12 U.S.C. § 635o — Congressional statement of purpose

Page 253 TITLE 12—BANKS AND BANKING § 635o Executive Documents EX. ORD. NO. 11420. EXPORT EXPANSION ADVISORY COMMITTEE Ex. Ord. No. 11420, July 31, 1968, 33 F.R. 10997, pro- vided: WHEREAS foreign trade is an essential and con- tinuing element in sustaining the growth, strength, and prosperity of our economy, contributes to the im- provement of our balance of payments, and fosters the long-term commercial interest of the United States; and WHEREAS, on March 20, 1968, I requested the Con- gress to empower the Export-Import Bank of the United States to use up to $500,000,000 of its loan, guar- antee, and insurance authority to finance a broadened program to sell American goods in foreign markets; and WHEREAS the Congress has authorized the Bank to extend loans, guarantees, and insurance which, in the judgment of the Board of Directors of the Bank, offer sufficient likelihood of repayment to justify the Bank’s support in order to actively foster the foreign trade and long-term commercial interest of the United States; and WHEREAS it is desirable and appropriate that guid- ance concerning the commercial interests and the bal- ance of payments objectives of the United States be provided to the Board of Directors of the Bank in the use of such loan, guarantee, and insurance authority allocated to finance export expansion, and I have stated that I would establish an Export Expansion Advisory Committee to provide such guidance to the Board of Di- rectors of the Bank: NOW, THEREFORE, by virtue of the authority vested in me as President of the United States, it is ordered as follows: SECTION 1. Establishment of Advisory Committee. (a) There is hereby established the Export Expansion Advi- sory Committee (hereinafter referred to as ‘‘the Com- mittee’’). (b) The Committee shall be composed of the following members: the Secretary of Commerce, who shall be Chairman of the Committee, the Secretary of the Treasury, the Secretary of State, and the President and Chairman of the Board of the Export-Import Bank of the United States. SEC. 2. Functions of the Committee. The Committee shall review and make recommendations concerning applications and proposals for loans, guarantees, and insurance to be charged against allocations made to fi- nance export expansion and shall provide guidance to the Board of Directors of the Bank concerning the use of such allocations with the view to fostering the for- eign trade and long-term commercial interest of the United States. SEC. 3. Construction. Nothing in this order shall be construed to abrogate, modify, or restrict any function vested by law in, or assigned pursuant to law to, any Federal agency or any officer thereof or to any Federal interagency council or committee. As used herein the term ‘‘any Federal agency’’ includes any executive de- partment and any other executive agency. LYNDON B. JOHNSON. § 635k. Apportionment of losses incurred on loans, guarantees, and insurance; reimburse- ment; contingent obligations In the event of any losses, as determined by the Board of Directors of the Bank, incurred on loans, guarantees, and insurance extended under this subchapter, the first $100,000,000 of such losses shall be borne by the Bank; the second $100,000,000 of such losses shall be borne by the Secretary of the Treasury; and any losses in ex- cess thereof shall be borne by the Bank. Reim- bursement of the Bank by the Secretary of the Treasury of the amount of losses which are to be borne by the Secretary of the Treasury as afore- said shall be from funds made available pursu- ant to section 635l of this title. All guarantees and insurance issued by the Bank shall be con- sidered contingent obligations backed by the full faith and credit of the Government of the United States of America. (Pub. L. 90–390, § 2, July 7, 1968, 82 Stat. 297.) § 635l. Authorization for appropriation of funds for losses There are hereby authorized to be appro- priated to the Secretary of the Treasury without fiscal year limitation $100,000,000 to cover the amount of any losses which are to be borne by the Secretary of the Treasury as provided in sec- tion 635k of this title. (Pub. L. 90–390, § 3, July 7, 1968, 82 Stat. 297.) § 635m. Loans, guarantees, and insurance subject to the provisions of this chapter Nothing in this subchapter shall be construed as a limitation on the powers of the Bank under subchapter I of this chapter; and except as to the standard of reasonable assurance of repay- ment required under section 635(b)(1) of this title, all loans, guarantees, and insurance ex- tended hereunder shall be subject to the provi- sions of subchapter I of this chapter and to the policies of the Bank with respect to terms of re- payment, interest rates, fees, and premiums ap- plicable to loans, guarantees, and insurance ex- tended under subchapter I of this chapter. (Pub. L. 90–390, § 4, July 7, 1968, 82 Stat. 297.) § 635n. Prohibition of loans, guarantees, and in- surance as to sales of defense articles or services The Bank shall not extend loans, guarantees, or insurance under this subchapter in connec- tion with the sale of defense articles or defense services. (Pub. L. 90–390, § 5, July 7, 1968, 82 Stat. 297.) SUBCHAPTER III—TIED AID CREDIT EXPORT SUBSIDIES § 635o. Congressional statement of purpose The purpose of this subchapter is— (1) to expand employment and economic growth in the United States by expanding United States exports to the markets of the developing world; (2) to stimulate the economic development of countries in the developing world by im- proving their access to credit for the importa- tion of United States products and services for developmental purposes; (3) to neutralize the predatory financing en- gaged in by many nations whose exports com- pete with United States exports, and thereby restore export competition to a market basis; and (4) to encourage foreign governments to enter into effective and comprehensive agree- ments with the United States to end the use of tied aid credits for exports, and to limit and Page 254 TITLE 12—BANKS AND BANKING § 635p govern the use of export credit subsidies gen- erally. (Pub. L. 98–181, title I [title VI, § 642], Nov. 30, 1983, 97 Stat. 1263.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this part’’, meaning part C (§§ 641–647, 650) of title VI of Pub. L. 98–181, title I, Nov. 30, 1983, 97 Stat. 1263, known as the Trade and Development Enhancement Act of 1983, which enacted this subchapter 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. Statutory Notes and Related Subsidiaries SHORT TITLE Pub. L. 98–181, title I [title VI, § 641], Nov. 30, 1983, 97 Stat. 1263, provided that: ‘‘This part [part C (§§ 641–647, 650) of title VI, enacting this subchapter and section 1671g of Title 19, Customs Duties, and amending sec- tions 1671a and 1671b of Title 19] may be referred to as the ‘Trade and Development Enhancement Act of 1983’.’’ § 635p. Presidential mandate to negotiate; objec- tives The President shall vigorously pursue negotia- tions to limit and set rules for the use of tied aid for exports. The negotiating objectives of the United States should include reaching agree- ments— (1) to define the various forms of tied aid credit, particularly mixed credits under the Arrangement on Guidelines for Officially Sup- ported Export Credits established through the Organization for Economic Cooperation and Development (hereinafter in this subchapter referred to as the ‘‘Arrangement’’); (2) to phase out the use of government-mixed credits by a date certain; (3) to set rules governing the use of public- private cofinancing, or other forms of mixed financing, which may have the same result as government-mixed credits of drawing on concessional development assistance to produce subsidized export financing; (4) to raise the threshold for notification of the use of tied aid credit to a 50 per centum level of concessionality; (5) to improve notification procedures so that advance notification must be given on all uses of tied aid credit; and (6) to prohibit the use of tied aid credit for production facilities for goods which are in structural oversupply in the world. (Pub. L. 98–181, title I [title VI, § 643], Nov. 30, 1983, 97 Stat. 1263.) § 635q. Establishment of tied aid credit program in United States Export-Import Bank (a) Establishment and elements of program; co- operation with Trade and Development Agency and private institutions and entities (1) The Chairman of the Export-Import Bank of the United States shall establish, within the Export-Import Bank of the United States, a pro- gram of tied aid credits for United States ex- ports. (2) The program shall be carried out in co- operation with the Trade and Development Agency and with private financial institutions or entities, as appropriate. (3) The program may include— (A) the combined use of the credits, loans, or guarantees offered by the Export-Import Bank of the United States with concessional financ- ing or grants made available under section 635r(d) of this title, by methods including the blending of the financing of, or parallel financ- ing by, the Bank and the Trade and Develop- ment Agency; and (B) the combined use of credits, loans, or guarantees offered by the Bank, with financ- ing offered by private financial institutions or entities, by methods including the blending of the financing of, or parallel financing by, the Bank and private institutions or entities. (b) Purpose of program The purpose of the tied aid credit program under this section is to offer or arrange for fi- nancing for the export of United States goods and services which is substantially as concessional as foreign financing for which there is reasonable proof that such foreign fi- nancing is being offered to, or arranged for, a bona fide foreign competitor for a United States export sale. (c) Fund The Chairman of the Bank is authorized to es- tablish a fund, as necessary, for carrying out the tied aid credit program described in this section. (d) Availability of concessional financing or grants Concessional financing or grants made avail- able under section 635r(d) of this title for the purposes of the mixed financing program estab- lished under this section shall be made available in accordance with the provisions of section 635r(c) of this title. (Pub. L. 98–181, title I [title VI, § 644], Nov. 30, 1983, 97 Stat. 1264; Pub. L. 100–418, title II, § 2204(c)(1)(A), Aug. 23, 1988, 102 Stat. 1330; Pub. L. 102–549, title II, § 202(c)(1), Oct. 28, 1992, 106 Stat. 3658.) Editorial Notes AMENDMENTS 1992—Subsec. (a)(2), (3)(A). Pub. L. 102–549 substituted ‘‘Development Agency’’ for ‘‘Development Program’’. 1988—Subsec. (a)(2). Pub. L. 100–418, § 2204(c)(1)(A)(i), substituted ‘‘Trade and Development Program’’ for ‘‘Agency for International Development’’. Subsec. (a)(3)(A). Pub. L. 100–418, § 2204(c)(1)(A)(ii), substituted ‘‘made available under section 635r(d) of this title’’ for ‘‘offered by the Agency for International Development’’ and ‘‘Trade and Development Program’’ for ‘‘Agency for International Development’’. Subsec. (d). Pub. L. 100–418, § 2204(c)(1)(A)(iii), sub- stituted ‘‘made available under section 635r(d) of this title’’ for ‘‘offered by the Agency for International De- velopment’’ and ‘‘section 635r(c) of this title’’ for ‘‘sub- sections (c) and (d) of section 635r of this title’’. Statutory Notes and Related Subsidiaries TRANSITION PROVISIONS Pub. L. 100–418, title II, § 2204(d)(2), Aug. 23, 1988, 102 Stat. 1331, provided that: