Sec. 201. Authorities relating to provision of support
1,447 words·~7 min read·
/bill/115/s/2463/is/section-201A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
The Corporation may make loans or guarantee loans upon such terms and conditions as the Corporation may determine. Loans and guaranties issued under paragraph
(1)may be denominated and repayable in United States dollars or foreign currencies. Loans and guaranties issued under paragraph
(1)shall be subject to the requirements of the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq.). The Corporation may, as a minority investor, support projects with funds or use other mechanisms for the purpose of purchasing, and may make and fund commitments to purchase, invest in, make pledges in respect of, or otherwise acquire, equity or quasi-equity securities or shares or financial interests of any entity, including as a limited partner or other investor in investment funds, upon such terms and conditions as the Corporation may determine. Support provided under paragraph
(1)may be denominated and repayable in United States dollars or foreign currency. The Corporation shall develop guidelines and criteria to require that the use of the authority provided by paragraph
(1)with respect to a project has a clearly defined development rationale, taking into account the following factors: The support for the project would be more likely than not to substantially reduce or overcome the effect of an identified market failure in the country in which the project is carried out. The project would not have proceeded or would have been substantially delayed without the support. The support will meaningfully contribute to transforming local conditions to promote the development of markets. The support can be shown to be aligned with commercial partner incentives. The support can be shown to have significant developmental impact and will contribute to long-term commercial sustainability. The aggregate amount of support provided under this subsection with respect to any project shall not exceed 20 percent of the aggregate amount of all equity investment made from any source to the project at the time that the Corporation approves support of the project. Support provided pursuant to this subsection shall be limited to not more than 35 percent of the Corporation’s aggregate exposure on the date that such support is provided. The Corporation shall seek to sell and liquidate any support for a project provided under this subsection as soon as commercially feasible, commensurate with other similar investors in the project. The Corporation may issue insurance or reinsurance, upon such terms and conditions as the Corporation may determine, to private sector entities and qualifying sovereign entities assuring protection of their investments in whole or in part against any or all political risks such as currency inconvertibility and transfer restrictions, expropriation, war, terrorism, and civil disturbance, breach of contract, or non-honoring of financial obligations. The Corporation may initiate and support, through financial participation, incentive grant, or otherwise, and on such terms and conditions as the Corporation may determine, feasibility studies for the planning, development, and management of, and procurement for, bilateral and multilateral development projects, including training activities undertaken in connection with such projects, for the purpose of promoting investment in such projects and the identification, assessment, surveying, and promotion of private investment opportunities, utilizing wherever feasible and effective, the facilities of private investors. The Corporation shall, to the maximum extent practicable, require any person receiving funds under the authorities of this subsection to— share the costs of feasibility studies and other project planning services funded under this subsection; and reimburse the Corporation those funds provided under this section, if the person succeeds in project implementation. The Corporation may administer and manage special projects and programs, including programs of financial and advisory support that 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, microenterprise households, and other small business activities. The Corporation may establish and operate enterprise funds in accordance with this subsection. The provisions of section 201 of the Support for East European Democracy
(SEED)Act of 1989 ( 22 U.S.C. 5421 ) (other than the provisions of subsections (a), (b), (c), (d)(1), (d)(3), (e), (f), and
(j)of that section), shall be deemed to apply with respect to any enterprise fund established by the Corporation under this subsection and to funds made available to any such enterprise fund in the same manner and to the same extent as such provisions apply with respect to enterprise funds established pursuant to such section 201 or to funds made available to enterprise funds established under that section. The Corporation, subject to the approval of the Board, may designate private, nonprofit organizations as eligible to receive support under this subsection for the following purposes: To promote development of economic freedom and private sectors, including small- and medium-sized businesses and joint ventures with the United States and host country participants. To facilitate access to the credit to small- and medium-sized businesses with sound business plans in countries where there is limited means of accessing credit on market terms. To promote policies and practices conducive to economic freedom and private sector development. To attract foreign direct investment capital to further promote private sector development and economic freedom. To complement the work of the United States Agency for International Development and other donors to improve the overall business-enabling environment, financing the creation and expansion of the private business sector. To make financially sustainable investments designed to generate measurable social benefits and build technical capacity in addition to financial returns. Funds made available to an enterprise fund shall be expended at the minimum rate necessary to make timely payments for projects and activities carried out under this subsection. Not more than 3 percent of the funds made available to an enterprise fund may be obligated or expended for the administrative expenses of the enterprise fund. Each enterprise fund established under this subsection shall be governed by a Board of Directors comprised of private citizens of the United States or the host country, who— shall be appointed by the President after consultation with the chairmen and ranking members of the appropriate congressional committees; and have pursued careers in international business and have demonstrated expertise in international and emerging market investment activities. The majority of the members of the Board of Directors shall be United States citizens. Not later than one year after the date of the establishment of an enterprise fund under this subsection, and annually thereafter until the enterprise fund terminates in accordance with paragraph (10), the Board of Directors of the enterprise fund shall— submit to the appropriate congressional committees a report— detailing the administrative expenses of the enterprise fund during the year preceding the submission of the report; describing the operations, activities, financial condition, and accomplishments of the enterprise fund during that year; and describing the results of the audit conducted under paragraph
(8)during that year; and publish, on a publicly available internet website of the enterprise fund, each report required by subparagraph (A). The Inspector General of the Corporation shall conduct periodic audits of the activities of each enterprise fund established under this subsection. In conducting an audit under clause (i), the Inspector General shall assess whether the activities of the enterprise fund— support the purposes described in paragraph (3); result in profitable private sector investing; and generate measurable social benefits. The Corporation shall ensure that each enterprise fund receiving support under this subsection— keeps separate accounts with respect to such support; and maintains such records as may be reasonably necessary to facilitate effective audits under this paragraph. Any funds resulting from any liquidation, dissolution, or winding up of an enterprise fund, in whole or in part, shall be returned to the Treasury of the United States. The authority of an enterprise fund to provide support under this subsection shall terminate on the earlier of— the date that is 7 years after the date of the first expenditure of amounts from the enterprise fund; or the date on which the enterprise fund is liquidated. The Corporation should consider ways to provide technical and other support to facilitate the development of diaspora bonds and other financing mechanisms that consolidate and leverage remittances for development outcomes. The Corporation shall have, in addition to other authorities provided under this section, such authorities as are provided for under the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2651a et seq.) and the Foreign Assistance Act of 1961 ( 22 U.S.C. 2151 et seq.) and delegated by the President to the Overseas Private Investment Corporation or an element of the United States Agency for International Development specified in section 603(a)(2) as of the day before the date of the enactment of this Act.
Connectionstraces to 4
Citation graph
cites case law
Sec. 201
Authorities relating to provision of support
Cites 4Cited by 0 across 0 sources