578 
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-
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 
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579 
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-
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, 
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580 
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-
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-
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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.— 
(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— 
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582 
(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. 
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. 
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583 
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 
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 
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584 
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 
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 
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585 
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-
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. 
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586 
(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.). 
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-
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587 
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). 
(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 
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588 
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. 
(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-
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589 
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 9401 
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 
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. 
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590 
(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, 
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 
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591 
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. 
(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 
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592 
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 
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 11505(a) or from other sources, 
public or private. Administrative funds may not be made 
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593 
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 
with multinational insurance or financing agencies 
or groups of such agencies. 
(3) HOLDING
OWNERSHIP
INTERESTS.—The 
Corporation may hold an ownership interest in any 
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638 
East European Democracy (SEED) Act of 1989 (22 
U.S.C. 5421). 
SEC. 7307. EXPERIENCE OF OTHER ENTERPRISE FUNDS. 
In implementing this subtitle, the Administrator shall 
ensure that the articles of incorporation of each enterprise 
fund (including provisions specifying the responsibilities of 
the board of directors of the enterprise fund), the terms 
of United States Government grant agreements with the 
enterprise fund, and United States Government oversight 
of the enterprise fund are, to the maximum extent prac-
ticable, consistent with the Articles of Incorporation of, 
the terms of grant agreements with, and the oversight of 
the Enterprise Funds established pursuant to section 201 
of the Support for East European Democracy (SEED) 
Act of 1989 (22 U.S.C. 5421) and comparable provisions 
of law. 
TITLE 
IX—STRATEGIC 
PLAN-
NING, 
MONITORING 
AND 
EVALUATION, AND REPORT-
ING 
Subtitle A—Strategic Planning 
SEC. 9101. QUADRENNIAL DIPLOMACY, DEVELOPMENT, 
AND SECURITY REVIEW. 
(a) REVIEW OF DIPLOMACY, DEVELOPMENT, AND 
SECURITY.— 
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