Pub. L. 90-554, pt. I, ch. 2, tit. iii, sec. 103

Sec. 103. (a) Section 221(b) of title III of chapter 2 of part I of the Foreign Assistance Act of 1961, as amended, which relates to general authority for investment guaranties, is amended as follows: (1) In the proviso of paragraph (1), strike out “$8,000,000,000” and substitute “$8,500,000,000”. (2) Paragraph (2) is amended as follows: (A) In the third proviso, strike out “$475,000,000” and “$315,000,000” and substitute “$550,000,000” and “$390,000,000”, respectively. 82 Stat. 961 (B) In the third proviso, strike out “$1,000,000” and substitute “$1,250,000”. (C) In the last proviso, strike out “1970” and substitute “1971”. (b) At the end of section 221, add a new subsection as follows: “(e) (1) No guaranty of a loan or equity investment of an eligible United States investor in a foreign bank, finance company, or other credit institution (hereinafter the ‘original investment’) shall cover any loss of a loan or equity in vestment of such bank, finance company, or credit institution; and in no event shall payment tie made under any such guaranty except, for loss of the original investment, and, where provided for by such guaranty, earnings or profits actually accrued thereon. “(2) In the administration of this subsection, the eligible United States investor may lie deemed to have sustained a loss of the original investment only if the foreign bank, finance company, or credit institution in which the original investment was made becomes or is likely to become insolvent due to the occurrence of an event against which protection is provided by the guaranty.”