22 U.S.C. § 9622 — Terms and conditions

Page 2278 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 9622 (i) Small business development (1) In general The Corporation shall undertake, in co- operation with appropriate departments, agen- cies, and instrumentalities of the United States as well as private entities and others, to broaden the participation of United States small businesses and cooperatives and other small United States investors in the develop- ment of small private enterprise in less devel- oped friendly countries or areas. (2) Outreach to minority-owned and women- owned businesses (A) In general The Corporation shall collect data on the involvement of minority- and women-owned businesses in projects supported by the Cor- poration, including— (i) the amount of insurance and financ- ing provided by the Corporation to such businesses in connection with projects sup- ported by the Corporation; and (ii) to the extent such information is available, the involvement of such busi- nesses in procurement activities conducted or supported by the Corporation. (B) Inclusion in annual report The Corporation shall include, in its an- nual report submitted to Congress under sec- tion 9653 of this title, the aggregate data col- lected under this paragraph, in such form as to quantify the effectiveness of the Corpora- tion’s outreach activities to minority- and women-owned businesses. (Pub. L. 115–254, div. F, title II, § 1421, Oct. 5, 2018, 132 Stat. 3492.) TERMINATION OF SECTION For termination of section 7 years after Oct. 5, 2018, see section 9624 of this title. Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (b)(3), 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 sub- chapter 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. § 9622. Terms and conditions (a) In general Except as provided in subsection (b), support provided by the Corporation under this sub- chapter shall be on such terms and conditions as the Corporation may prescribe. (b) Requirements The following requirements apply to support provided by the Corporation under this sub- chapter: (1) The Corporation shall provide support using authorities under this subchapter only if it is necessary— (A) to alleviate a credit market imperfec- tion; or (B) to achieve specified development or foreign policy objectives of the United States Government by providing support in the most efficient way to meet those objec- tives on a case-by-case basis. (2) The final maturity of a loan made or guaranteed by the Corporation shall not ex- ceed the lesser of— (A) 25 years; or (B) debt servicing capabilities of the project to be financed by the loan (as deter- mined by the Corporation). (3) The Corporation shall, with respect to providing any loan guaranty to a project, re- quire the parties to the project to bear the risk of loss in an amount equal to at least 20 percent of the guaranteed support by the Cor- poration in the project. (4) The Corporation may not make or guar- antee a loan unless the Corporation deter- mines that the borrower or lender is respon- sible and that adequate provision is made for servicing the loan on reasonable terms and protecting the financial interest of the United States. (5) The interest rate for direct loans and in- terest supplements on guaranteed loans shall be set by reference to a benchmark interest rate (yield) on marketable Treasury securities or other widely recognized or appropriate benchmarks with a similar maturity to the loans being made or guaranteed, as deter- mined in consultation with the Director of the Office of Management and Budget and the Sec- retary of the Treasury. The Corporation shall establish appropriate minimum interest rates for loans, guaranties, and other instruments as necessary. (6) The minimum interest rate for new loans as established by the Corporation shall be ad- justed periodically to take account of changes in the interest rate of the benchmark financial instrument. (7)(A) The Corporation shall set fees or pre- miums for support provided under this sub- chapter at levels that minimize the cost to the Government while supporting achievement of the objectives of support. (B) The Corporation shall review fees for loan guaranties periodically to ensure that the fees assessed on new loan guaranties are at a level sufficient to cover the Corporation’s most recent estimates of its costs. (8) Any loan guaranty provided by the Cor- poration shall be conclusive evidence that— (A) the guaranty has been properly ob- tained; (B) the loan qualified for the guaranty; and (C) but for fraud or material misrepresen- tation by the holder of the guaranty, the guaranty is presumed to be valid, legal, and enforceable. (9) The Corporation shall prescribe explicit standards for use in periodically assessing the credit risk of new and existing direct loans or guaranteed loans. (10) The Corporation may not make loans or loan guaranties except to the extent that budget authority to cover the costs of the loans or guaranties is provided in advance in 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.