22 U.S.C. § 2186 — Loan guarantees to Israel program

Page 676 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2186 Editorial Notes REFERENCES IN TEXT The Export-Import Bank Act of 1945, referred to in subsec. (a)(2), is act July 31, 1945, ch. 341, 59 Stat. 526, which is classified generally to subchapter I (§ 635 et seq.) of chapter 6A of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Short Title note set out under section 635 of Title 12 and Tables. CODIFICATION Subsec. (h) of this section, which required the Admin- istrator and the President of the Bank, every 6 months, to prepare and transmit to the Speaker of the House of Representatives and the Chairman of the Committee on Foreign Relations of the Senate a report on the amount and extension of guarantees and insurance provided by the Bank and guaranteed under this section during the preceding 6-month period, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, page 148 of House Document No. 103–7. Statutory Notes and Related Subsidiaries CONFORMING REFERENCE Pub. L. 101–179, title III, § 304(c), Nov. 28, 1989, 103 Stat. 1314, provided that: ‘‘With respect to Poland, any reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 [Pub. L. 101–167, Nov. 21, 1989, 103 Stat. 1195], to section 224 of the Foreign Assistance Act of 1961 [22 U.S.C. 2184] shall be deemed to be a reference to section 225 of that Act [22 U.S.C. 2185] (as enacted by this section).’’ Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. § 2186. Loan guarantees to Israel program (a) In general Subject to the terms and conditions of this section, during the period beginning October 1, 1992, and ending September 30, 1997, the Presi- dent is authorized to issue guarantees against losses incurred in connection with loans to Israel made as a result of Israel’s extraordinary humanitarian effort to resettle and absorb im- migrants into Israel from the republics of the former Soviet Union, Ethiopia and other coun- tries. In the event that less than the full amount authorized to be issued under subsection (b) of this section is issued in such period, the author- ity to issue the balance of such guarantees shall be available in the fiscal year ending on Sep- tember 30, 1998. (b) Fiscal year levels The President is authorized to issue guaran- tees in furtherance of the purposes of this sec- tion. Subject to subsection (d), the total prin- cipal amount of guarantees which may be issued by the President under this section shall be up to $10,000,000,000 which may be issued as follows: (1) in fiscal year 1993, up to $2,000,000,000 may be issued on October 1, 1992 or thereafter; (2) subject to subsection (d), in fiscal years 1994 through 1997, up to $2,000,000,000 in each fiscal year may be issued on October 1 or thereafter. (3) If less than the full amount of guarantees authorized to be made available in a fiscal year pursuant to paragraphs (1) and (2) of this subsection is issued to Israel during that fiscal year, the authority to issue the balance of such guarantees shall extend to any subse- quent fiscal year ending on or before Sep- tember 30, 1998. (4)(A) Not later than September 1 of each year during the period in which the President is authorized to issue loan guarantees under subsection (a), beginning in fiscal year 1993, the President shall notify the appropriate con- gressional committees in writing of his inten- tions regarding the exercise of that authority for the fiscal year beginning on October 1 of that year, including a statement of the total principal amount of guarantees, if any, that the President proposes to issue for that fiscal year. (B) For purposes of this paragraph, the term ‘‘appropriate congressional committees’’ means the Committee on Appropriations and the Committee on Foreign Relations of the Senate and the Committee on Appropriations and the Committee on Foreign Affairs of the House of Representatives. (c) Use of guarantees Guarantees may be issued under this section only to support activities in the geographic areas which were subject to the administration of the Government of Israel before June 5, 1967. (d) Limitation on guarantee amount The amount of authorized but unissued guar- antees that the President is authorized to issue as specified in subsection (b) shall be reduced by an amount equal to the amount extended or es- timated to have been extended by the Govern- ment of Israel during the previous year for ac- tivities which the President determines are in- consistent with the objectives of this section or understandings reached between the United States Government and the Government of Israel regarding the implementation of the loan program. The President shall submit a report to Congress no later than September 30 of each fis- cal year during the pendency of the program specifying the amount calculated under this subsection and that will be deducted from the amount of guarantees authorized to be issued in the next fiscal year. (e) Fees (1) Fees charged for the loan guarantee pro- gram under this section each year shall be an aggregate annual origination fee equal to the es- timated subsidy cost of the guarantees issued under this section for that year, calculated by the Office of Management and Budget for the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.]. This shall also include an amount for the administrative expenses of the Agency for Inter- national Development in administering the pro- gram under this section. All such fees shall be paid by the Government of Israel to the Govern- ment of the United States. Funds made avail- able for Israel under part 4 of subchapter II of this chapter, may be utilized by the Government Page 677 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2186 1 See References in Text note below. of Israel to pay such fees to the United States Government. No further appropriations of sub- sidy cost are needed for the loan guarantee au- thorized hereunder for fiscal year 1993 and the four succeeding fiscal years. (2) The origination fee shall be payable to the United States Government on a pro rata basis as each guarantee for each loan or increment is issued. (f) Authority to suspend Except as provided in subsections (l) and (m) of this section, the President shall determine the terms and conditions for issuing guarantees. If the President determines that these terms and conditions have been breached, the Presi- dent may suspend or terminate the provision of all or part of the additional loan guarantees not yet issued under this section. Upon making such a determination to suspend or terminate the provision of loan guarantees, the President shall submit to the Speaker of the House of Rep- resentatives and the President Pro Tempore of the Senate his determination to do so, including the basis for such suspension or termination. (g) Procedures for suspension or termination Any suspension or termination pursuant to subsection (f) shall be in accordance with the following procedures: (1) Upon making a determination to suspend or terminate the provision of loan guarantees, the President shall submit to the Speaker of the House of Representatives and the Presi- dent Pro Tempore of the Senate his deter- mination to do so, including the basis for such suspension or termination. (2) Such a suspension or termination shall cease to be effective if Congress enacts, within 30 days of submission, a joint resolution au- thorizing the assistance notwithstanding the suspension. (3) Any such joint resolution shall be consid- ered in the Senate in accordance with the pro- visions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976. (4) For the purpose of expediting the consid- eration and enactment of joint resolutions under this subsection, a motion to proceed to the consideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privi- leged in the House of Representatives. (5) In the event that the President suspends the provision of additional loan guarantees under subsection (f) and Congress does not enact a joint resolution pursuant to this sub- section, the provision of additional loan guar- antees under the program established by this section may be resumed only if the President determines and so reports to Congress that the reasons for the suspension have been resolved or that the resumption is otherwise in the na- tional interest. (h) Economic context The effective absorption of immigrants into Israel from the republics of the former Soviet Union and Ethiopia within the private sector re- quires large investment and economic restruc- turing to promote market efficiency and there- by contribute to productive employment and sustainable growth. Congress recognizes that the Government of Israel is developing an eco- nomic strategy designed to achieve these goals, and that the Government of Israel intends to adopt a comprehensive, multi-year economic strategy based on prudent macroeconomic poli- cies and structural reforms. Congress also recog- nizes that these policies are being designed to reduce direct involvement of the government in the economic system and to promote private en- terprise, important prerequisites for economic stability and sustainable growth. (i) Consultations It is the sense of the Congress that, as agreed between the two Governments and in order to further the policies specified in subsection (h), Israel and the United States should continue to engage in consultations concerning economic and financial measures, including structural and other reforms, that Israel should undertake dur- ing the pendency of this program to enable its economy to absorb and resettle immigrants and to accommodate the increased debt burden that will result from loans guaranteed pursuant to this section. It is the sense of the Congress that these consultations on economic measures should address progress and plans in the areas of budget policies, privatization, trade liberaliza- tion, financial and capital markets, labor mar- kets, competition policy, and deregulation. (j) Goods and services During the pendency of the loan program au- thorized under this section, it is anticipated that, in the context of the economic reforms un- dertaken pursuant to subsections (h) and (i) of this section, Israel’s increased population due to its absorption of immigrants, and the liberaliza- tion by the Government of Israel of its trade policy with the United States, the amount of United States investment goods and services purchased for use in or with respect to the coun- try of Israel will substantially increase. (k) Reports The President shall report to Congress by De- cember 31 of each fiscal year until December 31, 1999, regarding the implementation of this sec- tion. (l) Applicability of certain sections Section 2183 of this title shall apply to guaran- tees issued under subsection (a) in the same manner as such section applies to guarantees issued under section 2182 of this title, except that subsections (a), (e)(1), (g), and (j) of section 2183 of this title shall not apply to such guaran- tees and except that, to the extent section 2183 of this title is inconsistent with the Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.], that Act shall apply. Loans shall be guaranteed under this section without regard to sections 2181, 2182, and 2198(c) 1 of this title. Notwith- standing section 2183(f) of this title, the interest rate for loans guaranteed under this section may include a reasonable fee to cover the costs and fees incurred by the borrower in connection with this program or financing under this section in Page 678 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE §§ 2191 to 2194 2 So in original. Probably should be ‘‘issued’’. the event the borrower elects not to finance such costs or fees out of loan principal. Guaran- tees once issued hereunder shall be uncondi- tional and fully and freely transferable. (m) Terms and conditions (1) Each loan guarantee issued under this sec- tion shall guarantee 100 percent of the principal and interest payable on such loans. (2) The standard terms of any loan or incre- ment guaranteed under this section shall be 30 years with semiannual payments of interest only over the first 10 years, and with semiannual payments of principal and interest on a level payment basis, over the last 20 years thereof, ex- cept that the guaranteed loan or any increments issued in a single transaction may include obli- gations having different maturities, interest rates, and payment terms if the aggregate scheduled debt service for all obligations issued in a single transaction equals the debt service for a single loan or increment of like amount having the standard terms described in this sen- tence. The guarantor shall not have the right to accelerate any guaranteed loan or increment or to pay any amounts in respect of the guarantees issued other than in accordance with the origi- nal payment terms of the loan. For purposes of determining the maximum principal amount of any loan or increment to be guaranteed under this section, the principal amount of each such loan or increment shall be— (A) in the case of any loan issued on a dis- count basis, the original issue price (excluding any transaction costs) thereof; or (B) in the case of any loan issue 2 on an in- terest-bearing basis, the stated principal amount thereof. (Pub. L. 87–195, pt. I, § 226, as added Pub. L. 102–391, title VI, § 601, Oct. 6, 1992, 106 Stat. 1699.) Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsecs. (e)(1) and (l), is title V of Pub. L. 93–344 as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables. Section 601(b) of the International Security Assist- ance and Arms Export Control Act of 1976, referred to in subsec. (g)(3), is section 601(b) of Pub. L. 94–329, title VI, June 30, 1976, 90 Stat. 765, which is not classified to the Code. Section 2198(c) of this title, referred to in subsec. (l), was repealed by Pub. L. 115–254, div. F, title VI, § 1464(2), Oct. 5, 2018, 132 Stat. 3513. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. SUBPART IV—OVERSEAS PRIVATE INVESTMENT CORPORATION §§ 2191 to 2194. Repealed. Pub. L. 115–254, div. F, title VI, § 1464(2), Oct. 5, 2018, 132 Stat. 3513 Section 2191, Pub. L. 87–195, pt. I, § 231, as added Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 809; amended Pub. L. 93–390, § 2(1), Aug. 27, 1974, 88 Stat. 763; Pub. L. 95–268, § 2, Apr. 24, 1978, 92 Stat. 213; Pub. L. 97–65, § 2, Oct. 16, 1981, 95 Stat. 1021; Pub. L. 99–204, §§ 3, 4(a), Dec. 23, 1985, 99 Stat. 1669; Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36; Pub. L. 102–549, title I, § 101, Oct. 28, 1992, 106 Stat. 3651; Pub. L. 103–392, title I, § 105, Oct. 22, 1994, 108 Stat. 4099, related to congressional statement of purpose and the creation and functions of Overseas Private Investment Corporation. Section 2191a, Pub. L. 87–195, pt. I, § 231A, as added Pub. L. 99–204, § 5(a), Dec. 23, 1985, 99 Stat. 1670; amend- ed Pub. L. 100–418, title II, § 2203(c), Aug. 23, 1988, 102 Stat. 1328; Pub. L. 102–549, title I, § 102(a), Oct. 28, 1992, 106 Stat. 3651; Pub. L. 104–188, title I, § 1954(b)(3), Aug. 20, 1996, 110 Stat. 1928; Pub. L. 106–158, § 3(a), Dec. 9, 1999, 113 Stat. 1745, related to additional requirements. Section 2191b, Pub. L. 111–117, div. F, title VII, § 7079(b), Dec. 16, 2009, 123 Stat. 3396, related to worker rights and human rights guidelines. Section 2192, Pub. L. 87–195, pt. I, § 232, as added Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 810, related to capital of the Corporation. Section 2193, Pub. L. 87–195, pt. I, § 233, as added Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 810; amended Pub. L. 97–65, § 3(a), (b), Oct. 16, 1981, 95 Stat. 1021, 1022; Pub. L. 106–158, § 4, Dec. 9, 1999, 113 Stat. 1746; Pub. L. 106–200, title I, § 123(c)(1), May 18, 2000, 114 Stat. 269; Pub. L. 108–158, § 3(e), Dec. 3, 2003, 117 Stat. 1950, related to organization and management of the Corporation. Section 2194, Pub. L. 87–195, pt. I, § 234, as added Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 811; amended 1970 Reorg. Plan No. 2, § 102, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085; Pub. L. 93–390, § 2(2), Aug. 27, 1974, 88 Stat. 764; Pub. L. 95–268, § 3, Apr. 24, 1978, 92 Stat. 214; Pub. L. 97–65, § 4, Oct. 16, 1981, 95 Stat. 1022; Pub. L. 99–204, §§ 6(a), 7, 8, Dec. 23, 1985, 99 Stat. 1671, 1672; Pub. L. 100–461, title V, § 555, Oct. 1, 1988, 102 Stat. 2268–36; Pub. L. 101–218, § 8(c), Dec. 11, 1989, 103 Stat. 1868; Pub. L. 102–549, title I, § 103, Oct. 28, 1992, 106 Stat. 3651; Pub. L. 106–31, title VI, § 6001, May 21, 1999, 113 Stat. 112; Pub. L. 108–158, §§ 4(a), 5(a), Dec. 3, 2003, 117 Stat. 1950, related to investment insurance and other programs. Editorial Notes PRIOR PROVISIONS A prior section 231 of Pub. L. 87–195, pt. 1, Sept. 4, 1961, 75 Stat. 432, related to general authority of Presi- dent to participate in financing of surveys of invest- ment opportunities in less developed friendly countries, prior to the general reorganization of this subpart by Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 807. A prior section 232 of Pub. L. 87–195, pt. I, Sept. 4, 1961, 75 Stat. 432 as amended by Pub. L. 87–565, pt. I, § 105, Aug. 1, 1962, 76 Stat. 257; Pub. L. 88–633, pt. I, § 104, Oct. 7, 1964, 78 Stat. 1010; Pub. L. 90–137, pt. I, § 105, Nov. 14, 1967, 81 Stat. 451, authorized appropriations for sur- veys of investment opportunities, prior to the general reorganization of this subpart by Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 807. A prior section 233 of Pub. L. 87–195, pt. I, Sept. 4, 1961, 75 Stat. 432, contained definitions, prior to the general reorganization of this subpart by Pub. L. 91–175, pt. I, § 105, Dec. 30, 1969, 83 Stat. 807.