**(a) Defense articles and services; noncombatant personnel; transfer of funds** The President is authorized to furnish military assistance, on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance, by—
(1) acquiring for any source and providing (by loan or grant) any defense article or defense service;
(2) assigning or detailing members of the Armed Forces of the United States and other personnel of the Department of Defense to perform duties of a noncombatant nature; or
(3) transferring such of the funds appropriated or otherwise made available under this part as the President may determine for assistance to a recipient country, to the account in which funds for the procurement of defense articles and defense services under section 21 and section 22 of the Arms Export Control Act [[22 U.S.C. 2761](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2761&num=0&edition=prelim) and 2762] have been deposited for such recipient, to be merged with such deposited funds, and to be used solely to meet obligations of the recipient for payment for sales under that Act [[22 U.S.C. 2751](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2751&num=0&edition=prelim) et seq.].
Sales which are wholly paid from funds transferred under paragraph (3) or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act [[22 U.S.C. 2763](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim)] shall be priced to exclude the costs of salarie
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Stable record: federal_law:legal_authorities:record_usc_45b74549dc37d32f3e129623 Source file: Laws/federal/codes/united-states-code/title-22/section-2311-general-authority--9a00dfb47a.md Pages: Not recorded – Not recorded Passage SHA-256: ea6b1971384f0e510da28572e58f3aeece0115d9284064e049e8d311469556fc Retained source evidence SHA-256: a47cf4dc17430d44f04cbdac34edc790f3fcaa1a93240b669dec71c8715e2d4d
Source location: Title 22, Chapter 32, § 2311; chapter-032-foreign-assistance.md
Stored source content
**(a) Defense articles and services; noncombatant personnel; transfer of funds** The President is authorized to furnish military assistance, on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance, by—
(1) acquiring for any source and providing (by loan or grant) any defense article or defense service;
(2) assigning or detailing members of the Armed Forces of the United States and other personnel of the Department of Defense to perform duties of a noncombatant nature; or
(3) transferring such of the funds appropriated or otherwise made available under this part as the President may determine for assistance to a recipient country, to the account in which funds for the procurement of defense articles and defense services under section 21 and section 22 of the Arms Export Control Act [[22 U.S.C. 2761](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2761&num=0&edition=prelim) and 2762] have been deposited for such recipient, to be merged with such deposited funds, and to be used solely to meet obligations of the recipient for payment for sales under that Act [[22 U.S.C. 2751](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2751&num=0&edition=prelim) et seq.].
Sales which are wholly paid from funds transferred under paragraph (3) or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act [[22 U.S.C. 2763](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2763&num=0&edition=prelim)] shall be priced to exclude the costs of salaries of members of the Armed Forces of the United States (other than the Coast Guard).
**(b) Terms and conditions** In addition to such other terms and conditions as the President may determine pursuant to subsection (a), defense articles may be loaned thereunder only if—
(1) there is a bona fide reason, other than the shortage of funds, for providing such articles on a loan basis rather than on a grant basis;
(2) there is a reasonable expectation that such articles will be returned to the agency making the loan at the end of the loan period, unless the loan is then renewed;
(3) the loan period is of fixed duration not exceeding five years, during which such article may be recalled for any reason by the United States;
(4) the agency making the loan is reimbursed for the loan based on the amount charged to the appropriation for military assistance under subsection (c); and
(5) the loan agreement provides that (A) if the defense article is damaged while on loan, the country or international organization to which it was loaned will reimburse the United States for the cost of restoring or replacing the defense article, and (B) if the defense article is lost or destroyed while on loan, the country or international organization to which it was loaned will pay to the United States an amount equal to the replacement cost (less any depreciation in the value) of the defense article.
**(c) Appropriation charges; exceptions**
(1) In the case of any loan of a defense article or defense service made under this section, there shall be a charge to the appropriation for military assistance for any fiscal year while the article or service is on loan in an amount based on—
(A) the out-of-pocket expenses authorized to be incurred in connection with such loan during such fiscal year; and
(B) the depreciation which occurs during such year while such article is on loan.
(2) The provisions of this subsection shall not apply—
(A) to any particular defense article or defense service which the United States Government agreed, prior to December 17, 1973, to lend; and
(B) to any defense article or defense service, or portion thereof, acquired with funds appropriated for military assistance under this chapter.
Cross-references
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Federal law — U.S. Code and appendices · legal_authorities
§ 2311. General authority
(a) Defense articles and services; noncombatant
personnel; transfer of funds
The President is authorized to furnish mili-
tary assistance, on such terms and conditions as
he may determine, to any friendly country or
international organization, the assisting of
which the President finds will strengthen the se-
curity of the United States and promote world
peace and which is otherwise eligible to receive
such assistance, by—
(1) acquiring for any source and providing
(by loan or grant) any defense article or de-
fense service;
(2) assigning or detailing members of the
Armed Forces of the United States and other
personnel of the Department of Defense to per-
form duties of a noncombatant nature; or
(3) transferring such of the funds appro-
priated or otherwise made available under this
part as the President may determine for as-
sistance to a recipient country, to the account
in which funds for the procurement of defense
articles and defense services under section 21
and section 22 of the Arms Export Control Act
[22 U.S.C. 2761 and 2762] have been deposited
for such recipient, to be merged with such de-
posited funds, and to be used solely to meet
obligations of the recipient for payment for
sales under that Act [22 U.S.C. 2751 et seq.].
Sales which are wholly paid from funds trans-
ferred under paragraph (3) or from funds made
available on a non-repayable basis under section
23 of the Arms Export Control Act [22 U.S.C.
2763] shall be priced to exclude the costs of sala-
ries of members of the Armed Forces of the
United States (other than the Coast Guard).
Page 781
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2311
(b) Terms and conditions
In addition to such other terms and conditions
as the President may determine pu
As declared by the Congress in the Arms Control and Disarmament Act [[22 U.S.C. 2551](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2551&num=0&edition=prelim) et seq.], an ultimate goal of the United States continues to be a world which is free from the scourge of war and the dangers and burdens of armaments; in which the use of force has been subordinated to the rule of law; and in which international adjustments to a changing world are achieved peacefully. In furtherance of that goal, it remains the policy of the United States to encourage regional arms control and disarmament agreements and to discourage arms races.
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2751. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2751. Need for international defense coopera-
tion and military export controls; Presi-
dential waiver; report to Congress; arms
sales policy
As declared by the Congress in the Arms Con-
trol and Disarmament Act [22 U.S.C. 2551 et
seq.], an ultimate goal of the United States con-
tinues to be a world which is free from the
scourge of war and the dangers and burdens of
armaments; in which the use of force has been
subordinated to the rule of law; and in which
international adjustments to a changing world
are achieved peacefully. In furtherance of that
goal, it remains the policy of the United States
to encourage regional arms control and disar-
mament agreements and to discourage arms
races.
The Congress recognizes, however, that the
United States and other free and independent
countries continue to have valid requirements
for effective and mutually beneficial defense re-
lationships in order to maintain and foster the
environment of international peace and security
essential to social, economic, and political
progress. Because of the growing cost and com-
plexity of defense equipment, it is increasingly
difficult and uneconomic for any country, par-
ticularly a developing country, to fill all of its
legitimate defense requirements from its own
design and production base. The need for inter-
national defense cooperation among the United
States and those friendly countries to which it
is allied by mutual defense treaties is especially
important, since the effectiveness of their armed
Page 1186
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2751
forces to act in concert to deter or defeat ag-
gression is directly related to the operational
compatibility of their defense equipment.
Accordingly, it remains the policy of the
United States to faci
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2751. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Eligible countries or international organizations; basis of payment; valuation of certain defense articles**
(1) The President may sell defense articles and defense services from the stocks of the Department of Defense and the Coast Guard to any eligible country or international organization if such country or international organization agrees to pay in United States dollars—
(A) in the case of a defense article not intended to be replaced at the time such agreement is entered into, not less than the actual value thereof;
(B) in the case of a defense article intended to be replaced at the time such agreement is entered into, the estimated cost of replacement of such article, including the contract or production costs less any depreciation in the value of such article; or
(C) in the case of the sale of a defense service, the full cost to the United States Government of furnishing such service, except that in the case of training sold to a purchaser who is concurrently receiving assistance under chapter 5 of part II of the Foreign Assistance Act of 1961 [[22 U.S.C. 2347](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2347&num=0&edition=prelim) et seq.] or to any high-income foreign country (as described in that chapter), only those additional costs that are incurred by the United States Government in furnishing such assistance.
(2) For purposes of subparagraph (A) of paragraph (1), the actual value of a naval vessel of 3,000 tons or less and 20 years or more of age shall be considered to be not less than the greater of the scrap value or fair value (including conversion costs) of such vessel, as determined by the Secretary of Defense.
**(b) Time of payment** Except as provided by subsection (d) of this section, payment shall
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2761. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2761. Sales from stocks
(a) Eligible countries or international organiza-
tions; basis of payment; valuation of certain
defense articles
(1) The President may sell defense articles and
defense services from the stocks of the Depart-
ment of Defense and the Coast Guard to any eli-
gible country or international organization if
such country or international organization
agrees to pay in United States dollars—
(A) in the case of a defense article not in-
tended to be replaced at the time such agree-
ment is entered into, not less than the actual
value thereof;
(B) in the case of a defense article intended
to be replaced at the time such agreement is
entered into, the estimated cost of replace-
ment of such article, including the contract or
production costs less any depreciation in the
value of such article; or
(C) in the case of the sale of a defense serv-
ice, the full cost to the United States Govern-
ment of furnishing such service, except that in
the case of training sold to a purchaser who is
concurrently receiving assistance under chap-
ter 5 of part II of the Foreign Assistance Act
of 1961 [22 U.S.C. 2347 et seq.] or to any high-
income foreign country (as described in that
chapter), only those additional costs that are
incurred by the United States Government in
furnishing such assistance.
(2) For purposes of subparagraph (A) of para-
graph (1), the actual value of a naval vessel of
3,000 tons or less and 20 years or more of age
shall be considered to be not less than the great-
er of the scrap value or fair value (including
conversion costs) of such vessel, as determined
by the Secretary of Defense.
(b) Time of payment
Except as provided by subsection (d) of this
section, payment shall be made in advance or, if
the President determin
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2761. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Financing procurement of defense articles and services, and design and construction services** The President is authorized to finance the procurement of defense articles, defense services, and design and construction services by friendly foreign countries and international organizations, on such terms and conditions as he may determine consistent with the requirements of this section. Notwithstanding any other provision of law, and subject to the regular notification requirements of the Committees on Appropriations, the authority of this section may be used to provide financing to Israel and Egypt for the procurement by leasing (including leasing with an option to purchase) of defense articles from United States commercial suppliers, not including Major Defense Equipment (other than helicopters and other types of aircraft having possible civilian application), if the President determines that there are compelling foreign policy or national security reasons for those defense articles being provided by commercial lease rather than by government-to-government sale under this chapter.
**(b) Repayment period** The President shall require repayment in United States dollars within a period not to exceed twelve years after the loan agreement with the country or international organization is signed on behalf of the United States Government, unless a longer period is specifically authorized by statute for that country or international organization.
**(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 wh
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2763. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2763. Credit sales
(a) Financing procurement of defense articles
and services, and design and construction
services
The President is authorized to finance the pro-
curement of defense articles, defense services,
and design and construction services by friendly
foreign countries and international organiza-
tions, on such terms and conditions as he may
determine consistent with the requirements of
this section. Notwithstanding any other provi-
sion of law, and subject to the regular notifica-
tion requirements of the Committees on Appro-
priations, the authority of this section may be
used to provide financing to Israel and Egypt for
the procurement by leasing (including leasing
with an option to purchase) of defense articles
from United States commercial suppliers, not
including Major Defense Equipment (other than
helicopters and other types of aircraft having
possible civilian application), if the President
determines that there are compelling foreign
policy or national security reasons for those de-
fense articles being provided by commercial
lease rather than by government-to-government
sale under this chapter.
(b) Repayment period
The President shall require repayment in
United States dollars within a period not to ex-
ceed twelve years after the loan agreement with
the country or international organization is
signed on behalf of the United States Govern-
ment, unless a longer period is specifically au-
thorized by statute for that country or inter-
national organization.
(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 per-
cent per year.
(2) For purposes of financing provided under
this section—
(A) the term ‘‘conc
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2763. This identifies an authority to review, not proof of applicability.