22 U.S.C. § 2186 : US Code - Section 2186: Loan guarantees to Israel program

Search 22 U.S.C. § 2186 : US Code - Section 2186: Loan guarantees to Israel program

    (a) In general
      Subject to the terms and conditions of this section, during the
    period beginning October 1, 1992, and ending September 30, 1997,
    the President is authorized to issue guarantees against losses
    incurred in connection with loans to Israel made as a result of
    Israel's extraordinary humanitarian effort to resettle and absorb
    immigrants into Israel from the republics of the former Soviet
    Union, Ethiopia and other countries. In the event that less than
    the full amount authorized to be issued under subsection (b) of
    this section is issued in such period, the authority to issue the
    balance of such guarantees shall be available in the fiscal year
    ending on September 30, 1998.
    (b) Fiscal year levels
      The President is authorized to issue guarantees in furtherance of
    the purposes of this section. Subject to subsection (d) of this
    section, the total principal amount of guarantees which may be
    issued by the President under this section shall be up to
    $10,000,000,000 which may be issued as follows:
        (1) in fiscal year 1993, up to $2,000,000,000 may be issued on
      October 1, 1992 or thereafter;
        (2) subject to subsection (d) of this section, in fiscal years
      1994 through 1997, up to $2,000,000,000 in each fiscal year may
      be issued on October 1 or thereafter.
        (3) If less than the full amount of guarantees authorized to be
      made available in a fiscal year pursuant to paragraphs (1) and
      (2) of this subsection is issued to Israel during that fiscal
      year, the authority to issue the balance of such guarantees shall
      extend to any subsequent fiscal year ending on or before
      September 30, 1998.
        (4)(A) Not later than September 1 of each year during the
      period in which the President is authorized to issue loan
      guarantees under subsection (a) of this section, beginning in
      fiscal year 1993, the President shall notify the appropriate
      congressional committees in writing of his intentions regarding
      the exercise of that authority for the fiscal year beginning on
      October 1 of that year, including a statement of the total
      principal amount of guarantees, if any, that the President
      proposes to issue for that fiscal year.
        (B) For purposes of this paragraph, the term "appropriate
      congressional committees" means the Committee on Appropriations
      and the Committee on Foreign Relations of the Senate and the
      Committee on Appropriations and the Committee on Foreign Affairs
      of the House of Representatives.
    (c) Use of guarantees
      Guarantees may be issued under this section only to support
    activities in the geographic areas which were subject to the
    administration of the Government of Israel before June 5, 1967.
    (d) Limitation on guarantee amount
      The amount of authorized but unissued guarantees that the
    President is authorized to issue as specified in subsection (b) of
    this section shall be reduced by an amount equal to the amount
    extended or estimated to have been extended by the Government of
    Israel during the previous year for activities which the President
    determines are inconsistent with the objectives of this section or
    understandings reached between the United States Government and the
    Government of Israel regarding the implementation of the loan
    program. The President shall submit a report to Congress no later
    than September 30 of each fiscal year during the pendency of the
    program specifying the amount calculated under this subsection and
    that will be deducted from the amount of guarantees authorized to
    be issued in the next fiscal year.
    (e) Fees
      (1) Fees charged for the loan guarantee program under this
    section each year shall be an aggregate annual origination fee
    equal to the estimated subsidy cost of the guarantees issued under
    this section for that year, calculated by the Office of Management
    and Budget for the Federal Credit Reform Act of 1990 [2 U.S.C. 661
    et seq.]. This shall also include an amount for the administrative
    expenses of the Agency for International Development in
    administering the program under this section. All such fees shall
    be paid by the Government of Israel to the Government of the United
    States. Funds made available for Israel under part 4 of subchapter
    II of this chapter, may be utilized by the Government of Israel to
    pay such fees to the United States Government. No further
    appropriations of subsidy cost are needed for the loan guarantee
    authorized hereunder for fiscal year 1993 and the four succeeding
    fiscal years.
      (2) The origination fee shall be payable to the United States
    Government on a pro rata basis as each guarantee for each loan or
    increment is issued.
    (f) Authority to suspend
      Except as provided in subsections (l) and (m) of this section,
    the President shall determine the terms and conditions for issuing
    guarantees. If the President determines that these terms and
    conditions have been breached, the President may suspend or
    terminate the provision of all or part of the additional loan
    guarantees not yet issued under this section. Upon making such a
    determination to suspend or terminate the provision of loan
    guarantees, the President shall submit to the Speaker of the House
    of Representatives and the President Pro Tempore of the Senate his
    determination to do so, including the basis for such suspension or
    termination.
    (g) Procedures for suspension or termination
      Any suspension or termination pursuant to subsection (f) of this
    section shall be in accordance with the following procedures:
        (1) Upon making a determination to suspend or terminate the
      provision of loan guarantees, the President shall submit to the
      Speaker of the House of Representatives and the President Pro
      Tempore of the Senate his determination to do so, including the
      basis for such suspension or termination.
        (2) Such a suspension or termination shall cease to be
      effective if Congress enacts, within 30 days of submission, a
      joint resolution authorizing the assistance notwithstanding the
      suspension.
        (3) Any such joint resolution shall be considered in the Senate
      in accordance with the provisions of section 601(b) of the
      International Security Assistance and Arms Export Control Act of
      1976.
        (4) For the purpose of expediting the consideration and
      enactment of joint resolutions under this subsection, a motion to
      proceed to the consideration of any such joint resolution after
      it has been reported by the appropriate committee shall be
      treated as highly privileged in the House of Representatives.
        (5) In the event that the President suspends the provision of
      additional loan guarantees under subsection (f) of this section
      and Congress does not enact a joint resolution pursuant to this
      subsection, the provision of additional loan guarantees under the
      program established by this section may be resumed only if the
      President determines and so reports to Congress that the reasons
      for the suspension have been resolved or that the resumption is
      otherwise in the national interest.
    (h) Economic context
      The effective absorption of immigrants into Israel from the
    republics of the former Soviet Union and Ethiopia within the
    private sector requires large investment and economic restructuring
    to promote market efficiency and thereby contribute to productive
    employment and sustainable growth. Congress recognizes that the
    Government of Israel is developing an economic strategy designed to
    achieve these goals, and that the Government of Israel intends to
    adopt a comprehensive, multi-year economic strategy based on
    prudent macroeconomic policies and structural reforms. Congress
    also recognizes that these policies are being designed to reduce
    direct involvement of the government in the economic system and to
    promote private enterprise, important prerequisites for economic
    stability and sustainable growth.
    (i) Consultations
      It is the sense of the Congress that, as agreed between the two
    Governments and in order to further the policies specified in
    subsection (h) of this section, Israel and the United States should
    continue to engage in consultations concerning economic and
    financial measures, including structural and other reforms, that
    Israel should undertake during the pendency of this program to
    enable its economy to absorb and resettle immigrants and to
    accommodate the increased debt burden that will result from loans
    guaranteed pursuant to this section. It is the sense of the
    Congress that these consultations on economic measures should
    address progress and plans in the areas of budget policies,
    privatization, trade liberalization, financial and capital markets,
    labor markets, competition policy, and deregulation.
    (j) Goods and services
      During the pendency of the loan program authorized under this
    section, it is anticipated that, in the context of the economic
    reforms undertaken pursuant to subsections (h) and (i) of this
    section, Israel's increased population due to its absorption of
    immigrants, and the liberalization by the Government of Israel of
    its trade policy with the United States, the amount of United
    States investment goods and services purchased for use in or with
    respect to the country of Israel will substantially increase.
    (k) Reports
      The President shall report to Congress by December 31 of each
    fiscal year until December 31, 1999, regarding the implementation
    of this section.
    (l) Applicability of certain sections
      Section 2183 of this title shall apply to guarantees issued under
    subsection (a) of this section in the same manner as such section
    applies to guarantees issued under section 2182 of this title,
    except that subsections (a), (e)(1), (g), and (j) of section 2183
    of this title shall not apply to such guarantees and except that,
    to the extent section 2183 of this title is inconsistent with the
    Federal Credit Reform Act of 1990 [2 U.S.C. 661 et seq.], that Act
    shall apply. Loans shall be guaranteed under this section without
    regard to sections 2181, 2182, and 2198(c) of this title.
    Notwithstanding section 2183(f) of this title, the interest rate
    for loans guaranteed under this section may include a reasonable
    fee to cover the costs and fees incurred by the borrower in
    connection with this program or financing under this section in the
    event the borrower elects not to finance such costs or fees out of
    loan principal. Guarantees once issued hereunder shall be
    unconditional and fully and freely transferable.
    (m) Terms and conditions
      (1) Each loan guarantee issued under this section shall guarantee
    100 percent of the principal and interest payable on such loans.
      (2) The standard terms of any loan or increment guaranteed under
    this section shall be 30 years with semiannual payments of interest
    only over the first 10 years, and with semiannual payments of
    principal and interest on a level payment basis, over the last 20
    years thereof, except that the guaranteed loan or any increments
    issued in a single transaction may include obligations having
    different maturities, interest rates, and payment terms if the
    aggregate scheduled debt service for all obligations issued in a
    single transaction equals the debt service for a single loan or
    increment of like amount having the standard terms described in
    this sentence. The guarantor shall not have the right to accelerate
    any guaranteed loan or increment or to pay any amounts in respect
    of the guarantees issued other than in accordance with the original
    payment terms of the loan. For purposes of determining the maximum
    principal amount of any loan or increment to be guaranteed under
    this section, the principal amount of each such loan or increment
    shall be - 
        (A) in the case of any loan issued on a discount basis, the
      original issue price (excluding any transaction costs) thereof;
      or
        (B) in the case of any loan issue (!1) on an interest-bearing
      basis, the stated principal amount thereof.