II

103D CONGRESS

1ST SESSION S. 1264

To amend the Foreign Assistance Act of 1961 to authorize the Overseas

Private Investment Corporation to issue loan guarantees for development

projects in Ireland.

IN THE SENATE OF THE UNITED STATES

JULY 20 (legislative day, JUNE 30), 1993

Mr. D’AMATO introduced the following bill; which was read twice and referred

to the Committee on Foreign Relations

A BILL

To amend the Foreign Assistance Act of 1961 to authorize

the Overseas Private Investment Corporation to issue

loan guarantees for development projects in Ireland.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. GUARANTEED LENDING PROGRAM FOR IRISH

4 DEVELOPMENT.

5 The Foreign Assistance Act of 1961 is amended by

6 inserting after section 231A (22 U.S.C. 2191a) the follow7 ing new section:
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1 ‘‘SEC. 231B. GUARANTEED LENDING PROGRAM FOR IRISH

2 DEVELOPMENT.

3 ‘‘(a) PURPOSES.—The purposes of this section are—

4 ‘‘(1) to create more employment opportunities

5 in the United States and Ireland; and

6 ‘‘(2) to increase United States exports to, and

7 the United States trade surplus with, the European

8 Community.

9 ‘‘(b) AUTHORITY.—During the period beginning on

10 the date of enactment of this Act, and ending on Septem11 ber 30, 1995, the Overseas Private Investment Corpora12 tion (hereafter in this section referred to as the ‘Corpora13 tion’) shall, consistent with the purposes of subsection (a),

14 issue guarantees against losses incurred in connection

15 with loans to United States firms for the establishment

16 or maintenance of low-cost, financially viable distribution

17 facilities in Ireland that utilize United States manufac18 tured products and components.

19 ‘‘(c) TERMS AND CONDITIONS OF LOAN GUARAN20 TEES.—

21 ‘‘(1) The total principal amount of guarantees

22 which may be issued by the Corporation under this

23 section shall not exceed $200,000,000. The total

24 amount of guarantees authorized under this section

25 shall be made available during the period from the

26 date of enactment of this Act through September 30,
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1 1995, except that, in the event that less than

2 $200,000,000 of guarantees is issued in such period,

3 the authority to issue the balance of such guarantees

4 shall be available in the fiscal year ending on Sep5 tember 30, 1995. Each guarantee issued by the Cor6 poration under this section shall guarantee 100 per7 cent of the principal and interest payable on such

8 loans.

9 ‘‘(2) Guarantees, once issued by the Corpora10 tion hereunder, shall be unconditional and fully and

11 freely transferable.

12 ‘‘(3) The standard terms of any loan or incre13 ment guaranteed by the Corporation under this sec14 tion shall be 30 years, with semiannual payments of

15 interest only over the first 10 years, and with semi16 annual payments of principal and interest, on a

17 level-payment basis, over the last 20 years thereof,

18 except that the guaranteed loan or any increments

19 issued in a single transaction may include obliga20 tions having different maturities, interest rates, and

21 payment terms if the aggregate scheduled debt serv22 ice for all obligations issued in a single transaction

23 equals the debt service for a single loan or increment

24 of like amount having the standard terms described

25 in this sentence. For purposes of determining the
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1 maximum principal amount of any loan to be guar2 anteed under this section, the principal amount of

3 each such loan shall be—

4 ‘‘(A) in the case of any loan issued on a

5 discount basis, the original issue price (exclud6 ing any transaction costs) thereof; or

7 ‘‘(B) in the case of any loan issued on an

8 interest-bearing basis, the stated principal

9 amount thereof.

10 ‘‘(d) FEES.—(1) Reasonable origination or scoring

11 charges for the loan guarantee program under this section

12 are to be paid pro rata as each guarantee or increment

13 of guarantee is issued. Such charges may be financed as

14 part of the loans or increments guaranteed under this sec15 tion. Except for the charges provided in this section, no

16 other fees or charges shall be payable to the Corporation

17 in connection with the loan guarantee program.

18 ‘‘(2) Paragraph (1) does not in any way preclude the

19 voluntary participation of eligible investors in any other

20 OPIC program which may or may not require the payment

21 of charges.

22 ‘‘(e) NONAPPLICABILITY OF OTHER LAWS.—The

23 loan guarantees authorized to be issued under this section

24 may be made available under the terms and conditions

25 specified in this section notwithstanding any other provi-
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1 sion of law, rule, regulation, or practice, except for the

2 Federal Credit Reform Act of 1990.

3 ‘‘(f) SUBJECT TO APPROPRIATIONS.—The authority

4 to issue loan guarantees under this section may be exer5 cised only to such extent or in such amounts as are pro6 vided in advance in appropriation Acts. Appropriations

7 made pursuant to such authority are authorized to remain

8 available during the period beginning on the date of enact9 ment of this Act, and ending September 30, 1995.

10 ‘‘(g) SAVINGS PROVISION.—The termination of the

11 authorities of this section on September 30, 1995, shall

12 not affect any guarantee issued before such date.’’.

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