Daily Rules, Proposed Rules, and Notices of the Federal Government
1. Addition of a new participant role, Controlling Sponsor, to section 2 of the application. Section 18 of the Export-Import Bank Reauthorization Act of 2012 prohibits Ex-Im Bank's Board of Directors from approving "any transaction in which a person that is a borrower or controlling sponsor, or a person that is owned or controlled by such borrower or controlling sponsor, is subject to sanctions under section 5(a) of the Iran Sanctions Act.". In order for Ex-Im Bank to ensure that the Board of Directors is in compliance with the prohibition, Ex-Im Bank needs to be able to identify the controlling sponsor for a transaction (Ex-Im Bank already asks on the application form who is the borrower for the transaction). Adding this question to the application form will allow Ex-Im Bank to identify the controlling sponsor.
2. Replace Section 6 of the application with new language and questions. Section 10 of the Export-Import Bank Reauthorization Act of 2012 adds a new paragraph (h) to Section 8 of Ex-Im Bank's Charter (12 USC 635g). The new section 8(h) of the Charter requires the Bank to categorize the purpose of each loan and long-term guarantee in the Bank's Annual report. The Reauthorization Act defines the appropriate/acceptable purposes. In order to provide this information to Congress, Ex-Im Bank needs to change the questions it was asking on the application form to align them with the specific purposes identified in the Act. Without this change, Ex-Im Bank will be unable to further break down unavailability of private sector financing into risk constraints vs. maturity limitations.
3. Change the percents in Section 5; sub-section C and sub-section H of the application form to indicate that Ex-Im Bank may have the ability to finance local costs up to 30% of the net contract price. There is an international agreement that was reached between Ex-Im Bank and its foreign competitors that allows Ex-Im Bank (and its competitors) to provide additional local cost financing. This increased availability and flexibility is important to U.S. exporters and helps enhance their competitiveness. Ex-Im Bank would like to make this change to the guidance in the application form to ensure customers are aware of this enhanced support.
The application can be viewed at