I

103D CONGRESS

1ST SESSION H. R. 2969

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 HOUSE OF REPRESENTATIVES

AUGUST 6, 1993

Mr. MANTON introduced the following bill; which was referred to the

Committee on Foreign Affairs

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 section, and ending on Sep11 tember 30, 1995, the Overseas Private Investment Cor12 poration (hereafter in this section referred to as the ‘Cor13 poration’) shall, consistent with the purposes of subsection

14 (a), 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.—(1) The total principal amount of guarantees

21 which may be issued by the Corporation under this section

22 shall not exceed $200,000,000. The total amount of guar23 antees authorized under this section shall be made avail24 able during the period from the date of enactment of this

25 section through September 30, 1995, except that, in the

26 event that less than $200,000,000 of guarantees is issued
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1 in such period, the authority to issue the balance of such

2 guarantees shall be available in the fiscal year ending on

3 September 30, 1995. Each guarantee issued by the Cor4 poration under this section shall guarantee 100 percent

5 of the principal and interest payable on such loans.

6 ‘‘(2) Guarantees, once issued by the Corporation

7 hereunder, shall be unconditional and fully and freely

8 transferable.

9 ‘‘(3) The standard terms of any loan or increment

10 guaranteed by the Corporation under this section shall be

11 30 years, with semiannual payments of interest only over

12 the first 10 years, and with semiannual payments of prin13 cipal and interest, on a level-payment basis, over the last

14 20 years thereof, except that the guaranteed loan or any

15 increments issued in a single transaction may include obli16 gations having different maturities, interest rates, and

17 payment terms if the aggregate scheduled debt service for

18 all obligations issued in a single transaction equals the

19 debt service for a single loan or increment of like amount

20 having the standard terms described in this sentence. For

21 purposes of determining the maximum principal amount

22 of any loan to be guaranteed under this section, the prin23 cipal amount of each such loan shall be—
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1 ‘‘(A) in the case of any loan issued on a dis2 count basis, the original issue price (excluding any

3 transaction costs) thereof; or

4 ‘‘(B) in the case of any loan issued on an inter5 est-bearing basis, the stated principal amount there6 of.

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

8 charges for the loan guarantee program under this section

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

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

11 part of the loans or increments guaranteed under this sec12 tion. Except for the charges provided in this section, no

13 other fees or charges shall be payable to the Corporation

14 in connection with the loan guarantee program.

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

16 voluntary participation of eligible investors in any other

17 OPIC program which may or may not require the payment

18 of charges.

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

20 loan guarantees authorized to be issued under this section

21 may be made available under the terms and conditions

22 specified in this section notwithstanding any other provi23 sion of law, rule, regulation, or practice, except for the

24 Federal Credit Reform Act of 1990.
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1 ‘‘(f) SUBJECT TO APPROPRIATIONS.—The authority

2 to issue loan guarantees under this section may be exer3 cised only to such extent or in such amounts as are pro4 vided in advance in appropriation Acts. Appropriations

5 made pursuant to such authority are authorized to remain

6 available during the period beginning on the date of enact7 ment of this Act, and ending September 30, 1995.

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

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

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

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