The Export–Import Bank Reauthorization Act of 2012 amended the Export–Import Bank Act of 1945 to extend the termination of functions of the

Export–Import Bank of the United States The Export–Import Bank of the United States (EXIM) is the official export credit agency (ECA) of the United States federal government. Operating as a wholly owned federal government corporation, the bank "assists in financing and facilitating ...

, which helps financing and insuring foreign purchases of

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

goods for customers unable or unwilling to accept credit risk and to aid in creating and sustaining jobs in the United States by financing sales of U.S. produced exports to international buyers. The bill was signed into law on May 20, 2012 and moved the termination of the bank's functions date to September 30, 2014. In addition to placing additional reporting requirements on the bank, it also prohibits the bank from approving any guarantee, insurance, or extension of credit in connection with a borrower or controlling sponsor, or a person that is owned or controlled by such borrower or sponsor, that is subject to petroleum-related sanctions under the Iran Sanctions Act of 1996. The bank's functions were extended through June 30, 2015 as part of a continuing resolution Congress passed which provided FY2015 appropriations to federal agencies until December 11, 2014.

Act Sections

Section one is not shown, being only the titles and table of contents of the Act.

Section 2

" xtendsthe termination of functions date for the Export-Import Bank... to September 30, 2014".

Section 3

Increases limit for loans, guarantees, and insurance for the 2012 Fiscal Year to $120 billion.

Section 4

Requires that the Export-Import Bank submits a business plan to

Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...

and the Comptroller General. This business plan must include "estimates of anticipated growth for 2012-2014", risk potential analysis, and an analysis of Bank resources to moderate authorizations.

Section 5

Requires that the Comptroller General must submit an evaluation of the Bank's growth rate over time, "the effectiveness of the Bank's risk management," calculations of future program costs, Bank fees, and an analysis of the Bank's policy on loan loss reserves. The Bank must report a plan of implementing those recommendations to Congress.

Section 6

The Bank must also monitor

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, th ...

s of short-, medium-, and long-term financing, and report to Congress on a monthly basis if that rate is more than 2%. The report must include actions taken to reduce that rate.

Section 7

The Bank must set standards for its partners and participants, seek a higher credit status than all other creditors, and give due notice for transactions exceeding $100 million.

Section 10

The Bank must, annually, categorize each loan and guarantee for the following purposes: "(1) to assume commercial or political risk that exporter or private financial institutions are unwilling or unable to undertake; (2) to overcome maturity or other limitations in private sector export financing; (3) to meet foreign, officially sponsored, export credit competition; or (4) not identified and the reason why the purpose is not identified".

Section 11

The Secretary of the Treasury must "pursue negotiations with" major exporters to reduce and eliminate export subsidies and financing, and all countries that finance aircraft with state funds, to reduce and eliminate export financing for aircraft. The Secretary must report progress of these negotiations to Congress annually.

Section 12

The Bank must release guidelines for "conducting certain economic impact analyses or similar studies under the Export-Import Bank Act of 1945" to the public.

Section 13

The Bank must report to Congress its verdict on the recommendations in the September 2007 GAO report and its efforts to support small businesses in the United States.

Section 15

The Bank must review its efforts to create and maintain American jobs and contribute to the national economy through exportation of goods and services.

Section 16

The Comptroller General must submit to Congress a report of the efforts defined in Section 15 and make any recommendations that he/she deems appropriate.

Section 17

The Comptroller General must

audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...

quarterly the loans and guarantees of the Bank, so that the compliance of the Bank in its guidelines and policies can be determined. Also, the Comptroller General must review the effectiveness of the Bank's protection against fraudulent loans and guarantees.

Section 18

The Bank is not allowed to approve any guarantee, insurance, or extension of credit to anyone related to peoples under sanction as defined in the Iran Sanctions Act, Section 5(a).

Section 19

The Bank may use some of its surplus from each

Fiscal Year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...

to upgrade its technology. This spending is limited to $20 million.

Section 20

The textile industry now has representation in the Export-Import Bank Advisory Committee. The Committee should consider how it can promote the textile industry and support US exports of textiles, and promote jobs in the textile industry.

Section 21

The Bank must "report to Congress regarding the extent to which its products are available and used by U.S. manufacturers that export U.S.-manufactured goods used as components in global textile and apparel supply chains".

Section 23

The Sub-Saharan Africa Advisory Committee's termination date is extended to September 30, 2014.

Section 24

"Bank authority to provide financing for the export of nonlethal articles or services meant primarily for civilian purposes" is extended through the 2014 Fiscal Year.

Section 25

The Act will take effect either on June 1, 2012 or the date the Act is enacted, whichever comes first. The Act went into effect on May 30, 2012.

References

External links

Full Text of the Export–Import Bank Reauthorization Act of 2012
{{DEFAULTSORT:Export-Import Bank Reauthorization Act of 2012 Banking in the United States Foreign trade of the United States Acts of the 112th United States Congress