This application will provide information needed to determine comliance and creditworthiness for transaction requests submitted to Ex-Im Bank under its long-term guarantee and direct loan program. This form is currently used to make a credit decision on approximately 85 export transactins per year in divisions dealing with aircraft, structured finance, and trade finance.
Export-Import (Ex-Im) Bank is requesting an emergency approval for form EIB 95-10 Application for Long Term Loan or Guarantee, OMB 3048-0013, because the Export Import Bank Reauthorization Act of 2012 has placed additional reporting requirements on the Bank.
The changes to this form are as follows:
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 60 day Federal Register Notice should be published Wednesday, September 12, 2012. Lack of an emergency approval of this form would preclude our ability to continue operation of its long-term programs. Accordingly, Ex-Im Bank requests emergency approval of EIB 95-10 in order to continue operation of these important export programs.
Export-Import (Ex-Im) Bank is requesting an emergency approval for form EIB 95-10 Application for Long Term Loan or Guarantee, OMB 3048-0013, because the Export Import Bank Reauthorization Act of 2012 has placed additional reporting requirements on the Bank.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Form EIB 95-10 Export-Import Bank of the U.S. Long-Term Preliminary Commitment and Final Commitment Application
Supporting Statement EIB 95-10 9-4-12.doc
Export-Import Bank of the U.S. Long-Term Preliminary Commitment and Final Commitment Application