
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2186]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
                 SUBCHAPTER I--INTERNATIONAL DEVELOPMENT
 
                         Part II--Other Programs
 
         subpart iii--shelter and other credit guaranty programs
 
Sec. 2186. Loan guarantees to Israel program


(a) In general

    Subject to the terms and conditions of this section, during the 
period beginning October 1, 1992, and ending September 30, 1997, the 
President is authorized to issue guarantees against losses incurred in 
connection with loans to Israel made as a result of Israel's 
extraordinary humanitarian effort to resettle and absorb immigrants into 
Israel from the republics of the former Soviet Union, Ethiopia and other 
countries. In the event that less than the full amount authorized to be 
issued under subsection (b) of this section is issued in such period, 
the authority to issue the balance of such guarantees shall be available 
in the fiscal year ending on September 30, 1998.

(b) Fiscal year levels

    The President is authorized to issue guarantees in furtherance of 
the purposes of this section. Subject to subsection (d) of this section, 
the total principal amount of guarantees which may be issued by the 
President under this section shall be up to $10,000,000,000 which may be 
issued as follows:
        (1) in fiscal year 1993, up to $2,000,000,000 may be issued on 
    October 1, 1992 or thereafter;
        (2) subject to subsection (d) of this section, in fiscal years 
    1994 through 1997, up to $2,000,000,000 in each fiscal year may be 
    issued on October 1 or thereafter.
        (3) If less than the full amount of guarantees authorized to be 
    made available in a fiscal year pursuant to paragraphs (1) and (2) 
    of this subsection is issued to Israel during that fiscal year, the 
    authority to issue the balance of such guarantees shall extend to 
    any subsequent fiscal year ending on or before September 30, 1998.
        (4)(A) Not later than September 1 of each year during the period 
    in which the President is authorized to issue loan guarantees under 
    subsection (a) of this section, beginning in fiscal year 1993, the 
    President shall notify the appropriate congressional committees in 
    writing of his intentions regarding the exercise of that authority 
    for the fiscal year beginning on October 1 of that year, including a 
    statement of the total principal amount of guarantees, if any, that 
    the President proposes to issue for that fiscal year.
        (B) For purposes of this paragraph, the term ``appropriate 
    congressional committees'' means the Committee on Appropriations and 
    the Committee on Foreign Relations of the Senate and the Committee 
    on Appropriations and the Committee on Foreign Affairs of the House 
    of Representatives.

(c) Use of guarantees

    Guarantees may be issued under this section only to support 
activities in the geographic areas which were subject to the 
administration of the Government of Israel before June 5, 1967.

(d) Limitation on guarantee amount

    The amount of authorized but unissued guarantees that the President 
is authorized to issue as specified in subsection (b) of this section 
shall be reduced by an amount equal to the amount extended or estimated 
to have been extended by the Government of Israel during the previous 
year for activities which the President determines are inconsistent with 
the objectives of this section or understandings reached between the 
United States Government and the Government of Israel regarding the 
implementation of the loan program. The President shall submit a report 
to Congress no later than September 30 of each fiscal year during the 
pendency of the program specifying the amount calculated under this 
subsection and that will be deducted from the amount of guarantees 
authorized to be issued in the next fiscal year.

(e) Fees

    (1) Fees charged for the loan guarantee program under this section 
each year shall be an aggregate annual origination fee equal to the 
estimated subsidy cost of the guarantees issued under this section for 
that year, calculated by the Office of Management and Budget for the 
Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.]. This shall 
also include an amount for the administrative expenses of the Agency for 
International Development in administering the program under this 
section. All such fees shall be paid by the Government of Israel to the 
Government of the United States. Funds made available for Israel under 
part 4 of subchapter II of this chapter, may be utilized by the 
Government of Israel to pay such fees to the United States Government. 
No further appropriations of subsidy cost are needed for the loan 
guarantee authorized hereunder for fiscal year 1993 and the four 
succeeding fiscal years.
    (2) The origination fee shall be payable to the United States 
Government on a pro rata basis as each guarantee for each loan or 
increment is issued.

(f) Authority to suspend

    Except as provided in subsections (l) and (m) of this section, the 
President shall determine the terms and conditions for issuing 
guarantees. If the President determines that these terms and conditions 
have been breached, the President may suspend or terminate the provision 
of all or part of the additional loan guarantees not yet issued under 
this section. Upon making such a determination to suspend or terminate 
the provision of loan guarantees, the President shall submit to the 
Speaker of the House of Representatives and the President Pro Tempore of 
the Senate his determination to do so, including the basis for such 
suspension or termination.

(g) Procedures for suspension or termination

    Any suspension or termination pursuant to subsection (f) of this 
section shall be in accordance with the following procedures:
        (1) Upon making a determination to suspend or terminate the 
    provision of loan guarantees, the President shall submit to the 
    Speaker of the House of Representatives and the President Pro 
    Tempore of the Senate his determination to do so, including the 
    basis for such suspension or termination.
        (2) Such a suspension or termination shall cease to be effective 
    if Congress enacts, within 30 days of submission, a joint resolution 
    authorizing the assistance notwithstanding the suspension.
        (3) Any such joint resolution shall be considered in the Senate 
    in accordance with the provisions of section 601(b) of the 
    International Security Assistance and Arms Export Control Act of 
    1976.
        (4) For the purpose of expediting the consideration and 
    enactment of joint resolutions under this subsection, a motion to 
    proceed to the consideration of any such joint resolution after it 
    has been reported by the appropriate committee shall be treated as 
    highly privileged in the House of Representatives.
        (5) In the event that the President suspends the provision of 
    additional loan guarantees under subsection (f) of this section and 
    Congress does not enact a joint resolution pursuant to this 
    subsection, the provision of additional loan guarantees under the 
    program established by this section may be resumed only if the 
    President determines and so reports to Congress that the reasons for 
    the suspension have been resolved or that the resumption is 
    otherwise in the national interest.

(h) Economic context

    The effective absorption of immigrants into Israel from the 
republics of the former Soviet Union and Ethiopia within the private 
sector requires large investment and economic restructuring to promote 
market efficiency and thereby contribute to productive employment and 
sustainable growth. Congress recognizes that the Government of Israel is 
developing an economic strategy designed to achieve these goals, and 
that the Government of Israel intends to adopt a comprehensive, multi-
year economic strategy based on prudent macroeconomic policies and 
structural reforms. Congress also recognizes that these policies are 
being designed to reduce direct involvement of the government in the 
economic system and to promote private enterprise, important 
prerequisites for economic stability and sustainable growth.

(i) Consultations

    It is the sense of the Congress that, as agreed between the two 
Governments and in order to further the policies specified in subsection 
(h) of this section, Israel and the United States should continue to 
engage in consultations concerning economic and financial measures, 
including structural and other reforms, that Israel should undertake 
during the pendency of this program to enable its economy to absorb and 
resettle immigrants and to accommodate the increased debt burden that 
will result from loans guaranteed pursuant to this section. It is the 
sense of the Congress that these consultations on economic measures 
should address progress and plans in the areas of budget policies, 
privatization, trade liberalization, financial and capital markets, 
labor markets, competition policy, and deregulation.

(j) Goods and services

    During the pendency of the loan program authorized under this 
section, it is anticipated that, in the context of the economic reforms 
undertaken pursuant to subsections (h) and (i) of this section, Israel's 
increased population due to its absorption of immigrants, and the 
liberalization by the Government of Israel of its trade policy with the 
United States, the amount of United States investment goods and services 
purchased for use in or with respect to the country of Israel will 
substantially increase.

(k) Reports

    The President shall report to Congress by December 31 of each fiscal 
year until December 31, 1999, regarding the implementation of this 
section.

(l) Applicability of certain sections

    Section 2183 of this title shall apply to guarantees issued under 
subsection (a) of this section in the same manner as such section 
applies to guarantees issued under section 2182 of this title, except 
that subsections (a), (e)(1), (g), and (j) of section 2183 of this title 
shall not apply to such guarantees and except that, to the extent 
section 2183 of this title is inconsistent with the Federal Credit 
Reform Act of 1990 [2 U.S.C. 661 et seq.], that Act shall apply. Loans 
shall be guaranteed under this section without regard to sections 2181, 
2182, and 2198(c) of this title. Notwithstanding section 2183(f) of this 
title, the interest rate for loans guaranteed under this section may 
include a reasonable fee to cover the costs and fees incurred by the 
borrower in connection with this program or financing under this section 
in the event the borrower elects not to finance such costs or fees out 
of loan principal. Guarantees once issued hereunder shall be 
unconditional and fully and freely transferable.

(m) Terms and conditions

    (1) Each loan guarantee issued under this section shall guarantee 
100 percent of the principal and interest payable on such loans.
    (2) The standard terms of any loan or increment guaranteed under 
this section shall be 30 years with semiannual payments of interest only 
over the first 10 years, and with semiannual payments of principal and 
interest on a level payment basis, over the last 20 years thereof, 
except that the guaranteed loan or any increments issued in a single 
transaction may include obligations having different maturities, 
interest rates, and payment terms if the aggregate scheduled debt 
service for all obligations issued in a single transaction equals the 
debt service for a single loan or increment of like amount having the 
standard terms described in this sentence. The guarantor shall not have 
the right to accelerate any guaranteed loan or increment or to pay any 
amounts in respect of the guarantees issued other than in accordance 
with the original payment terms of the loan. For purposes of determining 
the maximum principal amount of any loan or increment to be guaranteed 
under this section, the principal amount of each such loan or increment 
shall be--
        (A) in the case of any loan issued on a discount basis, the 
    original issue price (excluding any transaction costs) thereof; or
        (B) in the case of any loan issue \1\ on an interest-bearing 
    basis, the stated principal amount thereof.
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    \1\ So in original. Probably should be ``issued''.
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(Pub. L. 87-195, pt. I, Sec. 226, as added Pub. L. 102-391, title VI, 
Sec. 601, Oct. 6, 1992, 106 Stat. 1699.)

                       References in Text

    The Federal Credit Reform Act of 1990, referred to in subsecs. 
(e)(1) and (l), is title V of Pub. L. 93-344 as added by Pub. L. 101-
508, title XIII, Sec. 13201(a), Nov. 5, 1990, 104 Stat. 1388-609, which 
is classified generally to subchapter III (Sec. 661 et seq.) of chapter 
17A of Title 2, The Congress. For complete classification of this Act to 
the Code, see Short Title note set out under section 621 of Title 2 and 
Tables.
    Section 601(b) of the International Security Assistance and Arms 
Export Control Act of 1976, referred to in subsec. (g)(3), is section 
601(b) of Pub. L. 94-329, title VI, June 30, 1976, 90 Stat. 765, which 
is not classified to the Code.

                         Change of Name

    Committee on Foreign Affairs of House of Representatives treated as 
referring to Committee on International Relations of House of 
Representatives by section 1(a) of Pub. L. 104-14, set out as a note 
preceding section 21 of Title 2, The Congress.

                         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.
