§ 4971. Establishment of loan guarantee program

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1996

   National Defense Authorization Act for Fiscal Year 1996

   Pub. L. 104–106 div. A title XIII § 1321(a)(1) · 110 Stat. 186

   Enacted · 10 U.S.C. § 4971

   Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 475, § 2540

   Source evidence

   Code source credit
   Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 475, § 2540

   Enacted provision · exact public law section
   (1) Chapter 148 of title 10, United States Code, is amended by adding at the end the following new subchapter: “SUBCHAPTER VI— DEFENSE EXPORT LOAN GUARANTEES “Sec. “2540.  Establishment of Ioan guarantee program. “2540a.  Transferability. “2540b.  Limitations. “2540c.  Fees charged and collected. “2540d.  Definitions. “§ 2540. Establishment of loan guarantee program “(a) Establishment.— In order to meet the national security objectives in section 2501(a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or longterm lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b). “(b) Covered Countries.— The authority under subsection (a) applies with respect to the following countries: “(1) A member nation of the North Atlantic Treaty Organization (NATO). “(2) A country designated as of March 31, 1995, as a major non-NATO ally pursuant to section 2350a(i)(3) of this title. “(3) A country in Central Europe that, as determined by the Secretary of State— “(A) has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or “(B) is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government. “(4) A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993. “(c) Authority Subject to Provisions of Appropriations.— The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts. “§ 2540a. Transferability “A guarantee issued under this subchapter shall be fully and freely transferable. “§ 2540b. Limitations “(a) Terms and Conditions of Loan Guarantees.— In issuing a guarantee under this subchapter for a medium-term or long-term loan, the Secretary may not offer terms and conditions more beneficial than those that would be provided to the recipient by the Export-Import Bank of the United States under similar circumstances in conjunction with the provision of guarantees for nondefense articles and services. “(b) Losses Arising From Fraud or Misrepresentation.— No payment may be made under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking payment is responsible. “(c) No Right of Acceleration.— The Secretary of Defense may not accelerate any guaranteed loan or increment, and may not pay any amount, in respect of a guarantee issued under this subchapter, other than in accordance with the original payment terms of the loan. “§ 2540c. Fees charged and collected “(a) Exposure Fees.— The Secretary of Defense shall charge a fee (known as ‘exposure fee’) for each guarantee issued under this subchapter. “(b) Amount of Exposure Fee.—To the extent that the cost of the loan guarantees under this subchapter is not otherwise provided for in appropriations Acts, the fee imposed under subsection (a) with respect to a loan guarantee shall be fixed in an amount that is sufficient to meet potential liabilities of the United States under the loan guarantee. “(c) Payment Terms.— The fee under subsection (a) for each guarantee shall become due as the guarantee is issued. In the case of a guarantee for a loan which is disbursed incrementally, and for which the guarantee is correspondingly issued incrementally as portions of the loan are disbursed, the fee shall be paid incrementally in proportion to the amount of the guarantee that is issued. “(d) Administrative Fees.— The Secretary of Defense shall charge a fee for each guarantee issued under this subchapter to reflect the additional administrative costs of the Department of Defense that are directly attributable to the administration of the program under this subchapter. Such fees shall be credited to a special account in the Treasury. Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter. “§ 2540d. Definitions “In this subchapter: “(1) The terms ‘defense article’, ‘defense services’, and ‘design and construction services’ have the meanings given those terms in section 47 of the Arms Export Control Act (22 U.S.C. 2794). “(2) The term ‘cost’, with respect to a loan guarantee, has the meaning given that term in section 502 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 661a).”.

2. 2004

   Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005

   Pub. L. 108–375 div. A title X § 1084(d)(21) · 118 Stat. 1811

   Inserted · 10 U.S.C. § 4971(b)(2)

   Pub. L. 108–375 inserted “, as in effect on that date” before period at end

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 108–375 inserted “, as in effect on that date” before period at end.

   Enacted provision · exact public law section
   (21) Section 2540(b)(2) is amended by inserting “, as in effect on that date” before the period at the end.

3. 2021

   William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

   Pub. L. 116–283 § 1873(b) · 134 Stat. 3388

   Changed · 10 U.S.C. § 4971

   Pub. L. 116–283, § 1873(b), (c)(1), renumbered section 2540 of this title as this section

   Source evidence

   Code amendment note
   Pub. L. 116–283, § 1873(b), (c)(1), renumbered section 2540 of this title as this section.

   Enacted provision · exact public law section
   (b) Transfer of Existing Provisions.— Subchapters VI and VII of chapter 148 of title 10, United States Code, 10 USC prec. 4971, 2540–2540d, prec. 4981, 2541–2541d. are transferred to chapter 389 of such title, as added by subsection (a), inserted after the table of subchapters at the beginning of the chapter, and redesignated as subchapters I and II, respectively.

   Effective date note
   Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

4. 2021

   William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

   Pub. L. 116–283 § 1883(b)(2) · 134 Stat. 3388

   Substituted · 10 U.S.C. § 4971(a)

   Pub. L. 116–283, § 1883(b)(2), substituted “section 4811(a)” for “section 2501(a)”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 116–283, § 1883(b)(2), substituted “section 4811(a)” for “section 2501(a)”.

   Enacted provision · exact public law section
   * * Note: Classifications for Sec. 1883(b)(2): 10 USC 113, 118, 129a, 133b, 139a, 171a, 181, 231a, 483, 1091, 1501a, 1701a, 1706, 1724, 1734, 2113, 2343, 2350b, 2463, 2484, 2583, 2688, 3131, 3136, 3137, 3455, 3862, 3905, 4003, 4008, 4009, 4015, 4061, 4062, 4065, 4146, 4147, 4171, 4172, 4252, 4323, 4324, 4505, 4603, 4660, 4816, 4819, 4863, 4864, 4971, 4981, 7462, 7554, 8481, 8633, 8669b, 9082, 9462. (2) Title 10.— Except as otherwise provided in this title, in title 10, United States Code, each reference in the text of such title to a source section is amended by striking such reference and inserting a reference to the appropriate redesignated section.

   Effective date note
   Amendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.

4 of 4 references resolved to an enrolled provision