Part II—Other Programs
subpart i—multilateral and regional development programs
§§2161, 2162. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2161,
Section 2162,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2163. Repealed. Pub. L. 93–189, §3(b), Dec. 17, 1973, 87 Stat. 717
Section,
Effective Date of Repeal
Repeal effective July 1, 1975, see section 3(b) of
§2164. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2165. Repealed. Pub. L. 92–226, pt. I, §101(d), Feb. 7, 1972, 86 Stat. 21
Section,
§2166. Regional development in Africa
The President is requested to seek and to take appropriate action, in cooperation and consultation with African and other interested nations and with international development organizations, to further and assist in the advancement of African regional development institutions, including the African Development Bank, with the view toward promoting African economic development.
(
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
African Assistance Policy; Presidential Report to Congress
Portuguese African Territories of Angola, Mozambique, and Guinea-Bissau: Independence Policy
"(a)(1) Congress finds that the Government of Portugal's recognition of the right to independence of the African territories of Angola, Mozambique, and Guinea-Bissau marks a significant advance toward the goal of self-determination for all the peoples of Africa, without which peace on the continent is not secure.
"(2) Congress finds that progress toward independence for the Portuguese African territories will have a significant impact on the international organizations and the community of nations.
"(3) Congress commends the Portuguese Government's initiatives on these fronts as evidence of a reaffirmation of that Government's support for her obligations under both the United Nations Charter and the North Atlantic Treaty Organization.
"(b) Therefore, Congress calls upon the President and the Secretary of State to take the following actions designed to make clear United States support for a peaceful and orderly transition to independence in the Portuguese African territories:
"(1) An official statement should be issued of United States support for the independence of Angola, Mozambique and Guinea-Bissau, and of our desire to have good relations with the future governments of the countries.
"(2) It should be made clear to the Government of of Portugal that we view the efforts toward a peaceful and just settlement of the conflict in the African territories as consistent with Portugal's obligations under the North Atlantic Treaty Organization partnership.
"(3) The United States should encourage United Nations support for a peaceful transition to independence, negotiated settlement of all differences, and the protection of human rights of all citizens of the three territories.
"(4) The United States should open a dialog with potential leaders of Angola, Mozambique, and Guinea-Bissau and assure them of our commitment to their genuine political and economic independence.
"(5) The economic development needs of the three territories will be immense when independence is achieved. Therefore, it is urged that the United States Agency for International Development devote attention to assessing the economic situation in Angola, Mozambique, and Guinea-Bissau and be ready to cooperate with the future governments in providing the kind of assistance that will help make their independence viable. In addition, the United States Government should take the initiative among other donors, both bilateral and multilateral, in seeking significant contribution of development assistance for the three territories.
"(6) In light of the need of Angola, Mozambique, and Guinea-Bissau for skilled and educated manpower, a priority consideration should be given to expanding current United States programs of educational assistance to the territories as a timely and substantive contribution to their independence.
"(c) [Repealed.
Executive Order No. 12599
Ex. Ord. No. 12599, June 23, 1987, 52 F.R. 23779, which established the Coordinating Committee for Sub-Saharan Africa and assigned its functions in order to establish procedures for development of a common long-term goal for all United States economic programs and policies in Sub-Saharan Africa, was revoked by Ex. Ord. No. 13118, §10(3), Mar. 31, 1999, 64 F.R. 16598.
§§2167, 2168. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2167,
Section 2168,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2169. Multilateral, regional, and bilateral programs
(a) Multilateral programs
The Congress recognizes that the planning and administration of development assistance by, or under the sponsorship of the United Nations, multilateral lending institutions, and other multilateral organizations may contribute to the efficiency and effectiveness of that assistance through participation of other donors in the development effort, improved coordination of policies and programs, pooling of knowledge, avoidance of duplication of facilities and manpower, and greater encouragement of self-help performance.
(b) Regional programs
It is further the sense of the Congress (1) that where problems or opportunities are common to two or more countries in a region, in such fields as agriculture, education, transportation, communications, power, watershed development, disease control, and establishment of development banks, these countries often can more effectively resolve such problems and exploit such opportunities by joining together in regional organizations or working together on regional programs, (2) that assistance often can be utilized more efficiently in regional programs than in separate country programs, and (3) that to the maximum extent practicable consistent with the purposes of this chapter assistance under this chapter should be furnished so as to encourage less developed countries to cooperate with each other in regional development programs.
(c) Federal funds to multilateral lending institutions and multilateral organizations for loans to foreign countries; increase
It is the sense of the Congress that the President should increase, to the extent practicable, the funds provided by the United States to multilateral lending institutions and multilateral organizations in which the United States participates for use by such institutions and organizations in making loans to foreign countries.
(d) Transfer of funds; use of international or multilateral lending organizations
In furtherance of the provisions of subsection (a) of this section, any funds appropriated under subchapter I of this chapter may be transferred by the President to the International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation, the Asian Development Bank or other multilateral lending institutions and multilateral organizations in which the United States participates for the purpose of providing funds to enable any such institution or organization to make loans to foreign countries.
(
References in Text
This chapter, referred to in subsec. (b), was in the original "this Act", meaning
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Amendments
1975—Subsec. (c).
1972—Subsec. (a).
Subsecs. (c), (d).
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Establishment of Standard Governing Allocation of Development Assistance for Production and Export of Commodities in Surplus in World Market; Presidential Initiation of International Consultations; Report by President to Congress
Policy With Respect to Countries Most Seriously Affected by Food Shortages; Presidential Reports to Congress
"(1) Review and make appropriate adjustments in the level of programming of our food and fertilizer assistance programs with the aim of increasing to the maximum extent feasible the volume of food and fertilizer available to those countries most seriously affected by current food shortages.
"(2) Call upon all traditional and potential new donors of food, fertilizer, or the means of financing these commodities to immediately increase their participation in efforts to address the emergency food needs of the developing world.
"(3) Make available to these most seriously affected countries the maximum feasible volume of food commodities, with appropriate regard to the current domestic price and supply situations.
"(4) Maintain regular and full consultation with the appropriate committees of the Congress and report to the Congress and the Nation on steps which are being taken to help meet this food emergency. In accordance with this provision, the President shall report to the Congress on a global assessment of food needs for fiscal year 1975, specifying expected food grain deficits and currently planned programming of food assistance, and steps which are being taken to encourage other countries to increase their participation in food assistance or the financing of food assistance. Such report should reach the Congress promptly and should be supplemented quarterly for the remainder of fiscal year 1975.
"(5) The Congress directs that during the fiscal year ending June 30, 1975, not more than 30 percent of concessional food aid should be allocated to countries other than those which are most seriously affected by current food shortages, unless the President demonstrates to the appropriate Committees of the Congress that the use of such food assistance is solely for humanitarian food purposes.
"(6) The Congress calls upon the President to proceed with the implementation of resolutions and recommendations adopted by the World Food Conference. The Congress believes that it is incumbent upon the United States to take a leading role in assisting in the development of a viable and coherent world food policy which would begin the task of alleviating widespread hunger and suffering prevalent in famine-stricken nations. The President shall report to the Congress within 120 days of enactment of this Act [Dec. 30, 1974] on the implementation of the resolutions and the extent to which the United States is participating in the implementation of resolutions adopted at the World Food Conference."
subpart ii—american schools and hospitals abroad; prototype desalting plants
Subpart Referred to in Other Sections
This subpart is referred to in
§§2171, 2172. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2171,
Section 2172,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2173. Repealed. Pub. L. 87–565, pt. I, §103(c), Aug. 1, 1962, 76 Stat. 256
Section,
§2174. American schools, libraries, and hospital centers abroad
(a) Assistance for schools and libraries
The President is authorized to furnish assistance, on such terms and conditions as he may specify, to schools and libraries outside the United States founded or sponsored by United States citizens and serving as study and demonstration centers for ideas and practices of the United States.
(b) Assistance for hospital centers
The President is authorized, notwithstanding the provisions of the Mutual Defense Assistance Control Act of 1951 [
(c) Authorization of appropriations
(1) To carry out the purposes of this section, there are authorized to be appropriated to the President $35,000,000 for fiscal year 1986 and $35,000,000 for fiscal year 1987.
(2) Amounts appropriated under paragraph (1) are authorized to remain available until expended.
(d) Pediatric plastic and reconstructive surgery centers
Notwithstanding the provisions of subsection (b) of this section, funds appropriated under this section may be used for assistance to centers for pediatric plastic and reconstructive surgery established by Children's Medical Relief International, except that assistance may not be furnished for the domestic operations of any such center located in the United States, its territories or possessions.
(
References in Text
The Mutual Defense Assistance Control Act of 1951, referred to in subsec. (b), is act Oct. 26, 1951, ch. 575,
Amendments
1985—Subsec. (c).
1981—Subsec. (c).
1980—Subsec. (c).
1979—Subsec. (c).
1978—Subsec. (c).
Subsecs. (d) to (f).
1977—Subsec. (c).
Subsec. (d).
Subsec. (f).
1975—Subsec. (c).
Subsec. (d).
1973—Subsec. (c).
Subsec. (d).
Subsec. (e).
1972—Subsec. (c).
1969—Subsec. (c).
Subsec. (d).
1968—Subsec. (c).
Subsec. (d).
1967—Subsec. (c).
Subsec. (d).
1966—Subsec. (b).
Subsec. (c).
Subsec. (d).
1965—Subsec. (b).
Subsec. (c).
1964—Subsec. (c).
1963—Subsec. (a).
Subsec. (b).
Subsec. (c).
Effective Date of 1985 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Effective Date of 1977 Amendment
Section 116(b) of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
§2175. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2175a. Repealed. Pub. L. 97–113, title VII, §734(a)(8), Dec. 29, 1981, 95 Stat. 1560
Section,
§§2176 to 2178. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2176,
Section 2177,
Section 2178,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2179. Prototype desalting plant
(a) Assistance in development
In furtherance of the purposes of subchapter I of this chapter and for the purpose of improving existing, and developing and advancing new, technology and experience in the design, construction, and operation of large-scale desalting plants of advanced concepts which will contribute materially to low-cost desalination in all countries, including the United States, the President, if he determines it to be feasible, is authorized to participate in the development of a large-scale water treatment and desalting prototype plant and necessary appurtenances to be constructed in Israel as an integral part of a dual-purpose power generating and desalting project. Such participation shall include financial, technical, and such other assistance as the President deems appropriate to provide for the study, design, construction, and, for a limited demonstration period of not to exceed five years, operation and maintenance of the water treatment and desalting facilities of the dual-purpose project.
(b) Terms and conditions
Any agreement entered into under subsection (a) of this section shall include such terms and conditions as the President deems appropriate to insure, among other things, that all information, products, uses, processes, patents, and other developments obtained or utilized in the development of this prototype plant will be available without further cost to the United States for the use and benefit of the United States throughout the world, and to insure that the United States, its officers, and employees have a permanent right to review data and have access to such plant for the purpose of observing its operations and improving science and technology in the field of desalination.
(c) Contracts
In carrying out the provisions of this section, the President may enter into contracts with public or private agencies and with any person without regard to section 3324(a) and (b) of title 31 and
(d) Patents
Nothing in this section shall be construed as intending to deprive the owner of any background patent or any right which such owner may have under that patent.
(e) Federal agencies
In carrying out the provisions of this section, the President may utilize the personnel, services, and facilities of any Federal agency.
(f) Authorization of appropriations
The United States costs, other than its administrative costs, for the study, design, construction, and operation of a prototype plant under this section shall not exceed either 50 per centum of the total capital costs of the facilities associated with the production of water, and 50 per centum of the operation and maintenance costs for the demonstration period, or $20,000,000, whichever is less. There are authorized to be appropriated, subject to the limitations of this subsection, such sums as may be necessary to carry out the provisions of this section, including administrative costs thereof. Such sums are authorized to remain available until expended.
(g) Restrictions on appropriations
No funds appropriated for the Office of Water Research and Technology pursuant to the appropriation authorized by the Act of July 11, 1969 (
(
References in Text
Act of July 11, 1969, referred to in subsec. (g), is
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Codification
In subsec. (c), "section 3324(a) and (b) of title 31" substituted for reference to section 3648 of the Revised Statutes (
Change of Name
Office of Water Research and Technology formed through merger of Office of Saline Water and Office of Water Resources Research by order of Secretary of the Interior, Ord. No. 2966, July 26, 1974.
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in title 35 section 210.
§§2180, 2180a. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2180,
Section 2180a,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
subpart iii—shelter and other credit guaranty programs
Subpart Referred to in Other Sections
This subpart is referred to in
§2181. Policy
The Congress recognizes that shelter, including essential urban development services, is among the most fundamental of human needs. Shelter for most people in the developing countries consists largely of domestic materials assembled by local labor. While recognizing that most financing for such shelter must come from domestic resources, the Congress finds that carefully designed programs involving United States capital and expertise can increase the availability of domestic financing for improved shelter and related services for low-income people by demonstrating to local entrepreneurs and institutions that providing low-cost shelter can be financially viable. The Congress reaffirms, therefore, that the United States should continue to assist developing countries in marshalling resources for low-cost shelter. Particular attention should be given to programs which will support pilot projects for low-cost shelter or which will have a maximum demonstration impact on local institutions and national policy. The Congress declares that the long run goal of all such programs should be to develop domestic construction capabilities and to stimulate local credit institutions to make available domestic capital and other management and technological resources required for effective low-cost shelter programs and policies.
(
Codification
Amendment by
Prior Provisions
A prior section 221 of
Amendments
1984—
1978—
1977—
1975—
1974—
1973—
1972—
Effective Date of 1978 Amendment
Amendment by
Use of Funds From Sale of Notes for Discharge of Liabilities Under Guaranties; Transfer of Funds and Cancellation of Notes and Interest
Section Referred to in Other Sections
This section is referred to in
§2182. Authorization for worldwide shelter guarantees
(a) Authorization to issue guarantees to eligible investors
To carry out the policy of
(b) Emphasis on certain activities
Activities carried out under this section shall emphasize—
(1) projects which provide improved home sites to poor families on which to build shelter, and related services;
(2) projects comprised of expandable core shelter units on serviced sites;
(3) slum upgrading projects designed to conserve and improve existing shelter;
(4) shelter projects for low-income people designed for demonstration or institution building purposes; and
(5) community facilities and services in support of projects authorized under this section to improve the shelter occupied by the poor.
(c) Use of solar energy technology
In issuing guaranties under this section with respect to projects in a country which require the use or conservation of energy, the President shall give consideration to the use of solar energy technologies, where such technologies are economically and technically feasible. Technologies which may be used include solar hot water systems, solar heating and cooling, passive solar heating, biomass conversion, photovoltaic and wind applications, and community-scale solar thermal applications.
(k) 1 Minimum annual program levels
The total principal amount of guaranties issued under this section for each of the fiscal years 1986 and 1987 shall be comparable to the total principal amount of such guaranties issued for fiscal year 1984, subject to the dollar limitations on the issuance of guaranties under this section which are contained in subsection (a) of this section and in appropriation Acts.
(
Codification
Amendment by
Prior Provisions
A prior section 222 of
Amendments
1990—Subsec. (a).
1989—Subsec. (a).
1987—Subsec. (a).
1985—Subsec. (a).
Subsec. (k).
1984—Subsec. (a).
1981—Subsec. (a).
1979—Subsec. (a).
1978—
1977—Subsec. (c).
1975—Subsec. (c).
Effective Date of 1985 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
1 So in original. No subsecs. (d) to (j) have been enacted.
§2182a. Agricultural and productive credit and self-help community development programs
(a) Financing pilot programs; scope
It is the sense of the Congress that in order to stimulate the participation of the private sector in the economic development of less-developed countries, the authority conferred by this section should be used to establish pilot programs to encourage private banks, credit institutions, similar private lending organizations, cooperatives, and private nonprofit development organizations to make loans on reasonable terms to organized groups and individuals residing in a community for the purpose of enabling such groups and individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. Agricultural credit and assistance for self-help community development projects should include, but not be limited to, material and such projects as wells, pumps, farm machinery, improved seed, fertilizer, pesticides, vocational training, food industry development, nutrition projects, improved breeding stock for farm animals, sanitation facilities, and looms and other handicraft aids.
(b) Guaranties; percentage limitation
To carry out the purposes of subsection (a) of this section, the agency primarily responsible for administering subchapter I of this chapter is authorized to issue guaranties, on such terms and conditions as it shall determine, to private lending institutions, cooperatives, and private nonprofit development organizations assuring against loss of not to exceed 50 per centum of the portfolio of such loans made by any lender to organized groups or individuals residing in a community to enable such groups or individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. In no event shall the liability of the United States exceed 75 per centum of any one loan.
(c) Total and individual amount of guaranties
The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $20,000,000. Not more than 10 per centum of such sum shall be provided for any one institution, cooperative, or organization.
(d) Inter-American Foundation consultations
The Inter-American Foundation shall be consulted in developing criteria for making loans eligible for guaranty coverage in Latin America under this section.
(e) Guaranty reserve
Not to exceed $3,000,000 of the guaranty reserve established under
(f) Administrative and operating expenses; funds
Funds held by the Overseas Private Investment Corporation pursuant to
(g) Transfer of Overseas Private Investment Corporation's obligations and assets
The Overseas Private Investment Corporation shall, upon enactment of this subsection, transfer to the agency primarily responsible for administering subchapter I of this chapter all obligations, assets, and related rights and responsibilities arising out of, or related to the predecessor program provided for in
(h) Termination of authority
The authority of this section shall continue through September 30, 1988.
(i) Excess foreign currencies; use
Notwithstanding the limitation in subsection (c) of this section, foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needs of the United States may be utilized to carry out the purposes of this section, including the discharge of liabilities under this subsection. The authority conferred by this subsection shall be in addition to authority conferred by any other provision of law to implement guaranty programs utilizing excess local currency.
(
Repeal of Subsection (d)
For repeal of subsection (d) of this section by
References in Text
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Codification
Amendment by
Amendments
1985—Subsec. (h).
1984—Subsec. (a).
Subsec. (b).
Subsec. (h).
1983—Subsec. (h).
1979—Subsec. (a).
Subsec. (c).
Subsec. (h).
1978—Subsec. (h).
Subsec. (j).
1977—Subsec. (h).
Effective Date of 1985 Amendment
Amendment by
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Section Referred to in Other Sections
This section is referred to in
§2183. General provisions
(a) Fees; determination by President; reduction
A fee shall be charged for each guaranty issued under
(b) Accumulated and existing fees; expenditure of fees; revolving fund account; investments; use of investment income
The amount of $50,000,000 of fees accumulated under prior investment guaranty provisions repealed by the Foreign Assistance Act of 1969, together with all fees collected in connection with guaranties issued under
(c) Priorities of funds for guaranty payments
Any payments made to discharge liabilities under guaranties issued under
(d) Guaranties as obligations backed by full faith and credit of United States
All guaranties issued under section 2182 or 2182a, or previously under
(e) Authorization of appropriations; borrowing authority
(1) There is hereby authorized to be appropriated to the President such amounts, to remain available until expended, as may be necessary from time to time to carry out the purposes of this subpart.
(2)(A) In order to meet obligations incurred for the payment of claims pursuant to loan guaranties described in subsection (d) of this section, the Administrator of the agency primarily responsible for administering subchapter I of this chapter may, to the extent that reserves are not sufficient, borrow from time to time from the Treasury, except that—
(i) the Administrator may exercise the authority to borrow under this paragraph only to such extent or in such amounts as are provided in advance in appropriation Acts; and
(ii) the amount borrowed under this paragraph which is outstanding at any one time may not exceed $100,000,000.
(B) Any such borrowing shall bear interest at a rate determined by the Secretary of the Treasury, taking into account the current average market yield on outstanding marketable obligations of the United States of comparable maturities. The Secretary of the Treasury shall make loans under this paragraph and for such purpose may borrow on the credit of the United States in accordance with subchapter I of
(f) Agency determination of maximum rate of interest
In the case of any loan investment guaranteed under
(g) Guaranties under prior acts
Housing guaranties committed, authorized, or outstanding heretofore under this subpart or under prior housing guaranty authorities repealed by the Foreign Assistance Act of 1969 shall continue subject to provisions of law originally applicable thereto and fees collected hereafter with respect to such guaranties shall be available for the purposes specified in subsection (b) of this section.
(h) Fraud or misrepresentation
No payment may be made under any guaranty issued pursuant to this subpart for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(i) Repealed. Pub. L. 95–424, title I, §115(i), Oct. 6, 1978, 92 Stat. 952
(j) Guaranties for housing projects; percentage requirement for families with income below median income
Guaranties shall be issued under
(
References in Text
The Foreign Assistance Act of 1969, referred to in subsecs. (b), (c), (d), and (g), is
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
References to Part I Deemed To Include Section 2293
References to part I of this subchapter are deemed to include a reference to
Codification
Amendment by
Prior Provisions
A prior section 223 of
Amendments
1998—Subsec. (j).
1987—Subsec. (e)(2)(A)(ii).
1984—Subsec. (e).
1981—Subsec. (b).
1979—Subsec. (f).
Subsec. (j).
1978—Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (f).
Subsec. (g).
Subsec. (i).
Subsec. (j).
1977—Subsec. (b).
Subsec. (i).
Subsec. (j).
1976—Subsec. (j).
1975—Subsec. (i).
Subsec. (j).
1974—Subsec. (a).
Subsec. (b).
Subsec. (d).
Subsec. (i).
1973—Subsec. (i).
1972—Subsec. (i).
Effective Date of 1984 Amendment
Section 311(d) of H.R. 5119, as passed by the House of Representatives on May 10, 1984, and enacted into permanent law by section 101(1) [title V, §541(a)] of
Effective Date of 1979 Amendment
Amendment by
Effective Date of 1978 Amendment
Amendment by
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
§2184. Trade credit insurance program for Central America
(a) Guarantees to Export-Import Bank; financial transactions with private sector in Central American countries
In order to enable the Export-Import Bank of the United States (hereafter in this section referred to as the "Bank") to determine that there exists reasonable assurance of repayment as required under section 2(b)(1)(B) of the Export-Import Bank Act of 1945 [
(b) Extent of guarantees; agreements; reserve fund
(1) Guarantees provided by the Agency pursuant to the authority of subsection (a) of this section shall be for short-term guarantees and insurance extended by the Bank which shall be repayable within a period not to exceed one year from the date of arrival at the port of importation of the goods and services covered by such guarantees or insurance. Guarantees or insurance extended by the Bank and guaranteed by the Agency pursuant to subsection (a) of this section shall be provided by the Bank in accordance with criteria and procedures agreed to by the Agency and the Bank. Such agreement shall also provide for the establishment of a reserve fund by the Agency, with such funds made available to the reserve as the Agency deems necessary to discharge liabilities under guarantees provided by the Agency pursuant to subsection (a) of this section.
(2) The Administrator of such agency shall transmit a copy of such agreement to the Speaker of the House of Representatives and to the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(c) Deadline for guarantee commitments
The Agency shall not enter into any commitments to guarantee under subsection (a) of this section after September 30, 1991.
(d) Availability of appropriated funds
Of the funds authorized to be appropriated for part IV of subchapter II of this chapter, there are authorized to be made available such sums as may be deemed necessary by the Agency to discharge liabilities under guarantees entered into under subsection (a) of this section.
(e) Guarantee commitments limit
Commitments to guarantee under subsection (a) of this section are authorized only to the extent and in the amounts provided in appropriations Acts, except that the aggregate amount of outstanding commitments under subsection (a) of this section may not exceed $300,000,000 of contingent liability for loan principal during fiscal year 1986 and may not exceed $400,000,000 of contingent liability for loan principal during fiscal year 1987.
(f) Credits to reserve fund
To the extent that any of the funds made available pursuant to subsection (d) of this section are paid out for a claim arising out of liabilities guaranteed under subsection (a) of this section, amounts received after the date of such payment, with respect to such claim, shall be credited to the reserve fund referred to in subsection (b) of this section, shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Agency to the Bank for guarantees under subsection (a) of this section.
(g) Reports to Congress
Beginning on a date six months after October 12, 1984, and at intervals of six months thereafter, the administrator of the agency primarily responsible for administering subchapter I of this chapter and the President of the Export-Import Bank of the United States shall prepare and transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on the amount and extension of credits during the preceding six-month period.
(h) Administrative and technical assistance
The Export-Import Bank shall provide without reimbursement such administrative and technical assistance to the Agency as the Bank and the Agency deem appropriate to assist the Agency in carrying out this section.
(
References in Text
The Export-Import Bank Act of 1945, referred to in subsec. (a), is act July 31, 1945, ch. 341,
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Codification
Section 224 of
Prior Provisions
A prior section 224 of
Amendments
1990—Subsec. (c).
1989—
Subsec. (c).
1985—Subsec. (e).
Effective Date of 1985 Amendment
Amendment by
§2185. Trade credit insurance program for Poland
(a) General authority
(1) Assurance to Export-Import Bank of repayment
The President is authorized to provide guarantees to the Bank for liabilities described in paragraph (2) in order to satisfy the requirement of section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (
(2) Liabilities which may be guaranteed
The liabilities that may be guaranteed under paragraph (1) are liabilities incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of 1945 [
(b) Guarantees available only for short-term guarantees and insurance
Guarantees provided under subsection (a) of this section shall be for short-term guarantees and insurance extended by the Bank which shall be repayable within a period not to exceed one year from the date of arrival at the port of importation of the goods and services covered by such guarantees or insurance.
(c) Agreement on criteria and procedures
Guarantees or insurance extended by the Bank and guaranteed pursuant to subsection (a) of this section shall be provided by the Bank in accordance with criteria and procedures agreed to by the Administrator and the Bank.
(d) Reserve fund
The agreement referred to in subsection (c) of this section shall also provide for the establishment of a reserve fund by the administering agency, with such funds made available to the reserve as the Administrator deems necessary to discharge liabilities under guarantees provided under subsection (a) of this section.
(e) Discharge of liabilities
(1) Funds which may be used
Such amounts of the funds made available to carry out part IV of subchapter II of this chapter (relating to the economic support fund) as the President determines are necessary may be made available to discharge liabilities under guarantees entered into under subsection (a) of this section.
(2) Crediting of subsequent payments
To the extent that any of the funds made available pursuant to paragraph (1) are paid out for a claim arising out of liabilities guaranteed under subsection (a) of this section, amounts received after the date of such payment, with respect to such claim, shall be credited to the reserve fund established pursuant to subsection (d) of this section, shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Administrator to the Bank for guarantees under subsection (a) of this section.
(f) Appropriations action required
Commitments to guarantee under subsection (a) of this section are authorized only to the extent and in the amounts provided in advance in appropriations Acts.
(g) Limitation on outstanding commitments
The aggregate amount of outstanding commitments under subsection (a) of this section may not exceed $200,000,000 of contingent liability for loan principal during any fiscal year.
(h) Biannual reports to Congress
Every 6 months, the Administrator and the President of the Bank shall prepare and transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on the amount and extension of guarantees and insurance provided by the Bank and guaranteed under this section during the preceding 6-month period.
(i) Administrative and technical assistance
The Bank shall provide, without reimbursement, such administrative and technical assistance to the administering agency as the Bank and the Administrator determine appropriate to assist the administering agency in carrying out this section.
(j) Fees and premiums
The Bank is authorized to charge fees and premiums, in connection with guarantees or insurance guaranteed by the administering agency under subsection (a) of this section, that are commensurate (in the judgment of the Bank) with the Bank's administrative costs and the risks covered by the agency's guarantees. Any amounts received by the Bank in excess of the estimated costs incurred by the Bank in administering such guarantees or insurance—
(1) shall be credited to the reserve fund established pursuant to subsection (d) of this section,
(2) shall be merged with the funds in such reserve, and
(3) shall be available for the purpose of payments by the administering agency to the Bank for guarantees under subsection (a) of this section.
(k) Restrictions not applicable
Prohibitions on the use of foreign assistance funds for assistance for Poland shall not apply with respect to the funds made available to carry out this section.
(l) Expiration of authority
The President may not enter into any commitments to guarantee under subsection (a) of this section after September 30, 1992.
(m) Definitions
For purposes of this section—
(1) the term "administering agency" means the Agency for International Development;
(2) the term "Administrator" means the Administrator of the Agency for International Development; and
(3) the term "Bank" means the Export-Import Bank of the United States.
(
References in Text
The Export-Import Bank Act of 1945, referred to in subsec. (a)(2), is act July 31, 1945, ch. 341,
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Conforming Reference
Section 304(c) of
1 So in original. Probably should be "has".
§2186. Loan guarantees to Israel program
(a) In general
Subject to the terms and conditions of this section, during the period beginning October 1, 1992, and ending September 30, 1997, the President is authorized to issue guarantees against losses incurred in connection with loans to Israel made as a result of Israel's extraordinary humanitarian effort to resettle and absorb immigrants into Israel from the republics of the former Soviet Union, Ethiopia and other countries. In the event that less than the full amount authorized to be issued under subsection (b) of this section is issued in such period, the authority to issue the balance of such guarantees shall be available in the fiscal year ending on September 30, 1998.
(b) Fiscal year levels
The President is authorized to issue guarantees in furtherance of the purposes of this section. Subject to subsection (d) of this section, the total principal amount of guarantees which may be issued by the President under this section shall be up to $10,000,000,000 which may be issued as follows:
(1) in fiscal year 1993, up to $2,000,000,000 may be issued on October 1, 1992 or thereafter;
(2) subject to subsection (d) of this section, in fiscal years 1994 through 1997, up to $2,000,000,000 in each fiscal year may be issued on October 1 or thereafter.
(3) If less than the full amount of guarantees authorized to be made available in a fiscal year pursuant to paragraphs (1) and (2) of this subsection is issued to Israel during that fiscal year, the authority to issue the balance of such guarantees shall extend to any subsequent fiscal year ending on or before September 30, 1998.
(4)(A) Not later than September 1 of each year during the period in which the President is authorized to issue loan guarantees under subsection (a) of this section, beginning in fiscal year 1993, the President shall notify the appropriate congressional committees in writing of his intentions regarding the exercise of that authority for the fiscal year beginning on October 1 of that year, including a statement of the total principal amount of guarantees, if any, that the President proposes to issue for that fiscal year.
(B) For purposes of this paragraph, the term "appropriate congressional committees" means the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on Foreign Affairs of the House of Representatives.
(c) Use of guarantees
Guarantees may be issued under this section only to support activities in the geographic areas which were subject to the administration of the Government of Israel before June 5, 1967.
(d) Limitation on guarantee amount
The amount of authorized but unissued guarantees that the President is authorized to issue as specified in subsection (b) of this section shall be reduced by an amount equal to the amount extended or estimated to have been extended by the Government of Israel during the previous year for activities which the President determines are inconsistent with the objectives of this section or understandings reached between the United States Government and the Government of Israel regarding the implementation of the loan program. The President shall submit a report to Congress no later than September 30 of each fiscal year during the pendency of the program specifying the amount calculated under this subsection and that will be deducted from the amount of guarantees authorized to be issued in the next fiscal year.
(e) Fees
(1) Fees charged for the loan guarantee program under this section each year shall be an aggregate annual origination fee equal to the estimated subsidy cost of the guarantees issued under this section for that year, calculated by the Office of Management and Budget for the Federal Credit Reform Act of 1990 [
(2) The origination fee shall be payable to the United States Government on a pro rata basis as each guarantee for each loan or increment is issued.
(f) Authority to suspend
Except as provided in subsections (l) and (m) of this section, the President shall determine the terms and conditions for issuing guarantees. If the President determines that these terms and conditions have been breached, the President may suspend or terminate the provision of all or part of the additional loan guarantees not yet issued under this section. Upon making such a determination to suspend or terminate the provision of loan guarantees, the President shall submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate his determination to do so, including the basis for such suspension or termination.
(g) Procedures for suspension or termination
Any suspension or termination pursuant to subsection (f) of this section shall be in accordance with the following procedures:
(1) Upon making a determination to suspend or terminate the provision of loan guarantees, the President shall submit to the Speaker of the House of Representatives and the President Pro Tempore of the Senate his determination to do so, including the basis for such suspension or termination.
(2) Such a suspension or termination shall cease to be effective if Congress enacts, within 30 days of submission, a joint resolution authorizing the assistance notwithstanding the suspension.
(3) Any such joint resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976.
(4) For the purpose of expediting the consideration and enactment of joint resolutions under this subsection, a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives.
(5) In the event that the President suspends the provision of additional loan guarantees under subsection (f) of this section and Congress does not enact a joint resolution pursuant to this subsection, the provision of additional loan guarantees under the program established by this section may be resumed only if the President determines and so reports to Congress that the reasons for the suspension have been resolved or that the resumption is otherwise in the national interest.
(h) Economic context
The effective absorption of immigrants into Israel from the republics of the former Soviet Union and Ethiopia within the private sector requires large investment and economic restructuring to promote market efficiency and thereby contribute to productive employment and sustainable growth. Congress recognizes that the Government of Israel is developing an economic strategy designed to achieve these goals, and that the Government of Israel intends to adopt a comprehensive, multi-year economic strategy based on prudent macroeconomic policies and structural reforms. Congress also recognizes that these policies are being designed to reduce direct involvement of the government in the economic system and to promote private enterprise, important prerequisites for economic stability and sustainable growth.
(i) Consultations
It is the sense of the Congress that, as agreed between the two Governments and in order to further the policies specified in subsection (h) of this section, Israel and the United States should continue to engage in consultations concerning economic and financial measures, including structural and other reforms, that Israel should undertake during the pendency of this program to enable its economy to absorb and resettle immigrants and to accommodate the increased debt burden that will result from loans guaranteed pursuant to this section. It is the sense of the Congress that these consultations on economic measures should address progress and plans in the areas of budget policies, privatization, trade liberalization, financial and capital markets, labor markets, competition policy, and deregulation.
(j) Goods and services
During the pendency of the loan program authorized under this section, it is anticipated that, in the context of the economic reforms undertaken pursuant to subsections (h) and (i) of this section, Israel's increased population due to its absorption of immigrants, and the liberalization by the Government of Israel of its trade policy with the United States, the amount of United States investment goods and services purchased for use in or with respect to the country of Israel will substantially increase.
(k) Reports
The President shall report to Congress by December 31 of each fiscal year until December 31, 1999, regarding the implementation of this section.
(l) Applicability of certain sections
(m) Terms and conditions
(1) Each loan guarantee issued under this section shall guarantee 100 percent of the principal and interest payable on such loans.
(2) The standard terms of any loan or increment guaranteed under this section shall be 30 years with semiannual payments of interest only over the first 10 years, and with semiannual payments of principal and interest on a level payment basis, over the last 20 years thereof, except that the guaranteed loan or any increments issued in a single transaction may include obligations having different maturities, interest rates, and payment terms if the aggregate scheduled debt service for all obligations issued in a single transaction equals the debt service for a single loan or increment of like amount having the standard terms described in this sentence. The guarantor shall not have the right to accelerate any guaranteed loan or increment or to pay any amounts in respect of the guarantees issued other than in accordance with the original payment terms of the loan. For purposes of determining the maximum principal amount of any loan or increment to be guaranteed under this section, the principal amount of each such loan or increment shall be—
(A) in the case of any loan issued on a discount basis, the original issue price (excluding any transaction costs) thereof; or
(B) in the case of any loan issue 1 on an interest-bearing basis, the stated principal amount thereof.
(
References in Text
The Federal Credit Reform Act of 1990, referred to in subsecs. (e)(1) and (l), is title V of
Section 601(b) of the International Security Assistance and Arms Export Control Act of 1976, referred to in subsec. (g)(3), is section 601(b) of
Change of Name
Committee on Foreign Affairs of House of Representatives treated as referring to Committee on International Relations of House of Representatives by section 1(a) of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
subpart iv—overseas private investment corporation
Subpart Referred to in Other Sections
This subpart is referred to in
1 So in original. Probably should be "issued".
§2191. Congressional statement of purpose; creation and functions of Corporation
To mobilize and facilitate the participation of United States private capital and skills in the economic and social development of less developed countries and areas, and countries in transition from nonmarket to market economies, thereby complementing the development assistance objectives of the United States, there is hereby created the Overseas Private Investment Corporation (hereinafter called the "Corporation"), which shall be an agency of the United States under the policy guidance of the Secretary of State.
The Corporation, in determining whether to provide insurance, financing, or reinsurance for a project, shall especially—
(1) be guided by the economic and social development impact and benefits of such a project and the ways in which such a project complements, or is compatible with, other development assistance programs or projects of the United States or other donors;
(2) give preferential consideration to investment projects in less developed countries that have per capita incomes of $984 or less in 1986 United States dollars, and restrict its activities with respect to investment projects in less developed countries that have per capita incomes of $4,269 or more in 1986 United States dollars (other than countries designated as beneficiary countries under
(3) ensure that the project is consistent with the provisions of
In carrying out its purpose, the Corporation, utilizing broad criteria, shall undertake—
(a) to conduct financing, insurance, and reinsurance operations on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness of projects;
(b) to utilize private credit and investment institutions and the Corporation's guaranty authority as the principal means of mobilizing capital investment funds;
(c) to broaden private participation and revolve its funds through selling its direct investments to private investors whenever it can appropriately do so on satisfactory terms;
(d) to conduct its insurance operations with due regard to principles of risk management including efforts to share its insurance and reinsurance risks;
(e) to the maximum degree possible consistent with its purposes—
(1) to give preferential consideration in its investment insurance, reinsurance, and guaranty activities to investment projects sponsored by or involving United States small business; and
(2) to increase the proportion of projects sponsored by or significantly involving United States small business to at least 30 percent of all projects insured, reinsured, or guaranteed by the Corporation;
(f) to consider in the conduct of its operations the extent to which less developed country governments are receptive to private enterprise, domestic and foreign, and their willingness and ability to maintain conditions which enable private enterprise to make its full contribution to the development process;
(g) to foster private initiative and competition and discourage monopolistic practices;
(h) to further to the greatest degree possible, in a manner consistent with its goals, the balance-of-payments and employment objectives of the United States;
(i) to conduct its activities in consonance with the activities of the agency primarily responsible for administering subchapter I of this chapter and the international trade, investment, and financial policies of the United States Government, and to seek to support those developmental projects having positive trade benefits for the United States;
(j) to advise and assist, within its field of competence, interested agencies of the United States and other organizations, both public and private, national and international, with respect to projects and programs relating to the development of private enterprise in less developed countries and areas;
(k)(1) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause such investor (or the sponsor of an investment project in which such investor is involved) significantly to reduce the number of his employees in the United States production he is replacing his United States production with production from such investment which involves substantially the same product for substantially the same market as his United States production; and (2) to monitor conformance with the representations of the investor on which the Corporation relied in making the determination required by clause (1);
(l) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause a significant reduction in the number of employees in the United States;
(m) to refuse to insure, reinsure, or finance any investment subject to performance requirements which would reduce substantially the positive trade benefits likely to accrue to the United States from the investment; and
(n) to refuse to insure, reinsure, guarantee, or finance any investment in connection with a project which the Corporation determines will pose an unreasonable or major environmental, health, or safety hazard, or will result in the significant degradation of national parks or similar protected areas.
(
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Codification
Amendment by
Prior Provisions
A prior section 231 of
Amendments
1994—
1992—
1988—
1985—
1981—
1978—
1974—
Overseas Private Investment Corporation; Reaffirmation of Support
Ex. Ord. No. 11579. Overseas Private Investment Corporation
Ex. Ord. No. 11579, Jan. 19, 1971, 36 F.R. 969, as amended by Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055; Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, provided:
By virtue of the authority vested in me by the Foreign Assistance Act of 1961 (
(b) The function of prescribing regulations relating to the reinstatement or restoration of officers and employees of the Corporation to other government positions, when their appointment to a position in the Corporation was made from another government position and their separation from the Corporation was not made for cause, is hereby delegated to the Office of Personnel Management.
(b) The Corporation shall be deemed to be the successor of the Agency for International Development and the Administrator thereof, with respect to all functions vested in the Corporation pursuant to law.
(c) Except to the extent that they may be inconsistent with this order, all determinations, authorizations, regulations, rulings, certificates, orders, directives, contracts, agreements, and other actions made, issued, or entered into with respect to any function affected by this order and not revoked, superseded or otherwise made inapplicable before the date of this order, shall continue in full force and effect until amended, modified, or terminated by appropriate authority.
(d) Executive Order No. 10973 of November 3, 1961, as amended [set out as a note under this section], is hereby superseded insofar as any provision therein is in conflict with any provision herein.
(e) The provisions of this order shall become effective upon adoption by the Board of Directors of bylaws for the Corporation.
Section Referred to in Other Sections
This section is referred to in
§2191a. Additional requirements
(a) Worker rights
(1) Limitation on OPIC activities
The Corporation may insure, reinsure, guarantee, or finance a project only if the country in which the project is to be undertaken is taking steps to adopt and implement laws that extend internationally recognized worker rights, as defined in
"The investor agrees not to take actions to prevent employees of the foreign enterprise from lawfully exercising their right of association and their right to organize and bargain collectively. The investor further agrees to observe applicable laws relating to a minimum age for employment of children, acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety, and not to use forced labor. The investor is not responsible under this paragraph for the actions of a foreign government."
(2) Use of annual reports on workers rights
The Corporation shall, in making its determinations under paragraph (1), use the reports submitted to the Congress pursuant to
(3) Waiver
Paragraph (1) shall not prohibit the Corporation from providing any insurance, reinsurance, guaranty, or financing with respect to a country if the President determines that such activities by the Corporation would be in the national economic interests of the United States. Any such determination shall be reported in writing to the Congress, together with the reasons for the determination.
(4) Operations of OPIC in the People's Republic of China
In making a determination under this section for the People's Republic of China, the Corporation shall discuss fully and completely the justification for making such determination with respect to each item set forth in subparagraphs (A) through (E) of
(b) Environmental impact
The Board of Directors of the Corporation shall not vote in favor of any action proposed to be taken by the Corporation that is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented, unless for at least 60 days before the date of the vote—
(1) an environmental impact assessment or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to the proposed action has been completed by the project applicant and made available to the Board of Directors; and
(2) such assessment or audit has been made available to the public of the United States, locally affected groups in the host country, and host country nongovernmental organizations.
(c) Public hearings
(1) The Board shall hold at least one public hearing each year in order to afford an opportunity for any person to present views as to whether the Corporation is carrying out its activities in accordance with
(2) In conjunction with each meeting of its Board of Directors, the Corporation shall hold a public hearing in order to afford an opportunity for any person to present views regarding the activities of the Corporation. Such views shall be made part of the record.
(
Amendments
1999—Subsec. (b).
Subsec. (c).
1996—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (a)(4).
1992—Subsec. (a)(1).
1988—Subsec. (a)(4).
Effective Date of 1999 Amendment
Effective Date of 1996 Amendment
Amendment by
Effective Date
Section 5(b) of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
§2192. Capital of the Corporation
The President is authorized to pay in as capital of the Corporation, out of dollar receipts made available through the appropriation process from loans made pursuant to subchapter I of this chapter and from loans made under the Mutual Security Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the payment of such capital by the President, the Corporation shall issue an equivalent amount of capital stock to the Secretary of the Treasury.
(
References in Text
The Mutual Security Act of 1954, referred to in text, is act Aug. 26, 1954, ch. 937,
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Prior Provisions
A prior section 232 of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
§2193. Organization and management
(a) Structure
The Corporation shall have a Board of Directors, a President, an Executive Vice President, and such other officers and staff as the Board of Directors may determine.
(b) Board of directors
All powers of the Corporation shall vest in and be exercised by or under the authority of its Board of Directors ("the Board") which shall consist of fifteen Directors, including the Chairman, with eight Directors constituting a quorum for the transaction of business. Eight Directors shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall not be officials or employees of the Government of the United States. At least two of the eight Directors appointed under the preceding sentence shall be experienced in small business, one in organized labor, and one in cooperatives. Each such Director shall be appointed for a term of no more than three years. The terms of no more than three such Directors shall expire in any one year. Such Directors shall serve until their successors are appointed and qualified and may be reappointed.
The other Directors shall be officials of the Government of the United States, including the President of the Corporation, the Administrator of the Agency for International Development, the United States Trade Representative, and an official of the Department of Labor, designated by and serving at the pleasure of the President of the United States. The United States Trade Representative may designate a Deputy United States Trade Representative to serve on the Board in place of the United States Trade Representative.
There shall be a Chairman and a Vice Chairman of the Board, both of whom shall be designated by the President of the United States from among the Directors of the Board other than those appointed under the second sentence of the first paragraph of this subsection.
All Directors who are not officers of the Corporation or officials of the Government of the United States shall be compensated at a rate equivalent to that of level IV of the Executive Schedule when actually engaged in the business of the Corporation and may be paid per diem in lieu of subsistence at the applicable rate prescribed in the standardized Government travel regulations, as amended from time to time, while away from their homes or usual places of business.
(c) President
The President of the Corporation shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall serve at the pleasure of the President. In making such appointment, the President shall take into account private business experience of the appointee. The President of the Corporation shall be its Chief Executive Officer and responsible for the operations and management of the Corporation, subject to bylaws and policies established by the Board.
(d) Officers and staff
The Executive Vice President of the Corporation shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall serve at the pleasure of the President. Other officers, attorneys, employees, and agents shall be selected and appointed by the Corporation, and shall be vested with such powers and duties as the Corporation may determine. Of such persons employed by the Corporation, not to exceed twenty may be appointed, compensated, or removed without regard to the civil service laws and regulations: Provided, That under such regulations as the President of the United States may prescribe, officers and employees of the United States Government who are appointed to any of the above positions may be entitled, upon removal from such position, except for cause, to reinstatement to the position occupied at the time of appointment or to a position of comparable grade and salary. Such positions shall be in addition to those otherwise authorized by law, including those authorized by
(
References in Text
Level IV of the Executive Schedule, referred to in subsec. (b), is set out in
The civil service laws, referred to in subsec. (d), are set out in Title 5. See, particularly,
Prior Provisions
A prior section 233 of
Amendments
1999—Subsec. (b).
1981—Subsec. (b).
Effective Date of 1981 Amendment
Section 3(c) of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Members of Board of Directors of Overseas Private Investment Corporation
For provisions directing that the United States Trade Representative serve, ex officio, as an additional voting member of the Board of Directors of the Overseas Private Investment Corporation and to serve as the Vice Chair of that Board and authorizing and directing the appointment of an additional member of the Board of Directors of the Overseas Private Investment Corporation as part of the consolidation of the trade functions of the Federal government, see Reorg. Plan No. 3 of 1979, §4, 44 F.R. 69274,
§2194. Investment insurance and other programs
The Corporation is hereby authorized to do the following:
(a) Investment insurance
(1) To issue insurance, upon such terms and conditions as the Corporation may determine, to eligible investors assuring protection in whole or in part against any or all of the following risks with respect to projects which the Corporation has approved—
(A) inability to convert into United States dollars other currencies, or credits in such currencies, received as earnings or profits from the approved project, as repayment or return of the investment therein, in whole or in part, or as compensation for the sale or disposition of all or any part thereof;
(B) loss of investment, in whole or in part, in the approved project due to expropriation or confiscation by action of a foreign government;
(C) loss due to war, revolution, insurrection, or civil strife; and
(D) loss due to business interruption caused by any of the risks set forth in subparagraphs (A), (B), and (C).
(2) Recognizing that major private investments in less developed friendly countries or areas are often made by enterprises in which there is multinational participation, including significant United States private participation, the Corporation may make arrangements with foreign governments (including agencies, instrumentalities, or political subdivisions thereof) or with multilateral organizations and institutions for sharing liabilities assumed under investment insurance for such investments and may in connection therewith issue insurance to investors not otherwise eligible hereunder, except that liabilities assumed by the Corporation under the authority of this subsection shall be consistent with the purposes of this subpart and that the maximum share of liabilities so assumed shall not exceed the proportionate participation by eligible investors in the project.
(3) Not more than 10 per centum of the maximum contingent liability of investment insurance which the Corporation is permitted to have outstanding under section 2195(a)(1) 1 of this title shall be issued to a single investor.
(4) Before issuing insurance for the first time for loss due to business interruption, and in each subsequent instance in which a significant expansion is proposed in the type of risk to be insured under the definition of "civil strife" or "business interruption", the Corporation shall, at least sixty days before such insurance is issued, submit to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives a report with respect to such insurance, including a thorough analysis of the risks to be covered, anticipated losses, and proposed rates and reserves and, in the case of insurance for loss due to business interruption, an explanation of the underwriting basis upon which the insurance is to be offered. Any such report with respect to insurance for loss due to business interruption shall be considered in accordance with the procedures applicable to reprogramming notifications pursuant to
(b) Investment guaranties
To issue to eligible investors guaranties of loans and other investments made by such investors assuring against loss due to such risks and upon such terms and conditions as the Corporation may determine: Provided, however, That such guaranties on other than loan investments shall not exceed 75 per centum of such investment: Provided further, That except for loan investments for credit unions made by eligible credit unions or credit union associations, the aggregate amount of investment (exclusive of interest and earnings) so guaranteed with respect to any project shall not exceed, at the time of issuance of any such guaranty, 75 per centum of the total investment committed to any such project as determined by the Corporation, which determination shall be conclusive for purposes of the Corporation's authority to issue any such guaranty: Provided further, That not more than 15 per centum of the maximum contingent liability of investment guaranties which the Corporation is permitted to have outstanding under section 2195(a)(2) 1 of this title shall be issued to a single investor.
(c) Direct investment
To make loans in United States dollars repayable in dollars or loans in foreign currencies (including, without regard to
The Corporation may designate up to 25 percent of any loan under this subsection for use in the development or adaptation in the United States of new technologies or new products or services that are to be used in the project for which the loan is made and are likely to contribute to the economic or social development of less developed countries.
No loan may be made under this subsection to finance any operation for the extraction of oil or gas. The aggregate amount of loans under this subsection to finance operations for the mining or other extraction of any deposit of ore or other nonfuel minerals may not in any fiscal year exceed $4,000,000.
(d) Investment encouragement
To initiate and support through financial participation, incentive grant, or otherwise, and on such terms and conditions as the Corporation may determine, the identification, assessment, surveying and promotion of private investment opportunities, utilizing wherever feasible and effective the facilities of private organizations or private investors, except that—
(1) the Corporation shall not finance any survey to ascertain the existence, location, extent, or quality of, or to determine the feasibility of undertaking operations for the extraction of, oil or gas; and
(2) expenditures financed by the Corporation during any fiscal year on surveys to ascertain the existence, location, extent, or quality of, or to determine the feasibility of undertaking operations for the extraction of nonfuel minerals may not exceed $200,000.
(e) Special projects and programs
To administer and manage special projects and programs, including programs of financial and advisory support which provide private technical, professional, or managerial assistance in the development of human resources, skills, technology, capital savings and intermediate financial and investment institutions and cooperatives and including the initiation of incentives, grants, and studies for renewable energy and other small business activities. The funds for these projects and programs may, with the Corporation's concurrence, be transferred to it for such purposes under the authority of
(f) Additional insurance functions
(1) To make and carry out contracts of insurance or reinsurance, or agreements to associate or share risks, with insurance companies, financial institutions, any other persons, or groups thereof, and employing the same, where appropriate, as its agent, or acting as their agent, in the issuance and servicing of insurance, the adjustment of claims, the exercise of subrogation rights, the ceding and accepting of reinsurance, and in any other matter incident to an insurance business; except that such agreements and contracts shall be consistent with the purposes of the Corporation set forth in
(2) To enter into pooling or other risk-sharing arrangements with multinational insurance or financing agencies or groups of such agencies.
(3) To hold an ownership interest in any association or other entity established for the purposes of sharing risks under investment insurance.
(4) To issue, upon such terms and conditions as it may determine, reinsurance of liabilities assumed by other insurers or groups thereof in respect of risks referred to in subsection (a)(1) of this section.
The amount of reinsurance of liabilities under this subpart which the Corporation may issue shall not in the aggregate exceed at any one time an amount equal to the amount authorized for the maximum contingent liability outstanding at any one time under section 2195(a)(1) 1 of this title. All reinsurance issued by the Corporation under this subsection shall require that the reinsured party retain for his own account specified portions of liability, whether first loss or otherwise.
(g) Pilot equity finance program
(1) Authority for pilot program
In order to study the feasibility and desirability of a program of equity financing, the Corporation is authorized to establish a 4-year pilot program under which it may, on the limited basis prescribed in paragraphs (2) through (5), purchase, invest in, or otherwise acquire equity or quasi-equity securities of any firm or entity, upon such terms and conditions as the Corporation may determine, for the purpose of providing capital for any project which is consistent with the provisions of this subpart, except that—
(A) the aggregate amount of the Corporation's equity investment with respect to any project shall not exceed 30 percent of the aggregate amount of all equity investment made with respect to such project at the time that the Corporation's equity investment is made, except for securities acquired through the enforcement of any lien, pledge, or contractual arrangement as a result of a default by any party under any agreement relating to the terms of the Corporation's investment; and
(B) the Corporation's equity investment under this subsection with respect to any project, when added to any other investments made or guaranteed by the Corporation under subsection (b) or (c) of this section with respect to such project, shall not cause the aggregate amount of all such investment to exceed, at the time any such investment is made or guaranteed by the Corporation, 75 percent of the total investment committed to such project as determined by the Corporation.
The determination of the Corporation under subparagraph (B) shall be conclusive for purposes of the Corporation's authority to make or guarantee any such investment.
(2) Equity authority limited to projects in sub-Saharan Africa and Caribbean basin and marine transportation projects globally
Equity investments may be made under this subsection only in projects in countries eligible for financing under this subpart that are countries in sub-Saharan Africa or countries designated as beneficiary countries under
(3) Additional criteria
In making investment decisions under this subsection, the Corporation shall give preferential consideration to projects sponsored by or significantly involving United States small business or cooperatives. The Corporation shall also consider the extent to which the Corporation's equity investment will assist in obtaining the financing required for the project.
(4) Disposition of equity interest
Taking into consideration, among other things, the Corporation's financial interests and the desirability of fostering the development of local capital markets in less developed countries, the Corporation shall endeavor to dispose of any equity interest it may acquire under this subsection within a period of 10 years from the date of acquisition of such interest.
(5) Implementation
To the extent provided in advance in appropriations Acts, the Corporation is authorized to create such legal vehicles as may be necessary for implementation of its authorities, which legal vehicles may be deemed non-Federal borrowers for purposes of the Federal Credit Reform Act of 1990 [
(6) Consultations with Congress
The Corporation shall consult annually with the Committee on Foreign Affairs of the House of Representatives and the Committee on Foreign Relations of the Senate on the implementation of the pilot equity finance program established under this subsection.
(
References in Text
The Federal Credit Reform Act of 1990, referred to in subsec. (g)(5), is title V of
Codification
Amendment by
In subsec. (c), "
Amendments
1999—Subsec. (g).
Subsec. (g)(2).
Subsec. (g)(5).
1992—Subsec. (g)(5).
1989—Subsec. (e).
1988—Subsec. (c).
Subsec. (f).
Subsec. (g).
1985—Subsec. (a)(1)(D).
Subsec. (a)(4).
Subsec. (b).
Subsec. (f)(2).
1981—Subsec. (a)(1)(C).
Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(4).
Subsec. (b).
Subsec. (f)(1).
Subsec. (f)(4).
1978—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(4) to (7).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (f)(1).
1974—Subsec. (a)(2).
Subsec. (a)(4) to (7).
Subsec. (f).
Change of Name
Committee on Foreign Affairs of House of Representatives treated as referring to Committee on International Relations of House of Representatives by section 1(a) of
Effective Date of 1999 Amendment
Transfer of Functions
Functions vested by law (including reorganization plan) in Bureau of the Budget or Director of Bureau of the Budget transferred to President of the United States by section 101 of 1970 Reorg. Plan No. 2, eff. July 1, 1970, 35 F.R. 7959,
Appropriation of Moneys in Advance as Requisite to Purchases, Investments, or Other Acquisitions of Equity by Fund Created Under Pilot Equity Finance Program
Section 555 of
Section Referred to in Other Sections
This section is referred to in
1 See References in Text note below.
§2194a. Contract authority of Corporation; specific authorization in appropriation Acts required
The authority of the Overseas Private Investment Corporation to enter into contracts under
(
Codification
Section was enacted as part of the Overseas Private Investment Corporation Amendments of 1981, and not as part of the Foreign Assistance Act of 1961 which comprises this chapter.
§2194b. Enhancing private political risk insurance industry
(a) Cooperative programs
In order to encourage greater availability of political risk insurance for eligible investors by enhancing the private political risk insurance industry in the United States, and to the extent consistent with this subpart, the Corporation shall undertake programs of cooperation with such industry, and in connection with such programs may engage in the following activities:
(1) Utilizing its statutory authorities, encourage the development of associations, pools, or consortia of United States private political risk insurers.
(2) Share insurance risks (through coinsurance, contingent insurance, or other means) in a manner that is conducive to the growth and development of the private political risk insurance industry in the United States.
(3) Notwithstanding
(b) Advisory group
(1) Establishment and membership
The Corporation shall establish a group to advise the Corporation on the development and implementation of the cooperative programs under this section. The group shall be appointed by the Board and shall be composed of up to 12 members, including the following:
(A) Up to seven persons from the private political risk insurance industry, of whom no fewer than two shall represent private political risk insurers, one shall represent private political risk reinsurers, and one shall represent insurance or reinsurance brokerage firms.
(B) Up to four persons, other than persons described in subparagraph (A), who are purchasers of political risk insurance.
(2) Functions
The Corporation shall call upon members of the advisory group, either collectively or individually, to advise it regarding the capability of the private political risk insurance industry to meet the political risk insurance needs of United States investors, and regarding the development of cooperative programs to enhance such capability.
(3) Meetings
The advisory group shall meet not later than September 30, 1989, and at least annually thereafter. The Corporation may from time to time convene meetings of selected members of the advisory group to address particular questions requiring their specialized knowledge.
(4) Federal Advisory Committee Act
The advisory group shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.).
(
References in Text
The Federal Advisory Committee Act, referred to in subsec. (b)(4), is
Codification
Amendment by
Amendments
1988—
Section Referred to in Other Sections
This section is referred to in
§2195. Issuing authority, direct investment authority and reserves
(a) Issuing authority
(1) Insurance and financing
(A) The maximum contingent liability outstanding at any one time pursuant to insurance issued under
(B) Subject to spending authority provided in appropriations Acts pursuant to
(2) Termination of authority
The authority of subsections (a), (b), and (c) of
(b) Repealed. Pub. L. 102–549, title I, §104(a)(3), Oct. 28, 1992, 106 Stat. 3652
(c) Insurance Reserve; Guaranty Reserve
There shall be established in the Treasury of the United States an insurance and guaranty fund, which shall have separate accounts to be known as the Insurance Reserve and the Guaranty Reserve, which reserves shall be available for discharge of liabilities, as provided in subsection (d) of this section, until such time as all such liabilities have been discharged or have expired or until all such reserves have been expended in accordance with the provisions of this section. Such fund shall be funded by: (1) the funds heretofore available to discharge liabilities under predecessor guaranty authority (including housing guaranty authorities), less both the amount made available for housing guaranty programs pursuant to
(d) Priority of funds used to discharge liabilities
Any payments made to discharge liabilities under investment insurance or reinsurance issued under
(e) Reserves from predecessor guaranty authority
There is hereby authorized to be transferred to the Corporation at its call, for the purposes specified in
(f) Authorization of appropriations; issuance, etc., of obligations by Corporation for purchase by Secretary of the Treasury
There are authorized to be appropriated to the Corporation, to remain available until expended, such amounts as may be necessary from time to time to replenish or increase the insurance and guaranty fund, to discharge the liabilities under insurance, reinsurance, or guaranties issued by the Corporation or issued under predecessor guaranty authority, or to discharge obligations of the Corporation purchased by the Secretary of the Treasury pursuant to this subsection. However, no appropriations shall be made to augment the Insurance Reserve until the amount of funds in the Insurance Reserve is less than $25,000,000. Any appropriations to augment the Insurance Reserve shall then only be made either pursuant to specific authorization enacted after August 27, 1974, or to satisfy the full faith and credit provision of
(
Codification
Amendment by
In subsec. (f), "
Amendments
1999—Subsec. (a)(2).
1997—Subsec. (a).
"(1)
"(2)
1996—Subsec. (a)(3).
1994—Subsec. (a)(1).
Subsec. (a)(2).
"(A) The maximum contingent liability outstanding at any one time pursuant to guarantees issued under
"(B) Subject to spending authority provided in appropriations Acts, pursuant to
"(i) to transfer $9,800,000, or such sums as are necessary, from its noncredit account revolving fund to pay for the subsidy cost of a program level for the loan and loan guarantee program under subsections (b) and (c) of
"(ii) to transfer such sums as are necessary from its noncredit account revolving fund to pay for the subsidy cost of a program level for the loan and loan guarantee program under subsections (b) and (c) of
Subsec. (a)(3).
Subsec. (g).
"(1) $8,128,000 for fiscal year 1993; and
"(2) $11,000,000 for fiscal year 1994."
1992—
Subsec. (a).
"(1) The maximum contingent liability outstanding at any one time pursuant to insurance issued under
"(2) The maximum contingent liability outstanding at any one time pursuant to guaranties issued under
"(3) The Corporation shall not make any commitment to issue any guaranty which would result in a reserve less than 25 per centum of the maximum contingent liability then outstanding against guaranties issued or commitments made pursuant to
"(4) The Congress, in considering the budget programs transmitted by the President for the Corporation, pursuant to
"(5) Subject to paragraphs (2), (3), and (4), the Corporation shall issue guaranties under
"(6) The authority of section 2194(a) and (b) of this title shall continue until September 30, 1992."
Subsec. (b).
Subsec. (g).
1988—Subsec. (a)(2).
Subsec. (a)(5).
Subsec. (a)(6).
Subsec. (b).
1985—Subsec. (a)(5).
Subsec. (c).
Subsec. (d).
1981—Subsec. (a)(2).
Subsec. (a)(3).
Subsec. (a)(4).
Subsec. (a)(5).
Subsec. (b).
1978—Subsec. (a)(2).
Subsec. (a)(4).
1974—Subsec. (a)(4).
Subsec. (d).
Subsec. (f).
1973—Subsec. (a)(4).
Section Referred to in Other Sections
This section is referred to in
1 So in original. Probably should be "section".
§2196. Income and revenues
In order to carry out the purposes of the Corporation, all revenues and income transferred to or earned by the Corporation, from whatever source derived, shall be held by the Corporation and shall be available to carry out its purposes, including without limitation—
(a) payment of all expenses of the Corporation, including investment promotion expenses;
(b) transfers and additions to the insurance or guaranty reserves, the Direct Investment Fund established pursuant to
(c) payment of dividends, on capital stock, which shall consist of and be paid from net earnings of the Corporation after payments, transfers, and additions under subsections (a) and (b) hereof.
(
Section Referred to in Other Sections
This section is referred to in
§2197. General provisions relating to insurance, guaranty, financing, and reinsurance programs
(a) Scope
Insurance, guaranties, and reinsurance issued under this subpart shall cover investment made in connection with projects in any less developed friendly country or area with the government of which the President of the United States has agreed to institute a program for insurance, guaranties, or reinsurance.
(b) Protection of interest
The Corporation shall determine that suitable arrangements exist for protecting the interest of the Corporation in connection with any insurance, guaranty or reinsurance issued under this subpart, including arrangements concerning ownership, use, and disposition of the currency, credits, assets, or investments on account of which payment under such insurance, guaranty or reinsurance is to be made, and any right, title, claim, or cause of action existing in connection therewith.
(c) Guaranties as obligations backed by full faith and credit of United States
All guaranties issued prior to July 1, 1956, all guaranties issued under sections 1872(b) 1 and 1933(b) 1 of this title, all guaranties heretofore issued pursuant to prior guaranty authorities repealed by the Foreign Assistance Act of 1969, and all insurance, reinsurance and guaranties issued pursuant to this subpart shall constitute obligations, in accordance with the terms of such insurance, reinsurance or guaranties, of the United States of America and the full faith and credit of the United States of America is hereby pledged for the full payment and performance of such obligations.
(d) Fees
(1) In general
Fees may be charged for providing insurance, reinsurance, financing, and other services under this subpart in amounts to be determined by the Corporation. In the event fees charged for insurance, reinsurance, financing, or other services are reduced, fees to be paid under existing contracts for the same type of insurance, reinsurance, financing, or services and for similar guarantees issued under predecessor guarantee authority may be reduced.
(2) Credit transaction costs
Project-specific transaction costs incurred by the Corporation relating to loan obligations or loan guarantee commitments covered by the provisions of the Federal Credit Reform Act of 1990 [
(3) Noncredit transaction costs
Fees paid for the project-specific transaction costs and other direct costs associated with services provided to specific investors or potential investors pursuant to
(e) Maximum term of obligation
No insurance, guaranty, or reinsurance of any equity investment shall extend beyond twenty years from the date of issuance.
(f) Limitations on amounts
Compensation for insurance, reinsurance, or guaranties issued under this subpart shall not exceed the dollar value, as of the date of the investment, of the investment made in the project with the approval of the Corporation plus interest, earnings, or profits actually accrued on such investment to the extent provided by such insurance, reinsurance, or guaranty, except that the Corporation may provide that (1) appropriate adjustments in the insured dollar value be made to reflect the replacement cost of project assets, (2) compensation for a claim of loss under insurance of an equity investment may be computed on the basis of the net book value attributable to such equity investment on the date of loss, and (3) compensation for loss due to business interruption may be computed on a basis to be determined by the Corporation which reflects amounts lost. Notwithstanding the preceding sentence, the Corporation shall limit the amount of direct insurance and reinsurance issued by it under
(g) Fraud or misrepresentation
No payment may be made under any guaranty, insurance, or reinsurance issued pursuant to this subpart for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(h) Limits of obligation
Insurance, guaranties, or reinsurance of a loan or equity investment of an eligible investor in a foreign bank, finance company, or other credit institution shall extend only to such loan or equity investment and not to any individual loan or equity investment made by such foreign bank, finance company, or other credit institution.
(i) Claims settlement
Claims arising as a result of insurance, reinsurance, or guaranty operations under this subpart or under predecessor guaranty authority may be settled, and disputes arising as a result thereof may be arbitrated with the consent of the parties, on such terms and conditions as the Corporation may determine. Payment made pursuant to any such settlement, or as a result of an arbitration award, shall be final and conclusive notwithstanding any other provision of law.
(j) Presumption of compliance
Each guaranty contract executed by such officer or officers as may be designated by the Board shall be conclusively presumed to be issued in compliance with the requirements of this chapter.
(k) Balance of payments
In making a determination to issue insurance, guaranties, or reinsurance under this subpart, the Corporation shall consider the possible adverse effect of the dollar investment under such insurance, guaranty, or reinsurance upon the balance of payments of the United States.
(l) Convictions under Foreign Corrupt Practices Act of 1977; prohibition on payments for losses resulting from unlawful activities; suspension from eligibility of receipt of financial support
(1) No payment may be made under any insurance or reinsurance which is issued under this subpart on or after April 24, 1978, for any loss occurring with respect to a project, if the preponderant cause of such loss was an act by the investor seeking payment under this subpart, by a person possessing majority ownership and control of the investor at the time of the act, or by any agent of such investor or controlling person, and a court of the United States has entered a final judgment that such act constituted a violation under the Foreign Corrupt Practices Act of 1977.
(2) Not later than 120 days after April 24, 1978, the Corporation shall adopt regulations setting forth appropriate conditions under which any person convicted under the Foreign Corrupt Practices Act of 1977 for an offense related to a project insured or otherwise supported by the Corporation shall be suspended, for a period of not more than five years, from eligibility to receive any insurance, reinsurance, guaranty, loan, or other financial support authorized by this subpart.
(m) Notification of countries of environmental restrictions on certain activities
(1) Before finally providing insurance, reinsurance, guarantees, or financing under this subpart for any environmentally sensitive investment in connection with a project in a country, the Corporation shall notify appropriate government officials of that country of—
(A) all guidelines and other standards adopted by the International Bank for Reconstruction and Development and any other international organization relating to the public health or safety or the environment which are applicable to the project; and
(B) to the maximum extent practicable, any restriction under any law of the United States relating to public health or safety or the environment that would apply to the project if the project were undertaken in the United States.
The notification under the preceding sentence shall include a summary of the guidelines, standards, and restrictions referred to in subparagraphs (A) and (B), and may include any environmental impact statement, assessment, review, or study prepared with respect to the investment pursuant to
(2) Before finally providing insurance, reinsurance, guarantees, or financing for any investment subject to paragraph (1), the Corporation shall take into account any comments it receives on the project involved.
(3) On or before September 30, 1986, the Corporation shall notify appropriate government officials of a country of the guidelines, standards, and legal restrictions described in paragraph (1) that apply to any project in that country—
(A) which the Corporation identifies as potentially posing major hazards to public health and safety or the environment; and
(B) for which the Corporation provided insurance, reinsurance, guarantees, or financing under this subpart before December 23, 1985, and which is in the Corporation's portfolio on that date.
(n) Penalties for fraud
Whoever knowingly makes any false statement or report, or willfully overvalues any land, property, or security, for the purpose of influencing in any way the action of the Corporation with respect to any insurance, reinsurance, guarantee, loan, equity investment, or other activity of the Corporation under
(o) Use of local currencies
Direct loans or investments made in order to preserve the value of funds received in inconvertible foreign currency by the Corporation as a result of activities conducted pursuant to
(
References in Text
The Foreign Assistance Act of 1969, referred to in subsec. (c), is
The Federal Credit Reform Act of 1990, referred to in subsec. (d)(2), is title V of
This chapter, referred to in subsec. (j), was in the original "this Act", meaning
The Foreign Corrupt Practices Act of 1977, referred to in subsec. (l), is title I of
Codification
Amendment by
Amendments
1992—Subsec. (d).
Subsecs. (n), (o).
1988—
1985—Subsec. (f).
Subsec. (m).
1981—Subsec. (f).
1978—Subsec. (f).
Subsec. (l).
1974—Subsecs. (a) to (c).
Subsec. (d).
Subsec. (e). Pub. 93–390, §2(4)(E), inserted reference to reinsurance.
Subsec. (f).
Subsec. (g).
Subsecs. (h) to (k).
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
1 See References in Text note below.
§2198. Definitions
As used in this subpart—
(a) the term "investment" includes any contribution or commitment of funds, commodities, services, patents, processes, or techniques, in the form of (1) a loan or loans to an approved project, (2) the purchase of a share of ownership in any such project, (3) participation in royalties, earnings, or profits of any such project, and (4) the furnishing of commodities or services pursuant to a lease or other contract;
(b) the term "expropriation" includes, but is not limited to, any abrogation, repudiation, or impairment by a foreign government of its own contract with an investor with respect to a project, where such abrogation, repudiation, or impairment is not caused by the investor's own fault or misconduct, and materially adversely affects the continued operation of the project;
(c) the term "eligible investor" means: (1) United States citizens; (2) corporations, partnerships, or other associations including nonprofit associations, created under the laws of the United States, any State or territory thereof, or the District of Columbia, and substantially beneficially owned by United States citizens; and (3) foreign corporations, partnerships, of other associations wholly owned by one or more such United States citizens, corporations, partnerships, or other associations: Provided, however, That the eligibility of such foreign corporation shall be determined without regard to any shares, in aggregate less than 5 per centum of the total of issued and subscribed share capital, held by other than the United States owners: Provided further, That in the case of any loan investment a final determination of eligibility may be made at the time the insurance or guaranty is issued; in all other cases, the investor must be eligible at the time a claim arises as well as at the time the insurance or guaranty is issued;
(d) the term "noncredit account revolving fund" means the account in which funds under
(e) the term "noncredit activities" means all activities of the Corporation other than its loan guarantee program under
(f) the term "predecessor guaranty authority" means prior guaranty authorities (other than housing guaranty authorities) repealed by the Foreign Assistance Act of 1969, and sections 1509(b)(3), 1872(b), and 1933(b) 3 of this title (exclusive of authority relating to informational media guaranties).
(
References in Text
The Foreign Assistance Act of 1969, referred to in subsec. (f), is
Amendments
1992—Subsecs. (c) to (f).
1985—Subsec. (c)(2).
1981—Subsec. (a).
1972—Subsec. (c).
Section Referred to in Other Sections
This section is referred to in
1 So in original. The word "and" probably should not appear.
2 So in original. Probably should be followed by "and".
3 See References in Text note below.
§2199. General provisions and powers
(a) Place of residence
The Corporation shall have its principal office in the District of Columbia and shall be deemed, for purposes of venue in civil actions, to be a resident thereof.
(b) Transfer of prior obligations, etc.; administration prior to transfer
The President shall transfer to the Corporation, at such time as he may determine, all obligations, assets and related rights and responsibilities arising out of, or related to, predecessor programs and authorities similar to those provided for in
(c) Audits of the Corporation
(1) The Corporation shall be subject to the applicable provisions of
(2) An independent certified public accountant shall perform a financial and compliance audit of the financial statements of the Corporation at least once every three years, in accordance with generally accepted Government auditing standards for a financial and compliance audit, as issued by the Comptroller General. The independent certified public accountant shall report the results of such audit to the Board. The financial statements of the Corporation shall be presented in accordance with generally accepted accounting principles. These financial statements and the report of the accountant shall be included in a report which contains, to the extent applicable, the information identified in
(3) In lieu of the financial and compliance audit required by paragraph (2), the General Accounting Office shall, if the Office considers it necessary or upon the request of the Congress, audit the financial statements of the Corporation in the manner provided in paragraph (2). The Corporation shall reimburse the General Accounting Office for the full cost of any audit conducted under this paragraph.
(4) All books, accounts, financial records, reports, files, workpapers, and property belonging to or in use by the Corporation and the accountant who conducts the audit under paragraph (2), which are necessary for purposes of this subsection, shall be made available to the representatives of the General Accounting Office.
(d) Powers of Corporation
To carry out the purposes of this subpart, the Corporation is authorized to adopt and use a corporate seal, which shall be judicially noticed; to sue and be sued in its corporate name; to adopt, amend, and repeal bylaws governing the conduct of its business and the performance of the powers and duties granted to or imposed upon it by law; to acquire, hold or dispose of, upon such terms and conditions as the Corporation may determine, any property, real, personal, or mixed, tangible or intangible, or any interest therein; to invest funds derived from fees and other revenues in obligations of the United States and to use the proceeds therefrom, including earnings and profits, as it shall deem appropriate; to indemnify directors, officers, employees and agents of the Corporation for liabilities and expenses incurred in connection with their Corporation activities; notwithstanding any other provision of law, to represent itself or to contract for representation in all legal and arbitral proceedings; to enter into limited-term contracts with nationals of the United States for personal services to carry out activities in the United States and abroad under subsections (d) and (e) of
(e) Reviews, investigations, and inspections by Inspector General of Agency for International Development
The Inspector General of the Agency for International Development (1) may conduct reviews, investigations, and inspections of all phases of the Corporation's operations and activities and (2) shall conduct all security activities of the Corporation relating to personnel and the control of classified material. With respect to his responsibilities under this subsection, the Inspector General shall report to the Board. The agency primarily responsible for administering subchapter I of this chapter shall be reimbursed by the Corporation for all expenses incurred by the Inspector General in connection with his responsibilities under this subsection.
(f) Programs for Yugoslavia, Poland, Hungary, Romania, the People's Republic of China, or Pakistan; national interest
Except for the provisions of this subpart, no other provision of this chapter or any other law shall be construed to prohibit the operation in Yugoslavia, Poland, Hungary, or any other East European country, or the People's Republic of China, or Pakistan of the programs authorized by this subpart, if the President determines that the operation of such program in such country is important to the national interest.
(g) Environmental impact assessments
The requirements of
(h) Preparation, maintenance, and contents of development impact profile for investment projects; development of criteria for evaluating projects
In order to carry out the policy set forth in paragraph (1) of the second undesignated paragraph of
(i) Observance of and respect for human rights and fundamental freedoms as considerations for conduct of assistance programs, etc.; provisions applicable for determinations; exceptions
The Corporation shall take into account in the conduct of its programs in a country, in consultation with the Secretary of State, all available information about observance of and respect for human rights and fundamental freedoms in such country and the effect the operation of such programs will have on human rights and fundamental freedoms in such country. The provisions of
(j) Exemption from taxation
The Corporation, including its franchise, capital, reserves, surplus, advances, intangible property, and income, shall be exempt from all taxation at any time imposed by the United States, by any territory, dependency, or possession of the United States, or by any State, the District of Columbia, or any county, municipality, or local taxing authority.
(k) Publication of policy guidelines
The Corporation shall publish, and make available to applicants for insurance, reinsurance, guarantees, financing, or other assistance made available by the Corporation under this subpart, the policy guidelines of the Corporation relating to its programs.
(
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
Codification
Amendment by
Amendments
1997—Subsec. (f).
1992—Subsec. (d).
1990—Subsec. (f).
1989—Subsec. (f).
1988—Subsec. (f).
Subsec. (g).
1985—Subsec. (c).
Subsec. (g).
Subsecs. (j), (k).
1981—Subsec. (d).
Subsec. (e).
Subsecs. (f) to (l).
1980—Subsec. (g).
1978—Subsec. (b).
Subsec. (d).
Subsecs. (i) to (k).
Subsec. (l).
1974—Subsec. (b).
Subsec. (h).
1972—Subsec. (d).
Subsec. (g).
Effective Date of 1978 Amendment
Amendment by
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Termination of Advisory Councils
Advisory councils in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a council established by the President or an officer of the Federal Government, such council is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a council established by the Congress, its duration is otherwise provided by law. See sections 3(2) and 14 of
Enhancement of Nongovernmental Sector in Poland and Hungary
Section 302(b) of
Avoidance of Duplicative Amendments
Section 302(c) of
Section Referred to in Other Sections
This section is referred to in
§2200. Small business development in less developed friendly countries or areas; encouragement by other Federal departments, etc., of broadened participation by United States small business cooperatives and investors; project funding
The Corporation shall undertake, in cooperation with appropriate departments, agencies, and instrumentalities of the United States as well as private entities and others, to broaden the participation of United States small business, cooperatives, and other small United States investors in the development of small private enterprise in less developed friendly countries or areas. The Corporation shall allocate up to 50 per cent of its annual net income, after making suitable provision for transfers and additions to reserves, to assist and facilitate the development of projects consistent with the provisions of this section. Such funds may be expended, notwithstanding the requirements of
(
Prior Provisions
A prior section 2200,
Amendments
1985—
§2200a. Report to Congress
(a) Annual report
After the end of each fiscal year, the Corporation shall submit to the Congress a complete and detailed report of its operations during such fiscal year. Such report shall include—
(1) an assessment, based upon the development impact profiles required by
(2) a description of any project for which the Corporation—
(A) refused to provide any insurance, reinsurance, guaranty, financing, or other financial support, on account of violations of human rights referred to in
(B) notwithstanding such violations, provided such insurance, reinsurance, guaranty, financing, or financial support, on the basis of a determination (i) that the project will directly benefit the needy people in the country in which the project is located, or (ii) that the national security interest so requires.
(b) Effect of all projects on employment in United States to be included in annual report
(1) Each annual report required by subsection (a) of this section shall contain projections of the effects on employment in the United States of all projects for which, during the preceding fiscal year, the Corporation initially issued any insurance, reinsurance, or guaranty or made any direct loan. Each such report shall include projections of—
(A) the amount of United States exports to be generated by those projects, both during the start-up phase and over a period of years;
(B) the final destination of the products to be produced as a result of those projects; and
(C) the impact such production will have on the production of similar products in the United States with regard to both domestic sales and exports.
(2) The projections required by this subsection shall be based on an analysis of each of the projects described in paragraph (1).
(3) In reporting the projections on employment required by this subsection, the Corporation shall specify, with respect to each project—
(A) any loss of jobs in the United States caused by the project, whether or not the project itself creates other jobs;
(B) any jobs created by the project; and
(C) the country in which the project is located, and the economic sector involved in the project.
No proprietary information may be disclosed under this paragraph.
(c) Repealed. Pub. L. 100–461, title V, §555, Oct. 1, 1988, 102 Stat. 2268–36
(d) Maintenance of records
The Corporation shall maintain as part of its records—
(1) all information collected in preparing the report required by subsection (c) of this section (as in effect before October 1, 1988), whether the information was collected by the Corporation itself or by a contractor; and
(2) a copy of the analysis of each project analyzed in preparing the reports required either by subsection (b) of this section, or by subsection (c) of this section (as in effect before October 1, 1988).
(e) Assessment of cooperative political risk insurance program
Each annual report required by subsection (a) of this section shall include an assessment of programs implemented by the Corporation under
(1) The nature and dollar value of political risk insurance provided by private insurers in conjunction with the Corporation, which the Corporation was not permitted to provide under this subpart.
(2) The nature and dollar value of political risk insurance provided by private insurers in conjunction with the Corporation, which the Corporation was permitted to provide under this subpart.
(3) The manner in which such private insurers and the Corporation cooperated in recovery efforts and claims management.
(f) Information not required to be made available to public excluded from reports
Subsections (b) and (e) of this section do not require the inclusion in any report submitted pursuant to those subsections of any information which would not be required to be made available to the public pursuant to
(
Codification
Amendment by
Amendments
1992—Subsec. (b)(2), (3).
"(A) those projects which are projected to have a positive effect on employment in the United States and those projects which are projected to have a negative effect on employment in the United States are grouped separately; and
"(B) there is set forth for each such grouping the key characteristics of the projects within that grouping, including the number of projects in each economic sector, the countries in which the projects in each economic sector are located, and the projected level of the impact of the projects in each economic sector on employment in the United States and on United States trade."
1988—Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(2).
Subsec. (e).
Subsec. (f).
1985—
1981—
1978—Subsec. (a).
Subsec. (b).
1974—Subsec. (b).
Report to Congress Not Later Than June 30, 1982, on Methods for Estimating the Impact on Investments if Insurance or Other Support is Not Provided
Section 9(b) of
Section Referred to in Other Sections
This section is referred to in
§2200b. Prohibition on noncompetitive awarding of insurance contracts on OPIC supported exports
(a) Requirement for certification
(1) In general
Except as provided in paragraph (3), the investor on whose behalf insurance, reinsurance, guaranties, or other financing is provided under this subpart with respect to a project shall be required to certify to the Corporation that any contract for the export of goods as part of that project will include a clause requiring that United States insurance companies have a fair and open competitive opportunity to provide insurance against risk of loss of such export.
(2) When certification must be made
The investor shall be required, in every practicable case, to so certify before the insurance, reinsurance, guarantee, or other financing is provided. In any case in which such a certification is not made in advance, the investor shall include in the certification the reasons for the failure to make a certification in advance.
(3) Exception
Paragraph (1) does not apply with respect to an investor who does not, because of the nature of the investment, have a controlling interest in fact in the project in question.
(b) Reports by United States Trade Representative
The United States Trade Representative shall review the actions of the Corporation under subsection (a) of this section and, after consultation with representatives of United States insurance companies, shall report to the Congress in the report required by
(c) Definitions
For purposes of this section—
(1) the term "United States insurance company" includes—
(A) an individual, partnership, corporation, holding company, or other legal entity which is authorized, or in the case of a holding company, subsidiaries of which are authorized, by a State to engage in the business of issuing insurance contracts or reinsuring the risk underwritten by insurance companies; and
(B) foreign operations, branches, agencies, subsidiaries, affiliates, or joint ventures of any entity described in subparagraph (A);
(2) United States insurance companies shall be considered to have had a "fair and open competitive opportunity to provide insurance" if they—
(A) have received notice of the opportunity to provide insurance; and
(B) have been evaluated on a nondiscriminatory basis; and
(3) the term "State" includes the District of Columbia and any commonwealth, territory, or possession of the United States.
(
Prior Provisions
A prior section 2200b,
subpart v—disadvantaged children in asia
§2201. Assistance to disadvantaged children in Asia
(a) Congressional findings
The Congress recognizes the humanitarian needs of disadvantaged children in Asian countries where there has been or continues to be a heavy presence of United States military and related personnel in recent years. Moreover, the Congress finds that inadequate provision has been made for the care and welfare of such disadvantaged children, particularly those fathered by the 1 United States citizens.
(b) Authority of President
Accordingly, the President is authorized to expend up to $3,000,000 of funds made available under part I of this subchapter, in addition to funds otherwise available for such purposes, to help meet the needs of these disadvantaged children in Asia by assisting in the expansion and improvement of orphanages, hostels, day care centers, school feeding programs, and health, education, and welfare programs. Assistance provided under this section shall be furnished under the auspices of and by international organizations or private voluntary agencies operating within, and in cooperation with, the countries of Asia where these disadvantaged children reside.
(
References to Part I Deemed To Include Section 2293
References to part I of this subchapter are deemed to include a reference to
Prior Provisions
A prior section 2201,
Amendments
1985—Subsec. (b).
Effective Date of 1985 Amendment
Amendment by
Effective Date
Section effective Oct. 1, 1978, see section 605 of
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
subpart vi—alliance for progress
§§2211 to 2213. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2211,
Section 2212,
Section 2213,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
subpart vii—evaluation of programs
§2216. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
subpart viii—southeast asia multilateral and regional programs
§§2217, 2217a. Repealed. Pub. L. 95–424, title I, §102(g)(1)(A), Oct. 6, 1978, 92 Stat. 942
Section 2217,
Section 2217a,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
§2217b. Repealed. Pub. L. 90–137, pt. I, §107, Nov. 14, 1967, 81 Stat. 452
Section,
subpart ix—utilization of democratic institutions in development
Subpart Referred to in Other Sections
This subpart is referred to in
§2218. Utilization of democratic institutions in development
(a) Popular participation through encouragement of democratic institutions
In carrying out programs authorized in this part and part I of this subchapter, emphasis shall be placed on assuring maximum participation in the task of economic development on the part of the people of the developing countries, through the encouragement of democratic private and local governmental institutions.
(b) Human and intellectual resources; self-government through civic education and training in requisite skills
In order to carry out the purposes of this section programs under this part and part I of this subchapter shall—
(1) recognize the differing needs, desires, and capacities of the people of the respective developing countries and areas;
(2) use the intellectual resources of such countries and areas in conjunction with assistance provided under this chapter so as to encourage the development of indigenous institutions that meet their particular requirements for sustained economic and social progress; and
(3) support civic education and training in skills required for effective participation in governmental and political processes essential to self-government.
(c) Political, social, and related obstacles to development; democratic social and political trends
In the allocation of funds for research under this part and part I of this subchapter, emphasis shall be given to research designed to examine the political, social, and related obstacles to development in countries receiving assistance under subchapter I of this chapter. In particular, emphasis should be given to research designed to increase understanding of the ways in which development assistance can support democratic social and political trends in recipient countries.
(d) Implementation of objectives through application of experience gained from program evaluation
Emphasis shall also be given to the evaluation of relevant past and current programs under subchapter I of this chapter and to applying this experience so as to strengthen their effectiveness in implementing the objectives of this section.
(e) Inservice training programs
In order to carry out the purposes of this section, the agency primarily responsible for administering subchapter I of this chapter shall develop systematic programs of inservice training to familiarize its personnel with the objectives of this section and to increase their knowledge of the political and social aspects of development. In addition to other funds available for such purposes, not to exceed 1 per centum of the funds authorized to be appropriated for grant assistance under this part and part I of this subchapter may be used for carrying out the objectives of this subsection.
(
References in Text
This chapter, referred to in subsec. (b)(2), was in the original "this Act", meaning
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of
References to Part I Deemed To Include Section 2293
References to part I of this subchapter are deemed to include a reference to
Amendments
1978—Subsecs. (a), (b), (c), (e).
1968—Subsec. (c).
Subsec. (e).
1967—
Effective Date of 1978 Amendment
Amendment by
subpart x—programs relating to population growth and family planning
§§2219, 2219a. Repealed. Pub. L. 95–424, title I, §104(b), Oct. 6, 1978, 92 Stat. 947
Section 2219,
Section 2219a,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
subpart xi—food production targets and reports
§2220. Repealed. Pub. L. 95–424, title V, §502(d)(1), Oct. 6, 1978, 92 Stat. 959
Section,
Effective Date of Repeal
Repeal effective Oct. 1, 1978, see section 605 of
subpart xii—famine prevention and freedom from hunger
Subpart Referred to in Other Sections
This subpart is referred to in title 7 section 3124a.
§2220a. General provisions
(a) Congressional objectives and findings
The Congress declares that, in order to prevent famine and establish freedom from hunger, the United States should strengthen the capacities of the United States land-grant and other eligible universities in program-related agricultural institutional development and research, consistent with
The Congress so declares because it finds—
(1) that the establishment, endowment, and continuing support of land-grant universities in the United States by Federal, State, and county governments has led to agricultural progress in this country;
(2) that land-grant and other universities in the United States have demonstrated over many years their ability to cooperate with foreign agricultural institutions in expanding indigenous food production for both domestic and international markets;
(3) that, in a world of growing population with rising expectations, increased food production and improved distribution, storage, and marketing in the developing countries is necessary not only to prevent hunger but to build the economic base for growth, and moreover, that the greatest potential for increasing world food supplies is in the developing countries where the gap between food need and food supply is the greatest and current yields are lowest;
(4) that increasing and making more secure the supply of food is of greatest benefit to the poorest majority in the developing world;
(5) that research, teaching, and extension activities, and appropriate institutional development therefor are prime factors in increasing agricultural production abroad (as well as in the United States) and in improving food distribution, storage, and marketing;
(6) moreover, that agricultural research abroad has in the past and will continue in the future to provide benefits for agriculture in the United States and that increasing the availability of food of higher nutritional quality is of benefit to all; and
(7) that universities need a dependable source of Federal funding, as well as other financing, in order to expand, or in some cases to continue, their efforts to assist in increasing agricultural production in developing countries.
(b) Congressional objectives and declaration for collation of components to increase world food production
Accordingly, the Congress declares that, in order to prevent famine and establish freedom from hunger, various components must be brought together in order to increase world food production, including—
(1) strengthening the capabilities of universities to assist in increasing agricultural production in developing countries;
(2) institution-building programs for development of national and regional agricultural research and extension capacities in developing countries which need assistance;
(3) international agricultural research centers;
(4) contract research; and
(5) research program grants.
(c) University involvement, participation, and cooperation
The United States should—
(1) effectively involve the United States land-grant and other eligible universities more extensively in each component;
(2) provide mechanisms for the universities to participate and advise in the planning, development, implementation, and administration of each component; and
(3) assist such universities in cooperative joint efforts with—
(A) agricultural institutions in developing nations, and
(B) regional and international agricultural research centers,
directed to strengthening their joint and respective capabilities and to engage them more effectively in research, teaching, and extension activities for solving problems in food production, distribution, storage, marketing, and consumption in agriculturally underdeveloped nations.
(d) Universities
As used in this subpart, the term "universities" means those colleges or universities in each State, territory, or possession of the United States, or the District of Columbia, now receiving, or which may hereafter receive, benefits under the Act of July 2, 1862 (known as the First Morrill Act) [
(1) have demonstrable capacity in teaching, research, and extension activities in the agricultural sciences; and
(2) can contribute effectively to the attainment of the objectives of this subpart.
(e) Administrator
As used in this subpart, the term "Administrator" means the Administrator of the Agency for International Development.
(
References in Text
The First Morrill Act and the Second Morrill Act, referred to in subsec. (d), refer to acts July 2, 1862, ch. 130,
The National Sea Grant College and Program Act, referred to in subsec. (d), is title II of
Amendments
1978—Subsecs. (f), (g).
Effective Date of 1978 Amendment
Amendment by
International Food Reserve
"(a) The Congress finds that—
"(1) half a billion people suffer regularly from malnutrition or undernutrition;
"(2) even very modest shortfalls in crop production can result in greatly increased human suffering, and undercut the benefits of bilateral and multilateral assistance programs, in poor developing countries with chronic food deficits;
"(3) increasing variability in world food production and trade presents a serious threat not only to consumers but also to producers;
"(4) the World Food Conference recognized the urgent need for an international undertaking to achieve a system of world food security based largely upon strategic food reserves;
"(5) the Congress through legislation has repeatedly urged the President to negotiate with other nations to establish such a system of reserves;
"(6) although the nations of the world have agreed to begin discussions on a system of grain reserves to regulate food availability, agreement on a global network of nationally held reserves still eludes the international community;
"(7) while some progress has taken place in the United States in creating domestic farmer held reserves, the scale of such reserves does not insure adequate protection against fluctuations in world production and price; and
"(8) the United States, as the world's leading producer of foodstuffs, remains in a unique position to provide the leadership necessary to make world food security a reality.
"(b) It is therefore the sense of the Congress that the President should continue his efforts directed toward achievement of an agreement establishing an international network of nationally held grain reserves which provides for supply assurance to consumers and income security to producers."
Similar provisions were contained in the following prior authorization act:
Commission on Hunger and Malnutrition
Settlement of Debt Owed the United States
Section 321 of
Cooperation With Other Countries in Alleviating World Food Shortage; Emergency and Humanitarian Requirements
"(a) It is the sense of the Congress that the United States should participate fully in efforts to alleviate current and future food shortages which threaten the world. To this end, the President shall—
"(1) encourage, support, and expedite, studies relating to the long-range implications of the world food situation (including studies of national and world production, distribution, and utilization of agricultural commodities and other foodstuffs) and support the organizing of a world food conference under United Nations auspices in 1974;
"(2) request the member nations of the General Agreement on Tariffs and Trade to explore the means for assuring equitable access by all nations to national markets and mineral and agricultural resources;
"(3) consult and cooperate with appropriate international agencies, such as the Food and Agriculture Organization of the United Nations, in determining the need for, the feasibility of, and cost on an equitably-shared basis of, establishing an international system of strategic food reserves; and
"(4) report his findings and recommendations to the Congress on the implementation of this section no later than December 31, 1974.
"(b) It is further the sense of the Congress that—
"(1) in making assessments which would affect or relate to the level of domestic production, the Executive Branch should include in the estimates of overall utilization the expected demands for humanitarian food assistance through such programs as are carried out under the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) [
"(2) legislation providing increased flexibility for responding to emergency and humanitarian requirements for food assistance should be considered as promptly as possible to the end that the last sentence of section 401 of the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) [
§2220b. General authority
(a) Programs and activities affecting universities, agriculturally developing countries, and research
To carry out the purposes of this subpart, the President is authorized to provide assistance on such terms and conditions as he shall determine—
(1) to strengthen the capabilities of universities in teaching, research, and extension work to enable them to implement current programs authorized by paragraphs (2), (3), (4), and (5) of this subsection, and those proposed in the report required by
(2) to build and strengthen the institutional capacity and human resource skills of agriculturally developing countries so that these countries may participate more fully in the international agricultural problem-solving effort and to introduce and adapt new solutions to local circumstances;
(3) to provide program support for long-term collaborative university research, in the developing countries themselves to the maximum extent practicable, on food production, distribution, storage, marketing, and consumption;
(4) to involve universities more fully in the international network of agricultural science, including the international research centers, the activities of international organizations such as the United Nations Development Program and the Food and Agriculture Organization, and the institutions of agriculturally developing nations; and
(5) to provide program support for international agricultural research centers, to provide support for research projects identified for specific problem-solving needs, and to develop and strengthen national research systems in the developing countries.
(b) Programs and activities respecting university capabilities, benefiting domestic and nondomestic agriculture, and based on existing programs and institutions
Programs under this subpart shall be carried out so as to—
(1) utilize and strengthen the capabilities of universities in—
(A) developing capacity in the cooperating nation for classroom teaching in agriculture, plant and animal sciences, human nutrition, and vocational and domestic arts and other relevant fields appropriate to local needs;
(B) agricultural research to be conducted in the cooperating nations, at international agricultural research centers, or in the United States;
(C) the planning, initiation, and development of extension services through which information concerning agriculture and related subjects will be made available directly to farmers and farm families in the agriculturally developing nations by means of education and demonstration; or
(D) the exchange of educators, scientists, and students for the purpose of assisting in successful development in the cooperating nations;
(2) take into account the value to United States agriculture of such programs, integrating to the extent practicable the programs and financing authorized under this subpart with those supported by other Federal or State resources so as to maximize the contribution to the development of agriculture in the United States and in agriculturally developing nations; and
(3) whenever practicable, build on existing programs and institutions including those of the universities and the United States Department of Agriculture and the United States Department of Commerce.
(c) Activity objectives
To the maximum extent practicable, activities under this section shall—
(1) be directly related to the food and agricultural needs of developing countries;
(2) be carried out within the developing countries;
(3) be adapted to local circumstances;
(4) provide for the most effective interrelationship between research, education, and extension in promoting agricultural development in developing countries; and
(5) emphasize the improvement of local systems for delivering the best available knowledge to the small farmers of such countries.
(d) Function of Administrator
The President shall exercise his authority under this section through the Administrator.
(
Amendments
1979—Subsec. (a)(3).
Subsec. (c).
Effective Date of 1979 Amendment
Amendment by
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
§2220c. Board for International Food and Agricultural Development
(a) Establishment; terms and expenses of members
To assist in the administration of the programs authorized by this subpart, the President shall establish a permanent Board for International Food and Agricultural Development (hereafter in this subpart referred to as the "Board") consisting of seven members, not less than four to be selected from the universities. Terms of members shall be set by the President at the time of appointment. Members of the Board shall be entitled to such reimbursement for expenses incurred in the performance of their duties (including per diem in lieu of subsistence while away from their homes or regular place of business) as the President deems appropriate.
(b) General areas of responsibility
The Board's general areas of responsibility shall include, but not be limited to—
(1) participating in the planning, development, and implementation of,
(2) initiating recommendations for, and
(3) monitoring of,
the activities described in
(c) Specific, but not exclusive, duties
The Board's duties shall include, but not necessarily be limited to—
(1) participating in the formulation of basic policy, procedures, and criteria for project proposal review, selection, and monitoring;
(2) developing and keeping current a roster of universities—
(A) interested in exploring their potential for collaborative relationships with agricultural institutions, and with scientists working on significant programs designed to increase food production in developing countries,
(B) having capacity in the agricultural sciences,
(C) able to maintain an appropriate balance of teaching, research, and extension functions,
(D) having capacity, experience, and commitment with respect to international agricultural efforts, and
(E) able to contribute to solving the problems addressed by this subpart;
(3) recommending which developing nations could benefit from programs carried out under this subpart, and identifying those nations which have an interest in establishing or developing agricultural institutions which engage in teaching, research, or extension activities;
(4) reviewing and evaluating memorandums of understanding or other documents that detail the terms and conditions between the Administrator and universities participating in programs under this subpart;
(5) reviewing and evaluating agreements and activities authorized by this subpart and undertaken by universities to assure compliance with the purposes of this subpart;
(6) recommending to the Administrator the apportionment of funds under
(7) assessing the impact of programs carried out under this subpart in solving agricultural problems in the developing nations.
(d) Subordinate units; creation of Joint Research Committee, Joint Committee on Country Programs, and other units
The President may authorize the Board to create such subordinate units as may be necessary for the performance of its duties, including but not limited to the following:
(1) a Joint Research Committee to participate in the administration and development of the collaborative activities described in
(2) a Joint Committee on Country Programs which shall assist in the implementation of the bilateral activities described in
(e) Consultations in preparation of annual report and on agricultural development activities
In addition to any other functions assigned to and agreed to by the Board, the Board shall be consulted in the preparation of the annual report required by
(
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in
§2220d. Funds for programs and activities
(a) Funds available under section 2151a of this title unaffected by other provisions
The President is authorized to use any of the funds hereafter made available under
(b) Foreign currencies
Foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needs of the United States shall be used to the maximum extent possible in lieu of dollars in carrying out the provisions of this subpart.
(c) Other authorizations
Assistance authorized under this subpart shall be in addition to any allotments or grants that may be made under other authorizations.
(d) Disclosure of funds to Administrator; annual report
Universities may accept and expend funds from other sources, public and private, in order to carry out the purposes of this subpart. All such funds, both prospective and inhand, shall be periodically disclosed to the Administrator as he shall by regulation require, but no less often than in an annual report.
(
Amendments
1978—Subsec. (a).
Effective Date of 1978 Amendment
Amendment by
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
§2220e. Presidential report to Congress
The President shall transmit to the Congress, not later than April 1 of each year, a report detailing the activities carried out pursuant to this subpart during the preceding fiscal year and containing a projection of programs and activities to be conducted during the subsequent five fiscal years. Each report shall contain a summary of the activities of the Board established pursuant to
(
Delegation of Functions
For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under
Section Referred to in Other Sections
This section is referred to in