Sec. 222A.157 Agricultural and Productive Credit and SelfHelp Community Development Programs. (a) It is the sense of the Congress that in order to stimulate the participation of the private sector in the economic development of less-developed countries, 158 the authority conferred by this section should be used to establish pilot programs 159 to encourage private banks, credit institutions, similar private lending organizations, cooperatives, and private nonprofit development organizations to make loans on reasonable terms to organized groups and individuals residing in a community for the purpose of enabling such groups and individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. Agricultural credit and assistance for self-help community development projects should include, but not be limited to, material and such projects as wells, pumps, farm machinery, improved seed, fertilizer, pesticides, vocational training, food industry development, nutrition projects, improved breeding stock for farm animals, sanitation facilities, and looms and other handicraft aids.

(b) To carry out the purposes of subsection (a), the agency primarily responsible for administering part I is authorized to issue guaranties, on such terms and conditions as it shall determine, to private lending institutions, cooperatives, and private nonprofit development organizations 160 assuring against loss of not to exceed 50 per centum of the portfolio of such loans made by any lender to organized groups or individuals residing in a community to enable such groups or individuals to carry out agricultural credit and self-help community development projects for which they are unable to obtain financial assistance on reasonable terms. In no event shall the liability of the United States exceed 75 per centum of any one loan.

(c) The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $20,000,000.161 Not more than 10 per centum of such sum shall be provided for any one institution, cooperative, or organization.

(d) 162 The Inter-American Foundation shall be consulted in developing criteria for making loans eligible for guaranty coverage in Latin America under this section.

157 22 U.S.C. 2182a. Sec. 222A was added by sec. 8(a)(2) of the FA Act of 1974.

158 The words "in not more than six Latin American countries" and the words "in Latin America" were deleted 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. 312(a)(1) 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. 312 of H.R. 5119.

159 Previously such programs were limited to not more than six Latin American countries (Public Law 99-53; 99 Stat. 364).

160 The words "in not more than five Latin American countries", that previously appeared at this point, were struck out 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. 312(a)(2) 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. 312 of H.R. 5119.

161 This figure was increased from $15,000,000 by sec. 112(b)(2) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 364).

162 Section 586 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), authorized the President to abolish the Inter-American Foundation and made con

Continued

(e) Not to exceed $3,000,000 of the guaranty reserve established under section 223(b) shall be available to make such payments as may be necessary to discharge liabilities under guaranties issued under this section or any guaranties previously issued under section 240 of this Act.

(f) Funds held by the Overseas Private Investment Corporation pursuant to section 236 may be available for meeting necessary administrative and operating expenses for carrying out the provisions of this section through June 30, 1976.

(g) The Overseas Private Investment Corporation shall, upon enactment of this subsection, transfer to the agency primarily responsible for administering part I all obligations, assets, and related rights and responsibilities arising out of, or related to the predecessor program provided for in section 240 of this Act.

(h) The authority of this section shall continue through September 30, 1988.163

(i) Notwithstanding the limitations in subsection (c) of this section, foreign currencies owned by the United States and determined by the Secretary of the Treasury to be excess to the needs of the United States may be utilized to carry out the purposes of this section, including the discharge of liabilities under this subsection. The authority conferred by this subsection shall be in addition to authority conferred by any other provision of law to implement guaranty programs utilizing excess local currency. 164

Sec. 223.165 General Provisions.-(a) A fee shall be charged for each guaranty issued under section 222 or 222A 166 in an amount to be determined by the President. In the event the fee to be charged for such type guaranty is reduced, fees to be paid under existing contracts for the same type of guaranty may be similarly reduced.

(b) The amount of $50,000,000 of fees accumulated under prior investment guaranty provisions repealed by the Foreign Assistance Act of 1969, together with all fees collected in connection with

forming amendments to legislation related to the Inter-American Foundation to reflect the abolishment. These amendments are to be effective and executed only after the Director of the Office of Management and Budget transmits to Congress a certification that responsibilities delegated to the Director, primarily that of administering and winding-up any outstanding obligations of the Inter-American Foundation, have been fully discharged.

That certification and subsequent administration have not yet been executed. Upon execution of these requirements, sec. 586(h)(3) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), will strike subsec. (d).

163 This authority was extended from Sept. 30, 1986, to Sept. 30, 1988, by sec. 313 (d) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 190). This authority was previously extended from Sept. 30, 1983 to Sept. 30, 1986, by sec. 541(a) of the Foreign Assistance Appropriations Act, 1985 (Public Law 98-473). This amendment had been included as sec. 312(b) 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. 312 of H.R. 5119. Such authority had previously been extended from Dec. 31, 1977 to Sept. 30, 1978, by Public Law 95-88 (91 Stat. 540), from Sept. 30, 1978 to Sept. 30, 1979, by Public Law 95424 (92 Stat. 951), from Sept. 30, 1979 to Sept. 30, 1982, by Public Law 96-53 (93 Stat. 364), and from Sept. 30, 1982 to Sept. 30, 1983, by Public Law 97-438 (96 Stat. 2286).

164 Subsec. (j), which previously appeared at this point and concerned a one-time reporting requirement, was repealed by sec. 502(d)(1) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 959).

165 22 U.S.C. 2183. Sec. 223 was added by sec. 105 of the FA Act of 1969.

166 Sec. 8(a)(3) of the FA Act of 1974 inserted "section 221, 222, or 222A" in lieu of "section 221 or section 222". Subsequently, the reference to sec. 221 was struck by sec. 115 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951).

guaranties issued under section 222 167 or under prior housing guaranty authorities, 168 shall be available for meeting necessary administrative and operating expenses of carrying out the provisions of section 222 and administering housing guaranties heretofore authorized under this title and under 169 prior housing guaranty provisions repealed by the Foreign Assistance Act of 1969 (including, but not limited to expenses pertaining to personnel, supplies, and printing), subject to such limitations as may be imposed in annual appropriation Acts; for meeting management and custodial costs incurred with respect to currencies or other assets acquired under guaranties made pursuant to section 222 167 or heretofore pursuant to this title or 170 prior Latin American and other housing guaranty authorities repealed by the Foreign Assistance Act of 1969; and to pay the cost of investigating and adjusting (including cost of arbitration) claims under such guaranties; and shall be available for expenditure in discharge of liabilities under such guaranties until such time as all such property has been disposed of and all such liabilities have been discharged or have expired, or until all such fees have been expended in accordance with the provisions of this subsection. Fees collected in connection with guaranties issued under section 222A shall likewise be available to meet similar expenses, costs, or liabilities incurred in connection with the programs authorized by that section. 171 All of the foregoing fees referred to in this section together with earnings thereon and other income arising from guaranty operations under this title shall be held in a revolving fund account maintained in the Treasury of the United States. All funds in such account may be invested in obligations of the United States. Any interest or other receipts derived from such investments shall be credited to such account and may be used for the purposes cited in this section. 172

(c) Any payments made to discharge liabilities under guaranties issued under this title or 173 section 222 or heretofore under prior Latin American or other housing guaranty authorities repealed by the Foreign Assistance Act of 1969, shall be paid first out of fees referred to in subsection (b) (excluding amounts required for purposes other than the discharge of liabilities under guaranties) as long as such fees are available, and thereafter shall be paid out of funds, if any, realized from the sale of currencies or other assets acquired in connection with any payment made to discharge liabil

167 Sec. 8(a)(3) of the Foreign Assistance Act of 1974 (Public Law 93-559)struck out "this title" and inserted in lieu thereof "section 221 or section 222". Sec. 115(d) of International Development and Food Assistance Act (Public Law 95-424; 92 Stat. 945) struck out reference to section 221.

168 Sec. 117(b)(2)(A) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 540) struck out the word "hereunder" and inserted the words "under section 221 or 222 or under prior housing guaranty authorities".

169 The words to this point beginning with "222 and administering ** were substituted in lieu of "221 and section 222 of" by sec. 115(d)(2) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951).

170 The words "this title or" were added by sec. 115(d)(4) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951).

171 This sentence was added by sec. 117(b)(2) of the International Development and Food Assistance Act of 1977 (Public Law 95-88; 91 Stat. 540).

172 The final three sentences of subsec. (b) were added by sec. 310(b) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1535).

173 The words "under this title or" were inserted in lieu of "section 221 or" by sec. 115(e) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat.

ities under such guaranties as long as funds are available, and finally out of funds hereafter made available pursuant to subsection (e).

(d) All guaranties issued under section 222 or 222A or previously under section 240 of this Act 174 or heretofore under this title or 175 under prior Latin American or other housing guaranty authority repealed by the Foreign Assistance Act of 1969 shall constitute obligations, in accordance with the terms of such guaranties 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.

(e)(1) 176 There is hereby authorized to be appropriated to the President such amounts, to remain available until expended, as may be necessary from time to time to carry out the purposes of this title.

(2) 176 (A) In order to meet obligations incurred for the payment of claims pursuant to loan guaranties described in subsection (d), the Administrator of the agency primarily responsible for administering part I may, to the extent that reserves are not sufficient, borrow from time to time from the Treasury except that

(i) the Administrator may exercise the authority to borrow under this paragraph only to such extent or in such amounts as are provided in advance in appropriation Acts; and

(ii) the amount borrowed under this paragraph which is outstanding at any one time may not exceed $100,000,000.177 (B) Any such borrowing shall bear interest at a rate determined by the Secretary of the Treasury, taking into account the current average market yield on outstanding marketable obligations of the United States of comparable maturities. The Secretary of the Treasury shall make loans under this paragraph and for such purpose may borrow on the credit of the United States in accordance with subchapter I of chapter 31 of title 31 of the United States Code.

(f) In the case of any loan investment guaranteed under section 222,167 the agency primarily responsible for administering part I shall prescribe the maximum rate of interest allowable to the eligible investor, which maximum rate shall not exceed by more than 1 per centum the then current rate of interest applicable to housing mortgages insured by the Department of Housing and Urban Development.178 The maximum allowable rate of interest under this subsection shall be prescribed by the agency as of the date the

174 Sec. 8(a)(5) of the FA Act of 1974 substituted "section 221, 222, 222A, or previously under section 240 of this Act" in lieu of "section 221 or section 222." Subsequently, sec. 115(f) of Public Law 95-424 struck out the reference to sec. 221.

175 The words "under this title or" were added by sec. 115(f)(2) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951).

176 The para. designation "(1)" and a new para. (2) were 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. 311(c) 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. 311 of H.R. 5119.

177 $100,000,000 was substituted in lieu of $40,000,000 by title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (sec. 101(e) of the Continuing Appropriations for 1988, Public Law 100-202; 101 Stat. 1329).

178 Language which specified that the maximum rate of interest should not be less than onehalf of 1 per centum above the then current rate of interest applicable to housing_mortgages insured by HUD, was struck out by sec. 112(c) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 364).

project covered by the investment is officially authorized and, prior to the execution of the contract, the agency may amend such rate at its discretion, consistent with the provisions of subsection (f).

(g) Housing guaranties committed, authorized, or outstanding heretofore under this title or 179 under prior housing guaranty authorities repealed by the Foreign Assistance Act of 1969 shall continue subject to provisions of law originally applicable thereto and fees collected hereafter with respect to such guaranties shall be available for the purposes specified in subsection (b).

(h) No payment may be made under any guaranty issued pursuant to this title for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.

(i) 180*** [Repealed-1978]

(j) 181 Guaranties shall be issued under section 222 167 only for housing projects which are coordinated with and complementary to any development assistance being furnished under chapter 1 of this part and which 182 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. 183

Sec. 224.184 Trade Credit Insurance Program for Central America. (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 1945,185 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

179 The words "heretofore under this title or" were added by sec. 115(h) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 951).

180 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).

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

182 The words to this point beginning with "are coordinated with and" were substituted by sec. 112(d)(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 (3)". 183 Title II of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (division A, sec. 101(d) of Public Law 105-277; 112 Stat. 2681) struck out the third and fourth sentences of subsec. (j). The fourth sentence had previously been amended and restated by sec. 112(d)(2) of the International Development Cooperation Act of 1979 (Public Law 96-53; 93 Stat. 364). The two stricken sentences, as amended, had read as follows:

"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.".

184 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. Reference in the section title to Central America was added by the Support for East European Democracy (SEED) Act of 1989 (Public Law 101-179; 103 Stat.

185 For text, see Legislation on Foreign Relations Through 2000, vol. III.