Pub. L. 89-171, pt. I, ch. 2, tit. III, sec. 104

Sec. 104. Title III of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to investment guaranties, is amended as follows: (a) Amend section 221(b), which relates to general authority, as follows: (1) Amend the introductory clause to read as follows: “(b) The President may issue guaranties to eligible United States investors—”. (2) In paragraph (1), strike out “$2,500,000,000” and substitute “$5,000,000,000”. (3) Amend paragraph (2) as follows: (A) In the first proviso, strike out “, and no such guaranty in the case of a loan shall exceed $25,000,000 and no other such guaranty shall exceed $10,000,000”. (B) In the third proviso, immediately after “$300,000,000” insert the following: “, and guaranties issued under this paragraph (2) for other than housing projects similar to those insured by the Federal Housing Administration, shall not exceed $175,000,000”. (C) In the fourth proviso, strike out “1966” and substitute “1967”. (b) Amend section 221(c), which relates to general authority, as follows: (1) Strike out “actual earnings or profits” and substitute “earnings or profits actually accrued”, (2) Immediately after “guaranty” the third time it appears, insert “of an equity investment”. (c) Amend section 222(b), which relates to general provisions, by inserting after “(exclusive of informational media guaranties),” the words “and to pay the costs of investigating and adjusting (including costs of arbitration) claims under such guaranties,”. (d) Amend section 223, which relates to definitions, as follows: (1) In subsection (a), strike out “and” at the end thereof and in subsection (b) strike out the period and substitute “; and”. (2) Add the following new subsection (c): “(c) the term ‘eligible United States investors’ means United States citizens, or corporations, partnerships, or other associations created under the laws of the United States or any State or79 Stat. 655 territory and substantially beneficially owned by United States citizens, as well as foreign corporations, partnerships, or other associations wholly owned by one or more such United States citizens, corporations, partnerships, or other associations: Provided, That the eligibility of a foreign corporation shall be determined without regard to any shares, in aggregate less than 5 per centum of the total of issued and subscribed share capital, required by law to be held by persons other than the United States owners.” (e) Amend section 224, which relates to housing projects in Latin American countries, to read as follows: “Sec. 224. Housing Projects in Latin American Countries.— (a) It is the sense of Congress that in order to stimulate private home ownership and assist in the development of stable economies in Latin America, the authority conferred by this section should be utilized for the purpose of assisting in the development in the American Republics of self-liquidating pilot housing projects, the development of institutions engaged in Alliance for Progress programs, including cooperatives, free labor unions, savings and loan type institutions, and other private enterprise programs in Latin America engaged directly or indirectly in the financing of home mortgages, the construction of homes for lower income persons and families, the increased mobilization of savings and the improvement of housing conditions in Latin America. “(b) To carry out the purposes of subsection (a), the President is authorized to issue guaranties, on such terms and conditions as he shall determine, to eligible United States investors as defined in section 223 assuring against loss of loan investments made by such investors in— “(1) pilot or demonstration private housing projects in Latin America of types similar to those insured by the Federal Housing Administration and suitable for conditions in Latin America; “(2) credit institutions in Latin America engaged directly or indirectly in the financing of home mortgages, such as savings and loan institutions and other qualified investment enterprises; “(3) housing projects in Latin America for lower income families and persons, which projects shall be constructed in accordance with maximum unit costs established by the President for families and persons whose incomes meet the limitations prescribed by the President; “(4) housing projects in Latin America which will promote the development of institutions important to the success of the Alliance for Progress, such as free labor unions, cooperatives, and other private enterprise programs: or “(5) housing projects in Latin America 25 per centum or more of the aggregate of the mortgage financing for which is made available from sources within Latin America and is not derived from sources outside Latin America, which projects shall, to the maximum extent practicable, have a unit cost of not. more than $6,500. “(c) The total face amount of guaranties issued under this section outstanding at any one time shall not exceed $400,000,000: Provided, That no payment may be made under this section for any loss arising out of fraud or misconduct for which the investor is responsible: Provided further, That this authority shall continue until June 30, 1967.”