
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2540]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 148--NATIONAL DEFENSE TECHNOLOGY AND INDUSTRIAL BASE, DEFENSE 
                  REINVESTMENT, AND DEFENSE CONVERSION
 
              SUBCHAPTER VI--DEFENSE EXPORT LOAN GUARANTEES
 
Sec. 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 
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.
        (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, Sec. 1321(a)(1), Feb. 10, 
1996, 110 Stat. 475.)


                            Prior Provisions

    A prior section 2540, acts Aug. 10, 1956, ch. 1041, 70A Stat. 141, 
Sec. 2511; renumbered Sec. 2521, Nov. 5, 1990, Pub. L. 101-510, div. A, 
title VIII, Sec. 823(a)(2), 104 Stat. 1600; renumbered Sec. 2540, Dec. 
5, 1991, Pub. L. 102-190, div. A, title VIII, Sec. 821(e)(3), 105 Stat. 
1432, related to availability or issuance to reserve components of 
supplies, services, and facilities of armed forces, prior to repeal by 
Pub. L. 103-337, div. A, title XVI, Secs. 1664(c)(2), 1691, Oct. 5, 
1994, 108 Stat. 3012, 3026, effective Dec. 1, 1994. See section 18502 of 
this title.
    Another prior section 2540 was renumbered section 2539a of this 
title.


             Report on Defense Export Loan Guarantee Program

    Section 1321(b) of Pub. L. 104-106 provided that: ``Not later than 
two years after the date of the enactment of this Act [Feb. 10, 1996], 
the President shall submit to Congress a report on the loan guarantee 
program established pursuant to section 2540 of title 10, United States 
Code, as added by subsection (a). The report shall include--
        ``(1) an analysis of the costs and benefits of the loan 
    guarantee program; and
        ``(2) any recommendations for modification of the program that 
    the President considers appropriate, including--
            ``(A) any recommended addition to the list of countries for 
        which a guarantee may be issued under the program; and
            ``(B) any proposed legislation necessary to authorize a 
        recommended modification.''
