Title 12 — Banks and BankingRelease 119-73

§635k Apportionment of losses incurred on loans, guarantees, and insurance; reimbursement; contingent obligations

Title 12 › Chapter CHAPTER 6A— - EXPORT-IMPORT BANK OF THE UNITED STATES › Subchapter SUBCHAPTER II— - EXPORT FINANCING › § 635k

Last updated Apr 6, 2026|Official source

Summary

If the Bank’s board finds the Bank has losses on loans, guarantees, or insurance under this law, the losses are split this way: the Bank covers the first $100,000,000, the Secretary of the Treasury covers the next $100,000,000, and the Bank covers any amount above that. If the Treasury repays the Bank, the money must come from funds made available under section 635l. All guarantees and insurance the Bank issues are treated as contingent obligations backed by the full faith and credit of the United States.

Full Legal Text

Title 12, §635k

Banks and Banking — Source: USLM XML via OLRC

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 635k

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73