230
(B) The officers, employees, and agents ap-
pointed under this subsection shall have such func-
tions as the Corporation may determine.
(C) Of the officers, employees, and agents ap-
pointed under this paragraph, 20 may be appointed,
compensated or removed without regard to civil serv-
ice laws and regulations.
(D) Under such regulations as the President of
the United States may prescribe, any individual ap-
pointed under subparagraph (C) may be entitled,
upon removal (except for cause) from the position to
which the appointment was made, to reinstatement
to the position occupied by that individual at the
time of appointment or to a position of comparable
grade and pay.
SEC. 8543. 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, except for pay-
ments to the financing account, shall be held by the Cor-
poration and shall be available to carry out its purposes,
including without limitation—
(1) payment of all expenses of the Corporation,
including investment promotion expenses;
231
(2) transfers and additions to the insurance re-
serve, financing accounts and such other funds, ac-
counts 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. 8544. GENERAL PROVISIONS RELATING TO INSUR-
ANCE AND FINANCING PROGRAM.
(a) AGREEMENTS WITH COUNTRIES.—Insurance, re-
insurance, and guarantees issued under chapter 1 of title
V shall not cover investment made in connection with
projects in any country or area unless the President of
the United States has agreed with the government of such
country or area to institute a program for such insurance,
reinsurance, or guarantees.
(b) PROTECTION OF INTERESTS OF THE CORPORA-
TION.—The Corporation shall determine that suitable ar-
rangements exist for protecting the interest of the Cor-
poration in connection with any insurance, reinsurance, or
guarantee issued under chapter 1 of title V, including ar-
rangements concerning ownership, use, and disposition of
the currency, credits, assets, or investments on account
232
of which payment under such insurance, guarantee, or re-
insurance is to be made, and any right, title, claim, or
cause of action existing in connection therewith.
(c) FULL FAITH AND CREDIT PLEDGED.—All guar-
antees issued pursuant to predecessor guarantee author-
ity, and all insurance, reinsurance, and guarantees issued
pursuant to chapter 1 of title V shall constitute obliga-
tions, in accordance with the terms of such insurance, re-
insurance, or guarantees, of the United States of America,
and the full faith and credit of the United States of Amer-
ica is hereby pledged for the full payment and performance
of such obligations.
(d) FEES.—Fees may be charged for providing insur-
ance, reinsurance, financing, and other services under
chapter 1 of title V in amounts to be determined by the
Corporation. Fees paid for project-specific transaction
costs and other transaction costs, including but not limited
to project-related travel and expenses for legal representa-
tion, associated with services provided to specific investors
or potential investors pursuant to section 5102, including
financing, insurance, reinsurance, missions, seminars, con-
ferences, and other pre-investment services, shall be avail-
able for obligation for the purposes for which they were
collected notwithstanding any other provision of law.
Transaction costs relating to investment financing com-
233
mitments entered into pursuant to section 5102(b) shall
be considered cash flows from the Government resulting
from financing commitments and shall be paid out of the
appropriate financing account established pursuant to sec-
tion 505(b) of the Federal Credit Reform Act of 1990.
(e) INSURANCE, REINSURANCE, AND
FINANCING
LIMITED TO 20 YEARS.—No insurance, reinsurance, or fi-
nancing of any equity investment under chapter 1 of title
V shall extend beyond 20 years from the date on which
such insurance, reinsurance, or financing is issued.
(f) AMOUNT OF COMPENSATION PAID ON CLAIMS.—
Compensation for any insurance, reinsurance, or financing
issued under chapter 1 of title V shall not exceed the dol-
lar value, as of the date of the investment, of the invest-
ment made in the project with the approval of the Cor-
poration plus interest, earnings, or profits actually ac-
crued on such investment to the extent provided by such
insurance, reinsurance, or guarantee, except that the Cor-
poration may provide that—
(1) appropriate adjustments in the insured dol-
lar value may be made to reflect the replacement
cost of project assets;
(2) compensation for a claim of loss under in-
surance of an equity investment may be computed
234
on the basis of the net book value attributable to
such equity investment on the date of loss; and
(3) compensation for loss due to business inter-
ruption may be computed on a basis to be deter-
mined by the Corporation which reflects amounts
lost.
Notwithstanding the preceding sentence, the Corporation
shall limit the amount of direct insurance and reinsurance
issued under section 5102 or 5103 so that risk of loss
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 this limitation
shall not apply to direct insurance or reinsurance of loans
by banks or other financial institutions to unrelated par-
ties.
(g) LIMITATION WITH RESPECT TO FOREIGN CRED-
IT INSTITUTIONS.—Insurance, guarantees, or reinsurance
of a loan or equity investment of an eligible investor in
a foreign bank, finance company, or other credit institu-
tion 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 in-
stitution.
(h) SETTLEMENT AND ARBITRATION OF CLAIMS.—
Claims arising as a result or insurance, reinsurance, or
235
guarantee operations under chapter 1 of title V or under
predecessor guarantee authority may be settled, and dis-
putes arising as a result thereof may be arbitrated with
the consent of the parties, on such terms and conditions
as the Corporation may determine. Payment made pursu-
ant to any such settlement, or as a result of an arbitration
award, shall be final and conclusive notwithstanding any
other provision of law.
(i) CONTRACTS
PRESUMED
TO
COMPLY
WITH
ACT.—Each insurance, reinsurance, or guarantee contract
executed by such officer or officers as may be designated
by the Board shall be conclusively presumed to be issued
in compliance with the requirements of this Act.
(j) PENALTIES
FOR FRAUD.—Whoever knowingly
makes any false statement or report, or willfully
overvalues any land, property, or security, for the purpose
of influencing in any way the action of the Corporation
with respect to any insurance, reinsurance, guarantee,
loan, equity investment, or other activity of the Corpora-
tion under section 5102 or any change or extension of any
such insurance, reinsurance, guarantee, loan, equity in-
vestment, or activity, by renewal, deferment of action or
otherwise, or the acceptance, release, or substitution of se-
curity therefor, shall be fined not more than $1,000,000
or imprisoned not more than 30 years, or both.
236
(k) USE OF LOCAL CURRENCIES.—Direct loans or
investments 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
5102(a) shall not be considered in determining whether
the Corporation has made or has outstanding loans, guar-
anties, or investments to the extent of any limitation on
obligations, commitments, and equity investment imposed
by or pursuant to chapter 1 of title V. The provision of
section 504(b) of the Federal Credit Reform Act of 1990
shall not apply to direct loan obligations made with funds
described in this subsection.
(l) TERMINATION.—Provisions of this or any other
Act requiring the termination of assistance under this or
any other Act shall not be construed to require the termi-
nation of contracts or commitments that were entered or
were being processed under chapter 1 of title V prior to
the effective date of the termination of assistance.
SEC. 8545. GENERAL PROVISIONS AND POWERS.
(a) PRINCIPAL OFFICE.—The Corporation shall have
its principal office in the District of Columbia and shall
be deemed, for purposes of venue in civil actions, to be
a resident of the District of Columbia.
(b) AUDITS.—
237
(1) IN
GENERAL.—The Corporation shall be
subject to the applicable provisions of chapter 91 of
title 31, United States Code, except as otherwise
provided in this Act.
(2) INDEPENDENT
AUDIT.—An independent
certified public accountant shall perform a financial
and compliance audit of the financial statements of
the Corporation each year, in accordance with gen-
erally accepted Government auditing standards for a
financial and compliance audit. The independent cer-
tified public accountant shall report the results of
such audit to the Board. The financial statements of
the Corporation shall be presented in accordance
with generally accepted accounting principles. These
financial statements and the report of the account-
ant shall be included in a report which contains, to
the extent applicable, the information identified in
section 9106 of title 31, United States Code, and
which the Corporation shall submit to the Congress
not later than 61⁄2 months after the end of the last
fiscal year covered by the audit. The Comptroller
General may review the audit conducted by the ac-
countant and report to the Congress in the manner
and at such times as the Comptroller General con-
siders necessary.
238
(3) AUDIT BY COMPTROLLER GENERAL.—The
Comptroller General shall, if the Comptroller Gen-
eral considers it necessary or upon the request of the
Congress, audit the financial statements of the Cor-
poration in the manner provided in paragraph (2).
(4) 
AVAILABILITY
OF
INFORMATION.—All
books, accounts, financial records, reports, files,
work papers, and property belonging to or in use by
the Corporation and the accountant who conducts
the audit under paragraph (2), which are necessary
for purposes of this subsection, shall be made avail-
able to the representatives of the General Account-
ing Office designated by the Comptroller General.
(c) POWERS.—To carry out the purposes of chapter
1 of title V, the Corporation is authorized—
(1) to adopt and use a corporate seal, which
shall be judicially noticed;
(2) to sue and be sued in its corporate name;
(3) to adopt, amend, and repeal bylaws govern-
ing the conduct of its business and the performance
of the powers and duties granted to or imposed upon
it by law;
(4) to acquire, hold, or dispose of, upon such
terms and conditions as the Corporation may deter-
239
mine, any property, real, personal, or mixed, tan-
gible or intangible, or any interest therein;
(5) to invest funds derived from fees and other
revenues in obligations of the United States and to
use the proceeds therefrom, including earnings and
profits, as it considers appropriate;
(6) to indemnify directors, officers, employees,
and agents of the Corporation for liabilities and ex-
penses incurred in connection with their Corporation
activities;
(7) to require bonds of officers, employees, and
agents and to pay the premiums therefor;
(8) notwithstanding any other provision of law,
to represent itself or to contract for representation
in all legal and arbitral proceedings;
(9) to enter into limited-term contracts with na-
tionals of the United States for personal services to
carry out activities in the United States and abroad
under section 5102;
(10) to purchase, discount, rediscount, sell, and
negotiate, with or without its endorsement or guar-
antee, and guarantee notes, participation certifi-
cates, and other evidence of indebtedness (except
that the Corporation shall not issue its own securi-
ties, except participation certificates for the purpose
240
of carrying out section 5101(c)(3), participation cer-
tificates in connection with transactions authorized
by 5102(b), or participation certificates as evidence
of indebtedness held by the Corporation in connec-
tion with settlement of claims under section
8544(h));
(11) to make and carry out such contracts and
agreements as are necessary and advisable in the
conduct of its business;
(12) to exercise any priority of the government
of the United States in collecting debts from the es-
tates of bankrupt, insolvent, or decedent parties;
(13) to determine the character of and the ne-
cessity for its obligations and expenditures, and the
manner in which they shall be incurred, allowed, and
paid, subject to provisions of law specifically applica-
ble to Government corporations;
(14) to collect or compromise any obligations
assigned to or held by the Corporation, including
any legal or equitable rights accruing to the Cor-
poration; and
(15) to take such actions as may be necessary
or appropriate to carry out the powers of the Cor-
poration.
(d) INSPECTOR GENERAL.—
241
(1) AUTHORITY.—The Inspector General of the
United States Agency for International Development
may conduct audits, investigations, and inspections
of all phases of the Corporation’s operations and ac-
tivities.
(2) RELATION
TO
PRESIDENT
OF
CORPORA-
TION.—The Inspector General shall report to and be
under the general supervision of the President of the
Corporation with respect to activities undertaken
pursuant to this subsection, except that the Presi-
dent of the Corporation shall not prevent or prohibit
the Inspector General from initiating, carrying out,
or completing any such activity in accordance with
the duties, authorities, and responsibilities contained
in the Inspector General Act of 1978 and any other
applicable law or regulation.
(3) EXPENSES.—The Inspector General shall be
reimbursed by the Corporation for all expenses in-
curred by the Inspector General in connection with
the Inspector General’s responsibilities under this
subsection.
(4) INSPECTOR GENERAL ACT.—For purposes
of the Inspector General Act of 1978, the Corpora-
tion shall continue to be considered a Federal entity
247
(B) For purposes of subparagraph (A)—
(i) in the case of insurance or a guarantee
for any loan investment, a final determination
of whether a person is an eligible investor may
be made at the time the insurance or guarantee
is issued; and
(ii) in the case of insurance or a guarantee
for any other investment, an investor must be
an eligible investor at the time a claim arises as
well as the time the insurance or guarantee is
issued.
(4) EXPROPRIATION.—The term ‘‘expropria-
tion’’ includes any abrogation, repudiation, or im-
pairment by a foreign government of its own con-
tract with an investor with respect to a project,
where such abrogation, repudiation, or impairment
is not caused by the investor’s own fault or mis-
conduct, and materially adversely affects the contin-
ued operation of the project.
(5) INVESTMENT.—The term ‘‘investment’’ in-
cludes any contribution or commitment of funds,
commodities, services, patents, processes, or tech-
niques, in the form of—
(A) a loan or loans to an approved project,