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of required economic impact analysis, under the pro-
posed 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 sub-
section (a), which shall include such recommendations 
with respect to the report and business plan as the Comp-
troller General deems appropriate. 
SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE 
ROLE OF THE BANK IN THE WORLD ECON-
OMY 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 Ex-
port-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 Rep-
resentatives a report which— 
(1) evaluates— 
(A) the history of the rate of growth of the 
Bank, and its causes, with specific consider-
ation given to— 
(i) the capital market conditions for 
export financing; 
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(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 
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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 sub-
paragraph (B), and how the fees 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 rec-
ommendations, the Bank shall include in its report an ex-
planation of why the Bank has not done so. 
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SEC. 6. MONITORING OF DEFAULT RATES ON BANK FI-
NANCING; 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 FI-
NANCING; REPORTS ON DEFAULT RATES; SAFETY AND 
SOUNDNESS REVIEW.— 
‘‘(1) MONITORING OF DEFAULT RATES.—Not 
less frequently than quarterly, the Bank shall cal-
culate the rate at which the entities to which the 
Bank has provided short-, medium-, or long-term fi-
nancing 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 SEC-
TOR; 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 prod-
ucts involved are short-term loans, me-
dium-term loans, long-term loans, insur-
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ance, medium-term guarantees, or long- 
term 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 rel-
evant. 
‘‘(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 cir-
cumstances 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 mon-
itors and tracks outstanding loans; 
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‘‘(B) detail specific planned actions, includ-
ing 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 DE-
FAULT 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 ac-
tions 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 Sec-
retary of the Treasury shall provide for an inde-
pendent third party to— 
‘‘(A) conduct a review of the loan pro-
grams and funds of the Bank, which shall de-
termine— 
‘‘(i) the financial safety and sound-
ness of the programs and funds; and 
‘‘(ii) the extent of loan loss reserves 
and capital adequacy of the programs and 
funds; and 
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‘‘(B) submit to the Secretary, within 60 
days after the end of the 6-month period, a re-
port that— 
‘‘(i) describes the methodology and 
standards used to conduct the review re-
quired by subparagraph (A); 
‘‘(ii) sets forth the results and find-
ings 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 re-
garding restoring the reserves and capital 
to maintain the programs and funds in a 
safe and sound condition.’’. 
SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILI-
GENCE 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 fol-
lowing: 
‘‘(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 
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delegated lenders to implement ‘Know your customer prac-
tices’.’’. 
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 en-
tering into financing contracts, the Bank shall seek a cred-
itor status which is not subordinate to that of all other 
creditors, in order to reduce the risk to, and enhance re-
coveries 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 add-
ing at the end the following: 
‘‘(10) 
NOTICE
AND
COMMENT
REQUIRE-
MENTS.— 
‘‘(A) IN GENERAL.—Before any meeting of 
the Board for final consideration of a long-term 
transaction 
the 
value 
of 
which 
exceeds 
$100,000,000, and concurrent with any state-
ment required to be submitted under section 
2(b)(3) with respect to the transaction, the 
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Bank shall provide a notice and comment pe-
riod. 
‘‘(B) FINANCIAL THRESHOLD DETERMINA-
TIONS.—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 guar-
antees, 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 Reg-
ister a notice of the application pro-
posing the transaction; 
‘‘(II) provide a period of not less 
than 25 days for the submission to 
the Bank of comments on the applica-
tion; and 
‘‘(III) notify the Committee on 
Banking, Housing, and Urban Affairs 
of the Senate, and the Committee on 
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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 no-
tice published under clause (i)(I) with re-
spect to an application for a loan or finan-
cial guarantee shall include appropriate in-
formation about— 
‘‘(I) a brief non-proprietary de-
scription of the purposes of the trans-
action 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 re-
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spect 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 informa-
tion which competitors could use to 
compete with companies in the United 
States. 
‘‘(D) PROCEDURE
REGARDING
MATERI-
ALLY 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 in the Federal Register a re-
vised notice of the application and provide 
for an additional comment period as pro-
vided 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 
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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 COMMENTERS.—Before taking final action 
on an application to which this paragraph ap-
plies, the staff of the Bank shall provide in 
writing to the Board of Directors the views of 
any person who submitted comments on the ap-
plication pursuant to this paragraph. 
‘‘(F) PUBLICATION
OF
CONCLUSIONS.— 
Within 30 days after a final decision of the 
Board of Directors with respect to an applica-
tion 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, which-
ever is later. 
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‘‘(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 RE-
PORT. 
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 fol-
lowing purposes: 
‘‘(1) ‘To assume commercial or political risk 
that exporter or private financial institutions are un-
willing or unable to undertake’. 
‘‘(2) ‘To overcome maturity or other limitations 
in private sector export financing’. 
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‘‘(3) ‘To meet competition from a foreign, offi-
cially sponsored, export credit competition’. 
‘‘(4) ‘Not identified’, and the reason why the 
purpose is not identified.’’. 
SEC. 11. NEGOTIATIONS TO END EXPORT CREDIT FINANC-
ING. 
(a) IN GENERAL.—The Secretary of the Treasury (in 
this section referred to as the ‘‘Secretary’’) shall initiate 
and pursue negotiations— 
(1) with other major exporting countries, in-
cluding 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 fi-
nancing programs and other forms of export sub-
sidies; 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 elimi-
nating, aircraft export credit financing for all air-
craft covered by the 2007 Sector Understanding on 
Export Credits for Civil Aircraft (in this section re-
ferred to as the ‘‘ASU’’), including any modification 
thereof, and all of the following types of aircraft: 
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(A) Heavy aircraft that are capable of a 
takeoff weight of 300,000 pounds or more, 
whether or not operating at such a weight dur-
ing 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 NEGOTIA-
TIONS.—Not later than 180 days after the date of the en-
actment 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 Finan-
cial 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 coun-
tries that support subsidized export financing pro-
grams 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 classifica-
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tion of aircraft set forth in subsection (a)(2), until 
the Secretary certifies in writing to the committees 
that all countries that support subsidized export fi-
nancing programs have agreed to end the support of 
aircraft covered by the ASU. 
SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IM-
PACT 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 anal-
yses 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 guid-
ance 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 subpara-
graphs (E) and (F) as subparagraphs (F) and (G), respec-
tively, and inserting after subparagraph (D) the following: 
‘‘(E) 
MAINTENANCE
OF
DOCUMENTA-
TION.—The Bank shall maintain documentation 
relating to economic impact analyses and simi-
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lar studies conducted under this subsection in a 
manner consistent with the Standards for Inter-
nal Control of the Federal Government issued 
by the Comptroller General of the United 
States.’’. 
SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDA-
TIONS 
OF 
THE 
GOVERNMENT 
ACCOUNT-
ABILITY OFFICE. 
Not later than 180 days after the date of the enact-
ment of this Act, the Export-Import Bank of the United 
States shall submit to the Committee on Banking, Hous-
ing, 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 Gov-
ernment 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. 
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