PRIA, Government Policy, Made Personal

Summary

Allows the President to guarantee the Export-Import Bank for short-term guarantees or insurance that support U.S. exports sold for private use in Poland. These guarantees must be short-term and paid back within one year after the goods or services arrive at the import port. The Bank must follow rules agreed with the Agency for International Development (AID). AID must set up a reserve fund and the AID Administrator may put in money the Administrator thinks is needed. Money from the Economic Support Fund may be used to pay claims if the President decides, and any money later recovered for those claims must go back into the reserve. Any guarantee commitments need advance funding from Congress and total outstanding contingent liability for loan principal may not exceed $200,000,000 in any fiscal year. No guarantees may be committed after September 30, 1992. The Export-Import Bank must give AID free administrative and technical help as needed. The Bank can charge fees and premiums to cover its costs and risks; any excess fees go into the reserve fund and can be used to pay the Bank. Normal limits on using foreign assistance for Poland do not apply here. Definitions: administering agency = Agency for International Development; Administrator = head of AID; Bank = Export-Import Bank of the United States.

Title 22, §2185

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)General authority

(1)Assurance to Export-Import Bank of repayment

The President is authorized to provide guarantees to the Bank for liabilities described in paragraph (2) in order to satisfy the requirement of section 2(b)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(B)) that the Bank have reasonable assurance of repayment.

(2)Liabilities which may be guaranteed

The liabilities that may be guaranteed under paragraph (1) are liabilities incurred by the Bank in connection with guarantees or insurance provided under the Export-Import Bank Act of 1945 [12 U.S.C. 635 et seq.] for financing for transactions involving the export of goods and services for the use of the private sector in Poland.

(b)Guarantees available only for short-term guarantees and insurance

Guarantees provided under 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.

(c)Agreement on criteria and procedures

Guarantees or insurance extended by the Bank and guaranteed pursuant to subsection (a) shall be provided by the Bank in accordance with criteria and procedures agreed to by the Administrator and the Bank.

(d)Reserve fund

The agreement referred to in subsection (c) shall also provide for the establishment of a reserve fund by the administering agency, with such funds made available to the reserve as the Administrator deems necessary to discharge liabilities under guarantees provided under subsection (a).

(e)Discharge of liabilities

(1)Funds which may be used

Such amounts of the funds made available to carry out part IV of subchapter II of this chapter (relating to the economic support fund) as the President determines are necessary may be made available to discharge liabilities under guarantees entered into under subsection (a).

(2)Crediting of subsequent payments

To the extent that any of the funds made available pursuant to paragraph (1) 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 established pursuant to subsection (d), shall be merged with the funds in such reserve, and shall be available for the purpose of payments by the Administrator to the Bank for guarantees under subsection (a).

(f)Appropriations action required

Commitments to guarantee under subsection (a) are authorized only to the extent and in the amounts provided in advance in appropriations Acts.

(g)Limitation on outstanding commitments

The aggregate amount of outstanding commitments under subsection (a) may not exceed $200,000,000 of contingent liability for loan principal during any fiscal year.

(h)Omitted

(i)Administrative and technical assistance

The Bank shall provide, without reimbursement, such administrative and technical assistance to the administering agency as the Bank and the Administrator determine appropriate to assist the administering agency in carrying out this section.

(j)Fees and premiums

The Bank is authorized to charge fees and premiums, in connection with guarantees or insurance guaranteed by the administering agency under subsection (a), that are commensurate (in the judgment of the Bank) with the Bank’s administrative costs and the risks covered by the agency’s guarantees. Any amounts received by the Bank in excess of the estimated costs incurred by the Bank in administering such guarantees or insurance—

(1)shall be credited to the reserve fund established pursuant to subsection (d),

(2)shall be merged with the funds in such reserve, and

(3)shall be available for the purpose of payments by the administering agency to the Bank for guarantees under subsection (a).

(k)Restrictions not applicable

Prohibitions on the use of foreign assistance funds for assistance for Poland shall not apply with respect to the funds made available to carry out this section.

(l)Expiration of authority

The President may not enter into any commitments to guarantee under subsection (a) after September 30, 1992.

(m)Definitions

For purposes of this section

(1)

(2)the term “Administrator” means the Administrator of the Agency for International Development; and

(3)the term “Bank” means the Export-Import Bank of the United States.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Export-Import Bank Act of 1945, referred to in subsec. (a)(2), is act July 31, 1945, ch. 341, 59 Stat. 526, which is classified generally to subchapter I (§ 635 et seq.) of chapter 6A of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

Short Title

note set out under section 635 of Title 12 and Tables. Codification Subsec. (h) of this section, which required the Administrator and the President of the Bank, every 6 months, to 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 guarantees and insurance provided by the Bank and guaranteed under this section during the preceding 6-month period, terminated, effective May 15, 2000, pursuant to section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. See, also, page 148 of House Document No. 103–7.

Statutory Notes and Related Subsidiaries

Conforming Reference Pub. L. 101–179, title III, § 304(c), Nov. 28, 1989, 103 Stat. 1314, provided that: “With respect to Poland, any reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 [Pub. L. 101–167, Nov. 21, 1989, 103 Stat. 1195], to section 224 of the Foreign Assistance Act of 1961 [22 U.S.C. 2184] shall be deemed to be a reference to section 225 of that Act [22 U.S.C. 2185] (as enacted by this section).”

Executive Documents

Delegation of Functions For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.

§2185 Trade Credit Insurance Program for Poland