Medium-Term Electronic Compliance Program

Ex-Im Bank's Credit Administration staff developed the Medium-Term Electronic Compliance Program (ECP) to greatly improve the efficiency and turnaround time in approving medium-term guarantee disbursements.

The ECP is a web-based certification system for Ex-Im Bank approval of disbursements. The guaranteed lender is responsible for collecting and reviewing all required disbursement documentation and inputting key information obtained from its review on a secure web-site checklist. The checklist is transmitted via the Internet to Ex-Im Bank, where it will be reviewed for completeness and compliance by Credit Administration staff. Once the request has been approved, Ex-Im Bank issues an electronic approval on a secure website. Credit Administration no longer collects or reviews medium-term disbursement documents, issues a Guarantee Certificate, or endorses medium-term promissory notes with Ex-Im Bank's guarantee legend.

All Lenders under the Medium-Term Master Guarantee Agreement (MGA-M) are required to use the ECP.

Frequently Asked Questions
The following questions and answers should respond to most of your questions about the ECP.

Who can participate in the ECP?
All guaranteed lenders that apply for a Medium-Term Guarantee must use the ECP. Ex-Im Bank will not approve a Medium Term transaction unless the guaranteed lender has a signed, effective Master Guarantee Agreement (Medium Term Credits - Electronic Compliance Program).

What programs are covered under ECP?
All medium-term guarantees and select long-term transactions between $10 and $20 million are eligible to be processed under the ECP.

What disbursement documents are needed to complete the checklist?
Disbursement documents needed are an invoice, Exporter's Certificate, evidence of payment, and shipping documents.s

How is the Exposure Fee paid under the ECP?
Under the ECP, only wire transfers are acceptable.

How is data on the checklist transmitted via Internet kept confidential?
Ex-Im Bank uses state of the art encryption and application security similar to that used by financial institutions and stock brokerage firms which provide products and services over the Internet.

What happens if the guaranteed lender makes an inadvertent error on the checklist?
If a lender fails to comply with any of its obligations under the Medium-Term MGA (including accurate completion of the checklist), Ex-Im Bank may suspend the guaranteed lender from further participation under the Medium Term guarantee program. As with the prior guarantee program, Ex-Im Bank also has a right of indemnification from a guaranteed lender if Ex-Im Bank is harmed by such guaranteed lender's errors.

Who retains the disbursement documents?
The guaranteed lender must retain all disbursement documents for the transaction for a period of ten years after the last repayment date. Ex-Im Bank reserves the right to request the disbursement documents from the guaranteed lender at any time.

What documents are needed in the event of a claim?
Ex-Im Bank's claim procedures have not changed as a result of the ECP. We will not require the disbursement documents to process claim payment. However, as noted above, Ex-Im Bank reserves the right to request the disbursement documents from the guaranteed lender at any time.

How are audits conducted?
Ex-Im Bank will conduct random audits of the disbursement documents and compliance with ECP procedures either by requesting that the disbursement documents be sent to Ex-Im Bank or by on-site visits to the guaranteed lenders.

Does the ECP change Ex-Im Bank's guarantee?
No. As under the prior Medium-Term guarantee program, once a disbursement is approved, the disbursement is guaranteed by Ex-Im Bank.

Whom should I contact if I have questions?
If you have questions with respect to transactions that are not yet operative, contact the loan officer assigned to the transaction. Once the credit is operative, all disbursement questions should be addressed to the assigned Credit Administration officer. Questions concerning amendments to an operative transaction (i.e. increase/decrease, change of final disbursement date, etc.) should be directed to the Portfolio Monitoring and Control Group.

Can I use Private Export Funding Corporation under ECP?
Yes. Please contact Vincent Herman at PEFCO at 212-916-0327 or visit PEFCO's website for more information at www.pefco.com.

     
 

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