(i) 133 *

* [Repealed-1978]

(j) 134 Guaranties shall be issued under section 222 119 only for housing projects which are coordinated with and complementary to any development assistance being furnished under chapter 1 of this part and which 135 are specifically designed to demonstrate the feasibility and suitability of particular kinds of housing or of financial or other institutional arrangements. Of the aggregate face value of housing guaranties hereafter issued under this title, not less than 90 per centum shall be issued for housing suitable for families with income below the median income (below the median urban income for housing in urban areas) in the country in which the housing is located. The face value of guaranties issued with respect to housing in any country shall not exceed $25,000,000 in any fiscal year, and the average face value of guaranties issued in any fiscal year shall not exceed $15,000,000. Of the total amount of housing guaranties authorized to be issued under section 222 through September 30, 1982, not less than a face amount of $25,000,000 shall be issued for projects in Israel and not less than a face amount of $25,000,000 shall be issued for projects in Egypt."

136

Sec. 224.137 Trade Credit Insurance Program.-(a) In order to enable the Export-Import Bank of the United States (hereafter in this section referred to as the "Bank") to determine that there exists reasonable assurance of repayment as required under section 2(b)(1)(B) of the Export-Import Bank Act of 1945,138 the agency primarily responsible for administering part I of this Act (hereafter in this section referred to as the "Agency") is authorized to provide guarantees to the Bank for liabilities to be incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of 1945 for financing for transactions involving the export of goods and services for the use of the private sector in Central American countries.

(b)(1) Guarantees provided by the Agency pursuant to the authority of subsection (a) shall be for short-term guarantees and insurance extended by the Bank which shall be repayable within a period not to exceed one year from the date of arrival at the port of importation of the goods and services covered by such guarantees or insurance. Guarantees or insurance extended by the Bank and

111 Subsec. (i), which had authorized sections 221 and 222 to continue in force until Sept. 30, 1979, was repealed by sec. 115(i) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 952).

Sec. 311(5)(B) of Public Law 94-161 (89 Stat. 849) added subsection (j).

135 The words to this point beginning with "are coordinated with and" were substituted by sec. 112d 1) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 364) in lieu of the following: "(1) except for regional projects are in countries which are receiving, or which in the previous two fiscal years have received, development assistance under chapter 1 of part I of this Act, (2) are coordinated with and complementary to such assistance, and (B)".

136 This sentence was amended and restated by sec. 112(d)(2) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 364). It formerly read as follows: "Notwithstanding the provisions of the first sentence of this subsection, the President is authorized to issue housing guaranties until September 30, 1978, as follows: In Israel, not exceeding a face amount of $75,000,000, in Portugal, not exceeding a face amount of $30,000,000, and in Lebanon, not exceeding a face amount of $30,000,000,"

137 22 U.S.C. 2184. Sec. 224 was added by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985, as contained in the Continuing Appropriations Act, 1985 (Public Law 98-473; 98 Stat. 1903). This amendment had been included as sec. 1011 of H.R. 5119, the International Security and Development Cooperation Act of 1984, as passed by the House on May 10, 1984. Sec. 541(a) enacted sec. 1011 of H.R. 5119.

138 For text, see vol. II, sec. H.

guaranteed by the Agency pursuant to subsection (a) shall be provided by the Bank in accordance with criteria and procedures agreed to by the Agency and the Bank. Such agreement shall also provide for the establishment of a reserve fund by the Agency, with such funds made available to the reserve as the Agency deems necessary to discharge liabilities under guarantees provided by the Agency pursuant to subsection (a).

(2) The administrator of such agency shall transmit copy of such agreement to the Speaker of the House of Representatives and to the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(c) The Agency shall not enter into any commitments to guarantee under subsection (a) after September 30, 1989.

(d) of the funds authorized to be appropriated for chapter 4 of part II of this Act, there are authorized to be made available such sums as may be deemed necessary by the Agency to discharge liabilities under guarantees entered into under subsection (a).

(e) Commitments to guarantee under subsection (a) are authorized only to the extent and in the amounts provided in appropriations Acts, not to exceed $300,000,000 in the fiscal year 1985.139

(f) To the extent that any of the funds made available pursuant to subsection (d) are paid out for a claim arising out of liabilities guaranteed under subsection (a), amounts received after the date of such payment, with respect to such claim, shall be credited to the reserve fund referred to in subsection (b), shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Agency to the Bank for guarantees under subsection (a).

(g) Beginning on a date six months after the date of enactment of this section, and at intervals of six months thereafter, the administrator of the agency primarily responsible for administering part I of this Act and the President of the Export-Import Bank of the United States shall 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 credits during the preceding six-month period.

(h) The Export-Import Bank shall provide without reimbursement such administrative and technical assistance to the Agency as the Bank and the Agency deem appropriate to assist the Agency in carrying out this section.

Title IV-Overseas Private Investment Corporation 140

Sec. 231.141 Creation, Purpose and Policy.-To mobilize and facilitate the participation of United States private capital and skills in the economic and social development 142 of less developed friend

139 Foreign Assistance Appropriations Act, 1985 (sec. 101 of the Continuing Appropriations Act, 1985; Public Law 98-473; 98 Stat. 1891) provides:

"Trade credit insurance program: During the fiscal year 1985, total commitments to guarantee or insure loans for the Trade credit insurance program' shall not exceed $300,000,000 of contingent liability for loan principal."

140 A new title IV was added by sec. 105 of the FA Act of 1969. Prior to this, title IV had been titled "Surveys of Investment Opportunities." For Executive order concerning OPIC, see page

439.

422 U.S.C. 2191. Sec. 231 was added by sec. 105 of the FA Act of 1969.

142 Sec. 21A) of the OPIC Amendments Act of 1974 (Public Law 93-390, 83 Stat. 809) substituted "development" in lieu of "progress".

ly countries and areas, thereby complementing the development assistance objectives of the United States, there is hereby created the Overseas Private Investment Corporation (hereinafter called the "Corporation"), which shall be an agency of the United States under the policy guidance of the Secretary of State.

The 143 Corporation, in determining whether to provide insurance, financing, or reinsurance for a project, shall especially

(1) be guided by the economic and social development impact and benefits of such a project and the ways in which such a project complements, or is compatible with, other development assistance programs or projects of the United States or other donors; and

(2) give preferential consideration to investment projects in less developed countries that have per capita incomes of $680 or less in 1979 United States dollars, and restrict its activities with respect to investment projects in less developed countries that have per capita incomes of $2,950 or more in 1979 United States dollars. 144

In carrying out its purpose, the Corporation, utilizing broad criteria, shall undertake

(a) 145 to conduct financing, insurance, and reinsurance operations on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness of projects;

(b) to utilize private credit and investment institutions and the Corporation's guaranty authority as the principal means of mobilizing capital investment funds;

(c) to broaden private participation and revolve its funds through selling its direct investments to private investors whenever it can appropriately do so on satisfactory terms;

(d) to conduct its insurance operations with due regard to principles of risk management including 146 efforts to share its insurance risks and reinsurance 147 risks;

(e) 148 to the maximum degree possible consistent with its purposes

(1) to give preferential consideration in its investment insurance, reinsurance, and guaranty activities to investment projects sponsored by or involving United States small business; and

143 This paragraph was added by sec. 201) of Public Law 95-268 (92 Stat. 213).

The per capita income levels were increased from $520 and $1,000 in 1975 US. dollars to $680 and $2,950 in 1979 U.S. dollars, respectively, by sec. 2(1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

145 Subsec. (a) was amended by sec. 2(1B) of the OPIC Amendments Act of 1974 (Public Law 93-390; 83 Stat. 809). It formerly read as follows: "(a) to conduct financial soundness of projects and the availability of financing from other sources on appropriate terms;".

146 Sec. 2(1)(C) of the OPIC Amendments Act of 1974 (Public Law 93-390) struck the words, "when appropriate," which appeared at this point.

147 Sec. 2(1)(C) of the OPIC Amendments Act of 1974 (Public Law 93-390) added the words "and reinsurance".

*** Subsec. (e), as amended by Public Law 93-390, was amended and restated by sec. 2(2) of Public Law 95-268 (92 Stat. 213). It formerly read as follows:

"(e) to give preferential consideration in its investment insurance, financing, and reinsurance activities (to the maximum extent practicable consistent with the Corporation's purposes) to investment projects involving businesses of not more than $2,500,000 net worth or with not more than $7,500,000 in total assets;".

(2) to increase the proportion of projects sponsored by or significantly involving United States small business to at least 30 percent of all projects insured, reinsured, or guaranteed by the Corporation;

(f) 149 to consider in the conduct of its operations the extent to which less developed country governments are receptive to private enterprise, domestic and foreign, and their willingness and ability to maintain conditions which enable private enterprise to make its full contribution to the development process; (g) 149 to foster private initiative and competition and discourage monopolistic practices;

(h) 149 to further to the greatest degree possible, in a manner consistent with its goals, the balance-of-payments and employment 150 objectives of the United States;

(i) 149 to conduct its activities in consonance with the activities of the agency primarily responsible for administering part I and the international trade, investment, and financial policies of the United States Government, and to seek to support those developmental projects having positive trade benefits for the United States; 151

(j) 149 to advise and assist, within its field of competence, interested agencies of the United States and other organizations, both public and private, national and international, with respect to projects and programs relating to the development of private enterprise in less developed countries and areas;

(k) 152 (1) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause such investor (or the sponsor of an investment project in which such investor is involved) significantly to reduce the number of his employees in the United States because he is replacing his United States production with production from such investment which involves substantially the same product for substantially the same market as his United States production; and (2) to monitor conformance with the representations of the investor on which the Corporation relied in making the determination required by clause (1);

149 Sec. 2(5) of Public Law 95-268 (92 Stat. 214) struck subsecs. (f) and (1) and redesignated subsecs. (g) through (n) as (f) through (1), respectively. Subsecs. (f) and (1) formerly read as follows: "(f) to encourage and support only those private investments in less developed friendly countries and areas which are sensitive and responsive to the special needs and requirements of their economies, and which contribute to the social and economic development of their people; "(1) to the maximum extent practicable, to give preferential consideration in the Corporation's investment insurance, financing, and reinsurance activities to investment projects in the less developed friendly countries which have per capita incomes of $450 or less in 1973 United States dollars; and".

150 Sec. 2(1)(E) of the OPIC Amendments Act of 1974 (Public Law 93-390) added the words "and employment".

151 The words ", and to seek to support those developmental projects having positive trade benefits for the United States" were added by sec. 2(2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

152 This subsection was originally added as subsec. (m) by sec. 2(1H) of the OPIC Amendments Act of 1974 (Public Law 93-390). It was redesignated as subsec. (k) by sec. 2(5) of Public Law 95268 (92 Stat. 214).

(1) 153 to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause a significant reduction in the number of employees in the United States; and

(m) 154 to refuse to insure, reinsure, or finance any investment subject to performance requirements which would reduce substantially the positive trade benefits likely to accrue to the United States from the investment.

Sec. 232.155 Capital of the Corporation.-The President is authorized to pay in as capital of the Corporation, out of dollar receipts made available through the appropriation process from loans made pursuant to this part and from loans made under the Mutual Security Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the payment of such capital by the President, the Corporation shall issue an equivalent amount of capital stock to the Secretary of the Treasury.

Sec. 233.156 Organization and Management.—(a) Structure of the Corporation.-The Corporation shall have a Board of Directors, a President, an Executive Vice President, and such other officers and staff as the Board of Directors may determine.

(b) Board of Directors.-All powers of the Corporation shall vest in and be exercised by or under the authority of its Board of Directors ("the Board") which shall consist of fifteen Directors, 157 including the Chairman, with eight Directors 158 constituting a quorum for the transaction of business. The Administrator of the Agency for International Development shall be the Chairman of the Board, ex-officio.159 The United States Trade Representative shall be the Vice Chairman of the Board, ex officio, except that the United States Trade Representative may designate the Deputy United States Trade Representative to serve as Vice Chairman of the Board in place of the United States Trade Representative.160 Eight Directors 158 (other than the President of the Corporation, appointed pursuant to subsection (c) who shall serve as a Director ex officio 161) shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall not be officials or employees of the Government of the United States. At least two of the eight Directors 162 appointed under the preceding

This subsection was added as subsec. (n) by sec. 2(4) of Public Law 95-268 (92 Stat. 213) and redesignated as subsec. (1) by sec. 2(5) of the same Act.

Subsec (m) was added by sec. 2(3C) of the OPIC Amendments Act of 1981 (Public Law 9765; 95 Stat. 1021).

22 U.S.C. 2192. Sec. 232 was added by sec. 105 of the FA Act of 1969. *22 U.S.C. 2193. Sec. 233 was added by sec. 105 of the FA Act of 1969.

The number of Directors was increased from 11 to 15 by sec. 3(a)(1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

The number of Directors was increased from six to eight by sec. 3(a) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

This function of the Administrator was transferred to the Director of IDCA, pursuant to sec. 6 of Reorganization Plan No. 2 of 1979 (establishing IDCA).

This sentence was added by sec. 3(a2) of the OPIC Amendments Act of 1981 (Public Law 97-65, 95 Stat. 1021), effective Oct. 1, 1981.

The words "ex officio" were added by sec. 3(a) of the OPIC Amendments Act of 1981 Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981.

"The number of Directors was increased from one of the six to two of the eight by sec. 3(a) of The OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022), effective Oct. 1, 1981.