Overseas Private Investment Corporation Amendments Act of 1981
PL 97-65 (H.R.3136), enacted 10/16/1981

PUBLIC LAW 97-65—OCT. 16, 1981 
95 STAT. 1021 
Public Law 97-
97th Congress 
65 
An Act 
To amend the Foreign Assistance Act of 1961 with respect to the activities of the 
Overseas Private Investment C!orporation. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SHORT TITLE 
Oct. 16, 1981 
[H.R. 3136] 
Overseas Private 
Investment 
Corporation 
Amendments 
Act of 1981. 
SEcnoN 1. This Act may be cited as the "Overseas Private Invest- 22 use ^isi 
ment Ck)rporation Amendcaents Act of 1981". 
"
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® 
CREATION, PURPOSE AND POLICY 
SEC. 2. Section 231 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2191) is amended— 
(1) in paragraph (2)— 
(A) by striking out "$520 or less in 1975 United States 
dollars and inserting in lieu thereof "$680 or less in 1979 
United States dollars ; and 
(B) by striking out "$1,000 or more in 1975 United States 
dollars and inserting in lieu thereof "$2,950 or more in 1979 
United States dollars ; 
(2) in subsection (i) by inserting immediately before the semi-
colon the following: ", and to seek to support those developmen-
tal projects having positive trade benefits for the United States"; 
and 
(3XA) in subsection (k) by striking out "and" after "required by 
clause (1);"; 
(B) in subsection (1) by striking out the period at the end thereof 
and inserting in Ueu thereof "; and"; and 
(C) by adding at the end thereof the following new subsection: 
"(m) to refuse to insure, reinsure, or finance any investment 
subject to performance requirements which would reduce sub-
stantially the positive trade benefits likely to accrue to the 
United States from the investment.". 
ORGANIZATION AND MANAGEMENT 
SEC. 3. (a) The first paragraph of section 233(b) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2193(b)) is amended— 
(1) by striking out in the first sentence "eleven" and "six" and 
inserting in lieu thereof "fifteen" and "eight", respectively; 
(2) by inserting after the second sentence the following: "The 
United States Trade Representative shall be the Vice Chairman 
of the Board, ex officio, except that the United States Trade 
Representative may designate the Deputy United States Trade 
Representative to serve as Vice Chairman of the Board in place 
of 
me United States Trade Representative."; 
95 STAT. 1022 
PUBLIC LAW 97-65—OCT. 16, 1981 
Effective date. 
22 u s e 2193 
note. 
Report to 
congressional 
committees. 
(3) by striking out "Six", "six", and "two" in the fourth, fifth, 
and seventh sentences of such section, as amended by paragraph 
(2), and inserting in lieu thereof "Eight", "eight", and "three", 
respectively; 
(4) by striking out in the fifth sentence of such section, as 
amended by paragraph (2), "one" the first place it appears and 
inserting in lieu thereof "two"; and 
(5) by striking out in the fourth sentence of such section, as 
amended by paragraph (2), "also serve as a Director" and 
inserting in lieu thereof "serve as a Director, ex officio". 
(b) The second paragraph of such section is amended by inserting 
"including an official of the Department of Labor," after "United 
States,". 
(c) The amendments made by this section shall take effect on 
October 1,1981. 
INVESTMENT INSURANCE AND OTHER PROGRAMS 
SEC. 4. (a) Section 234 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2194) is amended— 
(1) in subsection (a)(1)(C), by striking out "or insurrection" and 
inserting in lieu thereof ", insurrection, or civil strife"; 
(2) in subsection (a)(2), by striking out "total" and "financing" 
at the end thereof; 
(3) in subsection (a)(3), by striking out "authorized to issue 
under this subsection" and inserting in lieu thereof "permitted 
to have outstanding under section 235(a)(1)"; and 
(4) by adding at the end of subsection (a) the following new 
paragraph: 
"(4) Before issuing civil strife insurance for the first time, and in 
each subsequent instance in which a significant expansion is pro-
posed in the type of risk to be insured under the definition of civil 
strife, the Corporation shall, at least sixty days before such insurance 
is issued, submit to the Committee on Foreign Relations of the Senate 
and the Committee on Foreign Affairs of the House of Representa-
tives a report with respect to such insurance, including a thorough 
analysis of the risks to be covered, anticipated losses, and proposed 
rates and reserves.". 
(b) Section 234 of such Act is further amended— 
(1) in subsection (b), by striking out in the last proviso "author-
ized to issue under this subsection" and inserting in lieu thereof 
"permitted to have outstanding under section 235(aX2)"; 
(2) in subsection (fl(l), by striking out "(A)" and by striking out 
", and (B)" and all that follows through the end of the paragraph 
and inserting in lieu thereof a period; and 
(3) in the last paragraph of subsection (f)— 
(A) by striking out in the second sentence "exceed 
$600,000,000 in any one year, and the amount of such 
reinsurance shall not"; and 
(B) by striking out in the last sentence ", and the Corpora-
tion" and all that follows through the end of the sentence 
and inserting in lieu thereof a period. 
ISSUING AUTHORITY, DIRECT INVESTMENT FUND AND RESERVES 
SEC. 5. (a)(1) Section 235(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2195(a)) is amended in paragraph (2) by striking out 
": Provided" and all that follows through the end of the paragraph 
and inserting in lieu thereof a period and the following: "Commit-
PUBLIC LAW 97-65—OCT. 16, 1981 
95 STAT. 1023 
ments to guarantee loans are authorized for any fiscal year only to 
such extent or in such amounts as are provided in appropriation 
Acts.". 
(2) Section 235(a) of 
such Act is further amended— 
22 use 2195. 
(A) By redesignating paragraphs (3) and (4) as paragraphs (4) 
and (5), respectively; and 
(B) by inserting the following after paragraph (2): 
"(3) The Corporation shall not make any commitment to issue any 
guaranty which would result in a reserve less than 25 per centum of 
the maximum contingent liability then outstanding against guaran-
ties issued or commitments made pursuant to section 234(b) or 22 use 2194. 
similar predecessor guaranty authority.". 
(bXD Section 235(aX5) of such Act, as redesignated by subsection 
(a)(2)(A) of this section, is amended by striking out "September 30, 
1981" and inserting in lieu thereof "September 30,1985". 
(2) The authority of the Overseas Private Investment Corporation eontract 
to enter into contracts under section 234(a) of the Foreign Assistance 2
2 usc*2i94 
Act of 1961 shall be effective for any fiscal year beginning after 
^ 
September 30, 1981, only to such extent or in such amounts as are 
provided in appropriation Acts. 
(c) Section 235(b) of such Act is amended by adding at the end 
thereof the following: "The Corporation shall transfer to the Fund in 
the fiscal year 1982, and in each fiscal year thereafter— 
"(1) at least 10 per centum of the net income of the Corporation 
for the preceding fiscal year, and 
"(2) all amounts received by the Corjwration during the preced-
ing fiscal year as repajrment of principal and interest on loans 
made under section 234(c), to the extent such amounts have not 22 use 2194. 
been expended or obligated before the effective date of the 
Overseas Private Investment Corporation Amendments Act of 
1981, 
Ante, p. 1021. 
and the Corporation shall use the funds so transferred to make loans 
under section 234(c) to the extent that there are eligible projects 
which meet the Corporation's criteria for funding: Provided, however, 
That loans from the Direct Investment Fund are authorized for any 
fiscal year only to the extent or in such amounts as provided in 
advance in appropriation Acts.". 
GENERAL PROVISIONS RELATING TO INSURANCE AND GUARANTY 
PROGRAM 
SEC. 6. (a) Section 237(f) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2197(f)) is amended by amending the first sentence to read as 
follows: "Compensation for insurance, reinsurance, or guaranties 
issued under this title shall not exceed the dollar value, as of the date 
of the investment, of the investment made in the project with the 
approval of the Corporation plus interest, earnings, or profits actu-
ally accrued on such investment to the extent provided by such 
insurance, reinsurance, or guaranty, except that the Corporation 
may provide that (1) appropriate adjustments in the insured dollar 
value be made to reflect the replacement cost of project assets, and (2) 
compensation for a claim of loss under insurance of an equity 
investment may be computed on the basis of the net book value 
attributable to such equity investment on the date of loss.". 
(b) Such section is further amended by striking out the leist 
sentence. 
95 STAT. 1024 
PUBLIC LAW 97-65—OCT. 16, 1981 
DEFINITIONS 
SEC. 7. Section 238(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2198(a)) is amended by inserting "or commitment" after 
"includes any contribution". 
GENERAL PROVISIONS AND POWERS 
SEC. 8. Section 239 of the Foreign Assistance Act of 1961 (22 U.S.C. 
2199) is amended— 
(1) in subsection (d), by inserting after the last semicolon the 
following: "to collect or compromise any obligations assigned to 
or held by the Corporation, including any legal or equitable 
rights accruing to the (Corporation;"; 
(2) in subsection (e>— 
(A) by striking out "Auditor-General" each place it 
appears and inserting in lieu thereof "Inspector General"; 
and 
(B) b^ striking out in the first sentence "shall have the 
responsibility for planning and directing the execution of 
audits," and inserting in Ueu thereof "may conduct"; and 
(3) by striking out subsections (f), (i), and (k) and redesignating 
subsections (g), (h), (i), and G) as subsections (f), (g), (h), and (i), 
respectively. 
REPORTS 
SEC. 9. (a) Section 240A of the Foreign Assistance Act of 1961 (22 
U.S.C. 2200a) is amended— 
(1) in subsection (a)— 
(A) by striking out "(a)"; 
(B) in paragraph (1). by striking out "239(i)" and inserting 
in Ueu thereof "239(h)^'; and 
(C) in paragraph (2XA), by striking out "239a)" and insert-
ing in lieu thereof "239(i)"; and 
(2) by strikii^out subsection (b). 
Submittal to 
(b) The (Jverscas Private Investment O)rporation shall prepare and 
22 ijsc?2200a 
submit to the 0)ngress, not later than June 30, 1982, a report on 
note. 
methods for estimating the probability that particular investments 
or types of investments will or will not be made if insurance or other 
support by the Corporation is not provided. The report should review 
metnods of taking mto consideration the availabUity of insurance in 
the private sector as well as the self-insurance capabilities of inves-
tors. The report shall include recommendations on how the CJorpora-
tion can incorporate consideration of such estimates when deciding 
which investments to support, particularly if not all applications of 
eligible investors can be approved. The report shall be based on 
studies conducted by persons who are not officers or employees of the 
Corporation as well as on studies conducted by the Corporation. 
RETURN OF APPROPRIATED FUNDS 
SEC. 10. Title IV of 
chapter 2 of part I of 
the Foreign Assistance Act 
of 1961 is amended by adding at the end thereof uie following new 
section: 
22 use 2200b. 
"SEC. 240B. RETURN OF APPROPRIATED FUNDS.-The Corporation 
shall return to the general fund of the Treasuiy, in a manner 
22 use 2191. 
consistent with the objectives set forth in section 231, amounts equal 
to the total amounts which were appropriated to the Corporation 
PUBLIC LAW 97-65—OCT. 16, 1981 
95 STAT. 1025 
before January 1,1975, pursuant to section 235(f). In order to carry 2
2 use 2195. 
out the preceding sentence, the Corporation shall, in each fiscal year, 
pay to the Treasury an amount equal to 25 per centum of the net 
income of the Corporation for the preceding fiscal year, after making 
suitable provisions for transfers to reserves and capital, until the 
aggregate amount of such pa3rments equals the amounts required to 
be returned to the Treasury by the preceding sentence.". 
Approved October 16, 1981. 
LEGISLATIVE HISTORY—H.R. 3136 (H.R. 3566) (S. 1196): 
HOUSE REPORT No. 97-195 (Comm. on Foreign Affairs). 
SENATE REPORT No. 97-83 accompanying S. 1196 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 127 (1981): 
Sept. 21, 22, considered and passed House. 
Sept. 23, 24, 30, S. 1196 considered in Senate. 
Sept. 25, considered and passed Senate, amended. 
Sept. 28, House concurred in Senate amendment with an amendment. 
Sept. 30, Senate concurred in House amendment with an amendment. 
Oct. 2, House concurred in Senate amendment.