69–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–819 

NO EX-IM ASSISTANCE FOR TERRORISM ACT 

NOVEMBER 14, 2016.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

together with 

MINORITY VIEWS 

[To accompany H.R. 5715] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 5715) to prohibit the Export-Import Bank of the United 

States from providing financing that would benefit Iran, having 

considered the same, report favorably thereon with amendments 

and recommend that the bill as amended do pass. 

The amendments (stated in terms of page and line numbers that 

have been updated to reflect the page and line numbers of the introduced bill) are as follows: 

Page 2, line 12, insert ‘‘, or a foreign subsidiary of such an entity’’ 

before the period. 

Page 2, beginning on line 24, strike ‘‘re-exported’’ and insert 

‘‘sold’’. 

Page 3, line 2, insert ‘‘, or a subsidiary or controlling parent of 

such a non-United States entity’’ before the period. 

Page 3, line 7, strike ‘‘first sought’’ and insert ‘‘approved’’. 

Page 3, line 9, strike ‘‘export or re-export’’ and insert ‘‘export, 

sale, or lease’’. 

Page 3, line 10, strike ‘‘Iran’’ and insert ‘‘an entity referred to in 

subparagraph (A)’’. 


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PURPOSE AND SUMMARY

Introduced by Representative Roskam on July 11, 2016, H.R. 

5715 would prohibit the Export-Import Bank of the United States 

from financing transactions sought by the government of Iran, an 

Iranian entity, or a foreign subsidiary of such an entity. The legislation would also prevent indirect assistance to Iran by prohibiting 

financing for entities that draw on Bank support in order to carry 

out business with the country. Non-U.S. entities which, in the five 

years prior to enactment of the bill, had leased or sold aircraft to 

Iran in contravention of U.S. law would be ineligible for any Export-Import Bank assistance. Should the Bank discover that a financed transaction has facilitated the sale or lease of aircraft to 

Iran, this bill would require the Bank to cease financing and seek 

immediate repayment. 

BACKGROUND AND NEED FOR LEGISLATION

Under the Joint Comprehensive Plan of Action (JCPOA), the 

Treasury Department’s Office of Foreign Assets Control (OFAC) 

may issue licenses permitting the export of U.S.-manufactured passenger aircraft to Iran. OFAC also has authority to license sales of 

foreign-manufactured planes with 10 percent or higher U.S. content. 

In the wake of the JCPOA, Iran’s flagship state-owned carrier, 

Iran Air, announced tentative agreements with Boeing and Airbus 

for the purchase or lease of more than 200 commercial planes. Iran 

Air had been sanctioned in 2011 for using its passenger fleet to 

transport rockets, missiles, and other military cargo on behalf of 

the Islamic Revolutionary Guard Corps (IRGC). These sanctions 

were lifted after the JCPOA was in force, despite concerns that the 

carrier’s support for the IRGC continued. According to the Department of State, Iran itself remains ‘‘the world’s foremost state sponsor of terrorism.’’ 

The Export-Import Bank provides significant assistance for aircraft sales to foreign markets. In fiscal year 2015, for instance, aircraft accounted for 47 percent of the Bank’s authorizations, up from 

40 percent in the previous fiscal year. 

Under provisions in appropriations acts, the Bank has not been 

permitted to ‘‘finance directly’’ the government of Iran. As Eric 

Lorber, Senior Associate with the Financial Integrity Network, argued in testimony before the Committee, this prohibition reflects 

clear ethical and national security concerns: 

Beyond not encouraging firms to do business in Iran, the 

United States should not be in the business of providing 

taxpayer dollars to subsidize contracts with Iran. As discussed, Iran continues to support terrorism and other illicit activities, and the real possibility exists that the regime will use these aircraft for nefarious purposes. 

H.R. 5715 makes the existing prohibition on Bank financing permanent, extends its scope to include Iranian companies and foreign 

subsidiaries, and supersedes Presidential waiver authority that 

could allow the Bank to provide Iran with assistance. As Mark 

Dubowitz, Executive Director of the Foundation for Defense of Democracies, informed the Committee: 


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The U.S. government should not be using U.S. taxpayer 

funds to guarantee trade with the leading state sponsor of 

terrorism. Congress should emphasize that it is prohibited 

for Ex-Im to provide any guarantees or credit for any trade 

with the government of Iran or any Iranian entity. 

Additionally, this legislation encompasses indirect financing for 

Iran, as Export-Import Bank support, particularly in aircraft transactions, is frequently completed through loan guarantees and sales 

to leasing companies, not direct support for end-user airlines. H.R. 

5715 also bars assistance for any non-U.S. entity that, in the five 

years preceding enactment, has illegally sold or leased aircraft to 

Iran. Prior to the JCPOA, for example, blacklisted Iranian companies were able to purchase more than 20 Boeing 737s and Airbus 

300s via third-party airlines. This bill would dissuade companies 

from engaging in such transactions by rendering them ineligible for 

Bank financing. 

HEARINGS

The Subcommittee on Monetary Policy and Trade held a held a 

hearing titled ‘‘The Implications of U.S. Aircraft Sales to Iran’’ on 

July 7, 2016, which examined matters relating to H.R. 5715. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

July 13, 2016 to consider H.R. 5715. An amendment offered by 

Rep. Sherman, as modified by unanimous consent, was adopted by 

voice vote. An amendment offered by Rep. Heck was ruled nongermane. The motion to report the bill as amended to the House 

with a favorable recommendation was agreed to by a recorded vote 

of 32 yeas to 21 nays (Record vote no. FC–122), a quorum being 

present. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. A motion to table 

the appeal of the Chair’s ruling that Rep. Heck’s amendment was 

not germane was agreed to by a recorded vote of 22 yeas to 11 nays 

(FC–121). The sole additional recorded vote was on a motion by 

Chairman Hensarling to report the bill favorably to the House as 

amended. The motion was agreed to by a recorded vote of 32 yeas 

to 21 nays (Record vote no. FC–122), a quorum being present. 


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COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee states that H.R. 5715 will protect taxpayer resources from being used to subsidize financing that 

benefits Iran. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, August 31, 2016. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5715, the No Ex-Im Assistance for Terrorism Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sunita D’Monte. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 5715—No Ex-Im Assistance for Terrorism Act 

H.R. 5715 would prohibit the Export-Import Bank (Ex-Im) from 

providing any export financing that would benefit the Government 

of Iran or Iranian entities. Under current law, Ex-Im is barred 

from doing business in Iran and it currently has no outstanding fiVerDate Sep 11 2014 22:22 Nov 21, 2016 Jkt 069006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR819.XXX HR819

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nancing related to that country. On that basis, CBO estimates that 

implementing the bill would not affect lending by Ex-Im and would 

have no effect on the federal budget. 

Pay-as-you-go procedures do not apply because enacting H.R. 

5715 would not affect direct spending or revenues. CBO estimates 

that enacting H.R. 5715 would not increase net direct spending or 

on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. 

HR. 5715 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

not affect the budgets of state, local, or tribal governments. 

The CBO staff contact for this estimate is Sunita D’Monte. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 5715 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to section 3(g) of H. Res. 5, 114th Cong. (2015), the 

Committee states that no provision of H.R. 5715 establishes or reauthorizes a program of the Federal Government known to be duplicative of another Federal program, a program that was included 

in any report from the Government Accountability Office to Congress pursuant to section 21 of Public Law 111–139, or a program 

related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, 114th Cong. (2015), the 

Committee estimates that H.R. 5715 contains no directed rule making. 


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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This Section cites H.R. 5715 as the ‘‘No Ex-Im Assistance for Terrorism Act’’ 

Section 2. Prohibition on Export-Import Bank financing that would 

benefit Iran 

This Section prohibits the Bank from providing direct financing 

to the government of Iran or an Iranian company. Should the Iranian government or an Iranian company be involved in a transaction with a third party, this Section prohibits Bank financing to 

the third party in connection with that transaction. In addition, a 

non-U.S. entity that has leased or sold aircraft to Iran in contravention of U.S. law in the five-year period preceding enactment 

of the bill would be barred from Bank assistance; and the Bank 

would be required to cease financing for a transaction upon finding 

that the assistance has facilitated the export or re-export of aircraft 

to Iran. The Bank would then seek immediate repayment of such 

financing. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (new matter is printed in italics 

and existing law in which no change is proposed is shown in 

roman): 

EXPORT-IMPORT BANK ACT OF 1945 

* * * * * * * 

SEC. 2. (a)(1) There is hereby created a corporation with the 

name Export-Import Bank of the United States which shall be an 

agency of the United States of America. The objects and purposes 

of the Bank shall be to aid in financing and to facilitate exports of 

goods and services, imports, and the exchange of commodities and 

services between the United States or any of its territories or insular possessions and any foreign country or the agencies or nationals 

of any such country, and in so doing to contribute to the employment of United States workers. The Bank’s objective in authorizing 

loans, guarantees, insurance, and credits shall be to contribute to 

maintaining or increasing employment of United States workers. In 

connection with and in furtherance of its objects and purposes, the 

Bank is authorized and empowered to do a general banking business except that of circulation; to receive deposits; to purchase, discount, rediscount, sell, and negotiate, with or without its endorsement or guaranty, and to guarantee notes, drafts, checks, bills of 

exchange, acceptances, including bankers’ acceptances, cable transfers, and other evidences of indebtedness; to guarantee, insure, coinsure, reinsure against political and credit risks of loss; to purchase, sell, and guarantee securities but not to purchase with its 

funds any stock in any other corporation except that it may acquire 

any such stock, through the enforcement of any lien or pledge or 

otherwise to satisfy a previously contracted indebtedness to it; to 

accept bills and drafts drawn upon it; to issue letters of credit; to 


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purchase and sell coin, bullion, and exchange; to borrow and to 

lend money; to perform any act herein authorized in participation 

with any other person, including any individual, partnership, corporation, or association; to adopt, alter, and use a corporate seal, 

which shall be judicially noticed; to sue and to be sued, to complain 

and to defend in any court of competent jurisdiction; to represent 

itself or to contract for representation in all legal and arbitral proceedings outside the United States; and the enumeration of the 

foregoing powers shall not be deemed to exclude other powers necessary to the achievement of the objects and purposes of the Bank. 

The Bank shall be entitled to the use of the United States mails 

in the same manner and upon the same conditions as the executive 

departments of the Government. The Bank is authorized to publish 

or arrange for the publications of any documents, reports, contracts, or other material necessary in connection with or in furtherance of its objects and purposes without regard to the provisions 

of section 501 of title 44, United States Code, whenever the Bank 

determines that publication in accordance with the provisions of 

such section would not be practicable. Subject to regulations which 

the Bank shall issue pursuant to section 553 of title 5, United 

States Code, the Bank may impose and collect reasonable fees to 

cover the costs of conferences and seminars sponsored by, and publications provided by, the Bank, and may accept reimbursement for 

travel and subsistence expenses incurred by a director, officer, or 

employee of the Bank, in accordance with subchapter I of chapter 

57 of title 5, United States Code. Amounts received under the preceding sentence shall be credited to the fund which initially paid 

for such activities and shall be offset against the expenses of the 

Bank for such activities. The Bank is hereby authorized to use all 

of its assets and all moneys which have been or may thereafter be 

allocated to or borrowed by it in the exercise of its functions. Net 

earnings of the Bank after reasonable provision for possible losses 

shall be used for payment of dividends on capital stock. Any such 

dividends shall be deposited into the Treasury as miscellaneous receipts. 

(2) In order for the Bank to be competitive in all of its financing 

programs with countries whose exports compete with United States 

exports, the Bank shall establish a program that— 

(A) provides medium-term financing where necessary to be 

fully competitive— 

(i) at rates of interest to the customer which are equal 

to rates established in international agreements; 

(ii) in amounts up to 85 percent of the total cost of the 

exports involved; and 

(iii) with principal amounts of not more than 

$25,000,000; and 

(B) enables the Bank to cooperate fully with the Secretary of 

Commerce and the Administrator of the Small Business Administration to develop a program for purposes of disseminating information (using existing private institutions) to small 

business concerns regarding the medium-term financing provided under this paragraph. 

(3) ENHANCEMENT OF MEDIUM-TERM PROGRAM.—To enhance the 

medium-term financing program established pursuant to paragraph (2), the Bank shall establish measures to— 


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(A) improve the competitiveness of the Bank’s medium-term 

financing and ensure that its medium-term financing is fully 

competitive with that of other major official export credit agencies; 

(B) ease the administrative burdens and procedural and documentary requirements imposed on the users of medium-term 

financing; 

(C) attract the widest possible participation of private financial institutions and other sources of private capital in the medium-term financing of United States exports; and 

(D) render the Bank’s medium-term financing as supportive 

of United States exports as is its Direct Loan Program. 

(b)(1)(A) It is the policy of the United States to foster expansion 

of exports of manufactured goods, agricultural products, and other 

goods and services, thereby contributing to the promotion and 

maintenance of high levels of employment and real income, a commitment to reinvestment and job creation, and the increased development of the productive resources of the United States. To meet 

this objective in all its programs, the Export-Import Bank is directed, in the exercise of its functions, to provide guarantees, insurance, and extensions of credit at rates and on terms and other conditions which are fully competitive with the Government-supported 

rates and terms and other conditions available for the financing of 

exports of goods and services from the principal countries whose 

exporters compete with United States exporters, including countries the governments of which are not members of the Arrangement (as defined in section 10(h)(3)). The Bank shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in Government-supported export financing and shall, in cooperation with other appropriate 

United States Government agencies, seek to reach international 

agreements to reduce government subsidized export financing. 

(B) It is further the policy of the United States that loans made 

by the Bank in all its programs shall bear interest at rates determined by the Board of Directors, consistent with the Bank’s mandate to support United States exports at rates and on terms and 

conditions which are fully competitive with exports of other countries, and consistent with international agreements. For the purpose of the preceding sentence, rates and terms and conditions 

need not be identical in all respects to those offered by foreign 

countries, but should be established so that the effect of such rates, 

terms, and conditions for all the Bank’s programs, including those 

for small businesses and for medium-term financing, will be to neutralize the effect of such foreign credit on international sales competition. The Bank shall consider its average cost of money as one 

factor in its determination of interest rates, where such consideration does not impair the Bank’s primary function of expanding 

United States exports through fully competitive financing. The 

Bank may not impose a credit application fee unless (i) the fee is 

competitive with the average fee charged by the Bank’s primary 

foreign competitors, and (ii) the borrower or the exporter is given 

the option of paying the fee at the outset of the loan or over the 

life of the loan and the present value of the fee determined under 

either such option is the same amount. It is also the policy of the 

United States that the Bank in the exercise of its functions should 


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supplement and encourage, and not compete with, private capital; 

that the Bank, in determining whether to provide support for a 

transaction under the loan, guarantee, or insurance program, or 

any combination thereof, shall consider the need to involve private 

capital in support of United States exports as well as the cost of 

the transaction as calculated in accordance with the requirements 

of the Federal Credit Reform Act of 1990; that the Bank shall accord equal opportunity to export agents and managers, independent export firms, export trading companies, and small commercial banks in the formulation and implementation of its programs; that the Bank should give emphasis to assisting new and 

small business entrants in the agricultural export market, and 

shall, in cooperation with other relevant Government agencies, including the Commodity Credit Corporation, develop a program of 

education to increase awareness of export opportunities among 

small agribusinesses and cooperatives, that loans, so far as possible 

consistent with the carrying out of the purposes of subsection (a) 

of this section, shall generally be for specific purposes, and, in the 

judgment of the Board of Directors, offer reasonable assurance of 

repayment; and that in authorizing any loan or guarantee, the 

Board of Directors shall take into account any serious adverse effect of such loan or guarantee on the competitive position of United 

States industry, the availability of materials which are in short 

supply in the United States, and employment in the United States, 

and shall give particular emphasis to the objective of strengthening 

the competitive position of United States exporters and thereby of 

expanding total United States exports. Only in cases where the 

President, after consultation with the Committee on Financial 

Services of the House of Representatives and the Committee on 

Banking, Housing, and Urban Affairs of the Senate, determines 

that such action would be in the national interest where such action would clearly and importantly advance United States policy in 

such areas as international terrorism (including, when relevant, a 

foreign nation’s lack of cooperation in efforts to eradicate terrorism), nuclear proliferation, the enforcement of the Foreign Corrupt Practices Act of 1977, the Arms Export Control Act, the International Emergency Economic Powers Act, or the Export Administration Act of 1979, environmental protection and human rights 

(such as are provided in the Universal Declaration of Human 

Rights adopted by the United Nations General Assembly on December 10, 1948) (including child labor), should the Export-Import 

Bank deny applications for credit for nonfinancial or noncommercial considerations. Each such determination shall be delivered in 

writing to the President of the Bank, shall state that the determination is made pursuant to this section, and shall specify the applications or categories of applications for credit which should be 

denied by the Bank in furtherance of the national interest. 

(C) Consistent with the policy of section 501 of the Nuclear NonProliferation Act of 1978 and section 119 of the Foreign Assistance 

Act of 1961, the Board of Directors shall name an officer of the 

Bank whose duties shall include advising the President of the Bank 

on ways or promoting the export of goods and services to be used 

in the development, production, and distribution of nonnuclear renewable energy resources, disseminating information concerning 

export opportunities and the availability of Bank support for such 


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activities, and acting as a liaison between the Bank and the Department of Commerce and other appropriate departments and 

agencies. 

(D) It is further the policy of the United States to foster the delivery of United States services in international commerce. In exercising its powers and functions, the Bank shall give full and equal 

consideration to making loans and providing guarantees for the export of services (independently, or in conjunction with the export 

of manufactured goods, equipment, hardware or other capital 

goods) consistent with the Bank’s policy to neutralize foreign subsidized credit competition and to supplement the private capital 

market. 

(E)(i)(I) It is further the policy of the United States to encourage 

the participation of small business in international commerce. 

(II) In exercising its authority, the Bank shall develop a program 

which gives fair consideration to making loans and providing guarantees for the export of goods and services by small businesses. 

(ii) It is further the policy of the United States that the Bank 

shall give due recognition to the policy stated in section 2(a) of the 

Small Business Act that ‘‘the Government should aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns in order to preserve free competitive enterprise’’. 

(iii) In furtherance of this policy, the Board of Directors shall 

designate an officer of the Bank who— 

(I) shall be responsible to the President of the Bank for all 

matters concerning or affecting small business concerns; and 

(II) among other duties, shall be responsible for advising 

small business concerns of the opportunities for small business 

concerns in the functions of the Bank, with particular emphasis on conducting outreach and increasing loans to socially and 

economically disadvantaged small business concerns (as defined in section 8(a)(4) of the Small Business Act), small business concerns (as defined in section 3(a) of the Small Business 

Act) owned by women, and small business concerns (as defined 

in section 3(a) of the Small Business Act) employing fewer than 

100 employees, and for maintaining liaison with the Small 

Business Administration and other departments and agencies 

in matters affecting small business concerns.) 

(iv) The Director appointed to represent the interests of small 

business under section 3(c) of this Act shall ensure that the Bank 

carries out its responsibilities under clauses (ii) and (iii) of this 

subparagraph and that the Bank’s financial and other resources 

are, to the maximum extent possible, appropriately used for small 

business needs. 

(v) To assure that the purposes of clauses (i) and (ii) of this subparagraph are carried out, the Bank shall make available, from the 

aggregate loan, guarantee, and insurance authority available to it, 

an amount to finance exports directly by small business concerns 

(as defined under section 3 of the Small Business Act) which shall 

be not less than 25 percent of such authority for each fiscal year. 

From the amount made available under the preceding sentence, it 

shall be a goal of the Bank to increase the amount made available 

to finance exports directly by small business concerns referred to 

in section 3(i)(1). 


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(vi) The Bank shall utilize the amount set-aside pursuant to 

clause (v) of this subparagraph to offer financing for small business 

exports on terms which are fully competitive with regard to interest rates and with regard to the portion of financing which may be 

provided, guaranteed, or insured. Financing under this clause (vi) 

shall be available without regard to whether financing for the particular transaction was disapproved by any other Federal agency. 

(vii)(I) The Bank shall utilize a part of the amount set aside pursuant to clause (v) to provide lines of credit or guarantees to consortia of small or medium size banks, export trading companies, 

State export finance agencies, export financing cooperatives, small 

business investment companies (as defined in section 103 of the 

Small Business Investment Act of 1958), or other financing institutions or entities in order to finance small business exports. 

(II) Financing under this clause (vii) shall be made available only 

where the consortia or the participating institutions agree to undertake processing, servicing, and credit evaluation functions in 

connection with such financing. 

(III) To the maximum extent practicable, the Bank shall delegate 

to the consortia or other financing institutions or entities the authority to approve financing under this clause (vii). 

(IV) In the administration of the program under this clause (vii), 

the Bank shall provide appropriate technical assistance to participating consortia and may require such consortia periodically to furnish information to the Bank regarding the number and amount of 

loans made and the creditworthiness of the borrowers. 

(viii) In order to assure that the policy stated in clause (i) is carried out, the Bank shall promote small business exports and its 

small business export financing programs in cooperation with the 

Secretary of Commerce, the Office of International Trade of the 

Small Business Administration, and the private sector, particularly 

small business organizations, State agencies, chambers of commerce, banking organizations, export management companies, export trading companies and private industry. 

(ix) The Bank shall provide, through creditworthy trade associations, export trading companies, State export finance companies, 

export finance cooperatives, and other multiple-exporter organizations, medium-term risk protection coverage for the members and 

clients of such organizations. Such coverage shall be made available to each such organization under a single risk protection policy 

covering its members or clients. Nothing in this provision shall be 

interpreted as limiting the Bank’s authority to deny support for 

specific transactions or to disapprove a request by such an organization to participate in such coverage. 

(x) The Bank shall implement technology improvements that are 

designed to improve small business outreach, including allowing 

customers to use the Internet to apply for the Bank’s small business programs. 

(F) Consistent with international agreements, the Bank shall 

urge the Foreign Credit Insurance Association to provide coverage 

against 100 per centum of any loss with respect to exports having 

a value of less than $100,000. 

(G) Participation in or access to long-, medium-, and short-term 

financing, guarantees, and insurance provided by the Bank shall 


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not be denied solely because the entity seeking participation or access is not a bank or is not a United States person. 

(H)(i) It is further the policy of the United States to foster the 

development of democratic institutions and market economies in 

countries seeking such development, and to assist the export of 

high technology items to such countries. 

(ii) In exercising its authority, the Bank shall develop a program 

for providing guarantees and insurance with respect to the export 

of high technology items to countries making the transition to market based economies, including eligible East European countries 

(within the meaning of section 3 of the Support For East European 

Democracy (SEED) Act of 1989). 

(iii) As part of the ongoing marketing and outreach efforts of the 

Bank, the Bank shall, to the maximum extent practicable, inform 

high technology companies, particularly small business concerns 

(as such term is defined in section 3 of the Small Business Act), 

about the programs of the Bank for United States companies interested in exporting high technology goods to countries making the 

transition to market based economies, including any eligible East 

European country (within the meaning of section 3 of the Support 

For East European Democracy (SEED) Act of 1989). 

(iv) In carrying out clause (iii), the Bank shall— 

(I) work with other agencies involved in export promotion 

and finance; and 

(II) invite State and local governments, trade centers, commercial banks, and other appropriate public and private organizations to serve as intermediaries for the outreach efforts. 

(I) The President of the Bank shall undertake efforts to enhance 

the Bank’s capacity to provide information about the Bank’s programs to small and rural companies which have not previously participated in the Bank’s programs. Not later than 1 year after the 

date of enactment of this subparagraph, the President of the Bank 

shall submit to Congress a report on the activities undertaken pursuant to this subparagraph. 

(J) The Bank shall implement an electronic system designed to 

track all pending transactions of the Bank. 

(K) The Bank shall promote the export of goods and services related to renewable energy sources. 

(L) The Bank shall require an applicant for assistance from the 

Bank to disclose whether the applicant has been found by a court 

of the United States to have violated the Foreign Corrupt Practices 

Act of 1977, the Arms Export Control Act, the International Emergency Economic Powers Act, or the Export Administration Act of 

1979 within the preceding 12 months, and shall maintain, in cooperation with the Department of Justice, for not less than 3 years 

a record of such applicants so found to have violated any such Act. 

(M) Not later than 2 years after the date of the enactment of the 

Export-Import Bank Reform and Reauthorization Act of 2015, the 

Bank shall implement policies— 

(i) to accept electronic documents with respect to transactions whenever possible, including copies of bills of lading, 

certifications, and compliance documents, in such manner so as 

not to undermine any potential civil or criminal enforcement 

related to the transactions; and 

(ii) to accept electronic payments in all of its programs. 


SSpencer on DSK4SPTVN1PROD with REPORTS
15 

(2) PROHIBITION ON AID TO MARXIST-LENINIST COUNTRIES.— 

(A) IN GENERAL.—The Bank in the exercise of its functions 

shall not guarantee, insure, extend credit, or participate in the 

extension of credit— 

(i) in connection with the purchase or lease of any product by a Marxist-Leninist country, or agency or national 

thereof; or 

(ii) in connection with the purchase or lease of any product by any other foreign country, or agency or national 

thereof, if the product to be purchased or leased by such 

other country, agency, or national is, to the knowledge of 

the Bank, principally for use in, or sale or lease to, a 

Marxist-Leninist country. 

(B) MARXIST-LENINIST COUNTRY DEFINED.— 

(i) IN GENERAL.—For purposes of this paragraph, the 

term ‘‘Marxist-Leninist country’’ means any country that 

maintains a centrally planned economy based on the principles of Marxism-Leninism, or is economically and militarily dependent on any other such country. 

(ii) SPECIFIC COUNTRIES DEEMED TO BE MARXIST-LENINIST.—Unless otherwise determined by the President in 

accordance with subparagraph (C), the following countries 

are deemed to be Marxist-Leninist countries for purposes 

of this paragraph: 

(I) Democratic People’s Republic of Korea. 

(II) Democratic Republic of Afghanistan. 

(III) People’s Republic of China. 

(IV) Republic of Cuba. 

(V) Socialist Republic of Vietnam. 

(VI) Tibet. 

(C) PRESIDENTIAL DETERMINATION THAT A COUNTRY HAS

CEASED TO BE MARXIST-LENINIST.—If the President determines 

that any country on the list contained in subparagraph (B)(ii) 

has ceased to be a Marxist-Leninist country (within the definition of such term in subparagraph (B)(i)), such country shall 

not be treated as a Marxist-Leninist country for purposes of 

this paragraph after the date of such determination, unless the 

President subsequently determines that such country has 

again become a Marxist-Leninist country. 

(D) PRESIDENTIAL DETERMINATION RELATING TO FINANCING IN

THE NATIONAL INTEREST.— 

(i) IN GENERAL.—Subparagraph (A) shall not apply to 

guarantees, insurance, or extensions of credit by the Bank 

to a country, agency, or national described in clause (i) or 

(ii) of subparagraph (A) (in connection with transactions 

described in such clauses) if the President determines that 

such guarantees, insurance, or extensions of credit are in 

the national interest. 

(ii) SEPARATE DETERMINATION FOR CERTAIN TRANSACTIONS.—The President shall make a separate determination under clause (i) for each transaction described in 

clause (i) or (ii) of subparagraph (A) for which the Bank 

would extend a loan in an amount equal to or greater than 

$50,000,000. 


SSpencer on DSK4SPTVN1PROD with REPORTS
16 

(iii) REPORT OF CLAUSE (i) DETERMINATIONS TO CON- GRESS.—Any determination by the President under clause 

(i) shall be reported to the Congress not later than the earlier of— 

(I) the end of the 30-day period beginning on the 

date of such determination; or 

(II) the date the Bank takes final action with respect 

to the first transaction involving the country, agency, 

or national for which such determination is made after 

the date of the enactment of the Export-Import Bank 

Amendments of 1974, unless a report of a determination with respect to such date of enactment. 

(iv) REPORT OF CLAUSE (ii) DETERMINATIONS TO CONGRESS.—Any determination by the President under clause 

(ii) shall be reported to the Congress not later than the 

earlier of— 

(I) the end of the 30-day period beginning on the 

date of such determination; or 

(II) the date the Bank takes final action with respect 

to the transaction for which such determination is 

made. 

(3) Except as provided by the fourth sentence of this paragraph, 

no loan or financial guarantee or general guarantee or insurance 

facility or combination thereof (i) in an amount which equals or exceeds $100,000,000, or (ii) for the export of technology, fuel, equipment, materials, or goods or services to be used in the construction, 

alteration, operation, or maintenance of nuclear power, enrichment, 

reprocessing, research, or heavy water production facilities, shall 

be finally approved by the Board of Directors of the Bank, unless 

in each case the Bank has submitted to the Congress with respect 

to such loan, financial guarantee, or combination thereof, a detailed 

statement describing and explaining the transaction, at least 25 

days of continuous session of the Congress prior to the date of final 

approval. For the purpose of the preceding sentence, continuity of 

a session of the Congress shall be considered as broken only by an 

adjournment of the Congress sine die, and the days on which either 

House is not in session because of an adjournment of more than 3 

days to a day certain shall be excluded in the computation of the 

25 day period referred to in such sentence. Such statement shall 

contain— 

(A) in the case of a loan or financial guarantee— 

(i) a brief description of the purposes of the transaction; 

(ii) the identity of the party or parties requesting the 

loan or financial guarantee; 

(iii) the nature of the goods or services to be exported 

and the use for which the goods or services are to be exported; and 

(iv) in the case of a general guarantee or insurance facility— 

(I) a description of the nature and purpose of the facility; 

(II) the total amount of guarantees or insurance; 

and 

(III) the reasons for the facility and its methods of 

operation; and 


SSpencer on DSK4SPTVN1PROD with REPORTS
17 

(B) a full explanation of the reasons for Bank financing of 

the transaction, the amount of the loan to be provided by the 

Bank, the approximate rate and repayment terms at which 

such loan will be made available and the approximate amount 

of the financial guarantee. 

If the Bank submits a statement to the Congress under this paragraph and either House of Congress is in an adjournment for a period which continues for at least ten days after the date of submission of the statement, then any such loan or guarantee or combination thereof may, subject to the second sentence of this paragraph, 

be finally approved by the Board of Directors upon the termination 

of the twenty-five-day period referred to in the first sentence of this 

paragraph or upon the termination of a thirty-five-calendar-day period (which commences upon the date of submission of the statement), whichever occurs sooner. 

(4)(A) If the Secretary of State determines that— 

(i) any country that has agreed to International Atomic Energy Agency nuclear safeguards materially violates, abrogates, 

or terminates, after October 26, 1977, such safeguards; 

(ii) any country that has entered into an agreement for cooperation concerning the civil use of nuclear energy with the 

United States materially violates, abrogates, or terminates, 

after October 26, 1977, any guarantee or other undertaking to 

the United States made in such agreement; 

(iii) any country that is not a nuclear-weapon state detonates, after October 26, 1977, a nuclear explosive device; 

(iv) any country willfully aids or abets, after June 29, 1994, 

any non-nuclear-weapon state to acquire any such nuclear explosive device or to acquire unsafeguarded special nuclear material; or 

(v) any person knowingly aids or abets, after the date of enactment of the National Defense Authorization Act for Fiscal 

Year 1997, any non-nuclear-weapon state to acquire any such 

nuclear explosive device or to acquire unsafeguarded special 

nuclear material, 

then the Secretary of State shall submit a report to the appropriate 

committees of the Congress and to the Board of Directors of the 

Bank stating such determination and identifying each country or 

person the Secretary determines has so acted. 

(B)(i) If the Secretary of State makes a determination under subparagraph (A)(v) with respect to a foreign person, the Congress 

urges the Secretary to initiate consultations immediately with the 

government with primary jurisdiction over that person with respect 

to the imposition of the prohibition contained in subparagraph (C). 

(ii) In order that consultations with that government may be pursued, the Board of Directors of the Bank shall delay imposition of 

the prohibition contained in subparagraph (C) for up to 90 days if 

the Secretary of State requests the Board to make such delay. Following these consultations, the prohibition contained in subparagraph (C) shall apply immediately unless the Secretary determines 

and certifies to the Congress that that government has taken specific and effective actions, including appropriate penalties, to terminate the involvement of the foreign person in the activities described in subparagraph (A)(v). The Board of Directors of the Bank 

shall delay the imposition of the prohibition contained in subparaVerDate Sep 11 2014 22:22 Nov 21, 2016 Jkt 069006 PO 00000 Frm 00017 Fmt 6659 Sfmt 6602 E:\HR\OC\HR819.XXX HR819

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graph (C) for up to an additional 90 days if the Secretary requests 

the Board to make such additional delay and if the Secretary determines and certifies to the Congress that that government is in the 

process of taking the actions described in the preceding sentence. 

(iii) Not later than 90 days after making a determination under 

subparagraph (A)(v), the Secretary of State shall submit to the appropriate committees of the Congress a report on the status of consultations with the appropriate government under this subparagraph, and the basis for any determination under clause (ii) that 

such government has taken specific corrective actions. 

(C) The Board of Directors of the Bank shall not give approval 

to guarantee, insure, or extend credit, or participate in the extension of credit in support of United States exports to any country, 

or to or by any person, identified in the report described in subparagraph (A). 

(D) The prohibition in subparagraph (C) shall not apply to approvals to guarantee, insure, or extend credit, or participate in the 

extension of credit in support of United States exports to a country 

with respect to which a determination is made under clause (i), (ii), 

(iii), or (iv) of subparagraph (A) regarding any specific event described in such clause if the President determines and certifies in 

writing to the Congress not less than 45 days prior to the date of 

the first approval following the determination that it is in the national interest for the Bank to give such approvals. 

(E) The prohibition in subparagraph (C) shall not apply to approvals to guarantee, insure, or extend credit, or participate in the 

extension of credit in support of United States exports to or by a 

person with respect to whom a determination is made under clause 

(v) of subparagraph (A) regarding any specific event described in 

such clause if— 

(i) the Secretary of State determines and certifies to the Congress that the appropriate government has taken the corrective 

actions described in subparagraph (B)(ii); or 

(ii) the President determines and certifies in writing to the 

Congress not less than 45 days prior to the date of the first approval following the determination that— 

(I) reliable information indicates that— 

(aa) such person has ceased to aid or abet any nonnuclear-weapon state to acquire any nuclear explosive 

device or to acquire unsafeguarded special nuclear material; and 

(bb) steps have been taken to ensure that the activities described in item (aa) will not resume; or 

(II) the prohibition would have a serious adverse effect 

on vital United States interests. 

(F) For purposes of this paragraph: 

(i) The term ‘‘country’’ has the meaning given to ‘‘foreign 

state’’ in section 1603(a) of title 28, United States Code. 

(ii) The term ‘‘knowingly’’ is used within the meaning of the 

term ‘‘knowing’’ in section 104(h)(3) of the Foreign Corrupt 

Practices Act (15 U.S.C. 78dd–2(h)(3)). 

(iii) The term ‘‘person’’ means a natural person as well as a 

corporation, business association, partnership, society, trust, 

any other nongovernmental entity, organization, or group, and 


SSpencer on DSK4SPTVN1PROD with REPORTS
19 

any governmental entity operating as a business enterprise, 

and any successor of any such entity. 

(iv) The term ‘‘nuclear-weapon state’’ has the meaning given 

the term in Article IX(3) of the Treaty on the Non-Proliferation 

of Nuclear Weapons, signed at Washington, London, and Moscow on July 1, 1968. 

(v) The term ‘‘non-nuclear-weapon state’’ has the meaning 

given the term in section 830(5) of the Nuclear Proliferation 

Prevention Act of 1994 (Public Law 103–236; 108 Stat. 521). 

(vi) The term ‘‘nuclear explosive device’’ has the meaning 

given the term in section 830(4) of the Nuclear Proliferation 

Prevention Act of 1994 (Public Law 103–236; 108 Stat. 521). 

(vii) The term ‘‘unsafeguarded special nuclear material’’ has 

the meaning given the term in section 830(8) of the Nuclear 

Proliferation Prevention Act of 1994. 

(5) The Bank shall not guarantee, insure, or extend credit, or 

participate in the extension of credit in connection with (A) the 

purchase of any product, technical data, or other information by a 

national or agency of any nation which engages in armed conflict 

declared or otherwise, with the Armed Forces of the United States, 

(B) the purchase by any nation (or national or agency thereof) of 

any product, technical data, or other information which is to be 

used principally by or in any such nation described in clause (A), 

or (C) the purchase of any liquid metal fast breeder nuclear reactor 

or any nuclear fuel reprocessing facility. The Bank shall not guarantee, insure, or extend credit, or participate in the extension of 

credit in connection with the purchase of any product, technical 

data, or other information by a national or agency of any nation if 

the President determines that any such transaction would be contrary to the national interest. 

(6)(A) The Bank shall not guarantee, insure, or extend credit, or 

participate in an extension of credit in connection with any credit 

sale of defense articles and defense services to any country. 

(B) Subparagraph (A) shall not apply to any sale of defense articles or services if— 

(i) the Bank is requested to provide a guarantee or insurance 

for the sale; 

(ii) the President determines that the defense articles or 

services are being sold primarily for anti-narcotics purposes; 

(iii) section 490(e) of the Foreign Assistance Act of 1961 does 

not apply with respect to the purchasing country; and 

(iv) the President determines, in accordance with subparagraph (C), that the sale is in the national interest of the 

United States; and 

(v) the Bank determines that, notwithstanding the provision 

of a guarantee or insurance for the sale, not more than 5 percent of the guarantee and insurance authority available to the 

Bank in any fiscal year will be used by the Bank to support 

the sale of defense articles or services. 

(C) In determining whether a sale of defense articles or services 

would be in the national interest of the United States, the President shall take into account whether the sale would— 

(i) be consistent with the anti-narcotics policy of the United 

States; 


SSpencer on DSK4SPTVN1PROD with REPORTS
20 

(ii) involve the end use of a defense article or service in a 

major illicit drug producing or major drug-transit country (as 

defined in section 481(e) of the Foreign Assistance Act of 1961); 

and 

(iii) be made to a country with a democratic form of government. 

(D)(i) The Board shall not give approval to guarantee or insure 

a sale of defense articles or services unless— 

(I) the President determines, in accordance with subparagraph (C), that it is in the national interest of the United 

States for the Bank to provide such guarantee or insurance; 

(II) the President determines, after consultation with the Assistant Secretary of State for Human Rights and Humanitarian Affairs, that the purchasing country has complied with 

all restrictions imposed by the United States on the end use 

of any defense articles or services for which a guarantee or insurance was provided under subparagraph (B), and has not 

used any such defense articles or services to engage in a consistent pattern of gross violations of internationally recognized 

human rights; and 

(III) such determinations have been reported to the Speaker 

and the Committee on Financial Services of the House of Representatives, and to the Committee on Banking, Housing, and 

Urban Affairs and the Committee on Foreign Relations of the 

Senate, not less than 25 days of continuous session of the Congress before the date of such approval. 

(ii) For purposes of clause (i), continuity of a session of the 

Congress shall be considered as broken only by an adjournment of the Congress sine die, and the days on which either 

House is not in session because of an adjournment of more 

than 3 days to a day certain shall be excluded in the computation of the 25–day period referred to in such clause. 

(E) The provision of a guarantee or insurance under subparagraph (B) shall be deemed to be the provision of security assistance 

for purposes of section 502B of the Foreign Assistance Act of 1961 

(relating to governments which engage in a consistent pattern of 

gross violations of internationally recognized human rights). 

(F) To the extent that defense articles or services for which a 

guarantee or insurance is provided under subparagraph (B) are 

used for a purpose other than anti-narcotics purposes, they may be 

used only for those purposes for which defense articles and defense 

services sold under the Arms Export Control Act (relating to the 

foreign military sales program) may be used under section 4 of 

such Act. 

(G) As used in subparagraphs (B), (C), (D), and (F), the term ‘‘defense articles or services’’ means articles, services, and related technical data that are designated as defense articles and defense services pursuant to sections 38 and 47(7) of the Arms Export Control 

Act and listed on the United States Munitions List (part 121 of 

title 22 of the Code of Federal Regulations). 

(H) Once in each calendar quarter, the Bank shall submit a report to the Committee on Banking, Housing, and Urban Affairs of 

the Senate, and the Committee on Financial Services of the House 

of Representatives on all instances in which the Bank, during the 

reporting quarter, guaranteed, insured, or extended credit or parVerDate Sep 11 2014 22:22 Nov 21, 2016 Jkt 069006 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR819.XXX HR819

SSpencer on DSK4SPTVN1PROD with REPORTS
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ticipated in an extension of credit in connection with any credit 

sale of an article, service, or related technical data described in 

subparagraph (G) that the Bank determined would not be put to 

a military use or described in subparagraph (I)(i). Such report shall 

include a description of each of the transactions and the justification for the Bank’s actions. 

(I)(i) Subparagraph (A) shall not apply to a transaction involving 

defense articles or services if— 

(I) the Bank determines that— 

(aa) the defense articles or services are nonlethal; and 

(bb) the primary end use of the defense articles or services will be for civilian purposes; and 

(II) at least 15 calendar days before the date on which the 

Board of Directors of the Bank gives final approval to Bank 

participation in the transaction, the Bank provides notice of 

the transaction to the Committees on Financial Services and 

on Appropriations of the House of Representatives and the 

Committees on Banking, Housing, and Urban Affairs and on 

Appropriations of the Senate. 

(ii) Not more than 10 percent of the loan, guarantee, and insurance authority available to the Bank for a fiscal year may be used 

by the Bank to support the sale of defense articles or services to 

which subparagraph (A) does not apply by reason of clause (i) of 

this subparagraph. 

(iii) Not later than September 1 of each fiscal year, the Comptroller General of the United States, in consultation with the Bank, 

shall submit to the Committees on Financial Services and on Appropriations of the House of Representatives and the Committees 

on Banking, Housing, and Urban Affairs and on Appropriations of 

the Senate a report on the end uses of any defense articles or services described in clause (i) with respect to which the Bank provided 

support during the second preceding fiscal year. 

(7) In no event shall the Bank have outstanding at any time in 

excess of 71⁄2 per centum of the limitation imposed by section 7 of 

this Act for such guarantees, insurance, credits or participation in 

credits with respect to exports of defense articles and services to 

countries which, in the judgment of the Board of Directors of the 

Bank, are less developed. 

(8) The Bank shall supplement but not compete with private capital and the programs of the Commodity Credit Corporation to ensure that adequate financing will be made available to assist the 

export of agricultural commodities, except that, consistent with section 2(b)(1)(A) of this Act, the Bank in assisting any such export 

transactions shall, in cooperation with the export financing instrumentalities of other governments, seek to minimize competition in 

Government-supported export financing, and shall, in cooperation 

with other appropriate United States Government agencies, seek to 

reach international agreements to reduce Government subsidized 

export financing. In order to carry out the purposes of this subsection, the Bank shall consult with the Secretary of Agriculture 

and where the Secretary of Agriculture has recommended against 

Bank financing of the export of a particular agricultural commodity, shall take such recommendation into consideration in determining whether to provide credit or other assistance for any export sale of such commodity, and shall consider the importance of 


SSpencer on DSK4SPTVN1PROD with REPORTS
22 

agricultural commodity exports to the United States export market 

and the Nation’s balance of trade in deciding whether or not to provide assistance under this subsection. 

(9)(A) The Board of Directors of the Bank shall, in consultation 

with the Secretary of Commerce and the Trade Promotion Coordinating Committee, take prompt measures, consistent with the credit standards otherwise required by law, to promote the expansion 

of the Bank’s financial commitments in sub-Saharan Africa under 

the loan, guarantee, and insurance programs of the Bank. 

(B)(i) The Board of Directors shall establish and use an advisory 

committee to advise the Board of Directors on the development and 

implementation of policies and programs designed to support the 

expansion described in subparagraph (A). 

(ii) The advisory committee shall make recommendations to the 

Board of Directors on how the Bank can facilitate greater support 

by United States commercial banks for trade with sub-Saharan Africa. 

(iii) The advisory committee shall terminate on the date on which 

the authority of the Bank expires under section 7. 

(C) The Bank shall include in the annual report to the Congress 

submitted under section 8(a) a separate section that contains a report on the efforts of the Bank to— 

(i) improve its working relationships with the African Development Bank, the African Export-Import Bank, and other institutions in the region that are relevant to the purposes of 

subparagraph (A) of this paragraph; and 

(ii) coordinate closely with the United States Foreign Service 

and Foreign Commercial Service, and with the overall strategy 

of the United States Government for economic engagement 

with Africa pursuant to the African Growth and Opportunity 

Act. 

(D) Consistent with the requirement that the Bank obtain a reasonable assurance of repayment in connection with each transaction the Bank supports, the Bank shall, in consultation with the 

entities described in subparagraph (C), seek to qualify a greater 

number of appropriate African entities for participation in programs of the Bank. 

(10)(A) The Bank shall not, without a specific authorization by 

law, guarantee, insure, or extend credit (or participate in the extension of credit) to— 

(i) assist specific countries with balance of payments financing; or 

(ii) assist (as the primary purpose of any such guarantee, insurance, or credit) any country in the management of its international indebtedness, other than its outstanding obligations to 

the Bank. 

(B) Nothing contained in subparagraph (A) shall preclude guarantees, insurance, or credit the primary purpose of which is to support United States exports. 

(11) PROHIBITION RELATING TO ANGOLA.—The Bank may not 

guarantee, insure, or extend (or participate in the extension of) 

credit in connection with any export of any good (other than food 

or an agricultural commodity) or service to the People’s Republic of 

Angola until the President certifies to the Congress that free and 

fair elections have been held in Angola in which all participants 


SSpencer on DSK4SPTVN1PROD with REPORTS
23 

were afforded free and fair access, and that the government of Angola— 

(A) is willing, and is actively seeking, to achieve an equitable 

political settlement of the conflict in Angola, including free and 

fair elections, through a mutual cease-fire and a dialogue with 

the opposition armed forces; 

(B) has demonstrated progress in protecting internationally 

recognized human rights, and particularly in— 

(i) ending, through prosecution or other means, involvement of members of the military and security forces in political violence and abuses of internationally recognized 

human rights; 

(ii) vigorously prosecuting persons engaged in political 

violence who are connected with the government; and 

(iii) bringing to justice those responsible for the abduction, torture, and murder of citizens of Angola and citizens 

of the United States; and 

(C) has demonstrated progress in its respect for, and protection of— 

(i) the freedom of the press; 

(ii) the freedom of speech; 

(iii) the freedom of assembly; 

(iv) the freedom of association (including the right to organize for political purposes); 

(v) internationally recognized worker rights; and 

(vi) other attributes of political pluralism and democracy. 

The President shall include in each report made pursuant to this 

paragraph a detailed statement with respect to each of the conditions set forth in this paragraph. This paragraph shall not be construed to impose any requirement with respect to Angola that is 

more restrictive than any requirement imposed by this section generally on all other countries. 

(12) PROHIBITION RELATING TO RUSSIAN TRANSFERS OF CERTAIN

MISSILE SYSTEMS.—If the President of the United States determines 

that the military or Government of the Russian Federation has 

transferred or delivered to the People’s Republic of China an SS– 

N–22 missile system and that the transfer or delivery represents 

a significant and imminent threat to the security of the United 

States, the President of the United States shall notify the Bank of 

the transfer or delivery as soon as practicable. Upon receipt of the 

notice and if so directed by the President of the United States, the 

Board of Directors of the Bank shall not give approval to guarantee, insure, extend credit, or participate in the extension of credit 

in connection with the purchase of any good or service by the military or Government of the Russian Federation. 

(13) PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CER- TAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.— 

The Bank shall not guarantee, insure, or extend (or participate in 

the extension of) credit in connection with the export of any good 

or service relating to the development or promotion of any railway 

connection or railway-related connection that does not traverse or 

connect with Armenia and does traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey. 

(14) PROHIBITION ON FINANCING THAT WOULD BENEFIT IRAN.— 


SSpencer on DSK4SPTVN1PROD with REPORTS
24 

(A) DIRECT FINANCING.—The Bank shall not guarantee, insure, or extend (or participate in an extension of) credit in connection with any transaction with respect to which credit assistance from the Bank is first sought after the effective date of this 

paragraph by— 

(i) the Government of Iran or an entity owned or controlled by the Government of Iran; or 

(ii) an entity created under Iranian law, or a foreign subsidiary of such an entity. 

(B) INDIRECT FINANCING.—The Bank shall not guarantee, insure, or extend (or participate in an extension of) credit in connection with any transaction with respect to which credit assistance from the Bank is first sought after the effective date of this 

paragraph involving— 

(i) an entity for the purpose of a transaction involving the 

Government of Iran or an entity referred to in subparagraph (A); or 

(ii) a non-United States entity that, in the 5-year period 

ending with the date of the enactment of this paragraph, 

has leased or sold aircraft to the Government of Iran or an 

entity referred to in subparagraph (A) in contravention of 

United States law, or a subsidiary or controlling parent of 

such a non-United States entity. 

(C) CANCELLATION OF APPROVED FINANCING.—The Bank shall 

cease the provision of financial assistance approved by the Bank 

in connection with a transaction with respect to which credit 

assistance from the Bank is approved after the effective date of 

this paragraph, on finding that the assistance has facilitated 

the export, sale, or lease of an aircraft to an entity referred to 

in subparagraph (A), and shall seek immediate recovery of any 

amount provided by the Bank in connection with the transaction. 

(c)(1) The Bank shall charge fees and premiums commensurate, 

in the judgment of the Bank, with risks covered in connection with 

the contractual liability that the Bank incurs for guarantees, insurance, coinsurance, and reinsurance against political and credit 

risks of loss. 

(2) The Bank may issue such guarantees, insurance, coinsurance, 

and reinsurance to or with exporters, insurance companies, financial institutions, or others, or groups thereof, and where appropriate may employ any of the same to act as its agent in the 

issuance and servicing of such guarantees, insurance, coinsurance, 

and reinsurance, and the adjustment of claims arising thereunder. 

(3) TRANSFERABILITY OF GUARANTEES.— 

(A) IN GENERAL.—With respect to medium-term and longterm obligation insured or guaranteed by the Bank after the 

date of the enactment of the Export-Import Bank Act Amendments of 1986, the Bank shall authorize the unrestricted transfer of such obligations by the originating lenders or their transferees to other lenders without affecting, limiting, or terminating the guarantee or insurance provided by the Bank. 

(B) GUARANTEE COVERAGE.—For the guarantee program provided for in this subsection, the Bank may provide up to 100 

percent coverage of the interest and principal if the Board of 

Directors determines such coverage to be necessary to ensure 


SSpencer on DSK4SPTVN1PROD with REPORTS
25 

acceptance of Bank guarantees by financial institutions for any 

transaction in any export market in which the Bank is open for 

business. 

(d)(1) In carrying out its responsibilities under this Act, the Bank 

shall work to ensure that United States companies are afforded an 

equal and nondiscriminatory opportunity to bid for insurance in 

connection with transactions assisted by the Bank. 

(2) COMPETITIVE OPPORTUNITY FOR INSURANCE COMPANIES.—In 

the case of any long-term loan or guarantee of not less than 

$25,000,000, the Bank shall seek to ensure that United States insurance companies are accorded a fair and open competitive opportunity to provide insurance against risk of loss in connection with 

any transaction with respect to which such loan or guarantee is 

provided. 

(3) RESPONSIVE ACTIONS.—If the Bank becomes aware that a fair 

and open competitive opportunity is not accorded to any United 

States insurance company in a foreign country with respect to 

which the Bank is considering a loan or guarantee, the Bank— 

(A) may approve or deny the loan or guarantee after considering whether such action would be likely to achieve competitive access for United States insurance companies; and 

(B) shall forward information regarding any foreign country 

that denies United States insurance companies a fair and open 

competitive opportunity to the Secretary of Commerce and to 

the United States Trade Representative for consideration of a 

recommendation to the President that access by such country 

to export credit of the United States should be restricted. 

(4) NOTICE OF APPROVAL.—If the Bank approves a loan or guarantee with respect to a foreign country notwithstanding information regarding denial by that foreign country of competitive opportunities for United States insurance companies, the Bank shall include notice of such approval and the reason for such approval in 

the report on competition in officially supported export credit required under subsection (b)(1)(A). 

(5) DEFINITIONS.—For purposes of this section— 

(A) the term ‘‘United States insurance company’’— 

(i) includes an individual, partnership, corporation, holding company, or other legal entity which is authorized (or 

in the case of a holding company, subsidiaries of which are 

authorized) by a State to engage in the business of issuing 

insurance contracts or reinsuring the risk underwritten by 

insurance companies; and 

(ii) includes foreign operations, branches, agencies, subsidiaries, affiliates, or joint ventures of any entity described in clause (i); and 

(B) the term ‘‘fair and open competitive opportunity’’ means, 

with respect to the provision of insurance by a United States 

insurance company, that the company— 

(i) has received notice of the opportunity to provide such 

insurance; and 

(ii) has been evaluated for such opportunity on a nondiscriminatory basis. 

(e) LIMITATION ON ASSISTANCE WHICH ADVERSELY AFFECT THE

UNITED STATES.— 


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26 

(1) IN GENERAL.—The Bank may not extend any direct credit 

of financial guarantee for establishing or expanding production 

of any commodity for export by any country other than the 

United States, if— 

(A) the Bank determines that— 

(i) the commodity is likely to be in surplus on world 

markets at the time the resulting commodity will first 

be sold; or 

(ii) the resulting production capacity is expected to 

compete with United States production of the same, 

similar, or competing commodity; and 

(B) the Bank determines that the extension of such credit or guarantee will cause substantial injury to United 

States producers of the same, similar, or competing commodity. 

In making the determination under subparagraph (B), the 

Bank shall determine whether the facility that would benefit 

from the extension of a credit or guarantee is reasonably likely 

to produce a commodity in addition to, or other than, the commodity specified in the application and whether the production 

of the additional commodity may cause substantial injury to 

United States producers of the same, or a similar or competing, 

commodity. 

(2) OUTSTANDING ORDERS AND PRELIMINARY INJURY DETERMINATIONS.— 

(A) ORDERS.—The Bank shall not provide any loan or 

guarantee to an entity for the resulting production of substantially the same product that is the subject of— 

(i) a countervailing duty or antidumping order under 

title VII of the Tariff Act of 1930; or 

(ii) a determination under title II of the Trade Act 

of 1974. 

(B) AFFIRMATIVE DETERMINATION.—Within 60 days after 

the date of the enactment of this paragraph, the Bank 

shall establish procedures regarding loans or guarantees 

provided to any entity that is subject to a preliminary determination of a reasonable indication of material injury to 

an industry under title VII of the Tariff Act of 1930. The 

procedures shall help to ensure that these loans and guarantees are likely to not result in a significant increase in 

imports of substantially the same product covered by the 

preliminary determination and are likely to not have a significant adverse impact on the domestic industry. The 

Bank shall report to the Committee on Financial Services 

of the House of Representatives and the Committee on 

Banking, Housing, and Urban Affairs of the Senate on the 

implementation of these procedures. 

(C) COMMENT PERIOD.—The Bank shall establish procedures under which the Bank shall notify interested parties 

and provide a comment period of not less than 14 days 

(which, on request of any affected party, shall be extended 

to a period of not more than 30 days) with regard to loans 

or guarantees reviewed pursuant to subparagraph (B) or 

(D). 


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(D) CONSIDERATION OF INVESTIGATIONS UNDER TITLE II

OF THE TRADE ACT OF 1974.—In making any determination 

under paragraph (1) for a transaction involving more than 

$10,000,000, the Bank shall consider investigations under 

title II of the Trade Act of 1974 that have been initiated 

at the request of the President of the United States, the 

United States Trade Representative, the Committee on Finance of the Senate, or the Committee on Ways and 

Means of the House of Representatives, or by the International Trade Commission on its own motion. 

(E) ANTI-CIRCUMVENTION.—The Bank shall not provide a 

loan or guarantee if the Bank determines that providing 

the loan or guarantee will facilitate circumvention of an 

order or determination referred to in subparagraph (A). 

(3) EXCEPTION.—Paragraphs (1) and (2) shall not apply in 

any case where, in the judgment of the Board of Directors of 

the Bank, the short- and long-term benefits to industry and 

employment in the United States are likely to outweigh the 

short- and long-term injury to United States producers and 

employment of the same, similar, or competing commodity. 

(4) DEFINITION.—For purposes of paragraph (1)(B), the extension of any credit or guarantee by the Bank will cause substantial injury if the amount of the capacity for production established, or the amount of the increase in such capacity expanded, by such credit or guarantee equals or exceeds 1 percent of United States production. 

(5) DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND

PRODUCTS.—Not later than 120 days after the date of the enactment of this Act, the Bank shall submit a list to the Committee on Banking, Housing, and Urban Affairs of the Senate 

and the Committee on Financial Services of the House of Representatives, which designates sensitive commercial sectors 

and products with respect to which the provision of financing 

support by the Bank is deemed unlikely by the President of the 

Bank due to the significant potential for a determination that 

such financing support would result in an adverse economic 

impact on the United States. The President of the Bank shall 

review on an annual basis thereafter the list of sensitive commercial sectors and products and the Bank shall submit an updated list to the Committee on Banking, Housing, and Urban 

Affairs of the Senate and the Committee on Financial Services 

of the House of Representatives of such sectors and products. 

(6) FINANCIAL THRESHOLD DETERMINATIONS.—For purposes of 

determining whether a proposed transaction exceeds a financial threshold under this subsection or under the procedures or 

rules of the Bank, the Bank shall aggregate the dollar amount 

of the proposed transaction and the dollar amounts of all loans 

and guarantees, approved by the Bank in the preceding 24- 

month period, that involved the same foreign entity and substantially the same product to be produced. 

(7) PROCEDURES TO REDUCE ADVERSE EFFECTS OF LOANS AND

GUARANTEES ON INDUSTRIES AND EMPLOYMENT IN UNITED

STATES.— 

(A) CONSIDERATION OF ECONOMIC EFFECTS OF PROPOSED

TRANSACTIONS.—If, in making a determination under this 


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28 

paragraph with respect to a loan or guarantee, the Bank 

conducts a detailed economic impact analysis or similar 

study, the analysis or study, as the case may be, shall include consideration of— 

(i) the factors set forth in subparagraphs (A) and (B) 

of paragraph (1); and 

(ii) the views of the public and interested parties. 

(B) NOTICE AND COMMENT REQUIREMENTS.— (i) IN GENERAL.—If, in making a determination 

under this subsection with respect to a loan or guarantee, the Bank intends to conduct a detailed economic impact analysis or similar study, the Bank shall 

publish in the Federal Register a notice of the intent, 

and provide a period of not less than 14 days (which, 

on request by any affected party, shall be extended to 

a period of not more than 30 days) for the submission 

to the Bank of comments on the economic effects of the 

provision of the loan or guarantee, including comments on the factors set forth in subparagraphs (A) 

and (B) of paragraph (1). In addition, the Bank shall 

seek comments on the economic effects from the Department of Commerce, the Office of Management and 

Budget, the Committee on Banking, Housing, and 

Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives. 

(ii) CONTENT OF NOTICE.—The notice shall include 

appropriate, nonproprietary information about— 

(I) the country to which the goods involved in 

the transaction will be shipped; 

(II) the type of goods being exported; 

(III) the amount of the loan or guarantee involved; 

(IV) the goods that would be produced as a result of the provision of the loan or guarantee; 

(V) the amount of increased production that will 

result from the transaction; 

(VI) the potential sales market for the resulting 

goods; and 

(VII) the value of the transaction. 

(iii) PROCEDURE REGARDING MATERIALLY CHANGED

APPLICATIONS.— 

(I) IN GENERAL.—If a material change is made 

to an application for a loan or guarantee from the 

Bank after a notice with respect to the intent described in clause (i) is published under this subparagraph, the Bank shall publish in the Federal 

Register a revised notice of the intent, and shall 

provide for a comment period, as provided in 

clauses (i) and (ii). 

(II) MATERIAL CHANGE DEFINED.—As used in 

subclause (I), the term ‘‘material change’’, with respect to an application, includes— 

(aa) a change of at least 25 percent in the 

amount of a loan or guarantee requested in 

the application; and 


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29 

(bb) a change in the principal product to be 

produced as a result of any transaction that 

would be facilitated by the provision of the 

loan or guarantee. 

(C) REQUIREMENT TO ADDRESS VIEWS OF ADVERSELY AFFECTED PERSONS.—Before taking final action on an application for a loan or guarantee to which this section applies, 

the staff of the Bank shall provide in writing to the Board 

of Directors the views of any person who submitted comments pursuant to subparagraph (B). 

(D) PUBLICATION OF CONCLUSIONS.—Within 30 days 

after a party affected by a final decision of the Board of 

Directors with respect to a loan or guarantee makes a 

written request therefor, the Bank shall provide to the affected party a non-confidential summary of the facts found 

and conclusions reached in any detailed economic impact 

analysis or similar study conducted pursuant to subparagraph (B) with respect to the loan or guarantee, that were 

submitted to the Board of Directors. 

(E) MAINTENANCE OF DOCUMENTATION.—The Bank shall 

maintain documentation relating to economic impact analyses and similar studies conducted under this subsection 

in a manner consistent with the Standards for Internal 

Control of the Federal Government issued by the Comptroller General of the United States. 

(F) RULE OF INTERPRETATION.—This paragraph shall not 

be construed to make subchapter II of chapter 5 of title 5, 

United States Code, applicable to the Bank. 

(G) REGULATIONS.—The Bank shall implement such regulations and procedures as may be appropriate to carry 

out this paragraph. 

(f) AUTHORITY TO DENY APPLICATION FOR ASSISTANCE BASED ON

FRAUD OR CORRUPTION BY PARTY INVOLVED IN THE TRANSACTION.— 

In addition to any other authority of the Bank, the Bank may deny 

an application for assistance with respect to a transaction if the 

Bank has substantial credible evidence that any party to the transaction or any party involved in the transaction has committed an 

act of fraud or corruption in connection with the transaction. 

(g) PROCESS FOR NOTIFYING APPLICANTS OF APPLICATION STATUS.—The Bank shall establish and adhere to a clearly defined 

process for— 

(1) acknowledging receipt of applications; 

(2) informing applicants that their applications are complete 

or, if incomplete or containing a minor defect, of the additional 

material or changes that, if supplied or made, would make the 

application eligible for consideration; and 

(3) keeping applicants informed of the status of their applications, including a clear and timely notification of approval or 

disapproval, and, in the case of disapproval, the reason for disapproval, as appropriate. 

(h) RESPONSE TO APPLICATION FOR FINANCING; IMPLEMENTATION

OF ONLINE LOAN REQUEST AND TRACKING PROCESS.— 

(1) RESPONSE TO APPLICATIONS.—Within 5 days after the 

Bank receives an application for financing, the Bank shall noVerDate Sep 11 2014 22:22 Nov 21, 2016 Jkt 069006 PO 00000 Frm 00029 Fmt 6659 Sfmt 6602 E:\HR\OC\HR819.XXX HR819

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30 

tify the applicant that the application has been received, and 

shall include in the notice— 

(A) a request for such additional information as may be 

necessary to make the application complete; 

(B) the name of a Bank employee who may be contacted 

with questions relating to the application; and 

(C) a unique identification number which may be used 

to review the status of the application at a website established by the Bank. 

(2) WEBSITE.—Not later than September 1, 2007, the Bank 

shall exercise the authority granted by subparagraphs (E)(x) 

and (J) of subsection (b)(1) to establish, and thereafter to maintain, a website through which— 

(A) Bank products may be applied for; and 

(B) information may be obtained with respect to— 

(i) the status of any such application; 

(ii) the Small Business Division of the Bank; and 

(iii) incentives, preferences, targets, and goals relating to small business concerns (as defined in section 

3(a) of the Small Business Act), including small business concerns exporting to Africa. 

(i) DUE DILIGENCE STANDARDS FOR LENDER PARTNERS.—The 

Bank shall set due diligence standards for its lender partners and 

participants, which should be applied across all programs consistently. To minimize or prevent fraudulent activity, the Bank should 

require all delegated lenders to implement ‘‘Know your customer 

practices’’. 

(j) NON-SUBORDINATION REQUIREMENT.—In entering into financing contracts, the Bank shall seek a creditor status which is not 

subordinate to that of all other creditors, in order to reduce the risk 

to, and enhance recoveries for, the Bank. 

(k) PROHIBITION ON DISCRIMINATION BASED ON INDUSTRY.— 

(1) IN GENERAL.—Except as provided in this Act, the Bank 

may not— 

(A) deny an application for financing based solely on the 

industry, sector, or business that the application concerns; 

or 

(B) promulgate or implement policies that discriminate 

against an application based solely on the industry, sector, 

or business that the application concerns. 

(2) APPLICABILITY.—The prohibitions under paragraph (1) 

apply only to applications for financing by the Bank for 

projects concerning the exploration, development, production, 

or export of energy sources and the generation or transmission 

of electrical power, or combined heat and power, regardless of 

the energy source involved. 

* * * * * * * 


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(31) 

MINORITY VIEWS 

The ‘‘No Ex-Im Assistance for Terrorism Act’’ would prohibit the 

Export-Import Bank from providing financing that would benefit 

Iran. The bill effectively restates the Export-Import Bank’s (Ex-Im 

Bank) interpretation of current law and its standing policy of not 

supporting any transaction with a government listed as a state 

sponsor of terror. Notably, however, the bill does not allow the 

President to waive restrictions on the Ex-Im Bank’s ability to finance exports to Iran for national security purposes, nor is the application of the bill contingent on whether Iran continues to be listed as a state sponsor of terror. That is, the bill’s prohibition on ExIm Bank transactions that benefit Iran are permanent, with no 

sunset provision that would terminate such restrictions in the 

event Iran changes its behavior in the future. 

Removing the President’s current national security waiver authority—which all previous Iran sanctions bills that have passed 

the House and become law have included—is also highly problematic. While the White House has never exercised its national security waiver authority with regard to Ex-Im Bank transactions involving Iran, we are opposed to setting a precedent of removing the 

President’s discretion, and curtailing his leverage, on critical national security matters. Eliminating the President’s waiver authority would deny the President the flexibility necessary to work with 

our allies to find the most effective ways of changing Iran’s behavior. 

With respect to the section of the bill that would lead to the cancellation of approved financing, we note this provision includes a 

sweeping and undefined category of transactions that may ‘‘facilitate’’ activity with Iran. Such a vague, undefined term could result 

in an overly broad interpretation of the provision whereby any 

party accused of violating this provision would likely face undue 

difficulty in asserting a defense. 

Given that the bill lacks a sunset provision, removes the President’s discretion to act in the interest of our national security, and 

the ambiguous scope of the provision that could result in the cancellation of approved financing, we oppose this bill. 

MAXINE WATERS. 

JOYCE BEATTY. 

STEPHEN F. LYNCH. 

RUBE ́ N HINOJOSA. 

Æ 


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