§2213 — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

Allows the President to set up a United States Microfinance Loan Facility to pool and manage risks from natural disasters, war or civil conflict, national financial crises, or short-term financial shocks that could hurt U.S.-supported financial intermediaries. Facility — a fund to give loans or loan guarantees to those intermediaries so they do not go bankrupt and can resume normal operations within a reasonable time. The Administrator (the agency official in charge) can make loans or guarantees, set terms and fees, and must follow relevant development policy rules when appropriate. No single event may get more than $30,000,000 in principal in any fiscal year. Guarantees are backed by the U.S. government, but the government will not pay losses caused by the claimant’s fraud or misrepresentation. For fiscal years 2005 through 2009, funds cannot be used until 15 days after the congressional committees in section 2394–1 are notified. Funds for subsidy costs (see section 661a(5)) and administrative costs may come from amounts for subchapter I for each of those years, in addition to other available funds. Certain legal restrictions (including section 2370(q) and section 2354(a)) do not prevent providing this assistance as described.

Title 22, §2213

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)The President is authorized to establish a United States Microfinance Loan Facility (in this section referred to as the “Facility”) to pool and manage the risk from natural disasters, war or civil conflict, national financial crisis, or short-term financial movements that threaten the long-term development of United States-supported financial intermediaries.

(b)(1)The Administrator shall make disbursements from the Facility to United States-supported financial intermediaries to prevent the bankruptcy of such institutions caused by—

(A)natural disasters;

(B)national wars or civil conflict; or

(C)national financial crisis or other short-term financial movements that threaten the long-term development of United States-supported financial intermediaries.

(2)Assistance under this section shall be in the form of loans or loan guarantees for financial intermediaries that demonstrate the capacity to resume self-sustained operations within a reasonable time period.

(3)During each of the fiscal years 2005 through 2009, funds may not be made available from the Facility until 15 days after notification of the proposed availability of the funds has been provided to the congressional committees specified in section 2394–1 of this title in accordance with the procedures applicable to reprogramming notifications under that section.

(c)(1)In providing the credit assistance authorized by this section, the Administrator should apply, as appropriate, the policy provisions in subchapter I of this chapter that are applicable to development assistance activities.

(2)(A)The provisions of section 2370(q) of this title, or any comparable provision of law, shall not be construed to prohibit assistance to a country in the event that a private sector recipient of assistance furnished under this section is in default in its payment to the United States for the period specified in such section.

(B)Assistance may be provided under this section without regard to section 2354(a) of this title.

(3)(A)Credit assistance provided under this section shall be offered on such terms and conditions, including fees charged, as the Administrator may determine.

(B)The principal amount of loans made or guaranteed under this section in any fiscal year, with respect to any single event, may not exceed $30,000,000.

(C)No payment may be made under any guarantee issued under this section for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.

(4)All guarantees issued under this section shall constitute obligations, in accordance with the terms of such guarantees, of the United States of America, and the full faith and credit of the United States of America is hereby pledged for the full payment and performance of such obligations to the extent of the guarantee.

(d)(1)Of the amounts made available to carry out subchapter I of this chapter for each of the fiscal years 2005 through 2009, such sums as may be necessary may be made available for—

(A)the subsidy cost, as defined in section 661a(5) of title 2, to carry out this section; and

(B)the administrative costs to carry out this section.

(2)Amounts made available under paragraph (1) are in addition to amounts available under any other provision of law to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 2152b of this title.

Prior Provisions

A prior section 2213, Pub. L. 87–195, pt. I, § 253, as added Pub. L. 87–565, pt. I, § 106, Aug. 1, 1962, 76 Stat. 258; amended Pub. L. 88–205, pt. I, § 106(c), Dec. 16, 1963, 77 Stat. 383, related to availability of receipts from loans for Alliance for Progress, prior to repeal by Pub. L. 95–424, title I, § 102(g)(1)(A), title VI, § 605, Oct. 6, 1978, 92 Stat. 942, 961, effective Oct. 1, 1978.

Amendments

2019—Subsec. (a). Pub. L. 115–428, § 4(g)(1), substituted “President” for “Administrator” and “United States-supported financial intermediaries” for “United States-supported microfinance institutions”. Subsec. (b)(1). Pub. L. 115–428, § 4(g)(2)(A), substituted “United States-supported financial intermediaries” for “United States-supported microfinance institutions” in introductory provisions and in subpar. (C). Subsec. (b)(2). Pub. L. 115–428, § 4(g)(2)(B), substituted “financial intermediaries” for “microfinance institutions”. 2004—Subsec. (b)(3). Pub. L. 108—484, § 5(c)(2)(A), substituted “2005 through 2009” for “2001 and 2002”. Subsec.(d)(1). Pub. L. 108—484, § 5(c)(2)(B), substituted “for each of the fiscal years 2005 through 2009, such sums as may be necessary” for “for the fiscal year 2001, up to $5,000,000”. Subsec. (e). Pub. L. 108–484, § 5(c)(2)(C), struck out heading and text of subsec. (e) which defined “Administrator”, “appropriate congressional committees”, and “United States-supported microfinance institution” for purposes of this section.

Statutory Notes and Related Subsidiaries

References to Subchapter I Deemed To Include Certain Parts of Subchapter IIReferences to subchapter I of this chapter are deemed to include parts IV (§ 2346 et seq.), VI (§ 2348 et seq.), and VIII (§ 2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and section 2348c and 2349aa–5 of this title.

§2213 United States Microfinance Loan Facility