PUBLIC LAW 112–122—MAY 30, 2012 

EXPORT-IMPORT BANK REAUTHORIZATION 

ACT OF 2012 


ccoleman on DSK8P6SHH1PROD with PUBLIC LAWS
126 STAT. 350 PUBLIC LAW 112–122—MAY 30, 2012 

Public Law 112–122 

112th Congress 

An Act 

To reauthorize the Export-Import Bank of the United States, and for other purposes. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Export-Import 

Bank Reauthorization Act of 2012’’. 

(b) TABLE OF CONTENTS.—The table of contents of this Act 

is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Extension of authority. 

Sec. 3. Limitations on outstanding loans, guarantees, and insurance. 

Sec. 4. Export-Import Bank exposure limit business plan. 

Sec. 5. Study by the Comptroller General on the role of the Bank in the world economy and the Bank’s risk management. Sec. 6. Monitoring of default rates on Bank financing; reports on default rates; 

safety and soundness review. Sec. 7. Improvement and clarification of due diligence standards for lender partners. Sec. 8. Non-subordination requirement. 

Sec. 9. Notice and comment for Bank transactions exceeding $100,000,000. 

Sec. 10. Categorization of purpose of loans and long-term guarantees in annual report. Sec. 11. Negotiations to end export credit financing. 

Sec. 12. Publication of guidelines for economic impact analyses and documentation 

of such analyses. Sec. 13. Report on implementation of recommendations of the Government Accountability Office. Sec. 14. Examination of Bank support for small business. 

Sec. 15. Review and report on domestic content policy. 

Sec. 16. Improvement of method for calculating the effects of Bank financing on job 

creation and maintenance in the United States. 

Sec. 17. Periodic audits of Bank transactions. 

Sec. 18. Prohibitions on financing for certain persons involved in sanctionable activities with respect to Iran. Sec. 19. Use of portion of Bank surplus to update information technology systems. 

Sec. 20. Modifications relating to the advisory committee. 

Sec. 21. Financing for goods manufactured in the United States used in global textile and apparel supply chains. Sec. 22. Technical correction. 

Sec. 23. Sub-Saharan Africa Advisory Committee. 

Sec. 24. Dual use exports. 

Sec. 25. Effective date. 

SEC. 2. EXTENSION OF AUTHORITY. 

Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635f) is amended by striking ‘‘2011’’ and inserting ‘‘2014’’. 

SEC. 3. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND 

INSURANCE. 

Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 

U.S.C. 635e(a)(2)) is amended— 

12 USC 635 note. 

Export-Import 

Bank 

Reauthorization 

Act of 2012. 

May 30, 2012 

[H.R. 2072] 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 351 

(1) in subparagraph (D), by striking ‘‘and’’; 

(2) in subparagraph (E), by striking the comma at the 

end and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(F) during fiscal year 2012 and each succeeding fiscal 

year, $120,000,000,000, except that— 

‘‘(i) the applicable amount for each of fiscal years 

2013 and 2014 shall be $130,000,000,000 if— 

‘‘(I) the Bank has submitted a report as 

required by section 4(a) of the Export-Import Bank 

Reauthorization Act of 2012; and 

‘‘(II) the rate calculated under section 8(g)(1) 

of this Act is less than 2 percent for the quarter 

ending with the beginning of the fiscal year, or 

for any quarter in the fiscal year; and 

‘‘(ii) notwithstanding clause (i), the applicable 

amount for fiscal year 2014 shall be $140,000,000,000 

if— 

‘‘(I) the rate calculated under section 8(g)(1) 

of this Act is less than 2 percent for the quarter 

ending with the beginning of the fiscal year, or 

for any quarter in the fiscal year; 

‘‘(II) the Bank has submitted a report as 

required by subsection (b) of section 5 of the 

Export-Import Bank Reauthorization Act of 2012, 

except that the preceding provisions of this subclause shall not apply if the Comptroller General 

has not submitted the report required by subsection (a) of such section 5 on or before July 

1, 2013; and 

‘‘(III) the Secretary of the Treasury has submitted the reports required by section 11(b) of 

the Export-Import Bank Reauthorization Act of 

2012.’’. 

SEC. 4. EXPORT-IMPORT BANK EXPOSURE LIMIT BUSINESS PLAN. 

(a) IN GENERAL.—Not later than September 30, 2012, the 

Export-Import Bank of the United States shall submit to the Congress and the Comptroller General a written report that contains 

the following: 

(1) A business plan that— 

(A) includes an estimate by the Bank of the appropriate 

exposure limits of the Bank for 2012, 2013, and 2014; 

(B) justifies the estimate; and 

(C) estimates any anticipated growth of the Bank for 

2012, 2013, and 2014— 

(i) by industry sector; 

(ii) by whether the products involved are shortterm loans, medium-term loans, long-term loans, insurance, medium-term guarantees, or long-term guarantees; and 

(iii) by key market. 

(2) An analysis of the potential for increased or decreased 

risk of loss to the Bank as a result of the estimated exposure 

limit, including an analysis of increased or decreased risks 

associated with changes in the composition of Bank exposure, 

by industry sector, by product offered, and by key market. 

Reports. 

Applicability. 

Reports. 


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126 STAT. 352 PUBLIC LAW 112–122—MAY 30, 2012 

(3) An analysis of the ability of the Bank to meet its 

small business and sub-Saharan Africa mandates and comply 

with its carbon policy mandate under the proposed exposure 

limit, and an analysis of any increased or decreased risk of 

loss associated with meeting or complying with the mandates 

under the proposed exposure limit. 

(4) An analysis of the adequacy of the resources of the 

Bank to effectively process, approve, and monitor authorizations, including the conducting of required economic impact 

analysis, under the proposed exposure limit. 

(b) GAO REVIEW OF REPORT AND BUSINESS PLAN.—Not later 

than June 1, 2013, the Comptroller General shall submit to the 

Congress a written analysis of the report and business plan submitted under subsection (a), which shall include such recommendations with respect to the report and business plan as the Comptroller General deems appropriate. 

SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE ROLE OF 

THE BANK IN THE WORLD ECONOMY AND THE BANK’S RISK 

MANAGEMENT. 

(a) IN GENERAL.—Within 10 months after the date of the enactment of this Act, the Comptroller General of the United States 

shall complete and submit to the Export-Import Bank of the United 

States, the Committee on Banking, Housing, and Urban Affairs 

of the Senate and the Committee on Financial Services of the 

House of Representatives a report which— 

(1) evaluates— 

(A) the history of the rate of growth of the Bank, 

and its causes, with specific consideration given to— 

(i) the capital market conditions for export 

financing; 

(ii) increased competition from foreign export credit 

agencies; 

(iii) the rate of growth of the Bank from 2008 

to the present; 

(B) the effectiveness of the Bank’s risk management, 

including— 

(i) potential for losses from each of the products 

offered by the Bank; and 

(ii) the overall risk of the Bank’s portfolio, taking 

into account— 

(I) market risk; 

(II) credit risk; 

(III) political risk; 

(IV) industry-concentration risk; 

(V) geographic-concentration risk; 

(VI) obligor-concentration risk; and 

(VII) foreign-currency risk; 

(C) the Bank’s use of historical default and recovery 

rates to calculate future program costs, taking into consideration cost estimates determined under the Federal Credit 

Reform Act of 1990 (2 U.S.C. 661 et seq.) and whether 

discount rates applied to cost estimates should reflect the 

risks described in subparagraph (B); 

(D) the fees charged by the Bank for the products 

the Bank offers, whether the Bank’s fees properly reflect 

the risks described in subparagraph (B), and how the fees 

Deadline. 

Reports. 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 353 

are affected by United States participation in international 

agreements; and 

(E) whether the Bank’s loan loss reserves policy is 

sufficient to cover the risks described in subparagraph 

(B); and 

(2) makes appropriate recommendations with respect to 

the matters so evaluated. 

(b) RECOMMENDATIONS AND REPORT BY THE BANK.—Not later 

than 120 days after the Bank receives the report, the Bank shall 

submit to the Congress a report on the implementation of recommendations included in the report so received. If the Bank does 

not adopt the recommendations, the Bank shall include in its report 

an explanation of why the Bank has not done so. 

SEC. 6. MONITORING OF DEFAULT RATES ON BANK FINANCING; 

REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS 

REVIEW. 

Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635g) is amended by adding at the end the following: 

‘‘(g) MONITORING OF DEFAULT RATES ON BANK FINANCING; 

REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW.— 

‘‘(1) MONITORING OF DEFAULT RATES.—Not less frequently 

than quarterly, the Bank shall calculate the rate at which 

the entities to which the Bank has provided short-, medium- 

, or long-term financing are in default on a payment obligation 

under the financing, by dividing the total amount of the 

required payments that are overdue by the total amount of 

the financing involved. 

‘‘(2) ADDITIONAL CALCULATION BY TYPE OF PRODUCT, BY

KEY MARKET, AND BY INDUSTRY SECTOR; REPORT TO CONGRESS.— 

In addition, the Bank shall, not less frequently than quarterly— 

‘‘(A) calculate the rate of default— 

‘‘(i) with respect to whether the products involved 

are short-term loans, medium-term loans, long-term 

loans, insurance, medium-term guarantees, or longterm guarantees; 

‘‘(ii) with respect to each key market involved; 

and 

‘‘(iii) with respect to each industry sector involved; 

and 

‘‘(B) submit to the Committee on Banking, Housing, 

and Urban Affairs of the Senate and the Committee on 

Financial Services of the House of Representatives a report 

on each such rate and any information the Bank deems 

relevant. 

‘‘(3) REPORT ON CAUSES OF DEFAULT RATE; PLAN TO REDUCE

DEFAULT RATE.—Within 45 days after a rate calculated under 

paragraph (1) equals or exceeds 2 percent, the Bank shall 

submit to the Congress a written report that explains the 

circumstances that have caused the default rate to be at least 

2 percent, and includes a plan to reduce the default rate to 

less than 2 percent. 

‘‘(4) PLAN CONTENTS.—The plan referred to in paragraph 

(3) shall— 

‘‘(A) provide a detailed explanation of the processes 

and controls by which the Bank monitors and tracks outstanding loans; 


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126 STAT. 354 PUBLIC LAW 112–122—MAY 30, 2012 

‘‘(B) detail specific planned actions, including a time 

frame for completing the actions, to reduce the default 

rate described in paragraph (1) to less than 2 percent. 

‘‘(5) MONTHLY REPORTS REQUIRED WHILE DEFAULT RATE IS

AT LEAST 2 PERCENT.—For so long as the default rate calculated 

under paragraph (1) is at least 2 percent, the Bank shall 

submit monthly reports to the Congress describing the specific 

actions taken during such period to reduce the default rate. 

‘‘(6) SAFETY AND SOUNDNESS REVIEW.—If the default rate 

calculated under paragraph (1) remains above 2 percent for 

a period of 6 months, the Secretary of the Treasury shall 

provide for an independent third party to— 

‘‘(A) conduct a review of the loan programs and funds 

of the Bank, which shall determine— 

‘‘(i) the financial safety and soundness of the programs and funds; and 

‘‘(ii) the extent of loan loss reserves and capital 

adequacy of the programs and funds; and 

‘‘(B) submit to the Secretary, within 60 days after 

the end of the 6-month period, a report that— 

‘‘(i) describes the methodology and standards used 

to conduct the review required by subparagraph (A); 

‘‘(ii) sets forth the results and findings of the 

review, including the extent of loan loss reserves and 

capital adequacy of the programs and funds of the 

Bank; and 

‘‘(iii) includes recommendations regarding 

restoring the reserves and capital to maintain the programs and funds in a safe and sound condition.’’. 

SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILIGENCE 

STANDARDS FOR LENDER PARTNERS. 

Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635) is amended by adding at the end the following: 

‘‘(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’.’’. 

SEC. 8. NON-SUBORDINATION REQUIREMENT. 

Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635), as amended by section 7 of this Act, is amended by adding 

at the end the following: 

‘‘(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.’’. 

SEC. 9. NOTICE AND COMMENT FOR BANK TRANSACTIONS EXCEEDING 

$100,000,000. 

(a) IN GENERAL.—Section 3(c) of the Export-Import Bank Act 

of 1945 (12 U.S.C. 635a(c)) is amended by adding at the end the 

following: 

‘‘(10) NOTICE AND COMMENT REQUIREMENTS.— ‘‘(A) IN GENERAL.—Before any meeting of the Board 

for final consideration of a long-term transaction the value 

Contracts. 

Determination. 

Time period. 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 355 

of which exceeds $100,000,000, and concurrent with any 

statement required to be submitted under section 2(b)(3) 

with respect to the transaction, the Bank shall provide 

a notice and comment period. 

‘‘(B) FINANCIAL THRESHOLD DETERMINATIONS.—For purposes of determining whether the value of a proposed transaction exceeds the financial threshold set forth in subparagraph (A), the Bank shall aggregate the dollar amount 

of the proposed transaction and the dollar amounts of 

all long-term loans and guarantees, approved by the Bank 

in the preceding 12-month period, that involved the same 

foreign entity and substantially the same product to be 

produced. 

‘‘(C) SPECIFIC REQUIREMENTS.— ‘‘(i) IN GENERAL.—The Bank shall— 

‘‘(I) publish in the Federal Register a notice 

of the application proposing the transaction; 

‘‘(II) provide a period of not less than 25 days 

for the submission to the Bank of comments on 

the application; and 

‘‘(III) notify the Committee on Banking, 

Housing, and Urban Affairs of the Senate, and 

the Committee on Financial Services of the House 

of Representatives of the application, and seek 

comments on the application from the Department 

of Commerce and the Office of Management and 

Budget. 

‘‘(ii) CONTENT OF NOTICE.—The notice published 

under clause (i)(I) with respect to an application for 

a loan or financial guarantee shall include appropriate 

information about— 

‘‘(I) a brief non-proprietary description of the 

purposes of the transaction and the anticipated 

use of any item being exported, including, to the 

extent the Bank is reasonably aware, whether the 

item may be used to produce exports or provide 

services in competition with the exportation of 

goods or the provision of services by a United 

States industry; 

‘‘(II) the identities of the obligor, principal supplier, and guarantor; and 

‘‘(III) a description, such as type or model 

number, of any item with respect to which Bank 

financing is being sought, but only to the extent 

the description does not disclose any information 

that is confidential or proprietary business 

information, that would violate the Trade Secrets 

Act, or that would jeopardize jobs in the United 

States by supplying information which competitors 

could use to compete with companies in the United 

States. 

‘‘(D) PROCEDURE REGARDING MATERIALLY CHANGED

APPLICATIONS.— 

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

to an application to which this paragraph applies, after 

a notice with respect to the application is published 

under subparagraph (C)(i)(I), the Bank shall publish 

Federal Register, 

publication. 

Time period. 

Federal Register, 

publication. 

Time period. 


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126 STAT. 356 PUBLIC LAW 112–122—MAY 30, 2012 

in the Federal Register a revised notice of the application and provide for an additional comment period 

as provided in subparagraph (C)(i)(II). 

‘‘(ii) MATERIAL CHANGE DEFINED.—In clause (i), the 

term ‘material change’, with respect to an application 

for a loan or guarantee, includes an increase of at 

least 25 percent in the amount of a loan or guarantee 

requested in the application. 

‘‘(E) REQUIREMENT TO ADDRESS VIEWS OF COM- MENTERS.—Before taking final action on an application to 

which this paragraph applies, the staff of the Bank shall 

provide in writing to the Board of Directors the views 

of any person who submitted comments on the application 

pursuant to this paragraph. 

‘‘(F) PUBLICATION OF CONCLUSIONS.—Within 30 days 

after a final decision of the Board of Directors with respect 

to an application to which this paragraph applies, the 

Bank shall provide to a commenter on the application 

or the decision who makes a request therefor, a non-confidential summary of the facts found and conclusions 

reached in any detailed analysis or similar study with 

respect to the loan or guarantee that is the subject of 

the application, that was submitted to the Board of Directors. Such summary should be sent within 30 days of 

the receipt of the written request or date of the final 

decision of the Board of Directors, whichever is later. 

‘‘(G) RULE OF INTERPRETATION.—The obligations 

imposed by this paragraph shall not be interpreted to 

create, modify, or preclude any legal right of action.’’. 

(b) EFFECTIVE DATE.—The amendment made by subsection (a) 

shall take effect 60 days after the date of the enactment of this 

Act. 

SEC. 10. CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM 

GUARANTEES IN ANNUAL REPORT. 

Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635g), as amended by section 6 of this Act, is amended by adding 

at the end the following: 

‘‘(h) CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM

GUARANTEES.—In the annual report of the Bank under subsection 

(a), the Bank shall categorize each loan and long-term guarantee 

made by the Bank in the fiscal year covered by the report, and 

according to the following purposes: 

‘‘(1) ‘To assume commercial or political risk that exporter 

or private financial institutions are unwilling or unable to 

undertake’. 

‘‘(2) ‘To overcome maturity or other limitations in private 

sector export financing’. 

‘‘(3) ‘To meet competition from a foreign, officially sponsored, export credit competition’. 

‘‘(4) ‘Not identified’, and the reason why the purpose is 

not identified.’’. 

SEC. 11. NEGOTIATIONS TO END EXPORT CREDIT FINANCING. 

(a) IN GENERAL.—The Secretary of the Treasury (in this section 

referred to as the ‘‘Secretary’’) shall initiate and pursue negotiations— 

12 USC 635a–5. 

12 USC 635a 

note. 

Deadlines. 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 357 

(1) with other major exporting countries, including members of the Organisation for Economic Co-operation and 

Development (OECD) and non-OECD members, to substantially 

reduce, with the ultimate goal of eliminating, subsidized export 

financing programs and other forms of export subsidies; and 

(2) with all countries that finance air carrier aircraft with 

funds from a state-sponsored entity, to substantially reduce, 

with the ultimate goal of eliminating, aircraft export credit 

financing for all aircraft covered by the 2007 Sector Understanding on Export Credits for Civil Aircraft (in this section 

referred to as the ‘‘ASU’’), including any modification thereof, 

and all of the following types of aircraft: 

(A) Heavy aircraft that are capable of a takeoff weight 

of 300,000 pounds or more, whether or not operating at 

such a weight during a particular phase of flight. 

(B) Large aircraft that are capable of a takeoff weight 

of more than 41,000 pounds, and have a maximum certificated takeoff weight of not more than 300,000 pounds. 

(C) Small aircraft that have a maximum certificated 

takeoff weight of 41,000 pounds or less. 

(b) ANNUAL REPORTS ON PROGRESS OF NEGOTIATIONS.—Not 

later than 180 days after the date of the enactment of this Act, 

and annually thereafter, the Secretary shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate 

and the Committee on Financial Services of the House of Representatives— 

(1) a report on the progress of any negotiations described 

in subsection (a)(1), until the Secretary certifies in writing 

to the committees that all countries that support subsidized 

export financing programs have agreed to end the support; 

and 

(2) a report on the progress of any negotiations described 

in subsection (a)(2), including the progress of any negotiations 

with respect to each classification of aircraft set forth in subsection (a)(2), until the Secretary certifies in writing to the 

committees that all countries that support subsidized export 

financing programs have agreed to end the support of aircraft 

covered by the ASU. 

SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IMPACT ANALYSES AND DOCUMENTATION OF SUCH ANALYSES. 

(a) PUBLICATION OF GUIDELINES.—Not later than 180 days after 

the date of the enactment of this Act, the Export-Import Bank 

of the United States shall develop and make publicly available 

methodological guidelines to be used by the Bank in conducting 

economic impact analyses or similar studies under section 2(e) 

of the Export-Import Bank Act of 1945. In developing the guidelines, 

the Bank shall take into consideration any relevant guidance from 

the Office of Management and Budget. 

(b) MAINTENANCE OF DOCUMENTATION.—Section 2(e)(7) of the 

Export-Import Bank Act of 1945 (12 U.S.C. 635(e)(7)) is amended 

by redesignating subparagraphs (E) and (F) as subparagraphs (F) 

and (G), respectively, and inserting after subparagraph (D) the 

following: 

‘‘(E) MAINTENANCE OF DOCUMENTATION.—The Bank 

shall maintain documentation relating to economic impact 

Deadline. 

Public 

information. 

12 USC 635 note. 

Certifications. 


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126 STAT. 358 PUBLIC LAW 112–122—MAY 30, 2012 

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.’’. 

SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF 

THE GOVERNMENT ACCOUNTABILITY OFFICE. 

Not later than 180 days after the date of the enactment of 

this Act, the Export-Import Bank of the United States shall submit 

to the Committee on Banking, Housing, and Urban Affairs of the 

Senate and the Committee on Financial Services of the House 

of Representatives a report on the implementation or rejection 

by the Bank of the recommendations contained in the report of 

the Government Accountability Office entitled ‘‘Export-Import Bank: 

Improvements Needed in Assessment of Economic Impact’’, dated 

September 12, 2007 (GAO–07–1071), that includes— 

(1) a detailed description of the progress made in implementing each such recommendation; and 

(2) for any such recommendation that has not yet been 

implemented, an explanation of the reasons the recommendation has not been implemented. 

SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL BUSINESS. 

Within 180 days after the date of the enactment of this Act, 

the Export-Import Bank of the United States shall examine and 

report to Congress on its current programs, products, and polices 

with respect to the implementation of its export credit insurance 

program, delegated lending authority, and direct loans, and any 

other programs, products, and policies established to support 

exports from small businesses in the United States, and determine 

the extent to which those policies adequately meet the needs of 

the small businesses in obtaining Bank financing to support the 

maintenance or creation of jobs in the United States through 

exports, consistent with the requirement that the Bank obtain 

a reasonable assurance of repayment. 

SEC. 15. REVIEW AND REPORT ON DOMESTIC CONTENT POLICY. 

(a) IN GENERAL.—The Export-Import Bank of the United States 

shall conduct a review of its domestic content policy for mediumand long-term transactions. The review shall examine and evaluate 

the effectiveness of the Bank’s policy— 

(1) in maintaining and creating jobs in the United States; 

and 

(2) in contributing to a stronger national economy through 

the export of goods and services. 

(b) FACTORS TO CONSIDER.—In conducting the review under 

subsection (a), the Bank shall consider the following: 

(1) Whether the domestic content policy accurately captures 

the costs of United States production of goods and services, 

including the direct and indirect costs of manufacturing costs, 

parts, components, materials and supplies, research, planning 

engineering, design, development, production, return on investment, marketing and other business costs and the effect of 

such policy on the maintenance and creation of jobs in the 

United States. 

(2) The ability of the Bank to provide financing that is 

competitive with the financing provided by foreign export credit 

agencies and the impact that such financing has in enabling 

Deadline. 

Reports. 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 359 

companies with operations in the United States to contribute 

to a stronger United States economy by increasing employment 

through the export of goods and services. 

(3) The effects of the domestic content policy on the manufacturing and service workforce of the United States. 

(4) Any recommendations the members of the Bank’s 

Advisory Committee have regarding the Bank’s domestic content policy. 

(5) The effect that changes to the Bank’s domestic content 

requirements would have in providing companies an incentive 

to create and maintain operations in the United States and 

to increase jobs in the United States. 

(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Bank shall submit a report on the results 

of the review conducted under this section to the Committee on 

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

SEC. 16. IMPROVEMENT OF METHOD FOR CALCULATING THE EFFECTS 

OF BANK FINANCING ON JOB CREATION AND MAINTENANCE IN THE UNITED STATES. 

(a) GAO STUDY.—The Comptroller General of the United States 

shall conduct a study of the process and methodology used by 

the Export-Import Bank of the United States (in this section 

referred to as the ‘‘Bank’’) to calculate the effects of the provision 

of financing by the Bank on the creation and maintenance of 

employment in the United States, determine and assess the basis 

on which the Bank has so used the methodology, and make any 

recommendations the Comptroller General deems appropriate. 

(b) REPORT.—Within 1 year after the date of the enactment 

of this Act, the Comptroller General shall submit to the Congress 

and the Bank the results of the study required by subsection 

(a). 

(c) IMPLEMENTATION OF RECOMMENDATIONS.—If the report submitted pursuant to subsection (b) includes recommendations, the 

Bank may establish a more accurate methodology of the kind 

described in subsection (a) based on the recommendations. 

SEC. 17. PERIODIC AUDITS OF BANK TRANSACTIONS. 

(a) IN GENERAL.—Within 2 years after the date of the enactment of this Act, and periodically (but not less frequently than 

every 4 years) thereafter, the Comptroller General of the United 

States shall conduct an audit of the loan and guarantee transactions 

of the Export-Import Bank of the United States to determine the 

compliance of the Bank with the underwriting guidelines, lending 

policies, due diligence procedures, and content guidelines of the 

Bank. 

(b) REVIEW OF FRAUD CONTROLS.—The Comptroller General 

of the United States shall review the adequacy of the design and 

effectiveness of the controls used by the Export-Import Bank of 

the United States to prevent, detect, and investigate fraudulent 

applications for loans and guarantees, including by auditing a 

sample of Bank transactions, and submit to the Congress a written 

report which contains such recommendations with respect to the 

controls as the Comptroller General deems appropriate. 

Reports. 

Deadline. 

Determination. 

12 USC 635a–6. 

12 USC 635a–2 

note. 


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126 STAT. 360 PUBLIC LAW 112–122—MAY 30, 2012 

SEC. 18. PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS 

INVOLVED IN SANCTIONABLE ACTIVITIES WITH RESPECT 

TO IRAN. 

(a) PROHIBITION ON FINANCING FOR PERSONS THAT ENGAGE

IN CERTAIN SANCTIONABLE ACTIVITIES.— (1) IN GENERAL.—Beginning on the date that is 180 days 

after the date of the enactment of this Act, the Board of Directors of the Export-Import Bank of the United States may not 

approve any transaction that is subject to approval by the 

Board with respect to the provision by the Bank of any guarantee, insurance, or extension of credit, or the participation 

by the Bank in any extension of credit, to a person in connection 

with the exportation of any good or service unless the person 

makes the certification described in paragraph (2). 

(2) CERTIFICATION DESCRIBED.—The certification described 

in this paragraph is a certification by a person— 

(A) that neither the person nor any other person owned 

or controlled by the person— 

(i) engages in any activity described in section 

5(a) of the Iran Sanctions Act of 1996 (Public Law 

104–172; 50 U.S.C. 1701 note) for which the person 

may be subject to sanctions under that Act; 

(ii) exports sensitive technology, as defined in section 106 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (22 U.S.C. 8515), 

to Iran; or 

(iii) engages in any activity prohibited by part 

560 of title 31, Code of Federal Regulations (commonly 

known as the ‘‘Iranian Transactions Regulations’’), 

unless the activity is disclosed to the Office of Foreign 

Assets Control of the Department of the Treasury when 

the activity is discovered; or 

(B) if the person or any other person owned or controlled by the person has engaged in an activity described 

in subparagraph (A), that— 

(i) in the case of an activity described in subparagraph (A)(i)— 

(I) the President has waived the imposition 

of sanctions with respect to the person that 

engaged in that activity pursuant to section 4(c), 

6(b)(5), or 9(c) of the Iran Sanctions Act of 1996 

(Public Law 104–172; 50 U.S.C. 1701 note); 

(II)(aa) the President has invoked the special 

rule described in section 4(e)(3) of that Act with 

respect to the person that engaged in that activity; 

or 

(bb)(AA) the person that engaged in that 

activity determines, based on its best knowledge 

and belief, that the person meets the criteria 

described in subparagraph (A) of such section 

4(e)(3) and has provided to the President the assurances described in subparagraph (B) of that section; and 

(BB) the Secretary of State has issued an 

advisory opinion to that person that the person 

meets such criteria and has provided to the President those assurances; or 

President. 

Effective date. 

12 USC 635 note. 


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(III) the President has determined that the 

criteria have been met for the exception provided 

for under section 5(a)(3)(C) of the Iran Sanctions 

Act of 1996 to apply with respect to the person 

that engaged in that activity; or 

(ii) in the case of an activity described in subparagraph (A)(ii), the President has waived, pursuant to 

section 401(b)(1) of the Comprehensive Iran Sanctions, 

Accountability, and Divestment Act of 2010 (22 U.S.C. 

8551(b)(1)), the application of the prohibition under 

section 106(a) of that Act (22 U.S.C. 8515(a)) with 

respect to that person. 

(b) PROHIBITION ON FINANCING.—Beginning on the date that 

is 180 days after the date of the enactment of this Act, the Board 

of Directors of the Export-Import Bank of the United States may 

not approve any transaction that is subject to approval by the 

Board with respect to the provision by the Bank of any guarantee, 

insurance, or extension of credit, or the participation by the Bank 

in any extension of credit, in connection with a financing in which 

a person that is a borrower or controlling sponsor, or a person 

that is owned or controlled by such borrower or controlling sponsor, 

is subject to sanctions under section 5(a) of the Iran Sanctions 

Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note). 

(c) ADVISORY OPINIONS.— 

(1) AUTHORITY.—The Secretary of State is authorized to 

issue advisory opinions described in subsection (a)(2)(B)(i)(II). 

(2) NOTICE TO CONGRESS.—If the Secretary issues an 

advisory opinion pursuant to paragraph (1), the Secretary shall 

notify the appropriate congressional committees of the opinion 

not later than 30 days after issuing the opinion. 

(d) DEFINITIONS.—In this section: 

(1) APPROPRIATE CONGRESSIONAL COMMITTEES; PERSON.— 

The terms ‘‘appropriate congressional committees’’ and ‘‘person’’ 

have the meanings given those terms in section 14 of the 

Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 

1701 note). 

(2) CONTROLLING SPONSOR.—The term ‘‘controlling sponsor’’ 

means a person providing controlling direct private equity 

investment (excluding investments made through publicly held 

investment funds, publicly held securities, public offerings, or 

similar public market vehicles) in connection with a financing. 

SEC. 19. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION TECHNOLOGY SYSTEMS. 

Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 

635a) is amended by adding at the end the following: 

‘‘(j) AUTHORITY TO USE PORTION OF BANK SURPLUS TO UPDATE

INFORMATION TECHNOLOGY SYSTEMS.— 

‘‘(1) IN GENERAL.—Subject to paragraphs (3) and (4), the 

Bank may use an amount equal to 1.25 percent of the surplus 

of the Bank during fiscal years 2012, 2013, and 2014 to— 

‘‘(A) seek to remedy any of the operational weakness 

and risk management vulnerabilities of the Bank which 

are the result of the information technology system of 

the Bank; 

Deadline. 

Deadline. 


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126 STAT. 362 PUBLIC LAW 112–122—MAY 30, 2012 

‘‘(B) remedy data fragmentation, enhance information 

flow throughout the Bank, and manage data across the 

Bank; and 

‘‘(C) enhance the operational capacity and risk management capabilities of the Bank to better enable the Bank 

to increase exports and grow jobs while protecting the 

taxpayer. 

‘‘(2) SURPLUS.—In paragraph (1), the term ‘surplus’ means 

the amount (if any) by which— 

‘‘(A) the sum of the interest and fees collected by the 

Bank; exceeds 

‘‘(B) the sum of— 

‘‘(I) the funds set aside to cover expected losses 

on transactions financed by the Bank; and 

‘‘(ii) the costs incurred to cover the administrative 

expenses of the Bank. 

‘‘(3) LIMITATION.—The aggregate of the amounts used in 

accordance with paragraph (1) for fiscal years 2012, 2013, and 

2014 shall not exceed $20,000,000. 

‘‘(4) SUBJECT TO APPROPRIATIONS.—The authority provided 

by paragraph (1) may be exercised only to such extent and 

in such amounts as are provided in advance in appropriations 

Acts.’’. 

SEC. 20. MODIFICATIONS RELATING TO THE ADVISORY COMMITTEE. 

(a) REPRESENTATION OF THE TEXTILE INDUSTRY.—Section 

3(d)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 

635a(d)(1)(B)) is amended by striking ‘‘and State government’’ 

inserting ‘‘State government, and the textile industry’’. 

(b) ACCESS TO BANK PRODUCTS BY THE TEXTILE INDUSTRY.— (1) CONSIDERATION BY ADVISORY COMMITTEE.—Section 3(d) 

of such Act (12 U.S.C. 635a(d)) is amended by adding at the 

end the following: 

‘‘(5) In carrying out paragraph (4), the Advisory Committee 

shall consider ways to promote the financing of Bank transactions 

for the textile industry, consistent with the requirement that the 

Bank obtain a reasonable assurance of repayment, and determine 

ways to— 

‘‘(A) increase Bank support for the exports of textile components or inputs made in the United States; and 

‘‘(B) support the maintenance, promotion and expansion 

of jobs in the United States that are critical to the manufacture 

of textile components and inputs.’’. 

(2) ANNUAL REPORT TO CONGRESS ON ADVISORY COMMITTEE

DETERMINATIONS.—Section 8 of such Act (12 U.S.C. 635g), as 

amended by sections 6 and 10 of this Act, is amended by 

adding at the end the following: 

‘‘(i) ACCESS TO BANK PRODUCTS BY THE TEXTILE INDUSTRY.— The Bank shall include in its annual report to the Congress under 

subsection (a) of this section a report on the determinations made 

by the Advisory Committee under section 3(d)(5) in the year covered 

by the report.’’. 

SEC. 21. FINANCING FOR GOODS MANUFACTURED IN THE UNITED 

STATES USED IN GLOBAL TEXTILE AND APPAREL SUPPLY 

CHAINS. 

(a) ANALYSIS OF TEXTILE INDUSTRY USE OF BANK PRODUCTS.— 

The Export-Import Bank of the United States (in this section 

Study. 

Reports. 

Definition. 


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PUBLIC LAW 112–122—MAY 30, 2012 126 STAT. 363 

referred to as the ‘‘Bank’’) shall conduct a study of the extent 

to which the products offered by the Bank are available and used 

by manufacturers in the United States that export goods manufactured in the United States used as components in global textile 

and apparel supply chains. In conducting the study, the Bank 

shall examine the following: 

(1) Impediments to use of Bank products by such firms. 

(2) The number of jobs in the United States that are 

supported by the export of such component parts and the degree 

to which access to financing will increase exports. 

(3) Specific proposals for how the Bank, using its authority 

and products, could provide the financing, including through 

risk-sharing with other export credit agencies and other third 

parties. 

(4) Ways in which the Bank can take into account the 

full global textile and apparel supply chain—in particular, the 

ultimate purchase, and ultimate United States-based purchaser, of the finished good, that would result from the supply 

chain—in making credit and risk determinations and the creditworthiness of the ultimate purchaser. 

(5) Proposals for new products the Bank could offer to 

provide the financing, including— 

(A) the extent to which the Bank is authorized to 

offer new products; 

(B) the extent to which the Bank would need additional 

authority to offer the new products; and 

(C) specific proposals for changes in law that would 

enable the Bank to provide such financing in compliance 

with the credit and risk standards of the Bank. 

(b) REPORT.—Within 180 days after the date of the enactment 

of this Act, the Bank shall submit to the Congress a report that 

contains the results of the study required by subsection (a). 

(c) ANNUAL REPORTS.—Section 8 of the Export-Import Bank 

Act of 1945 (12 U.S.C. 635g), as amended by sections 6, 10, and 

20(b)(2) of this Act, is amended by adding at the end the following: 

‘‘(j) TEXTILE AND APPAREL SUPPLY CHAIN FINANCING.—The 

Bank shall include in its annual report to the Congress under 

subsection (a) of this section a description of the success of the 

Bank in providing effective and reasonably priced financing to the 

United States textile and apparel industry for exports of goods 

manufactured in the United States that are used as components 

in global textile and apparel supply chains in the year covered 

by the report, and steps the Bank has taken to increase the use 

of Bank products by such firms.’’. 

SEC. 22. TECHNICAL CORRECTION. 

Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of 1945 

(12 U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclauses (I), 

(IV), and (VII) and by redesignating subclauses (II), (III), (V), (VI), 

(VIII), and (IX) as subclauses (I) through (VI), respectively. 

SEC. 23. SUB-SAHARAN AFRICA ADVISORY COMMITTEE. 

Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 

(12 U.S.C. 635(b)(9)(B)(iii)) is amended by striking ‘‘2011’’ and 

inserting ‘‘2014’’. 


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126 STAT. 364 PUBLIC LAW 112–122—MAY 30, 2012 

LEGISLATIVE HISTORY—H.R. 2072: 

HOUSE REPORTS: No. 112–201 (Comm. on Financial Services). 

CONGRESSIONAL RECORD, Vol. 158 (2012): 

May 9, considered and passed House. 

May 15, considered and passed Senate. 

DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012): 

May 30, Presidential remarks. 

Æ 

SEC. 24. DUAL USE EXPORTS. 

Section 4 of Public Law 109–438 (12 U.S.C. 635 note; 108 

Stat. 4376) is amended by striking ‘‘2011’’ and inserting ‘‘2014’’. 

SEC. 25. EFFECTIVE DATE. 

Except as provided in section 9(b), this Act and the amendments 

made by this Act shall take effect on the earlier of June 1, 2012, 

or the date of the enactment of this Act. 

Approved May 30, 2012. 

12 USC 635 note. 


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