50 percent of the insurance being offered in each separate transaction.

(b) ADVISORY GROUP.

(1) ESTABLISHMENT AND MEMBERSHIP.-The Corporation shall establish a group to advise the Corporation on the development and implementation of the cooperative programs under this section. The group shall be appointed by the Board and shall be composed of up to 12 members, including the following:

(A) Up to seven persons from the private political risk insurance industry, of whom no fewer than two shall represent private political risk insurers, one shall represent private political risk reinsurers, and one shall represent insurance or reinsurance brokerage firms.

(B) Up to four persons, other than persons described in subparagraph (A), who are purchasers of political risk in

surance.

(2) FUNCTIONS.-The Corporation shall call upon members of the advisory group, either collectively or individually, to advise it regarding the capability of the private political risk insurance industry to meet the political risk insurance needs of United States investors, and regarding the development of cooperative programs to enhance such capability.

(3) MEETINGS.-The advisory group shall meet not later than September 30, 1989, and at least annually thereafter. The Corporation may from time to time convene meetings of selected members of the advisory group to address particular questions requiring their specialized knowledge.

(4) FEDERAL ADVISORY COMMITTEE ACT.-The advisory group shall not be subject to the Federal Advisory Committee Act (5 U.S.C. App.). Sec. 235.231 Issuing Authority, Direct Investment Authority and Reserves.

(a) 232 ISSUING AUTHORITY.—

(1) INSURANCE.-The maximum contingent liability outstanding at any one time pursuant to insurance issued under section 234(a) shall not exceed in the aggregate $13,500,000,000.233

(2) 234 FINANCING. (A) The maximum contingent liability outstanding at any one time pursuant to financing issued under subsections (b) and (c) of section 234 shall not exceed in the aggregate $9,500,000,000.

(B) Subject to spending authority provided in appropriations Acts pursuant to section 504(b) of the Federal Credit Reform Act of 1990, the Corporation is authorized to transfer such

23122 U.S.C. 2195. Sec. 235 was added by sec. 105 of the FA Act of 1969, originally as "Issuing Authority, Direct Investment Fund and Reserves". Sec. 104(aX1) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3651) struck out "Fund" in section caption, and inserted in lieu thereof "Authority".

232 Sec. 104(aX2) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3651) amended and restated subsec. (a), and par (3) of that subsec. repealed subsec. (b), which formerly established the Direct Investment Fund.

233 Sec. 101 of the Jobs Through Trade Expansion Act of 1994 (Public Law 103-392; 108 Stat. 4098) struck out "$9,000,000,000" and inserted in lieu thereof "$13,500,000,000".

234 Sec. 102 of the Jobs Through Trade Expansion Act of 1994 (Public Law 103-392; 108 Stat. 4098) amended and restated para. (2), to raise the maximum contingent liability to $9,500,000 from $2,500,000, and to make funds from noncredit activities available as necessary for subsidy costs accrued under sec. 234(b) and (c).

sums as are necessary from its noncredit activities to pay for the subsidy cost of the investment guaranties and direct loan programs under subsections (b) and (c) of section 234.

(3) TERMINATION OF AUTHORITY.-The authority of subsections (a) and (b) of section 234 shall continue until September 30, 1996.235

(b) 232 *** [Repealed-1992]

(c) There shall be established in the Treasury of the United States an insurance and guaranty fund, which shall have separate accounts to be known as the Insurance Reserve and the Guaranty Reserve, which reserves shall be available for discharge of liabilities, as provided in subsection (d) of this section 236 until such time as all such liabilities have been discharged or have expired or until all such reserves have been expended in accordance with the provisions of this section. Such fund shall be funded by: (1) the funds heretofore available to discharge liabilities under predecessor guaranty authority (including housing guaranty authorities), less both the amount made available for housing guaranty programs pursuant to section 223(b) and the amount made available to the Corporation pursuant to subsection (e) of this section 236 and (2) such

235 Sec. 4(2) of Public Law 95-268 (92 Stat. 214) extended the authority from Dec. 31, 1977, to Sept. 30, 1981. This date was further extended to Sept. 30, 1985, by sec. 5(bX1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1023). Sec. 10 of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1673), further extended the date from Sept. 30, 1985 to Sept. 30, 1988. Sec. 107 of the OPIC Amendments Act of 1988, H.R. 5263, enacted into law by reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268) extended the date from Sept. 30, 1988 to Sept. 30, 1992. Sec. 104(aX2) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3651) amended and restated subsec. (a), extending the issuing authority from September 30, 1992 to September 30, 1994. The authority was extended again from Sept, 30, 1994 to Sept. 30, 1996 by sec. 103 of the Jobs Through Trade Expansion Act of 1994 (Public Law 103-392; 108 Stat. 4098).

Title IV of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995 (Public Law 103-306; 108 Stat. 939), provided the following.

"OVERSEAS PRIVATE INVESTMENT CORPORATION

"NONCREDIT ACCOUNT

"The Overseas Private Investment Corporation is authorized to make, without regard to fiscal year limitations, as provided by 31 U.S.C. 9104, such expenditures and commitments within the limits of funds available to it and in accordance with law as may be necessary: Provided, That the amount available for administrative expenses to carry out the credit and insurance programs (including an amount for official reception and representation expenses which shall not exceed $35,000) shall not exceed $24,322,000: Provided further, That project-specific transaction costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided to specific investors or potential investors pursuant to section 234 of the Foreign Assistance Act of 1961, shall not be considered administrative expenses for the purposes of this heading.

"PROGRAM ACCOUNT

"For the cost of direct and guaranteed loans, $33,944,000, as authorized by section 234 of the Foreign Assistance Act of 1961, to be derived by transfer from the Overseas Private Investment Corporation Noncredit Account: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974: Provided further, That such sums shall be available for direct loan obligations and loan guaranty commitments incurred or made during fiscal years 1995 and 1996: Provided further, That such sums shall remain available through fiscal year 2003 for the disbursement of direct and guaranteed loans obligated in fiscal year 1995, and through fiscal year 2004 for the disbursement of direct and guaranteed loans obligated in fiscal year 1996. In addition, such sums as may be necessary for administrative expenses to carry out the credit program may be derived from amounts available for administrative expenses to carry out the credit and insurance programs in the Overseas Private Investment Corporation Noncredit Account and merged with said account.". See also sec. 513 of that Act (108 Stat. 1627), relating to commerce and trade.

236 Sec. 17(b) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1676) replaced references to "section 234(e)" and "section 235(f)" with references to "subsection (e)", or "subsection (j)", "of this section", and references to "section 235(d)" with "subsection (d) of this section".

sums as shall be appropriated pursuant to subsection (f) of this section for such purposes. The allocation of such funds to each such reserve shall be determined by the Board after consultation with the Secretary of the Treasury. Additional amounts may thereafter be transferred to such reserves pursuant to section 236.

(d) Any payment made to discharge liabilities under investment insurance or reinsurance issued under section 234 237 under similar predecessor guaranty authority or under section 234A,237 shall be paid first out of the Insurance Reserve, as long as such reserve remains available, and thereafter out of funds made available pursuant to subsection (f) of this section. Any payments made to discharge liabilities under guaranties issued under section 234(b) or under similar predecessor guaranty authority shall be paid first out of the Guaranty Reserve as long as such reserve remains available, and thereafter out of funds made available pursuant to subsection (f) of this section.236

(e) There is hereby authorized to be transferred to the Corporation at its call, for the purposes specified in section 236, all fees and other revenues collected under predecessor guaranty authority from December 31, 1968, available as of the date of such transfer.

(f) 238 There are authorized to be appropriated to the Corporation, to remain available until expended, such amounts as may be necessary from time to time to replenish or increase the insurance and guaranty fund, to discharge the liabilities under insurance, reinsurance, or guaranties issued by the Corporation or issued under predecessor guaranty authority, or to discharge obligations of the Corporation purchased by the Secretary of the Treasury pursuant to this subsection. However, no appropriations shall be made to augment the Insurance Reserve until the amount of funds in the Insurance Reserve is less than $25,000,000. Any appropriations to augment the Insurance Reserve shall then only be made either pursuant to specific authorization enacted after the date of enactment of the Overseas Private Investment Corporation Amendments Act of 1974, or to satisfy the full faith and credit provision of section 237(c). In order to discharge liabilities under investment insurance or reinsurance, the Corporation is authorized to issue from time to time for purchase by the Secretary of the Treasury its notes, debentures, bonds, or other obligations; but the aggregate amount of such obligations outstanding at any one time shall not exceed $100,000,000. Any such obligation shall be repaid to the Treasury within one year after the date of issue of such obligation. Any such obligation shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current av

237 Sec. 2(3XB) of the OPIC Amendments Act of 1974 (Public Law 93-390) substituted "insurance or reinsurance issued under section 234" in lieu of "insurance issued under section 234(a)". The reference to sec. 234A was added by sec. 9(b) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1672).

238 Subsec. (f) was amended by sec. 2(3XC) of the OPIC Amendments Act of 1974 (Public Law 93-390). It formerly read as follows: "(f) There is hereby authorized to be appropriated to the Corporation, to remain available until expended, such amounts as may be necessary from time to time to replenish or increase the insurance and guaranty fund or to discharge the liabilities under insurance and guaranties issued by the Corporation or issued under predecessor guaranty authority.".

Sec. 104(b) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3652) had added subsec. (g), which authorized the Corporation to draw form its noncredit account revolving fund $8,128,000 for fiscal year 1993 and $11,000,000 for fiscal year 1994 for administrative expenses. Subsec. (g) was struck out by sec. 104 of Public Law 103-392 (108 Stat. 4098).

erage market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of any obligation authorized by this subsection. The Secretary of the Treasury shall purchase any obligation of the Corporation issued under this subsection, and for such purchase he may use as a public debt transaction the proceeds of the sale of any securities issued under the Second Liberty Bond Act after the date of enactment of the Overseas Private Investment Corporation Amendments Act of 1974. The purpose for which securities may be issued under such Bond Act shall include any such purchase.

Sec. 236.239 Income and Revenues.-In order to carry out the purposes of the Corporation, all revenues and income transferred to or earned by the Corporation, from whatever source derived, shall be held by the Corporation and shall be available to carry out its purposes, including without limitation

(a) payment of all expenses of the Corporation, including investment promotion expenses;

(b) transfers and additions to the insurance or guaranty reserves, the Direct Investment Fund established pursuant to section 235, and such other funds or reserves as the Corporation may establish, at such time and in such amounts as the Board may determine; and

(c) payment of dividends, on capital stock, which shall consist of and be paid from net earnings of the Corporation after payments, transfers, and additions under subsections (a) and (b) hereof.

Sec. 237.240 General Provisions Relating to Insurance Guaranty, and Financing Program. (a) Insurance guaranties, and reinsurance 241 issued under this title shall cover investment made in connection with projects in any less developed friendly country or area with the government to which the President of the United States has agreed to institute a program for insurance, guaranties, or reinsurance.241

(b) The Corporation shall determine that suitable arrangements exist for protecting the interest of the Corporation in connection. with any insurance, guaranty or reinsurance 241 issued under this title, including arrangements concerning ownership, use, and disposition of the currency, credits, assets, or investments on account of which payment under such insurance, guaranty, or reinsurance 241 is to be made, and right, title, claim, or cause of action existing in connection therewith.

(c) All guaranties issued prior to July 1, 1956, all guaranties issued under sections 202(b) and 413(b) of the Mutual Security Act of 1954, as amended, all guaranties heretofore issued pursuant to prior guaranty authorities repealed by the Foreign Assistance Act of 1969, and all insurance, reinsurance,241 and guaranties issued pursuant to this title shall constitute obligations, in accordance

239 22 U.S.C. 2196. Sec. 236 was added by sec. 105 of the FA Act of 1969. 240 22 U.S.C. 2197. Sec. 237 was added by Sec. 105 of the FA Act of 1969.

Sec. 110(c) of the OPIC Amendments Act of 1988, S. 2757, enacted into law by reference in the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268) struck "and Guaranty" and inserted "Guaranty, and Financing".

241 Sec. 2(4) of the OPIC Amendments Act of 1974 (Public Law 93-390) added the reference to reinsurance.

investor seeking payment under this title, by a person possessing majority ownership and control of the investor at the time of the act, or by any agent of such investor or controlling person, and a court of the United States has entered a final judgment that such act constituted a violation under the Foreign Corrupt Practices Act of 1977.

(2) Not later than 120 days after the date of enactment of this subsection,250 the Corporation shall adopt regulations setting forth appropriate conditions under which any person convicted under the Foreign Corrupt Practices Act of 1977 for an offense related to a project insured or otherwise supported by the Corporation shall be suspended, for a period of not more than five years, from eligibility to receive any insurance, reinsurance, guaranty, loan, or other financial support authorized by this title.

(m) 251 (1) Before finally providing insurance, reinsurance, guarantees, or financing under this title for any environmentally sensitive investment in connection with a project in a country, the Corporation shall notify appropriate government officials of that country of

(A) all guidelines and other standards adopted by the International Bank for Reconstruction and Development and any other international organization relating to the public health or safety or the environment which are applicable to the project; and

(B) to the maximum extent practicable, any restriction under any law of the United States relating to public health or safety or the environment that would apply to the project if the project were undertaken in the United States.

The notification under the preceding sentence shall include a summary of the guidelines, standards, and restrictions referred to in subparagraphs (A) and (B), and may include any environmental impact statement, assessment, review, or study prepared with respect to the investment pursuant to section 239(g).

(2) Before finally providing insurance, reinsurance, guarantees, or financing for any investment subject to paragraph (1), the Corporation shall take into account any comments it receives on the project involved.

(3) On or before September 30, 1986, the Corporation shall notify appropriate government officials of a country of the guidelines, standards, and legal restrictions described in paragraph (1) that apply to any project in that country

(A) which the Corporation identifies as potentially posing major hazards to public health and safety or the environment; and

(B) for which the Corporation provided insurance, reinsurance, guarantees, or financing under this title before the date of enactment of this subsection and which is in the Corporation's portfolio on that date.

261 Subsec. (m) was added by sec. 4(b) of the OPIC Amendments Act of 1985 (Public Law 99