title iii—investment guaranties

title iii—investment guaranties 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) Section 221(b), which relates to general authority for investment guaranties, is amended as follows: (1) In paragraph (1), amend the proviso by striking out “$7,000,000,000” and substituting “$8,000,000,000”. (2) Paragraph (2) is amended to read as follows: “(2) where the President determines such action to be important in the furtherance of the purposes of this title, assuring against loss, due to such risks and upon such terms and conditions as the President may determine, of— “(A) any loan investment for housing projects with appropriate participation by the private investor in the loan risk. “(B) any loan investment for credit unions where the loan investment is made by a credit union, or an association of credit unions, which is an eligible United States investor, or “(C) not to exceed 75 per centum of any other investment: Provided, That guaranties issued under this paragraph (2) shall emphasize economic development projects furthering social progress and the development of small independent business enterprises,: Provided further, That no payment may be made under this paragraph (2) for any loss of equity investment arising out of fraud or misconduct for which the investor is responsible, or for any loss of loan investment arising out of fraud or misrepresentation for which the investor is responsible: Provided further, That the total face amount of the guaranties issued under this paragraph (2) outstanding at any one time shall not exceed $475,000,000, guaranties issued under this paragraph (2) for other81 Stat. 451 than housing projects similar to those insured by the Department of Housing and Urban Development, shall not exceed $315,000,000, and guaranties issued under this paragraph (2) for credit unions shall not exceed $1,000,000: Provided further, That this authority shall continue until June 30, 1970.” (b) Section 222, which relates to general provisions for investment guaranties, is amended as follows: (1) In subsection (b), after the words “shall be available for meeting” insert the words “necessary administrative and operating expenses of carrying out the provisions of sections 221, 224, and 231 (including, but not limited to, expenses pertaining to personnel, supplies, and printing) subject to such limitations as may be imposed m annual appropriation Acts, for meeting”. (2) In subsection (d), after the words “in section 222(b)” insert the following: “(excluding fees required for purposes other than the discharge of liabilities under guaranties) ”. (3) At the end of subsection (h) add the following new sentence: “The allowable rate of interest under this subsection shall be prescribed by the Administrator as of the date the project covered by the investment is officially authorized by him and, prior to the execution of the contract, he may amend such rate at his discretion, consistent with the provisions of this subsection.” (c) Section 223, which relates to definitions, is amended as follows: (1) In paragraph (a), after the words “services pursuant to a” insert the words “lease or”. (2) Paragraph (c) is amended by striking out the period at the end thereof and inserting a colon and the following: “Provided further, That in the case of any loan investment a final determination of eligibility may be made at the time the guaranty is issued: in all other cases, the investor must be eligible at the time a claim arises as well as at the time the guaranty is issued.” (d) Section 224 (c), which relates to housing projects in Latin American countries, is amended (1) by striking out “$450,000,000” and “$300,000,000” and substituting “$500,000,000” and “$325,000,000”, respectively, (2) by striking out “misconduct” and substituting “misrepresentation”, and (3) by striking out “1969” and substituting “1971”.