7 USC 5622 - Export credit guarantee program

U.S Code last checked for updates: Nov 22, 2024

§ 5622.

Export credit guarantee program

(a)

Short-term credit guarantees

(b)

Purpose of program

The Commodity Credit Corporation may use export credit guarantees authorized under this section—

(1)

to increase exports of agricultural commodities;

(2)

to compete against foreign agricultural exports;

(3)

to assist countries in meeting their food and fiber needs, particularly—

(A)

developing countries; and

(B)

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

(4)

for such other purposes as the Secretary determines appropriate.

(c)

Restrictions on use of credit guarantees

(d)

Restrictions

(e)

Terms

(f)

United States agricultural commodities

(g)

Ineligibility of financial institutions

(1)

In general

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—

(A)

is the financial institution issuing the letter of credit or a subsidiary of such institution; or

(B)

is owned or controlled by an entity that owns or controls that financial institution issuing the letter of credit.

(2)

Third country banks

(h)

Conditions for fish and processed fish products

(i)

Consultation on agricultural export credit programs

(j)

Administration

(1)

Definition of long term

(2)

Guarantees

In administering the export credit guarantees authorized under this section, the Secretary shall—

(A)

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;

(B)

adjust risk-based guarantees as necessary to ensure program effectiveness and United States competitiveness;

(C)

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

(D)

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.

(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.)

cite as: 7 USC 5622