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Ex-Im Bank Charter: Appendix

Additional Provisions of Title 12

Title 12, Chapter 6A, Subchapter I – General Provisions
                                                           
12 U.S.C. 635a-1  Export credit competition.
(a)  The President is authorized and requested to begin negotiations at the ministerial level with other major exporting countries to end predatory export financing programs and other forms of export subsidies, including mixed credits, in third country markets as well as within the United States.  The President shall report to the Congress prior to January 15, 1979, on progress toward meeting the goals of this section.
(b)  The Export-Import Bank of the United States is authorized to provide guarantees, insurance, and extensions of credit at rates and terms and other conditions which are, in the opinion of the Board of Directors of the Bank, competitive with those provided by the government-supported export credit instrumentalities of other nations.

12 U.S.C. 635a-2  Implementation of regulations and procedures to lessen adverse effect of loans and guarantees on industries in United States; report by United States International Trade Commission; written consideration of views of adversely affected parties.
The Bank shall implement such regulations and procedures as may be appropriate to insure that full consideration is given to the extent to which any loan or financial guarantee is likely to have an adverse effect on industries, including agriculture, and employment in the United States, either by reducing demand for goods produced in the United States or by increasing imports to the United States.  To carry out the purposes of this subsection, the Bank shall request, and the United States International Trade Commission shall furnish, a report assessing the impact of the Bank's activities on industries and employment in the United States.  Such report shall include an assessment of previous loans or financial guarantees and shall provide recommendations concerning general areas which may adversely affect domestic industries, including agriculture, and employment.  After October 1, 1983, there are authorized to be appropriated such sums as may be necessary to carry out the provisions of this section.  In all cases to which this section applies, the Bank shall consider and address in writing the views of parties or persons who may be substantially adversely affected by the loan or guarantee prior to taking final action on the loan or guarantee.  This requirement does not subject the Bank to the provisions of subchapter II of chapter 5 of Title 5.

12 U.S.C. 635a-3  Export-Import Bank financing to match foreign financing.
(a)  Noncompetitive financing; inquiry by Secretary; notification of foreign country and prospective parties to transaction
(1)  Upon receipt of information that foreign sales to the United States are being offered involving foreign official export credits which exceed limits under existing standstills, minutes, or practices to which the United States and other major exporting countries have agreed, irrespective of whether these credits are being offered by governments which are signatories to such standstills, minutes, or practices, the Secretary of the Treasury shall immediately conduct an inquiry to determine whether "noncompetitive financing" is being offered.  The inquiry, and where appropriate, the determination and authorization to the Export-Import Bank of the United States referred to in this section shall be completed and made within 60 days of the receipt of such information.
(2)  If the Secretary determines that such foreign "noncompetitive" financing is being offered, the Secretary shall request the immediate withdrawal of such financing by the foreign official export credit agency involved.
(3)  If the offer is not withdrawn or if there is no immediate response to the withdrawal request, the Secretary of the Treasury shall notify the country offering such financing and all parties to the proposed transaction that the Ex-Im Bank may be authorized to provide competing United States sellers with financing to match that available through the foreign official export financing entity.
(b)  Issuance of authorization to Bank to provide guarantees, insurance, and credits to competing United States sellers
The Secretary of the Treasury shall issue such authorization to the Bank to provide guarantees, insurance, and credits to competing United States sellers, unless the Secretary determines that--
(1)  the availability of foreign official noncompetitive financing is not likely to be a significant factor in the sale;  or
(2)  the foreign noncompetitive financing has been withdrawn.
(c)  Provision of financing by Bank pursuant to authorization
Upon receipt of authorization by the Secretary of the Treasury, the Export- Import Bank may provide financing to match that offered by the foreign official export credit entity: Provided, however, That loans, guarantees and insurance provided under this authority shall conform to all provisions of the Export- Import Bank Act of 1945, as amended [§12 U.S.C.A. 635 et seq.].

12 U.S.C. 635a-4  Guarantees for export accounts receivable and inventory.
The Export-Import Bank of the United States is authorized and directed to establish a program to provide guarantees for loans extended by financial institutions or other public or private creditors to export trading companies as defined in section 1843(c)(14)(F)(i) of this title, or to other exporters, when such loans are secured by export accounts receivable, inventories of exportable goods, accounts receivable from leases, performance contracts, grant commitments, participation fees, member dues, revenue from publications, or such other collateral as the Board of Directors may deem appropriate, and when in the judgment of the Board of Directors--
(1)  the private credit market is not providing adequate financing to enable   otherwise creditworthy export trading companies or exporters to consummate export transactions;  and
(2)  such guarantees would facilitate expansion of exports which would not otherwise occur.
The Board of Directors shall attempt to insure that a major share of any loan guarantees ultimately serves to promote exports from small, medium-size, and minority businesses or agricultural concerns.  Guarantees provided under the authority of this section shall be subject to limitations contained in annual appropriations Acts.

Title 12, Chapter 6A, Subchapter II – Export Financing

12 U.S.C. 635j  Authorization for appropriation of funds for losses.
(a)  Congressional statement of policy
It is the policy of the Congress that the Export-Import Bank of the United States should facilitate through loans, guarantees, and insurance (including coinsurance and re-insurance) those export transactions 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.
(b)  Designation of transactions on books of the Bank; limitation on commitments
The Bank shall specially designate loans, guarantees, and insurance on the books of the Bank made under authority of this subchapter.  In connection with guarantees and insurance, not less than 25 per centum of the related contractual liability of the Bank shall be taken into account for the purpose of applying the limitation imposed by section 635e of this title;  but the full amount of the related contractual liability of such guarantees and insurance shall be taken into account for the purpose of applying the limitation in section 635(c)(1) of this title, concerning the amount of guarantees and insurance the Bank may have outstanding at any one time thereunder.  The aggregate amount of loans plus 25 per centum of the contractual liability of guarantees and insurance outstanding at any one time under this subchapter shall not exceed $500,000,000.

12 U.S.C. 635k  Apportionment of losses incurred on loans, guarantees, and insurance; reimbursement; 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 excess thereof shall be borne by the Bank. Reimbursement 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 aforesaid shall be from funds made available pursuant to section 635l of this title.  All guarantees and insurance issued by the Bank shall be considered contingent obligations backed by the full faith and credit of the Government of the United States of America.

12 U.S.C. 635l  Authorization for appropriation of funds for losses.
There are hereby authorized to be appropriated 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 section 635k of this title.

12 U.S.C. 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 repayment required under section 635(b)(1) of this title, all loans, guarantees, and insurance extended hereunder shall be subject to the provisions of subchapter I of this chapter, and to the policies of the Bank with respect to terms of repayment, interest rates, fees, and premiums applicable to loans, guarantees, and insurance extended under subchapter I of this chapter.

12 U.S.C. 635n  Prohibition of loans, guarantees, and insurance as to sales of defense articles or services.
The Bank shall not extend loans, guarantees, or insurance under this subchapter in connection with the sale of defense articles or defense services.

Title 12, Chapter 6A, Subchapter III – Tied Aid Credit Export Subsidies

12 U.S.C. 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 improving their access to credit for the importation of United States products and services for developmental purposes;
(3)  to neutralize the predatory financing engaged in by many nations whose exports compete 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 agreements with the United States to end the use of tied aid credits for exports, and to limit and govern the use of export credit subsidies generally.

12 U.S.C. 635p  Presidential mandate to negotiate; objectives.
The President shall vigorously pursue negotiations to limit and set rules for the use of tied aid for exports.  The negotiating objectives of the United States should include reaching agreements--
(1)  to define the various forms of tied aid credit, particularly mixed credits under the Arrangement on Guidelines for Officially Supported 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 co-financing, 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.

12 U.S.C.  635q  Establishment of tied aid credit program in United States Export- Import Bank.
(a)  Establishment and elements of program; cooperation 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 program of tied aid credits for United States exports.
(2)  The program shall be carried out in cooperation 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 financing or grants made available under section 635r(d) of this title, by methods including the blending of the financing of, or parallel financing by, the Bank and the Trade and Development Agency;  and
(B)  the combined use of credits, loans, or guarantees offered by the Bank, with financing 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 financing 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 financing 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 establish 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 available under section 635r(d) of this title for the purposes of the mixed financing program established under this section shall be made available in accordance with the provisions of section 635r(c) of this title.

12 U.S.C. 635r  Establishment of tied aid credit program administered by the Trade and Development Agency.
(a)  Establishment and elements of program
The Director of the Trade and Development Agency shall carry out a program of tied aid credits for United States exports.  The program shall be carried out in cooperation with the Export-Import Bank of the United States and with private financial institutions or entities, as appropriate.  The program may include--
(1)  the combined use of the credits, loans, or guarantees offered by the Bank   with concessional financing or grants made available under subsection (d) of this section, by methods including the blending of the financing of, or parallel financing by, the Bank and the Trade and Development Agency;  and
(2)  the combination of concessional financing or grants made available under subsection (d) of this section with financing offered by private financial institutions or entities, by methods including the blending of the financing of, or

parallel financing by, the Trade and Development Agency and private institutions or entities.
(b)  Combination of funds with financing by Export-Import Bank or private commercial financing
These funds may be combined with financing by the Export-Import Bank of the United States or private commercial financing in order to offer, or arrange for, financing for the exportation of United States goods and services which is substantially as concessional as foreign financing for which there is reasonable proof that such foreign financing is being offered to, or arranged for, a bona fide foreign competitor for a United States export sale.
(c)  Limitation on use of Agency funds; authorization for establishment of fund
(1)  Funds which are used to carry out a tied aid credit program authorized by subsections (a) and (b) of this section shall be offered only to finance United States exports which can reasonably be expected to contribute to the advancement of the development objectives of the importing country or countries, and shall be consistent with the economic, security, and political criteria used to establish country allocations of Economic Support Funds.
(2)  The Director of the Trade and Development Agency is authorized to establish a fund, as necessary, for carrying out a tied aid credit financing program as described in this section.
(d)  Use of Economic Support Funds
Funds available to carry out chapter 4 of part II of the Foreign Assistance Act of 1961 [§22 U.S.C.A. 2346 et seq.] may be used by the Director of the Trade and Development Agency, with the concurrence of the Secretary of State (as provided under section 531 of the Foreign Assistance Act of 1961 [§22 U.S.C.A.  2346]), for the purposes for which funds made available under this subsection are authorized to be used in section 635q of this title and this section.  The Secretary of State shall exercise his authority in cooperation with the Administrator of the Agency for International Development.  Funds made available pursuant to this subsection may be used to finance a tied aid credit activity in any country eligible for tied aid credits under this subchapter.
12 U.S.C. 635s Implementation.
(a)(1)  The National Advisory Council on International Monetary and Financial Policies shall coordinate the implementation of the tied aid credit programs authorized by sections 635q and 635r of this title.
(2)  No financing may be approved under the tied aid credit programs authorized by section 635q or 635r of this title without the unanimous consent of the members of the National Advisory Council on International Monetary and Financial Policies.
(b)  The Trade and Development Agency shall be represented at any meetings of the National Advisory Council on International Monetary and Financial Policies for discussion of tied aid credit matters, and the representative of the Trade and Development Agency at any such meeting shall have the right to vote on any decisions of the Advisory Council relating to tied aid credit matters.
12 U.S.C. 635t  Definitions.
For purposes of this subchapter--
(1)  the term "tied aid credit" means credit--
(A)  which is provided for development aid purposes;
(B)  which is tied to the purchase of exports from the country granting the credit;
(C)  which is financed either exclusively from public funds, or, as a mixed credit, partly from public and partly from private funds;  and
(D)  which has a grant element, as defined by the Development Assistance Committee of the Organization for Economic Cooperation and Development, greater than zero percent;
(2)  the term "government-mixed credits" means the combined use of credits, insurance, and guarantees offered by the Export-Import Bank of the United States with concessional financing or grants offered by the Agency for International Development to finance exports;
(3)  the term "public-private co-financing" means the combined use of either official development assistance or official export credit with private commercial credit to finance exports;
(4)  the term "blending of financings" means the use of various combinations of official development assistance, official export credit, and private commercial credit, integrated into a single package with a single set of financial terms, to finance exports;
(5)  the term "parallel financing" means the related use of various combinations of separate lines of official development assistance, official export credits, and private commercial credit, not combined into a single package with a single set of financial terms, to finance exports;  and                                                     
(6)  the term "Bank" means the Export-Import Bank of the United States.