II 

Calendar No. 396 

112TH CONGRESS 

2D SESSION H. R. 2072 

IN THE SENATE OF THE UNITED STATES 

MAY 9, 2012 

Received; read twice and placed on the calendar 

AN ACT 

To reauthorize the Export-Import Bank of the United States, 

and for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Export-Import Bank Reauthorization Act of 2012’’. 

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

7 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. 


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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. 

1 SEC. 2. EXTENSION OF AUTHORITY. 

2 Section 7 of the Export-Import Bank Act of 1945 

3 (12 U.S.C. 635f) is amended by striking ‘‘2011’’ and in4 serting ‘‘2014’’. 

5 SEC. 3. LIMITATIONS ON OUTSTANDING LOANS, GUARAN6 TEES, AND INSURANCE. 

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

8 1945 (12 U.S.C. 635e(a)(2)) is amended— 

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

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

11 at the end and inserting ‘‘; and’’; and 

12 (3) by adding at the end the following: 


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1 ‘‘(F) during fiscal year 2012 and each suc2 ceeding fiscal year, $120,000,000,000, except 

3 that— 

4 ‘‘(i) the applicable amount for each of 

5 fiscal years 2013 and 2014 shall be 

6 $130,000,000,000 if— 

7 ‘‘(I) the Bank has submitted a 

8 report as required by section 4(a) of 

9 the Export-Import Bank Reauthoriza10 tion Act of 2012; and 

11 ‘‘(II) the rate calculated under 

12 section 8(g)(1) of this Act is less than 

13 2 percent for the quarter ending with 

14 the beginning of the fiscal year, or for 

15 any quarter in the fiscal year; and 

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

17 applicable amount for fiscal year 2014 

18 shall be $140,000,000,000 if— 

19 ‘‘(I) the rate calculated under 

20 section 8(g)(1) of this Act is less than 

21 2 percent for the quarter ending with 

22 the beginning of the fiscal year, or for 

23 any quarter in the fiscal year; 

24 ‘‘(II) the Bank has submitted a 

25 report as required by subsection (b) of 


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1 section 5 of the Export-Import Bank 

2 Reauthorization Act of 2012, except 

3 that the preceding provisions of this 

4 subclause shall not apply if the Comp5 troller General has not submitted the 

6 report required by subsection (a) of 

7 such section 5 on or before July 1, 

8 2013; and 

9 ‘‘(III) the Secretary of the Treas10 ury has submitted the reports re11 quired by section 11(b) of the Export12 Import Bank Reauthorization Act of 

13 2012.’’. 

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

15 PLAN. 

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

17 2012, the Export-Import Bank of the United States shall 

18 submit to the Congress and the Comptroller General a 

19 written report that contains the following: 

20 (1) A business plan that— 

21 (A) includes an estimate by the Bank of 

22 the appropriate exposure limits of the Bank for 

23 2012, 2013, and 2014; 

24 (B) justifies the estimate; and 


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1 (C) estimates any anticipated growth of 

2 the Bank for 2012, 2013, and 2014— 

3 (i) by industry sector; 

4 (ii) by whether the products involved 

5 are short-term loans, medium-term loans, 

6 long-term loans, insurance, medium-term 

7 guarantees, or long-term guarantees; and 

8 (iii) by key market. 

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

10 decreased risk of loss to the Bank as a result of the 

11 estimated exposure limit, including an analysis of in12 creased or decreased risks associated with changes 

13 in the composition of Bank exposure, by industry 

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

15 (3) An analysis of the ability of the Bank to 

16 meet its small business and sub-Saharan Africa 

17 mandates and comply with its carbon policy mandate 

18 under the proposed exposure limit, and an analysis 

19 of any increased or decreased risk of loss associated 

20 with meeting or complying with the mandates under 

21 the proposed exposure limit. 

22 (4) An analysis of the adequacy of the re23 sources of the Bank to effectively process, approve, 

24 and monitor authorizations, including the conducting 


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1 of required economic impact analysis, under the pro2 posed exposure limit. 

3 (b) GAO REVIEW OF REPORT AND BUSINESS

4 PLAN.—Not later than June 1, 2013, the Comptroller 

5 General shall submit to the Congress a written analysis 

6 of the report and business plan submitted under sub7 section (a), which shall include such recommendations 

8 with respect to the report and business plan as the Comp9 troller General deems appropriate. 

10 SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE 

11 ROLE OF THE BANK IN THE WORLD ECON12 OMY AND THE BANK’S RISK MANAGEMENT. 

13 (a) IN GENERAL.—Within 10 months after the date 

14 of the enactment of this Act, the Comptroller General of 

15 the United States shall complete and submit to the Ex16 port-Import Bank of the United States, the Committee on 

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

18 the Committee on Financial Services of the House of Rep19 resentatives a report which— 

20 (1) evaluates— 

21 (A) the history of the rate of growth of the 

22 Bank, and its causes, with specific consider23 ation given to— 

24 (i) the capital market conditions for 

25 export financing; 


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1 (ii) increased competition from foreign 

2 export credit agencies; 

3 (iii) the rate of growth of the Bank 

4 from 2008 to the present; 

5 (B) the effectiveness of the Bank’s risk 

6 management, including— 

7 (i) potential for losses from each of 

8 the products offered by the Bank; and 

9 (ii) the overall risk of the Bank’s 

10 portfolio, taking into account— 

11 (I) market risk; 

12 (II) credit risk; 

13 (III) political risk; 

14 (IV) industry-concentration risk; 

15 (V) geographic-concentration 

16 risk; 

17 (VI) obligor-concentration risk; 

18 and 

19 (VII) foreign-currency risk; 

20 (C) the Bank’s use of historical default 

21 and recovery rates to calculate future program 

22 costs, taking into consideration cost estimates 

23 determined under the Federal Credit Reform 

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


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1 discount rates applied to cost estimates should 

2 reflect the risks described in subparagraph (B); 

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

4 products the Bank offers, whether the Bank’s 

5 fees properly reflect the risks described in sub6 paragraph (B), and how the fees are affected by 

7 United States participation in international 

8 agreements; and 

9 (E) whether the Bank’s loan loss reserves 

10 policy is sufficient to cover the risks described 

11 in subparagraph (B); and 

12 (2) makes appropriate recommendations with 

13 respect to the matters so evaluated. 

14 (b) RECOMMENDATIONS AND REPORT BY THE

15 BANK.—Not later than 120 days after the Bank receives 

16 the report, the Bank shall submit to the Congress a report 

17 on the implementation of recommendations included in the 

18 report so received. If the Bank does not adopt the rec19 ommendations, the Bank shall include in its report an ex20 planation of why the Bank has not done so. 


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1 SEC. 6. MONITORING OF DEFAULT RATES ON BANK FI2 NANCING; REPORTS ON DEFAULT RATES; 

3 SAFETY AND SOUNDNESS REVIEW. 

4 Section 8 of the Export-Import Bank Act of 1945 

5 (12 U.S.C. 635g) is amended by adding at the end the 

6 following: 

7 ‘‘(g) MONITORING OF DEFAULT RATES ON BANK FI8 NANCING; REPORTS ON DEFAULT RATES; SAFETY AND

9 SOUNDNESS REVIEW.— 

10 ‘‘(1) MONITORING OF DEFAULT RATES.—Not 

11 less frequently than quarterly, the Bank shall cal12 culate the rate at which the entities to which the 

13 Bank has provided short-, medium-, or long-term fi14 nancing are in default on a payment obligation 

15 under the financing, by dividing the total amount of 

16 the required payments that are overdue by the total 

17 amount of the financing involved. 

18 ‘‘(2) ADDITIONAL CALCULATION BY TYPE OF

19 PRODUCT, BY KEY MARKET, AND BY INDUSTRY SEC20 TOR; REPORT TO CONGRESS.—In addition, the Bank 

21 shall, not less frequently than quarterly— 

22 ‘‘(A) calculate the rate of default— 

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1 ance, medium-term guarantees, or long2 term guarantees; 

3 ‘‘(ii) with respect to each key market 

4 involved; and 

5 ‘‘(iii) with respect to each industry 

6 sector involved; and 

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

8 Housing, and Urban Affairs of the Senate and 

9 the Committee on Financial Services of the 

10 House of Representatives a report on each such 

11 rate and any information the Bank deems rel12 evant. 

13 ‘‘(3) REPORT ON CAUSES OF DEFAULT RATE; 

14 PLAN TO REDUCE DEFAULT RATE.—Within 45 days 

15 after a rate calculated under paragraph (1) equals 

16 or exceeds 2 percent, the Bank shall submit to the 

17 Congress a written report that explains the cir18 cumstances that have caused the default rate to be 

19 at least 2 percent, and includes a plan to reduce the 

20 default rate to less than 2 percent. 

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

22 paragraph (3) shall— 

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

24 processes and controls by which the Bank mon25 itors and tracks outstanding loans; 


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1 ‘‘(B) detail specific planned actions, includ2 ing a time frame for completing the actions, to 

3 reduce the default rate described in paragraph 

4 (1) to less than 2 percent. 

5 ‘‘(5) MONTHLY REPORTS REQUIRED WHILE DE6 FAULT RATE IS AT LEAST 2 PERCENT.—For so long 

7 as the default rate calculated under paragraph (1) 

8 is at least 2 percent, the Bank shall submit monthly 

9 reports to the Congress describing the specific ac10 tions taken during such period to reduce the default 

11 rate. 

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

13 default rate calculated under paragraph (1) remains 

14 above 2 percent for a period of 6 months, the Sec15 retary of the Treasury shall provide for an inde16 pendent third party to— 

17 ‘‘(A) conduct a review of the loan pro18 grams and funds of the Bank, which shall de19 termine— 

20 ‘‘(i) the financial safety and sound21 ness of the programs and funds; and 

22 ‘‘(ii) the extent of loan loss reserves 

23 and capital adequacy of the programs and 

24 funds; and 


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1 ‘‘(B) submit to the Secretary, within 60 

2 days after the end of the 6-month period, a re3 port that— 

4 ‘‘(i) describes the methodology and 

5 standards used to conduct the review re6 quired by subparagraph (A); 

7 ‘‘(ii) sets forth the results and find8 ings of the review, including the extent of 

9 loan loss reserves and capital adequacy of 

10 the programs and funds of the Bank; and 

11 ‘‘(iii) includes recommendations re12 garding restoring the reserves and capital 

13 to maintain the programs and funds in a 

14 safe and sound condition.’’. 

15 SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILI16 GENCE STANDARDS FOR LENDER PARTNERS. 

17 Section 2 of the Export-Import Bank Act of 1945 

18 (12 U.S.C. 635) is amended by adding at the end the fol19 lowing: 

20 ‘‘(i) DUE DILIGENCE STANDARDS FOR LENDER

21 PARTNERS.—The Bank shall set due diligence standards 

22 for its lender partners and participants, which should be 

23 applied across all programs consistently. To minimize or 

24 prevent fraudulent activity, the Bank should require all 


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1 delegated lenders to implement ‘Know your customer prac2 tices’.’’. 

3 SEC. 8. NON-SUBORDINATION REQUIREMENT. 

4 Section 2 of the Export-Import Bank Act of 1945 

5 (12 U.S.C. 635), as amended by section 7 of this Act, 

6 is amended by adding at the end the following: 

7 ‘‘(j) NON-SUBORDINATION REQUIREMENT.—In en8 tering into financing contracts, the Bank shall seek a cred9 itor status which is not subordinate to that of all other 

10 creditors, in order to reduce the risk to, and enhance re11 coveries for, the Bank.’’. 

12 SEC. 9. NOTICE AND COMMENT FOR BANK TRANSACTIONS 

13 EXCEEDING $100,000,000. 

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

15 Bank Act of 1945 (12 U.S.C. 635a(c)) is amended by add16 ing at the end the following: 

17 ‘‘(10) NOTICE AND COMMENT REQUIRE18 MENTS.— 

19 ‘‘(A) IN GENERAL.—Before any meeting of 

20 the Board for final consideration of a long-term 

21 transaction the value of which exceeds 

22 $100,000,000, and concurrent with any state23 ment required to be submitted under section 

24 2(b)(3) with respect to the transaction, the 


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1 Bank shall provide a notice and comment pe2 riod. 

3 ‘‘(B) FINANCIAL THRESHOLD DETERMINA4 TIONS.—For purposes of determining whether 

5 the value of a proposed transaction exceeds the 

6 financial threshold set forth in subparagraph 

7 (A), the Bank shall aggregate the dollar 

8 amount of the proposed transaction and the 

9 dollar amounts of all long-term loans and guar10 antees, approved by the Bank in the preceding 

11 12-month period, that involved the same foreign 

12 entity and substantially the same product to be 

13 produced. 

14 ‘‘(C) SPECIFIC REQUIREMENTS.— 

15 ‘‘(i) IN GENERAL.—The Bank shall— 

16 ‘‘(I) publish in the Federal Reg17 ister a notice of the application pro18 posing the transaction; 

19 ‘‘(II) provide a period of not less 

20 than 25 days for the submission to 

21 the Bank of comments on the applica22 tion; and 

23 ‘‘(III) notify the Committee on 

24 Banking, Housing, and Urban Affairs 

25 of the Senate, and the Committee on 


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1 Financial Services of the House of 

2 Representatives of the application, 

3 and seek comments on the application 

4 from the Department of Commerce 

5 and the Office of Management and 

6 Budget. 

7 ‘‘(ii) CONTENT OF NOTICE.—The no8 tice published under clause (i)(I) with re9 spect to an application for a loan or finan10 cial guarantee shall include appropriate in11 formation about— 

12 ‘‘(I) a brief non-proprietary de13 scription of the purposes of the trans14 action and the anticipated use of any 

15 item being exported, including, to the 

16 extent the Bank is reasonably aware, 

17 whether the item may be used to 

18 produce exports or provide services in 

19 competition with the exportation of 

20 goods or the provision of services by a 

21 United States industry; 

22 ‘‘(II) the identities of the obligor, 

23 principal supplier, and guarantor; and 

24 ‘‘(III) a description, such as type 

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1 spect to which Bank financing is 

2 being sought, but only to the extent 

3 the description does not disclose any 

4 information that is confidential or 

5 proprietary business information, that 

6 would violate the Trade Secrets Act, 

7 or that would jeopardize jobs in the 

8 United States by supplying informa9 tion which competitors could use to 

10 compete with companies in the United 

11 States. 

12 ‘‘(D) PROCEDURE REGARDING MATERI13 ALLY CHANGED APPLICATIONS.— 

14 ‘‘(i) IN GENERAL.—If a material 

15 change is made to an application to which 

16 this paragraph applies, after a notice with 

17 respect to the application is published 

18 under subparagraph (C)(i)(I), the Bank 

19 shall publish in the Federal Register a re20 vised notice of the application and provide 

21 for an additional comment period as pro22 vided in subparagraph (C)(i)(II). 

23 ‘‘(ii) MATERIAL CHANGE DEFINED.— 

24 In clause (i), the term ‘material change’, 

25 with respect to an application for a loan or 


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1 guarantee, includes an increase of at least 

2 25 percent in the amount of a loan or 

3 guarantee requested in the application. 

4 ‘‘(E) REQUIREMENT TO ADDRESS VIEWS

5 OF COMMENTERS.—Before taking final action 

6 on an application to which this paragraph ap7 plies, the staff of the Bank shall provide in 

8 writing to the Board of Directors the views of 

9 any person who submitted comments on the ap10 plication pursuant to this paragraph. 

11 ‘‘(F) PUBLICATION OF CONCLUSIONS.— 

12 Within 30 days after a final decision of the 

13 Board of Directors with respect to an applica14 tion to which this paragraph applies, the Bank 

15 shall provide to a commenter on the application 

16 or the decision who makes a request therefor, 

17 a non-confidential summary of the facts found 

18 and conclusions reached in any detailed analysis 

19 or similar study with respect to the loan or 

20 guarantee that is the subject of the application, 

21 that was submitted to the Board of Directors. 

22 Such summary should be sent within 30 days of 

23 the receipt of the written request or date of the 

24 final decision of the Board of Directors, which25 ever is later. 


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1 ‘‘(G) RULE OF INTERPRETATION.—The 

2 obligations imposed by this paragraph shall not 

3 be interpreted to create, modify, or preclude 

4 any legal right of action.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by 

6 subsection (a) shall take effect 60 days after the date of 

7 the enactment of this Act. 

8 SEC. 10. CATEGORIZATION OF PURPOSE OF LOANS AND 

9 LONG-TERM GUARANTEES IN ANNUAL RE10 PORT. 

11 Section 8 of the Export-Import Bank Act of 1945 

12 (12 U.S.C. 635g), as amended by section 6 of this Act, 

13 is amended by adding at the end the following: 

14 ‘‘(h) CATEGORIZATION OF PURPOSE OF LOANS AND

15 LONG-TERM GUARANTEES.—In the annual report of the 

16 Bank under subsection (a), the Bank shall categorize each 

17 loan and long-term guarantee made by the Bank in the 

18 fiscal year covered by the report, and according to the fol19 lowing purposes: 

20 ‘‘(1) ‘To assume commercial or political risk 

21 that exporter or private financial institutions are un22 willing or unable to undertake’. 

23 ‘‘(2) ‘To overcome maturity or other limitations 

24 in private sector export financing’. 


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1 ‘‘(3) ‘To meet competition from a foreign, offi2 cially sponsored, export credit competition’. 

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

4 purpose is not identified.’’. 

5 SEC. 11. NEGOTIATIONS TO END EXPORT CREDIT FINANC6 ING. 

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

8 this section referred to as the ‘‘Secretary’’) shall initiate 

9 and pursue negotiations— 

10 (1) with other major exporting countries, in11 cluding members of the Organisation for Economic 

12 Co-operation and Development (OECD) and non13 OECD members, to substantially reduce, with the 

14 ultimate goal of eliminating, subsidized export fi15 nancing programs and other forms of export sub16 sidies; and 

17 (2) with all countries that finance air carrier 

18 aircraft with funds from a state-sponsored entity, to 

19 substantially reduce, with the ultimate goal of elimi20 nating, aircraft export credit financing for all air21 craft covered by the 2007 Sector Understanding on 

22 Export Credits for Civil Aircraft (in this section re23 ferred to as the ‘‘ASU’’), including any modification 

24 thereof, and all of the following types of aircraft: 


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1 (A) Heavy aircraft that are capable of a 

2 takeoff weight of 300,000 pounds or more, 

3 whether or not operating at such a weight dur4 ing a particular phase of flight. 

5 (B) Large aircraft that are capable of a 

6 takeoff weight of more than 41,000 pounds, 

7 and have a maximum certificated takeoff weight 

8 of not more than 300,000 pounds. 

9 (C) Small aircraft that have a maximum 

10 certificated takeoff weight of 41,000 pounds or 

11 less. 

12 (b) ANNUAL REPORTS ON PROGRESS OF NEGOTIA13 TIONS.—Not later than 180 days after the date of the en14 actment of this Act, and annually thereafter, the Secretary 

15 shall submit to the Committee on Banking, Housing, and 

16 Urban Affairs of the Senate and the Committee on Finan17 cial Services of the House of Representatives— 

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

19 described in subsection (a)(1), until the Secretary 

20 certifies in writing to the committees that all coun21 tries that support subsidized export financing pro22 grams have agreed to end the support; and 

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

24 described in subsection (a)(2), including the progress 

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1 tion of aircraft set forth in subsection (a)(2), until 

2 the Secretary certifies in writing to the committees 

3 that all countries that support subsidized export fi4 nancing programs have agreed to end the support of 

5 aircraft covered by the ASU. 

6 SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IM7 PACT ANALYSES AND DOCUMENTATION OF 

8 SUCH ANALYSES. 

9 (a) PUBLICATION OF GUIDELINES.—Not later than 

10 180 days after the date of the enactment of this Act, the 

11 Export-Import Bank of the United States shall develop 

12 and make publicly available methodological guidelines to 

13 be used by the Bank in conducting economic impact anal14 yses or similar studies under section 2(e) of the Export15 Import Bank Act of 1945. In developing the guidelines, 

16 the Bank shall take into consideration any relevant guid17 ance from the Office of Management and Budget. 

18 (b) MAINTENANCE OF DOCUMENTATION.—Section 

19 2(e)(7) of the Export-Import Bank Act of 1945 (12 

20 U.S.C. 635(e)(7)) is amended by redesignating subpara21 graphs (E) and (F) as subparagraphs (F) and (G), respec22 tively, and inserting after subparagraph (D) the following: 

23 ‘‘(E) MAINTENANCE OF DOCUMENTA24 TION.—The Bank shall maintain documentation 

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1 lar studies conducted under this subsection in a 

2 manner consistent with the Standards for Inter3 nal Control of the Federal Government issued 

4 by the Comptroller General of the United 

5 States.’’. 

6 SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDA7 TIONS OF THE GOVERNMENT ACCOUNT8 ABILITY OFFICE. 

9 Not later than 180 days after the date of the enact10 ment of this Act, the Export-Import Bank of the United 

11 States shall submit to the Committee on Banking, Hous12 ing, and Urban Affairs of the Senate and the Committee 

13 on Financial Services of the House of Representatives a 

14 report on the implementation or rejection by the Bank of 

15 the recommendations contained in the report of the Gov16 ernment Accountability Office entitled ‘‘Export-Import 

17 Bank: Improvements Needed in Assessment of Economic 

18 Impact’’, dated September 12, 2007 (GAO–07–1071), 

19 that includes— 

20 (1) a detailed description of the progress made 

21 in implementing each such recommendation; and 

22 (2) for any such recommendation that has not 

23 yet been implemented, an explanation of the reasons 

24 the recommendation has not been implemented. 


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1 SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL 

2 BUSINESS. 

3 Within 180 days after the date of the enactment of 

4 this Act, the Export-Import Bank of the United States 

5 shall examine and report to Congress on its current pro6 grams, products, and polices with respect to the implemen7 tation of its export credit insurance program, delegated 

8 lending authority, and direct loans, and any other pro9 grams, products, and policies established to support ex10 ports from small businesses in the United States, and de11 termine the extent to which those policies adequately meet 

12 the needs of the small businesses in obtaining Bank fi13 nancing to support the maintenance or creation of jobs 

14 in the United States through exports, consistent with the 

15 requirement that the Bank obtain a reasonable assurance 

16 of repayment. 

17 SEC. 15. REVIEW AND REPORT ON DOMESTIC CONTENT 

18 POLICY. 

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

20 United States shall conduct a review of its domestic con21 tent policy for medium- and long-term transactions. The 

22 review shall examine and evaluate the effectiveness of the 

23 Bank’s policy— 

24 (1) in maintaining and creating jobs in the 

25 United States; and 


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1 (2) in contributing to a stronger national econ2 omy through the export of goods and services. 

3 (b) FACTORS TO CONSIDER.—In conducting the re4 view under subsection (a), the Bank shall consider the fol5 lowing: 

6 (1) Whether the domestic content policy accu7 rately captures the costs of United States production 

8 of goods and services, including the direct and indi9 rect costs of manufacturing costs, parts, compo10 nents, materials and supplies, research, planning en11 gineering, design, development, production, return 

12 on investment, marketing and other business costs 

13 and the effect of such policy on the maintenance and 

14 creation of jobs in the United States. 

15 (2) The ability of the Bank to provide financing 

16 that is competitive with the financing provided by 

17 foreign export credit agencies and the impact that 

18 such financing has in enabling companies with oper19 ations in the United States to contribute to a 

20 stronger United States economy by increasing em21 ployment through the export of goods and services. 

22 (3) The effects of the domestic content policy 

23 on the manufacturing and service workforce of the 

24 United States. 


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1 (4) Any recommendations the members of the 

2 Bank’s Advisory Committee have regarding the 

3 Bank’s domestic content policy. 

4 (5) The effect that changes to the Bank’s do5 mestic content requirements would have in providing 

6 companies an incentive to create and maintain oper7 ations in the United States and to increase jobs in 

8 the United States. 

9 (c) REPORT.—Not later than 1 year after the date 

10 of the enactment of this Act, the Bank shall submit a re11 port on the results of the review conducted under this sec12 tion to the Committee on Banking, Housing, and Urban 

13 Affairs of the Senate, and the Committee on Financial 

14 Services of the House of Representatives. 

15 SEC. 16. IMPROVEMENT OF METHOD FOR CALCULATING 

16 THE EFFECTS OF BANK FINANCING ON JOB 

17 CREATION AND MAINTENANCE IN THE 

18 UNITED STATES. 

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

20 United States shall conduct a study of the process and 

21 methodology used by the Export-Import Bank of the 

22 United States (in this section referred to as the ‘‘Bank’’) 

23 to calculate the effects of the provision of financing by 

24 the Bank on the creation and maintenance of employment 

25 in the United States, determine and assess the basis on 


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1 which the Bank has so used the methodology, and make 

2 any recommendations the Comptroller General deems ap3 propriate. 

4 (b) REPORT.—Within 1 year after the date of the en5 actment of this Act, the Comptroller General shall submit 

6 to the Congress and the Bank the results of the study 

7 required by subsection (a). 

8 (c) IMPLEMENTATION OF RECOMMENDATIONS.—If 

9 the report submitted pursuant to subsection (b) includes 

10 recommendations, the Bank may establish a more accu11 rate methodology of the kind described in subsection (a) 

12 based on the recommendations. 

13 SEC. 17. PERIODIC AUDITS OF BANK TRANSACTIONS. 

14 (a) IN GENERAL.—Within 2 years after the date of 

15 the enactment of this Act, and periodically (but not less 

16 frequently than every 4 years) thereafter, the Comptroller 

17 General of the United States shall conduct an audit of 

18 the loan and guarantee transactions of the Export-Import 

19 Bank of the United States to determine the compliance 

20 of the Bank with the underwriting guidelines, lending poli21 cies, due diligence procedures, and content guidelines of 

22 the Bank. 

23 (b) REVIEW OF FRAUD CONTROLS.—The Comp24 troller General of the United States shall review the ade25 quacy of the design and effectiveness of the controls used 


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1 by the Export-Import Bank of the United States to pre2 vent, detect, and investigate fraudulent applications for 

3 loans and guarantees, including by auditing a sample of 

4 Bank transactions, and submit to the Congress a written 

5 report which contains such recommendations with respect 

6 to the controls as the Comptroller General deems appro7 priate. 

8 SEC. 18. PROHIBITIONS ON FINANCING FOR CERTAIN PER9 SONS INVOLVED IN SANCTIONABLE ACTIVI10 TIES WITH RESPECT TO IRAN. 

11 (a) PROHIBITION ON FINANCING FOR PERSONS

12 THAT ENGAGE IN CERTAIN SANCTIONABLE ACTIVI13 TIES.— 

14 (1) IN GENERAL.—Beginning on the date that 

15 is 180 days after the date of the enactment of this 

16 Act, the Board of Directors of the Export-Import 

17 Bank of the United States may not approve any 

18 transaction that is subject to approval by the Board 

19 with respect to the provision by the Bank of any 

20 guarantee, insurance, or extension of credit, or the 

21 participation by the Bank in any extension of credit, 

22 to a person in connection with the exportation of any 

23 good or service unless the person makes the certifi24 cation described in paragraph (2). 


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1 (2) CERTIFICATION DESCRIBED.—The certifi2 cation described in this paragraph is a certification 

3 by a person— 

4 (A) that neither the person nor any other 

5 person owned or controlled by the person— 

6 (i) engages in any activity described 

7 in section 5(a) of the Iran Sanctions Act 

8 of 1996 (Public Law 104–172; 50 U.S.C. 

9 1701 note) for which the person may be 

10 subject to sanctions under that Act; 

11 (ii) exports sensitive technology, as 

12 defined in section 106 of the Comprehen13 sive Iran Sanctions, Accountability, and 

14 Divestment Act of 2010 (22 U.S.C. 8515), 

15 to Iran; or 

16 (iii) engages in any activity prohibited 

17 by part 560 of title 31, Code of Federal 

18 Regulations (commonly known as the ‘‘Ira19 nian Transactions Regulations’’), unless 

20 the activity is disclosed to the Office of 

21 Foreign Assets Control of the Department 

22 of the Treasury when the activity is discov23 ered; or 

24 (B) if the person or any other person 

25 owned or controlled by the person has engaged 


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1 in an activity described in subparagraph (A), 

2 that— 

3 (i) in the case of an activity described 

4 in subparagraph (A)(i)— 

5 (I) the President has waived the 

6 imposition of sanctions with respect to 

7 the person that engaged in that activ8 ity pursuant to section 4(c), 6(b)(5), 

9 or 9(c) of the Iran Sanctions Act of 

10 1996 (Public Law 104–172; 50 

11 U.S.C. 1701 note); 

12 (II)(aa) the President has in13 voked the special rule described in 

14 section 4(e)(3) of that Act with re15 spect to the person that engaged in 

16 that activity; or 

17 (bb)(AA) the person that en18 gaged in that activity determines, 

19 based on its best knowledge and be20 lief, that the person meets the criteria 

21 described in subparagraph (A) of such 

22 section 4(e)(3) and has provided to 

23 the President the assurances de24 scribed in subparagraph (B) of that 

25 section; and 


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1 (BB) the Secretary of State has 

2 issued an advisory opinion to that per3 son that the person meets such cri4 teria and has provided to the Presi5 dent those assurances; or 

6 (III) the President has deter7 mined that the criteria have been met 

8 for the exception provided for under 

9 section 5(a)(3)(C) of the Iran Sanc10 tions Act of 1996 to apply with re11 spect to the person that engaged in 

12 that activity; or 

13 (ii) in the case of an activity described 

14 in subparagraph (A)(ii), the President has 

15 waived, pursuant to section 401(b)(1) of 

16 the Comprehensive Iran Sanctions, Ac17 countability, and Divestment Act of 2010 

18 (22 U.S.C. 8551(b)(1)), the application of 

19 the prohibition under section 106(a) of 

20 that Act (22 U.S.C. 8515(a)) with respect 

21 to that person. 

22 (b) PROHIBITION ON FINANCING.—Beginning on the 

23 date that is 180 days after the date of the enactment of 

24 this Act, the Board of Directors of the Export-Import 

25 Bank of the United States may not approve any transVerDate Mar 15 2010 22:21 May 09, 2012 Jkt 019200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H2072.PCS H2072

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1 action that is subject to approval by the Board with re2 spect to the provision by the Bank of any guarantee, in3 surance, or extension of credit, or the participation by the 

4 Bank in any extension of credit, in connection with a fi5 nancing in which a person that is a borrower or controlling 

6 sponsor, or a person that is owned or controlled by such 

7 borrower or controlling sponsor, is subject to sanctions 

8 under section 5(a) of the Iran Sanctions Act of 1996 

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

10 (c) ADVISORY OPINIONS.— 

11 (1) AUTHORITY.—The Secretary of State is au12 thorized to issue advisory opinions described in sub13 section (a)(2)(B)(i)(II). 

14 (2) NOTICE TO CONGRESS.—If the Secretary 

15 issues an advisory opinion pursuant to paragraph 

16 (1), the Secretary shall notify the appropriate con17 gressional committees of the opinion not later than 

18 30 days after issuing the opinion. 

19 (d) DEFINITIONS.—In this section: 

20 (1) APPROPRIATE CONGRESSIONAL COMMIT21 TEES; PERSON.—The terms ‘‘appropriate congres22 sional committees’’ and ‘‘person’’ have the meanings 

23 given those terms in section 14 of the Iran Sanc24 tions Act of 1996 (Public Law 104–172; 50 U.S.C. 

25 1701 note). 


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1 (2) CONTROLLING SPONSOR.—The term ‘‘con2 trolling sponsor’’ means a person providing control3 ling direct private equity investment (excluding in4 vestments made through publicly held investment 

5 funds, publicly held securities, public offerings, or 

6 similar public market vehicles) in connection with a 

7 financing. 

8 SEC. 19. USE OF PORTION OF BANK SURPLUS TO UPDATE 

9 INFORMATION TECHNOLOGY SYSTEMS. 

10 Section 3 of the Export-Import Bank Act of 1945 

11 (12 U.S.C. 635a) is amended by adding at the end the 

12 following: 

13 ‘‘(j) AUTHORITY TO USE PORTION OF BANK SUR14 PLUS TO UPDATE INFORMATION TECHNOLOGY SYS15 TEMS.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraphs (3) 

17 and (4), the Bank may use an amount equal to 1.25 

18 percent of the surplus of the Bank during fiscal 

19 years 2012, 2013, and 2014 to— 

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

21 weakness and risk management vulnerabilities 

22 of the Bank which are the result of the infor23 mation technology system of the Bank; 


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1 ‘‘(B) remedy data fragmentation, enhance 

2 information flow throughout the Bank, and 

3 manage data across the Bank; and 

4 ‘‘(C) enhance the operational capacity and 

5 risk management capabilities of the Bank to 

6 better enable the Bank to increase exports and 

7 grow jobs while protecting the taxpayer. 

8 ‘‘(2) SURPLUS.—In paragraph (1), the term 

9 ‘surplus’ means the amount (if any) by which— 

10 ‘‘(A) the sum of the interest and fees col11 lected by the Bank; exceeds 

12 ‘‘(B) the sum of— 

13 ‘‘(I) the funds set aside to cover ex14 pected losses on transactions financed by 

15 the Bank; and 

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

17 administrative expenses of the Bank. 

18 ‘‘(3) LIMITATION.—The aggregate of the 

19 amounts used in accordance with paragraph (1) for 

20 fiscal years 2012, 2013, and 2014 shall not exceed 

21 $20,000,000. 

22 ‘‘(4) SUBJECT TO APPROPRIATIONS.—The au23 thority provided by paragraph (1) may be exercised 

24 only to such extent and in such amounts as are pro25 vided in advance in appropriations Acts.’’. 


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1 SEC. 20. MODIFICATIONS RELATING TO THE ADVISORY 

2 COMMITTEE. 

3 (a) REPRESENTATION OF THE TEXTILE INDUS4 TRY.—Section 3(d)(1)(B) of the Export-Import Bank Act 

5 of 1945 (12 U.S.C. 635a(d)(1)(B)) is amended by striking 

6 ‘‘and State government’’ inserting ‘‘State government, and 

7 the textile industry’’. 

8 (b) ACCESS TO BANK PRODUCTS BY THE TEXTILE

9 INDUSTRY.— 

10 (1) CONSIDERATION BY ADVISORY COM11 MITTEE.—Section 3(d) of such Act (12 U.S.C. 

12 635a(d)) is amended by adding at the end the fol13 lowing: 

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

15 Committee shall consider ways to promote the financing 

16 of Bank transactions for the textile industry, consistent 

17 with the requirement that the Bank obtain a reasonable 

18 assurance of repayment, and determine ways to— 

19 ‘‘(A) increase Bank support for the exports of 

20 textile components or inputs made in the United 

21 States; and 

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

23 expansion of jobs in the United States that are crit24 ical to the manufacture of textile components and 

25 inputs.’’. 


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1 (2) ANNUAL REPORT TO CONGRESS ON ADVI2 SORY COMMITTEE DETERMINATIONS.—Section 8 of 

3 such Act (12 U.S.C. 635g), as amended by sections 

4 6 and 10 of this Act, is amended by adding at the 

5 end the following: 

6 ‘‘(i) ACCESS TO BANK PRODUCTS BY THE TEXTILE

7 INDUSTRY.—The Bank shall include in its annual report 

8 to the Congress under subsection (a) of this section a re9 port on the determinations made by the Advisory Com10 mittee under section 3(d)(5) in the year covered by the 

11 report.’’. 

12 SEC. 21. FINANCING FOR GOODS MANUFACTURED IN THE 

13 UNITED STATES USED IN GLOBAL TEXTILE 

14 AND APPAREL SUPPLY CHAINS. 

15 (a) ANALYSIS OF TEXTILE INDUSTRY USE OF BANK

16 PRODUCTS.—The Export-Import Bank of the United 

17 States (in this section referred to as the ‘‘Bank’’) shall 

18 conduct a study of the extent to which the products of19 fered by the Bank are available and used by manufactur20 ers in the United States that export goods manufactured 

21 in the United States used as components in global textile 

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

23 Bank shall examine the following: 

24 (1) Impediments to use of Bank products by 

25 such firms. 


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1 (2) The number of jobs in the United States 

2 that are supported by the export of such component 

3 parts and the degree to which access to financing 

4 will increase exports. 

5 (3) Specific proposals for how the Bank, using 

6 its authority and products, could provide the financ7 ing, including through risk-sharing with other export 

8 credit agencies and other third parties. 

9 (4) Ways in which the Bank can take into ac10 count the full global textile and apparel supply 

11 chain—in particular, the ultimate purchase, and ul12 timate United States-based purchaser, of the fin13 ished good, that would result from the supply 

14 chain—in making credit and risk determinations 

15 and the creditworthiness of the ultimate purchaser. 

16 (5) Proposals for new products the Bank could 

17 offer to provide the financing, including— 

18 (A) the extent to which the Bank is au19 thorized to offer new products; 

20 (B) the extent to which the Bank would 

21 need additional authority to offer the new prod22 ucts; and 

23 (C) specific proposals for changes in law 

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1 nancing in compliance with the credit and risk 

2 standards of the Bank. 

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

4 enactment of this Act, the Bank shall submit to the Con5 gress a report that contains the results of the study re6 quired by subsection (a). 

7 (c) ANNUAL REPORTS.—Section 8 of the Export-Im8 port Bank Act of 1945 (12 U.S.C. 635g), as amended by 

9 sections 6, 10, and 20(b)(2) of this Act, is amended by 

10 adding at the end the following: 

11 ‘‘(j) TEXTILE AND APPAREL SUPPLY CHAIN FINANC12 ING.—The Bank shall include in its annual report to the 

13 Congress under subsection (a) of this section a description 

14 of the success of the Bank in providing effective and rea15 sonably priced financing to the United States textile and 

16 apparel industry for exports of goods manufactured in the 

17 United States that are used as components in global tex18 tile and apparel supply chains in the year covered by the 

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

20 of Bank products by such firms.’’. 

21 SEC. 22. TECHNICAL CORRECTION. 

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

23 of 1945 (12 U.S.C. 635(b)(2)(B)(ii)) is amended by strik24 ing subclauses (I), (IV), and (VII) and by redesignating 


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1 subclauses (II), (III), (V), (VI), (VIII), and (IX) as sub2 clauses (I) through (VI), respectively. 

3 SEC. 23. SUB-SAHARAN AFRICA ADVISORY COMMITTEE. 

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

5 Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by 

6 striking ‘‘2011’’ and inserting ‘‘2014’’. 

7 SEC. 24. DUAL USE EXPORTS. 

8 Section 4 of Public Law 109–438 (12 U.S.C. 635 

9 note; 108 Stat. 4376) is amended by striking ‘‘2011’’ and 

10 inserting ‘‘2014’’. 

11 SEC. 25. EFFECTIVE DATE. 

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

13 amendments made by this Act shall take effect on the ear14 lier of June 1, 2012, or the date of the enactment of this 

15 Act. 

Passed the House of Representatives May 9, 2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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Calendar No. 396 

112TH CONGRESS 

2D SESSION H. R. 2072 

AN ACT 

To reauthorize the Export-Import Bank of the 

United States, and for other purposes. 

MAY 9, 2012 

Received; read twice and placed on the calendar 


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