(a) Establishment
The President is authorized to establish a United States Microfinance Loan Facility (in this section referred to as the "Facility") to pool and manage the risk from natural disasters, war or civil conflict, national financial crisis, or short-term financial movements that threaten the long-term development of United States-supported financial intermediaries.
(b) Disbursements
(1) In general
The Administrator shall make disbursements from the Facility to United States-supported financial intermediaries to prevent the bankruptcy of such institutions caused by—
(A) natural disasters;
(B) national wars or civil conflict; or
(C) national financial crisis or other short-term financial movements that threaten the long-term development of United States-supported financial intermediaries.
(2) Form of assistance
Assistance under this section shall be in the form of loans or loan guarantees for financial intermediaries that demonstrate the capacity to resume self-sustained operations within a reasonable time period.
(3) Congressional notification procedures
During each of the fiscal years 2005 through 2009, funds may not be made available from the Facility until 15 days after notification of the proposed availability of the funds has been provided to the congressional committees specified in section 2394–1 of this title in accordance with the procedures applicable to reprogramming notifications under that section.
(c) General provisions
(1) Policy provisions
In providing the credit assistance authorized by this section, the Administrator should apply, as appropriate, the policy provisions in subchapter I of this chapter that are applicable to development assistance activities.
(2) Default and procurement provisions
(A) Default provision
The provisions of section 2370(q) of this title, or any comparable provision of law, shall not be construed to prohibit assistance to a country in the event that a private sector recipient of assistance furnished under this section is in default in its payment to the United States for the period specified in such section.
(B) Procurement provision
Assistance may be provided under this section without regard to section 2354(a) of this title.
(3) Terms and conditions of credit assistance
(A) In general
Credit assistance provided under this section shall be offered on such terms and conditions, including fees charged, as the Administrator may determine.
(B) Limitation on principal amount of financing
The principal amount of loans made or guaranteed under this section in any fiscal year, with respect to any single event, may not exceed $30,000,000.
(C) Exception
No payment may be made under any guarantee issued under this section for any loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.
(4) Full faith and credit
All guarantees issued under this section shall constitute obligations, in accordance with the terms of such guarantees, of the United States of America, and the full faith and credit of the United States of America is hereby pledged for the full payment and performance of such obligations to the extent of the guarantee.
(d) Funding
(1) Allocation of funds
Of the amounts made available to carry out subchapter I of this chapter for each of the fiscal years 2005 through 2009, such sums as may be necessary may be made available for—
(A) the subsidy cost, as defined in section 661a(5) of title 2, to carry out this section; and
(B) the administrative costs to carry out this section.
(2) Relation to other funding
Amounts made available under paragraph (1) are in addition to amounts available under any other provision of law to carry out this section.
References to Subchapter I Deemed To Include Certain Parts of Subchapter II
References to subchapter I of this chapter are deemed to include parts IV (§2346 et seq.), VI (§2348 et seq.), and VIII (§2349aa et seq.) of subchapter II of this chapter, and references to subchapter II are deemed to exclude such parts. See section 202(b) of Pub. L. 92–226, set out as a note under section 2346 of this title, and sections 2348c and 2349aa–5 of this title.
Codification
Section was formerly classified to section 2152b of this title.
Prior Provisions
A prior section 2213, Pub. L. 87–195, pt. I, §253, as added Pub. L. 87–565, pt. I, §106, Aug. 1, 1962, 76 Stat. 258; amended Pub. L. 88–205, pt. I, §106(c), Dec. 16, 1963, 77 Stat. 383, related to availability of receipts from loans for Alliance for Progress, prior to repeal by Pub. L. 95–424, title I, §102(g)(1)(A), title VI, §605, Oct. 6, 1978, 92 Stat. 942, 961, effective Oct. 1, 1978.
Amendments
2019—Subsec. (a). Pub. L. 115–428, §4(g)(1), substituted "President" for "Administrator" and "United States-supported financial intermediaries" for "United States-supported microfinance institutions".
Subsec. (b)(1). Pub. L. 115–428, §4(g)(2)(A), substituted "United States-supported financial intermediaries" for "United States-supported microfinance institutions" in introductory provisions and in subpar. (C).
Subsec. (b)(2). Pub. L. 115–428, §4(g)(2)(B), substituted "financial intermediaries" for "microfinance institutions".
2004—Subsec. (b)(3). Pub. L. 108—484, §5(c)(2)(A), substituted "2005 through 2009" for "2001 and 2002".
Subsec.(d)(1). Pub. L. 108—484, §5(c)(2)(B), substituted "for each of the fiscal years 2005 through 2009, such sums as may be necessary" for "for the fiscal year 2001, up to $5,000,000".
Subsec. (e). Pub. L. 108–484, §5(c)(2)(C), struck out heading and text of subsec. (e) which defined "Administrator", "appropriate congressional committees", and "United States-supported microfinance institution" for purposes of this section.
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