22 USC 9622 - Terms and conditions

Collapse to view only § 9622. Terms and conditions

§ 9621. Authorities relating to provision of support
§ 9622. Terms and conditions
§ 9623. Payment of losses
§ 9624. Termination

§ 9621. Authorities relating to provision of support

(a) In generalThe authorities in this subchapter shall only be exercised to—

(1) carry out of 1

1 So in original. The word “of” probably should not appear.

the policy of the United States in section 9611 of this title and the purpose of the Corporation in section 9612 of this title;

(2) mitigate risks to United States taxpayers by sharing risks with the private sector and qualifying sovereign entities through co-financing and structuring of tools; and

(3) ensure that support provided under this subchapter is additional to private sector resources by mobilizing private capital that would otherwise not be deployed without such support.

(b) Lending and guaranties

(1) In general

(2) Denomination

(3) Applicability of Federal Credit Reform Act of 1990

(1) In general

(2) Denomination

(3) Guidelines and criteriaThe Corporation shall develop guidelines and criteria to require that the use of the authority provided by paragraph (1) with respect to a project has a clearly defined development and foreign policy purpose, taking into account the following objectives:

(A) The support for the project would be more likely than not to substantially reduce or overcome the effect of an identified market failure in the country in which the project is carried out.

(B) The project would not have proceeded or would have been substantially delayed without the support.

(C) The support would meaningfully contribute to transforming local conditions to promote the development of markets, localized workforces, and partner country economic security.

(D) The support can be shown to be aligned with commercial partner incentives.

(E) The support can be shown to have significant developmental impact and will contribute to long-term commercial sustainability.

(F) The support furthers the policy of the United States described in section 9611 of this title.

(4) Limitations on equity investments

(A) Per project limit

(B) Total limit

(5) Sales and liquidation of position

(6) Timetable

(7) Corporate equity investment account

(A) Establishment

(B) PurposeThe Corporation shall—

(i) manage the Equity Investment Account in ways that demonstrate a commitment to pursuing catalytic investments in less developed countries in accordance with section 9612(c)(1) of this title and paragraph (1); and

(ii) collect data and information about the use of the Equity Investment Account to inform the Corporation’s record of returns on investments and reevaluation of equity investment subsidy rates prior to the termination of the authorities provided under this subchapter.

(D) Offsetting collections and funds

(E) Impact quotient

(d) Insurance and reinsurance

(e) Promotion of and support for private investment opportunities

(1) In general

(2) Contributions to costsThe Corporation shall, to the maximum extent practicable, require any person receiving funds under the authorities of this subsection to—

(A) share the costs of feasibility studies and other project planning services funded under this subsection; and

(B) reimburse the Corporation those funds provided under this section, if the person succeeds in project implementation.

(f) Special projects and programsThe Corporation may administer and manage special projects and programs in support of specific transactions undertaken by the Corporation—

(1) for the provision of post-investment technical assistance for existing projects of the Corporation, including programs of financial and advisory support that provide private technical, professional, or managerial assistance in the development of human resources, skills, technology, or capital savings; or

(2) subject to the nondelegable review and approval of the Board, by creating companies, corporations, and partnerships that advance both the development objectives and foreign policy interests outlined in the purpose of this division if, not later than 30 days prior to entering into an agreement or other arrangement to provide support pursuant to this section, the Chief Executive Officer—

(A) notifies the appropriate congressional committees; and

(B) includes in the notification required by subparagraph (A) a certification that such support—

(i) is designed to meet an exigent need that is critical to the national security interests of the United States; and

(ii) could not otherwise be secured utilizing the authorities under this section.

(g) Enterprise funds

(1) In general

(2) Private character of funds

(3) Purposes for which support may be providedThe Corporation, subject to the approval of the Board, may designate private, nonprofit organizations as eligible to receive support under this subchapter for the following purposes:

(A) To promote development of economic freedom and private sectors, including small- and medium-sized enterprises and joint ventures with the United States and host country participants.

(B) To facilitate access to credit to small- and medium-sized enterprises with sound business plans in countries where there is limited means of accessing credit on market terms.

(D) To attract foreign direct investment capital to further promote private sector development and economic freedom.

(E) To complement the work of the United States Agency for International Development and other donors to improve the overall business-enabling environment, financing the creation and expansion of the private business sector.

(F) To make financially sustainable investments designed to generate measurable social benefits and build technical capacity in addition to financial returns.

(4) Operation of funds

(A) Expenditures

(B) Administrative expenses

(5) Board of DirectorsEach enterprise fund established under this subsection should be governed by a Board of Directors comprised of private citizens of the United States or the host country, who—

(A) shall be appointed by the President after consultation with the chairmen and ranking members of the appropriate congressional committees; and

(B) have pursued careers in international business and have demonstrated expertise in international and emerging market investment activities.

(6) Majority member requirement

(7) ReportsNot later than one year after the date of the establishment of an enterprise fund under this subsection, and annually thereafter until the enterprise fund terminates in accordance with paragraph (10), the Board of Directors of the enterprise fund shall—

(A) submit to the appropriate congressional committees a report—

(i) detailing the administrative expenses of the enterprise fund during the year preceding the submission of the report;

(ii) describing the operations, activities, engagement with civil society and relevant local private sector entities, development objectives and outcomes, financial condition, and accomplishments of the enterprise fund during that year;

(iii) describing the results of any audit conducted under paragraph (8); and

(iv) describing how audits conducted under paragraph (8) are informing the operations and activities of the enterprise fund; and

(B) publish, on a publicly available internet website of the enterprise fund, each report required by subparagraph (A).

(8) Oversight

(A) Inspector general performance audits

(i) In general

(ii) ConsiderationIn conducting an audit under clause (i), the Inspector General shall assess whether the activities of the enterprise fund—(I) support the purposes described in paragraph (3);(II) result in profitable private sector investing; and(III) generate measurable social benefits.

(B) Recordkeeping requirementsThe Corporation shall ensure that each enterprise fund receiving support under this subsection—

(i) keeps separate accounts with respect to such support; and

(ii) maintains such records as may be reasonably necessary to facilitate effective audits under this paragraph.

(9) Return of funds to Treasury

(10) TerminationThe authority of an enterprise fund to provide support under this subsection shall terminate on the earlier of—

(A) the date that is 10 years after the date of the first expenditure of amounts from the enterprise fund; or

(B) the date on which the enterprise fund is liquidated.

(h) Supervision of support

(i) Small business development

(1) In general

(2) Outreach to minority-owned and women-owned businesses

(A) In generalThe Corporation shall collect data on the involvement of minority- and women-owned businesses in projects supported by the Corporation, including—

(i) the amount of insurance and financing provided by the Corporation to such businesses in connection with projects supported by the Corporation; and

(ii) to the extent such information is available, the involvement of such businesses in procurement activities conducted or supported by the Corporation.

(B) Inclusion in annual report

(Pub. L. 115–254, div. F, title II, § 1421, Oct. 5, 2018, 132 Stat. 3492; Pub. L. 119–60, div. H, title LXXXVII, §§ 8741, 8742, Dec. 18, 2025, 139 Stat. 1961, 1962.)

§ 9622. Terms and conditions

(a) In general

(b) RequirementsThe following requirements apply to support provided by the Corporation under this subchapter:

(1) The Corporation shall provide support using authorities under this subchapter only if it is necessary—

(A) to alleviate a credit market imperfection; or

(B) to achieve specified development or foreign policy objectives of the United States Government by providing support in the most efficient way to meet those objectives on a case-by-case basis.

(2) The final maturity of a loan made or guaranteed by the Corporation shall not exceed the lesser of—

(A) 25 years; or

(B) debt servicing capabilities of the project to be financed by the loan (as determined by the Corporation).

(3) The Corporation shall, with respect to providing any loan guaranty to a project, require the parties to the project to bear a risk of loss on the project in an amount equal to at least 20 percent of the amount of such guaranty. The Corporation shall continue to work with the President to streamline the process for securing waivers that would enable the Corporation to guarantee up to 100 percent of the amount of a loan, provided that risk of loss in the project borne by the parties to the project is equal to at least 20 percent of the guaranty amount.

(4) The Corporation may not make or guarantee a loan unless the Corporation determines that the borrower or lender is responsible and that adequate provision is made for servicing the loan on reasonable terms and protecting the financial interest of the United States.

(5) The interest rate for direct loans and interest supplements on guaranteed loans shall be set by reference to a benchmark interest rate (yield) on marketable Treasury securities or other widely recognized or appropriate benchmarks with a similar maturity to the loans being made or guaranteed, as determined in consultation with the Director of the Office of Management and Budget and the Secretary of the Treasury. The Corporation shall establish appropriate minimum interest rates for loans, guaranties, and other instruments as necessary.

(6) The minimum interest rate for new loans as established by the Corporation shall be adjusted periodically to take account of changes in the interest rate of the benchmark financial instrument.

(7)

(A) The Corporation shall set fees or premiums for support provided under this subchapter at levels that minimize the cost to the Government while supporting achievement of the objectives of support.

(B) The Corporation shall review fees for loan guaranties periodically to ensure that the fees assessed on new loan guaranties are at a level sufficient to cover the Corporation’s most recent estimates of its costs.

(8) Any loan guaranty provided by the Corporation shall be conclusive evidence that—

(A) the guaranty has been properly obtained;

(B) the loan qualified for the guaranty; and

(C) but for fraud or material misrepresentation by the holder of the guaranty, the guaranty is presumed to be valid, legal, and enforceable.

(9) The Corporation shall prescribe explicit standards for use in periodically assessing the credit risk of new and existing direct loans or guaranteed loans.

(10) The Corporation may not make loans or loan guaranties except to the extent that budget authority to cover the costs of the loans or guaranties is provided in advance in an appropriations Act, as required by section 661c of title 2.

(11) The Corporation shall rely upon specific standards to assess the developmental and strategic value of projects for which it provides support and should only provide the minimum level of support necessary in order to support such projects.

(12) Any loan or loan guaranty made by the Corporation should be provided on a senior basis or pari passu with other senior debt unless there is a substantive policy rationale to provide such support otherwise.

(1) In general

(2) Truth in lending policies

(3) Policy development requirementsIn developing such policies and practices required by paragraph (2), the Corporation shall—

(A) take into account any particular vulnerabilities generally faced by potential applicants or recipients of microlending and other forms of microfinance, such as lack of experience with lending or lack of financial literacy;

(B) develop and apply, generally, rules and terms to ensure Corporation-backed lending through an intermediary does not carry excessively punitive or disproportionate penalties for customers in default;

(C) ensure that such policies and practices include effective safeguards to prevent usurious or abusive lending by intermediaries, including in the provision of microfinance; and

(D) ensure the intermediary includes in any lending contract with microfinance borrowers that is supported by the Corporation an appropriate level of financial disclosure to the borrower, including—

(i) disclosures that explain in all material respects to the customer both lender and customer rights and obligations under the contract in language that is accessible to the customer;

(ii) the material loan terms and tenure of the contract;

(iii) the procedures and potential penalties or forfeitures in case of default;

(iv) information on privacy and personal data protection; and

(v) any other information that the Corporation determines is needed to inform the borrower of the material terms of the loan.

(4) Audit requirements

(Pub. L. 115–254, div. F, title II, § 1422, Oct. 5, 2018, 132 Stat. 3497; Pub. L. 119–60, div. H, title LXXXVII, § 8743, Dec. 18, 2025, 139 Stat. 1962.)

§ 9623. Payment of losses

(a) Payments for defaults on guaranteed loans

(1) In general

(2) Subrogation

(3) Recovery efforts

(b) Limitation on payments

(1) In general

(2) Exception

(A) In general

The Corporation may provide that—

(i) appropriate adjustments in the insured dollar value be made to reflect the replacement cost of project assets; and

(ii) compensation for a claim of loss under insurance of an equity investment under section 9621 of this title may be computed on the basis of the net book value attributable to the equity investment on the date of loss.

(3) Additional limitation

(A) In general

(B) Exception

(d) Rule of construction

(Pub. L. 115–254, div. F, title II, § 1423, Oct. 5, 2018, 132 Stat. 3498.)

§ 9624. Termination

(a) In general

(b) Termination of Corporation

(Pub. L. 115–254, div. F, title II, § 1424, Oct. 5, 2018, 132 Stat. 3499; Pub. L. 119–60, div. H, title LXXXVII, § 8744, Dec. 18, 2025, 139 Stat. 1963.)