22 U.S.C. § 9623 — Payment of losses

Page 2279 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9631 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 pro- vides support and should only provide the min- imum 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 un- less 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.) TERMINATION OF SECTION For termination of section 7 years after Oct. 5, 2018, see section 9624 of this title. § 9623. Payment of losses (a) Payments for defaults on guaranteed loans (1) In general If the Corporation determines that the hold- er of a loan guaranteed by the Corporation suf- fers a loss as a result of a default by a bor- rower on the loan, the Corporation shall pay to the holder the percent of the loss, as speci- fied in the guaranty contract, after the holder of the loan has made such further collection efforts and instituted such enforcement pro- ceedings as the Corporation may require. (2) Subrogation Upon making a payment described in para- graph (1), the Corporation shall ensure the Corporation will be subrogated to all the rights of the recipient of the payment. (3) Recovery efforts The Corporation shall pursue recovery from the borrower of the amount of any payment made under paragraph (1) with respect to the loan. (b) Limitation on payments (1) In general Except as provided by paragraph (2), com- pensation for insurance, reinsurance, or a guaranty issued under this subchapter shall not exceed the dollar value of the tangible or intangible contributions or commitments made in the project, plus interest, earnings, or profits actually accrued on such contributions or commitments, to the extent provided by such insurance, reinsurance, or guaranty. (2) Exception (A) In general The Corporation may provide that— (i) appropriate adjustments in the in- sured 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 invest- ment on the date of loss. (3) Additional limitation (A) In general Notwithstanding paragraph (2)(A)(ii) and except as provided in subparagraph (B), the Corporation shall limit the amount of direct insurance and reinsurance issued under sec- tion 9621 of this title with respect to a project so as to require that the insured and its affiliates bear the risk of loss for at least 10 percent of the amount of the Corpora- tion’s exposure to that insured and its affili- ates in the project. (B) Exception The limitation under subparagraph (A) shall not apply to direct insurance or rein- surance of loans provided by banks or other financial institutions to unrelated parties. (c) Actions by Attorney General The Attorney General shall take such action as may be appropriate to enforce any right ac- cruing to the United States as a result of the issuance of any loan or guaranty under this sub- chapter. (d) Rule of construction Nothing in this section shall be construed to preclude any forbearance for the benefit of a borrower that may be agreed upon by the parties to a loan guaranteed by the Corporation if budg- et authority for any resulting costs to the United States Government (as defined in section 661a of title 2) is available. (Pub. L. 115–254, div. F, title II, § 1423, Oct. 5, 2018, 132 Stat. 3498.) TERMINATION OF SECTION For termination of section 7 years after Oct. 5, 2018, see section 9624 of this title. § 9624. Termination (a) In general The authorities provided under this sub- chapter terminate on the date that is 7 years after October 5, 2018. (b) Termination of Corporation The Corporation shall terminate on the date on which the portfolio of the Corporation is liq- uidated. (Pub. L. 115–254, div. F, title II, § 1424, Oct. 5, 2018, 132 Stat. 3499.) SUBCHAPTER III—ADMINISTRATIVE AND GENERAL PROVISIONS § 9631. Operations (a) Bilateral agreements The Corporation may provide support under subchapter II of this chapter in connection with projects in any country the government of which has entered into an agreement with the United States authorizing the Corporation to provide such support in that country. (b) Claims settlement (1) In general Claims arising as a result of support pro- vided under subchapter II of this chapter or under predecessor 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.