[House Report 118-332]
[From the U.S. Government Publishing Office]


118th Congress }                                               {   Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                               {  118-332

======================================================================



 
                 NO U.S. FINANCING FOR IRAN ACT OF 2023

                                _______
                                

 December 19, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. McHenry, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 5921]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 5921) to prohibit the Secretary of the Treasury 
from authorizing certain transactions by a United States 
financial institution in connection with Iran, to prevent the 
International Monetary Fund from providing financial assistance 
to Iran, to codify prohibitions on Export-Import Bank financing 
for the Government of Iran, and for other purposes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``No U.S. Financing for Iran Act of 
2023''.

SEC. 2. PROHIBITION ON AUTHORIZATIONS FOR UNITED STATES FINANCIAL 
                    INSTITUTIONS.

  The Secretary of the Treasury may not authorize a transaction by a 
U.S. financial institution (as defined in section 561.309 of title 31, 
Code of Federal Regulations) in connection with the importation from or 
exportation to the Islamic Republic of Iran of any goods, services, or 
technology, other than the sale of agricultural commodities, food, 
medicine, medical devices, or humanitarian assistance benefitting the 
civilian population of Iran.

SEC. 3. OPPOSITION TO IMF ASSISTANCE.

  The Secretary of the Treasury shall instruct the United States 
Executive Director at the International Monetary Fund to--
          (1) oppose the provision of financial assistance by the Fund 
        to the Islamic Republic of Iran, and the allocation to the 
        Government of Iran of Special Drawing Rights; and
          (2) seek to ensure that member countries of the Fund prohibit 
        the exchange of Special Drawing Rights held by the Government 
        of Iran.

SEC. 4. CODIFICATION OF EXPORT-IMPORT BANK PROHIBITION WITH RESPECT TO 
                    IRAN.

  Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)) 
is amended by adding at the end the following:
          ``(14) Prohibition on financing for iran.--The Bank may not 
        guarantee, insure, or extend (or participate in an extension 
        of) credit in connection with any transaction, with respect to 
        which credit assistance from the Bank is first sought after the 
        effective date of this paragraph, for which a lender or obligor 
        is the Government of Iran or an entity owned or controlled by 
        the Government of Iran.''.

SEC. 5. SUNSET.

  This Act and the amendment made by this Act are hereby repealed 
effective on the earliest of--
          (1) the date that is 30 days after the date the President of 
        the United States certifies to the Congress that the Government 
        of Iran--
                  (A) has ceased providing support for acts of 
                international terrorism; and
                  (B) is not a jurisdiction of primary money laundering 
                concern, as described under section 5318A of title 31, 
                United States Code; or
          (2) 10 years after the date of the enactment of this Act.

                          Purpose and Summary

    Introduced on October 11, 2023, by Representative Bill 
Huizenga, H.R. 5921, the No U.S. Financing for Iran Act of 
2023, would prohibit the Secretary of the Department of the 
Treasury from issuing any licenses authorizing a U.S. financial 
institution to engage in transactions for trade with Iran, 
other than food, medicine, or medical devices benefitting 
Iranian civilians. The legislation would also require the 
Secretary to oppose International Monetary Fund (IMF) 
assistance to Iran and to ensure that IMF member companies do 
not exchange Special Drawing Rights (SDRs) held by Iran. H.R. 
5921 would further prohibit the Export-Import Bank from 
providing assistance involving the Iranian government, or an 
entity owned or controlled by the government.

                  Background and Need for Legislation

    Iran is subject to a comprehensive array of sanctions, many 
of which are imposed pursuant to Executive Orders invoking the 
International Emergency Economic Powers Act (IEEPA). The 
Department of the Treasury's (Treasury) Office of Foreign 
Assets Control (OFAC) may, however, issue licenses authorizing 
certain transactions between U.S. persons and sanctioned 
Iranians. Given that Iran is designated as a jurisdiction of 
primary money laundering concern and a state sponsor of 
terrorism, H.R. 5921 would prohibit OFAC licenses to protect 
the U.S. financial system from exposure to the country. This 
means that relief from IEEPA sanctions would ultimately require 
approval from Congress. Exceptions regarding agricultural, 
commodities, food, and medical items for Iranian civilians 
reflect traditional sanctions exemptions.
    H.R. 5921 would also ensure that the Treasury cuts off 
Iran's ability to use the IMF as a lender of last resort. This 
includes a requirement that Treasury oppose allocations and 
exchanges of SDRs. In 2021, the Biden Administration approved 
an IMF allocation of SDRs that provided the Iranian government 
with over $4 billion in unconditional liquidity. In addition to 
supplementing Iran's official reserves, SDRs may be exchanged 
by Tehran for hard currency (dollars, euros, sterling, yen, and 
renminbi).
    The Export-Import Bank is already prohibited under the 
Foreign Assistance Act from providing assistance to state 
sponsors of terrorism such as Iran. H.R. 5921 would ensure that 
this prohibition could not be lifted unless Iran also ceases to 
be a jurisdiction of primary money laundering concern.

                                Hearing

    Pursuant to clause 3(c)(6) of rule XIII, the following 
hearing was used to develop H.R. 5921: The Subcommittee on 
National Security, Illicit Finance, and International Financial 
Institutions of the Committee on Financial Services held a 
hearing on October 25, 2023, titled ``How America and Its 
Allies Can Stop Hamas, Hezbollah, and Iran from Evading 
Sanctions and Financing Terror.''

                        Committee Consideration

    The Committee on Financial Services met in open session on 
November 14, 2023, and ordered H.R. 5921 to be reported 
favorably to the House as amended by a recorded vote of 34 ayes 
to 12 nays (Record vote no. FC-108), a quorum being present. 
Before the question was called to order the bill favorably 
reported, the Committee adopted an amendment in the nature of a 
substitute offered by Mr. Huizenga by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the order to report legislation and amendments thereto. H.R. 
5921 was ordered reported favorably to the House as amended by 
a recorded vote of 34 ayes to 12 nays (Record vote no. FC-108), 
a quorum being present.


                      Committee Oversight Findings

    Pursuant to clause 3(c) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee, based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the goal of H.R. 5921 is to prohibit 
the Secretary of the Treasury from issuing any licenses 
authorizing a U.S. financial institution to engage in 
transactions for trade with Iran, other than food, medicine, or 
medical devices benefitting Iranian civilians.

                 Congressional Budget Office Estimates

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:


   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives, the Committee adopts as its own the 
estimate of new budget authority, entitlement authority, or tax 
expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1973.

                       Federal Mandates Statement

    Pursuant to section 423 of the Unfunded Mandates Reform 
Act, the Committee adopts as its own the estimate of the 
Federal mandates prepared by the Director of the Congressional 
Budget Office.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
Federal program, including any program that was included in a 
report to Congress pursuant to section 21 of the Public Law 
111-139 or the most recent Catalog of Federal Domestic 
Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This Act may be cited as the ``No U.S. Financing for Iran 
Act of 2023''.

Section 2. Prohibition on authorizations for United States financial 
        institutions

    The Secretary of the Treasury is not to authorize a 
transaction by a U.S. financial institution that is in any way 
connected to the importation from or exportation to Iran.
    Any sales of goods, services, or technology connected to 
the importation from or exportation to Iran is prohibited, 
other than those directly benefitting Iranian civilians, such 
as agricultural commodities, food, medicine, or medical 
devices.

Section 3. Opposition to International Monetary Fund assistance

    The Secretary of the Treasury will instruct the U.S. 
Executive Director at the International Monetary Fund to do the 
following:
          1. Oppose the financial assistance provision by the 
        Fund to the Islamic Republic of Iran and any allocation 
        of Special Drawing Rights to the Iranian government; 
        and
          2. Ensure that other member countries of the Fund 
        prohibit the Iranian government from exchanging its 
        Special Drawing Rights allocation.

Section 4. Codification of Export-Import Bank Prohibition with respect 
        to Iran

    Section 4 amends Section 2(b) of the Export-Import Bank Act 
of 1945 (12 U.S.C 635(b)) by adding the following stipulation:
           Prohibition on Financing for Iran: The 
        Bank may not guarantee, insure, or extend credit in 
        connection with any transaction that a lender or 
        obligor is the Government of Iran or an entity owned or 
        controlled by the Government of Iran, with respect to 
        which credit assistance from the Bank is first sought 
        after the effective date of this paragraph.

Section 5. Sunset

    This Act and the amendment made by this Act will sunset 
effective on the earlier of the following two scenarios:
           The date that is 30 days after the date 
        the President of the United States has certified to 
        Congress that the Government of Iran:
                  1. No longer provides support for 
                international acts of terrorism; and
                  2. Is not considered to be a jurisdiction of 
                primary money laundering concern; or
           10 years after this Act's enactment 
        date.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                     EXPORT-IMPORT BANK ACT OF 1945


   Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That this 
Act may be cited as the ``Export-Import Bank Act of 1945.''
  Sec. 2. (a)(1) There is hereby created a corporation with the 
name Export-Import Bank of the United States which shall be an 
agency of the United States of America. The objects and 
purposes of the Bank shall be to aid in financing and to 
facilitate exports of goods and services, imports, and the 
exchange of commodities and services between the United States 
or any of its territories or insular possessions and any 
foreign country or the agencies or nationals of any such 
country, and in so doing to contribute to the employment of 
United States workers. The Bank's objective in authorizing 
loans, guarantees, insurance, and credits shall be to 
contribute to maintaining or increasing employment of United 
States workers. In connection with and in furtherance of its 
objects and purposes, the Bank is authorized and empowered to 
do a general banking business except that of circulation; to 
receive deposits; to purchase, discount, rediscount, sell, and 
negotiate, with or without its endorsement or guaranty, and to 
guarantee notes, drafts, checks, bills of exchange, 
acceptances, including bankers' acceptances, cable transfers, 
and other evidences of indebtedness; to guarantee, insure, co-
insure, reinsure against political and credit risks of loss; to 
purchase, sell, and guarantee securities but not to purchase 
with its funds any stock in any other corporation except that 
it may acquire any such stock, through the enforcement of any 
lien or pledge or otherwise to satisfy a previously contracted 
indebtedness to it; to accept bills and drafts drawn upon it; 
to issue letters of credit; to purchase and sell coin, bullion, 
and exchange; to borrow and to lend money; to perform any act 
herein authorized in participation with any other person, 
including any individual, partnership, corporation, or 
association; to adopt, alter, and use a corporate seal, which 
shall be judicially noticed; to sue and to be sued, to complain 
and to defend in any court of competent jurisdiction; to 
represent itself or to contract for representation in all legal 
and arbitral proceedings outside the United States; and the 
enumeration of the foregoing powers shall not be deemed to 
exclude other powers necessary to the achievement of the 
objects and purposes of the Bank. The Bank shall be entitled to 
the use of the United States mails in the same manner and upon 
the same conditions as the executive departments of the 
Government. The Bank is authorized to publish or arrange for 
the publications of any documents, reports, contracts, or other 
material necessary in connection with or in furtherance of its 
objects and purposes without regard to the provisions of 
section 501 of title 44, United States Code, whenever the Bank 
determines that publication in accordance with the provisions 
of such section would not be practicable. Subject to 
regulations which the Bank shall issue pursuant to section 553 
of title 5, United States Code, the Bank may impose and collect 
reasonable fees to cover the costs of conferences and seminars 
sponsored by, and publications provided by, the Bank, and may 
accept reimbursement for travel and subsistence expenses 
incurred by a director, officer, or employee of the Bank, in 
accordance with subchapter I of chapter 57 of title 5, United 
States Code. Amounts received under the preceding sentence 
shall be credited to the fund which initially paid for such 
activities and shall be offset against the expenses of the Bank 
for such activities. The Bank is hereby authorized to use all 
of its assets and all moneys which have been or may thereafter 
be allocated to or borrowed by it in the exercise of its 
functions. Net earnings of the Bank after reasonable provision 
for possible losses shall be used for payment of dividends on 
capital stock. Any such dividends shall be deposited into the 
Treasury as miscellaneous receipts.
  (2) In order for the Bank to be competitive in all of its 
financing programs with countries whose exports compete with 
United States exports, the Bank shall establish a program 
that--
          (A) provides medium-term financing where necessary to 
        be fully competitive--
                  (i) at rates of interest to the customer 
                which are equal to rates established in 
                international agreements;
                  (ii) in amounts up to 85 percent of the total 
                cost of the exports involved; and
                  (iii) with principal amounts of not more than 
                $25,000,000; and
          (B) enables the Bank to cooperate fully with the 
        Secretary of Commerce and the Administrator of the 
        Small Business Administration to develop a program for 
        purposes of disseminating information (using existing 
        private institutions) to small business concerns 
        regarding the medium-term financing provided under this 
        paragraph.
  (3) Enhancement of Medium-Term Program.--To enhance the 
medium-term financing program established pursuant to paragraph 
(2), the Bank shall establish measures to--
          (A) improve the competitiveness of the Bank's medium-
        term financing and ensure that its medium-term 
        financing is fully competitive with that of other major 
        official export credit agencies;
          (B) ease the administrative burdens and procedural 
        and documentary requirements imposed on the users of 
        medium-term financing;
          (C) attract the widest possible participation of 
        private financial institutions and other sources of 
        private capital in the medium-term financing of United 
        States exports; and
          (D) render the Bank's medium-term financing as 
        supportive of United States exports as is its Direct 
        Loan Program.
  (b)(1)(A) It is the policy of the United States to foster 
expansion of exports of manufactured goods, agricultural 
products, and other goods and services, thereby contributing to 
the promotion and maintenance of high levels of employment and 
real income, a commitment to reinvestment and job creation, and 
the increased development of the productive resources of the 
United States. To meet this objective in all its programs, the 
Export-Import Bank is directed, in the exercise of its 
functions, to provide guarantees, insurance, and extensions of 
credit at rates and on terms and other conditions which are 
fully competitive with the Government-supported rates and terms 
and other conditions available for the financing of exports of 
goods and services from the principal countries whose exporters 
compete with United States exporters, including countries the 
governments of which are not members of the Arrangement (as 
defined in section 10(h)(3)). The Bank shall, in cooperation 
with the export financing instrumentalities of other 
governments, seek to minimize competition in Government-
supported export financing and shall, in cooperation with other 
appropriate United States Government agencies, seek to reach 
international agreements to reduce government subsidized export 
financing.
  (B) It is further the policy of the United States that loans 
made by the Bank in all its programs shall bear interest at 
rates determined by the Board of Directors, consistent with the 
Bank's mandate to support United States exports at rates and on 
terms and conditions which are fully competitive with exports 
of other countries, and consistent with international 
agreements. For the purpose of the preceding sentence, rates 
and terms and conditions need not be identical in all respects 
to those offered by foreign countries, but should be 
established so that the effect of such rates, terms, and 
conditions for all the Bank's programs, including those for 
small businesses and for medium-term financing, will be to 
neutralize the effect of such foreign credit on international 
sales competition. The Bank shall consider its average cost of 
money as one factor in its determination of interest rates, 
where such consideration does not impair the Bank's primary 
function of expanding United States exports through fully 
competitive financing. The Bank may not impose a credit 
application fee unless (i) the fee is competitive with the 
average fee charged by the Bank's primary foreign competitors, 
and (ii) the borrower or the exporter is given the option of 
paying the fee at the outset of the loan or over the life of 
the loan and the present value of the fee determined under 
either such option is the same amount. It is also the policy of 
the United States that the Bank in the exercise of its 
functions should supplement and encourage, and not compete 
with, private capital; that the Bank, in determining whether to 
provide support for a transaction under the loan, guarantee, or 
insurance program, or any combination thereof, shall consider 
the need to involve private capital in support of United States 
exports as well as the cost of the transaction as calculated in 
accordance with the requirements of the Federal Credit Reform 
Act of 1990; that the Bank shall accord equal opportunity to 
export agents and managers, independent export firms, export 
trading companies, and small commercial banks in the 
formulation and implementation of its programs; that the Bank 
should give emphasis to assisting new and small business 
entrants in the agricultural export market, and shall, in 
cooperation with other relevant Government agencies, including 
the Commodity Credit Corporation, develop a program of 
education to increase awareness of export opportunities among 
small agribusinesses and cooperatives, that loans, so far as 
possible consistent with the carrying out of the purposes of 
subsection (a) of this section, shall generally be for specific 
purposes, and, in the judgment of the Board of Directors, offer 
reasonable assurance of repayment; and that in authorizing any 
loan or guarantee, the Board of Directors shall take into 
account any serious adverse effect of such loan or guarantee on 
the competitive position of United States industry, the 
availability of materials which are in short supply in the 
United States, and employment in the United States, and shall 
give particular emphasis to the objective of strengthening the 
competitive position of United States exporters and thereby of 
expanding total United States exports. Only in cases where the 
President, after consultation with the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate, determines 
that such action would be in the national interest where such 
action would clearly and importantly advance United States 
policy in such areas as international terrorism (including, 
when relevant, a foreign nation's lack of cooperation in 
efforts to eradicate terrorism), nuclear proliferation, the 
enforcement of the Foreign Corrupt Practices Act of 1977, the 
Arms Export Control Act, the International Emergency Economic 
Powers Act, or the Export Administration Act of 1979, 
environmental protection and human rights (such as are provided 
in the Universal Declaration of Human Rights adopted by the 
United Nations General Assembly on December 10, 1948) 
(including child labor), should the Export-Import Bank deny 
applications for credit for nonfinancial or noncommercial 
considerations. Each such determination shall be delivered in 
writing to the President of the Bank, shall state that the 
determination is made pursuant to this section, and shall 
specify the applications or categories of applications for 
credit which should be denied by the Bank in furtherance of the 
national interest.
  (C) Consistent with the policy of section 501 of the Nuclear 
Non-Proliferation Act of 1978 and section 119 of the Foreign 
Assistance Act of 1961, the Board of Directors shall name an 
officer of the Bank whose duties shall include advising the 
President of the Bank on ways or promoting the export of goods 
and services to be used in the development, production, and 
distribution of nonnuclear renewable energy resources, 
disseminating information concerning export opportunities and 
the availability of Bank support for such activities, and 
acting as a liaison between the Bank and the Department of 
Commerce and other appropriate departments and agencies.
  (D) It is further the policy of the United States to foster 
the delivery of United States services in international 
commerce. In exercising its powers and functions, the Bank 
shall give full and equal consideration to making loans and 
providing guarantees for the export of services (independently, 
or in conjunction with the export of manufactured goods, 
equipment, hardware or other capital goods) consistent with the 
Bank's policy to neutralize foreign subsidized credit 
competition and to supplement the private capital market.
  (E)(i)(I) It is further the policy of the United States to 
encourage the participation of small business (including women-
owned businesses, minority-owned businesses, veteran-owned 
businesses, businesses owned by persons with disabilities, and 
businesses in rural areas) and start-up businesses in 
international commerce, and to educate such businesses about 
how to export goods using the Bank.
  (II) In exercising its authority, the Bank shall develop a 
program which gives fair consideration to making loans and 
providing guarantees for the export of goods and services by 
small businesses.
  (ii) It is further the policy of the United States that the 
Bank shall give due recognition to the policy stated in section 
2(a) of the Small Business Act that ``the Government should 
aid, counsel, assist, and protect, insofar as is possible, the 
interests of small business concerns in order to preserve free 
competitive enterprise''.
  (iii) In furtherance of this policy, the Board of Directors 
shall designate an officer of the Bank who--
          (I) shall be responsible to the President of the Bank 
        for all matters concerning or affecting small business 
        concerns; and
          (II) among other duties, shall be responsible for 
        advising small business concerns of the opportunities 
        for small business concerns in the functions of the 
        Bank, with particular emphasis on conducting outreach 
        and increasing loans to socially and economically 
        disadvantaged small business concerns (as defined in 
        section 8(a)(4) of the Small Business Act), small 
        business concerns (as defined in section 3(a) of the 
        Small Business Act) owned by women, and small business 
        concerns (as defined in section 3(a) of the Small 
        Business Act) employing fewer than 100 employees, and 
        for maintaining liaison with the Small Business 
        Administration and other departments and agencies in 
        matters affecting small business concerns.)
  (iv) The Director appointed to represent the interests of 
small business under section 3(c) of this Act shall ensure that 
the Bank carries out its responsibilities under clauses (ii) 
and (iii) of this subparagraph and that the Bank's financial 
and other resources are, to the maximum extent possible, 
appropriately used for small business needs.
  (v) To assure that the purposes of clauses (i) and (ii) of 
this subparagraph are carried out, the Bank shall make 
available, from the aggregate loan, guarantee, and insurance 
authority available to it, an amount to finance exports 
directly by small business concerns (as defined under section 3 
of the Small Business Act) which shall be not less than 25 
percent of such authority for each fiscal year. From the amount 
made available under the preceding sentence, it shall be a goal 
of the Bank to increase the amount made available to finance 
exports directly by small business concerns referred to in 
section 3(i)(1). For the purpose of calculating the amounts of 
authority required under this clause, the Bank shall, with 
respect to insurance, exclude unutilized authorizations that 
terminated during the fiscal year.
  (vi) The Bank shall utilize the amount set-aside pursuant to 
clause (v) of this subparagraph to offer financing for small 
business exports on terms which are fully competitive with 
regard to interest rates and with regard to the portion of 
financing which may be provided, guaranteed, or insured. 
Financing under this clause (vi) shall be available without 
regard to whether financing for the particular transaction was 
disapproved by any other Federal agency.
  (vii)(I) The Bank shall utilize a part of the amount set 
aside pursuant to clause (v) to provide lines of credit or 
guarantees to consortia of small or medium size banks, export 
trading companies, State export finance agencies, export 
financing cooperatives, small business investment companies (as 
defined in section 103 of the Small Business Investment Act of 
1958), or other financing institutions or entities in order to 
finance small business exports.
  (II) Financing under this clause (vii) shall be made 
available only where the consortia or the participating 
institutions agree to undertake processing, servicing, and 
credit evaluation functions in connection with such financing.
  (III) To the maximum extent practicable, the Bank shall 
delegate to the consortia or other financing institutions or 
entities the authority to approve financing under this clause 
(vii).
  (IV) In the administration of the program under this clause 
(vii), the Bank shall provide appropriate technical assistance 
to participating consortia and may require such consortia 
periodically to furnish information to the Bank regarding the 
number and amount of loans made and the creditworthiness of the 
borrowers.
  (viii) In order to assure that the policy stated in clause 
(i) is carried out, the Bank shall promote small business 
exports and its small business export financing programs in 
cooperation with the Secretary of Commerce, the Office of 
International Trade of the Small Business Administration, and 
the private sector, particularly small business organizations, 
State agencies, chambers of commerce, banking organizations, 
export management companies, export trading companies and 
private industry.
  (ix) The Bank shall provide, through creditworthy trade 
associations, export trading companies, State export finance 
companies, export finance cooperatives, and other multiple-
exporter organizations, medium-term risk protection coverage 
for the members and clients of such organizations. Such 
coverage shall be made available to each such organization 
under a single risk protection policy covering its members or 
clients. Nothing in this provision shall be interpreted as 
limiting the Bank's authority to deny support for specific 
transactions or to disapprove a request by such an organization 
to participate in such coverage.
  (x) The Bank shall implement technology improvements that are 
designed to improve small business outreach, including allowing 
customers to use the Internet to apply for the Bank's small 
business programs.
  (F) Consistent with international agreements, the Bank shall 
urge the Foreign Credit Insurance Association to provide 
coverage against 100 per centum of any loss with respect to 
exports having a value of less than $100,000.
  (G) Participation in or access to long-, medium-, and short-
term financing, guarantees, and insurance provided by the Bank 
shall not be denied solely because the entity seeking 
participation or access is not a bank or is not a United States 
person.
  (H)(i) It is further the policy of the United States to 
foster the development of democratic institutions and market 
economies in countries seeking such development, and to assist 
the export of high technology items to such countries.
  (ii) In exercising its authority, the Bank shall develop a 
program for providing guarantees and insurance with respect to 
the export of high technology items to countries making the 
transition to market based economies, including eligible East 
European countries (within the meaning of section 3 of the 
Support For East European Democracy (SEED) Act of 1989).
  (iii) As part of the ongoing marketing and outreach efforts 
of the Bank, the Bank shall, to the maximum extent practicable, 
inform high technology companies, particularly small business 
concerns (as such term is defined in section 3 of the Small 
Business Act), about the programs of the Bank for United States 
companies interested in exporting high technology goods to 
countries making the transition to market based economies, 
including any eligible East European country (within the 
meaning of section 3 of the Support For East European Democracy 
(SEED) Act of 1989).
  (iv) In carrying out clause (iii), the Bank shall--
          (I) work with other agencies involved in export 
        promotion and finance; and
          (II) invite State and local governments, trade 
        centers, commercial banks, and other appropriate public 
        and private organizations to serve as intermediaries 
        for the outreach efforts.
  (I) The President of the Bank shall undertake efforts to 
enhance the Bank's capacity to provide information about the 
Bank's programs to small and rural companies which have not 
previously participated in the Bank's programs. Not later than 
1 year after the date of enactment of this subparagraph, the 
President of the Bank shall submit to Congress a report on the 
activities undertaken pursuant to this subparagraph.
  (J) The Bank shall implement an electronic system designed to 
track all pending transactions of the Bank.
  (K) The Bank shall promote the export of goods and services 
related to renewable energy sources, energy efficiency 
(including battery electric vehicles, batteries for electric 
vehicles, and electric vehicle charging infrastructure), and 
energy storage. It shall be a goal of the Bank to ensure that 
not less than 5 percent of the applicable amount (as defined in 
section 6(a)(2)) is made available each fiscal year for the 
financing of renewable energy, energy efficiency (including 
battery electric vehicles, batteries for electric vehicles, and 
electric vehicle charging infrastructure), and energy storage 
technology exports.
  (L) The Bank shall require an applicant for assistance from 
the Bank to disclose whether the applicant has been found by a 
court of the United States to have violated the Foreign Corrupt 
Practices Act of 1977, the Arms Export Control Act, the 
International Emergency Economic Powers Act, or the Export 
Administration Act of 1979 within the preceding 12 months, and 
shall maintain, in cooperation with the Department of Justice, 
for not less than 3 years a record of such applicants so found 
to have violated any such Act.
  (M) Not later than 2 years after the date of the enactment of 
the Export-Import Bank Reform and Reauthorization Act of 2015, 
the Bank shall implement policies--
          (i) to accept electronic documents with respect to 
        transactions whenever possible, including copies of 
        bills of lading, certifications, and compliance 
        documents, in such manner so as not to undermine any 
        potential civil or criminal enforcement related to the 
        transactions; and
          (ii) to accept electronic payments in all of its 
        programs.
  (2) Prohibition on Aid to Marxist-Leninist Countries.--
          (A) In general.--The Bank in the exercise of its 
        functions shall not guarantee, insure, extend credit, 
        or participate in the extension of credit--
                  (i) in connection with the purchase or lease 
                of any product by a Marxist-Leninist country, 
                or agency or national thereof; or
                  (ii) in connection with the purchase or lease 
                of any product by any other foreign country, or 
                agency or national thereof, if the product to 
                be purchased or leased by such other country, 
                agency, or national is, to the knowledge of the 
                Bank, principally for use in, or sale or lease 
                to, a Marxist-Leninist country.
          (B) Marxist-Leninist country defined.--
                  (i) In general.--For purposes of this 
                paragraph, the term ``Marxist-Leninist 
                country'' means any country that maintains a 
                centrally planned economy based on the 
                principles of Marxism-Leninism, or is 
                economically and militarily dependent on any 
                other such country.
                  (ii) Specific countries deemed to be marxist-
                leninist.--Unless otherwise determined by the 
                President in accordance with subparagraph (C), 
                the following countries are deemed to be 
                Marxist-Leninist countries for purposes of this 
                paragraph:
                          (I) Democratic People's Republic of 
                        Korea.
                          (II) Democratic Republic of 
                        Afghanistan.
                          (III) People's Republic of China.
                          (IV) Republic of Cuba.
                          (V) Socialist Republic of Vietnam.
                          (VI) Tibet.
          (C) Presidential determination that a country has 
        ceased to be Marxist-Leninist.--If the President 
        determines that any country on the list contained in 
        subparagraph (B)(ii) has ceased to be a Marxist-
        Leninist country (within the definition of such term in 
        subparagraph (B)(i)), such country shall not be treated 
        as a Marxist-Leninist country for purposes of this 
        paragraph after the date of such determination, unless 
        the President subsequently determines that such country 
        has again become a Marxist-Leninist country.
          (D) Presidential determination relating to financing 
        in the national interest.--
                  (i) In general.--Subparagraph (A) shall not 
                apply to guarantees, insurance, or extensions 
                of credit by the Bank to a country, agency, or 
                national described in clause (i) or (ii) of 
                subparagraph (A) (in connection with 
                transactions described in such clauses) if the 
                President determines that such guarantees, 
                insurance, or extensions of credit are in the 
                national interest.
                  (ii) Separate determination for certain 
                transactions.--The President shall make a 
                separate determination under clause (i) for 
                each transaction described in clause (i) or 
                (ii) of subparagraph (A) for which the Bank 
                would extend a loan in an amount equal to or 
                greater than $50,000,000.
                  (iii) Report of clause (i) determinations to 
                congress.--Any determination by the President 
                under clause (i) shall be reported to the 
                Congress not later than the earlier of--
                          (I) the end of the 30-day period 
                        beginning on the date of such 
                        determination; or
                          (II) the date the Bank takes final 
                        action with respect to the first 
                        transaction involving the country, 
                        agency, or national for which such 
                        determination is made after the date of 
                        the enactment of the Export-Import Bank 
                        Amendments of 1974, unless a report of 
                        a determination with respect to such 
                        date of enactment.
                  (iv) Report of clause (ii) determinations to 
                congress.--Any determination by the President 
                under clause (ii) shall be reported to the 
                Congress not later than the earlier of--
                          (I) the end of the 30-day period 
                        beginning on the date of such 
                        determination; or
                          (II) the date the Bank takes final 
                        action with respect to the transaction 
                        for which such determination is made.
  (3) Except as provided by the fourth sentence of this 
paragraph, no loan or financial guarantee or general guarantee 
or insurance facility or combination thereof (i) in an amount 
which equals or exceeds $100,000,000, or (ii) for the export of 
technology, fuel, equipment, materials, or goods or services to 
be used in the construction, alteration, operation, or 
maintenance of nuclear power, enrichment, reprocessing, 
research, or heavy water production facilities, shall be 
finally approved by the Board of Directors of the Bank, unless 
in each case the Bank has submitted to the Congress with 
respect to such loan, financial guarantee, or combination 
thereof, a detailed statement describing and explaining the 
transaction, at least 25 days of continuous session of the 
Congress prior to the date of final approval. For the purpose 
of the preceding sentence, continuity of a session of the 
Congress shall be considered as broken only by an adjournment 
of the Congress sine die, and the days on which either House is 
not in session because of an adjournment of more than 3 days to 
a day certain shall be excluded in the computation of the 25 
day period referred to in such sentence. Such statement shall 
contain--
          (A) in the case of a loan or financial guarantee--
                  (i) a brief description of the purposes of 
                the transaction;
                  (ii) the identity of the party or parties 
                requesting the loan or financial guarantee;
                  (iii) the nature of the goods or services to 
                be exported and the use for which the goods or 
                services are to be exported; and
                  (iv) in the case of a general guarantee or 
                insurance facility--
                          (I) a description of the nature and 
                        purpose of the facility;
                          (II) the total amount of guarantees 
                        or insurance; and
                          (III) the reasons for the facility 
                        and its methods of operation; and
          (B) a full explanation of the reasons for Bank 
        financing of the transaction, the amount of the loan to 
        be provided by the Bank, the approximate rate and 
        repayment terms at which such loan will be made 
        available and the approximate amount of the financial 
        guarantee.
If the Bank submits a statement to the Congress under this 
paragraph and either House of Congress is in an adjournment for 
a period which continues for at least ten days after the date 
of submission of the statement, then any such loan or guarantee 
or combination thereof may, subject to the second sentence of 
this paragraph, be finally approved by the Board of Directors 
upon the termination of the twenty-five-day period referred to 
in the first sentence of this paragraph or upon the termination 
of a thirty-five-calendar-day period (which commences upon the 
date of submission of the statement), whichever occurs sooner.
  (4)(A) If the Secretary of State determines that--
          (i) any country that has agreed to International 
        Atomic Energy Agency nuclear safeguards materially 
        violates, abrogates, or terminates, after October 26, 
        1977, such safeguards;
          (ii) any country that has entered into an agreement 
        for cooperation concerning the civil use of nuclear 
        energy with the United States materially violates, 
        abrogates, or terminates, after October 26, 1977, any 
        guarantee or other undertaking to the United States 
        made in such agreement;
          (iii) any country that is not a nuclear-weapon state 
        detonates, after October 26, 1977, a nuclear explosive 
        device;
          (iv) any country willfully aids or abets, after June 
        29, 1994, any non-nuclear-weapon state to acquire any 
        such nuclear explosive device or to acquire 
        unsafeguarded special nuclear material; or
          (v) any person knowingly aids or abets, after the 
        date of enactment of the National Defense Authorization 
        Act for Fiscal Year 1997, any non-nuclear-weapon state 
        to acquire any such nuclear explosive device or to 
        acquire unsafeguarded special nuclear material,
then the Secretary of State shall submit a report to the 
appropriate committees of the Congress and to the Board of 
Directors of the Bank stating such determination and 
identifying each country or person the Secretary determines has 
so acted.
  (B)(i) If the Secretary of State makes a determination under 
subparagraph (A)(v) with respect to a foreign person, the 
Congress urges the Secretary to initiate consultations 
immediately with the government with primary jurisdiction over 
that person with respect to the imposition of the prohibition 
contained in subparagraph (C).
  (ii) In order that consultations with that government may be 
pursued, the Board of Directors of the Bank shall delay 
imposition of the prohibition contained in subparagraph (C) for 
up to 90 days if the Secretary of State requests the Board to 
make such delay. Following these consultations, the prohibition 
contained in subparagraph (C) shall apply immediately unless 
the Secretary determines and certifies to the Congress that 
that government has taken specific and effective actions, 
including appropriate penalties, to terminate the involvement 
of the foreign person in the activities described in 
subparagraph (A)(v). The Board of Directors of the Bank shall 
delay the imposition of the prohibition contained in 
subparagraph (C) for up to an additional 90 days if the 
Secretary requests the Board to make such additional delay and 
if the Secretary determines and certifies to the Congress that 
that government is in the process of taking the actions 
described in the preceding sentence.
  (iii) Not later than 90 days after making a determination 
under subparagraph (A)(v), the Secretary of State shall submit 
to the appropriate committees of the Congress a report on the 
status of consultations with the appropriate government under 
this subparagraph, and the basis for any determination under 
clause (ii) that such government has taken specific corrective 
actions.
  (C) The Board of Directors of the Bank shall not give 
approval to guarantee, insure, or extend credit, or participate 
in the extension of credit in support of United States exports 
to any country, or to or by any person, identified in the 
report described in subparagraph (A).
  (D) The prohibition in subparagraph (C) shall not apply to 
approvals to guarantee, insure, or extend credit, or 
participate in the extension of credit in support of United 
States exports to a country with respect to which a 
determination is made under clause (i), (ii), (iii), or (iv) of 
subparagraph (A) regarding any specific event described in such 
clause if the President determines and certifies in writing to 
the Congress not less than 45 days prior to the date of the 
first approval following the determination that it is in the 
national interest for the Bank to give such approvals.
  (E) The prohibition in subparagraph (C) shall not apply to 
approvals to guarantee, insure, or extend credit, or 
participate in the extension of credit in support of United 
States exports to or by a person with respect to whom a 
determination is made under clause (v) of subparagraph (A) 
regarding any specific event described in such clause if--
          (i) the Secretary of State determines and certifies 
        to the Congress that the appropriate government has 
        taken the corrective actions described in subparagraph 
        (B)(ii); or
          (ii) the President determines and certifies in 
        writing to the Congress not less than 45 days prior to 
        the date of the first approval following the 
        determination that--
                  (I) reliable information indicates that--
                          (aa) such person has ceased to aid or 
                        abet any non-nuclear-weapon state to 
                        acquire any nuclear explosive device or 
                        to acquire unsafeguarded special 
                        nuclear material; and
                          (bb) steps have been taken to ensure 
                        that the activities described in item 
                        (aa) will not resume; or
                  (II) the prohibition would have a serious 
                adverse effect on vital United States 
                interests.
  (F) For purposes of this paragraph:
          (i) The term ``country'' has the meaning given to 
        ``foreign state'' in section 1603(a) of title 28, 
        United States Code.
          (ii) The term ``knowingly'' is used within the 
        meaning of the term ``knowing'' in section 104(h)(3) of 
        the Foreign Corrupt Practices Act (15 U.S.C. 78dd-
        2(h)(3)).
          (iii) The term ``person'' means a natural person as 
        well as a corporation, business association, 
        partnership, society, trust, any other nongovernmental 
        entity, organization, or group, and any governmental 
        entity operating as a business enterprise, and any 
        successor of any such entity.
          (iv) The term ``nuclear-weapon state'' has the 
        meaning given the term in Article IX(3) of the Treaty 
        on the Non-Proliferation of Nuclear Weapons, signed at 
        Washington, London, and Moscow on July 1, 1968.
          (v) The term ``non-nuclear-weapon state'' has the 
        meaning given the term in section 830(5) of the Nuclear 
        Proliferation Prevention Act of 1994 (Public Law 103-
        236; 108 Stat. 521).
          (vi) The term ``nuclear explosive device'' has the 
        meaning given the term in section 830(4) of the Nuclear 
        Proliferation Prevention Act of 1994 (Public Law 103-
        236; 108 Stat. 521).
          (vii) The term ``unsafeguarded special nuclear 
        material'' has the meaning given the term in section 
        830(8) of the Nuclear Proliferation Prevention Act of 
        1994.
  (5) The Bank shall not guarantee, insure, or extend credit, 
or participate in the extension of credit in connection with 
(A) the purchase of any product, technical data, or other 
information by a national or agency of any nation which engages 
in armed conflict declared or otherwise, with the Armed Forces 
of the United States, (B) the purchase by any nation (or 
national or agency thereof) of any product, technical data, or 
other information which is to be used principally by or in any 
such nation described in clause (A), or (C) the purchase of any 
liquid metal fast breeder nuclear reactor or any nuclear fuel 
reprocessing facility. The Bank shall not guarantee, insure, or 
extend credit, or participate in the extension of credit in 
connection with the purchase of any product, technical data, or 
other information by a national or agency of any nation if the 
President determines that any such transaction would be 
contrary to the national interest.
  (6)(A) The Bank shall not guarantee, insure, or extend 
credit, or participate in an extension of credit in connection 
with any credit sale of defense articles and defense services 
to any country.
  (B) Subparagraph (A) shall not apply to any sale of defense 
articles or services if--
          (i) the Bank is requested to provide a guarantee or 
        insurance for the sale;
          (ii) the President determines that the defense 
        articles or services are being sold primarily for anti-
        narcotics purposes;
          (iii) section 490(e) of the Foreign Assistance Act of 
        1961 does not apply with respect to the purchasing 
        country; and
          (iv) the President determines, in accordance with 
        subparagraph (C), that the sale is in the national 
        interest of the United States; and
          (v) the Bank determines that, notwithstanding the 
        provision of a guarantee or insurance for the sale, not 
        more than 5 percent of the guarantee and insurance 
        authority available to the Bank in any fiscal year will 
        be used by the Bank to support the sale of defense 
        articles or services.
  (C) In determining whether a sale of defense articles or 
services would be in the national interest of the United 
States, the President shall take into account whether the sale 
would--
          (i) be consistent with the anti-narcotics policy of 
        the United States;
          (ii) involve the end use of a defense article or 
        service in a major illicit drug producing or major 
        drug-transit country (as defined in section 481(e) of 
        the Foreign Assistance Act of 1961); and
          (iii) be made to a country with a democratic form of 
        government.
  (D)(i) The Board shall not give approval to guarantee or 
insure a sale of defense articles or services unless--
          (I) the President determines, in accordance with 
        subparagraph (C), that it is in the national interest 
        of the United States for the Bank to provide such 
        guarantee or insurance;
          (II) the President determines, after consultation 
        with the Assistant Secretary of State for Human Rights 
        and Humanitarian Affairs, that the purchasing country 
        has complied with all restrictions imposed by the 
        United States on the end use of any defense articles or 
        services for which a guarantee or insurance was 
        provided under subparagraph (B), and has not used any 
        such defense articles or services to engage in a 
        consistent pattern of gross violations of 
        internationally recognized human rights; and
          (III) such determinations have been reported to the 
        Speaker and the Committee on Financial Services of the 
        House of Representatives, and to the Committee on 
        Banking, Housing, and Urban Affairs and the Committee 
        on Foreign Relations of the Senate, not less than 25 
        days of continuous session of the Congress before the 
        date of such approval.
          (ii) For purposes of clause (i), continuity of a 
        session of the Congress shall be considered as broken 
        only by an adjournment of the Congress sine die, and 
        the days on which either House is not in session 
        because of an adjournment of more than 3 days to a day 
        certain shall be excluded in the computation of the 25-
        day period referred to in such clause.
  (E) The provision of a guarantee or insurance under 
subparagraph (B) shall be deemed to be the provision of 
security assistance for purposes of section 502B of the Foreign 
Assistance Act of 1961 (relating to governments which engage in 
a consistent pattern of gross violations of internationally 
recognized human rights).
  (F) To the extent that defense articles or services for which 
a guarantee or insurance is provided under subparagraph (B) are 
used for a purpose other than anti-narcotics purposes, they may 
be used only for those purposes for which defense articles and 
defense services sold under the Arms Export Control Act 
(relating to the foreign military sales program) may be used 
under section 4 of such Act.
  (G) As used in subparagraphs (B), (C), (D), and (F), the term 
``defense articles or services'' means articles, services, and 
related technical data that are designated as defense articles 
and defense services pursuant to sections 38 and 47(7) of the 
Arms Export Control Act and listed on the United States 
Munitions List (part 121 of title 22 of the Code of Federal 
Regulations).
  (H) Once in each calendar quarter, the Bank shall submit a 
report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Committee on Financial Services of the 
House of Representatives on all instances in which the Bank, 
during the reporting quarter, guaranteed, insured, or extended 
credit or participated in an extension of credit in connection 
with any credit sale of an article, service, or related 
technical data described in subparagraph (G) that the Bank 
determined would not be put to a military use or described in 
subparagraph (I)(i). Such report shall include a description of 
each of the transactions and the justification for the Bank's 
actions.
  (I)(i) Subparagraph (A) shall not apply to a transaction 
involving defense articles or services if--
          (I) the Bank determines that--
                  (aa) the defense articles or services are 
                nonlethal; and
                  (bb) the primary end use of the defense 
                articles or services will be for civilian 
                purposes; and
          (II) at least 15 calendar days before the date on 
        which the Board of Directors of the Bank gives final 
        approval to Bank participation in the transaction, the 
        Bank provides notice of the transaction to the 
        Committees on Financial Services and on Appropriations 
        of the House of Representatives and the Committees on 
        Banking, Housing, and Urban Affairs and on 
        Appropriations of the Senate.
  (ii) Not more than 10 percent of the loan, guarantee, and 
insurance authority available to the Bank for a fiscal year may 
be used by the Bank to support the sale of defense articles or 
services to which subparagraph (A) does not apply by reason of 
clause (i) of this subparagraph.
  (iii) Not later than September 1 of each fiscal year, the 
Comptroller General of the United States, in consultation with 
the Bank, shall submit to the Committees on Financial Services 
and on Appropriations of the House of Representatives and the 
Committees on Banking, Housing, and Urban Affairs and on 
Appropriations of the Senate a report on the end uses of any 
defense articles or services described in clause (i) with 
respect to which the Bank provided support during the second 
preceding fiscal year.
  (7) In no event shall the Bank have outstanding at any time 
in excess of 7\1/2\ per centum of the limitation imposed by 
section 7 of this Act for such guarantees, insurance, credits 
or participation in credits with respect to exports of defense 
articles and services to countries which, in the judgment of 
the Board of Directors of the Bank, are less developed.
  (8) The Bank shall supplement but not compete with private 
capital and the programs of the Commodity Credit Corporation to 
ensure that adequate financing will be made available to assist 
the export of agricultural commodities, except that, consistent 
with section 2(b)(1)(A) of this Act, the Bank in assisting any 
such export transactions shall, in cooperation with the export 
financing instrumentalities of other governments, seek to 
minimize competition in Government-supported export financing, 
and shall, in cooperation with other appropriate United States 
Government agencies, seek to reach international agreements to 
reduce Government subsidized export financing. In order to 
carry out the purposes of this subsection, the Bank shall 
consult with the Secretary of Agriculture and where the 
Secretary of Agriculture has recommended against Bank financing 
of the export of a particular agricultural commodity, shall 
take such recommendation into consideration in determining 
whether to provide credit or other assistance for any export 
sale of such commodity, and shall consider the importance of 
agricultural commodity exports to the United States export 
market and the Nation's balance of trade in deciding whether or 
not to provide assistance under this subsection.
  (9)(A) The Board of Directors of the Bank shall, in 
consultation with the Secretary of Commerce and the Trade 
Promotion Coordinating Committee, take prompt measures, 
consistent with the credit standards otherwise required by law, 
to promote the expansion of the Bank's financial commitments in 
sub-Saharan Africa under the loan, guarantee, and insurance 
programs of the Bank.
  (B)(i) The Board of Directors shall establish and use an 
advisory committee to advise the Board of Directors on the 
development and implementation of policies and programs 
designed to support the expansion described in subparagraph 
(A).
  (ii) The advisory committee shall make recommendations to the 
Board of Directors on how the Bank can facilitate greater 
support by United States commercial banks for trade with sub-
Saharan Africa.
  (iii) The advisory committee shall terminate on the date on 
which the authority of the Bank expires under section 7.
  (C) The Bank shall include in the annual report to the 
Congress submitted under section 8(a) a separate section that 
contains a report on the efforts of the Bank to--
          (i) improve its working relationships with the 
        African Development Bank, the African Export-Import 
        Bank, and other institutions in the region that are 
        relevant to the purposes of subparagraph (A) of this 
        paragraph; and
          (ii) coordinate closely with the United States 
        Foreign Service and Foreign Commercial Service, and 
        with the overall strategy of the United States 
        Government for economic engagement with Africa pursuant 
        to the African Growth and Opportunity Act.
  (D) Consistent with the requirement that the Bank obtain a 
reasonable assurance of repayment in connection with each 
transaction the Bank supports, the Bank shall, in consultation 
with the entities described in subparagraph (C), seek to 
qualify a greater number of appropriate African entities for 
participation in programs of the Bank.
  (10)(A) The Bank shall not, without a specific authorization 
by law, guarantee, insure, or extend credit (or participate in 
the extension of credit) to--
          (i) assist specific countries with balance of 
        payments financing; or
          (ii) assist (as the primary purpose of any such 
        guarantee, insurance, or credit) any country in the 
        management of its international indebtedness, other 
        than its outstanding obligations to the Bank.
  (B) Nothing contained in subparagraph (A) shall preclude 
guarantees, insurance, or credit the primary purpose of which 
is to support United States exports.
  (11) Prohibition Relating to Angola.--The Bank may not 
guarantee, insure, or extend (or participate in the extension 
of) credit in connection with any export of any good (other 
than food or an agricultural commodity) or service to the 
People's Republic of Angola until the President certifies to 
the Congress that free and fair elections have been held in 
Angola in which all participants were afforded free and fair 
access, and that the government of Angola--
          (A) is willing, and is actively seeking, to achieve 
        an equitable political settlement of the conflict in 
        Angola, including free and fair elections, through a 
        mutual cease-fire and a dialogue with the opposition 
        armed forces;
          (B) has demonstrated progress in protecting 
        internationally recognized human rights, and 
        particularly in--
                  (i) ending, through prosecution or other 
                means, involvement of members of the military 
                and security forces in political violence and 
                abuses of internationally recognized human 
                rights;
                  (ii) vigorously prosecuting persons engaged 
                in political violence who are connected with 
                the government; and
                  (iii) bringing to justice those responsible 
                for the abduction, torture, and murder of 
                citizens of Angola and citizens of the United 
                States; and
          (C) has demonstrated progress in its respect for, and 
        protection of--
                  (i) the freedom of the press;
                  (ii) the freedom of speech;
                  (iii) the freedom of assembly;
                  (iv) the freedom of association (including 
                the right to organize for political purposes);
                  (v) internationally recognized worker rights; 
                and
                  (vi) other attributes of political pluralism 
                and democracy.
The President shall include in each report made pursuant to 
this paragraph a detailed statement with respect to each of the 
conditions set forth in this paragraph. This paragraph shall 
not be construed to impose any requirement with respect to 
Angola that is more restrictive than any requirement imposed by 
this section generally on all other countries.
  (12) Prohibition relating to russian transfers of certain 
missile systems.--If the President of the United States 
determines that the military or Government of the Russian 
Federation has transferred or delivered to the People's 
Republic of China an SS-N-22 missile system and that the 
transfer or delivery represents a significant and imminent 
threat to the security of the United States, the President of 
the United States shall notify the Bank of the transfer or 
delivery as soon as practicable. Upon receipt of the notice and 
if so directed by the President of the United States, the Board 
of Directors of the Bank shall not give approval to guarantee, 
insure, extend credit, or participate in the extension of 
credit in connection with the purchase of any good or service 
by the military or Government of the Russian Federation.
  (13) Prohibition on assistance to develop or promote certain 
railway connections and railway-related connections.--The Bank 
shall not guarantee, insure, or extend (or participate in the 
extension of) credit in connection with the export of any good 
or service relating to the development or promotion of any 
railway connection or railway-related connection that does not 
traverse or connect with Armenia and does traverse or connect 
Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey.
          (14) Prohibition on financing for iran.--The Bank may 
        not guarantee, insure, or extend (or participate in an 
        extension of) credit in connection with any 
        transaction, with respect to which credit assistance 
        from the Bank is first sought after the effective date 
        of this paragraph, for which a lender or obligor is the 
        Government of Iran or an entity owned or controlled by 
        the Government of Iran.
[Section 4 of H.R. 5921 (as reported) amends section 2(b) by 
adding at the end a new paragraph (14). Section 5 of such bill 
(as reported), provides for a sunset date to the Act and the 
amendment made by section 4. Effective on such date, such 
paragraph (14) (as added) is repealed as follows:]
          [(14) Prohibition on financing for iran.--The Bank 
        may not guarantee, insure, or extend (or participate in 
        an extension of) credit in connection with any 
        transaction, with respect to which credit assistance 
        from the Bank is first sought after the effective date 
        of this paragraph, for which a lender or obligor is the 
        Government of Iran or an entity owned or controlled by 
        the Government of Iran.]
  (c)(1) The Bank shall charge fees and premiums commensurate, 
in the judgment of the Bank, with risks covered in connection 
with the contractual liability that the Bank incurs for 
guarantees, insurance, coinsurance, and reinsurance against 
political and credit risks of loss.
  (2) The Bank may issue such guarantees, insurance, 
coinsurance, and reinsurance to or with exporters, insurance 
companies, financial institutions, or others, or groups 
thereof, and where appropriate may employ any of the same to 
act as its agent in the issuance and servicing of such 
guarantees, insurance, coinsurance, and reinsurance, and the 
adjustment of claims arising thereunder.
  (3) Transferability of Guarantees.--
          (A) In general.--With respect to medium-term and 
        long-term obligation insured or guaranteed by the Bank 
        after the date of the enactment of the Export-Import 
        Bank Act Amendments of 1986, the Bank shall authorize 
        the unrestricted transfer of such obligations by the 
        originating lenders or their transferees to other 
        lenders without affecting, limiting, or terminating the 
        guarantee or insurance provided by the Bank.
          (B) Guarantee coverage.--For the guarantee program 
        provided for in this subsection, the Bank may provide 
        up to 100 percent coverage of the interest and 
        principal if the Board of Directors determines such 
        coverage to be necessary to ensure acceptance of Bank 
        guarantees by financial institutions for any 
        transaction in any export market in which the Bank is 
        open for business.
  (d)(1) In carrying out its responsibilities under this Act, 
the Bank shall work to ensure that United States companies are 
afforded an equal and nondiscriminatory opportunity to bid for 
insurance in connection with transactions assisted by the Bank.
  (2) Competitive opportunity for insurance companies.--In the 
case of any long-term loan or guarantee of not less than 
$25,000,000, the Bank shall seek to ensure that United States 
insurance companies are accorded a fair and open competitive 
opportunity to provide insurance against risk of loss in 
connection with any transaction with respect to which such loan 
or guarantee is provided.
  (3) Responsive actions.--If the Bank becomes aware that a 
fair and open competitive opportunity is not accorded to any 
United States insurance company in a foreign country with 
respect to which the Bank is considering a loan or guarantee, 
the Bank--
          (A) may approve or deny the loan or guarantee after 
        considering whether such action would be likely to 
        achieve competitive access for United States insurance 
        companies; and
          (B) shall forward information regarding any foreign 
        country that denies United States insurance companies a 
        fair and open competitive opportunity to the Secretary 
        of Commerce and to the United States Trade 
        Representative for consideration of a recommendation to 
        the President that access by such country to export 
        credit of the United States should be restricted.
  (4) Notice of approval.--If the Bank approves a loan or 
guarantee with respect to a foreign country notwithstanding 
information regarding denial by that foreign country of 
competitive opportunities for United States insurance 
companies, the Bank shall include notice of such approval and 
the reason for such approval in the report on competition in 
officially supported export credit required under subsection 
(b)(1)(A).
  (5) Definitions.--For purposes of this section--
          (A) the term ``United States insurance company''--
                  (i) includes an individual, partnership, 
                corporation, holding company, or other legal 
                entity which is authorized (or in the case of a 
                holding company, subsidiaries of which are 
                authorized) by a State to engage in the 
                business of issuing insurance contracts or 
                reinsuring the risk underwritten by insurance 
                companies; and
                  (ii) includes foreign operations, branches, 
                agencies, subsidiaries, affiliates, or joint 
                ventures of any entity described in clause (i); 
                and
          (B) the term ``fair and open competitive 
        opportunity'' means, with respect to the provision of 
        insurance by a United States insurance company, that 
        the company--
                  (i) has received notice of the opportunity to 
                provide such insurance; and
                  (ii) has been evaluated for such opportunity 
                on a nondiscriminatory basis.
  (e) Limitation on Assistance Which Adversely Affect the 
United States.--
          (1) In General.--The Bank may not extend any direct 
        credit of financial guarantee for establishing or 
        expanding production of any commodity for export by any 
        country other than the United States, if--
                  (A) the Bank determines that--
                          (i) the commodity is likely to be in 
                        surplus on world markets at the time 
                        the resulting commodity will first be 
                        sold; or
                          (ii) the resulting production 
                        capacity is expected to compete with 
                        United States production of the same, 
                        similar, or competing commodity; and
                  (B) the Bank determines that the extension of 
                such credit or guarantee will cause substantial 
                injury to United States producers of the same, 
                similar, or competing commodity.
        In making the determination under subparagraph (B), the 
        Bank shall determine whether the facility that would 
        benefit from the extension of a credit or guarantee is 
        reasonably likely to produce a commodity in addition 
        to, or other than, the commodity specified in the 
        application and whether the production of the 
        additional commodity may cause substantial injury to 
        United States producers of the same, or a similar or 
        competing, commodity.
          (2) Outstanding orders and preliminary injury 
        determinations.--
                  (A) Orders.--The Bank shall not provide any 
                loan or guarantee to an entity for the 
                resulting production of substantially the same 
                product that is the subject of--
                          (i) a countervailing duty or 
                        antidumping order under title VII of 
                        the Tariff Act of 1930; or
                          (ii) a determination under title II 
                        of the Trade Act of 1974.
                  (B) Affirmative determination.--Within 60 
                days after the date of the enactment of this 
                paragraph, the Bank shall establish procedures 
                regarding loans or guarantees provided to any 
                entity that is subject to a preliminary 
                determination of a reasonable indication of 
                material injury to an industry under title VII 
                of the Tariff Act of 1930. The procedures shall 
                help to ensure that these loans and guarantees 
                are likely to not result in a significant 
                increase in imports of substantially the same 
                product covered by the preliminary 
                determination and are likely to not have a 
                significant adverse impact on the domestic 
                industry. The Bank shall report to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate on the 
                implementation of these procedures.
                  (C) Comment period.--The Bank shall establish 
                procedures under which the Bank shall notify 
                interested parties and provide a comment period 
                of not less than 14 days (which, on request of 
                any affected party, shall be extended to a 
                period of not more than 30 days) with regard to 
                loans or guarantees reviewed pursuant to 
                subparagraph (B) or (D).
                  (D) Consideration of investigations under 
                title ii of the trade act of 1974.--In making 
                any determination under paragraph (1) for a 
                transaction involving more than $10,000,000, 
                the Bank shall consider investigations under 
                title II of the Trade Act of 1974 that have 
                been initiated at the request of the President 
                of the United States, the United States Trade 
                Representative, the Committee on Finance of the 
                Senate, or the Committee on Ways and Means of 
                the House of Representatives, or by the 
                International Trade Commission on its own 
                motion.
                  (E) Anti-circumvention.--The Bank shall not 
                provide a loan or guarantee if the Bank 
                determines that providing the loan or guarantee 
                will facilitate circumvention of an order or 
                determination referred to in subparagraph (A).
          (3) Exception.--Paragraphs (1) and (2) shall not 
        apply in any case where, in the judgment of the Board 
        of Directors of the Bank, the short- and long-term 
        benefits to industry and employment in the United 
        States are likely to outweigh the short- and long-term 
        injury to United States producers and employment of the 
        same, similar, or competing commodity.
          (4) Definition.--For purposes of paragraph (1)(B), 
        the extension of any credit or guarantee by the Bank 
        will cause substantial injury if the amount of the 
        capacity for production established, or the amount of 
        the increase in such capacity expanded, by such credit 
        or guarantee equals or exceeds 1 percent of United 
        States production.
          (5) Designation of sensitive commercial sectors and 
        products.--Not later than 120 days after the date of 
        the enactment of this Act, the Bank shall submit a list 
        to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on Financial Services 
        of the House of Representatives, which designates 
        sensitive commercial sectors and products with respect 
        to which the provision of financing support by the Bank 
        is deemed unlikely by the President of the Bank due to 
        the significant potential for a determination that such 
        financing support would result in an adverse economic 
        impact on the United States. The President of the Bank 
        shall review on an annual basis thereafter the list of 
        sensitive commercial sectors and products and the Bank 
        shall submit an updated list to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and 
        the Committee on Financial Services of the House of 
        Representatives of such sectors and products.
          (6) Financial threshold determinations.--For purposes 
        of determining whether a proposed transaction exceeds a 
        financial threshold under this subsection or under the 
        procedures or rules of the Bank, the Bank shall 
        aggregate the dollar amount of the proposed transaction 
        and the dollar amounts of all loans and guarantees, 
        approved by the Bank in the preceding 24-month period, 
        that involved the same foreign entity and substantially 
        the same product to be produced.
          (7) Procedures to reduce adverse effects of loans and 
        guarantees on industries and employment in united 
        states.--
                  (A) Consideration of economic effects of 
                proposed transactions.--If, in making a 
                determination under this paragraph with respect 
                to a loan or guarantee, the Bank conducts a 
                detailed economic impact analysis or similar 
                study, the analysis or study, as the case may 
                be, shall include consideration of--
                          (i) the factors set forth in 
                        subparagraphs (A) and (B) of paragraph 
                        (1); and
                          (ii) the views of the public and 
                        interested parties.
                  (B) Notice and comment requirements.--
                          (i) In general.--If, in making a 
                        determination under this subsection 
                        with respect to a loan or guarantee, 
                        the Bank intends to conduct a detailed 
                        economic impact analysis or similar 
                        study, the Bank shall publish in the 
                        Federal Register a notice of the 
                        intent, and provide a period of not 
                        less than 14 days (which, on request by 
                        any affected party, shall be extended 
                        to a period of not more than 30 days) 
                        for the submission to the Bank of 
                        comments on the economic effects of the 
                        provision of the loan or guarantee, 
                        including comments on the factors set 
                        forth in subparagraphs (A) and (B) of 
                        paragraph (1). In addition, the Bank 
                        shall seek comments on the economic 
                        effects from the Department of 
                        Commerce, the Office of Management and 
                        Budget, the Committee on Banking, 
                        Housing, and Urban Affairs of the 
                        Senate, and the Committee on Financial 
                        Services of the House of 
                        Representatives.
                          (ii) Content of notice.--The notice 
                        shall include appropriate, 
                        nonproprietary information about--
                                  (I) the country to which the 
                                goods involved in the 
                                transaction will be shipped;
                                  (II) the type of goods being 
                                exported;
                                  (III) the amount of the loan 
                                or guarantee involved;
                                  (IV) the goods that would be 
                                produced as a result of the 
                                provision of the loan or 
                                guarantee;
                                  (V) the amount of increased 
                                production that will result 
                                from the transaction;
                                  (VI) the potential sales 
                                market for the resulting goods; 
                                and
                                  (VII) the value of the 
                                transaction.
                          (iii) Procedure regarding materially 
                        changed applications.--
                                  (I) In general.--If a 
                                material change is made to an 
                                application for a loan or 
                                guarantee from the Bank after a 
                                notice with respect to the 
                                intent described in clause (i) 
                                is published under this 
                                subparagraph, the Bank shall 
                                publish in the Federal Register 
                                a revised notice of the intent, 
                                and shall provide for a comment 
                                period, as provided in clauses 
                                (i) and (ii).
                                  (II) Material change 
                                defined.--As used in subclause 
                                (I), the term ``material 
                                change'', with respect to an 
                                application, includes--
                                          (aa) a change of at 
                                        least 25 percent in the 
                                        amount of a loan or 
                                        guarantee requested in 
                                        the application; and
                                          (bb) a change in the 
                                        principal product to be 
                                        produced as a result of 
                                        any transaction that 
                                        would be facilitated by 
                                        the provision of the 
                                        loan or guarantee.
                  (C) Requirement to address views of adversely 
                affected persons.--Before taking final action 
                on an application for a loan or guarantee to 
                which this section applies, the staff of the 
                Bank shall provide in writing to the Board of 
                Directors the views of any person who submitted 
                comments pursuant to subparagraph (B).
                  (D) Publication of conclusions.--Within 30 
                days after a party affected by a final decision 
                of the Board of Directors with respect to a 
                loan or guarantee makes a written request 
                therefor, the Bank shall provide to the 
                affected party a non-confidential summary of 
                the facts found and conclusions reached in any 
                detailed economic impact analysis or similar 
                study conducted pursuant to subparagraph (B) 
                with respect to the loan or guarantee, that 
                were submitted to the Board of Directors.
                  (E) Maintenance of documentation.--The Bank 
                shall maintain documentation relating to 
                economic impact analyses and similar studies 
                conducted under this subsection in a manner 
                consistent with the Standards for Internal 
                Control of the Federal Government issued by the 
                Comptroller General of the United States.
                  (F) Rule of interpretation.--This paragraph 
                shall not be construed to make subchapter II of 
                chapter 5 of title 5, United States Code, 
                applicable to the Bank.
                  (G) Regulations.--The Bank shall implement 
                such regulations and procedures as may be 
                appropriate to carry out this paragraph.
  (f) Authority To Deny Application for Assistance Based on 
Fraud or Corruption by Party Involved in the Transaction.--In 
addition to any other authority of the Bank, the Bank may deny 
an application for assistance with respect to a transaction if 
the Bank has substantial credible evidence that any party to 
the transaction or any party involved in the transaction has 
committed an act of fraud or corruption in connection with the 
transaction, and shall deny an application for assistance if 
the end user, borrower, lender, or exporter has been convicted 
of an act of fraud or corruption in connection with an 
application for support from the Bank made in the preceding 5 
years. The Bank may proceed with an application described in 
this subsection only if an end user, borrower, lender, or 
exporter can be fully excluded from the transaction.
  (g) Process for Notifying Applicants of Application Status.--
The Bank shall establish and adhere to a clearly defined 
process for--
          (1) acknowledging receipt of applications;
          (2) informing applicants that their applications are 
        complete or, if incomplete or containing a minor 
        defect, of the additional material or changes that, if 
        supplied or made, would make the application eligible 
        for consideration; and
          (3) keeping applicants informed of the status of 
        their applications, including a clear and timely 
        notification of approval or disapproval, and, in the 
        case of disapproval, the reason for disapproval, as 
        appropriate.
  (h) Response to Application for Financing; Implementation of 
Online Loan Request and Tracking Process.--
          (1) Response to applications.--Within 5 days after 
        the Bank receives an application for financing, the 
        Bank shall notify the applicant that the application 
        has been received, and shall include in the notice--
                  (A) a request for such additional information 
                as may be necessary to make the application 
                complete;
                  (B) the name of a Bank employee who may be 
                contacted with questions relating to the 
                application; and
                  (C) a unique identification number which may 
                be used to review the status of the application 
                at a website established by the Bank.
          (2) Website.--Not later than September 1, 2007, the 
        Bank shall exercise the authority granted by 
        subparagraphs (E)(x) and (J) of subsection (b)(1) to 
        establish, and thereafter to maintain, a website 
        through which--
                  (A) Bank products may be applied for; and
                  (B) information may be obtained with respect 
                to--
                          (i) the status of any such 
                        application;
                          (ii) the Small Business Division of 
                        the Bank; and
                          (iii) incentives, preferences, 
                        targets, and goals relating to small 
                        business concerns (as defined in 
                        section 3(a) of the Small Business 
                        Act), including small business concerns 
                        exporting to Africa.
  (i) Due Diligence Standards for Lender Partners.--The Bank 
shall set due diligence standards for its lender partners and 
participants, which should be applied across all programs 
consistently. To minimize or prevent fraudulent activity, the 
Bank shall require all delegated lenders to implement ``Know 
your customer practices''.
  (j) Non-subordination Requirement.--In entering into 
financing contracts, the Bank shall seek a creditor status 
which is not subordinate to that of all other creditors, in 
order to reduce the risk to, and enhance recoveries for, the 
Bank.
  (k) Prohibition on Discrimination Based on Industry.--
          (1) In general.--Except as provided in this Act, the 
        Bank may not--
                  (A) deny an application for financing based 
                solely on the industry, sector, or business 
                that the application concerns; or
                  (B) promulgate or implement policies that 
                discriminate against an application based 
                solely on the industry, sector, or business 
                that the application concerns.
          (2) Applicability.--The prohibitions under paragraph 
        (1) apply only to applications for financing by the 
        Bank for projects concerning the exploration, 
        development, production, or export of energy sources 
        and the generation or transmission of electrical power, 
        or combined heat and power, regardless of the energy 
        source involved.
  (l) Program on China and Transformational Exports.--
          (1) In general.--The Bank shall establish a Program 
        on China and Transformational Exports to support the 
        extension of loans, guarantees, and insurance, at rates 
        and on terms and other conditions, to the extent 
        practicable, that are fully competitive with rates, 
        terms, and other conditions established by the People's 
        Republic of China or by a covered country, that aim 
        to--
                  (A) directly neutralize export subsidies for 
                competing goods and services financed by 
                official export credit, tied aid, or blended 
                financing provided by the People's Republic of 
                China or by a covered country; or
                  (B) advance the comparative leadership of the 
                United States with respect to the People's 
                Republic of China, or support United States 
                innovation, employment, and technological 
                standards, through direct exports in any of the 
                following areas:
                          (i) Artificial intelligence.
                          (ii) Biotechnology.
                          (iii) Biomedical sciences.
                          (iv) Wireless communications 
                        equipment (including 5G or subsequent 
                        wireless technologies).
                          (v) Quantum computing.
                          (vi) Renewable energy, energy 
                        efficiency, and energy storage.
                          (vii) Semiconductor and semiconductor 
                        machinery manufacturing.
                          (viii) Emerging financial 
                        technologies, including technologies 
                        that facilitate--
                                  (I) financial inclusion 
                                through increased access to 
                                capital and financial services;
                                  (II) data security and 
                                privacy;
                                  (III) payments, the transfer 
                                of funds, and associated 
                                messaging services; and
                                  (IV) efforts to combat money 
                                laundering and the financing of 
                                terrorism.
                          (ix) Water treatment and sanitation, 
                        including technologies and 
                        infrastructure to reduce contaminants 
                        and improve water quality.
                          (x) High performance computing.
                          (xi) Associated services necessary 
                        for use of any of the foregoing 
                        exports.
          (2) Covered countries.--In this subsection, the term 
        ``covered country'' means any country that--
                  (A) the Secretary of the Treasury designates 
                as a covered country in a report to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Development of the Senate;
                  (B) is not a participant in the Arrangement 
                on Officially Supported Export Credits of the 
                Organization for Economic Cooperation and 
                Development (in this subsection referred to as 
                the ``Arrangement''); and
                  (C) is not in substantial compliance with the 
                financial terms and conditions of the 
                Arrangement.
          (3) Financing.--
                  (A) In general.--It shall be a goal of the 
                Bank to reserve not less than 20 percent of the 
                applicable amount (as defined in section 
                6(a)(2)) for support made pursuant to the 
                Program on China and Transformational Exports.
                  (B) Exception.--The Secretary of the Treasury 
                may reduce or eliminate the 20 percent goal in 
                subparagraph (A), on reporting to the Committee 
                on Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate that 
                the People's Republic of China is in 
                substantial compliance with--
                          (i) the financial terms and 
                        conditions of the Arrangement; and
                          (ii) the rules and principles of the 
                        Paris Club.
                  (C) Sunset and report.--The program 
                established under paragraph (1) shall expire on 
                December 31, 2026. Not later than 4 years after 
                enactment of this subsection, the President of 
                the Bank shall submit a report to the Committee 
                on Financial Services of the House of 
                Representatives and the Committee on Banking, 
                Housing, and Urban Affairs of the Senate 
                assessing the following:
                          (i) The capacity and demand of United 
                        States entities to export goods and 
                        services in the areas described in 
                        paragraph (1)(B), as assessed in 
                        consultation with the Secretary of 
                        Commerce.
                          (ii) The availability of private-
                        sector financing for exports in the 
                        areas.
                          (iii) The feasibility and 
                        advisability of continuing the goal of 
                        subparagraph (A) of this paragraph with 
                        respect to paragraph (1)(B) after 
                        December 31, 2026.
                  (D) National advisory council on 
                international monetary and financial 
                problems.--The National Advisory Council on 
                International Monetary and Financial Problems 
                shall ensure that Bank authorizations pursuant 
                to the Program on China and Transformational 
                Exports are considered or reviewed 
                expeditiously, consistent with the other credit 
                standards required by law.

                             MINORITY VIEWS

    H.R. 5921 hamstrings the Export-Import Bank of the United 
States (EXIM) and puts American small businesses at a 
disadvantage to foreign competitors when exporting their goods 
abroad. H.R. 5921 further requires the U.S. representative at 
the International Monetary Fund (IMF) to oppose all future 
Special Drawing Rights (SDRs), which have been a critical 
source of funds for developing countries in crisis.
    The Export-Import Bank of the United States (EXIM) is the 
official export credit agency of the United States. EXIM, like 
other government entities and all U.S. persons, is prohibited 
from doing business with the government of Iran and sanctioned 
persons related to the country. As such, EXIM has robust 
policies and practices in place to ensure that its funds and 
activities do not touch sanctioned persons (defined as 
individuals and entities).\1\ Further, all U.S. EXIM 
participants are required to do the same sanctions compliance 
(as do all U.S. persons), which generally prohibits them from 
engaging in transactions that directly or indirectly involve 
the government of Iran or others sanctioned through America's 
Iran-focused sanctions regime.\2\
---------------------------------------------------------------------------
    \1\EXIM, Fact Sheet on Iran Sanctions Certification Requirements. 
(May 10, 2022).
    \2\Id.
---------------------------------------------------------------------------
    However, H.R. 5921, according to EXIM, would substantially 
limit EXIM financing and impose significant burdens on EXIM by 
dramatically increasing the cost, processing time, and resource 
burden associated with reviewing every transaction. In 
addition, the bill would limit the willingness of U.S. 
exporters, foreign buyers, and other market participants to 
consider EXIM financing. Specifically, EXIM shared that,
          ``Under this proposed legislation, EXIM would now 
        have to conduct rigorous due diligence on every single 
        buyer of insured shipments, no matter how small. EXIM 
        and its insurance policyholders would need to expend 
        significant resources to track down and analyze the 
        ownership structures of every party to each of the 
        nearly 2,000 export credit insurance authorizations 
        that the agency processes each year (one insurance 
        policy authorization may require EXIM approval of 
        multiple buyers or transactions throughout the life of 
        the policy; EXIM staff end up processing approximately 
        8,000-9,000 applications per year associated with these 
        insurance policy authorizations). Many foreign buyers 
        may be unwilling to answer the kinds of detailed 
        questions that would be required to determine whether 
        they or any other entity in their ownership structure 
        are subject to control by the Government of Iran. 
        Furthermore, many small businesses already struggle to 
        conduct their own due diligence on prospective foreign 
        buyers. It would not be feasible to require them to 
        ascertain full ownership structures even for the 
        smallest export sale, which would dramatically affect 
        EXIM's ability to offer certain insurance products that 
        offer streamlined approval procedures. These burdens 
        would place EXIM and U.S. exporters at a significant 
        disadvantage when trying to compete to win sales in 
        foreign markets.''\3\
---------------------------------------------------------------------------
    \3\Email from EXIM staff to Minority Staff, House Financial 
Services Committee (Nov. 9, 2023).
---------------------------------------------------------------------------
    Additionally, the bill effectively requires the U.S. 
Executive Director of the IMF to oppose provision of any new 
SDRs to all IMF member countries. SDRs are international 
reserve assets created by the IMF for the benefit of member 
states of the IMF. Developing countries can exchange their SDRs 
with other countries for cash, that can then be used to finance 
government operations, serving as a critical supplement to 
their balance sheets. For example, the Biden Administration 
supported the largest allocation of SDRs in IMF history, $650 
billion during the COVID-19 pandemic, to ensure that developing 
countries had additional resources without costing the U.S. a 
penny.\4\
---------------------------------------------------------------------------
    \4\ IMF, Special Drawing Rights (SDR), (Accessed Dec. 4, 2023).
---------------------------------------------------------------------------
    This bill mandates that the U.S. Executive Director to the 
IMF oppose the provision of SDRs to Iran, but as a result, that 
would prevent all other countries from receiving any new SDRs. 
This is because the process of for approving SDR distributions 
is such that it is not possible to vote to exclude specific 
member countries from general allocations; it is instead an up 
or down vote on whether there should be a distribution of SDRs 
to all member countries or not. The sponsors of the legislation 
also fail to understand that SDRs, by themselves, are useless 
unless another country is willing to exchange them into cash. 
Because Iran is subject to extensive U.S. sanctions, Iran has 
not been able to exchange any of its SDRs in this century; this 
is due to the fact that no country would want to violate U.S. 
sanctions nor sanctions imposed by the United Kingdom, Canada, 
the European Union, and others. As a result, this bill is not 
necessary to prevent Iran from being able to access cash thru 
its SDRs, but would impose significant pain on developing 
countries around the world.
    For these reasons, we oppose H.R. 5921.
            Sincerely,
                                   Maxine Waters,
                                   Ranking Member, Committee on 
                                       Financial Services.
                                   Nydia M. Velazquez,
                                   Gregory W. Meeks,
                                   Stephen F. Lynch,
                                   Emanuel Cleaver II,
                                   Joyce Beatty,
                                   Sean Casten,
                                   Rashida Tlaib,
                                   Al Green,
                                   Bill Foster,
                                   Juan Vargas,
                                   Ayanna Pressley,
                                   Sylvia R. Garcia,
                                   Nikema Williams,
                                           Members of Congress.