Collapse to view only § 9624. Termination
- § 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
(c) Equity investments
(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.
(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
(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 programs
(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.
(C) To promote policies and practices conducive to economic freedom and private sector development.
(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.)
§ 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 the risk of loss in an amount equal to at least 20 percent of the guaranteed support by the Corporation in the project.
(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.
(Pub. L. 115–254, div. F, title II, § 1422, Oct. 5, 2018, 132 Stat. 3497.)
§ 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
(c) Actions by Attorney General
(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.)