522 
with the knowledge or complicity of the govern-
ment; 
(3) the term ‘‘major money-laundering country’’ 
means a country whose financial institutions engage 
in 
currency 
transactions 
involving 
significant 
amounts of proceeds from international narcotics 
trafficking; and 
(4) the term ‘‘major source of precursor chemi-
cals’’ means a country that is among the top 5 pro-
ducers or the top 5 exporters of a listed chemical 
under section 102(33) of the Controlled Substances 
Act (21 U.S.C. 802(33)). 
SEC. 5210. INTERNATIONAL NARCOTICS CONTROL ASSIST-
ANCE REPORT. 
(a) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter, the 
President shall transmit to the appropriate congressional 
committees a report on international narcotics control as-
sistance. Such report shall, for each country— 
(1) describe the types and amounts of inter-
national narcotics control assistance provided or pro-
posed to be provided by each Federal agency for the 
preceding fiscal year, the current fiscal year, and the 
next fiscal year; 
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(2) include all transfers that were made by each 
Federal agency during the preceding fiscal year for 
narcotics control or anti-crime purposes of any prop-
erty seized by or otherwise forfeited to the United 
States Government in connection with narcotics-re-
lated activity, including an estimate of the fair mar-
ket value and physical condition of each item of 
property transferred; 
(3) discuss the extent to which the country is 
meeting the goals and objectives of the United Na-
tions Convention Against Illicit Traffic in Narcotic 
Drugs and Psychotropic Substances, and the key 
areas in which improvements are needed; 
(4) explain how the strategy described under 
section 5209 is being implemented; 
(5) describe any progress made toward achiev-
ing the goal and objectives in section 5203; 
(6) identify the indicators and metrics to be 
used in assessing the impact of international nar-
cotics control assistance, including the impact of the 
use of herbicides for aerial eradication on the envi-
ronment, the health of individuals, and internal dis-
placement; and 
(7) list any contributions under section 5206(b) 
received in the preceding fiscal year, the amount of 
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such contributions, and the purposes for which such 
contributions were used. 
(b) DEFINITION.—In this section, the term ‘‘inter-
national narcotics control assistance’’ means foreign as-
sistance provided by any Federal agency to combat or con-
trol the transit, production, or financing of illicit narcotics. 
SEC. 5211. NARCOTICS STRATEGY EVALUATION. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct an impact evaluation of pro-
grams carried out by the Bureau of International Nar-
cotics and Law Enforcement, using rigorous quantitative 
data analysis. The evaluation shall measure progress made 
on the following indicators, as appropriate: 
(1) Supply Side Factors, such as— 
(A) estimated illicit drug production; 
(B) estimated illicit drug transshipment; 
(C) estimated illicit drug production and 
transshipment as a percentage of GDP; 
(D) number of individuals and households 
estimated to be involved in illicit drug produc-
tion and transshipment; 
(E) number and average size of illicit 
drug-crop cultivation plots; 
(F) farm-gate price of illicit drug crop; and 
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(G) in-country price and purity of illicit 
drug. 
(2) Disruption of Networks, such as— 
(A) drug seizures as a percentage of total 
estimated drug production and transshipment; 
and 
(B) arrests and convictions of major nar-
cotics-related organized crime figures. 
(3) Economic well-being and governance, such 
as— 
(A) presence of government institutions 
(such as security forces, civilian ministries, local 
government, justice system) in zones of greatest 
drug production; 
(B) perceptions of police competence; 
(C) number of individuals and households 
formerly involved in drug production and trans-
shipment who are now benefitting from develop-
ment and alternative income programs; 
(D) level of drug-related violence as a per-
centage of overall violence; and 
(E) poverty and unemployment rates in de-
partments, States or provinces with the greatest 
drug production and transshipment. 
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(b) SUBMISSION.—The results of the evaluation re-
quired under subsection (a) shall be submitted to the ap-
propriate congressional committees not later than 4 years 
after the date of the enactment of this Act and every 4 
years thereafter. 
Subtitle C—Counter-Terrorism 
Authorities 
SEC. 5301. PURPOSES. 
Activities conducted under this subtitle shall be de-
signed to— 
(1) build the capacity of foreign law enforce-
ment and security personnel to detect, deter and 
counter terrorism; 
(2) counter and ameliorate the conditions and 
circumstances that foster terrorist and violent ex-
tremist ideologies, activity and recruitment; 
(3) increase respect for human rights by shar-
ing with foreign civil authorities modern, humane, 
and effective antiterrorism techniques; and 
(4) enhance bilateral and multilateral partner-
ships to counter terrorism and violent extremism. 
SEC. 5302. ASSISTANCE TO COUNTRIES AND MULTILAT-
ERAL ORGANIZATIONS FOR COUNTER-TER-
RORISM ACTIVITIES. 
(a) ASSISTANCE TO COUNTRIES.— 
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(1) IN GENERAL.—Notwithstanding any other 
provision of law that restricts assistance to foreign 
countries (other than sections 9101, 9102, 9401, 
and 9402), the Secretary, acting through the Assist-
ant Secretary for Counterterrorism or other appro-
priate senior official, is authorized to provide, on 
such terms and conditions as the Secretary may de-
termine— 
(A) assistance to foreign countries in order 
to enhance the ability of their law enforcement 
and security personnel to deter terrorists and 
terrorist groups from engaging in international 
terrorist acts such as bombing, kidnaping, as-
sassination, hostage taking, and hijacking; and 
(B) in coordination with the Adminis-
trator, assistance to foreign countries, including 
nongovernmental organizations, to enhance 
their ability to counter violent extremism and 
radicalization and to counter the appeal of ter-
rorist and other extremist organizations. 
(2) ASSISTANCE.—Assistance under paragraph 
(1)(A) may include the following: 
(A) Consistent with section 3303, the pro-
vision of equipment, supplies, and training to 
build the capacity of foreign law enforcement or 
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security forces to conduct counter-terrorist op-
erations and respect human rights. 
(B) Training services and the provision of 
equipment and other commodities related to de-
tection and disposal of bombs (including impro-
vised explosive devices), management of hostage 
situations, physical security, and other matters 
relating to the detection, deterrence, and pre-
vention of acts of terrorism, the resolution of 
terrorist incidents, and the apprehension of 
those involved in such acts. 
(C) Support and cooperation with foreign 
banking, regulatory, and other officials to 
counter the financing of terrorist activities. 
(b) ASSISTANCE
TO
MULTILATERAL
ORGANIZA-
TIONS.—The Secretary is authorized to provide, on such 
terms and conditions as the Secretary may determine, sup-
port to multilateral organizations for international and re-
gional counterterrorism cooperation programs, including 
the Regional Strategic Initiative. Such support may be 
provided in the form of grants, contracts, or voluntary 
contributions to such organizations. 
(c) PAYMENT.— 
(1) IN GENERAL.—If the Secretary determines 
it to be consistent with and in furtherance of the 
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purposes of this subtitle, and on such terms and 
conditions consistent with this Act as the Secretary 
may determine, any Federal agency is authorized to 
provide services and commodities, without charge to 
funds available to carry out this subtitle, to an eligi-
ble foreign country, subject to payment in advance 
of the value thereof (within the meaning of section 
4411) in United States dollars by the foreign coun-
try. 
(2) CREDITING.—Collections under this subtitle 
shall be credited to the currently applicable appro-
priation, account, or fund of the agency providing 
such services and commodities and shall be available 
for the purposes for which such appropriation, ac-
count, or fund is authorized to be used. 
(3) VALUE.—The value in terms of original ac-
quisition cost of all equipment and commodities pro-
vided under this subtitle in any fiscal year shall not 
exceed 30 percent of the funds made available to 
carry out this subtitle for that fiscal year. 
(d) 
CONSULTATION.—Consistent 
with 
section 
1(c)(2)(C) of the State Department Basic Authorities Act 
of 1956 (as added by section 3105), the Assistant Sec-
retary of State for Democracy, Human Rights and Labor 
shall be consulted in determinations of foreign countries 
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530 
that will be provided assistance under this subtitle and de-
terminations of the nature of assistance to be provided to 
each such country. 
(e) LIMITATION.—Arms and ammunition may be pro-
vided under this subtitle only if such arms and ammuni-
tion are directly related to counterterrorism assistance. 
(f) RULE OF CONSTRUCTION.—Nothing in this sub-
title shall apply to information exchange activities con-
ducted by Federal agencies under any other authority for 
such purposes 
SEC. 5303. COUNTER-TERRORISM RESPONSIBILITIES OF 
THE DEPARTMENT OF STATE. 
(a) IN GENERAL.—Section 1 of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C. 2651a) 
is amended— 
(1) in subsection (c)(1), by striking ‘‘24’’ and 
inserting ‘‘25’’; and 
(2) in subsection (e) to read as follows: 
‘‘(e) COUNTERTERRORISM RESPONSIBILITIES.— 
‘‘(1) IN
GENERAL.—The Secretary of State 
shall be responsible for the overall supervision (in-
cluding policy oversight of resources) of counterter-
rorism activities and may designate an Assistant 
Secretary or other senior official, who may report di-
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rectly to the Secretary as appropriate, to assist in 
such activities. 
‘‘(2) TRANSFER AUTHORITY.—The Secretary of 
State may transfer any authority, duty, or function 
assigned to the Coordinator for Counterterrorism or 
to the Office of the Coordinator for Counterter-
rorism to the Assistant Secretary or other senior of-
ficial designated by the Secretary of State under 
paragraph (1) or to the Bureau of Counterterrorism 
(as the case may be).’’. 
(b) CONFORMING AMENDMENT.—Section 5315 of 
title 5, United States Code, is amended in the item relat-
ing to Assistant Secretaries of State, by striking ‘‘(24)’’ 
and inserting ‘‘(25)’’. 
TITLE VI—SUSTAINING THE 
GLOBAL ENVIRONMENT 
SEC. 6001. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) 
Sound 
natural 
resource 
management, 
healthy ecosystems, and biological diversity are vital 
to alleviating poverty in developing countries that 
depend on natural resources for water, food, medi-
cine, energy, household products, and tourism and 
trade. 
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532 
(2) Proper management and protection of nat-
ural resources can mitigate instability, conflict, and 
corruption in many developing countries. 
(3) Poaching and the illegal trafficking of wild-
life represent significant threats to preserving bio-
logical diversity and can lead to crime and corrup-
tion. 
(4) Establishing protected areas can preserve 
wildlife and plant species from degradation and 
guard against the illegal wildlife trade. 
(5) Strengthening the indigenous capacity of 
partner countries to manage their natural resources 
improves the long-term sustainability of conservation 
programs and is essential for economic growth in de-
veloping countries. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to work in cooperation with the inter-
national community, including nongovernmental organiza-
tions, to reduce biodiversity loss, adapt to and mitigate 
climate change, and integrate principles of environmental 
sustainability into policies and programs for international 
development. 
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533 
Subtitle A—Debt-for-Nature 
Exchanges 
SEC. 6101. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) Poverty and economic pressures on the pop-
ulations of developing countries have led to environ-
mental degradation that exacerbate existing chal-
lenges and imperil long-term, sustainable develop-
ment. 
(2) Debt reduction can reduce economic pres-
sures on developing countries and provide funds for 
environmental conservation and development. 
(3) Identifying and developing economic bene-
fits to local communities from sustainable use of the 
environment is critical to the protection of eco-
systems and to overall development. 
(4) Tropical forests provide a wide range of 
benefits to humankind by— 
(A) harboring a major share of the Earth’s 
biological and terrestrial resources, which are 
the basis for developing pharmaceutical prod-
ucts and revitalizing agricultural crops; 
(B) playing a critical role as carbon sinks 
in reducing greenhouse gases in the atmos-
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534 
phere, thus moderating potential global climate 
change; and 
(C) regulating hydrological cycles on which 
far-flung agricultural and coastal resources de-
pend. 
(5) Coral reefs and associated coastal marine 
ecosystems provide a wide range of benefits to hu-
mankind by— 
(A) harboring more species per unit area 
than any other marine habitat, providing the 
basis for developing pharmaceutical products 
and fostering a growing marine tourism sector; 
(B) providing a major source of food and 
jobs for hundreds of millions of coastal resi-
dents; and 
(C) serving as natural storm barriers, thus 
protecting vulnerable shorelines and commu-
nities from storm waves and erosion. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to work in cooperation with partner coun-
tries and nongovernmental organizations to protect and 
sustainably manage tropical forests, coral reefs, and other 
natural ecosystems, including through debt-for-nature ex-
changes. 
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SEC. 6102. DEFINITIONS. 
As used in this subtitle: 
(1) ADMINISTERING BODY.—The term ‘‘admin-
istering body’’ means the entity provided for in sec-
tion 6107(c). 
(2) PARTNER
COUNTRY.—The term ‘‘partner 
country’’ means an eligible country with respect to 
which the authority of paragraph (1) or (2) of sec-
tion 6105(a) or section 6106(a)(1) is exercised. 
(3) 
DEBT-FOR-NATURE
AGREEMENT.—The 
term ‘‘Debt-for-Nature Agreement’’ or ‘‘Agreement’’ 
means a Debt-for-Nature Agreement provided for in 
section 6107. 
(4) DEBT-FOR-NATURE
FACILITY.—The term 
‘‘Debt-for-Nature Facility’’ or ‘‘Facility’’ means the 
Debt-for-Nature Facility established in the Depart-
ment of the Treasury by section 6103. 
(5) 
DEBT-FOR-NATURE
FUND.—The 
term 
‘‘Debt-for-Nature Fund’’ or ‘‘Fund’’ means a Debt- 
for-Nature Fund provided for in section 6109. 
(6) ELIGIBLE
COUNTRY.—The term ‘‘eligible 
country’’ means a country described in section 6104. 
SEC. 6103. ESTABLISHMENT OF THE FACILITY. 
There is established in the Department of the Treas-
ury an entity to be known as the ‘‘Debt-for-Nature Facil-
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536 
ity’’ for the purpose of providing for the administration 
of debt reduction in accordance with this subtitle. 
SEC. 6104. ELIGIBILITY FOR BENEFITS. 
To be eligible for benefits from the Facility under this 
subtitle, a country shall be a developing country the gov-
ernment of which— 
(1) is democratically elected; 
(2) does not support acts of international ter-
rorism; 
(3) does not engage in a consistent pattern of 
gross violations of internationally recognized human 
rights; 
(4) has in effect, has received approval for, or, 
as appropriate in exceptional circumstances, is mak-
ing significant progress toward— 
(A) an International Monetary Fund 
standby arrangement, extended International 
Monetary Fund arrangement, or an arrange-
ment under the structural adjustment facility or 
enhanced structural adjustment facility, or in 
exceptional circumstances, an International 
Monetary Fund-monitored program or its 
equivalent, unless the President determines that 
such an arrangement or program (or its equiva-
lent) could reasonably be expected to have sig-
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537 
nificant adverse social or environmental effects; 
and 
(B) as appropriate, structural or sectoral 
adjustment loans from the International Bank 
for Reconstruction and Development or the 
International Development Association, unless 
the President determines that the resulting ad-
justment requirements could reasonably be ex-
pected to have significant adverse social or envi-
ronmental effects; and 
(5) if appropriate, has agreed with its commer-
cial bank lenders on a satisfactory financing pro-
gram, including, as appropriate, debt or debt service 
reduction. 
SEC. 6105. AUTHORITY TO ENGAGE IN DEBT-FOR-NATURE 
SWAPS AND DEBT BUYBACKS. 
(a) LOANS AND CREDITS ELIGIBLE FOR SALE, RE-
DUCTION, OR CANCELLATION.— 
(1) DEBT-FOR-NATURE SWAPS.— 
(A) IN
GENERAL.—Notwithstanding any 
other provision of law, the President may, in 
accordance with this section, sell to any eligible 
purchaser described in subparagraph (B) any 
concessional loans described in section 6106 or 
any credits described in section 6106, or on re-
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538 
ceipt of payment from an eligible purchaser de-
scribed in subparagraph (B), reduce or cancel 
such loans (or credits) or portion thereof under 
an Agreement, only for the purpose of facili-
tating a debt-for-nature swap to support eligible 
activities described in section 6108. 
(B) ELIGIBLE
PURCHASER.—A loan or 
credit may be sold, reduced, or canceled under 
subparagraph (A) only to a purchaser who pre-
sents plans satisfactory to the President for 
using the loan or credit for the purpose of en-
gaging in debt-for-nature swaps to support eli-
gible activities described in section 6108. 
(2) DEBT
BUYBACKS.—Notwithstanding any 
other provision of law, the President may, in accord-
ance with this section, sell to any eligible country 
any concessional loans described in section 6106 or 
any credits described in section 6106, or on receipt 
of payment from an eligible country, reduce or can-
cel such loans (or credits) or portion thereof under 
an Agreement, only for the purpose of facilitating a 
debt buyback by an eligible country of its own quali-
fied debt, only if the eligible country uses an addi-
tional amount of the local currency of the eligible 
country, equal to not less than the lesser of 40 per-
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539 
cent of the price paid for such debt by such eligible 
country, or the difference between the price paid for 
such debt and the face value of such debt, to sup-
port eligible activities described in section 6108. 
(3) LIMITATION.—The authority provided by 
paragraphs (1) and (2) shall be available only to the 
extent that appropriations for the cost (as defined in 
section 502(5) of the Federal Credit Reform Act of 
1990) of the modification of any debt pursuant to 
such paragraphs are made in advance. 
(4) TERMS AND CONDITIONS.—Notwithstanding 
any other provision of law, the President shall, in ac-
cordance with this section, establish the terms and 
conditions under which loans and credits may be 
sold, reduced, or canceled pursuant to this section. 
(5) ADMINISTRATION.— 
(A) IN GENERAL.—When the President de-
termines a purchaser to be an eligible purchaser 
pursuant to paragraph (1)(B), the Adminis-
trator or the Secretary of Agriculture, as the 
case may be, shall carry out the sale, reduction, 
or cancellation of a loan pursuant to such para-
graph. 
(B) ADDITIONAL REQUIREMENT.—The Ad-
ministrator or Secretary of Agriculture, as the 
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540 
case may be, shall make an adjustment in its 
accounts to reflect the sale, reduction, or can-
cellation. 
(b) DEPOSIT OF PROCEEDS.—The proceeds from the 
sale, reduction, or cancellation of any loan sold, reduced, 
or canceled pursuant to this section shall be deposited in 
the United States Government account or accounts estab-
lished for the repayment of such loan. 
SEC. 6106. REDUCTION OF DEBT OWED TO THE UNITED 
STATES AS A RESULT OF CONCESSIONAL 
LOANS OR CREDITS UNDER THIS ACT AND 
CERTAIN OTHER PROVISIONS OF LAW. 
(a) AUTHORITY TO REDUCE DEBT.— 
(1) AUTHORITY.—The President may reduce 
the amount owed to the United States (or any Fed-
eral agency) that is outstanding as of the date of the 
enactment of this Act as a result of concessional 
loans or credits made to an eligible country by the 
United States under this Act, the Foreign Assist-
ance Act of 1961 (as such Act was in effect on the 
day before the date of the enactment of this Act), 
title I of the Agricultural Trade Development and 
Assistance Act of 1954 (7 U.S.C. 1701 et seq.), or 
predecessor foreign economic assistance legislation. 
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541 
(2) CERTAIN PROHIBITIONS INAPPLICABLE.—A 
reduction of debt pursuant to this section shall not 
be considered foreign assistance for purposes of any 
provision of law limiting assistance to a country. 
(b) IMPLEMENTATION OF DEBT REDUCTION.— 
(1) IN GENERAL.—Any debt reduction pursuant 
to subsection (a) shall be accomplished at the direc-
tion of the Facility under an Agreement by the ex-
change of a new obligation for obligations of the 
type referred to in subsection (a) outstanding as of 
the date specified in subsection (a)(1). 
(2) EXCHANGE OF OBLIGATIONS.— 
(A) IN GENERAL.—The Facility shall no-
tify the Administrator or the Secretary of Agri-
culture of an agreement entered into under 
paragraph (1) with an eligible country to ex-
change a new obligation for outstanding obliga-
tions. 
(B) ADDITIONAL REQUIREMENT.—At the 
direction of the Facility, the old obligations that 
are the subject of the Agreement shall be can-
celed and a new debt obligation for the country 
shall be established relating to the Agreement, 
and the Administrator or the Secretary of Agri-
culture, as the case may be, shall make an ad-
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542 
justment in the respective agency’s accounts to 
reflect the debt reduction. 
(c) ADDITIONAL TERMS AND CONDITIONS.— 
(1) REPAYMENT OF PRINCIPAL.—The principal 
amount of each new obligation issued pursuant to 
subsection (b) shall be repaid in United States dol-
lars. 
(2) DEPOSIT OF PAYMENTS.—Principal repay-
ments of new obligations shall be deposited in the 
United States Government account established for 
principal repayments of the obligations for which 
those obligations were exchanged. 
(d) INTEREST.—Principal repayments of new obliga-
tions shall be deposited in the United States Government 
account established for principal repayments of the obliga-
tions for which those obligations were exchanged. 
(1) RATE OF INTEREST.—Each new obligation 
issued by a partner country pursuant to subsection 
(b) shall bear interest at a concessional rate. 
(2) CURRENCY OF INTEREST PAYMENT; DEPOS-
ITS.— 
(A) LOCAL
CURRENCY.—If the partner 
country has entered into a Debt-for-Nature 
Agreement, interest shall be paid in the local 
currency of the partner country and deposited 
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543 
in the Debt-for-Nature Fund of such country. 
Such interest shall be the property of the part-
ner country, until such time as it is disbursed 
pursuant to section 6109(b)(3). Such local cur-
rencies shall be used for the purposes specified 
in the Agreement. 
(B) UNITED
STATES
DOLLARS.—If the 
partner country has not entered into a Debt- 
for-Nature Agreement, interest shall be paid in 
United States dollars and deposited in the 
United States Government account established 
for interest payments of the obligations for 
which the new obligations were exchanged. 
(3) INTEREST
ALREADY
PAID.—If a partner 
country enters into a Debt-for-Nature Agreement 
subsequent to the date on which interest first be-
came due on the newly issued obligation, any inter-
est already paid on such new obligation shall not be 
redeposited into the Debt-for-Nature Fund estab-
lished for that country. 
SEC. 6107. DEBT-FOR-NATURE AGREEMENT. 
(a) AUTHORITY.—The President is authorized to 
enter into a Debt-for-Nature Agreement with any eligible 
country concerning the operation and use of the Debt-for- 
Nature Fund for the country. 
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544 
(b) CONTENTS
OF AGREEMENT.—An Agreement 
with an eligible country shall— 
(1) require— 
(A) the establishment of a Fund for the 
country; or 
(B) in the case of a country with respect 
to which a fund has been established under part 
IV (relating to Enterprise for the Americas Ini-
tiative) or part V (relating to debt reduction for 
developing countries with tropical forests) of the 
Foreign Assistance Act of 1961 (as such Act 
was in effect on the day before the date of the 
enactment of this Act), the continued utilization 
of such fund; 
(2) require the country to make prompt dis-
bursements from the Fund to the administering 
body described in subsection (c); 
(3) when appropriate, seek to maintain the 
value of the local currency resources of the Fund in 
terms of United States dollars; 
(4) contain reasonable provisions for the en-
forcement of the terms of the Agreement; and 
(5) establish criteria and priorities guiding the 
disbursement of grants consistent with the eligible 
activities in section 6108. 
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545 
(c) ADMINISTERING BODY.— 
(1) IN GENERAL.—Amounts disbursed from the 
Fund in each partner country shall be administered 
by a body constituted under the laws of that coun-
try. 
(2) COMPOSITION.— 
(A) IN GENERAL.—The administering body 
shall consist of— 
(i) one or more individuals appointed 
by the United States Government; 
(ii) one or more individuals appointed 
by the government of the partner country; 
and 
(iii) individuals who represent a broad 
range of— 
(I) 
environmental 
nongovern-
mental organizations of, or active in, 
the partner country; 
(II) local community development 
nongovernmental organizations of the 
partner country; and 
(III) scientific, academic, or in-
stitutions of the partner country. 
(B) ADDITIONAL
REQUIREMENT.—A ma-
jority of the members of the administering body 
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546 
shall be individuals described in subparagraph 
(A)(iii). 
(3) 
RESPONSIBILITIES.—The 
administering 
body shall— 
(A) receive proposals for grant assistance 
from eligible grant recipients (as determined 
under subsection (d)) and make grants to eligi-
ble grant recipients in accordance with the pri-
orities agreed upon in the Agreement, con-
sistent with section 6108; 
(B) be responsible for the management of 
the program and oversight of grant activities 
funded from resources of the Fund; 
(C) consult with local communities on the 
planning, development, and implementation of 
plans, programs, and activities associated with 
the disbursements of grants; 
(D) be subject, on an annual basis, to an 
audit of financial statements conducted in ac-
cordance with generally accepted auditing 
standards by an independent auditor; 
(E) be required to grant to representatives 
of the United States Government Accountability 
Office such access to books and records associ-
ated with operations of the Fund as the Comp-
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547 
troller General of the United States may re-
quest; and 
(F) present an annual plan on activities 
for the upcoming year for review and an annual 
report on the activities the administering body 
undertook during the previous year to the Sec-
retary of State, the Secretary of the Treasury, 
the Administrator, the government of the part-
ner country, and, if appropriate, the nongovern-
mental organization. 
(d) GRANT RECIPIENTS.— 
(1) IN GENERAL.—Grants made from the Fund 
shall be made to— 
(A) nongovernmental environmental, for-
estry, conservation, and indigenous peoples or-
ganizations of, or active in, the partner country; 
(B) other appropriate local or regional en-
tities of, or active in, the partner country; or 
(C) in exceptional circumstances, the gov-
ernment of the partner country. 
(2) PRIORITY.—In providing grants under 
paragraph (1), priority shall be given to projects 
that are run by local nongovernmental organizations 
and other private entities and that involve local com-
munities in their planning and execution. 
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548 
(e) REVIEW
OF LARGER GRANTS.—Any grant of 
more than $250,000 from a Fund shall be subject to ap-
proval by the Government of the United States and the 
government of the partner country. 
(f) ELIGIBILITY CRITERIA.—In the event that a 
country ceases to meet the eligibility requirements set 
forth in section 6104, then grants from the Fund for that 
country may only be made to nongovernmental organiza-
tions until such time as the country meets the eligibility 
requirements set forth in section 6104. 
(g) USE OF FUNDS TO CONDUCT PROGRAM AUDITS 
AND EVALUATION.—Of the amounts made available to 
carry out this subtitle for a fiscal year, up to one percent 
is authorized to be made available to carry out audits, 
evaluations, monitoring, and administration of programs 
under this subtitle, including personnel costs associated 
with such audits, evaluations, monitoring, and administra-
tion. 
(h) CONGRESSIONAL NOTIFICATION.—The President 
shall notify the appropriate congressional committees of 
the President’s intention to enter into an Agreement with 
an eligible country at least 15 days in advance of entering 
into such Agreement. 
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549 
SEC. 6108. ELIGIBLE ACTIVITIES. 
(a) IN GENERAL.—Grants made from the Fund shall 
be used for— 
(1) restoration, conservation, or sustainable use 
of terrestrial and marine animal and plant species; 
(2) establishment, restoration, protection, and 
maintenance of parks, protected areas, and reserves; 
(3) development and implementation of scientif-
ically sound systems of natural resource manage-
ment, including land and water and ecosystem man-
agement practices; 
(4) development and implementation of pro-
grams to address the effects of climate change on 
environmental resources; 
(5) training programs to strengthen conserva-
tion institutions and increase scientific, technical, 
and managerial capabilities of local individuals and 
organizations involved in conservation efforts; or 
(6) research and identification of medicinal uses 
of plant life to treat human diseases, illnesses, and 
health related concerns. 
(b) PRIORITIZING ACTIVITIES.—In cooperation with 
the partner country and nongovernmental organizations, 
the President shall seek to identify those areas, which be-
cause of an imminent threat, are in particular need of im-
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550 
mediate attention to prevent the loss of unique biological 
life or valuable ecosystem. 
SEC. 6109. DEBT-FOR-NATURE FUND. 
(a) ESTABLISHMENT.—Each partner country that 
enters into a Debt-for-Nature Agreement under section 
6107 shall be required to establish a Debt-for-Nature 
Fund to receive payments of interest and principal on new 
obligations undertaken by the partner country under this 
subtitle. 
(b) REQUIREMENTS RELATING TO OPERATION OF 
FUND.—The following terms and conditions shall apply 
to the Fund: 
(1) DEPOSITS.—Local currencies deposited in 
the Fund shall not be considered foreign assistance 
for purposes of any provision of law limiting assist-
ance to a country. 
(2) INVESTMENT.—Deposits made in the Fund 
shall be invested until disbursed. Any return on such 
investment may be retained by the Fund, without 
deposit in the Treasury of the United States and 
without further appropriation by Congress. 
(3) DISBURSEMENTS.—Funds in the Fund 
shall be disbursed pursuant to a Debt-for-Nature 
Agreement authorized under section 6107. 
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551 
SEC. 6110. RESPONSIBILITIES TO THE CONGRESS. 
(a) CONSULTATIONS WITH
THE CONGRESS.—The 
President shall consult with the appropriate congressional 
committees on a periodic basis to review the operation of 
the Facility under this subtitle and the eligibility of coun-
tries for benefits from the Facility under this subtitle. 
(b) REPORT TO CONGRESS.—Not later than Decem-
ber 31 of each year, the President shall prepare and trans-
mit to Congress an annual report concerning the oper-
ations of the Debt-for-Nature Facility under this subtitle 
for the prior fiscal year. Such report shall include— 
(1) a description of the activities undertaken by 
such Facility during the previous fiscal year; 
(2) a description of any Agreement entered into 
under this subtitle; 
(3) a report on Debt-for-Nature Funds that 
have been established under this subtitle and on the 
operations of such Funds; and 
(4) a description of any grants that have been 
provided by administering bodies pursuant to Debt- 
for-Nature Agreements under this subtitle. 
SEC. 6111. GENERAL SAVINGS CLAUSE. 
An agreement in effect on the day before the date 
of the enactment of this Act under part IV (relating to 
Enterprise for the Americas Initiative) or part V (relating 
to debt reduction for developing countries with tropical 
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552 
forests) of the Foreign Assistance Act of 1961 (as such 
parts were in effect on the day before the date of the en-
actment of this Act) shall remain in effect subject to the 
terms and conditions under such agreement. 
Subtitle B—Commercial Debt-for- 
Nature Exchanges 
SEC. 6201. COMMERCIAL DEBT-FOR-NATURE EXCHANGE 
DEFINED. 
For purposes of this subtitle, the term ‘‘commercial 
debt-for-nature exchange’’ means the cancellation or re-
demption of the foreign debt of the government of a coun-
try in exchange for— 
(1) the government’s making available local cur-
rencies (including through the issuance of bonds) 
that are used only for eligible projects involving the 
conservation or protection of the environment in that 
country (as described in section 6203); 
(2) the government’s financial resource or pol-
icy commitment to take certain specified actions to 
ensure the restoration, protection, or sustainable use 
of natural resources within that country; or 
(3) a combination of assets and actions under 
both paragraphs (1) and (2). 
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553 
SEC. 6202. AUTHORIZATION FOR COMMERCIAL DEBT EX-
CHANGES. 
(a) IN GENERAL.—The Administrator is authorized 
to provide grants, on such terms and conditions as the 
Administrator may determine, to nongovernmental organi-
zations for the purchase on the open market of discounted 
commercial debt of a foreign government of an eligible 
country described in section 6204 which will be canceled 
or redeemed under agreed upon terms with that govern-
ment as part of a commercial debt-for-nature exchange. 
(b) INTEREST.—Notwithstanding any other provision 
of law, a grantee (or any subgrantee) of the grants re-
ferred to in subsection (a) may retain, without deposit in 
the Treasury of the United States and without further ap-
propriation by Congress, interest earned on the proceeds 
of any resulting commercial debt-for-nature exchange 
pending the disbursements of such proceeds and interest 
for approved program purposes, which may include the es-
tablishment of an endowment, the income of which is used 
for such purposes. 
SEC. 6203. ELIGIBLE PROJECTS. 
(a) IN GENERAL.—The Administrator shall seek to 
ensure that commercial debt-for-nature exchanges under 
this subtitle support one or more of the eligible activities 
listed in section 6108 by either the relevant government, 
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554 
a local private conservation group, or a combination there-
of. 
(b) IDENTIFICATION OF CERTAIN AREAS.—In co-
operation with nongovernmental organizations and the rel-
evant country, the Administrator shall seek to identify 
those areas, which because of an imminent threat, are in 
particular need of immediate attention to prevent the loss 
of unique biological life or valuable ecosystem. 
SEC. 6204. ELIGIBLE COUNTRIES. 
In order for a foreign country to be eligible to partici-
pate in a commercial debt-for-nature exchange under this 
subtitle the foreign country shall be a developing country 
that— 
(1) meets the requirements of section 6104; and 
(2) the Administrator determines— 
(A) is fully committed to the long-term via-
bility of the program or project that is to be un-
dertaken through the commercial debt-for-na-
ture exchange; 
(B) has prepared a long-term plan, or a 
private conservation group has prepared a long- 
term plan for the country, which adequately 
provides for the long-term viability of the pro-
gram or project that is to be undertaken 
through the commercial debt-for-nature ex-
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555 
change or that such a plan will be prepared in 
a timely manner; and 
(C) has a government agency or a local 
nongovernmental organization, or combination 
thereof, with the capability, commitment, and 
record of environmental concern to oversee the 
long-term viability of the program or project 
that is to be undertaken through the commer-
cial debt-for-nature exchange. 
SEC. 6205. PROHIBITION. 
The United States Government is prohibited from ac-
cepting title or interest in any land in a foreign country 
as a condition on the commercial debt-for-nature ex-
change. 
TITLE 
VII—EXPANDING 
PROS-
PERITY 
THROUGH 
TRADE 
AND INVESTMENT 
SEC. 7001. FINDINGS. 
Congress finds the following: 
(1) Fostering economic growth is essential to 
sustaining the impact of United States development 
assistance. 
(2) United States development assistance must 
be supplemented by developmentally beneficial pri-
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556 
vate investment, which can be stimulated by United 
States-sponsored programs. 
(3) Attracting and retaining private investment 
requires improvements in the investment climate of 
developing countries, which require United States 
technical assistance. 
(4) Increasing exports is necessary for sus-
tained economic growth in most developing coun-
tries, because domestic consumption is usually inad-
equate to stimulate and sustain increases in gross 
domestic product, employment, and personal income. 
(5) For most developing countries, receipt of 
additional loans would be counterproductive, exacer-
bating existing high debt levels that consume scarce 
domestic financial resources. 
SEC. 7002. AUTHORITY FOR COORDINATION. 
(a) IDENTIFICATION OF PRIORITY COUNTRIES.—In 
preparing the United States Strategy for Global Develop-
ment under section 1017, the Interagency Policy Com-
mittee on Global Development shall identify a list of pri-
ority countries which would substantially benefit from 
United States programs to stimulate private investment 
flows and to provide technical assistance to attract and 
sustain such investment, taking into account each coun-
try’s— 
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557 
(1) high-level political leadership and commit-
ment to development progress; 
(2) potential for rapid and sustained economic 
growth; and 
(3) importance to United States national inter-
ests and development goals. 
(b) JOINT COUNTRY ACTION PLAN.—For each coun-
try identified as a priority country under subsection (a), 
the Interagency Policy Committee on Global Development 
shall— 
(1) undertake a rigorous joint analysis of con-
straints to growth, in partnership with the priority 
country and in consultation with the United States, 
international, and local private sectors, the donor 
community, civil society organizations, and relevant 
experts; 
(2) develop a joint country action plan that out-
lines potential tools, reforms, technical assistance, 
and resources that can be applied over the next five 
years to address the highest-priority constraints to 
growth; 
(3) coordinate and integrate the joint country 
action plan with Country Development Cooperation 
Strategies and related policies and programs; and 
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558 
(4) establish high-level mutual accountability 
for implementation, including through transparency 
and fact-based monitoring and evaluation. 
(c) DIRECTION OF RESOURCES.—The Interagency 
Policy Committee on Global Development may direct the 
resources of the Department of State, the United States 
Agency for International Development, the Overseas Pri-
vate Investment Corporation, the Trade and Development 
Agency, and the Millennium Challenge Corporation to be 
made available to carry out the country plan. 
Subtitle A—Overseas Private 
Investment Corporation 
SEC. 7101. CREATION AND PURPOSE. 
(a) CREATION.—There is established the Overseas 
Private Investment Corporation (in this subtitle referred 
to as the ‘‘Corporation’’), which shall be an agency of the 
United States under the policy guidance of the Secretary 
of State and the Interagency Policy Committee on Global 
Development. 
(b) PURPOSE.— 
(1) IN GENERAL.—The primary purpose of the 
Corporation shall be to mobilize and facilitate the 
participation of United States private capital in the 
economic and social development of less developed 
countries, thereby complementing the foreign policy 
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559 
and development assistance objectives of the United 
States. 
(2) RESPONSIBILITIES.—In carrying out its 
purpose, the Corporation shall undertake— 
(A) to conduct financing, insurance, and 
reinsurance operations on a self-sustaining 
basis, taking into account in its financing oper-
ations the economic and financial soundness of 
projects; 
(B) to use private credit and investment 
institutions and the Corporation’s guaranty au-
thority as the principal means of mobilizing 
capital investment funds; 
(C) to broaden private participation and 
revolve its funds through selling its direct loans 
to private investors whenever it can appro-
priately do so on satisfactory terms; 
(D) to conduct its insurance operations 
with due regard to principles of risk manage-
ment, including efforts to share its insurance 
risks and reinsurance risks; 
(E) to support the expansion of private en-
terprise and market-based economies; 
(F) to conduct its activities in coordination 
with the Interagency Policy Committee on Glob-
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560 
al Development, so as to carry out the foreign 
policy and development strategy of the United 
States; and 
(G) to advise and assist agencies of the 
United States and other organizations, both 
public and private, national and international, 
with respect to projects and programs relating 
to the development of private enterprise in less 
developed countries. 
SEC. 7102. PROHIBITIONS AND RESTRICTIONS. 
(a) PROHIBITIONS.—The Corporation shall— 
(1) decline to issue any contract of insurance or 
reinsurance, or any guaranty, or to enter into any 
agreement to provide financing for a proposed in-
vestment, if the Corporation determines that such 
investment is likely to cause a reduction in the em-
ployment of United States persons; 
(2) decline to insure, reinsure, guarantee, or fi-
nance any investment that would reduce exports of 
goods or services of United States origin or other-
wise negatively affect the balance of trade of the 
United States; 
(3) decline to insure, reinsure, guarantee, or fi-
nance any investment in connection with a project 
that the Corporation determines will negatively af-
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561 
fect the environment, or cause a health or safety 
hazard; and 
(4) decline to insure, reinsure, guarantee, or fi-
nance any investment in connection with a project 
that the Corporation determines will negatively af-
fect the human rights, employment, living standard, 
social welfare, or culture of any persons in the coun-
try where the project is to be located. 
(b) WORKER RIGHTS.— 
(1) PROTECTION
OF
WORKER
RIGHTS.—The 
Corporation may insure, reinsure, guarantee, or fi-
nance a project only if the country in which the 
project is to be undertaken is taking steps to adopt 
and implement laws that extend internationally rec-
ognized worker rights, as defined in section 507(4) 
of the Trade Act of 1974, to workers in that country 
(including any designated zone in that country). The 
Corporation shall also include the following lan-
guage, in substantially the following form, in all con-
tracts that the Corporation enters into with eligible 
investors to provide financial support under this sub-
title: 
‘‘The investor and all parties involved in the 
project agree to protect the right of employees of the 
foreign enterprise to exercise their right of associa-
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562 
tion and their right to organize and bargain collec-
tively. The investor and all parties involved in the 
project further agree to comply with core labor 
standards of the International Labor Organization 
and United Nations declarations on workers and 
worker rights relating to a minimum age for employ-
ment of children, acceptable conditions of work with 
respect to minimum wages, hours of work, and occu-
pational health and safety, and a prohibition on the 
use of forced labor.’’. 
(2) USE OF ANNUAL REPORTS ON WORKERS 
RIGHTS.—The Corporation shall, in making its de-
terminations under paragraph (1), use the reports 
submitted to the Congress pursuant to section 504 
of the Trade Act of 1974. 
(3) WAIVER.—Paragraph (1) shall not prohibit 
the Corporation from providing any insurance, rein-
surance, guaranty, or financing with respect to a 
country if the President determines that such activi-
ties by the Corporation would be in the national eco-
nomic or foreign policy interests of the United 
States. Any such determination shall be reported in 
writing to the Congress, together with the reasons 
for the determination. 
(c) ENVIRONMENTAL IMPACT.— 
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563 
(1) IN GENERAL.—The Board of Directors of 
the Corporation shall not consider or approve any 
action proposed to be taken by the Corporation that 
is likely to have adverse environmental impacts, un-
less for a period of at least 60 days before the date 
of the vote— 
(A) an environmental impact assessment, 
or initial environmental audit, analyzing the en-
vironmental impacts of the proposed action and 
of alternatives to the proposed action has been 
completed by the project applicant and made 
available to the Board of Directors; and 
(B) such assessment or audit has been 
made available to the public of the United 
States, locally affected groups in the host coun-
try, and host country nongovernmental organi-
zations. 
(2) COMPLIANCE
WITH
EXTRACTIVE
INDUS-
TRIES TRANSPARENCY INITIATIVE.—The Board of 
Directors shall ensure that the projects for which 
the Corporation provides insurance, reinsurance, a 
guaranty, or financing are in compliance with the 
Extractive Industries Transparency Initiative, or any 
successor international standard. 
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564 
SEC. 7103. CAPITAL OF THE CORPORATION. 
The capital stock of the Corporation issued before the 
date of the enactment of this Act and held by the Sec-
retary of the Treasury as of such date of enactment shall 
continue to be the capital stock of the Corporation on and 
after such date of enactment. 
SEC. 7104. ORGANIZATION AND MANAGEMENT. 
(a) STRUCTURE OF THE CORPORATION.—The Cor-
poration shall have a Board of Directors, a President, an 
Executive Vice President, and such other officers and staff 
as the Board of Directors may determine. 
(b) BOARD OF DIRECTORS.— 
(1) IN GENERAL.—All powers of the Corpora-
tion shall vest in and be exercised by or under the 
authority of its Board of Directors (hereinafter in 
this subtitle referred to as the ‘‘Board’’), which shall 
consist of 15 Directors, including the Chairman, 
with 8 Directors constituting a quorum for the 
transaction of business. 
(2) MEMBERSHIP.— 
(A) PRESIDENTIAL
APPOINTEES.—Eight 
Directors shall be appointed by the President of 
the United States, by and with the advice and 
consent of the Senate, and may not be officers 
or employees of the United States Government. 
Two of the 8 Directors appointed under the 
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565 
preceding sentence shall be experienced in inter-
national development, 2 shall be experienced in 
international labor and human rights, 2 shall be 
experienced in environmental protection, and 2 
shall be experienced in insurance and inter-
national finance. Each such Director shall be 
appointed for a term of not more than 3 years. 
The terms of not more than 3 such Directors 
may expire in any one year. Such Directors 
shall serve until their successors are appointed 
and qualified, and may be reappointed. 
(B) OFFICERS
OF
THE
GOVERNMENT.— 
The remaining Directors shall be principal offi-
cers of the United States Government, includ-
ing the President of the Corporation, the Ad-
ministrator of the Agency for International De-
velopment, and one such officer of the Depart-
ment of State, the Department of the Treasury, 
the Environmental Protection Agency, the De-
partment of Labor, and the Department of 
Commerce, who are designated by and serve at 
the pleasure of the President of the United 
States. 
(3) CHAIR AND VICE CHAIR.—There shall be a 
Chair and a Vice Chair of the Board, both of whom 
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566 
shall be designated by the President of the United 
States from among the Directors of the Board des-
ignated under paragraph (2)(B). 
(4) COMPENSATION.—All Directors who are not 
officers of the Corporation or officers of the United 
States Government shall be compensated at a rate 
equivalent to that of level IV of the Executive Sched-
ule under section 5315 of title 5, United States 
Code, when actually engaged in the business of the 
Corporation, and may be paid per diem in lieu of 
subsistence at the applicable rate prescribed in the 
standardized Government travel regulations, while 
away from their homes or usual places of business. 
(c) PRESIDENT OF THE CORPORATION.—The Presi-
dent of the Corporation shall be appointed by the Presi-
dent of the United States, by and with the advice and con-
sent of the Senate, and shall serve at the pleasure of the 
President. The President of the Corporation shall be its 
Chief Executive Officer and shall be responsible for the 
operations and management of the Corporation, subject 
to bylaws and policies established by the Board. 
(d) OFFICERS AND STAFF.— 
(1) IN GENERAL.—The Executive Vice Presi-
dent of the Corporation shall be appointed by the 
President of the United States, by and with the ad-
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567 
vice and consent of the Senate, and shall serve at 
the pleasure of the President. Other officers, attor-
neys, employees, and agents shall be selected and 
appointed by the Corporation, and shall be vested 
with such powers and duties as the Corporation may 
determine. 
(2) APPLICABILITY OF CIVIL SERVICE LAWS.— 
Of the persons employed by the Corporation under 
paragraph (1), not more than 20 may be appointed, 
compensated, or removed without regard to the civil 
service laws and regulations, except that under such 
regulations as the President of the United States 
may prescribe, officers and employees of the United 
States Government who are appointed to any of such 
positions may be entitled, upon removal from such 
position, except for cause, to reinstatement to the 
position occupied at the time of appointment or to 
a position of comparable grade and salary. Such po-
sitions shall be in addition to those otherwise au-
thorized by law, including those authorized by sec-
tion 5108 of title 5, United States Code. 
(e) INSPECTOR GENERAL.—The Board shall appoint 
and maintain an Inspector General in the Corporation, in 
accordance with the Inspector General Act of 1978 (5 
U.S.C. App.). 
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568 
SEC. 7105. INVESTMENT INSURANCE AND OTHER PRO-
GRAMS. 
(a) INVESTMENT INSURANCE.— 
(1) IN GENERAL.—The Corporation may issue 
insurance, upon such terms and conditions as the 
Corporation may determine, to eligible investors, as-
suring protection in whole or in part against any or 
all of the following risks with respect to projects 
which the Corporation has approved: 
(A) Inability to convert into United States 
dollars other currencies, or credits in such cur-
rencies, received as earnings or profits from the 
approved project, as repayment or return of the 
investment therein, in whole or in part, or as 
compensation for the sale or disposition of all 
or any part thereof. 
(B) Loss of investment, in whole or in 
part, in the approved project due to expropria-
tion or confiscation by action of a foreign gov-
ernment or any political subdivision thereof. 
(C) Loss due to war, revolution, insurrec-
tion, or civil strife. 
(D) Loss due to business interruption 
caused by any of the risks set forth in subpara-
graphs (A), (B), and (C). 
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569 
(2) SHARED
LIABILITIES.—Recognizing that 
major private investments in less developed friendly 
countries or areas are often made by enterprises in 
which there is multinational participation, including 
significant United States private participation, the 
Corporation may make arrangements with foreign 
governments (including agencies, instrumentalities, 
or political subdivisions thereof) or with multilateral 
organizations and institutions for sharing liabilities 
assumed under investment insurance for such invest-
ments and may in connection therewith issue insur-
ance to investors that do not otherwise qualify as eli-
gible investors, except that— 
(A) liabilities assumed by the Corporation 
under the authority of this paragraph shall be 
consistent with the purposes of this subtitle; 
and 
(B) the maximum share of liabilities so as-
sumed may not exceed the proportionate par-
ticipation by eligible investors in the project. 
(3) LIMITATION ON SINGLE INVESTORS.—Not 
more than 10 percent of the maximum contingent li-
ability of investment insurance that the Corporation 
is permitted to have outstanding under section 
7106(a)(1) may be issued to a single investor. 
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570 
(4) REPORTS
TO
CONGRESS
ON
CERTAIN 
RISKS.—Before issuing insurance for the first time 
for loss due to business interruption, and in each 
subsequent instance in which a significant expansion 
is proposed in the type of risk to be insured under 
the definition of ‘‘civil strife’’ or ‘‘business interrup-
tion’’, the Corporation shall, at least 60 days before 
such insurance is issued, submit to the Committee 
on Foreign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of Rep-
resentatives a report with respect to such insurance, 
including a thorough analysis of the risks to be cov-
ered, anticipated losses, and proposed rates and re-
serves and, in the case of insurance for loss due to 
business interruption, an explanation of the under-
writing basis upon which the insurance is to be of-
fered. Any such report with respect to insurance for 
loss due to business interruption shall be considered 
in accordance with the procedures applicable to re-
programming notifications pursuant to section 8401 
of this Act. 
(b) INVESTMENT GUARANTIES.—The Corporation 
may issue to eligible investors guaranties of loans and 
other investments made by such investors assuring against 
loss due to such risks and upon such terms and conditions 
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571 
as the Corporation may determine, subject to the fol-
lowing: 
(1) Such guaranties on other than loan invest-
ments may not exceed 75 percent of such invest-
ment. 
(2) Except for loan investments for credit 
unions made by eligible credit unions or credit union 
associations, the aggregate amount of investment 
(exclusive of interest and earnings) so guaranteed 
with respect to any project may not exceed, at the 
time of issuance of any such guaranty, 75 percent 
of the total investment committed to any such 
project as determined by the Corporation, such de-
termination to be conclusive for purposes of the Cor-
poration’s authority to issue any such guaranty. 
(3) Not more than 15 percent of the maximum 
contingent liability of investment guaranties that the 
Corporation is permitted to have outstanding under 
section 7106(a)(1) may be issued to a single inves-
tor. 
(c) DIRECT LOANS.— 
(1) AUTHORITY.—The Corporation may make 
loans in United States dollars repayable in dollars or 
loans in foreign currencies (including, without re-
gard to section 1306 of title 31, United States Code, 
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572 
such foreign currencies that the Secretary of the 
Treasury may determine to be excess to the normal 
requirements of the United States and the Director 
of the Office of Management and Budget may allo-
cate) to firms privately owned or of mixed private 
and public ownership, upon such terms and condi-
tions as the Corporation may determine. 
(2) PORTION OF LOAN FOR TECHNOLOGIES AND 
PROJECTS IN THE UNITED STATES.—The Corpora-
tion may designate up to 25 percent of any loan 
under this subsection for use in the development or 
adaptation in the United States of new technologies 
or new products or services that are to be used in 
the project for which the loan is made and are likely 
to contribute to the economic or social development 
of less developed countries. 
(3) RESTRICTION ON EXTRACTION OF OIL, GAS, 
AND MINERALS.—No loan may be made under this 
subsection to finance any operation for the extrac-
tion of oil or gas. The aggregate amount of loans 
under this subsection to finance operations for the 
mining or other extraction of any deposit of ore or 
other nonfuel minerals may not in any fiscal year ex-
ceed $4,000,000. 
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573 
(d) INVESTMENT ENCOURAGEMENT.—The Corpora-
tion may initiate and support through financial participa-
tion, incentive grant, or otherwise, and on such terms and 
conditions as the Corporation may determine, the identi-
fication, assessment, surveying, and promotion of private 
investment opportunities, using wherever feasible and ef-
fective the facilities of private investors, except that— 
(1) the Corporation may not finance any survey 
to ascertain the existence, location, extent, or quality 
of, or to determine the feasibility of undertaking op-
erations for the extraction of, oil or gas; and 
(2) expenditures financed by the Corporation 
during any fiscal year on surveys to ascertain the ex-
istence, location, extent, or quality of, or to deter-
mine the feasibility of undertaking operations for the 
extraction of, nonfuel minerals may not exceed 
$200,000. 
(e) SPECIAL ACTIVITIES.—The Corporation may ad-
minister and manage special projects and programs, in-
cluding programs of financial and advisory support that 
provide private technical, professional, or managerial as-
sistance in the development of human resources, skills, 
technology, capital savings, and intermediate financial and 
investment institutions and cooperatives and including the 
initiation of incentives, grants, and studies for renewable 
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574 
energy and other small business activities. The funds for 
such projects and programs may, with the Corporation’s 
concurrence, be transferred to it for such purposes under 
the authority of section 10505(a) or from other sources, 
public or private. Administrative funds may not be made 
available for incentives, grants, and studies for renewable 
energy and other small business activities. 
(f) OTHER INSURANCE FUNCTIONS.— 
(1) REINSURANCE, ETC.—The Corporation may 
make and carry out contracts of insurance or rein-
surance, or agreements to associate or share risks, 
with insurance companies, financial institutions, any 
other persons, or groups thereof, and employing 
such companies, institutions, persons, or groups 
where appropriate, as its agent, or acting as their 
agent, in the issuance and servicing of insurance, the 
adjustment of claims, the exercise of subrogation 
rights, the ceding and accepting of reinsurance, and 
in any other matter incident to an insurance busi-
ness, except that such agreements and contracts 
shall be consistent with the purposes of the Corpora-
tion set forth in section 7101 and shall be on equi-
table terms. 
(2) RISK
SHARING.—The Corporation may 
enter into pooling or other risk-sharing agreements 
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575 
with multinational insurance or financing agencies 
or groups of such agencies. 
(3) HOLDING
OWNERSHIP
INTERESTS.—The 
Corporation may hold an ownership interest in any 
association or other entity established for the pur-
poses of sharing risks under investment insurance. 
(4) REINSURANCE OF CERTAIN LIABILITIES.— 
The Corporation may issue, upon such terms and 
conditions as it may determine, reinsurance of liabil-
ities assumed by other insurers or groups thereof 
with respect to risks referred to in subsection (a)(1). 
(5) LIMIT ON REINSURANCE.—The amount of 
reinsurance of liabilities under this subtitle that the 
Corporation may issue may not in the aggregate ex-
ceed at any one time an amount equal to the amount 
authorized for the maximum contingent liability out-
standing at any one time under section 7106(a)(1). 
All reinsurance issued by the Corporation under this 
subsection shall require that the reinsured party re-
tain for that party’s own account specified portions 
of liability, whether first loss or otherwise. 
(g) LOCAL CURRENCY GUARANTIES FOR ELIGIBLE 
INVESTORS.—The Corporation may issue to eligible inves-
tors, or to local financial institutions, guaranties, denomi-
nated in currencies other than United States dollars, of 
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576 
loans and other investments made to projects sponsored 
by or significantly involving eligible investors, assuring 
against loss due to such risks and upon such terms and 
conditions as the Corporation may determine, for projects 
that the Corporation determines to have significant devel-
opmental effects or as the Corporation determines to be 
necessary or appropriate to carry out the purposes of this 
subtitle. 
(h) PUBLIC HEARINGS.— 
(1) ANNUAL
PUBLIC
HEARINGS.—The Board 
shall hold at least one public hearing each year in 
order to afford an opportunity for any person to 
present views as to whether the Corporation is car-
rying out its activities in accordance with section 
7101 and this section or whether any investment in 
a particular country should have been or should be 
extended insurance, reinsurance, guaranties, or fi-
nancing under this subtitle. 
(2) HEARINGS
IN
CONNECTION
WITH
BOARD 
MEETINGS.—In conjunction with each meeting of its 
Board, the Corporation shall hold a public hearing 
in order to afford an opportunity for any person to 
present views regarding the activities of the Cor-
poration. Such views shall be made part of the 
record. 
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577 
SEC. 7106. ISSUING AUTHORITY; DIRECT LOAN AUTHORITY; 
DISCHARGE OF LIABILITIES. 
(a) ISSUING AUTHORITY.— 
(1) MAXIMUM
CONTINGENT
LIABILITY.—The 
maximum contingent liability outstanding at any one 
time pursuant to insurance issued under section 
7105(a), and the amount of financing issued under 
subsections (b) and (c) of section 7105, may not ex-
ceed in the aggregate $50,000,000,000. 
(2) PAYMENT OF SUBSIDY AND ADMINISTRA-
TIVE
COSTS.—Subject to spending authority pro-
vided in appropriations Acts pursuant to section 
504(b) of the Federal Credit Reform Act of 1990, 
the Corporation may transfer such sums as are nec-
essary from its noncredit activities to pay for the 
subsidy and administrative costs of the investment 
guaranties and direct loan programs under sub-
sections (b) and (c) of section 7105. 
(b) NONCREDIT
ACCOUNT
REVOLVING
FUND.— 
There is established in the Treasury of the United States 
a noncredit account revolving fund, which shall be avail-
able for discharge of liabilities, as provided in subsection 
(c), until such time as all such liabilities have been dis-
charged or have expired or until all of the fund has been 
expended in accordance with the provisions of this section. 
Such fund shall be funded by— 
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578 
(1) the funds remaining, on the day before the 
date of the enactment of this Act, in the noncredit 
account revolving fund established under section 
235(c) of the Foreign Assistance Act of 1961; 
(2) such sums as are appropriated pursuant to 
subsection (d) for such purpose; and 
(3) additional amounts as may be transferred 
to such fund pursuant to section 7107. 
(c) ORDER OF PAYMENTS TO DISCHARGE LIABIL-
ITIES.—Any payment made to discharge liabilities under 
investment insurance or reinsurance issued under section 
7105 or under similar predecessor guaranty authority, 
shall be paid first out of the noncredit account revolving 
fund, as long as such fund remains available, and there-
after out of funds made available pursuant to subsection 
(d) of this section. Any payments made to discharge liabil-
ities under guaranties issued under subsection (b) or (c) 
of section 7105 shall be paid in accordance with the Fed-
eral Credit Reform Act of 1990. 
(d) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There are authorized to be 
appropriated to the Corporation, to remain available 
until expended, such amounts as may be necessary 
from time to time to replenish or increase the non-
credit account revolving fund, to discharge the liabil-
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579 
ities under insurance, reinsurance, or guaranties 
issued by the Corporation or issued under prede-
cessor guaranty authority, or to discharge obliga-
tions of the Corporation purchased by the Secretary 
of the Treasury pursuant to this subsection. 
(2) LIMITATION ON APPROPRIATIONS.—No ap-
propriations may be made to augment the noncredit 
account revolving fund until the amount of funds in 
the noncredit account revolving fund is less than 
$25,000,000. Any appropriations to augment the 
noncredit account revolving fund shall then only be 
made either pursuant to specific authorization en-
acted after the date of the enactment of this Act, or 
to satisfy the full faith and credit provision of sec-
tion 7108(c). 
(3) ISSUANCE OF TREASURY INSTRUMENTS.— 
In order to discharge liabilities under investment in-
surance or reinsurance, the Corporation may issue 
from time to time for purchase by the Secretary of 
the Treasury its notes, debentures, bonds, or other 
obligations, except that the aggregate amount of 
such obligations outstanding at any one time may 
not exceed $100,000,000. Any such obligation shall 
be repaid to the Treasury within one year after the 
date of issue of such obligation. Any such obligation 
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580 
shall bear interest at a rate determined by the Sec-
retary of the Treasury, taking into consideration the 
current average market yield on outstanding market-
able obligations of the United States of comparable 
maturities during the month preceding the issuance 
of the obligation. The Secretary of the Treasury 
shall purchase any obligation of the Corporation 
issued under this subsection, and for such purchase 
the Secretary may use as a public debt transaction 
the proceeds of the sale of any securities issued 
under chapter 31 of title 31, United States Code (or 
the Second Liberty Bond Act), after the date of the 
enactment of the Overseas Private Investment Cor-
poration Amendments Act of 1974. The purpose for 
which securities may be issued under such chapter 
shall include any such purchase. 
SEC. 7107. INCOME AND REVENUES. 
In order to carry out the purposes of the Corporation, 
all revenues and income transferred to or earned by the 
Corporation, from whatever source derived, shall be held 
by the Corporation and shall be available to carry out its 
purposes, including without limitation— 
(1) payment of all expenses of the Corporation, 
including investment promotion expenses; 
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581 
(2) transfers and additions to the insurance or 
guaranty reserves, noncredit account revolving fund, 
and such other funds or reserves as the Corporation 
may establish, at such time and in such amounts as 
the Board may determine; and 
(3) payment of dividends, on capital stock, 
which shall consist of and be paid from net earnings 
of the Corporation after payments, transfers, and 
additions under paragraphs (1) and (2). 
SEC. 7108. GENERAL PROVISIONS RELATING TO INSUR-
ANCE, 
GUARANTY, 
AND 
FINANCING 
PRO-
GRAM. 
(a) AGREEMENT WITH HOST COUNTRY.—Insurance, 
guaranties, and reinsurance issued under this subtitle 
shall cover investment made in connection with projects 
in any less developed country with the government to 
which the President of the United States has agreed to 
institute a program for insurance, guaranties, or reinsur-
ance. 
(b) PROTECTION OF INTERESTS OF CORPORATION.— 
The Corporation shall determine that suitable arrange-
ments exist for protecting the interest of the Corporation 
in connection with any insurance, guaranty, or reinsurance 
issued under this subtitle, including arrangements con-
cerning ownership, use, and disposition of the currency, 
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582 
credits, assets, or investments on account of which pay-
ment under such insurance, guaranty, or reinsurance is 
to be made, and right, title, claim, or cause of action exist-
ing in connection therewith. 
(c) FULL FAITH
AND CREDIT
OF
THE UNITED 
STATES.—All insurance, reinsurance, and guaranties 
issued under this subtitle or predecessor guaranty author-
ity shall constitute obligations, in accordance with the 
terms of such insurance, reinsurance, or guaranties, of the 
United States of America and the full faith and credit of 
the United States of America is hereby pledged for the 
full payment and performance of such obligations. 
(d) FEES.— 
(1) IN
GENERAL.—Fees may be charged for 
providing insurance, reinsurance, guaranties, financ-
ing, and other services under this subtitle in 
amounts to be determined by the Corporation. In 
the event fees charged for insurance, reinsurance, 
guaranties, financing, or other services are reduced, 
fees to be paid under existing contracts for the same 
type of insurance, reinsurance, guaranties, financing, 
or services and for similar guaranties issued under 
predecessor guaranty authority may be reduced. 
(2) CREDIT TRANSACTION COSTS.—Project-spe-
cific transaction costs incurred by the Corporation 
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583 
relating to loan obligations or loan guaranty commit-
ments covered by the provisions of the Federal Cred-
it Reform Act of 1990, including the costs of 
project-related travel and expenses for legal rep-
resentation provided by persons outside the Corpora-
tion and other similar expenses that are charged to 
the borrower, shall be paid out of the appropriate fi-
nance account established pursuant to section 
505(b) of that Act. 
(3) NONCREDIT
TRANSACTION
COSTS.—Fees 
paid for the project-specific transaction costs and 
other direct costs associated with services provided 
to specific investors or potential investors pursuant 
to section 7105 (other than those covered in para-
graph (2)), including financing, insurance, reinsur-
ance, missions, seminars, conferences, and other 
preinvestment services, shall be available for obliga-
tion for the purposes for which they were collected, 
notwithstanding any other provision of law. 
(e) LIMITATION ON TERM OF ASSISTANCE.—No in-
surance, guaranty, or reinsurance of any equity invest-
ment may extend beyond 20 years from the date of 
issuance. 
(f) LIMITATION ON COMPENSATION.— 
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585 
as to at least 10 percent of the total investment of 
the insured and its affiliates in the project is borne 
by the insured and such affiliates, except that limita-
tion shall not apply to direct insurance or reinsur-
ance of loans by banks or other financial institutions 
to unrelated parties. 
(g) NO PAYMENT WHEN FRAUD INVOLVED.—No 
payment may be made under any guaranty, insurance, or 
reinsurance issued under this subtitle for any loss arising 
out of fraud or misrepresentation for which the party seek-
ing payment is responsible. 
(h) LIMITATION ON INVESTMENT IN FOREIGN INSTI-
TUTIONS.—Insurance, guaranties, or reinsurance issued 
under this subtitle of a loan or equity investment of an 
eligible investor in a foreign bank, finance company, or 
other credit institution shall extend only to such loan or 
equity investment and not to any individual loan or equity 
investment made by such foreign bank, finance company, 
or other credit institution. 
(i) SETTLEMENT OF CLAIMS.—Claims arising as a 
result of insurance, reinsurance, or guaranty operations 
under this subtitle or under predecessor guaranty author-
ity may be settled, and disputes arising as a result thereof 
may be arbitrated with the consent of the parties, on such 
terms and conditions as the Corporation may determine. 
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586 
Payment made pursuant to any such settlement, or as a 
result of an arbitration award, shall be final and conclu-
sive, notwithstanding any other provision of law. 
(j) 
PRESUMPTION
OF
COMPLIANCE
OF
CON-
TRACTS.—Each guaranty contract executed by such offi-
cer or officers as may be designated by the Board shall 
be conclusively presumed to be issued in compliance with 
the requirements of this subtitle. 
(k) CONSIDERATION OF EFFECT ON BALANCE OF 
PAYMENTS.—In making a determination to issue insur-
ance, guaranties, or reinsurance under this subtitle, the 
Corporation shall consider the possible adverse effect of 
the dollar investment under such insurance, guaranty, or 
reinsurance upon the balance of payments of the United 
States. 
(l) VIOLATION OF FOREIGN CORRUPT PRACTICES 
ACT.— 
(1) IN GENERAL.—No payment may be made 
under any insurance or reinsurance that is issued 
under this subtitle for any loss occurring with re-
spect to a project, if the preponderant cause of such 
loss was an act by the investor seeking payment 
under this subtitle, by a person possessing majority 
ownership and control of the investor at the time of 
the act, or by any agent of such investor or control-
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ling person, and a court of the United States has en-
tered a final judgment that such act constituted a 
violation under the Foreign Corrupt Practices Act of 
1977 or section 30A of the Securities Exchange Act 
of 1934. 
(2) REGULATIONS TO BAR ELIGIBILITY.—The 
Corporation shall adopt regulations setting forth ap-
propriate conditions under which any person con-
victed under the Foreign Corrupt Practices Act of 
1977 or section 30A of the Securities Exchange Act 
of 1934 for an offense related to a project insured 
or otherwise supported by the Corporation shall be 
suspended, for a period of not more than 5 years, 
from eligibility to receive any insurance, reinsurance, 
guaranty, loan, or other financial support authorized 
by this subtitle. 
(m) NOTIFICATION OF HOST COUNTRY OF HEALTH, 
SAFETY, AND ENVIRONMENTAL STANDARDS.— 
(1) NOTIFICATION.— 
(A) IN GENERAL.—Before finally providing 
insurance, reinsurance, guaranties, or financing 
under this subtitle for any environmentally sen-
sitive investment in connection with a project in 
a country, the Corporation shall notify appro-
priate government officials of that country of— 
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(i) all guidelines and other standards 
adopted by the International Bank for Re-
construction and Development and any 
other international organization relating to 
the public health or safety or the environ-
ment that are applicable to the project; 
and 
(ii) to the maximum extent prac-
ticable, any restriction under any law of 
the United States relating to public health 
or safety or the environment that would 
apply to the project if the project were un-
dertaken in the United States. 
(B) CONTENTS
OF
NOTIFICATION.—The 
notification under the subparagraph (A) shall 
include a summary of the guidelines, standards, 
and restrictions referred to in clauses (i) and 
(ii) of subparagraph (A). 
(2) CONSIDERATION OF COMMENTS.—Before fi-
nally providing insurance, reinsurance, guaranties, 
or financing for any investment subject to paragraph 
(1), the Corporation shall take into account any 
comments it receives on the project involved that the 
Corporation considers relevant to such project. 
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589 
(n) PENALTIES
FOR FRAUD.—Whoever knowingly 
makes any false statement or report, or willfully over-
values any land, property, or security, for the purpose of 
influencing in any way the action of the Corporation with 
respect to any insurance, reinsurance, guaranty, loan, eq-
uity investment, or other activity of the Corporation under 
section 7105, or any change or extension of any such in-
surance, reinsurance, guaranty, loan, equity investment, 
or activity, by renewal, deferment of action, or otherwise, 
or the acceptance, release, or substitution of security 
therefor, shall be fined not more than $1,000,000 or im-
prisoned not more than 30 years, or both. 
(o) USE OF LOCAL CURRENCIES.—Direct loans or in-
vestments made in order to preserve the value of funds 
received in inconvertible foreign currency by the Corpora-
tion as a result of activities conducted pursuant to section 
7105(a) shall not be considered in determining whether 
the Corporation has made or has outstanding loans or in-
vestments to the extent of any limitation on obligations 
and equity investment imposed by or pursuant to this sub-
title. The provisions of section 504(b) of the Federal Cred-
it Reform Act of 1990 shall not apply to direct loan obliga-
tions made with funds described in this subsection. 
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(c) SURPLUS COMMODITIES.—None of the funds 
made available under this Act shall be used to establish 
or expand production of any commodity or extraction of 
any mineral for export by a foreign country if— 
(1) the commodity or mineral is likely to be in 
surplus on world markets at the time the resulting 
productive or extractive capacity is expected to be-
come operative; and 
(2) the assistance will cause substantial injury 
to United States producers of the same, similar, or 
competing commodity or mineral. 
(d) EXCEPTIONS.—The prohibition contained in sub-
section (c) shall not apply— 
(1) if the President determines that— 
(A) the benefits to industry and employ-
ment in the United States are likely to out-
weigh the injury to United States producers of 
the same, similar, or competing commodity or 
mineral; or 
(B) the foreign country is a low-income 
country for which production of the commodity 
or extraction of the mineral would contribute 
substantially to the reduction of poverty; 
(2) to activities in a low-income country that 
does not export on a consistent basis the commodity 
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