Overseas Private Investment Corporation Amendments Act
PL 95-268 (H.R.9179), enacted 04/24/1978

PUBLIC LAW 95-268—APR. 24, 1978 
92 STAT. 213 
Public Law 95-268 
95th Congress 
An Act 
To amend the Foreign Assistance Act of 1961 with respect to the activities of 
the Overseas Private Investment Corporation. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Overseas Private Invest-
ment Corporation Amendments Act of 1978". 
PURPOSE AND POLICY 
Apr. 24, 1978 
[H.R. 9179] 
Overseas Private 
Investment 
Corporation 
Amendments Act 
of 1978. 
22 u s e 2151 
note. 
SEC. 2. Section 231 of the Foreign Assistance Act of 1961 is 22 USC 2191. 
amended— 
(1) by inserting after the first undesignated paragraph the 
following new undesignated paragraph: 
"The Corporation, in determining whether to provide insurance, 
financing, or reinsurance for a project, shall especially— 
"(1) be guided by the economic and social development impact 
and benefits of such a project and the ways in which such a project 
complements, or is compatible with, other development assistance 
programs or projects of the United States or other donors; and 
"(2) give preferential consideration to investment projects in 
less developed countries that have per capita incomes of $520 or 
less in 1975 United States dollars, and restrict its activities with 
respect to investment projects in less developed countries that 
have per capita incomes of $1,000 or more in 1975 United States 
dollars."; 
(2) by amending subsection (e) to read as follows: 
"(e) to the maximum degree possible consistent with its 
purposes— 
"(1) to give preferential consideration in its investment 
insurance, reinsurance, and guaranty activities to investment 
projects sponsored by or involving United States small busi-
ness; and 
"(2) to increase the proportion of projects sponsored by or 
significantly involving United States small business to at least 
30 percent of all projects insured, reinsured, or guaranteed by 
the Corporation;"; 
(3) in subsection (m), by striking out the period at the end 
thereof and inserting in lieu thereof "; and"; 
(4) by adding at the end thereof the following new subsection: 
"(n) to decline to issue any contract of insurance or reinsur-
ance, or any guaranty, or to enter into any agreement to provide 
financing for an eligible investor's proposed investment if the 
Corporation determines that such investment is likely to cause 
a significant reduction in the number of employees in the United 
States."; and 
92 STAT. 214 
PUBLIC LAW 95-268—APR. 24, 1978 
(5) by striking out subsections (f) and (1), and redesignating 
subsections (g), (h), (i), (j), (k), (m), and (n) as subsections 
(f)j (g)? (li), (i), (J), (k),and (1), respectively. 
INVESTMENT INSURANCE AND OTHER PROGRAMS 
22 use 2194. 
SEC. 3. Section 234 of the Foreign Assistance Act of 1961 is 
amended— 
(1) in subsection (a)(2), by striking out all after "total 
project financing" and inserting in lieu thereof a period; 
(2) in subsection (a)(3) and subsection (b), by striking out 
"total face amount" each place it appears and inserting in lieu 
thereof "maximum contingent liability"; 
(3) by striking out paragraphs (4) through (7) of subsection 
(4) in subsection (c), by adding the following new sentence at 
the end of the first paragraph: "Loans may be made under this 
subsection only for projects that are sponsored by or significantly 
involve United States small business or cooperatives."; 
(5) by striking out the last paragraph of subsection (c) and 
inserting in lieu thereof the following: 
Loans for 
"Xo loan may be made under this subsection to finance any opera-
extraction of 
tjon for the extraction of oil or gas. The aggregate amount of loans 
nonfuel minerals. yj]^(jer 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 exceed $4,000,000."; 
(6) in the first sentence of subsection (d), by striking out all 
after "private investors" and inserting in lieu thereof a comma 
and the f 
ollow^ing: "except that— 
"(1) the Corporation shall not finance any survey to ascer-
tain the existence, location, extent, or quality of, or to deter-
mine the feasibility of undertaking operations for the 
extraction of, oil or gas; and 
"(2) expenditures financed by the Corporation during any 
fiscal year on surveys to ascertain the existence, location, 
extent, or quality of, or to determine the feasibility of under-
taking operations for the extraction of nonfuel minerals may 
not exceed $200,000."; and 
(7) in paragraph (1) of subsection (f) by striking out the 
period at the end thereof and inserting in lieu thereof the follow-
ing: "; except that (A) such agreements and contracts shall be 
consistent with the purposes of the Corporation set forth in sec-
Ante, p. 213. 
tion 231 of this Act and shall be on equitable terms, and (B) the 
Corporation shall not make or carry out any association or risk-
sharing agreement for the direct underwriting of insurance by 
the Corporation with others, other than on an individual basis 
where such direct underwriting facilitates the purposes of the 
Corporation as set forth in section 231 of this Act.". 
ISSUING AUTHORITY 
22 use 2195. 
SEC. 4. Section 235 of the Foreign Assistance Act of 1961 is 
amended— 
(1) in subsection (a) (2), by striking out ", of which guaranties 
of credit union investment shall not exceed $1,250,000"; and 
(2) in subsection (a) (4), by striking out "December 31, 1977" 
and inserting in lieu thereof "September 30, 1981". 
PUBLIC LAW 95-268—APR. 24, 1978 
92 STAT. 215 
GENERAL PROVISIONS RELATING TO INSURANCE AND GUARANTY 
PROGRAM 
SEC. 5. Section 237(f) of the Foreign Assistance Act of 1961 is 22 USC 2197. 
amended— 
(1) by inserting before the period at the end of the first sen-
tence a comma and the following: "except that the Corporation 
may provide for appropriate adjustments in the insured dollar 
value to reflect the replacement cost of project assets"; and 
(2) by inserting before the period at the end of the second sen-
tence a comma and the following: "except that such limitation 
shall not apply to direct insurance or reinsurance of loans by 
banks or other financial institutions to unrelated parties". 
ACTS OF BRIBERY 
SEC. 6. Section 237 of the Foreign Assistance Act of 1961 is amended 
by adding at the end thereof the following new subsection: 
"(1) (1) No payment may be made under any insurance or reinsur-
ance which is issued under this title on or after the date of enactment of 
this subsection for any loss occurring with respect to a project, if the 
preponderant cause of such loss was an act by the investor seeking pay-
ment under this title, 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 controlling person, and a court of the United States has 
entered a final judgment that such act constituted a violation under the 
Foreign Corrupt Practices Act of 1977. 
" (2) Not later than 120 days after the date of enactment of this sub-
section, the Corporation shall adopt regulations setting forth appro-
priate conditions under which any person convicted under the Foreign 
Corrupt Practices Act of 1977 for an offense related to a project 
insured or otherwise supported by the Corporation shall be suspended, 
for a period of not more than five years, from eligibility to receive any 
insurance, reinsurance, guaranty, loan, or other financial support 
authorized by this title.''. 
15 USC 78a note. 
Regulations. 
GENERAL PROVISIONS AND POWERS 
SEC. 7. Section 239 of the Foreign Assistance Act of 1961 is 22 USC 2199. 
amended— 
(1) in subsection (b), by striking out the second paragraph 
thereof; 
(2) in subsection (d), by inserting after "section 231 (c)" in the 
parenthetical the following: "or participation certificates as evi-
dence of indebtedness held by the Corporation in connection wath 
settlement of claims imder section 237(i)"; and 
(3) by adding at the end thereof the following new" subsections: Development 
"(i) In order to carry out the policy set forth in paragraph (1) of 
impact profile. 
the second undesignated paragraph of section 231 of this Act, the Cor- ^me, p. 213. 
poration shall prepare and maintain for each investment project it 
insures, finances, or reinsures, a development impact profile consisting 
of data appropriate to measure the projected and actual effects of such 
project on development. Criteria for evaluating projects shall be 
developed 
in 
consultation 
with 
the 
Agency 
for 
International 
Development. 
"(j) The Corporation shall not provide any insurance, reinsurance, 
guaranty, loan, or other financial support authorized by section 234 ^nte, p. 214. 
92 STAT. 216 
PUBLIC LAW 95-268—APR. 24, 1978 
Ante, p. 214. 
for any new or significantly expanded project involving the explora-
tion for or the mining of or other extraction of copper if such new or 
expanded production of copper is planned to begin before Januarj^ 1, 
1981, and the Corporation shall not support SLUJ such project which 
would begin production after such date if the project will cause injury 
to the primary United States copper industry. 
" (k) The Corporation may not provide any insurance, reinsurance, 
guaranty, financing, or other financial support authorized by section 
234 for any project to establish or expand production or processing 
of palm oil, sugar, or citrus crops for export.". 
HUMAN RIGHTS 
22 use 2199. 
SEC. 8. Section 239 of the Foreign Assistance Act of 1961, as amended 
by section 7 of this Act, is further amended by adding at the end 
thereof the following new subsection: 
"(1) The Corporation shall take into account in the conduct of its 
programs in a country, in consultation with the Secretaiy of State, all 
available information about observance of and respect for human 
rights and fundamental freedoms in such countiy and the effect the 
operation of such programs will have on human rights and funda-
22 use 2151n. 
mental freedoms in such country. The provisions of section 116 of this 
Act shall apply to any insurance, reinsurance, guaranty, or loan issued 
by the Corporation for projects in a country, except that in addition to 
the exception (with respect to benefiting needy people) set forth in 
subsection (a) of such section, the Corporation may support a project 
if the national security interest so requires.". 
SMALL BUSINESS DEVELOPMENT 
SEC. 9. The Foreign Assistance Act of 1961 is amended by 
inserting after section 239 the following new section: 
22 use 2200. 
"SEC. 240. SMALL BUSINESS DEVELOPMENT.—The Corporation shall 
undertake, in cooperation with appropriate departments, agencies, and 
instrumentalities of the United States as well as private entities and 
others, to broaden the participation of United States small business, 
cooperatives, and other small United States investors in the develop-
ment of small private enterprise in less developed friendly countries 
or areas. The Corporation shall allocate up to 50 per cent oi its annual 
net income, after making suitable provision for transfers and addi-
tions to reserves, to assist and facilitate the development of projects 
consistent with the provisions of this section. Such funds may be 
Ante, p. 213. 
expended, notwithstanding the requirements of section 231(a), on 
such terms and conditions as the Corporation may determine, through 
loans, grants, or other programs authorized by section 234.". 
REPORTS 
22 use 2200a. 
SEC. 10. Section 240A of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
Reports to 
"SEC. 240A. REPORTS TO THE CONGRESS.— (a) After the end of each 
Congress. 
fiscal 
year, the Corporation shall submit to the Congress a complete 
and detailed report of its operations during such fiscal year. Such 
report shall include— 
"(1) an assessment, based upon the development impact pro-
Ante, p. 215. 
files 
required by section 239 (i), of the economic and social develop-
ment impact and benefits of the projects with respect to which 
PUBLIC LAW 95-268—APR. 24, 1978 
92 STAT. 217 
such profiles are prepared, and of the extent to which the opera-
tions of the Corporation complement or are compatible with the 
development assistance programs of the United States and other 
donors; and 
"(2) a description of any project for which the Corporation— 
"(A) refused to provide any insurance, reinsurance, guar-
anty, financing, or other financial support, on account of 
violations of human rights referred to in section 239(1); or Ante, p. 216. 
"(B) notwithstanding such violations, provided such insur-
ance, reinsurance, guaranty, financing, or financial support, 
on the basis of a determmation (i) that the project will 
directly benefit the needy people in the country in which the 
project is located, or (ii) that the national security interest 
so requires. 
"(b) Not later than September 30, 1980, the Corporation shall sub- Report to 
mit to the Congress a report on the development of private and multi- Congress, 
lateral programs for investment insurance and any reinsurance 
arrangements the Corporation has made with private insurance com-
panies, multilateral organizations and institutions, or other entities.". 
Approved April 24, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 95-670 (Coram, on International Relations) and No. 95-1043 
(Comm. of Conference). 
SENATE REPORT No. 95-505 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD: 
Vol. 123 (1977): Oct. 25, S. 1771 considered and passed Senate. 
Nov. 2, 3, considered in House. 
Vol. 124 (1978): Feb. 23, considered and passed House. 
Mar. 6, considered and passed Senate, amended, in lieu of 
S.,1771. 
Apr. 6, Senate agreed to conference report. 
Apr. 11, House agreed to conference report.