[Code of Federal Regulations]
[Title 7, Volume 10]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR1493.250]

[Page 827-828]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XIV--COMMODITY CREDIT CORPORATION, DEPARTMENT OF AGRICULTURE
 
PART 1493--CCC EXPORT CREDIT GUARANTEE PROGRAMS--Table of Contents
 
       Subpart C--CCC Facility Guarantee Program (FGP) Operations
 
Sec. 1493.250  Final application and issuance of a facility payment guarantee.

    (a) Final application. An exporter who has received a letter of 
preliminary commitment may, within six months of the date of such 
letter, submit a final application to CCC for a facility payment 
guarantee which shall include the following information:
    (1) A cover sheet with the title: ``Application for a Facility 
Payment Guarantee--Final Commitment.''
    (2) A letterhead statement from the importer's bank or other 
documentation confirming the importer has the financial ability to 
comply with the initial payment requirement in Sec. 1493.230(c);
    (3) Written evidence of a firm sale signed by the exporter and the 
importer, specifying at minimum, the following information: Goods or 
services to be exported, quantities of such items, delivery terms (e.g., 
FOB, CFR, CIF), delivery period(s), contract value, payment terms, and 
date of sale. A sales contract may be contingent upon obtaining a 
facility payment guarantee;
    (4) A description of any changes in the information submitted in the 
preliminary application; and
    (5) The exporter's signature;
    (b) Additional information. CCC shall have the right to request the 
exporter to furnish any other information and documentation it deems 
pertinent to the evaluation of the exporter's final application for a 
final commitment.

[[Page 828]]

CCC may request from the exporter an independent engineering study or 
economic feasibility study relating to the project.
    (c) Final commitment letter. After making a favorable determination 
on the exporter's submissions, CCC will issue a final commitment letter 
indicating the applicable exposure fee rate and stating that CCC is 
prepared to issue a facility payment guarantee upon receiving full 
payment of the exposure fee within an allotted time. The letter will 
also indicate the key terms and coverage of the guarantee to be issued. 
CCC will also inform exporters in writing when it denies their request 
for a facility payment guarantee.
    (d) Exposure fee. The exposure fee is calculated by multiplying the 
requested guaranteed value (up to the maximum established by CCC's final 
commitment letter) by the exposure fee rate. Once the facility payment 
guarantee is issued to the exporter, CCC will ordinarily not refund the 
exposure fee. If CCC does not issue a facility payment guarantee, or 
issues a guarantee for only part of the coverage requested, CCC will 
make a full or pro rata refund of the exposure fee, as appropriate.
    (e) Issuance of the facility payment guarantee. Upon receipt of the 
exposure fee, CCC will issue a facility payment guarantee.