
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: 22USC2194]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
                 SUBCHAPTER I--INTERNATIONAL DEVELOPMENT
 
                         Part II--Other Programs
 
           subpart iv--overseas private investment corporation
 
Sec. 2194. Investment insurance and other programs

    The Corporation is hereby authorized to do the following:

(a) Investment insurance

    (1) To issue insurance, upon such terms and conditions as the 
Corporation may determine, to eligible investors assuring protection in 
whole or in part against any or all of the following risks with respect 
to projects which the Corporation has approved--
        (A) inability to convert into United States dollars other 
    currencies, or credits in such currencies, received as earnings or 
    profits from the approved project, as repayment or return of the 
    investment therein, in whole or in part, or as compensation for the 
    sale or disposition of all or any part thereof;
        (B) loss of investment, in whole or in part, in the approved 
    project due to expropriation or confiscation by action of a foreign 
    government;
        (C) loss due to war, revolution, insurrection, or civil strife; 
    and
        (D) loss due to business interruption caused by any of the risks 
    set forth in subparagraphs (A), (B), and (C).

    (2) Recognizing that major private investments in less developed 
friendly countries or areas are often made by enterprises in which there 
is multinational participation, including significant United States 
private participation, the Corporation may make arrangements with 
foreign governments (including agencies, instrumentalities, or political 
subdivisions thereof) or with multilateral organizations and 
institutions for sharing liabilities assumed under investment insurance 
for such investments and may in connection therewith issue insurance to 
investors not otherwise eligible hereunder, except that liabilities 
assumed by the Corporation under the authority of this subsection shall 
be consistent with the purposes of this subpart and that the maximum 
share of liabilities so assumed shall not exceed the proportionate 
participation by eligible investors in the project.
    (3) Not more than 10 per centum of the maximum contingent liability 
of investment insurance which the Corporation is permitted to have 
outstanding under section 2195(a)(1) \1\ of this title shall be issued 
to a single investor.
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    \1\ See References in Text note below.
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    (4) Before issuing insurance for the first time for loss due to 
business interruption, and in each subsequent instance in which a 
significant expansion is proposed in the type of risk to be insured 
under the definition of ``civil strife'' or ``business interruption'', 
the Corporation shall, at least sixty days before such insurance is 
issued, submit to the Committee on Foreign Relations of the Senate and 
the Committee on Foreign Affairs of the House of Representatives a 
report with respect to such insurance, including a thorough analysis of 
the risks to be covered, anticipated losses, and proposed rates and 
reserves and, in the case of insurance for loss due to business 
interruption, an explanation of the underwriting basis upon which the 
insurance is to be offered. Any such report with respect to insurance 
for loss due to business interruption shall be considered in accordance 
with the procedures applicable to reprogramming notifications pursuant 
to section 2394-1 of this title.

(b) Investment guaranties

    To issue to eligible investors guaranties of loans and other 
investments made by such investors assuring against loss due to such 
risks and upon such terms and conditions as the Corporation may 
determine: Provided, however, That such guaranties on other than loan 
investments shall not exceed 75 per centum of such investment: Provided 
further, That except for loan investments for credit unions made by 
eligible credit unions or credit union associations, the aggregate 
amount of investment (exclusive of interest and earnings) so guaranteed 
with respect to any project shall not exceed, at the time of issuance of 
any such guaranty, 75 per centum of the total investment committed to 
any such project as determined by the Corporation, which determination 
shall be conclusive for purposes of the Corporation's authority to issue 
any such guaranty: Provided further, That not more than 15 per centum of 
the maximum contingent liability of investment guaranties which the 
Corporation is permitted to have outstanding under section 2195(a)(2) 
\1\ of this title shall be issued to a single investor.

(c) Direct investment

    To make loans in United States dollars repayable in dollars or loans 
in foreign currencies (including, without regard to section 1306 of 
title 31, such foreign currencies which the Secretary of the Treasury 
may determine to be excess to the normal requirements of the United 
States and the Director of the Office of Management and Budget may 
allocate) to firms privately owned or of mixed private and public 
ownership upon such terms and conditions as the Corporation may 
determine. Loans may be made under this subsection only for projects 
that are sponsored by or significantly involve United States small 
business or cooperatives.
    The Corporation may designate up to 25 percent of any loan under 
this subsection for use in the development or adaptation in the United 
States of new technologies or new products or services that are to be 
used in the project for which the loan is made and are likely to 
contribute to the economic or social development of less developed 
countries.
    No loan may be made under this subsection to finance any operation 
for the extraction of oil or gas. The aggregate amount of loans under 
this subsection to finance operations for the mining or other extraction 
of any deposit of ore or other nonfuel minerals may not in any fiscal 
year exceed $4,000,000.

(d) Investment encouragement

    To initiate and support through financial participation, incentive 
grant, or otherwise, and on such terms and conditions as the Corporation 
may determine, the identification, assessment, surveying and promotion 
of private investment opportunities, utilizing wherever feasible and 
effective the facilities of private organizations or private investors, 
except that--
        (1) the Corporation shall not finance any survey to ascertain 
    the existence, location, extent, or quality of, or to determine the 
    feasibility of undertaking operations for the extraction of, oil or 
    gas; and
        (2) expenditures financed by the Corporation during any fiscal 
    year on surveys to ascertain the existence, location, extent, or 
    quality of, or to determine the feasibility of undertaking 
    operations for the extraction of nonfuel minerals may not exceed 
    $200,000.

(e) Special projects and programs

    To administer and manage special projects and programs, including 
programs of financial and advisory support which provide private 
technical, professional, or managerial assistance in the development of 
human resources, skills, technology, capital savings and intermediate 
financial and investment institutions and cooperatives and including the 
initiation of incentives, grants, and studies for renewable energy and 
other small business activities. The funds for these projects and 
programs may, with the Corporation's concurrence, be transferred to it 
for such purposes under the authority of section 2392(a) of this title 
or from other sources, public or private. Administrative funds may not 
be made available for incentives, grants, and studies for renewable 
energy and other small business activities.

(f) Additional insurance functions

    (1) To make and carry out contracts of insurance or reinsurance, or 
agreements to associate or share risks, with insurance companies, 
financial institutions, any other persons, or groups thereof, and 
employing the same, where appropriate, as its agent, or acting as their 
agent, in the issuance and servicing of insurance, the adjustment of 
claims, the exercise of subrogation rights, the ceding and accepting of 
reinsurance, and in any other matter incident to an insurance business; 
except that such agreements and contracts shall be consistent with the 
purposes of the Corporation set forth in section 2191 of this title and 
shall be on equitable terms.
    (2) To enter into pooling or other risk-sharing arrangements with 
multinational insurance or financing agencies or groups of such 
agencies.
    (3) To hold an ownership interest in any association or other entity 
established for the purposes of sharing risks under investment 
insurance.
    (4) To issue, upon such terms and conditions as it may determine, 
reinsurance of liabilities assumed by other insurers or groups thereof 
in respect of risks referred to in subsection (a)(1) of this section.

The amount of reinsurance of liabilities under this subpart which the 
Corporation may issue shall not in the aggregate exceed at any one time 
an amount equal to the amount authorized for the maximum contingent 
liability outstanding at any one time under section 2195(a)(1) \1\ of 
this title. All reinsurance issued by the Corporation under this 
subsection shall require that the reinsured party retain for his own 
account specified portions of liability, whether first loss or 
otherwise.

(g) Pilot equity finance program

                   (1) Authority for pilot program

        In order to study the feasibility and desirability of a program 
    of equity financing, the Corporation is authorized to establish a 4-
    year pilot program under which it may, on the limited basis 
    prescribed in paragraphs (2) through (5), purchase, invest in, or 
    otherwise acquire equity or quasi-equity securities of any firm or 
    entity, upon such terms and conditions as the Corporation may 
    determine, for the purpose of providing capital for any project 
    which is consistent with the provisions of this subpart, except 
    that--
            (A) the aggregate amount of the Corporation's equity 
        investment with respect to any project shall not exceed 30 
        percent of the aggregate amount of all equity investment made 
        with respect to such project at the time that the Corporation's 
        equity investment is made, except for securities acquired 
        through the enforcement of any lien, pledge, or contractual 
        arrangement as a result of a default by any party under any 
        agreement relating to the terms of the Corporation's investment; 
        and
            (B) the Corporation's equity investment under this 
        subsection with respect to any project, when added to any other 
        investments made or guaranteed by the Corporation under 
        subsection (b) or (c) of this section with respect to such 
        project, shall not cause the aggregate amount of all such 
        investment to exceed, at the time any such investment is made or 
        guaranteed by the Corporation, 75 percent of the total 
        investment committed to such project as determined by the 
        Corporation.

    The determination of the Corporation under subparagraph (B) shall be 
    conclusive for purposes of the Corporation's authority to make or 
    guarantee any such investment.

      (2) Equity authority limited to projects in sub-Saharan 
            Africa and Caribbean basin and marine transportation 
                              projects globally

        Equity investments may be made under this subsection only in 
    projects in countries eligible for financing under this subpart that 
    are countries in sub-Saharan Africa or countries designated as 
    beneficiary countries under section 2702 of title 19 and in marine 
    transportation projects in countries and areas eligible for OPIC 
    support worldwide using United States commercial maritime expertise.

                       (3) Additional criteria

        In making investment decisions under this subsection, the 
    Corporation shall give preferential consideration to projects 
    sponsored by or significantly involving United States small business 
    or cooperatives. The Corporation shall also consider the extent to 
    which the Corporation's equity investment will assist in obtaining 
    the financing required for the project.

                 (4) Disposition of equity interest

        Taking into consideration, among other things, the Corporation's 
    financial interests and the desirability of fostering the 
    development of local capital markets in less developed countries, 
    the Corporation shall endeavor to dispose of any equity interest it 
    may acquire under this subsection within a period of 10 years from 
    the date of acquisition of such interest.

                         (5) Implementation

        To the extent provided in advance in appropriations Acts, the 
    Corporation is authorized to create such legal vehicles as may be 
    necessary for implementation of its authorities, which legal 
    vehicles may be deemed non-Federal borrowers for purposes of the 
    Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.]. Income and 
    proceeds of investments made pursuant to this subsection may be used 
    to purchase equity or quasi-equity securities in accordance with the 
    provisions of this section: Provided, however, That such purchases 
    shall not be limited to the 4-year period of the pilot program: 
    Provided further, That the limitations contained in paragraph (2) 
    shall not apply to such purchases.

                   (6) Consultations with Congress

        The Corporation shall consult annually with the Committee on 
    Foreign Affairs of the House of Representatives and the Committee on 
    Foreign Relations of the Senate on the implementation of the pilot 
    equity finance program established under this subsection.

(Pub. L. 87-195, pt. I, Sec. 234, as added Pub. L. 91-175, pt. I, 
Sec. 105, Dec. 30, 1969, 83 Stat. 811; amended 1970 Reorg. Plan No. 2, 
Sec. 102, eff. July 1, 1970, 35 F.R. 7959, 84 Stat. 2085; Pub. L. 93-
390, Sec. 2(2), Aug. 27, 1974, 88 Stat. 764; Pub. L. 95-268, Sec. 3, 
Apr. 24, 1978, 92 Stat. 214; Pub. L. 97-65, Sec. 4, Oct. 16, 1981, 95 
Stat. 1022; Pub. L. 99-204, Secs. 6(a), 7, 8, Dec. 23, 1985, 99 Stat. 
1671, 1672; Pub. L. 100-461, title V, Sec. 555, Oct. 1, 1988, 102 Stat. 
2268-36; Pub. L. 101-218, Sec. 8(c), Dec. 11, 1989, 103 Stat. 1868; Pub. 
L. 102-549, title I, Sec. 103, Oct. 28, 1992, 106 Stat. 3651; Pub. L. 
106-31, title VI, Sec. 6001, May 21, 1999, 113 Stat. 112.)

                       References in Text

    Section 2195(a) of this title, referred to in subsecs. (a)(3), (b), 
and (f), was amended by Pub. L. 105-118, title V, Sec. 581, Nov. 26, 
1997, 111 Stat. 2435, and, as so amended, provisions formerly appearing 
in pars. (1) and (2) of subsec. (a) are now contained in par. (1).
    The Federal Credit Reform Act of 1990, referred to in subsec. 
(g)(5), 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.

                          Codification

    Amendment by Pub. L. 100-461 is based on sections 103 and 104 of 
title I of H.R. 5263, One Hundredth Congress, as passed by the House of 
Representatives on Sept. 20, 1988, and sections 103 and 104 of title I 
of S. 2757, One Hundredth Congress, as reported Sept. 7, 1988, and 
enacted into law by Pub. L. 100-461.
    In subsec. (c), ``section 1306 of title 31'' substituted for 
``section 1415 of the Supplemental Appropriation Act, 1953, [31 U.S.C. 
724]'' on authority of Pub. L. 97-258, Sec. 4(b), Sept. 13, 1982, 96 
Stat. 1067, the first section of which enacted Title 31, Money and 
Finance.


                               Amendments

    1999--Subsec. (g). Pub. L. 106-31, Sec. 6000(1), struck out heading 
and text of par. designated as (c). Text read as follows: ``The 
Corporation is authorized to establish a revolving fund to be available 
solely for the purposes specified in this subsection and to make 
transfers to the fund of a total of $10,000,000 (less amounts 
transferred to the fund before October 28, 1992) from its noncredit 
account revolving fund. The Corporation shall transfer to the fund in 
each fiscal year all amounts received by the Corporation during the 
preceding fiscal year as income on securities acquired under this 
subsection, and from the proceeds on the disposition of such securities. 
Purchases of, investments in, and other acquisitions of equity from the 
fund are authorized for any fiscal year only to the extent or in such 
amounts as are provided in advance in appropriations Acts or are 
transferred to the Corporation pursuant to section 2392(a) of this 
title.''
    Subsec. (g)(2). Pub. L. 106-31, Sec. 6001(2), in heading, 
substituted ``Equity authority limited to projects in sub-Saharan Africa 
and Caribbean basin and marine transportation projects globally'' for 
``Limitation to projects in sub-Saharan Africa and Caribbean basin'', 
and, in text, inserted ``and in marine transportation projects in 
countries and areas eligible for OPIC support worldwide using United 
States commercial maritime expertise'' after ``section 2702 of title 
19''.
    Subsec. (g)(5). Pub. L. 106-31, Sec. 6001(3), added par. (5).
    1992--Subsec. (g)(5). Pub. L. 102-549 amended par. (5) generally, 
substituting designation ``(c)'' for ``(5)''. Prior to amendment, par. 
(5) read as follows: ``Creation of fund from corporate revenues.--The 
Corporation is authorized to establish a fund to be available solely for 
the purposes specified in this subsection and to make a one-time 
transfer to the fund of $10,000,000 from its income and revenues.''
    1989--Subsec. (e). Pub. L. 101-218 inserted ``and including the 
initiation of incentives, grants, and studies for renewable energy and 
other small business activities'' after ``cooperatives'' and inserted at 
end ``Administrative funds may not be made available for incentives, 
grants, and studies for renewable energy and other small business 
activities.''
    1988--Subsec. (c). Pub. L. 100-461, at end of first undesignated 
par., struck out ``The Corporation may not purchase or invest in any 
stock in any other corporation, except that it may (1) accept as 
evidence of indebtedness debt securities convertible to stock, but such 
debt securities shall not be converted to stock while held by the 
Corporation, and (2) acquire stock through the enforcement of any lien 
or pledge or otherwise to satisfy a previously contracted indebtedness 
which would otherwise be in default, or as the result of any payment 
under any contract of insurance or guaranty. The Corporation shall 
dispose of any stock it may so acquire as soon as reasonably feasible 
under the circumstances then pertaining.'' and added second undesignated 
par. relating to designation of up to 25 percent of loan for use in 
development or adaptation of new technologies or new products or 
services.
    Subsec. (f). Pub. L. 100-461, which directed that first sentence of 
last par. be struck out, was executed as probable intent of Congress by 
striking out first sentence of concluding provisions, before ``The 
amount of reinsurance'', which read as follows: ``The authority granted 
by paragraph (3) may be exercised notwithstanding the prohibition under 
subsection (c) of this section against the Corporation purchasing or 
investing in any stock in any other corporation.''
    Subsec. (g). Pub. L. 100-461 added subsec. (g).
    1985--Subsec. (a)(1)(D). Pub. L. 99-204, Sec. 6(a)(1), added subpar. 
(D).
    Subsec. (a)(4). Pub. L. 99-204, Sec. 6(a)(2), substituted 
``insurance for the first time for loss due to business interruption'' 
for ``civil strife insurance for the first time'' and ``definition of 
`civil strife' or `business interruption' '' for ``definition of civil 
strife'' and inserted provision that in the case of insurance for loss 
due to business interruption an explanation of the underwriting basis 
upon which the insurance is to be offered be submitted and provision 
that any report with respect to insurance for loss due to business 
interruption be considered in accordance with procedures applicable to 
reprogramming notifications pursuant to section 2394-1 of this title.
    Subsec. (b). Pub. L. 99-204, Sec. 7, substituted ``15'' for ``10''.
    Subsec. (f)(2). Pub. L. 99-204, Sec. 8, struck out ``other national 
or'' after ``arrangements with''.
    1981--Subsec. (a)(1)(C). Pub. L. 97-65, Sec. 4(a)(1), inserted 
reference to civil strife.
    Subsec. (a)(2). Pub. L. 97-65, Sec. 4(a)(2), substituted ``eligible 
investors in the project'' for ``eligible investors in the total project 
financing''.
    Subsec. (a)(3). Pub. L. 97-65, Sec. 4(a)(3), substituted ``which the 
Corporation is permitted to have outstanding under section 2195(a)(1) of 
this title'' for ``which the Corporation is authorized to issue under 
this subsection''.
    Subsec. (a)(4). Pub. L. 97-65, Sec. 4(a)(4), added par. (4).
    Subsec. (b). Pub. L. 97-65, Sec. 4(b)(1), substituted ``which the 
Corporation is permitted to have outstanding under section 2195(a)(2) of 
this title'' for ``which the Corporation is authorized to issue under 
this subsection''.
    Subsec. (f)(1). Pub. L. 97-65, Sec. 4(b)(2), struck out provisions 
under which the Corporation was prohibited from making or carrying out 
any association or risk-sharing agreement for the direct underwriting of 
insurance by the Corporation with others, other than on an individual 
basis where such direct underwriting facilitated the purposes of the 
Corporation as set forth in section 2191 of this title.
    Subsec. (f)(4). Pub. L. 97-65, Sec. 4(b)(3), struck out provisions 
which had placed a $600,000,000 limit in any one year on the amount of 
reinsurance which the Corporation may issue and which had directed the 
Corporation to endeavor to increase to the maximum extent possible the 
specified portions of liability, whether first loss or otherwise, which 
a reinsured party must retain for his own account.
    1978--Subsec. (a)(2). Pub. L. 95-268, Sec. 3(1), struck out 
provisions relating to limitations on maximum share of liabilities 
assumed under par. (1) of this subsection.
    Subsec. (a)(3). Pub. L. 95-268, Sec. 3(2), substituted ``maximum 
contingent liability'' for ``total face amount''.
    Subsec. (a)(4) to (7). Pub. L. 95-268, Sec. 3(3), struck out pars. 
(4) to (7) which set forth requirements for participation by private 
insurance companies, multilateral organizations, or others in insurance 
programs, and limitations respecting participation by the Corporation as 
insurer under contracts of insurance.
    Subsec. (b). Pub. L. 95-268, Sec. 3(2), substituted ``maximum 
contingent liability'' for ``total face amount''.
    Subsec. (c). Pub. L. 95-268, Sec. 3(4), (5), inserted provisions 
setting forth requirements respecting United States small businesses or 
cooperatives, and substituted provisions relating to aggregate amount of 
loans for mining or other extraction of ores or other nonfuel minerals, 
for provisions prohibiting loans for mining or other extraction of ores 
or other minerals.
    Subsec. (d). Pub. L. 95-268, Sec. 3(6), substituted provisions 
setting forth exception for financing surveys relating to oil and gas 
and limitation on amount of expenditures for surveys relating to nonfuel 
minerals, for provisions setting forth proviso relating to surveys for 
mining of any deposit of ore, oil, gas, or other mineral.
    Subsec. (f)(1). Pub. L. 95-268, Sec. 3(7), inserted provisions 
setting forth exceptions for agreements and contracts.
    1974--Subsec. (a)(2). Pub. L. 93-390, Sec. 2(2)(B), inserted ``and 
institutions'' after ``multilateral organizations'' and provisions 
relating to the maximum share of liabilities assumed under par. (1)(A) 
to (C) of this subsection.
    Subsec. (a)(4) to (7). Pub. L. 93-390, Sec. 2(2)(C), added pars. (4) 
to (7).
    Subsec. (f). Pub. L. 93-390, Sec. 2(2)(D), added subsec. (f).

                         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.


                    Effective Date of 1999 Amendment

    Pub. L. 106-31, title VI, Sec. 6001, May 21, 1999, 113 Stat. 112, 
provided that the amendment made by section 6001 is effective Oct. 1, 
1999.

                          Transfer of Functions

    Functions vested by law (including reorganization plan) in Bureau of 
the Budget or Director of Bureau of the Budget transferred to President 
of the United States by section 101 of 1970 Reorg. Plan No. 2, eff. July 
1, 1970, 35 F.R. 7959, 84 Stat. 2085, set out in the Appendix to Title 
5, Government Organization and Employees. Section 102 of 1970 Reorg. 
Plan No. 2 redesignated Bureau of the Budget as Office of Management and 
Budget. 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.


     Appropriation of Moneys in Advance as Requisite to Purchases, 
Investments, or Other Acquisitions of Equity by Fund Created Under Pilot 
                         Equity Finance Program

    Section 555 of Pub. L. 100-461 provided in part: ``That purchases, 
investments or other acquisitions of equity by the fund created by 
section 104 of H.R. 5263 as hereby enacted [22 U.S.C. 2194(g)(5)] are 
limited to such amounts as may be provided in advance in appropriations 
Acts'', and further provided ``That purchases, investments or other 
acquisitions of equity by the fund created by section 104 of S. 2757 as 
hereby enacted [22 U.S.C. 2194(g)(5)] are limited to such amounts as may 
be provided in advance in appropriations Acts''.

                  Section Referred to in Other Sections

    This section is referred to in sections 2194a, 2195, 2197, 2198, 
2199, 2200, 2370 of this title.
