12 U.S.C. § 635r — Establishment of tied aid credit program

Page 255 TITLE 12—BANKS AND BANKING § 635r ‘‘(A) The Administrator of the Agency for Inter- national Development shall transfer to the Director of the Trade and Development Program [now Trade and Development Agency] all records, contracts, applica- tions, and any other documents or information in con- nection with the functions transferred by virtue of the amendments made by subsection (c)(1) [amending sec- tions 635q and 635r of this title]. ‘‘(B) All determinations, regulations, and contracts— ‘‘(i) which have been issued, made, granted, or al- lowed to become effective by the President, the Agen- cy for International Development, or by a court of competent jurisdiction, in the performance of the functions transferred by virtue of the amendments made by subsection (c)(1), and ‘‘(ii) which are in effect at the time this section takes effect, shall continue in effect according to their terms until modified, terminated, superseded, set aside, or revoked in accordance with the law by the President, the Direc- tor of the Trade and Development Program [now Trade and Development Agency], or other authorized official, by a court of competent jurisdiction, or by operation of law. ‘‘(C)(i) The amendments made by subsection (c)(1) shall not affect any proceedings, including notices of proposed rulemaking, or any application for any finan- cial assistance, which is pending on the effective date of this section [Aug. 23, 1988] before the Agency for International Development in the exercise of functions transferred by virtue of the amendments made by sub- section (c)(1). Such proceedings and applications, to the extent that they relate to functions so transferred, shall be continued. ‘‘(ii) Orders shall be issued in such proceedings, ap- peals shall be taken therefrom, and payments shall be made pursuant to such orders, as if this section [amending sections 635q, 635r, and 635s of this title, sec- tion 5314 of Title 5, Government Organization and Em- ployees, and section 2421 of Title 22, Foreign Relations and Intercourse, and enacting provisions set out as a note under section 2421 of Title 22] had not been en- acted. Orders issued in any such proceedings shall con- tinue in effect until modified, terminated, superseded, or revoked by the Director of the Trade and Develop- ment Program [now Trade and Development Agency] or other authorized official, by a court of competent juris- diction, or by operation of law. ‘‘(iii) Nothing in this subparagraph shall be deemed to prohibit the discontinuance or modification of any such proceeding under the same terms and conditions and to the same extent that such proceeding could have been discontinued or modified if this section had not been enacted. ‘‘(iv) The Director of the Trade and Development Pro- gram [now Trade and Development Agency] is author- ized to issue regulations providing for the orderly transfer to the Trade and Development Program of pro- ceedings continued under this subparagraph. ‘‘(D) With respect to any function transferred by vir- tue of the amendments made by subsection (c)(1) and exercised on or after the effective date of this section [Aug. 23, 1988], reference in any other Federal law to the Agency for International Development or any offi- cer shall be deemed to refer to the Trade and Develop- ment Program [now Trade and Development Agency] or other official to which such function is so transferred.’’ § 635r. Establishment of tied aid credit program administered by Trade and Development Agency (a) Establishment and elements of program The Director of the Trade and Development Agency shall carry out a program of tied aid credits for United States exports. The program shall be carried out in cooperation with the Ex- port-Import Bank of the United States and with private financial institutions or entities, as ap- propriate. The program may include— (1) the combined use of the credits, loans, or guarantees offered by the Bank with concessional financing or grants made avail- able under subsection (d), by methods includ- ing the blending of the financing of, or parallel financing by, the Bank and the Trade and De- velopment Agency; and (2) the combination of concessional financ- ing or grants made available under subsection (d) with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel fi- nancing by, the Trade and Development Agen- cy and private institutions or entities. (b) Combination of funds with financing by Ex- port-Import Bank or private commercial fi- nancing These funds may be combined with financing by the Export-Import Bank of the United States or private commercial financing in order to offer, or arrange for, financing for the expor- tation of United States goods and services which is substantially as concessional as foreign fi- nancing for which there is reasonable proof that such foreign financing is being offered to, or ar- ranged for, a bona fide foreign competitor for a United States export sale. (c) Limitation on use of Agency funds; authoriza- tion for establishment of fund (1) Funds which are used to carry out a tied aid credit program authorized by subsections (a) and (b) shall be offered only to finance United States exports which can reasonably be expected to contribute to the advancement of the devel- opment objectives of the importing country or countries, and shall be consistent with the eco- nomic, security, and political criteria used to establish country allocations of Economic Sup- port Funds. (2) The Director of the Trade and Development Agency is authorized to establish a fund, as nec- essary, for carrying out a tied aid credit financ- ing program as described in this section. (d) Use of Economic Support Funds Funds available to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 [22 U.S.C. 2346 et seq.] may be used by the Director of the Trade and Development Agency, with the concurrence of the Secretary of State (as pro- vided under section 531 of the Foreign Assist- ance Act of 1961 [22 U.S.C. 2346]), for the pur- poses for which funds made available under this subsection are authorized to be used in section 635q of this title and this section. The Secretary of State shall exercise his authority in coopera- tion with the Administrator of the Agency for International Development. Funds made avail- able pursuant to this subsection may be used to finance a tied aid credit activity in any country eligible for tied aid credits under this sub- chapter. (Pub. L. 98–181, title I [title VI, § 645], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(B), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c), Oct. 28, 1992, 106 Stat. 3658.) Page 256 TITLE 12—BANKS AND BANKING § 635s Editorial Notes REFERENCES IN TEXT The Foreign Assistance Act of 1961, referred to in sub- sec. (d), is Pub. L. 87–195, Sept. 4, 1961, 75 Stat. 424. Chapter 4 of part II of the Foreign Assistance Act of 1961 is classified generally to part IV (§ 2346 et seq.) of subchapter II of chapter 32 of Title 22, Foreign Rela- tions and Intercourse. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of Title 22 and Tables. This subchapter, referred to in subsec. (d), was in the original ‘‘this Act’’ and was translated as meaning the Trade and Development Enhancement Act of 1983, part C (§§ 641–647, 650) of title VI of Pub. L. 98–181, title I, Nov. 30, 1983, 97 Stat. 1263, which enacted this sub- chapter and section 1671g of Title 19, Customs Duties, and amended sections 1671a and 1671b of Title 19. For complete classification of this Act to the Code, see Short Title note below and Tables. AMENDMENTS 1992—Pub. L. 102–549 substituted ‘‘Development Agen- cy’’ for ‘‘Development Program’’ in section catchline and wherever appearing in subsecs. (a), (c), and (d). 1988—Pub. L. 100–418, § 2204(c)(1)(B)(i), in section catchline, substituted reference to program adminis- tered by Trade and Development Program for reference to program in Agency for International Development. Subsec. (a). Pub. L. 100–418, § 2204(c)(1)(B)(ii)(I), sub- stituted ‘‘Director of the Trade and Development Pro- gram shall carry out’’ for ‘‘Administrator of the Agen- cy for International Development shall establish with- in the Agency’’. Subsec. (a)(1). Pub. L. 100–418, § 2204(c)(1)(B)(ii)(II), (III), substituted ‘‘made available under subsection (d) of this section’’ for ‘‘offered by the Agency for Inter- national Development’’ and ‘‘Trade and Development Program’’ for ‘‘Agency for International Develop- ment’’. Subsec. (a)(2). Pub. L. 100–418, § 2204(c)(1)(B)(ii)(IV), (V), substituted ‘‘made available under subsection (d) of this section’’ for ‘‘offered by the Agency for Inter- national Development’’ and ‘‘Trade and Development Program’’ for ‘‘Agency for International Develop- ment’’. Subsec. (c)(1). Pub. L. 100–418, § 2204(c)(1)(B)(iii)(I), which directed that par. (1) be amended by striking out ‘‘of the Agency for International Development’’ after ‘‘Funds’’, was executed by striking out ‘‘of the agency for International Development’’, to reflect the probable intent of Congress. Subsec. (c)(2). Pub. L. 100–418, § 2204(c)(1)(B)(iii)(II), substituted ‘‘Director of the Trade and Development Program’’ for ‘‘Administrator of the Agency for Inter- national Development’’. Subsec. (d). Pub. L. 100–418, § 2204(c)(1)(B)(iv), amend- ed subsec. (d) generally. Prior to amendment, subsec. (d) read as follows: ‘‘The Administrator of the Agency for International Development may draw on Economic Support Funds allocated for Commodity Import Pro- grams to finance a tied aid credit activity.’’ § 635s. Implementation (a)(1) The National Advisory Council on Inter- national Monetary and Financial Policies shall coordinate the implementation of the tied aid credit programs authorized by sections 635q and 635r of this title. (2) No financing may be approved under the tied aid credit programs authorized by section 635q or 635r of this title without the unanimous consent of the members of the National Advi- sory Council on International Monetary and Fi- nancial Policies. (b) The Trade and Development Agency shall be represented at any meetings of the National Advisory Council on International Monetary and Financial Policies for discussion of tied aid credit matters, and the representative of the Trade and Development Agency at any such meeting shall have the right to vote on any de- cisions of the Advisory Council relating to tied aid credit matters. (Pub. L. 98–181, title I [title VI, § 646], Nov. 30, 1983, 97 Stat. 1265; Pub. L. 100–418, title II, § 2204(c)(2), Aug. 23, 1988, 102 Stat. 1331; Pub. L. 102–549, title II, § 202(c)(1), Oct. 28, 1992, 106 Stat. 3658.) Editorial Notes AMENDMENTS 1992—Subsec. (b). Pub. L. 102–549 substituted ‘‘Devel- opment Agency’’ for ‘‘Development Program’’ in two places. 1988—Subsec. (b). Pub. L. 100–418 added subsec. (b). § 635t. Definitions For purposes of this subchapter— (1) the term ‘‘tied aid credit’’ means credit— (A) which is provided for development aid purposes; (B) which is tied to the purchase of exports from the country granting the credit; (C) which is financed either exclusively from public funds, or, as a mixed credit, partly from public and partly from private funds; and (D) which has a grant element, as defined by the Development Assistance Committee of the Organization for Economic Coopera- tion and Development, greater than zero percent; (2) the term ‘‘government-mixed credits’’ means the combined use of credits, insurance, and guarantees offered by the Export-Import Bank of the United States with concessional financing or grants offered by the Agency for International Development to finance exports; (3) the term ‘‘public-private cofinancing’’ means the combined use of either official de- velopment assistance or official export credit with private commercial credit to finance ex- ports; (4) the term ‘‘blending of financings’’ means the use of various combinations of official de- velopment assistance, official export credit, and private commercial credit, integrated into a single package with a single set of financial terms, to finance exports; (5) the term ‘‘parallel financing’’ means the related use of various combinations of sepa- rate lines of official development assistance, official export credits, and private commercial credit, not combined into a single package with a single set of financial terms, to finance exports; and (6) the term ‘‘Bank’’ means the Export-Im- port Bank of the United States. (Pub. L. 98–181, title I [title VI, § 647], Nov. 30, 1983, 97 Stat. 1265.)