Export-Import Bank Reauthorization Act of 2012
PL 112-122 (H.R.2072), enacted 05/30/2012

126 STAT. 350 
PUBLIC LAW 112–122—MAY 30, 2012 
Public Law 112–122 
112th Congress 
An Act 
To reauthorize the Export-Import Bank of the United States, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Export-Import 
Bank Reauthorization Act of 2012’’. 
(b) TABLE OF CONTENTS.—The table of contents of this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Extension of authority. 
Sec. 3. Limitations on outstanding loans, guarantees, and insurance. 
Sec. 4. Export-Import Bank exposure limit business plan. 
Sec. 5. Study by the Comptroller General on the role of the Bank in the world econ-
omy and the Bank’s risk management. 
Sec. 6. Monitoring of default rates on Bank financing; reports on default rates; 
safety and soundness review. 
Sec. 7. Improvement and clarification of due diligence standards for lender part-
ners. 
Sec. 8. Non-subordination requirement. 
Sec. 9. Notice and comment for Bank transactions exceeding $100,000,000. 
Sec. 10. Categorization of purpose of loans and long-term guarantees in annual re-
port. 
Sec. 11. Negotiations to end export credit financing. 
Sec. 12. Publication of guidelines for economic impact analyses and documentation 
of such analyses. 
Sec. 13. Report on implementation of recommendations of the Government Account-
ability Office. 
Sec. 14. Examination of Bank support for small business. 
Sec. 15. Review and report on domestic content policy. 
Sec. 16. Improvement of method for calculating the effects of Bank financing on job 
creation and maintenance in the United States. 
Sec. 17. Periodic audits of Bank transactions. 
Sec. 18. Prohibitions on financing for certain persons involved in sanctionable ac-
tivities with respect to Iran. 
Sec. 19. Use of portion of Bank surplus to update information technology systems. 
Sec. 20. Modifications relating to the advisory committee. 
Sec. 21. Financing for goods manufactured in the United States used in global tex-
tile and apparel supply chains. 
Sec. 22. Technical correction. 
Sec. 23. Sub-Saharan Africa Advisory Committee. 
Sec. 24. Dual use exports. 
Sec. 25. Effective date. 
SEC. 2. EXTENSION OF AUTHORITY. 
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635f) is amended by striking ‘‘2011’’ and inserting ‘‘2014’’. 
SEC. 3. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND 
INSURANCE. 
Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 
U.S.C. 635e(a)(2)) is amended— 
12 USC 635 note. 
Export-Import 
Bank 
Reauthorization 
Act of 2012. 
May 30, 2012 
[H.R. 2072] 
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126 STAT. 351 
PUBLIC LAW 112–122—MAY 30, 2012 
(1) in subparagraph (D), by striking ‘‘and’’; 
(2) in subparagraph (E), by striking the comma at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(F) during fiscal year 2012 and each succeeding fiscal 
year, $120,000,000,000, except that— 
‘‘(i) the applicable amount for each of fiscal years 
2013 and 2014 shall be $130,000,000,000 if— 
‘‘(I) the Bank has submitted a report as 
required by section 4(a) of the Export-Import Bank 
Reauthorization Act of 2012; and 
‘‘(II) the rate calculated under section 8(g)(1) 
of this Act is less than 2 percent for the quarter 
ending with the beginning of the fiscal year, or 
for any quarter in the fiscal year; and 
‘‘(ii) notwithstanding clause (i), the applicable 
amount for fiscal year 2014 shall be $140,000,000,000 
if— 
‘‘(I) the rate calculated under section 8(g)(1) 
of this Act is less than 2 percent for the quarter 
ending with the beginning of the fiscal year, or 
for any quarter in the fiscal year; 
‘‘(II) the Bank has submitted a report as 
required by subsection (b) of section 5 of the 
Export-Import Bank Reauthorization Act of 2012, 
except that the preceding provisions of this sub-
clause shall not apply if the Comptroller General 
has not submitted the report required by sub-
section (a) of such section 5 on or before July 
1, 2013; and 
‘‘(III) the Secretary of the Treasury has sub-
mitted the reports required by section 11(b) of 
the Export-Import Bank Reauthorization Act of 
2012.’’. 
SEC. 4. EXPORT-IMPORT BANK EXPOSURE LIMIT BUSINESS PLAN. 
(a) IN GENERAL.—Not later than September 30, 2012, the 
Export-Import Bank of the United States shall submit to the Con-
gress and the Comptroller General a written report that contains 
the following: 
(1) A business plan that— 
(A) includes an estimate by the Bank of the appropriate 
exposure limits of the Bank for 2012, 2013, and 2014; 
(B) justifies the estimate; and 
(C) estimates any anticipated growth of the Bank for 
2012, 2013, and 2014— 
(i) by industry sector; 
(ii) by whether the products involved are short- 
term loans, medium-term loans, long-term loans, insur-
ance, medium-term guarantees, or long-term guaran-
tees; and 
(iii) by key market. 
(2) An analysis of the potential for increased or decreased 
risk of loss to the Bank as a result of the estimated exposure 
limit, including an analysis of increased or decreased risks 
associated with changes in the composition of Bank exposure, 
by industry sector, by product offered, and by key market. 
Reports. 
Applicability. 
Reports. 
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126 STAT. 352 
PUBLIC LAW 112–122—MAY 30, 2012 
(3) An analysis of the ability of the Bank to meet its 
small business and sub-Saharan Africa mandates and comply 
with its carbon policy mandate under the proposed exposure 
limit, and an analysis of any increased or decreased risk of 
loss associated with meeting or complying with the mandates 
under the proposed exposure limit. 
(4) An analysis of the adequacy of the resources of the 
Bank to effectively process, approve, and monitor authoriza-
tions, including the conducting of required economic impact 
analysis, under the proposed exposure limit. 
(b) GAO REVIEW OF REPORT AND BUSINESS PLAN.—Not later 
than June 1, 2013, the Comptroller General shall submit to the 
Congress a written analysis of the report and business plan sub-
mitted under subsection (a), which shall include such recommenda-
tions with respect to the report and business plan as the Comp-
troller General deems appropriate. 
SEC. 5. STUDY BY THE COMPTROLLER GENERAL ON THE ROLE OF 
THE BANK IN THE WORLD ECONOMY AND THE BANK’S RISK 
MANAGEMENT. 
(a) IN GENERAL.—Within 10 months after the date of the enact-
ment of this Act, the Comptroller General of the United States 
shall complete and submit to the Export-Import Bank of the United 
States, the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the 
House of Representatives a report which— 
(1) evaluates— 
(A) the history of the rate of growth of the Bank, 
and its causes, with specific consideration given to— 
(i) the capital market conditions for export 
financing; 
(ii) increased competition from foreign export credit 
agencies; 
(iii) the rate of growth of the Bank from 2008 
to the present; 
(B) the effectiveness of the Bank’s risk management, 
including— 
(i) potential for losses from each of the products 
offered by the Bank; and 
(ii) the overall risk of the Bank’s portfolio, taking 
into account— 
(I) market risk; 
(II) credit risk; 
(III) political risk; 
(IV) industry-concentration risk; 
(V) geographic-concentration risk; 
(VI) obligor-concentration risk; and 
(VII) foreign-currency risk; 
(C) the Bank’s use of historical default and recovery 
rates to calculate future program costs, taking into consid-
eration cost estimates determined under the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661 et seq.) and whether 
discount rates applied to cost estimates should reflect the 
risks described in subparagraph (B); 
(D) the fees charged by the Bank for the products 
the Bank offers, whether the Bank’s fees properly reflect 
the risks described in subparagraph (B), and how the fees 
Deadline. 
Reports. 
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126 STAT. 353 
PUBLIC LAW 112–122—MAY 30, 2012 
are affected by United States participation in international 
agreements; and 
(E) whether the Bank’s loan loss reserves policy is 
sufficient to cover the risks described in subparagraph 
(B); and 
(2) makes appropriate recommendations with respect to 
the matters so evaluated. 
(b) RECOMMENDATIONS AND REPORT BY THE BANK.—Not later 
than 120 days after the Bank receives the report, the Bank shall 
submit to the Congress a report on the implementation of rec-
ommendations included in the report so received. If the Bank does 
not adopt the recommendations, the Bank shall include in its report 
an explanation of why the Bank has not done so. 
SEC. 6. MONITORING OF DEFAULT RATES ON BANK FINANCING; 
REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS 
REVIEW. 
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635g) is amended by adding at the end the following: 
‘‘(g) MONITORING
OF DEFAULT RATES
ON BANK FINANCING; 
REPORTS ON DEFAULT RATES; SAFETY AND SOUNDNESS REVIEW.— 
‘‘(1) MONITORING OF DEFAULT RATES.—Not less frequently 
than quarterly, the Bank shall calculate the rate at which 
the entities to which the Bank has provided short-, medium- 
, or long-term financing are in default on a payment obligation 
under the financing, by dividing the total amount of the 
required payments that are overdue by the total amount of 
the financing involved. 
‘‘(2) ADDITIONAL
CALCULATION
BY
TYPE
OF
PRODUCT, BY 
KEY MARKET, AND BY INDUSTRY SECTOR; REPORT TO CONGRESS.— 
In addition, the Bank shall, not less frequently than quarterly— 
‘‘(A) calculate the rate of default— 
‘‘(i) with respect to whether the products involved 
are short-term loans, medium-term loans, long-term 
loans, insurance, medium-term guarantees, or long- 
term guarantees; 
‘‘(ii) with respect to each key market involved; 
and 
‘‘(iii) with respect to each industry sector involved; 
and 
‘‘(B) submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report 
on each such rate and any information the Bank deems 
relevant. 
‘‘(3) REPORT ON CAUSES OF DEFAULT RATE; PLAN TO REDUCE 
DEFAULT RATE.—Within 45 days after a rate calculated under 
paragraph (1) equals or exceeds 2 percent, the Bank shall 
submit to the Congress a written report that explains the 
circumstances that have caused the default rate to be at least 
2 percent, and includes a plan to reduce the default rate to 
less than 2 percent. 
‘‘(4) PLAN CONTENTS.—The plan referred to in paragraph 
(3) shall— 
‘‘(A) provide a detailed explanation of the processes 
and controls by which the Bank monitors and tracks out-
standing loans; 
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126 STAT. 354 
PUBLIC LAW 112–122—MAY 30, 2012 
‘‘(B) detail specific planned actions, including a time 
frame for completing the actions, to reduce the default 
rate described in paragraph (1) to less than 2 percent. 
‘‘(5) MONTHLY REPORTS REQUIRED WHILE DEFAULT RATE IS 
AT LEAST 2 PERCENT.—For so long as the default rate calculated 
under paragraph (1) is at least 2 percent, the Bank shall 
submit monthly reports to the Congress describing the specific 
actions taken during such period to reduce the default rate. 
‘‘(6) SAFETY AND SOUNDNESS REVIEW.—If the default rate 
calculated under paragraph (1) remains above 2 percent for 
a period of 6 months, the Secretary of the Treasury shall 
provide for an independent third party to— 
‘‘(A) conduct a review of the loan programs and funds 
of the Bank, which shall determine— 
‘‘(i) the financial safety and soundness of the pro-
grams and funds; and 
‘‘(ii) the extent of loan loss reserves and capital 
adequacy of the programs and funds; and 
‘‘(B) submit to the Secretary, within 60 days after 
the end of the 6-month period, a report that— 
‘‘(i) describes the methodology and standards used 
to conduct the review required by subparagraph (A); 
‘‘(ii) sets forth the results and findings of the 
review, including the extent of loan loss reserves and 
capital adequacy of the programs and funds of the 
Bank; and 
‘‘(iii) 
includes 
recommendations 
regarding 
restoring the reserves and capital to maintain the pro-
grams and funds in a safe and sound condition.’’. 
SEC. 7. IMPROVEMENT AND CLARIFICATION OF DUE DILIGENCE 
STANDARDS FOR LENDER PARTNERS. 
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635) is amended by adding at the end the following: 
‘‘(i) DUE DILIGENCE STANDARDS FOR LENDER PARTNERS.—The 
Bank shall set due diligence standards for its lender partners 
and participants, which should be applied across all programs 
consistently. To minimize or prevent fraudulent activity, the Bank 
should require all delegated lenders to implement ‘Know your cus-
tomer practices’.’’. 
SEC. 8. NON-SUBORDINATION REQUIREMENT. 
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635), as amended by section 7 of this Act, is amended by adding 
at the end the following: 
‘‘(j) NON-SUBORDINATION
REQUIREMENT.—In entering into 
financing contracts, the Bank shall seek a creditor status which 
is not subordinate to that of all other creditors, in order to reduce 
the risk to, and enhance recoveries for, the Bank.’’. 
SEC. 9. NOTICE AND COMMENT FOR BANK TRANSACTIONS EXCEEDING 
$100,000,000. 
(a) IN GENERAL.—Section 3(c) of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635a(c)) is amended by adding at the end the 
following: 
‘‘(10) NOTICE AND COMMENT REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Before any meeting of the Board 
for final consideration of a long-term transaction the value 
Contracts. 
Determination. 
Time period. 
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126 STAT. 355 
PUBLIC LAW 112–122—MAY 30, 2012 
of which exceeds $100,000,000, and concurrent with any 
statement required to be submitted under section 2(b)(3) 
with respect to the transaction, the Bank shall provide 
a notice and comment period. 
‘‘(B) FINANCIAL THRESHOLD DETERMINATIONS.—For pur-
poses of determining whether the value of a proposed trans-
action exceeds the financial threshold set forth in subpara-
graph (A), the Bank shall aggregate the dollar amount 
of the proposed transaction and the dollar amounts of 
all long-term loans and guarantees, approved by the Bank 
in the preceding 12-month period, that involved the same 
foreign entity and substantially the same product to be 
produced. 
‘‘(C) SPECIFIC REQUIREMENTS.— 
‘‘(i) IN GENERAL.—The Bank shall— 
‘‘(I) publish in the Federal Register a notice 
of the application proposing the transaction; 
‘‘(II) provide a period of not less than 25 days 
for the submission to the Bank of comments on 
the application; and 
‘‘(III) notify the Committee on Banking, 
Housing, and Urban Affairs of the Senate, and 
the Committee on Financial Services of the House 
of Representatives of the application, and seek 
comments on the application from the Department 
of Commerce and the Office of Management and 
Budget. 
‘‘(ii) CONTENT OF NOTICE.—The notice published 
under clause (i)(I) with respect to an application for 
a loan or financial guarantee shall include appropriate 
information about— 
‘‘(I) a brief non-proprietary description of the 
purposes of the transaction and the anticipated 
use of any item being exported, including, to the 
extent the Bank is reasonably aware, whether the 
item may be used to produce exports or provide 
services in competition with the exportation of 
goods or the provision of services by a United 
States industry; 
‘‘(II) the identities of the obligor, principal sup-
plier, and guarantor; and 
‘‘(III) a description, such as type or model 
number, of any item with respect to which Bank 
financing is being sought, but only to the extent 
the description does not disclose any information 
that 
is 
confidential 
or 
proprietary 
business 
information, that would violate the Trade Secrets 
Act, or that would jeopardize jobs in the United 
States by supplying information which competitors 
could use to compete with companies in the United 
States. 
‘‘(D) PROCEDURE
REGARDING
MATERIALLY
CHANGED 
APPLICATIONS.— 
‘‘(i) IN GENERAL.—If a material change is made 
to an application to which this paragraph applies, after 
a notice with respect to the application is published 
under subparagraph (C)(i)(I), the Bank shall publish 
Federal Register, 
publication. 
Time period. 
Federal Register, 
publication. 
Time period. 
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126 STAT. 356 
PUBLIC LAW 112–122—MAY 30, 2012 
in the Federal Register a revised notice of the applica-
tion and provide for an additional comment period 
as provided in subparagraph (C)(i)(II). 
‘‘(ii) MATERIAL CHANGE DEFINED.—In clause (i), the 
term ‘material change’, with respect to an application 
for a loan or guarantee, includes an increase of at 
least 25 percent in the amount of a loan or guarantee 
requested in the application. 
‘‘(E) REQUIREMENT
TO
ADDRESS
VIEWS
OF
COM-
MENTERS.—Before taking final action on an application to 
which this paragraph applies, the staff of the Bank shall 
provide in writing to the Board of Directors the views 
of any person who submitted comments on the application 
pursuant to this paragraph. 
‘‘(F) PUBLICATION OF CONCLUSIONS.—Within 30 days 
after a final decision of the Board of Directors with respect 
to an application to which this paragraph applies, the 
Bank shall provide to a commenter on the application 
or the decision who makes a request therefor, a non-con-
fidential summary of the facts found and conclusions 
reached in any detailed analysis or similar study with 
respect to the loan or guarantee that is the subject of 
the application, that was submitted to the Board of Direc-
tors. Such summary should be sent within 30 days of 
the receipt of the written request or date of the final 
decision of the Board of Directors, whichever is later. 
‘‘(G) 
RULE
OF
INTERPRETATION.—The 
obligations 
imposed by this paragraph shall not be interpreted to 
create, modify, or preclude any legal right of action.’’. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) 
shall take effect 60 days after the date of the enactment of this 
Act. 
SEC. 10. CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM 
GUARANTEES IN ANNUAL REPORT. 
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635g), as amended by section 6 of this Act, is amended by adding 
at the end the following: 
‘‘(h) CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM 
GUARANTEES.—In the annual report of the Bank under subsection 
(a), the Bank shall categorize each loan and long-term guarantee 
made by the Bank in the fiscal year covered by the report, and 
according to the following purposes: 
‘‘(1) ‘To assume commercial or political risk that exporter 
or private financial institutions are unwilling or unable to 
undertake’. 
‘‘(2) ‘To overcome maturity or other limitations in private 
sector export financing’. 
‘‘(3) ‘To meet competition from a foreign, officially spon-
sored, export credit competition’. 
‘‘(4) ‘Not identified’, and the reason why the purpose is 
not identified.’’. 
SEC. 11. NEGOTIATIONS TO END EXPORT CREDIT FINANCING. 
(a) IN GENERAL.—The Secretary of the Treasury (in this section 
referred to as the ‘‘Secretary’’) shall initiate and pursue negotia-
tions— 
12 USC 635a–5. 
12 USC 635a 
note. 
Deadlines. 
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126 STAT. 357 
PUBLIC LAW 112–122—MAY 30, 2012 
(1) with other major exporting countries, including mem-
bers of the Organisation for Economic Co-operation and 
Development (OECD) and non-OECD members, to substantially 
reduce, with the ultimate goal of eliminating, subsidized export 
financing programs and other forms of export subsidies; and 
(2) with all countries that finance air carrier aircraft with 
funds from a state-sponsored entity, to substantially reduce, 
with the ultimate goal of eliminating, aircraft export credit 
financing for all aircraft covered by the 2007 Sector Under-
standing on Export Credits for Civil Aircraft (in this section 
referred to as the ‘‘ASU’’), including any modification thereof, 
and all of the following types of aircraft: 
(A) Heavy aircraft that are capable of a takeoff weight 
of 300,000 pounds or more, whether or not operating at 
such a weight during a particular phase of flight. 
(B) Large aircraft that are capable of a takeoff weight 
of more than 41,000 pounds, and have a maximum certifi-
cated takeoff weight of not more than 300,000 pounds. 
(C) Small aircraft that have a maximum certificated 
takeoff weight of 41,000 pounds or less. 
(b) ANNUAL REPORTS
ON PROGRESS
OF NEGOTIATIONS.—Not 
later than 180 days after the date of the enactment of this Act, 
and annually thereafter, the Secretary shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Represent-
atives— 
(1) a report on the progress of any negotiations described 
in subsection (a)(1), until the Secretary certifies in writing 
to the committees that all countries that support subsidized 
export financing programs have agreed to end the support; 
and 
(2) a report on the progress of any negotiations described 
in subsection (a)(2), including the progress of any negotiations 
with respect to each classification of aircraft set forth in sub-
section (a)(2), until the Secretary certifies in writing to the 
committees that all countries that support subsidized export 
financing programs have agreed to end the support of aircraft 
covered by the ASU. 
SEC. 12. PUBLICATION OF GUIDELINES FOR ECONOMIC IMPACT ANAL-
YSES AND DOCUMENTATION OF SUCH ANALYSES. 
(a) PUBLICATION OF GUIDELINES.—Not later than 180 days after 
the date of the enactment of this Act, the Export-Import Bank 
of the United States shall develop and make publicly available 
methodological guidelines to be used by the Bank in conducting 
economic impact analyses or similar studies under section 2(e) 
of the Export-Import Bank Act of 1945. In developing the guidelines, 
the Bank shall take into consideration any relevant guidance from 
the Office of Management and Budget. 
(b) MAINTENANCE OF DOCUMENTATION.—Section 2(e)(7) of the 
Export-Import Bank Act of 1945 (12 U.S.C. 635(e)(7)) is amended 
by redesignating subparagraphs (E) and (F) as subparagraphs (F) 
and (G), respectively, and inserting after subparagraph (D) the 
following: 
‘‘(E) MAINTENANCE
OF
DOCUMENTATION.—The Bank 
shall maintain documentation relating to economic impact 
Deadline. 
Public 
information. 
12 USC 635 note. 
Certifications. 
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126 STAT. 358 
PUBLIC LAW 112–122—MAY 30, 2012 
analyses and similar studies conducted under this sub-
section in a manner consistent with the Standards for 
Internal Control of the Federal Government issued by the 
Comptroller General of the United States.’’. 
SEC. 13. REPORT ON IMPLEMENTATION OF RECOMMENDATIONS OF 
THE GOVERNMENT ACCOUNTABILITY OFFICE. 
Not later than 180 days after the date of the enactment of 
this Act, the Export-Import Bank of the United States shall submit 
to the Committee on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on Financial Services of the House 
of Representatives a report on the implementation or rejection 
by the Bank of the recommendations contained in the report of 
the Government Accountability Office entitled ‘‘Export-Import Bank: 
Improvements Needed in Assessment of Economic Impact’’, dated 
September 12, 2007 (GAO–07–1071), that includes— 
(1) a detailed description of the progress made in imple-
menting each such recommendation; and 
(2) for any such recommendation that has not yet been 
implemented, an explanation of the reasons the recommenda-
tion has not been implemented. 
SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL BUSINESS. 
Within 180 days after the date of the enactment of this Act, 
the Export-Import Bank of the United States shall examine and 
report to Congress on its current programs, products, and polices 
with respect to the implementation of its export credit insurance 
program, delegated lending authority, and direct loans, and any 
other programs, products, and policies established to support 
exports from small businesses in the United States, and determine 
the extent to which those policies adequately meet the needs of 
the small businesses in obtaining Bank financing to support the 
maintenance or creation of jobs in the United States through 
exports, consistent with the requirement that the Bank obtain 
a reasonable assurance of repayment. 
SEC. 15. REVIEW AND REPORT ON DOMESTIC CONTENT POLICY. 
(a) IN GENERAL.—The Export-Import Bank of the United States 
shall conduct a review of its domestic content policy for medium- 
and long-term transactions. The review shall examine and evaluate 
the effectiveness of the Bank’s policy— 
(1) in maintaining and creating jobs in the United States; 
and 
(2) in contributing to a stronger national economy through 
the export of goods and services. 
(b) FACTORS TO CONSIDER.—In conducting the review under 
subsection (a), the Bank shall consider the following: 
(1) Whether the domestic content policy accurately captures 
the costs of United States production of goods and services, 
including the direct and indirect costs of manufacturing costs, 
parts, components, materials and supplies, research, planning 
engineering, design, development, production, return on invest-
ment, marketing and other business costs and the effect of 
such policy on the maintenance and creation of jobs in the 
United States. 
(2) The ability of the Bank to provide financing that is 
competitive with the financing provided by foreign export credit 
agencies and the impact that such financing has in enabling 
Deadline. 
Reports. 
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126 STAT. 359 
PUBLIC LAW 112–122—MAY 30, 2012 
companies with operations in the United States to contribute 
to a stronger United States economy by increasing employment 
through the export of goods and services. 
(3) The effects of the domestic content policy on the manu-
facturing and service workforce of the United States. 
(4) Any recommendations the members of the Bank’s 
Advisory Committee have regarding the Bank’s domestic con-
tent policy. 
(5) The effect that changes to the Bank’s domestic content 
requirements would have in providing companies an incentive 
to create and maintain operations in the United States and 
to increase jobs in the United States. 
(c) REPORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Bank shall submit a report on the results 
of the review conducted under this section to the Committee on 
Banking, Housing, and Urban Affairs of the Senate, and the Com-
mittee on Financial Services of the House of Representatives. 
SEC. 16. IMPROVEMENT OF METHOD FOR CALCULATING THE EFFECTS 
OF BANK FINANCING ON JOB CREATION AND MAINTE-
NANCE IN THE UNITED STATES. 
(a) GAO STUDY.—The Comptroller General of the United States 
shall conduct a study of the process and methodology used by 
the Export-Import Bank of the United States (in this section 
referred to as the ‘‘Bank’’) to calculate the effects of the provision 
of financing by the Bank on the creation and maintenance of 
employment in the United States, determine and assess the basis 
on which the Bank has so used the methodology, and make any 
recommendations the Comptroller General deems appropriate. 
(b) REPORT.—Within 1 year after the date of the enactment 
of this Act, the Comptroller General shall submit to the Congress 
and the Bank the results of the study required by subsection 
(a). 
(c) IMPLEMENTATION OF RECOMMENDATIONS.—If the report sub-
mitted pursuant to subsection (b) includes recommendations, the 
Bank may establish a more accurate methodology of the kind 
described in subsection (a) based on the recommendations. 
SEC. 17. PERIODIC AUDITS OF BANK TRANSACTIONS. 
(a) IN GENERAL.—Within 2 years after the date of the enact-
ment of this Act, and periodically (but not less frequently than 
every 4 years) thereafter, the Comptroller General of the United 
States shall conduct an audit of the loan and guarantee transactions 
of the Export-Import Bank of the United States to determine the 
compliance of the Bank with the underwriting guidelines, lending 
policies, due diligence procedures, and content guidelines of the 
Bank. 
(b) REVIEW OF FRAUD CONTROLS.—The Comptroller General 
of the United States shall review the adequacy of the design and 
effectiveness of the controls used by the Export-Import Bank of 
the United States to prevent, detect, and investigate fraudulent 
applications for loans and guarantees, including by auditing a 
sample of Bank transactions, and submit to the Congress a written 
report which contains such recommendations with respect to the 
controls as the Comptroller General deems appropriate. 
Reports. 
Deadline. 
Determination. 
12 USC 635a–6. 
12 USC 635a–2 
note. 
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126 STAT. 360 
PUBLIC LAW 112–122—MAY 30, 2012 
SEC. 18. PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS 
INVOLVED IN SANCTIONABLE ACTIVITIES WITH RESPECT 
TO IRAN. 
(a) PROHIBITION ON FINANCING FOR PERSONS THAT ENGAGE 
IN CERTAIN SANCTIONABLE ACTIVITIES.— 
(1) IN GENERAL.—Beginning on the date that is 180 days 
after the date of the enactment of this Act, the Board of Direc-
tors of the Export-Import Bank of the United States may not 
approve any transaction that is subject to approval by the 
Board with respect to the provision by the Bank of any guar-
antee, insurance, or extension of credit, or the participation 
by the Bank in any extension of credit, to a person in connection 
with the exportation of any good or service unless the person 
makes the certification described in paragraph (2). 
(2) CERTIFICATION DESCRIBED.—The certification described 
in this paragraph is a certification by a person— 
(A) that neither the person nor any other person owned 
or controlled by the person— 
(i) engages in any activity described in section 
5(a) of the Iran Sanctions Act of 1996 (Public Law 
104–172; 50 U.S.C. 1701 note) for which the person 
may be subject to sanctions under that Act; 
(ii) exports sensitive technology, as defined in sec-
tion 106 of the Comprehensive Iran Sanctions, Account-
ability, and Divestment Act of 2010 (22 U.S.C. 8515), 
to Iran; or 
(iii) engages in any activity prohibited by part 
560 of title 31, Code of Federal Regulations (commonly 
known as the ‘‘Iranian Transactions Regulations’’), 
unless the activity is disclosed to the Office of Foreign 
Assets Control of the Department of the Treasury when 
the activity is discovered; or 
(B) if the person or any other person owned or con-
trolled by the person has engaged in an activity described 
in subparagraph (A), that— 
(i) in the case of an activity described in subpara-
graph (A)(i)— 
(I) the President has waived the imposition 
of sanctions with respect to the person that 
engaged in that activity pursuant to section 4(c), 
6(b)(5), or 9(c) of the Iran Sanctions Act of 1996 
(Public Law 104–172; 50 U.S.C. 1701 note); 
(II)(aa) the President has invoked the special 
rule described in section 4(e)(3) of that Act with 
respect to the person that engaged in that activity; 
or 
(bb)(AA) the person that engaged in that 
activity determines, based on its best knowledge 
and belief, that the person meets the criteria 
described in subparagraph (A) of such section 
4(e)(3) and has provided to the President the assur-
ances described in subparagraph (B) of that sec-
tion; and 
(BB) the Secretary of State has issued an 
advisory opinion to that person that the person 
meets such criteria and has provided to the Presi-
dent those assurances; or 
President. 
Effective date. 
12 USC 635 note. 
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126 STAT. 361 
PUBLIC LAW 112–122—MAY 30, 2012 
(III) the President has determined that the 
criteria have been met for the exception provided 
for under section 5(a)(3)(C) of the Iran Sanctions 
Act of 1996 to apply with respect to the person 
that engaged in that activity; or 
(ii) in the case of an activity described in subpara-
graph (A)(ii), the President has waived, pursuant to 
section 401(b)(1) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 (22 U.S.C. 
8551(b)(1)), the application of the prohibition under 
section 106(a) of that Act (22 U.S.C. 8515(a)) with 
respect to that person. 
(b) PROHIBITION ON FINANCING.—Beginning on the date that 
is 180 days after the date of the enactment of this Act, the Board 
of Directors of the Export-Import Bank of the United States may 
not approve any transaction that is subject to approval by the 
Board with respect to the provision by the Bank of any guarantee, 
insurance, or extension of credit, or the participation by the Bank 
in any extension of credit, in connection with a financing in which 
a person that is a borrower or controlling sponsor, or a person 
that is owned or controlled by such borrower or controlling sponsor, 
is subject to sanctions under section 5(a) of the Iran Sanctions 
Act of 1996 (Public Law 104–172; 50 U.S.C. 1701 note). 
(c) ADVISORY OPINIONS.— 
(1) AUTHORITY.—The Secretary of State is authorized to 
issue advisory opinions described in subsection (a)(2)(B)(i)(II). 
(2) NOTICE
TO
CONGRESS.—If the Secretary issues an 
advisory opinion pursuant to paragraph (1), the Secretary shall 
notify the appropriate congressional committees of the opinion 
not later than 30 days after issuing the opinion. 
(d) DEFINITIONS.—In this section: 
(1) APPROPRIATE CONGRESSIONAL COMMITTEES; PERSON.— 
The terms ‘‘appropriate congressional committees’’ and ‘‘person’’ 
have the meanings given those terms in section 14 of the 
Iran Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 
1701 note). 
(2) CONTROLLING SPONSOR.—The term ‘‘controlling sponsor’’ 
means a person providing controlling direct private equity 
investment (excluding investments made through publicly held 
investment funds, publicly held securities, public offerings, or 
similar public market vehicles) in connection with a financing. 
SEC. 19. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMA-
TION TECHNOLOGY SYSTEMS. 
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a) is amended by adding at the end the following: 
‘‘(j) AUTHORITY TO USE PORTION OF BANK SURPLUS TO UPDATE 
INFORMATION TECHNOLOGY SYSTEMS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (3) and (4), the 
Bank may use an amount equal to 1.25 percent of the surplus 
of the Bank during fiscal years 2012, 2013, and 2014 to— 
‘‘(A) seek to remedy any of the operational weakness 
and risk management vulnerabilities of the Bank which 
are the result of the information technology system of 
the Bank; 
Deadline. 
Deadline. 
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126 STAT. 362 
PUBLIC LAW 112–122—MAY 30, 2012 
‘‘(B) remedy data fragmentation, enhance information 
flow throughout the Bank, and manage data across the 
Bank; and 
‘‘(C) enhance the operational capacity and risk manage-
ment capabilities of the Bank to better enable the Bank 
to increase exports and grow jobs while protecting the 
taxpayer. 
‘‘(2) SURPLUS.—In paragraph (1), the term ‘surplus’ means 
the amount (if any) by which— 
‘‘(A) the sum of the interest and fees collected by the 
Bank; exceeds 
‘‘(B) the sum of— 
‘‘(I) the funds set aside to cover expected losses 
on transactions financed by the Bank; and 
‘‘(ii) the costs incurred to cover the administrative 
expenses of the Bank. 
‘‘(3) LIMITATION.—The aggregate of the amounts used in 
accordance with paragraph (1) for fiscal years 2012, 2013, and 
2014 shall not exceed $20,000,000. 
‘‘(4) SUBJECT TO APPROPRIATIONS.—The authority provided 
by paragraph (1) may be exercised only to such extent and 
in such amounts as are provided in advance in appropriations 
Acts.’’. 
SEC. 20. MODIFICATIONS RELATING TO THE ADVISORY COMMITTEE. 
(a) REPRESENTATION
OF
THE
TEXTILE
INDUSTRY.—Section 
3(d)(1)(B) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(d)(1)(B)) is amended by striking ‘‘and State government’’ 
inserting ‘‘State government, and the textile industry’’. 
(b) ACCESS TO BANK PRODUCTS BY THE TEXTILE INDUSTRY.— 
(1) CONSIDERATION BY ADVISORY COMMITTEE.—Section 3(d) 
of such Act (12 U.S.C. 635a(d)) is amended by adding at the 
end the following: 
‘‘(5) In carrying out paragraph (4), the Advisory Committee 
shall consider ways to promote the financing of Bank transactions 
for the textile industry, consistent with the requirement that the 
Bank obtain a reasonable assurance of repayment, and determine 
ways to— 
‘‘(A) increase Bank support for the exports of textile compo-
nents or inputs made in the United States; and 
‘‘(B) support the maintenance, promotion and expansion 
of jobs in the United States that are critical to the manufacture 
of textile components and inputs.’’. 
(2) ANNUAL REPORT TO CONGRESS ON ADVISORY COMMITTEE 
DETERMINATIONS.—Section 8 of such Act (12 U.S.C. 635g), as 
amended by sections 6 and 10 of this Act, is amended by 
adding at the end the following: 
‘‘(i) ACCESS TO BANK PRODUCTS BY THE TEXTILE INDUSTRY.— 
The Bank shall include in its annual report to the Congress under 
subsection (a) of this section a report on the determinations made 
by the Advisory Committee under section 3(d)(5) in the year covered 
by the report.’’. 
SEC. 21. FINANCING FOR GOODS MANUFACTURED IN THE UNITED 
STATES USED IN GLOBAL TEXTILE AND APPAREL SUPPLY 
CHAINS. 
(a) ANALYSIS OF TEXTILE INDUSTRY USE OF BANK PRODUCTS.— 
The Export-Import Bank of the United States (in this section 
Study. 
Reports. 
Definition. 
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126 STAT. 363 
PUBLIC LAW 112–122—MAY 30, 2012 
referred to as the ‘‘Bank’’) shall conduct a study of the extent 
to which the products offered by the Bank are available and used 
by manufacturers in the United States that export goods manufac-
tured in the United States used as components in global textile 
and apparel supply chains. In conducting the study, the Bank 
shall examine the following: 
(1) Impediments to use of Bank products by such firms. 
(2) The number of jobs in the United States that are 
supported by the export of such component parts and the degree 
to which access to financing will increase exports. 
(3) Specific proposals for how the Bank, using its authority 
and products, could provide the financing, including through 
risk-sharing with other export credit agencies and other third 
parties. 
(4) Ways in which the Bank can take into account the 
full global textile and apparel supply chain—in particular, the 
ultimate purchase, and ultimate United States-based pur-
chaser, of the finished good, that would result from the supply 
chain—in making credit and risk determinations and the credit-
worthiness of the ultimate purchaser. 
(5) Proposals for new products the Bank could offer to 
provide the financing, including— 
(A) the extent to which the Bank is authorized to 
offer new products; 
(B) the extent to which the Bank would need additional 
authority to offer the new products; and 
(C) specific proposals for changes in law that would 
enable the Bank to provide such financing in compliance 
with the credit and risk standards of the Bank. 
(b) REPORT.—Within 180 days after the date of the enactment 
of this Act, the Bank shall submit to the Congress a report that 
contains the results of the study required by subsection (a). 
(c) ANNUAL REPORTS.—Section 8 of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635g), as amended by sections 6, 10, and 
20(b)(2) of this Act, is amended by adding at the end the following: 
‘‘(j) TEXTILE
AND APPAREL SUPPLY CHAIN FINANCING.—The 
Bank shall include in its annual report to the Congress under 
subsection (a) of this section a description of the success of the 
Bank in providing effective and reasonably priced financing to the 
United States textile and apparel industry for exports of goods 
manufactured in the United States that are used as components 
in global textile and apparel supply chains in the year covered 
by the report, and steps the Bank has taken to increase the use 
of Bank products by such firms.’’. 
SEC. 22. TECHNICAL CORRECTION. 
Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclauses (I), 
(IV), and (VII) and by redesignating subclauses (II), (III), (V), (VI), 
(VIII), and (IX) as subclauses (I) through (VI), respectively. 
SEC. 23. SUB-SAHARAN AFRICA ADVISORY COMMITTEE. 
Section 2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(b)(9)(B)(iii)) is amended by striking ‘‘2011’’ and 
inserting ‘‘2014’’. 
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126 STAT. 364 
PUBLIC LAW 112–122—MAY 30, 2012 
LEGISLATIVE HISTORY—H.R. 2072: 
HOUSE REPORTS: No. 112–201 (Comm. on Financial Services). 
CONGRESSIONAL RECORD, Vol. 158 (2012): 
May 9, considered and passed House. 
May 15, considered and passed Senate. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2012): 
May 30, Presidential remarks. 
SEC. 24. DUAL USE EXPORTS. 
Section 4 of Public Law 109–438 (12 U.S.C. 635 note; 108 
Stat. 4376) is amended by striking ‘‘2011’’ and inserting ‘‘2014’’. 
SEC. 25. EFFECTIVE DATE. 
Except as provided in section 9(b), this Act and the amendments 
made by this Act shall take effect on the earlier of June 1, 2012, 
or the date of the enactment of this Act. 
Approved May 30, 2012. 
12 USC 635 note. 
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