7 U.S.C. § 5622 — Export credit guarantee program
submitted 36 years ago by Pub. L. 95-501 to r/title-7-AGRICULTURE · 733 words · no verdicts yet
The Commodity Credit Corporation may guarantee short-term credit for commercial exports of United States agricultural commodities. The section sets purposes, restrictions, eligibility rules, fish-product terms, consultations, and risk-based administration.
(a) The Corporation may guarantee repayment of credit financing commercial export sales from private stocks, including processed and high-value products, for terms of no more than 24 months.
(b) Guarantees may be used to (1) increase exports; (2) compete with foreign exports; (3) help countries meet food and fiber needs, especially (A) developing countries and (B) emerging markets pursuing policies promoting economic freedom, private domestic food production, and efficient markets; and (4) other purposes the Secretary* finds appropriate.
(c) They may not be used for foreign aid, foreign policy, or debt rescheduling. Cargo-preference laws do not apply to covered sales.
(d) Guarantees may not support a sale to an obligor the Secretary finds unable to service* the debt.
(e) Guarantees must contain terms the Corporation finds necessary.
(f) Only United States* agricultural commodities may be financed or guaranteed.
(g)(1) A financial institution cannot receive an assignment if it is the letter-of-credit issuer or its subsidiary, or is owned or controlled by an entity owning or controlling that issuer. (2) The Corporation may guarantee credit even when the obligor is in a different country from the destination.
(h) Guarantees for fish and processed fish must have terms comparable to guarantees for other agricultural commodities.
(i) The Secretary and United States Trade Representative shall regularly consult the listed House and Senate committees about multilateral negotiations on agricultural export-credit programs.
(j)(1) “Long term” means ten or more years. (2) The Secretary shall (A) develop ongoing, private-sector-informed risk evaluation that accurately and promptly updates country-risk designations; (B) adjust risk-based guarantees for effectiveness and United States competitiveness; (C) work with industry so fees cover long-term operating costs and losses as far as practicable; and (D) after consulting the listed committees, administer the program under terms agreed by the parties to address WTO dispute WTO/DS267, unless superseded by applicable international commitments on officially supported export credits to which the United States is party.
The Commodity Credit Corporation may guarantee the repayment of credit made available to finance commercial export sales of agricultural commodities, including processed agricultural products and high-value agricultural products, from privately owned stocks on credit terms that do not exceed a 24-month period.
The Commodity Credit Corporation may use export credit guarantees authorized under this section—
to increase exports of agricultural commodities;
to compete against foreign agricultural exports;
to assist countries in meeting their food and fiber needs, particularly—
developing countries; and
countries that are emerging markets that have committed to carry out, or are carrying out, policies that promote economic freedom, private domestic production of food commodities for domestic consumption, and the creation and expansion of efficient domestic markets for the purchase and sale of agricultural commodities; and
for such other purposes as the Secretary* determines appropriate.
Export credit guarantees authorized by this section shall not be used for foreign aid, foreign policy, or debt rescheduling purposes. The provisions of the cargo preference laws shall not apply to export sales with respect to which credit is guaranteed under this section.
The Commodity Credit Corporation shall not make credit guarantees available in connection with sales of agricultural commodities to any obligor that the Secretary determines cannot adequately service* the debt associated with such sale.
Export credit guarantees issued pursuant to this section shall contain such terms and conditions as the Commodity Credit Corporation determines to be necessary.
The Commodity Credit Corporation shall finance or guarantee under this section only United States agricultural commodities.
A financial institution shall be ineligible to receive an assignment of a credit guarantee issued by the Commodity Credit Corporation under this section if it is determined by the Corporation, at the time of the assignment, that such financial institution—
is the financial institution issuing the letter of credit or a subsidiary of such institution; or
is owned or controlled by an entity that owns or controls that financial institution issuing the letter of credit.
The Commodity Credit Corporation may guarantee under subsection (a) the repayment of credit made available to finance an export sale irrespective of whether the obligor is located in the country to which the export sale is destined.
In making available any guarantees of credit under this section in connection with sales of fish and processed fish products, the Secretary shall make such guarantees available under terms and conditions that are comparable to the terms and conditions that apply to guarantees provided with respect to sales of other agricultural commodities under this section.
The Secretary and the United States Trade Representative shall consult on a regular basis with the Committee on Agriculture, and the Committee on International Relations, of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate on the status of multilateral negotiations regarding agricultural export credit programs.
In this subsection, the term “long term” means a period of 10 or more years.
In administering the export credit guarantees authorized under this section, the Secretary shall—
develop an approach to risk evaluation that facilitates accurate country risk designations and timely adjustments to the designations (on an ongoing basis) in response to material changes in country risk conditions, with ongoing opportunity for input and evaluation from the private sector;
adjust risk-based guarantees as necessary to ensure program effectiveness and United States competitiveness;
work with industry to ensure, to the maximum extent practicable, that risk-based fees associated with the guarantees cover the operating costs and losses over the long term; and
notwithstanding any other provision of this section, administer and carry out (only after consulting with the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition and Forestry of the Senate) the program pursuant to such terms as may be agreed between the parties to address the World Trade Organization dispute WTO/DS267 to the extent not superseded by any applicable international undertakings on officially supported export credits to which the United States is a party.
Source credit: (Pub. L. 95–501, title II, § 202, as added Pub. L. 101–624, title XV, § 1531, Nov. 28, 1990, 104 Stat. 3673; amended Pub. L. 102–237, title III, § 334, Dec. 13, 1991, 105 Stat. 1859; Pub. L. 102–511, title VII, §§ 708, 709(a), Oct. 24, 1992, 106 Stat. 3351; Pub. L. 104–127, title II, §§ 243(a), 277(c)(3), Apr. 4, 1996, 110 Stat. 965, 979; Pub. L. 107–171, title III, § 3102(a)–(c), May 13, 2002, 116 Stat. 289; Pub. L. 110–246, title III, § 3101(a), (c), June 18, 2008, 122 Stat. 1831, 1832; Pub. L. 113–79, title III, § 3101(a), Feb. 7, 2014, 128 Stat. 778.)
- 1990Enacted · Pub. L. 95-501 · 104 Stat. 3673
- 1991Amended · Pub. L. 102-237 · 105 Stat. 1859
- 1992Amended · Pub. L. 102-511 · 106 Stat. 3351
- 1996Amended · Pub. L. 104-127 · 110 Stat. 965, 979
- 2002Amended · Pub. L. 107-171 · 116 Stat. 289
- 2008Amended · Pub. L. 110-246 · 122 Stat. 1831, 1832
- 2014Amended · Pub. L. 113-79 · 128 Stat. 778
A history note hasn’t been published yet. The record shows enactment by Pub. L. 95-501 on 1990-11-28.
all 0 arguments · sorted by: best
no arguments yet — make the first case