Page images
PDF
EPUB

insured banks are divided into five categories for the purpose of classifying their general character or type of business,' viz: commercial banks, banks and trust companies, savings banks (including mutual and stock), industrial banks, and cash depositories.

§ 333.2 Change in general character of business. No State nonmember insured bank (except a District bank) or branch thereof shall hereafter cause or permit any change to be made in the general character or type of business exercised by it after the effective date of

'A bank's business may include two or more of the general classifications.

this part without the prior written consent of the Corporation.

INTERPRETATIONS

§ 333.101 Prior consent not required. The extension by any State nonmember insured bank of its business to include personal, character or instaliment loans, or the extension by an industrial bank of its business to include the business of a commercial bank, is not a change in the general character or type of business requiring the prior written consent of the Corporation.

[15 F. R. 8644, Dec. 6, 1950, as amended at 19 F. R. 1667, Mar. 27, 1954]

[blocks in formation]

Sec.

401.1

Part 401-Procedures

Types of credit assistance available. 401.2 How to apply. 401.3 Principals, agents, certifications and covenants.

AUTHORITY: §§ 401.1 to 401.3 issued under sec. 2, 59 Stat. 526, as amended; 12 U. S. C. 635.

SOURCE: §§ 401.1 to 401.3 appear at 22 F. R. 6863, Aug. 24, 1957.

§ 401.1 Types of credit assistance available—(a) Direct financing. The Bank engages in direct financing of exports when it purchases from an exporter without recourse upon him a portion of the notes or acceptances of a foreign importer received by the exporter in connection with an export sale. In a like manner, direct financing of exports is provided by the Bank when it makes loans to a United States or foreign private entity or foreign government for purchases of United States materials, equipment or services destined for a project abroad. Similarly, the Bank directly finances imports when it purchases the obligation of a United States importer in connection with an import transaction.

(b) Guaranties. In lieu of direct purchase of obligations by the Bank, the financing of either exports or imports is frequently provided through guaranties extended directly to exporters or importers, or through purchase of the obligations from them by a commercial

bank or other financial institution in the United States under an agency or guaranty agreement with the Export-Import Bank. Such guaranties may cover all of the risks of repayment or, if so requested, may be limited to coverage only of dollar transfer or other specified risks.

(c) Advance commitments. United States exporters who expect to bid on specific foreign business may consult the Export-Import Bank prior to submission of bids in order to obtain an understanding of the conditions under which the Bank might consider the granting of a credit or a guaranty. In instances in which sufficient information is supplied with respect to the prospective buyer and the proposed transaction, the Bank will issue a commitment to enable the exporter to make a bid or negotiate a contract of sale.

§ 401.2 How to apply-(a) Method of application. Applications to ExportImport Bank should be in writing but no application form is prescribed. The applicant should present all the information on which he relies to justify financial assistance by the Bank. Additional information, if required, will be requested by the Bank after review of the initial submission. Alternatively, preliminary inquiry may be made in a letter to the Bank outlining the proposed transaction. On the basis of the information contained in such a letter, the Bank should be able to indicate whether it would be advisable for the applicant to take the

time and incur the expense involved in preparation of a complete application.

[ocr errors]

(b) Classes of applicants. Applicants may be divided into three general types as follows: (1) United States exporters or importers, (2) private firms, whether domiciled in the United States or abroad, that desire to purchase United States materials, equipment, or services for utilization in a project abroad, and (3) foreign governments or their agencies that wish to purchase United States materials, equipment, or services for utilization in a project abroad.

§ 401.3 Principals, agents, certifications and covenants-(a) Principals. Applications for credits must be signed by the principals involved. In the case of a corporation or similar entity, a duly authorized officer of the entity shall sign on its behalf. In the case of a government, a duly accredited representative of the government shall sign on its behalf. In the case of a United States exporter seeking financing of the sale of goods to a foreign buyer on credit terms, the exporter shall constitute the principal.

(b) Agents. The Bank prefers to deal with principals, especially in negotiations leading up to the granting of a loan, but the applicant has the right to engage attorneys, engineers, or other qualified persons to advise and aid in preparing material required by the Bank in connection with a loan application or with the operation of a loan which has been granted.

(c) Certification. (1) Every person, including any foreign government or an agency thereof, individual, partnership, corporation, or association, in whose favor the Bank authorizes the extension of financial assistance within the purview of the Export-Import Bank Act of 1945, as amended, shall, as a condition precedent to the utilization of such financial assistance, represent and certify to the Bank in such form and at such time or times as may be prescribed by the Bank that:

(i) Such person has not paid or agreed to pay to any person including any individual, partnership, corporation, or association, except its regular full-time individual employees or staff members to the extent of their regular remuneration, any commission, fee, or compensation in connection with obtaining such financial assistance, except such amounts as are included in the certificate, such

certificate to set forth the name and address of each such person or persons, together with the description of the services rendered, accompanied by the verification of the recipient or beneficiary of an agreement to pay named in the certificate required hereunder.

(ii) No employee, agent, attorney, or consultant, of such person who performed services in connection with obtaining such financial assistance was a Director, officer, or employee of the Bank during the period of one year immediately preceding the authorization of the extension of such financial assistance.

(2) Upon a determination by the Board of Directors that any commission, fee, or other compensation paid or agreed to be paid in connection with the obtaining of such financial assistance and disclosed in the certification required under this subsection is unreasonable, the person in whose favor the extension of financial assistance has been authorized shall as a condition precedent to the utilization of such assistance, effect an adjustment satisfactory to the Bank in such commission, fee, or other compensation.

(3) Every person, including any foreign government or agency thereof, individual, partnership, corporation, or association, in whose favor the Bank authorizes the extension of financial assistance within the purview of the Export-Import Bank Act of 1945, as amended, shall, as a condition precedent to each advance:

(i) If such person is the supplier of the equipment, materials, or services with respect to which the advance has been requested, certify that, other than as disclosed to the Bank, no payments, allowances, or charges in connection with the sale of, or obtaining the contract to sell, such equipment, materials, or services have been paid or granted or agreed to be paid or granted by such person to any other person, except such person's regular full-time individual employees or staff members to the extent of their regular remuneration.

(ii) If such person is not the supplier of the equipment, materials, or services with respect to which the advance has been requested,

(a) Certify that such person has paid or agreed to pay for the equipment, materials, or services with respect to which the advance has been requested, no more

and no less than the amounts which such person has certified to the Bank as the purchase price and all payments, allowances, and charges connected therewith.

(b) Furnish the Bank with a certificate of the supplier of the equipment, materials, or services, with respect to which the advance has been requested, addressed to the Bank and setting forth that such supplier has not, other than as disclosed to the Bank, paid or granted or agreed to pay or grant to such person or any other person, except such supplier's regular full-time individual employees to the extent of their regular remuneration, any payments, allowances or charges in connection with the sale of, or obtaining the contract to sell, such equipment, materials, or services.

(d) Covenants. (1) Every person, including any foreign government or an agency thereof, individual, partnership, corporation, or association, in whose favor the Bank authorizes the extension of financial assistance within the purview of the Export-Import Bank Act of 1945, as amended, shall, as a condition precedent to the utilization of such financial assistance, covenant and agree with the Bank in such form as may be prescribed by the Bank that:

(i) Such person will not during the period of two years following the authorization of the extension of such financial assistance employ or enter into any understanding to employ any person who is a Director, officer, or employee of the Bank or was a Director, officer, or employee of the Bank during the period of one year prior to the authorization of the extension of such financial assistance, unless such employment is approved in writing by the Bank after full disclosure to the Bank of all facts in connection therewith which the Board of Directors shall deem to be relevant.

(ii) Such person has not paid or agreed to pay and will not pay or agree to pay to any person including any individual partnership, corporation, or association except its regular full-time individual employees or staff members to the extent of their regular remuneration, any fee, commission, or compensation in connection with obtaining such financial assistance, except for reasonable compensation satisfactory to the Bank for bona fide professional, technical, or

31012-59- -28

other comparable services incident to presenting the merits of the application and operation of the credit and such person will certify to the Bank any such amounts, such certificates to set forth the name and address of each such person together with a description of the services rendered, accompanied by the verification of the recipient or beneficiary of an agreement to pay named in the certificate required hereunder.

(2) Upon a determination by the Board of Directors that any commission, fee, or other compensation paid or agreed to be paid in connection with the obtaining of such financial assistance and disclosed in the certification or covenants required under this sub-section is unreasonable, the person in whose favor the extension of financial assistance has been authorized shall, as a condition precedent to the utilization of such assistance, effect an adjustment satisfactory to the Bank in such commission, fee, or other compensation.

(e) Remedies and penalties. (1) The certificates, representations, and covenants provided for in this part are deemed to be material to and an inducement for the extension by the Bank of such financial assistance and falsifications in any such representation or certificate or the breach of any such covenant shall entitle the Bank to cancel any commitment for the extension of financial assistance to such person or such additional remedies as may be provided in the credit agreement.

(2) The remedies of the Bank provided for in this section and in the contract shall be in addition to any liability or penalty provided by law including those provided for in 18 U. S. C. 1001.1

(f) List of loans, borrowers, and representatives before the Bank. The Bank will maintain for public inspection dur

1 Section 18 U. S. C. 1001 provides: "Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both." (June 25, 1948, ch. 645, sec. 1, 62 Stat. 749.)

Page 409

« PreviousContinue »