GSM-102 Eligibility Requirements for U.S. Financial Institutions

A financial institution will be ineligible to receive an assignment of proceeds that may become payable under a payment guarantee if, at the time of assignment, such financial institution:

  • Is not in sound financial condition, as determined by the treasurer of the Commodity Credit Corportation (CCC);
  • Is the financial institution issuing the letter of credit a branch, agency or subsidiary of such institution;
  • Is owned or controlled by an entity that owns or controls the financial institution issuing the letter of credit; or
  • Is the U.S. parent of the foreign bank issuing the letter of credit.

Banks operating in the United States that  are owned or controlled by the government of a foreign country are ineligible to receive assignments of proceeds of payment guarantees when such guarantees have been issued in connection with export sales of agricultural commodities to importers located in the foreign country in question.

Financial institution interested in participating in the GSM-102 program must provide to CCC:

  • A statement listing the individuals that own or control 5 percent or more of the institution. This statement must indicate the respective direct or indirect interest, and how the individual controls the financial institution, if applicable.
  • Documentation from the applicable U.S. federal or state agency demonstrating that the financial institution is chartered or licensed to do business in the United States.
  • The name and telephone number of the primary contact at the bank regulator.
  • A copy of your most recent annual report including audited financial statements.
To Submit Via Courier
To Submit Via Mail
USDA/FAS/OTP/CPD/Risk and Asset Management
ATTN: Teri Ryan
1400 Independence Ave., SW
Room 5509
Washington, DC 20250
USDA/FAS/OTP/CPD/Risk and Asset Management
ATTN: Teri Ryan
1400 Independence Ave., SW
Mail Stop 1025
Washington, DC 20250-1025

Additional information regarding the eligibility of financial institutions to participate as an assignee in the GSM-102 program can be found in the program regulations, 7 CFR Part 1493,   Sections 1493.140, 1493.530 and 1493.330.