10 USC 4971 - Establishment of loan guarantee program

U.S Code last checked for updates: Feb 23, 2025

§ 4971.

Establishment of loan guarantee program

(a)

Establishment.—

In order to meet the national security objectives in section 4811(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 long-term 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, as in effect on that date.

(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.

(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 475, § 2540; amended Pub. L. 108–375, div. A, title X, § 1084(d)(21), Oct. 28, 2004, 118 Stat. 2062; renumbered § 4971 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1873(b), (c)(1), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4290, 4294.)

cite as: 10 USC 4971