22 USC 2763 - Credit sales

U.S Code last checked for updates: Nov 25, 2024

§ 2763.

Credit sales

(a)

Financing procurement of defense articles and services, and design and construction services

(b)

Repayment period

(c)

Interest rate; definitions

(1)

The President shall charge interest under this section at such rate as he may determine, except that such rate may not be less than 5 percent per year.

(2)

For purposes of financing provided under this section—

(A)

the term “concessional rate of interest” means any rate of interest which is less than market rates of interest; and

(B)

the term “market rate of interest” means any rate of interest which is equal to or greater than the current average interest rate (as of the last day of the month preceding the financing of the procurement under this section) that the United States Government pays on outstanding marketable obligations of comparable maturity.

(d)

Participations in credits

(e)

Payments on account of prior credits or loans

(1)

Funds made available to carry out this section may be used by a foreign country to make payments of principal and interest which it owes to the United States Government on account of credits previously extended under this section or loans previously guaranteed under section 2764 of this title, subject to paragraph (2).

(2)

Funds made available to carry out this section may not be used for prepayment of principal or interest pursuant to the authority of paragraph (1).

(f)

Audit of certain private firms

(g)

Notification requirements with respect to cash flow financing

(1)

For each country and international organization that has been approved for cash flow financing under this section, any letter of offer and acceptance or other purchase agreement, or any amendment thereto, for a procurement of defense articles, defense services, or design and construction services in excess of $100,000,000 that is to be financed in whole or in part with funds made available under this chapter or the Foreign Assistance Act of 1961 [22 U.S.C. 2151 et seq.] shall be submitted to the congressional committees specified in section 634A(a) of the Foreign Assistance Act of 1961 [22 U.S.C. 2394–1(a)] in accordance with the procedures applicable to reprogramming notifications under that section.

(2)

For purposes of this subsection, the term “cash flow financing” has the meaning given such term in subsection (d) of section 2765 of this title.

(h)

Limitation on use of funds for direct commercial contracts

(Pub. L. 90–629, ch. 2, § 23, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 93–559, § 45(a)(2), Dec. 30, 1974, 88 Stat. 1813; Pub. L. 94–329, title II, § 208(a), June 30, 1976, 90 Stat. 739; Pub. L. 96–533, title I, § 105(b)(3), Dec. 16, 1980, 94 Stat. 3134; Pub. L. 99–83, title I, § 102, Aug. 8, 1985, 99 Stat. 195; Pub. L. 100–202, § 101(e) [title V, § 572], Dec. 22, 1987, 101 Stat. 1329–131, 1329–176; Pub. L. 101–513, title V, § 580, Nov. 5, 1990, 104 Stat. 2045; Pub. L. 104–164, title I, § 102(a)–(c), July 21, 1996, 110 Stat. 1422.)

cite as: 22 USC 2763