 526; Dec. 28, 1945, ch. 602, 59 Stat. 666; June 9, 1947, ch. 101, § 1, 61 Stat. 130; May 21, 1953, ch. 64, § 1, 67 Stat. 28; Pub. L. 87–311, Sept. 26, 1961, 75 Stat. 673; Pub. L. 88–101, § 1(a), Aug. 20, 1963, 77 Stat. 128; Pub. L. 90–267, § 1(a)–(c), Mar. 13, 1968, 82 Stat. 47–49; Pub. L. 92–126, § 1(b)(1), (2), (5), (6), Aug. 17, 1971, 85 Stat. 345, 346; Pub. L. 93–646, §§ 2–6, 13, Jan. 4, 1975, 88 Stat. 2333–2335, 2337; Pub. L. 95–143, §§ 1–3, Oct. 26, 1977, 91 Stat. 1210; Pub. L. 95–630, title XIX, §§ 1902–1904, 1907(a), 1909, 1910, 1915, 1916, Nov. 10, 1978, 92 Stat. 3724–3727; Pub. L. 96–470, title II, § 210, Oct. 19, 1980, 94 Stat. 2245; Pub. L. 98–181, title I [title VI, §§ 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, § 204, Oct. 2, 1986, 100 Stat. 1096; Pub. L. 99–472, §§ 2–11, 20(a), Oct. 15, 1986, 100 Stat. 1200–1203, 1209; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–418, title III, § 3304, Aug. 23, 1988, 102 Stat. 1384; Pub. L. 100–690, title IV, § 4703, Nov. 18, 1988, 102 Stat. 4293; Pub. L. 101–240, title I, §§ 101(a), (c), (d), 102, Dec. 19, 1989, 103 Stat. 2493–2495; Pub. L. 101–513, title V, § 562 (part), Nov. 5, 1990, 104 Stat. 2031; Pub. L. 101–623, § 16, Nov. 21, 1990, 104 Stat. 3357; Pub. L. 102–145, § 121(2), (3), Oct. 28, 1991, as added Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 95; Pub. L. 102–429, title I, §§ 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, §§ 6(c), 12(a), (c)(1)(A), Nov. 2, 1992, 106 Stat. 4932, 4935; Pub. L. 103–149, § 4(b)(5), Nov. 23, 1993, 107 Stat. 1505; Pub. L. 103–236, title VIII, § 825, Apr. 30, 1994, 108 Stat. 514; Pub. L. 103–428, § 1(a), (b), Oct. 31, 1994, 108 Stat. 4375; Pub. L. 103–447, title I, § 102(a), Nov. 2, 1994, 108 Stat. 4693; Pub. L. 104–201, div. A, title XIII, § 1303(a), Sept. 23, 1996, 110 Stat. 2702; Pub. L. 105–121, §§ 5, 7(a), 9–12, Nov. 26, 1997, 111 Stat. 2529, 2530; Pub. L. 106–569, title XI, §§ 1103(d)(1), 1104(a)(1), (2), Dec. 27, 2000, 114 Stat. 3031; Pub. L. 107–189, §§ 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; Pub. L. 109–438, §§ 3(a), (b)(2), (c), 5, 6(b)(2), 7, 8, 11, 12, 13(b), (c), 14(b), Dec. 20, 2006, 120 Stat. 3268, 3269, 3272, 3273, 3276, 3277, 3279, 3280; Pub. L. 112–122, §§ 7, 8, 12(b), 22, 23, May 30, 2012, 126 Stat. 354, 357, 363; Pub. L. 114–94, div. E, title LII, § 52001(a), title LIII, § 53001, title LIV, §§ 54001(c), 54002(a), (b), title LV, § 55001, Dec. 4, 2015, 129 Stat. 1767–1769; Pub. L. 116–94, div. I, title IV, §§ 402(a), 403, 404(a), 405–407, Dec. 20, 2019, 133 Stat. 3021, 3023, 3024.) AMENDMENT OF SECTION For termination of amendment by section 1(c) of Pub. L. 103–428, see Effective and Termi- nation Dates of 1994 Amendments note below. Editorial Notes 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, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to sub- chapter III (§ 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, 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 classi- fication 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, which is classified principally to chapter 39 (§ 2751 et seq.) of Title 22, Foreign Relations and Inter- course. 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, which is classified generally to chapter 35 (§ 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, which was classified principally to chapter 56 (§ 4601 et seq.) of Title 50, War and National Defense, prior to repeal by Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232, except for sections 11A, 11B, and 11C thereof (50 U.S.C. 4611, 4612, 4613). Page 212 TITLE 12—BANKS AND BANKING § 635 Section 2151q of title 22, referred to in subsec. (b)(1)(C), was repealed by Pub. L. 96–533, title III, § 304(g), Dec. 16, 1980, 94 Stat. 3147. See section 2151d(a)(2), (b)(2), (c) of Title 22, Foreign Relations and Intercourse. The African Growth and Opportunity Act, referred to in subsec. (b)(9)(C), is title I of Pub. L. 106–200, May 18, 2000, 114 Stat. 252, which is classified principally to chapter 23 (§ 3701 et seq.) of Title 19, Customs Duties. For complete classification of this Act to the Code, see Short Title note set out under section 3701 of Title 19 and Tables. The Tariff Act of 1930, referred to in subsec. (e)(2)(A)(i), (B), is act June 17, 1930, ch. 497, 46 Stat. 590. Title VII of the Act is classified generally to subtitle IV (§ 1671 et seq.) of chapter 4 of Title 19, Customs Du- ties. 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. Title II of the Act is classified generally to sub- chapter II (§ 2251 et seq.) of chapter 12 of Title 19, Cus- toms Duties. For complete classification of this Act to the Code, see section 2101 of Title 19 and Tables. December 20, 2006, referred to in subsec. (e)(5), was in the original ‘‘the date of the enactment of this Act’’, which was translated as meaning the date of enactment of Pub. L. 109–438, which enacted subsec. (e)(5), to re- flect the probable intent of Congress. 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 Amend- ments hereunder. AMENDMENTS 2019—Subsec. (b)(1)(E)(i)(I). Pub. L. 116–94, § 403, added subcl. (I) and struck out former subcl. (I) which read as follows: ‘‘It is further the policy of the United States to encourage the participation of small business in inter- national commerce.’’ Subsec. (b)(1)(E)(v). Pub. L. 116–94, § 405, inserted at end ‘‘For the purpose of calculating the amounts of au- thority required under this clause, the Bank shall, with respect to insurance, exclude unutilized authorizations that terminated during the fiscal year.’’ Pub. L. 116–94, § 404(a), substituted ‘‘30’’ for ‘‘25’’. Subsec. (b)(1)(K). Pub. L. 116–94, § 407, inserted before period at end ‘‘, energy efficiency (including battery electric vehicles, batteries for electric vehicles, and electric vehicle charging infrastructure), and energy storage. It shall be a goal of the Bank to ensure that not less than 5 percent of the applicable amount (as de- fined in section 635e(a)(2) of this title) is made available each fiscal year for the financing of renewable energy, energy efficiency (including battery electric vehicles, batteries for electric vehicles, and electric vehicle charging infrastructure), and energy storage tech- nology exports’’. Subsec. (f). Pub. L. 116–94, § 406(1), inserted before pe- riod at end ‘‘, and shall deny an application for assist- ance if the end user, borrower, lender, or exporter has been convicted of an act of fraud or corruption in con- nection with an application for support from the Bank made in the preceding 5 years. The Bank may proceed with an application described in this subsection only if an end user, borrower, lender, or exporter can be fully excluded from the transaction’’. Subsec. (i). Pub. L. 116–94, § 406(2), substituted ‘‘shall require’’ for ‘‘should require’’. Subsec. (l). Pub. L. 116–94, § 402(a), added subsec. (l). 2015—Subsec. (a)(2)(A)(iii). Pub. L. 114–94, § 54002(a), added cl. (iii). Subsec. (b)(1)(E)(v). Pub. L. 114–94, § 52001(a), sub- stituted ‘‘25 percent’’ for ‘‘20 percent’’. Subsec. (b)(1)(M). Pub. L. 114–94, § 53001, added subpar. (M). Subsec. (b)(9)(B)(iii). Pub. L. 114–94, § 54001(c), sub- stituted ‘‘the date on which the authority of the Bank expires under section 635f of this title’’ for ‘‘September 30, 2014’’. Subsec. (d)(2). Pub. L. 114–94, § 54002(b), substituted ‘‘$25,000,000’’ for ‘‘$10,000,000’’. Subsec. (k). Pub. L. 114–94, § 55001, added subsec. (k). 2012—Subsec. (b)(2)(B)(ii). Pub. L. 112–122, § 22, redesig- nated subcls. (II), (III), (V), (VI), (VIII), and (IX) as (I) to (VI), respectively, and struck out subcls. (I), (IV), and (VII) which deemed Cambodian People’s Republic, Lao People’s Democratic Republic, and Socialist Fed- eral Republic of Yugoslavia as Marxist-Leninist coun- tries for purposes of par. (2). Subsec. (b)(9)(B)(iii). Pub. L. 112–122, § 23, substituted ‘‘2014’’ for ‘‘2011’’. Subsec. (e)(7)(E) to (G). Pub. L. 112–122, § 12(b), added subpar. (E) and redesignated former subpars. (E) and (F) as (F) and (G), respectively. Subsec. (i). Pub. L. 112–122, § 7, added subsec. (i). Subsec. (j). Pub. L. 112–122, § 8, added subsec. (j). 2006—Subsec. (b)(1)(A). Pub. L. 109–438, § 13(b), (c), in- serted ‘‘, including countries the governments of which are not members of the Arrangement (as defined in sec- tion 635i–3(h)(3) of this title)’’ after ‘‘United States ex- porters’’ in second sentence and struck out fourth to twelfth sentences which related to compliance report- ing requirements. Subsec. (b)(1)(E)(v). Pub. L. 109–438, § 14(b), inserted at end ‘‘From the amount made available under the pre- ceding sentence, it shall be a goal of the Bank to in- crease the amount made available to finance exports directly by small business concerns referred to in sec- tion 635a(i)(1) of this title.’’ Subsec. (b)(1)(E)(vii)(III). Pub. L. 109–438, § 6(b)(2), in- serted ‘‘or other financing institutions or entities’’ after ‘‘consortia’’. Subsec. (b)(9)(B)(iii). Pub. L. 109–438, § 3(a), sub- stituted ‘‘2011’’ for ‘‘2006’’. Subsec. (b)(9)(C), (D). Pub. L. 109–438, § 3(b)(2), (c), added subpars. (C) and (D). Subsec. (b)(13). Pub. L. 109–438, § 11, added par. (13). Subsec. (e)(1). Pub. L. 109–438, § 7(1), inserted con- cluding provisions. Subsec. (e)(2)(C). Pub. L. 109–438, § 8(b), inserted ‘‘of not less than 14 days (which, on request of any affected party, shall be extended to a period of not more than 30 days)’’ after ‘‘comment period’’. Subsec. (e)(2)(E). Pub. L. 109–438, § 7(2), added subpar. (E). Subsec. (e)(5) to (7). Pub. L. 109–438, §§ 5, 7(3), 8(a), added pars. (5) to (7). Subsecs. (g), (h). Pub. L. 109–438, § 12, added subsecs. (g) and (h). 2002—Subsec. (a)(1). Pub. L. 107–189, § 2, substituted ‘‘The objects and purposes of the Bank shall be to aid in financing and to facilitate exports of goods and serv- ices, imports, and the exchange of commodities and services between the United States or any of its terri- tories 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 coun- try or the agencies or nationals thereof.’’ Subsec. (b)(1)(A). Pub. L. 107–189, §§ 11, 13(b), sub- stituted ‘‘not later than June 30 of each year’’ for ‘‘on an annual basis’’ in fourth sentence, inserted ‘‘(includ- ing through use of market windows)’’ after ‘‘which for- eign exporters compete with the United States export- ers’’ in fifth sentence, inserted ‘‘With respect to the preceding sentence, the Bank shall use all available in- formation to estimate the annual amount of export fi- nancing available from each government and govern- Page 213 TITLE 12—BANKS AND BANKING § 635 ment-related agency.’’ after fifth sentence, and in- serted at end ‘‘The Bank shall include in the annual re- port 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 subpara- graph (K).’’ Subsec. (b)(1)(B). Pub. L. 107–189, §§ 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 Representa- tives’’ and inserted ‘‘(including, when relevant, a for- eign nation’s lack of cooperation in efforts to eradicate terrorism)’’ after ‘‘international terrorism’’, ‘‘the en- forcement of the Foreign Corrupt Practices Act of 1977, the Arms Export Control Act, the International Emer- gency Economic Powers Act, or the Export Administra- tion 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, § 7(b), in- serted ‘‘, with particular emphasis on conducting out- reach and increasing loans to socially and economi- cally 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 sec- tion 632(a) of title 15) employing fewer than 100 employ- ees,’’ after ‘‘Bank’’. Subsec. (b)(1)(E)(v). Pub. L. 107–189, § 7(a), substituted ‘‘20 percent’’ for ‘‘10 percent’’. Subsec. (b)(1)(E)(x). Pub. L. 107–189, § 8(a), added cl. (x). Subsec. (b)(1)(H)(ii), (iii). Pub. L. 107–189, § 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, § 8(b), added subpar. (J). Subsec. (b)(1)(K). Pub. L. 107–189, § 13(a), added subpar. (K). Subsec. (b)(1)(L). Pub. L. 107–189, § 19, added subpar. (L). Subsec. (b)(6)(D)(i)(III). Pub. L. 107–189, § 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 Representa- tives’’. Subsec. (b)(6)(E). Pub. L. 107–189, § 24(b)(3), substituted ‘‘internationally’’ for ‘‘international’’. Subsec. (b)(6)(H). Pub. L. 107–189, § 24(a)(2)(B), sub- stituted ‘‘Committee on Financial Services of the House of Representatives’’ for ‘‘Committee on Banking, Finance and Urban Affairs of the House of Representa- tives’’. Subsec. (b)(6)(I)(i)(II), (iii). Pub. L. 107–189, § 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, § 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, § 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, § 24(b)(2), realigned margins. Subsec. (e)(2) to (4). Pub. L. 107–189, § 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, § 16, added subsec. (f). 2000—Subsec. (b)(1)(A). Pub. L. 106–569, § 1103(d)(1), substituted ‘‘The Bank shall, on an annual basis, re- port’’ 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, § 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, § 1104(a)(2), struck out at end ‘‘The Bank shall include in the report to Con- gress under section 635g(a) of this title a description of the measures undertaken by it pursuant to this sub- section.’’ 1997—Subsec. (b)(1)(A). Pub. L. 105–121, § 10, in first sentence, substituted ‘‘real income, a commitment to reinvestment and job creation, and the increased devel- opment of the productive resources of the United States’’ for ‘‘real income and to the increased develop- ment of the productive resources of the United States’’. Subsec. (b)(1)(B). Pub. L. 105–121, § 11, inserted ‘‘(in- cluding child labor)’’ after ‘‘human rights’’ in penul- timate sentence. Pub. L. 105–121, § 5(2), inserted at end ‘‘Each such de- termination shall be delivered in writing to the Presi- dent of the Bank, shall state that the determination is made pursuant to this section, and shall specify the ap- plications or categories of applications for credit which should be denied by the Bank in furtherance of the na- tional interest.’’ Pub. L. 105–121, § 5(1), in penultimate sentence, in- serted ‘‘, after consultation with the Committee on Banking and Financial Services of the House of Rep- resentatives and the Committee on Banking, Housing, and Urban Affairs of the Senate,’’ after ‘‘President’’. Subsec. (b)(1)(I). Pub. L. 105–121, § 9, added subpar. (I). Subsec. (b)(9). Pub. L. 105–121, § 7(a), added par. (9). Subsec. (b)(12). Pub. L. 105–121, § 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 gov- ernments having jurisdiction over such persons. 1994—Subsec. (b)(4). Pub. L. 103–236 inserted ‘‘(as de- fined 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 ‘‘de- fined 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, § 1(b), (c), tempo- rarily inserted ‘‘or described in subparagraph (I)(i)’’ be- fore period at end of first sentence. See Effective and Termination Dates of 1994 Amendments note below. Subsec. (b)(6)(I). Pub. L. 103–428, § 1(a), (c), tempo- rarily 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 Af- rica. 1992—Subsec. (a)(3). Pub. L. 102–429, § 121(a)(1), struck out ‘‘(A) IN GENERAL.—’’ before ‘‘To enhance the me- dium-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 en- hance medium-term financing.’’ Subsec. (b)(1)(A). Pub. L. 102–429, § 121(a)(2), added sen- tence at end and struck out former last sentence which read as follows: ‘‘The Bank shall also include in the an- nual report a description of each loan by the Bank in- volving the export of any product or service related to Page 214 TITLE 12—BANKS AND BANKING § 635 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 sup- plies thus developed for use within the United States.’’ Subsec. (b)(1)(B). Pub. L. 102–429, § 104, inserted after first semicolon in fifth sentence ‘‘that the Bank, in de- termining whether to provide support for a transaction under the loan, guarantee, or insurance program, or any combination thereof, shall consider the need to in- volve private capital in support of United States ex- ports as well as the cost of the transaction as cal- culated in accordance with the requirements of the Federal Credit Reform Act of 1990;’’. Subsec. (b)(1)(E)(v). Pub. L. 102–429, § 121(a)(3), sub- stituted ‘‘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, § 116, inserted ‘‘directly’’ after ‘‘to fi- nance exports’’. Subsec. (b)(1)(H). Pub. L. 102–429, § 114, added subpar. (H). Subsec. (b)(2)(B). Pub. L. 102–429, § 110, amended sub- par. (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 coun- try 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-LEN- INIST.—Unless otherwise determined by the President in the manner provided in subparagraph (C), the fol- lowing 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, § 12(c)(1)(A), which directed the substitution of ‘‘, except as otherwise pro- vided 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 sub- sequent to the amendment by Pub. L. 102–429, § 112(d)(1). See below. Pub. L. 102–429, § 112(d)(1), struck out before period at end ‘‘designated under section 4916 of title 26 as an eco- nomically 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 re- spect to any transaction the consummation of which the President determines would be in the national in- terest 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 So- viet Union or by Communist China; in avoiding arming military dictators who are denying social progress to their own peoples; and in avoiding expenditures by de- veloping countries of scarce foreign exchange needed for peaceful economic progress’’. Subsec. (b)(6)(B). Pub. L. 102–429, § 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, § 6(c)(1), sub- stituted ‘‘section 2291j(e) of title 22’’ for ‘‘section 2291(h)(5) of title 22’’. Subsec. (b)(6)(B)(iv), (v). Pub. L. 102–429, § 112(a)(1), (2), (d)(2)(B), inserted ‘‘and’’ at end of cl. (iv) and sub- stituted ‘‘articles or services.’’ for ‘‘articles and serv- ices; and’’ at end of cl. (v). Subsec. (b)(6)(B)(vi). Pub. L. 102–583, § 12(a), which di- rected the substitution of ‘‘1997’’ for ‘‘1992’’ in cl. (vi), could not be executed because cl. (vi) was struck out by Pub. L. 102–429, § 112(a)(3). See below. Pub. L. 102–429, § 112(a)(3), struck out cl. (vi) which read as follows: ‘‘the sale is made on or before Sep- tember 30, 1992.’’ Subsec. (b)(6)(C)(ii). Pub. L. 102–583, § 6(c)(2), sub- stituted ‘‘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, § 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, § 112(d)(4), sub- stituted ‘‘clause’’ for ‘‘sentence’’ before period at end. Subsec. (b)(6)(G). Pub. L. 102–429, § 112(d)(5), sub- stituted ‘‘or services’’ for ‘‘and services’’. Subsec. (b)(6)(H). Pub. L. 102–429, § 112(c), added sub- par. (H). Subsec. (b)(11), (12). Pub. L. 102–429, § 111, redesignated par. (12) as (11), substituted ‘‘The President’’ for ‘‘Not- withstanding 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 com- modities, 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, § 109(a), amended par. (1) generally. Prior to amendment, par. (1) read as fol- lows: ‘‘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 guaran- tees, 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 out- standing at any one time. Fees and premiums shall be charged in connection with such contracts commensu- rate, in the judgment of the Bank, with risks covered.’’ Subsec. (c)(3). Pub. L. 102–429, § 105, designated exist- ing provisions as subpar. (A), inserted heading, and added subpar. (B). Page 215 TITLE 12—BANKS AND BANKING § 635 Subsec. (d)(2) to (5). Pub. L. 102–429, § 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 appro- priate agencies of the Department of State, the Depart- ment of the Treasury, and the Department of Com- merce, undertake actions designed to promote equal and nondiscriminatory opportunities to bid for insur- ance 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, Hous- ing, and Urban Affairs of the Senate not later than May 15, 1984, regarding— ‘‘(A) the existing obstacles to equal and non- discriminatory bidding for insurance related to trans- actions assisted by the Bank; ‘‘(B) the efforts that the Bank has taken in address- ing such problems; and ‘‘(C) recommendations for such legislative or ad- ministrative actions as the Bank considers nec- essary.’’ Subsec. (f). Pub. L. 102–429, § 121(a)(4), struck out sub- sec. (f) which related to interest subsidy payments. 1991—Subsec. (b)(3). Pub. L. 102–145, § 121(2), (3), as added by Pub. L. 102–266, amended par. (3) in introduc- tory 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 en- ergy resources in the Union of Soviet Socialist Repub- lics,’’. 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, § 101(c), sub- stituted ‘‘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 be- fore period ‘‘, and may accept reimbursement for travel and subsistence expenses incurred by a director, officer, or employee of the Bank, in accordance with sub- chapter 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, § 101(d), substituted ‘‘subparagraphs (B), (C), (D), and (F)’’ for ‘‘this para- graph’’. Subsec. (b)(12). Pub. L. 101–240, § 102, added par. (12). Subsec. (f)(2). Pub. L. 101–240, § 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 au- thority 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, § 101(a)(1), (2), redesig- nated 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 sub- sidy 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 Im- poundment Control Act of 1974.’’ Former par. (3) redes- ignated (2). Subsec. (f)(4), (5). Pub. L. 101–240, § 101(a)(1), (3), redes- ignated par. (5) as (4) and substituted ‘‘1991’’ for ‘‘1988’’. Former par. (4) redesignated (3). 1988—Subsec. (b)(6). Pub. L. 100–690 designated exist- ing provision as subpar. (A), substituted ‘‘subpara- graph’’ for ‘‘paragraph’’, and added subpars. (B) to (G). Subsec. (e)(1)(A)(i). Pub. L. 100–418, § 3304(a), sub- stituted ‘‘commodity will first be sold’’ for ‘‘productive capacity is expected to become operative’’. Subsec. (e)(2). Pub. L. 100–418, § 3304(b), substituted ‘‘short- and long-term injury’’ for ‘‘injury’’ and ‘‘pro- ducers and employment’’ for ‘‘producers’’. Subsec. (e)(3). Pub. L. 100–418, § 3304(c), added par. (3). 1986—Subsec. (a)(1). Pub. L. 99–472, § 2, inserted provi- sions which related to imposition and collection of rea- sonable 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, § 4, added par. (3). Subsec. (b)(1)(B). Pub. L. 99–472, §§ 3, 5, substituted ‘‘need not be identical in all respects to those’’ for ‘‘need not be equivalent to those’’ and inserted provi- sions which prohibited Bank from imposing credit ap- plication fee unless Bank’s fee is competitive with av- erage fee charged by Bank’s primary foreign competi- tors, 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, § 6, added cl. (ix). Subsec. (b)(1)(G). Pub. L. 99–472, § 7, added subpar. (G). Subsec. (b)(2). Pub. L. 99–472, § 8, amended par. (2) gen- erally. 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 de- fined), unless the President determines that guarantees, insur- ance, or extensions of credit in connection therewith to such Communist or such other country or agency or na- tional thereof would be in the national interest. The President shall make a separate determination with re- spect to each transaction in which the bank would ex- tend 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 sen- tence of this paragraph shall be reported to the Con- gress 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 determina- tion 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 sec- ond sentence of this paragraph shall be reported to the Congress not later than the earlier of thirty days fol- lowing 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 pro- visions 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, § 9, added par. (11). Subsec. (c)(3). Pub. L. 99–472, § 10, added par. (3). Subsecs. (e), (f). Pub. L. 99–472, §§ 11, 20(a), added sub- secs. (e) and (f). Page 216 TITLE 12—BANKS AND BANKING § 635 1983—Subsec. (a)(1). Pub. L. 98–181, § 616(a)(1), sub- stituted ‘‘the exchange of commodities and services’’ for ‘‘the exchange of commodities’’. Subsec. (a)(2). Pub. L. 98–181, § 622, added par. (2). Subsec. (b)(1)(A). Pub. L. 98–181, §§ 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, §§ 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 coun- tries, but should be established so as to neutralize the effect of such foreign credit on international sales com- petition, 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 financ- ing for provisions that loans made by the Bank had to be at interest at rates determined by the Board of Di- rectors of the Bank, taking into consideration the aver- age 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, as- sist, and protect the interests of small business in order to preserve free competitive enterprise, and that in fur- therance of this policy the Board of Directors had to designate an officer of the Bank to handle small busi- ness concerns, including advising small businessmen and maintaining liaison with the Small Business Ad- ministration and other departments and agencies in matters affecting small business concerns. Subsec. (b)(1)(D). Pub. L. 98–181, § 616(a)(3), added sub- par. (D). Subsec. (b)(1)(E). Pub. L. 98–181, § 618(a)(2), added sub- par. (E). Subsec. (b)(1)(F). Pub. L. 98–181, § 618(c), added subpar. (F). Subsec. (b)(3). Pub. L. 98–181, § 619(b), substituted ‘‘no loan or financial guarantee or general guarantee or in- surance facility’’ for ‘‘no loan or financial guarantee’’ in provisions preceding subpar. (A). Subsec. (b)(3)(A). Pub. L. 98–181, § 619(c), inserted lan- guage 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, § 620(a), substituted ‘‘the Secretary’’ for ‘‘he’’ before ‘‘determines that any coun- try’’ in first sentence, and before ‘‘has determined to have so acted’’ in second sentence. Subsec. (b)(7) to (10). Pub. L. 98–181, § 619(d), redesig- nated 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, § 617, added subsec. (d). 1980—Subsec. (b)(1)(A). Pub. L. 96–470 substituted ‘‘an- nual’’ for ‘‘semiannual’’ in three places. 1978—Subsec. (b)(1)(A). Pub. L. 95–630, § 1910, sub- stituted ‘‘manufactured goods, agricultural products, and other goods and services’’ for ‘‘goods and related services’’. Subsec. (b)(1)(B). Pub. L. 95–630, §§ 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 in- crease awareness of export opportunities among small agribusinesses and cooperatives;’’ after ‘‘in matters af- fecting 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 de- termines that such action would be in the national in- terest where such action would clearly and importantly advance United States policy in such areas as inter- national terrorism, nuclear proliferation, environ- mental protection and human rights, should the Ex- port-Import Bank deny applications for credit for non- financial 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 sup- ported by a loan or financial guarantee and the effect such exports may have on human rights in such coun- try’’. Subsec. (b)(1)(C). Pub. L. 95–630, § 1907(a), added sub- par. (C). Subsec. (b)(3). Pub. L. 95–630, § 1902, substituted ‘‘Ex- cept as provided by the fourth sentence of this para- graph, 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, §§ 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, § 1903, substituted ‘‘$25,000,000,000’’ for ‘‘$20,000,000,000’’. 1977—Subsec. (b)(1)(A). Pub. L. 95–143, § 1, inserted ‘‘and shall, in cooperation with other appropriate United States Government agencies, seek to reach international agreements to reduce government sub- sidized export financing’’ after ‘‘government-supported export financing’’. Subsec. (b)(1)(B). Pub. L. 95–143, § 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 sup- ported by a loan or financial guarantee and the effect such exports may have on human rights in such coun- try’’ after ‘‘employment in the United States’’. Subsec. (b)(3). Pub. L. 95–143, § 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, reprocess- ing, research, or heavy water production facilities,’’ after ‘‘Union of Soviet Socialist Republics’’ and sub- stituted ‘‘, (ii) in an amount’’ for ‘‘shall be finally ap- proved 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, § 3(b), (c), added par. (4), redesignated former par. (4) as (5) and, as so re- designated, added cl. (C), and redesignated former pars. (5) and (6) as (6) and (7), respectively. 1975—Subsec. (a)(1). Pub. L. 93–646, § 2, inserted provi- sions authorizing the Bank to guarantee, insure, coin- sure, and reinsure against political and credit risks of loss, to represent itself or to contract for representa- tion 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, § 13, eff. at the close of Sept. 30, 1976, repealed par. (2), which related to inclu- sion of receipts and disbursements of the bank in the federal budget and exemption of such receipts and dis- bursements 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, § 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 Page 217 TITLE 12—BANKS AND BANKING § 635 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, § 4, inserted provision requiring a separate Presidential determination of na- tional 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, § 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, § 6, removed the $10 bil- lion limit on the Bank’s insurance authority, and in- creased the Bank’s authority to charge such guarantees and insurance on a fractional charge basis from $10 bil- lion to $20 billion. 1971—Subsec. (a). Pub. L. 92–126, § 1(b)(1), designated existing provisions as par. (1) and added par. (2). Subsec. (b)(1). Pub. L. 92–126, § 1(b)(6), inserted provi- sions declaring the policy of the United States to be to foster expansion of goods and related services, contrib- uting 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 objec- tive. Subsec. (b)(3). Pub. L. 92–126, § 1(b)(5), substituted pro- visions 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, § 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, § 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, § 1(b), designated exist- ing provisions as par. (1) and required the Board of Di- rectors 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, § 1(c), added pars. (2) to (5). Subsec. (c)(1). Pub. L. 90–267, § 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 ‘‘Ex- port-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, re- quired 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 appro- priate, 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 secu- rity 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 busi- ness in the United States, or from United States Gov- ernment agencies providing marine or air war-risk in- surance, permitting reinsurance of companies author- ized to do an insurance business in the United States, or to use such company or companies as agent, and lim- iting 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 re- incorporation of the Bank as a corporate agency of the United States and specifically provided for the fol- lowing powers which the bank formerly possessed by implication: (1) to acquire stock through the enforce- ment of any lien or pledge or to satisfy an indebted- ness; (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 depart- ment; 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’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2019 AMENDMENT Pub. L. 116–94, div. I, title IV, § 404(b), Dec. 20, 2019, 133 Stat. 3023, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on January 1, 2021.’’ EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–94, div. E, title LII, § 52001(b), Dec. 4, 2015, 129 Stat. 1767, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall apply with respect to fiscal year 2016 and each fiscal year there- after.’’ Pub. L. 114–94, div. E, title LIV, § 54001(d), Dec. 4, 2015, 129 Stat. 1768, provided that: ‘‘The amendments made by this section [amending this section and section 635f of this title and provisions set out as a note under this section] shall take effect on the earlier of the date of the enactment of this Act [Dec. 4, 2015] or June 30, 2015.’’ Pub. L. 114–94, div. E, title LIV, § 54002(e), Dec. 4, 2015, 129 Stat. 1769, provided that: ‘‘The amendments made by this section [amending this section and sections 635a and 635i–5 of this title] shall apply with respect to fiscal year 2016 and each fiscal year thereafter.’’ EFFECTIVE DATE OF 2012 AMENDMENT Pub. L. 112–122, § 25, May 30, 2012, 126 Stat. 364, pro- vided that: ‘‘Except as provided in section 9(b) [enact- ing provisions set out as a note under section 635a of this title], this Act [see Short Title of 2012 Amendment note set out below] and the amendments made by this Act shall take effect on the earlier of June 1, 2012, or the date of the enactment of this Act [May 30, 2012].’’ EFFECTIVE AND TERMINATION DATES OF 1994 AMENDMENTS Pub. L. 103–428, § 1(c), Oct. 31, 1994, 108 Stat. 4376, as amended by Pub. L. 105–121, § 4, Nov. 26, 1997, 111 Stat. Page 218 TITLE 12—BANKS AND BANKING § 635 2529; Pub. L. 109–438, § 4, Dec. 20, 2006, 120 Stat. 3269; Pub. L. 112–122, § 24, May 30, 2012, 126 Stat. 364; Pub. L. 112–136, § 1, June 21, 2012, 126 Stat. 385; Pub. L. 114–94, div. E, title LIV, § 54001(b), Dec. 4, 2015, 129 Stat. 1768, 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 the date on which the authority of the Export-Import Bank of the United States expires under section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f).’’ [Pub. L. 113–235, div. J, title VI, Dec. 16, 2014, 128 Stat. 2598, provided in part: ‘‘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 through October 1, 2015.’’] [Prior similar extensions of section 1(a) and (b) of Pub. L. 103–428 were contained in the following acts: [Pub. L. 113–76, div. K, title VI, Jan. 17, 2014, 128 Stat. 489. [Pub. L. 112–74, div. I, title VI, Dec. 23, 2011, 125 Stat. 1191. [Pub. L. 111–117, div. F, title VI, Dec. 16, 2009, 123 Stat. 3341. [Pub. L. 111–8, div. H, title VI, Mar. 11, 2009, 123 Stat. 858. [Pub. L. 110–161, div. J, title II, Dec. 26, 2007, 121 Stat. 2289. [Pub. L. 109–102, title I, Nov. 14, 2005, 119 Stat. 2172. [Pub. L. 108–447, div. D, title I, Dec. 8, 2004, 118 Stat. 2968. [Pub. L. 108–199, div. D, title I, Jan. 23, 2004, 118 Stat. 143. [Pub. L. 108–7, div. E, title I, Feb. 20, 2003, 117 Stat. 159. [Pub. L. 107–229, § 129, as added by Pub. L. 107–240, § 5, Oct. 11, 2002, 116 Stat. 1494.] [For provisions continuing functions of Export-Im- port 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 Pub. L. 95–630, title XIX, § 1917, Nov. 10, 1978, 92 Stat. 3727, 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 2015 AMENDMENT Pub. L. 114–94, div. E, § 50001, Dec. 4, 2015, 129 Stat. 1763, provided that: ‘‘This division [enacting section 635a–7 of this title, amending this section and sections 635a, 635a–5, 635a–6, 635e to 635g, and 635i–5 of this title, enacting provisions set out as notes under this section and sections 635a, 635a–5, 635e, and 635g of this title, and amending provisions set out as a note under this sec- tion] may be cited as the ‘Export-Import Bank Reform and Reauthorization Act of 2015’.’’ SHORT TITLE OF 2012 AMENDMENT Pub. L. 112–122, § 1(a), May 30, 2012, 126 Stat. 350, pro- vided that: ‘‘This Act [enacting sections 635a–5 and 635a–6 of this title, amending this section and sections 635a and 635e to 635g of this title, enacting provisions set out as notes under this section and sections 635a and 635a–2 of this title, and amending provisions set out as a note under this section] may be cited as the ‘Ex- port-Import Bank Reauthorization Act of 2012’.’’ SHORT TITLE OF 2006 AMENDMENT Pub. L. 109–438, § 1(a), Dec. 20, 2006, 120 Stat. 3268, pro- vided that: ‘‘This Act [enacting section 635g–1 of this title, amending this section and sections 635a, 635e, 635f, 635g, 635i–3, and 635i–5 of this title, enacting provi- sions set out as notes under this section, and amending provisions set out as a note under this section] may be cited as the ‘Export-Import Bank Reauthorization Act of 2006’.’’ SHORT TITLE OF 2002 AMENDMENT Pub. L. 107–189, § 1(a), June 14, 2002, 116 Stat. 698, pro- vided 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, sec- tions 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 provi- sions 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 Re- authorization Act of 2002’.’’ SHORT TITLE OF 1997 AMENDMENT Pub. L. 105–121, § 1(a), Nov. 26, 1997, 111 Stat. 2528, pro- vided that: ‘‘This Act [amending this section and sec- tions 635a, 635f, and 635i–3 of this title, enacting provi- sions 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 Pub. L. 102–429, § 1(a), Oct. 21, 1992, 106 Stat. 2186, pro- vided 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 enact- ing provisions set out as notes under this section, sec- tion 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 Pub. L. 100–418, title III, § 3301, Aug. 23, 1988, 102 Stat. 1383, provided that: ‘‘This subtitle [subtitle D (§§ 3301–3304) of title III of Pub. L. 100–418, amending this section and section 635i–3 of this title and enacting pro- visions 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 Pub. L. 99–472, § 1, Oct. 15, 1986, 100 Stat. 1200, provided that: ‘‘This Act [enacting section 635i–3 of this title and section 262h of Title 22, Foreign Relations and Inter- course, amending this section and sections 635a, 635a–2, 635a–3, and 635e to 635g of this title, and enacting provi- sions set out as a note under section 635g of this title] may be cited as the ‘Export-Import Bank Act Amend- ments of 1986’.’’ SHORT TITLE OF 1983 AMENDMENT Pub. L. 98–181, title I [title VI, § 601], Nov. 30, 1983, 97 Stat. 1254, 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 sec- tion, 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 title I [part C (§§ 641–647) of title VI] of Pub. L. 98–181, which enacted subchapter III (§ 635o et seq.) of this chapter and section 1671g of Title 19 and amended sections 1671a and 1671b of Title 19, as the Page 219 TITLE 12—BANKS AND BANKING § 635 ‘‘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, § 380, Aug. 13, 1981, 95 Stat. 431, provided that: ‘‘This subtitle [subtitle B (§§ 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 pro- visions 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 Pub. L. 95–630, title XIX, § 1901, Nov. 10, 1978, 92 Stat. 3724, 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 provi- sions 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 Pub. L. 93–646, § 1, Jan. 4, 1975, 88 Stat. 2333, 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 Pub. L. 92–126, § 1(a), Aug. 17, 1971, 85 Stat. 345, pro- vided that: ‘‘This Act [amending this section and sec- tions 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 Act July 31, 1945, ch. 341, § 1, 59 Stat. 526, provided: ‘‘That this Act [this subchapter] may be cited as the ‘Export-Import Bank Act of 1945’.’’ RULE OF CONSTRUCTION Pub. L. 116–94, div. I, title IV, § 402(c), Dec. 20, 2019, 133 Stat. 3023, provided that: ‘‘Nothing in section 2(l)(1)(B) of the Export-Import Bank Act of 1945 [12 U.S.C. 635(l)(1)(B)] shall be construed to weaken any export controls affecting critical technologies (as defined in section 721(a)(6)(A) of the Defense Production Act of 1950 (50 U.S.C. 4565(a)(6)(A))).’’ 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 Inter- course, and section 161(d) of Pub. L. 103–236, set out as a note under section 2651a of Title 22. BOARD OF DIRECTORS A Board of Directors was reestablished for the Ex- port-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 su- perseded 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 orga- nized 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, § 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, § 2(a), 50 Stat. 5; Mar. 4, 1939, ch. 5, § 1(b)(c), 53 Stat. 510; Mar. 2, 1940, ch. 34, 54 Stat. 38; Sept. 26, 1940, ch. 734, § 3, 54 Stat. 962, and repealed by section 10 of act July 31, 1945. The Second Export-Im- port 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 sec- tion. WAIVER OF SANCTIONS Sanctions contained in subsec. (b)(4) waived in cer- tain 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 Rela- tions 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. REPORTING ON FINANCING RELATED TO CHINA Pub. L. 116–94, div. I, title IV, § 408, Dec. 20, 2019, 133 Stat. 3024, provided that: ‘‘(a) NATIONAL INTEREST REPORT.—Before authorizing a loan or guarantee for a transaction in an amount greater than $25,000,000 for which the end user, lender, or obligor is the government of China, the President of the Export-Import Bank of the United States (in this section referred to as the ‘Bank’) shall— ‘‘(1) report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that the Bank has consulted with the Secretary of State and any other relevant department or agency, as deemed appropriate by the President of the United States, to assess any risks posed by the entity or the transaction to the national interest of the United States; and ‘‘(2) include a summary of the transaction and the consultation. ‘‘(b) FORM OF REPORT.—The report described in sub- section (a) shall be submitted in unclassified form but may include a classified annex. ‘‘(c) RELATED POLICIES.— ‘‘(1) The Board of Directors of the Bank shall pre- scribe policies for the Bank with respect to— ‘‘(A) procedures required by the consultation de- scribed in subsection (a)(1); ‘‘(B) establishment of a period of not less than 25 days to complete the consultations described in subsection (a) during which time consulted parties may submit any appropriate information to the Bank; and ‘‘(C) efforts by the Bank to assess and determine ownership or control by the government of China pursuant to the requirements of subsection (a). ‘‘(2) In prescribing the policies described under paragraph (1) of this subsection, the Board of Direc- tors of the Bank shall— ‘‘(A) consult with the Secretary of State with re- spect to the procedures referred to in subpara- graphs (A) and (B) of paragraph (1) of this sub- section, and seek to ensure that the procedures— ‘‘(i) are consistent, wherever appropriate, with national interest determinations made under sec- tion 2(b)(1)(B) of the Export-Import Bank Act of 1945 [12 U.S.C. 635(b)(1)(B)]; and ‘‘(ii) include coordination between the Sec- retary of State and the Director of National In- telligence, wherever appropriate; and ‘‘(B) consult with the Secretary of the Treasury with respect to the efforts described in paragraph (1)(C) of this subsection. Page 220 TITLE 12—BANKS AND BANKING § 635 ‘‘(d) DEFINITION.—For the purposes of this section, the term ‘government of China’ means any person that the Bank has reason to believe is— ‘‘(1) the state and the government of China, as well as any political subdivision, agency, or instrumen- tality thereof; ‘‘(2) any entity controlled, directly or indirectly, by any of the foregoing, including any partnership, asso- ciation, or other entity in which any of the foregoing owns a 50 percent or greater interest or a controlling interest, and any entity which is otherwise controlled by any of the foregoing; ‘‘(3) any person that is or has been acting or pur- porting to act, directly or indirectly, for or on behalf of any of the foregoing; and ‘‘(4) any other person which the Secretary of the Treasury has notified the Bank is included in any of the foregoing. ‘‘(e) SUNSET.—This section shall have no force or ef- fect on the earlier of— ‘‘(1) December 31, 2026; or ‘‘(2) the date that is 30 days after the date that the President of the United States reports to the Com- mittee on Financial Services of the House of Rep- resentatives and the Committee on Banking, Hous- ing, and Urban Affairs of the Senate that China is in substantial compliance with— ‘‘(A) the financial terms and conditions of the Ar- rangement on Officially Supported Export Credits of the Organization for Economic Cooperation and Development; and ‘‘(B) the rules and principles of the Paris Club.’’ PILOT PROGRAM FOR REINSURANCE Pub. L. 114–94, div. E, title LI, § 51008, Dec. 4, 2015, 129 Stat. 1766, provided that: ‘‘(a) IN GENERAL.—Notwithstanding any provision of the Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.), the Export-Import Bank of the United States (in this section referred to as the ‘Bank’) may establish a pilot program under which the Bank may enter into contracts and other arrangements to share risks associ- ated with the provision of guarantees, insurance, or credit, or the participation in the extension of credit, by the Bank under that Act. ‘‘(b) LIMITATIONS ON AMOUNT OF RISK-SHARING.— ‘‘(1) PER CONTRACT OR OTHER ARRANGEMENT.—The aggregate amount of liability the Bank may transfer through risk-sharing pursuant to a contract or other arrangement entered into under subsection (a) may not exceed $1,000,000,000. ‘‘(2) PER YEAR.—The aggregate amount of liability the Bank may transfer through risk-sharing during a fiscal year pursuant to contracts or other arrange- ments entered into under subsection (a) during that fiscal year may not exceed $10,000,000,000. ‘‘(c) ANNUAL REPORTS.—Not later than 1 year after the date of the enactment of this Act [Dec. 4, 2015], and annually thereafter through 2019, the Bank shall sub- mit to Congress a written report that contains a de- tailed analysis of the use of the pilot program carried out under subsection (a) during the year preceding the submission of the report. ‘‘(d) RULE OF CONSTRUCTION.—Nothing in this section shall be construed to affect, impede, or revoke any au- thority of the Bank. ‘‘(e) TERMINATION.—The pilot program carried out under subsection (a) shall terminate on September 30, 2019.’’ PUBLICATION OF GUIDELINES FOR ECONOMIC IMPACT ANALYSES Pub. L. 112–122, § 12(a), May 30, 2012, 126 Stat. 357, pro- vided that: ‘‘Not later than 180 days after the date of the enactment of this Act [May 30, 2012], the Export- Import Bank of the United States shall develop and make publicly available methodological guidelines to be used by the Bank in conducting economic impact analyses or similar studies under section 2(e) of the Ex- port-Import Bank Act of 1945 [12 U.S.C. 635(e)]. In devel- oping the guidelines, the Bank shall take into consider- ation any relevant guidance from the Office of Manage- ment and Budget.’’ PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS IN- VOLVED IN SANCTIONABLE ACTIVITIES WITH RESPECT TO IRAN Pub. L. 112–122, § 18, May 30, 2012, 126 Stat. 360, pro- vided that: ‘‘(a) PROHIBITION ON FINANCING FOR PERSONS THAT EN- GAGE IN CERTAIN SANCTIONABLE ACTIVITIES.— ‘‘(1) IN GENERAL.—Beginning on the date that is 180 days after the date of the enactment of this Act [May 30, 2012], the Board of Directors of the Export-Import Bank of the United States may not approve any transaction that is subject to approval by the Board with respect to the provision by the Bank of any guarantee, insurance, or extension of credit, or the participation by the Bank in any extension of credit, to a person in connection with the exportation of any good or service unless the person makes the certifi- cation described in paragraph (2). ‘‘(2) CERTIFICATION DESCRIBED.—The certification described in this paragraph is a certification by a per- son— ‘‘(A) that neither the person nor any other person owned or controlled by the person— ‘‘(i) engages in any activity described in section 5(a) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note) for which the person may be subject to sanctions under that Act; ‘‘(ii) exports sensitive technology, as defined in section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8515), to Iran; or ‘‘(iii) engages in any activity prohibited by part 560 of title 31, Code of Federal Regulations (com- monly known as the ‘Iranian Transactions Regu- lations’), unless the activity is disclosed to the Office of Foreign Assets Control of the Depart- ment of the Treasury when the activity is discov- ered; or ‘‘(B) if the person or any other person owned or controlled by the person has engaged in an activity described in subparagraph (A), that— ‘‘(i) in the case of an activity described in sub- paragraph (A)(i)— ‘‘(I) the President has waived the imposition of sanctions with respect to the person that en- gaged in that activity pursuant to section 4(c), 6(b)(5), or 9(c) of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note); ‘‘(II)(aa) the President has invoked the special rule described in section 4(e)(3) of that Act with respect to the person that engaged in that ac- tivity; or ‘‘(bb)(AA) the person that engaged in that ac- tivity determines, based on its best knowledge and belief, that the person meets the criteria described in subparagraph (A) of such section 4(e)(3) and has provided to the President the as- surances described in subparagraph (B) of that section; and ‘‘(BB) the Secretary of State has issued an ad- visory opinion to that person that the person meets such criteria and has provided to the President those assurances; or ‘‘(III) the President has determined that the criteria have been met for the exception pro- vided for under section 5(a)(3)(C) of the Iran Sanctions Act of 1996 [Pub. L. 104–172, 50 U.S.C. 1701 note] to apply with respect to the person that engaged in that activity; or ‘‘(ii) in the case of an activity described in sub- paragraph (A)(ii), the President has waived, pur- suant to section 401(b)(1) of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8551(b)(1)), the application of the prohibition under section 106(a) of that Act (22 U.S.C. 8515(a)) with respect to that person. Page 221 TITLE 12—BANKS AND BANKING § 635 ‘‘(b) PROHIBITION ON FINANCING.—Beginning on the date that is 180 days after the date of the enactment of this Act, the Board of Directors of the Export-Import Bank of the United States may not approve any trans- action that is subject to approval by the Board with re- spect to the provision by the Bank of any guarantee, insurance, or extension of credit, or the participation by the Bank in any extension of credit, in connection with a financing in which a person that is a borrower or controlling sponsor, or a person that is owned or controlled by such borrower or controlling sponsor, is subject to sanctions under section 5(a) of the Iran Sanc- tions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note). ‘‘(c) ADVISORY OPINIONS.— ‘‘(1) AUTHORITY.—The Secretary of State is author- ized to issue advisory opinions described in sub- section (a)(2)(B)(i)(II). ‘‘(2) NOTICE TO CONGRESS.—If the Secretary issues an advisory opinion pursuant to paragraph (1), the Secretary shall notify the appropriate congressional committees of the opinion not later than 30 days after issuing the opinion. ‘‘(d) DEFINITIONS.—In this section: ‘‘(1) APPROPRIATE CONGRESSIONAL COMMITTEES; PER- SON.—The terms ‘appropriate congressional commit- tees’ and ‘person’ have the meanings given those terms in section 14 of the Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note). ‘‘(2) CONTROLLING SPONSOR.—The term ‘controlling sponsor’ means a person providing controlling direct private equity investment (excluding investments made through publicly held investment funds, pub- licly held securities, public offerings, or similar pub- lic market vehicles) in connection with a financing.’’ MASTER GUARANTEE AGREEMENTS WITH AFRICAN REGIONAL FINANCIAL INSTITUTIONS Pub. L. 109–438, § 3(b)(1), Dec. 20, 2006, 120 Stat. 3268, provided that: ‘‘Within 1 year after the date of the en- actment of this Act [Dec. 20, 2006], the Export-Import Bank of the United States shall seek to ensure that there is in effect a contract between each approved lender in Africa and the Bank, which sets forth the Bank’s guarantee undertakings and related obligations between the Bank and each lender.’’ ENHANCE DELEGATED LOAN AUTHORITY FOR MEDIUM TERM TRANSACTIONS Pub. L. 109–438, § 6(b)(1), Dec. 20, 2006, 120 Stat. 3272, provided that: ‘‘The Export-Import Bank of the United States shall seek to expand the exercise of authority under section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term transactions for small business con- cerns.’’ DEADLINE FOR ENHANCING DELEGATED LOAN AUTHORITY FOR MEDIUM TERM TRANSACTIONS Pub. L. 109–438, § 6(b)(3), Dec. 20, 2006, 120 Stat. 3272, provided that: ‘‘Not later than 180 days after the date of the enactment of this Act [Dec. 20, 2006], the Export- Import Bank of the United States shall make available lines of credit and guarantees to carry out section 2(b)(1)(E)(vii) of the Export-Import Bank Act of 1945 [12 U.S.C. 635(b)(1)(E)(vii)] pursuant to policies and proce- dures established by the Board of Directors of the Ex- port-Import Bank of the United States.’’ GAO STUDY OF BANK PERFORMANCE STANDARDS FOR ASSISTANCE TO SMALL BUSINESSES, ESPECIALLY THOSE OWNED BY SOCIALLY AND ECONOMICALLY DIS- ADVANTAGED INDIVIDUALS AND THOSE OWNED BY WOMEN Pub. L. 109–438, § 19, Dec. 20, 2006, 120 Stat. 3282, pro- vided that: ‘‘(a) PERFORMANCE STANDARDS.—The Bank shall de- velop a set of performance standards for determining the extent to which the Bank has carried out success- fully subparagraphs (E) and (I) of section 2(b)(1) of the Export-Import Bank Act of 1945 [12 U.S.C. 635(b)(1)(E), (I)], and the functions described in subsections (f)(1), (g)(1), (h)(1), and (i)(1) of section 3 of such Act [12 U.S.C. 635a(f)(1), (g)(1), (h)(1), (i)(1)]. ‘‘(b) ASSESSMENT OF STANDARDS.—Within 18 months after the date of the enactment of this Act [Dec. 20, 2006], the Comptroller General of the United States shall transmit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate— ‘‘(1) an assessment of the performance standards de- veloped by the Bank pursuant to subsection (a); and ‘‘(2) using the performance standards developed pur- suant to subsection (a), an assessment of the Bank’s efforts to carry out subparagraphs (E) and (I) of sec- tion 2(b)(1) of the Export-Import Bank Act of 1945 [12 U.S.C. 635(b)(1)(E), (I)], and the functions described in subsections (f)(1), (g)(1), (h)(1), and (i)(1) of section 3 of such Act [12 U.S.C. 635a(f)(1), (g)(1), (h)(1), (i)(1)].’’ GAO REPORT ON COMPARATIVE RESERVE PRACTICES OF EXPORT CREDIT AGENCIES AND PRIVATE BANKS Pub. L. 107–189, § 14, June 14, 2002, 116 Stat. 705, pro- vided that: ‘‘Within 1 year after the date of the enact- ment of this Act [June 14, 2002], the Comptroller Gen- eral of the United States shall submit to the Com- mittee on Financial Services of the House of Rep- resentatives 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, § 7(b), Nov. 26, 1997, 111 Stat. 2529, as amended by Pub. L. 107–189, § 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 annu- ally for each of the 8 years thereafter, the Board of Di- rectors 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 Pub. L. 102–429, title I, § 101, Oct. 21, 1992, 106 Stat. 2186, 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 posi- tion 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 in- creased 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, Page 222 TITLE 12—BANKS AND BANKING § 635 1992, must be renewed in order that the Bank con- tinue to arrange competitive and innovative financ- ing for the foreign sales of United States exporters.’’ REPORT ON FINANCING OF SERVICES Pub. L. 102–429, title I, § 119, Oct. 21, 1992, 106 Stat. 2197, directed Export-Import Bank of the United States, not later than 1 year after Oct. 21, 1992, to submit a re- port to Congress on ways of facilitating the export fi- nancing of high technology services. REPORT ON DEMAND FOR TRADE FINANCE FOR THE BAL- TIC STATES, THE INDEPENDENT STATES OF THE FORMER SOVIET UNION, AND CENTRAL AND EASTERN EUROPE Pub. L. 102–429, title I, § 120, Oct. 21, 1992, 106 Stat. 2197, 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, guaran- tees, 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 Eu- rope, and to make recommendations regarding the ade- quacy 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 Pub. L. 101–240, title I, § 103, Dec. 19, 1989, 103 Stat. 2496, 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 fi- nance any trade with, nor extend any loan, credit, cred- it 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 com- modities. ‘‘(c) The President may waive the prohibitions in sub- section (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 recog- nized human rights, including freedom of expres- sion, the press, assembly, and association; and ‘‘(E) permitting a freer flow of information, in- cluding 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, § 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 Ex- port-Import Bank Act of 1945 (12 U.S.C. 635(b)(2)), the Export-Import Bank of the United States may guar- antee, 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 Peo- ple’s Republic or any agency or national thereof. ‘‘(b) PRIVATE FINANCIAL INTERMEDIARIES TO FACILI- TATE EXPORTS TO POLAND.—Consistent with the provi- sions 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 inter- mediaries in Poland to facilitate the export of goods and services to Poland.’’ RESTRICTIONS ON LOANS Pub. L. 93–646, § 12, Jan. 4, 1975, 88 Stat. 2337, 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. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of the President under subsec. (b)(6) of this section, see section 1(u) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16131, set out as a note under section 2751 of Title 22, Foreign Relations and Intercourse. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of Title 22 and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637. EX. ORD. NO. 12166. DELEGATION OF FUNCTION OF PRESI- DENT RELATING TO APPLICATION FOR CREDIT TO SEC- RETARY OF STATE Ex. Ord. No. 12166, Oct. 19, 1979, 44 F.R. 60971, pro- vided: 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 Sec- retary of State. That function is the authority to de- termine 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 ad- vance United States policy in such areas as inter- national terrorism, nuclear proliferation, environ- mental protection and human rights. 1–102. Before making such a determination, the Sec- retary 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. ASSIGNMENT OF FUNCTIONS UNDER SECTION 530 OF THE FOREIGN RELATIONS AUTHORIZATION ACT FOR FISCAL YEARS 1994 AND 1995, AND SECTION 2(b)(4) OF THE EX- PORT-IMPORT BANK ACT OF 1945, AS AMENDED Memorandum of President of the United States, Mar. 23, 2007, 72 F.R. 18103, provided: Memorandum for the Secretary of State By the authority vested in me as President by the Constitution and laws of the United States of America, including section 301 of title 3 of the United States Code, I hereby assign to you: (1) the functions of the President under section 530 of the Foreign Relations Authorization Act for Fiscal Years 1994 and 1995 (Public Law 103–236) (22 U.S.C. 2429a–2); and (2) the functions of the President under section 2(b)(4) of the Export-Import Bank Act of 1945, as amended (12 U.S.C. 635). You are authorized and directed to publish this memorandum in the Federal Register. GEORGE W. BUSH. PRESIDENTIAL DETERMINATIONS RELATING TO COUNTRIES DEEMED TO BE MARXIST-LENINIST COUNTRIES The following Presidential Determinations deter- mined that the listed countries had ceased to be Marx- Page 223 TITLE 12—BANKS AND BANKING § 635a ist-Leninist countries within the definition of such term in subsection (b)(2)(B)(i) of this section: Determination No. 2009–20, June 12, 2009, 74 F.R. 28865.—Kingdom of Cambodia. Determination No. 2009–21, June 12, 2009, 74 F.R. 28867.—Lao People’s Democratic Republic. § 635a. Management of Bank (a) Establishment as independent agency The Export-Import Bank of the United States shall constitute an independent agency of the United States and neither the Bank nor any of its functions, powers, or duties shall be trans- ferred to or consolidated with any other depart- ment, agency, or corporation of the Government unless the Congress shall otherwise by law pro- vide. (b) President and First Vice President of the Bank; appointment; duties There shall be a President of the Export-Im- port Bank of the United States, who shall be ap- pointed by the President of the United States by and with the advice and consent of the Senate, and who shall serve as chief executive officer of the Bank. There shall be a First Vice President of the Bank, who shall be appointed by the President of the United States by and with the advice and consent of the Senate, who shall serve as President of the Bank during the ab- sence or disability of or in the event of a va- cancy in the office of President of the Bank, and who shall at other times perform such functions as the President of the Bank may from time to time prescribe. (c) Board of Directors; composition; oath; terms; duties; quorum; bylaws (1) There shall be a Board of Directors of the Bank consisting of the President of the Export- Import Bank of the United States, who shall serve as Chairman, the First Vice President who shall serve as Vice Chairman, and three addi- tional persons appointed by the President of the United States by and with the advice and con- sent of the Senate. (2) Of the five members of the Board, not more than three shall be members of any one political party. (3) Omitted (4) Before entering upon his duties, each of the directors shall take an oath faithfully to dis- charge the duties of his office. (5) The directors, in addition to their duties as members of the Board, shall perform such addi- tional duties and may hold such other offices in the administration of the Bank as the President of the Bank may from time to time prescribe. (6)(A) A quorum of the Board of Directors shall consist of at least three members. (B)(i) If there is an insufficient number of di- rectors to constitute a quorum under subpara- graph (A) for 120 consecutive days during the term of a President of the United States, a tem- porary Board, consisting of the following mem- bers, shall act in the stead of the Board of Direc- tors: (I) The United States Trade Representative. (II) The Secretary of the Treasury. (III) The Secretary of Commerce. (IV) The members of the Board of Directors. (ii) If, at a meeting of the temporary Board— (I) a member referred to in clause (i)(IV) is present, the meeting shall be chaired by such a member, consistent with Bank bylaws; or (II) no such member is present, the meeting shall be chaired by the United States Trade Representative. (iii) A member described in subclause (I), (II), or (III) of clause (i) may delegate the authority of the member to vote on whether to authorize a transaction, whose value does not exceed $100,000,000, to— (I) if the member is the United States Trade Representative, the Deputy United States Trade Representative; or (II) if the member is referred to in such sub- clause (II) or (III), the Deputy Secretary of the department referred to in the subclause. (iv) If the temporary Board consists of mem- bers of only one political party, the President of the United States shall, to the extent prac- ticable, appoint to the temporary Board a quali- fied member of a different political party who occupies a position requiring nomination by the President, by and with the consent of the Sen- ate. (v) The temporary board may not change or amend Bank policies, procedures, bylaws, or guidelines. (vi) The temporary Board shall expire at the end of the term of the President of the United States in office at the time the temporary Board was constituted or upon restoration of a quorum of the Board of Directors as defined in subpara- graph (A). (vii) With respect to a transaction that equals or exceeds $100,000,000, the Chairperson of the temporary Board shall ensure that the Bank complies with section 635(b)(3) of this title. (7) The Board of Directors shall adopt, and may from time to time amend, such bylaws as are necessary for the proper management and functioning of the Bank, and shall, in such by- laws, designate the vice presidents and other of- ficers of the Bank and prescribe their duties. (8)(A) The terms of the directors, including the President and the First Vice President of the Bank, appointed under this section shall be four years, except that— (i) during their terms of office, the directors shall serve at the pleasure of the President of the United States; (ii) the term of any director appointed after November 30, 1983, to serve before January 20, 1985, shall expire on January 20, 1985; (iii) of the directors first appointed to serve beginning on or after January 21, 1985, two di- rectors (other than the President and First Vice President of the Bank) shall be appointed for terms of two years, as designated by the President of the United States at the time of their appointment; and (iv) any director first appointed to serve for a term beginning on any date after January 21, 1985, shall serve only for the remainder of the period for which such director would have been appointed if such director’s term had begun on January 21, 1985. If such term would have expired before the date on which such di- rector’s term actually begins, the term of such director shall be the four-year period, or re-