12 U.S.C. § 635e — Aggregate loan, guarantee, and insurance

Page 236 TITLE 12—BANKS AND BANKING § 635e AMENDMENTS 1975—Pub. L. 93–646 substituted provision making mandatory that each Bank obligation bear interest at a rate not less than the current average yield on out- standing obligations of comparable maturity, for provi- sion requiring that only the current average rate be taken into consideration. 1968—Pub. L. 90–267 changed name of ‘‘Export-Import Bank of Washington’’ to ‘‘Export-Import Bank of the United States’’. 1958—Pub. L. 85–424 substituted ‘‘$6,000,000,000’’ for ‘‘$4,000,000,000’’. 1954—Act Aug. 9, 1954, substituted ‘‘$4,000,000,000’’ for ‘‘three and one-half times the authorized capital stock of the Bank’’. 1951—Act Oct. 3, 1951, substituted ‘‘three and one- half’’ for ‘‘two and one-half’’. 1947—Act June 9, 1947, struck out ‘‘and bear such rate of interest’’ before ‘‘as may be determined’’ in the sec- ond sentence and added the third sentence relating to the rate of interest on obligations. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1954 AMENDMENT For effective date of amendment by act Aug. 9, 1954, see note set out under section 635a of this title. BOARD OF DIRECTORS A Board of Directors reestablished for the Export-Im- port Bank of Washington, see note under section 635 of this title. § 635e. Aggregate loan, guarantee, and insurance authority (a) Limitation on outstanding amounts (1) In general The Export-Import Bank of the United States shall not have outstanding at any one time loans, guarantees, and insurance in an aggregate amount in excess of the applicable amount. (2) Applicable amount defined In this subsection, the term ‘‘applicable amount’’, for each of fiscal years 2020 through 2027, means $135,000,000,000. (3) Freezing of lending cap if default rate is 2 percent or more If the rate calculated under section 635g(g)(1) of this title is 2 percent or more for a quarter, the Bank may not exceed the amount of loans, guarantees, and insurance outstanding on the last day of that quarter until the rate cal- culated under section 635g(g)(1) of this title is less than 2 percent. (4) Subject to appropriations All spending and credit authority provided under this subchapter shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts. (b) Reserve requirement The Bank shall build to and hold in reserve, to protect against future losses, an amount that is not less than 5 percent of the aggregate amount of disbursed and outstanding loans, guarantees, and insurance of the Bank. (c) Presidential determination (1) In general Not later than March 31 of each fiscal year, the President of the United States shall deter- mine whether the authority available to the Bank for such fiscal year will be sufficient to meet the Bank’s needs, particularly those needs arising from— (A) increases in the level of exports unfore- seen at the time of the original budget re- quest for such fiscal year; (B) any increased foreign export credit subsidies; or (C) the lack of progress in negotiations to reduce or eliminate export credit subsidies. (2) Request for legislation (A) In general If the President of the United States finds that the amount of direct loan authority or guarantee authority available to the Bank for the fiscal year involved exceeds the amount which will be necessary to carry out the Bank’s functions consistent with the availability of qualified applications and limitations imposed by law during such year, the President of the United States shall promptly transmit to the Congress a request for legislation to eliminate the amount of such excess direct loan, loan guarantee, or insurance authority. (B) Continued availability of authority The Bank shall continue to make remain- ing amounts of its authority available for the fiscal year involved, in accordance with its practices and the requirements of this subchapter, unless otherwise directed pursu- ant to law. (July 31, 1945, ch. 341, § 6, formerly § 7, 59 Stat. 529; Oct. 3, 1951, ch. 445, § 1(b), 65 Stat. 367; May 21, 1953, ch. 64, § 2, 67 Stat. 28; Aug. 9, 1954, ch. 660, § 3(b), 68 Stat. 678; Pub. L. 85–424, § 1(2), May 22, 1958, 72 Stat. 133; Pub. L. 88–101, § 1(b), Aug. 20, 1963, 77 Stat. 128; Pub. L. 90–267, § 1(a), (e), Mar. 13, 1968, 82 Stat. 47, 49; Pub. L. 92–126, § 1(b)(3), Aug. 17, 1971, 85 Stat. 345; Pub. L. 93–646, § 8, Jan. 4, 1975, 88 Stat. 2336; Pub. L. 95–630, title XIX, §§ 1905, 1914, Nov. 10, 1978, 92 Stat. 3725, 3727; Pub. L. 97–35, title III, § 381(a), Aug. 13, 1981, 95 Stat. 431; Pub. L. 98–181, title I [title VI, §§ 615, 620(d)], Nov. 30, 1983, 97 Stat. 1256, 1261; Pub. L. 99–472, §§ 13, 17, Oct. 15, 1986, 100 Stat. 1204, 1205; Pub. L. 102–145, § 121(1), Oct. 28, 1991, as added Pub. L. 102–266, § 102, Apr. 1, 1992, 106 Stat. 95; re- numbered § 6 and amended Pub. L. 102–429, title I, §§ 109(b), 121(c)(2), Oct. 21, 1992, 106 Stat. 2193, 2199; Pub. L. 106–569, title XI, § 1104(a)(3), Dec. 27, 2000, 114 Stat. 3031; Pub. L. 107–189, § 5, June 14, 2002, 116 Stat. 699; Pub. L. 109–438, § 9, Dec. 20, 2006, 120 Stat. 3275; Pub. L. 112–122, § 3, May 30, 2012, 126 Stat. 350; Pub. L. 114–94, div. E, title LI, §§ 51001, 51002(a), Dec. 4, 2015, 129 Stat. 1763; Pub. L. 116–94, div. I, title IV, § 401(b), Dec. 20, 2019, 133 Stat. 3021.) Editorial Notes PRIOR PROVISIONS A prior section 6 of act July 31, 1945, ch. 341, was re- numbered section 5 and is classified to section 635d of this title. AMENDMENTS 2019—Subsec. (a)(2). Pub. L. 116–94 substituted ‘‘for each of fiscal years 2020 through 2027’’ for ‘‘for each of fiscal years 2015 through 2019’’. Page 237 TITLE 12—BANKS AND BANKING § 635f 2015—Subsec. (a)(2) to (4). Pub. L. 114–94, § 51001, added pars. (2) and (3), redesignated former par. (3) as (4), and struck out former par. (2) which defined the term ‘‘ap- plicable amount’’. Subsecs. (b), (c). Pub. L. 114–94, § 51002(a), added sub- sec. (b) and redesignated former subsec. (b) as (c). 2012—Subsec. (a)(2)(F). Pub. L. 112–122 added subpar. (F). 2006—Subsec. (a)(2)(E). Pub. L. 109–438 amended sub- par. (E) generally. Prior to amendment, subpar. (E) read as follows: ‘‘during fiscal year 2006, $100,000,000,000.’’ 2002—Subsec. (a). Pub. L. 107–189 reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘The Export-Import Bank of the United States shall not have outstanding at any one time loans, guaranties, and insurance in an aggregate amount in excess of $75,000,000,000. All spend- ing and credit authority provided under this subchapter shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts.’’ 2000—Subsec. (b)(2), (3). Pub. L. 106–569 redesignated par. (3) as (2) and struck out heading and text of former par. (2). Text read as follows: ‘‘Not later than April 15 of each year, the President of the United States shall transmit to the Congress a report on such determina- tion.’’ 1992—Pub. L. 102–429, § 109(b), inserted section catch- line, redesignated former subsec. (a)(1) as subsec. (a), inserted subsec. heading, substituted ‘‘$75,000,000,000’’ for ‘‘$40,000,000,000’’, redesignated former subsec. (a)(2) as subsec. (b), redesignated former subpar. (A)(i) as par. (1), former subcls. (I) to (III) as subpars. (A) to (C), re- spectively, former subpar. (A)(ii) as par. (2), former sub- par. (B) as par. (3), and former cls. (i) and (ii) as sub- pars. (A) and (B), respectively, inserted headings for subsec. (b), pars. (1) to (3), and subpars. (A) and (B) of par. (3), and struck out former subsec. (a)(3) which read as follows: ‘‘AUTHORIZATION OF APPROPRIATION.—There are authorized to be appropriated $145,259,000 for fiscal year 1987 to cover the subsidy cost of new direct loans obligated by the Bank in that fiscal year. Any amounts appropriated under this paragraph shall be permanent additions to the capital and reserves of the Bank.’’ 1991—Subsec. (b). Pub. L. 102–145, § 121(1), as added by Pub. L. 102–266, struck out subsec. (b) which read as fol- lows: ‘‘After January 4, 1975, the Bank shall not ap- prove any loans or financial guarantees, or combina- tion thereof, in connection with exports to the Union of Soviet Socialist Republics in an aggregate amount in excess of $300,000,000. No such loan or financial guar- antee, or combination thereof, shall be for the pur- chase, lease, or procurement of any product or service for production (including processing and distribution) of fossil fuel energy resources. Not more than $40,000,000 of such aggregate amount shall be for the purchase, lease, or procurement of any product or serv- ice which involves research or exploration of fossil fuel energy resources. The President may establish a limi- tation in excess of $300,000,000 if the President deter- mines that such higher limitation is in the national in- terest and if the President reports such determination to the Congress together with the reasons therefor, in- cluding the amount of such proposed increase which would be available for the export of products and serv- ices for research, exploration, and production (includ- ing processing and distribution) of fossil fuel energy re- sources in the Union of Soviet Socialist Republics, and if, after the receipt of such report together with the reasons, the Congress adopts a concurrent resolution approving such determination.’’ 1986—Subsec. (a)(1). Pub. L. 99–472, § 17, substituted ‘‘All spending and credit authority’’ for ‘‘All spending authority’’. Subsec. (a)(3). Pub. L. 99–472, § 13, added par. (3). 1983—Subsec. (a)(2). Pub. L. 98–181, § 615, amended par. (2) generally, substituting provisions requiring a Presi- dential determination, not later than March 31 of each fiscal year, as to whether the authority available to the Bank for such fiscal year will be sufficient to meet the Bank’s needs, requiring the President to transmit to Congress a report on such determination no later than April 15 of each year, and establishing procedures if the direct loan or guarantee authority available exceeds the amount necessary, for provision limiting gross obli- gations for the principal amount of direct loans author- ized by the Bank during fiscal years 1982 and 1983 to $10,478,000,000, and designating specified amounts there- of for each fiscal year. Subsec. (b). Pub. L. 98–181, § 620(d), substituted ‘‘the President’’ for ‘‘he’’ before ‘‘determines that such high- er limitation’’ and ‘‘reports such determination’’. 1981—Subsec. (a). Pub. L. 97–35 designated existing provisions as par. (1) and added par. (2). 1978—Subsec. (a). Pub. L. 95–630 substituted ‘‘$40,000,000,000’’ for ‘‘$25,000,000,000’’ and inserted provi- sion that all spending authority provided under this chapter be effective for any fiscal year only to such ex- tent or in such amounts as are provided in appropria- tion Acts. 1975—Subsec. (a). Pub. L. 93–646, § 8(1), (2), designated existing provisions as subsec. (a) and substituted ‘‘$25,000,000,000’’ for ‘‘$20,000,000,000’’. Subsec. (b). Pub. L. 93–646, § 8(3), added subsec. (b). 1971—Pub. L. 92–126 substituted ‘‘$20,000,000,000’’ for ‘‘$13,500,000,000’’. 1968—Pub. L. 90–267 changed name of ‘‘Export-Import Bank of Washington’’ to ‘‘Export-Import Bank of the United States’’ and substituted ‘‘$13,500,000,000’’ for ‘‘$9,000,000,000’’. 1963—Pub. L. 88–101 substituted ‘‘$9,000,000,000’’ for ‘‘$7,000,000,000’’. 1958—Pub. L. 85–424 substituted ‘‘$7,000,000,000’’ for ‘‘$5,000,000,000’’. 1954—Act Aug. 9, 1954, substituted ‘‘$5,000,000,000’’ for ‘‘four and one-half times the authorized capital stock of the Bank’’. 1953—Act May 21, 1958, substituted ‘‘loans, guaran- ties, and insurance’’ for ‘‘loans and guaranties’’. 1951—Act Oct. 3, 1951, substituted ‘‘four and one-half’’ for ‘‘three and one-half’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Pub. L. 114–94, div. E, title LI, § 51002(b), Dec. 4, 2015, 129 Stat. 1763, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall take effect on the date that is one year after the date of the enact- ment of this Act [Dec. 4, 2015].’’ EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective Nov. 10, 1978, see section 1917 of Pub. L. 95–630, set out as a note under section 635 of this title. EFFECTIVE DATE OF 1954 AMENDMENT For effective date of amendment by act Aug. 9, 1954, see note set out under section 635a of this title. § 635f. Termination date of Bank’s functions; ex- ceptions; liquidation Export-Import Bank of the United States shall continue to exercise its functions in connection with and in furtherance of its objects and pur- poses until the close of business on December 31, 2026, but the provisions of this section shall not be construed as preventing the bank from ac- quiring obligations prior to such date which ma- ture subsequent to such date or from assuming prior to such date liability as guarantor, en- dorser, or acceptor of obligations which mature subsequent to such date or from issuing, either prior or subsequent to such date, for purchase by the Secretary of the Treasury or any other pur-