**(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
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Stable record: federal_law:legal_authorities:record_usc_7a3eefcaa36df5d884fd827e Source file: Laws/federal/codes/united-states-code/title-22/section-2763-credit-sales--4774ba664f.md Pages: Not recorded – Not recorded Passage SHA-256: d800effb8254461dc13baae59acb2e8ef88a9d364de5d30ecee906a4039dd646 Retained source evidence SHA-256: 79df19014a5c549cbbb8f4a61a7a22a8a37a74a09c3fbb8432e0614e63e61c85
Source location: Title 22, Chapter 39, § 2763; chapter-039-arms-export-control.md
Stored source content
**(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 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** References in any law to credits extended under this section shall be deemed to include reference to 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2764&num=0&edition=prelim), 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** For each fiscal year, the Secretary of Defense, as requested by the Director of the Defense Security Assistance Agency, shall conduct audits on a nonreimbursable basis of private firms that have entered into contracts with foreign governments under which defense articles, defense services, or design and construction services are to be procured by such firms for such governments from financing under this section.
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2151&num=0&edition=prelim) 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)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2394–1/a&num=0&edition=prelim)] 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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2765&num=0&edition=prelim).
**(h) Limitation on use of funds for direct commercial contracts** Of the amounts made available for a fiscal year to carry out this section, not more than $100,000,000 for such fiscal year may be made available for countries other than Israel and Egypt for the purpose of financing the procurement of defense articles, defense services, and design and construction services that are not sold by the United States Government under this chapter.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2151. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2151. Congressional findings and declaration of
policy
(a) United States development cooperation pol-
icy
The Congress finds that fundamental political,
economic, and technological changes have re-
sulted in the interdependence of nations. The
Congress declares that the individual liberties,
economic prosperity, and security of the people
of the United States are best sustained and en-
hanced in a community of nations which respect
individual civil and economic rights and free-
doms and which work together to use wisely the
world’s limited resources in an open and equi-
table international economic system. Further-
more, the Congress reaffirms the traditional hu-
manitarian ideals of the American people and
renews its commitment to assist people in devel-
oping countries to eliminate hunger, poverty,
illness, and ignorance.
Therefore, the Congress declares that a prin-
cipal objective of the foreign policy of the
United States is the encouragement and sus-
tained support of the people of developing coun-
tries in their efforts to acquire the knowledge
and resources essential to development and to
build the economic, political, and social institu-
tions which will improve the quality of their
lives.
United States development cooperation policy
should emphasize five principal goals:
Page 533
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2151
(1) the alleviation of the worst physical
manifestations of poverty among the world’s
poor majority;
(2) the promotion of conditions enabling de-
veloping countries to achieve self-sustaining
economic growth with equitable distribution
of benefits;
(3) the encouragement of development proc-
esses in which individual civil and economic
rights are respected and enhanced;
(4) the integration of the developin
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2151. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Annual report to Congress on programs having impact on developing countries; contents** In order that the Congress and the American people may be better and more currently informed regarding American foreign policy and the effectiveness of assistance provided by the United States Government to other countries and to international organizations, the Chairman of the Development Coordination Committee shall prepare and transmit to the Congress, no later than February 1 of each year, as a part of the annual presentation materials for foreign assistance, a report as described in this subsection. This report shall include—
(1)
(A) a comprehensive and coordinated review of all United States policies and programs having a major impact on the development of developing countries, including but not limited to bilateral and multilateral assistance, trade, debt, employment, food, energy, technology, population, oceans, environment, human settlements, natural resources, and participation in international agencies concerned with development;
(B) an assessment of the impact of such policies and programs on the well-being of the poor majority in developing countries in accordance with the policy objectives of part I of subchapter I of this chapter, including increasing life expectancy and literacy, lowering infant mortality and birth rates, and increasing food production and employment, such assessment to include an evaluation of the extent to which programs under part I of subchapter I of this chapter directly benefit the poor majority; and
(C) an assessment of the impact of such policies and programs on economic conditions in the United States, including but not limited to employment, wages, and working conditions;
(2) the dollar value of all foreign assistance and gu
Stored review status: release_metadata_unconfirmed. The source passage cites 22 U.S.C. § 2394. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 2394. Reports and information; definitions
(a) Annual report to Congress on programs hav-
ing impact on developing countries; contents
In order that the Congress and the American
people may be better and more currently in-
formed regarding American foreign policy and
the effectiveness of assistance provided by the
United States Government to other countries
and to international organizations, the Chair-
man of the Development Coordination Com-
mittee shall prepare and transmit to the Con-
gress, no later than February 1 of each year, as
a part of the annual presentation materials for
foreign assistance, a report as described in this
subsection. This report shall include—
(1)(A) a comprehensive and coordinated re-
view of all United States policies and pro-
grams having a major impact on the develop-
ment of developing countries, including but
not limited to bilateral and multilateral as-
sistance, trade, debt, employment, food, en-
ergy, technology, population, oceans, environ-
ment, human settlements, natural resources,
and participation in international agencies
concerned with development;
(B) an assessment of the impact of such poli-
cies and programs on the well-being of the
poor majority in developing countries in ac-
cordance with the policy objectives of part I of
subchapter I of this chapter, including increas-
ing life expectancy and literacy, lowering in-
fant mortality and birth rates, and increasing
food production and employment, such assess-
ment to include an evaluation of the extent to
which programs under part I of subchapter I of
this chapter directly benefit the poor major-
ity; and
(C) an assessment of the impact of such poli-
cies and programs on economic conditions in
the United States, including but not limited
to employmen
Stored review status: historical_2024_not_currentness_verified. The source passage cites 22 U.S.C. § 2394. 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