(3) 208 ensures that the project is consistent with the provisions of section 117208 (as so redesignated by the Special Foreign Assistance Act of 1986), section 118, and section 119 of this Act relating to the environment and natural resources of, and tropical forests and endangered species 208 in, developing countries, and consistent with the intent of regulations issued pursuant to sections 118 and 119 of this Act.

In carrying out its purpose, the Corporation, utilizing broad criteria, shall undertake

(a) 209 to conduct financing, insurance, and reinsurance operations on a self-sustaining basis, taking into account in its financing operations the economic and financial soundness of projects;

(b) to utilize private credit and investment institutions and the Corporation's guaranty authority as the principal means of mobilizing capital investment funds;

(c) to broaden private participation and revolve its funds through selling its direct investments to private investors whenever it can appropriately do so on satisfactory terms;

(d) to conduct its insurance operations with due regard to principles of risk management including 210 efforts to share its insurance risks and reinsurance 211 risks;

(e) 212 to the maximum degree possible consistent with its purposes

(1) to give preferential consideration in its investment insurance, reinsurance, and guaranty activities to investment projects sponsored by or involving United States small business; and

(2) to increase the proportion of projects sponsored by or significantly involving United States small business to at least 30 percent of all projects insured, reinsured, or guaranteed by the Corporation;

(f) 213 to consider in the conduct of its operations the extent to which less developed country governments are receptive to

to $680 and $2,950 in 1979 U.S. dollars, respectively, by sec. 2(1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021).

Sec. 105 of the Jobs Through Trade Expansion Act of 1994 (Public Law 103-392; 108 Stat. 4099) inserted", Ireland, and Northern Ireland" in the parentheses.

Sec. 4(a)(1)(C) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1669) added para. (3). 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), made a correction to include section 117. S. 2757 also struck out "biological diversity" and inserted in lieu thereof "tropical forests and endangered species".

Sec. 2(1)(B) of the OPIC Amendments Act of 1974 (Public Law 93-390; 83 Stat. 809) amended and restated subsec. (a). It formerly read as follows: "(a) to conduct financial soundness of projects and the availability of financing from other sources on appropriate terms;". 219 Sec. 201XC) of the OPIC Amendments Act of 1974 (Public Law 93-390) struck out "when appropriate," after "including".

Sec. 201XC) of the OPIČ Amendments Act of 1974 (Public Law 93-390) inserted "and reinsurance".

Subsec. (e), as amended by Public Law 93-390, was amended and restated by sec. 2(2) of Public Law 95-268 (92 Stat. 213). It formerly read as follows:

e) to give preferential consideration in its investment insurance, financing, and reinsurance activities (to the maximum extent practicable consistent with the Corporation's purposes) to investment projects involving businesses of not more than $2,500,000 net worth or with not more than $7,500,000 in total assets;".

Sec. 2(5) of Public Law 95-268 (92 Stat. 214) struck subsecs. (f) and (1) and redesignated subsecs. (g) through (n) as (f) through (1), respectively. Subsecs. (f) and (1) formerly read as fol

OWN

Continued

private enterprise, domestic and foreign, and their willingness and ability to maintain conditions which enable private enterprise to make its full contribution to the development process; (g) 213 to foster private initiative and competition and discourage monopolistic practices;

(h) 213 to further to the greatest degree possible, in a manner consistent with its goals, the balance-of-payments and employment 214 objectives of the United States;

(i) 213 to conduct its activities in consonance with the activities of the agency primarily responsible for administering part I and the international trade, investment, and financial policies of the United States Government, and to seek to support those developmental projects having positive trade benefits for the United States; 215

(j)213 to advise and assist, within its field of competence, interested agencies of the United States and other organizations, both public and private, national and international, with respect to projects and programs relating to the development of private enterprise in less developed countries and areas;

(k) 216 (1) to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause such investor (or the sponsor of an investment project in which such investor is involved) significantly to reduce the number of his employees in the United States because he is replacing his United States production with production from such investment which involves substantially the same product for substantially the same market as his United States production; and (2) to monitor conformance with the representations of the investor on which the Corporation relied in making the determination required by clause (1);

(1)217 to decline to issue any contract of insurance or reinsurance, or any guaranty, or to enter into any agreement to provide financing for an eligible investor's proposed investment if the Corporation determines that such investment is likely to cause a significant reduction in the number of employees in the United States;

"(f) to encourage and support only those private investments in less developed friendly countries and areas which are sensitive and responsive to the special needs and requirements of their economies, and which contribute to the social and economic development of their people;" "(1) to the maximum extent practicable, to give preferential consideration in the Corporation's investment insurance, financing, and reinsurance activities to investment projects in the less developed friendly countries which have per capita incomes of $450 or less in 1973 United States dollars; and".

214 Sec. 2(1)(E) of the OPIC Amendments Act of 1974 (Public Law 93-390) inserted “and employment".

215 Sec. 2(2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021) inserted ", and to seek to support those developmental projects having positive trade benefits for the United States".

216 This subsection was originally added as subsec. (m) by sec. 2(1)(H) of the OPIC Amendments Act of 1974 (Public Law 93-390). It was redesignated as subsec. (k) by sec. 2(5) of Public Law 95-268; 92 Stat. 214.

217 This subsection was added as subsec. (n) by sec. 2(4) of Public Law 95-268 (92 Stat. 213), and redesignated as subsec. (1) by sec. 2(5) of the same Act.

(m) 218 to refuse to insure, reinsure, or finance any investment subject to performance requirements which would reduce substantially the positive trade benefits likely to accrue to the United States from the investment; and

(n)219 to refuse to insure, reinsure, guarantee, or finance any investment in connection with a project which the Corporation determines will pose an unreasonable or major environmental. health, or safety hazard, or will result in the significant degradation of national parks or similar protected areas. Sec. 231A.220 Additional Requirements.-(a) WORKER RIGHTS.

(1) LIMITATION ON OPIC ACTIVITIES.-The Corporation may insure, reinsure, guarantee, or finance a project only if the country in which the project is to be undertaken is taking steps to adopt and implement laws that extend internationally recognized worker rights, as defined in section 507(4) of the Trade Act of 1974,221 to workers in that country (including any designated zone in that country). The Corporation shall also include the following language, in substantially the following form, in all contracts which the Corporation enters into with eligible investors to provide financial support under this title: 222

"The investor agrees not to take actions to prevent employees of the foreign enterprise from lawfully exercising their right of association and their right to organize and bargain collectively. The investor further agrees to observe applicable laws relating to a minimum age for employment of children, acceptable conditions of work with respect to minimum wages, hours of work, and occupational health and safety, and not to use forced labor. The investor is not responsible under this paragraph for the actions of a foreign government."

(2) USE OF ANNUAL REPORTS ON WORKERS RIGHTS.—The Corporation shall, in making its determinations under paragraph (1), use the reports submitted to the Congress pursuant to section 504 of the Trade Act of 1974.223 The restriction set forth in paragraph (1) shall not apply until the first such report is submitted to the Congress.

(3) WAIVER.-Paragraph (1) shall not prohibit the Corporation from providing any insurance, reinsurance, guaranty, or financing with respect to a country if the President determines that such activities by the Corporation would be in the national economic interests of the United States. Any such deter

218 Sec. 2(3XC) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021) added subsec. (m).

2.9 Sec. 4(a)(4) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1669) added subsec. (n).

222 U.S.C. 2191a. Sec. 5(a) of the OPIC Amendments Act of 1985 (Public Law 99-204; 99 Stat. 1670) added sec. 231A. Sec. 5(b) of the Act provides that sec. 231A(a) “shall not apply to projects insured, reinsured, guaranteed, or financed before the date of the enactment of this Act.".

221 Sec. 1954(b)(3)(A) of Public Law 104-188 (110 Stat. 1928) struck out “502(a)(4) of the Trade Act of 1974 (19 U.S.C. 2462(a)(4))” and inserted in lieu thereof “507(4) of the Trade Act of 1974". 222 Sec. 102(a) of the Jobs Through Exports Act of 1992 (Public Law 102-549; 106 Stat. 3651) added the last sentence, including the quoted language required in contracts.

223 Sec. 1954(b)(3)(B) of Public Law 104-188 (110 Stat. 1928) struck out “505(c) of the Trade Act of 1974 (19 U.S.C. 2465(c))" and inserted in lieu thereof “504 of the Trade Act of 1974".

mination shall be reported in writing to the Congress, together with the reasons for the determination.224

(4) 225 In making a determination under this section for the People's Republic of China, the Corporation shall discuss fully and completely the justification for making such determination with respect to each item set forth in subparagraphs (A) through (E) of section 507(4) 226 of the Trade Act of 1974.

(b) 227 ENVIRONMENTAL IMPACT.-The Board of Directors of the Corporation shall not vote in favor of any action proposed to be taken by the Corporation that is likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented, unless for at least 60 days before the date of the vote

(1) an environmental impact assessment or initial environmental audit, analyzing the environmental impacts of the proposed action and of alternatives to the proposed action has been completed by the project applicant and made available to the Board of Directors; and

(2) such assessment or audit has been made available tot he public of the United States, locally affected groups in the host country, and host country nongovernmental organizations. (c) 227 PUBLIC HEARINGS.-(1) 228 The Board shall hold at least one public hearing each year in order to afford an opportunity for any person to present views as to whether the Corporation is carrying out its activities in accordance with section 231 and this section or whether any investment in a particular country should have been or should be extended insurance, reinsurance, guarantees, or financing under this title.

(2) 228 In conjunction with each meeting of its Board of Directors, the Corporation shall hold a public hearing in order to afford an opportunity for any person to present views regarding the activities of the Corporation. Such views shall be made part of the record.

Sec. 232.229 Capital of the Corporation.-The President is authorized to pay in as capital of the Corporation, out of dollar receipts made available through the appropriation process from loans made pursuant to this part and from loans made under the Mutual Security Act of 1954, as amended, for the fiscal year 1970 not to exceed $20,000,000 and for the fiscal year 1971 not to exceed $20,000,000. Upon the payment of such capital by the President, the Corporation shall issue an equivalent amount of capital stock to the Secretary of the Treasury.

224 The President determined "that the waiver of section 231A(a)(1) with respect to Nicaragua, permitting the Overseas Private Investment Corporation to insure, reinsure, guaranty, and finance projects in Nicaragua, is in the national economic interests of the United States." (Presidential Determination 90-24 of June 21, 1990; 55 F.R. 27631).

225 Sec. 2203(c) of Public Law 100-418 (102 Stat. 1328) para. (4).

Sec. 902(a)(1) of the Foreign Relations Authorization Act, Fiscal Years 1990 and 1991 (Public Law 101-246; 104 Stat. 83) continued a suspension of OPIC's issuing new insurance, reinsurance, guarantees, financing, or other financial support to the People's Republic of China until the President reported to the Congress under subsec. (b) of that sec. that China had made certain political reforms, or that such assistance was in the national interest of the United States. For text of sec. 902, see Legislation on Foreign Relations Through 2004, vol. II, sec. D.

226 Sec. 1954(b)(3)(C) of Public Law 104-188 (110 Stat. 1928) struck out "502(a)(4)" and inserted in lieu thereof "507(4)”.

227 Sec. 3(a) of the Export Enhancement Act of 1999 (Public Law 106-158; 113 Stat. 1745) redesignated subsec. (b) as subsec. (c), and added a new subsec. (b).

228 Sec. 3(a)(3) of the Export Enhancement Act of 1999 (Public Law 106-158; 113 Stat. 1745) inserted "(1)" before "The Board" and added a new para. (2).

229 22 U.S.C. 2192. Sec. 105 of the FA Act of 1969 (Public Law 91-175) added sec. 232.

Sec. 233.230 Organization and Management.-(a) STRUCTURE OF THE CORPORATION.-The Corporation shall have a Board of Directors, a President, an Executive Vice President, and such other officers and staff as the Board of Directors may determine.

(b) BOARD OF DIRECTORS.-All powers of the Corporation shall vest in and be exercised by or under the authority of its Board of Directors ("the Board") which shall consist of fifteen Directors,231 including the Chairman, with eight Directors 232 constituting a quorum for the transaction of business.233 Eight Directors 232, 234 shall be appointed by the President of the United States, by and with the advice and consent of the Senate, and shall not be officials or employees of the Government of the United States. At least two of the eight Directors 235 appointed under the preceding sentence shall be experienced in small business, one in organized labor, and one in cooperatives. Each such Director shall be appointed for a term of no more than three years. The terms of no more than three such Directors 236 shall expire in any one year. Such Directors shall serve until their successors are appointed and qualified and may be reappointed.

The other Directors shall be principal officers 237 of the Government of the United States whose duties relate to the programs of the Corporation,238 including the President of the Corporation, the Administrator of the Agency for International Development, the United States Trade Representative, and 239 one such officer 240 of the Department of Labor,241 designated by and serving at the pleasure of the President of the United States. The United States Trade Representative may designate a Deputy United States Trade

2022 U.S.C. 2193. Sec. 105 of the FA Act of 1969 (Public Law 91-175) added sec. 233.

1 Sec. 3(a)(1) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021) increased the number of Directors 11 to 15, effective Oct. 1, 1981.

132Sec. 3(a) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021) increased the number of Directors from six to eight, effective Oct. 1, 1981.

233 Sec. 4(1) of the Export Enhancement Act of 1999 (Public Law 106-158; 113 Stat. 1746) struck out two sentences at this point that designated the Administrator of AID as Chairman of the Board, ex officio, and the U.S. Trade Representative or Deputy U.S. Trade Representative as Vice Chairman of the Board, ex officio. The second sentence, establishing the USTR role, had been added by sec. 3(a)(2) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1021), effective Oct. 1, 1981.

234 Sec. 4(2) of the Export Enhancement Act of 1999 (Public Law 106-158; 113 Stat. 1746) struck out "(other than the President of the Corporation, appointed pursuant to subsection (c) who shall serve as a Director ex officio)" at this point.

235 Sec. 3(a) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022) increased the number of Directors from one of the six to two of the eight, effective Oct. 1, 1981.

Sec. 3(a)(3) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022) increased the number of Directors from two to three, effective Oct. 1, 1981.

*Sec. 3(e)(1) of the Overseas Private Investment Corporation Amendments Act of 2003 (Pubhe Law 108-158; 117 Stat. 1950) struck out "officials" and inserted in lieu thereof "principal officers".

Sec. 3(ex2) of the Overseas Private Investment Corporation Amendments Act of 2003 (Pubhe Law 108-158; 117 Stat. 1950) inserted "whose duties relate to the programs of the Corporation".

Sec. 4(3)(A) of the Export Enhancement Act of 1999 (Public Law 106-158; 113 Stat. 1746) inserted "the President of the Corporation, the Administrator of the Agency for International Development, the United States Trade Representative, and" after "including".

**Sec. 3(ex3) of the Overseas Private Investment Corporation Amendments Act of 2003 (Pubhe Law 108-158; 117 Stat. 1950) struck out “an official" and inserted in lieu thereof "one such officer".

Sec. 3(b) of the OPIC Amendments Act of 1981 (Public Law 97-65; 95 Stat. 1022) added the reference to an official of the Department of Labor, effective October 1, 1981.