
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: 10USC2540c]

 
                         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. 2540c. Fees charged and collected

    (a) Exposure Fees.--The Secretary of Defense shall charge a fee 
(known as ``exposure fee'') for each guarantee issued under this 
subchapter.
    (b) Amount of Exposure Fee.--To the extent that the cost of the loan 
guarantees under this subchapter is not otherwise provided for in 
appropriations Acts, the fee imposed under subsection (a) with respect 
to a loan guarantee shall be fixed in an amount that is sufficient to 
meet potential liabilities of the United States under the loan 
guarantee.
    (c) Payment Terms.--The fee under subsection (a) for each guarantee 
shall become due as the guarantee is issued. In the case of a guarantee 
for a loan which is disbursed incrementally, and for which the guarantee 
is correspondingly issued incrementally as portions of the loan are 
disbursed, the fee shall be paid incrementally in proportion to the 
amount of the guarantee that is issued.
    (d) Administrative Fees.--(1) The Secretary of Defense shall charge 
a fee for each guarantee issued under this subchapter to reflect the 
additional administrative costs of the Department of Defense that are 
directly attributable to the administration of the program under this 
subchapter. Such fees shall be credited to a special account in the 
Treasury. Amounts in the special account shall be available, to the 
extent and in amounts provided in appropriations Acts, for paying the 
costs of administrative expenses of the Department of Defense that are 
attributable to the loan guarantee program under this subchapter.
    (2)(A) If for any fiscal year amounts in the special account 
established under paragraph (1) are not available (or are not 
anticipated to be available) in a sufficient amount for administrative 
expenses of the Department of Defense for that fiscal year that are 
directly attributable to the administration of the program under this 
subchapter, the Secretary may use amounts currently available for 
operations and maintenance for Defense-wide activities, not to exceed 
$500,000 in any fiscal year, for those expenses.
    (B) The Secretary shall, from funds in the special account 
established under paragraph (1), replenish operations and maintenance 
accounts for amounts expended under subparagraph (A) as soon as the 
Secretary determines practicable.

(Added Pub. L. 104-106, div. A, title XIII, Sec. 1321(a)(1), Feb. 10, 
1996, 110 Stat. 476; amended Pub. L. 106-398, Sec. 1 [[div. A], title X, 
Sec. 1081(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A-284.)


                               Amendments

    2000--Subsec. (d). Pub. L. 106-398 designated existing provisions as 
par. (1) and added par. (2).


                    Effective Date of 2000 Amendment

    Pub. L. 106-398, Sec. 1 [[div. A], title X, Sec. 1081(b), (c)], Oct. 
30, 2000, 114 Stat. 1654, 1654A-284, provided that:
    ``(b) Effective Date.--Paragraph (2) of section 2540c(d) of title 
10, United States Code, as added by subsection (a), shall take effect on 
October 1, 2000.
    ``(c) Limitation Pending Submission of Report.--The Secretary of 
Defense may not exercise the authority provided by paragraph (2) of 
section 2540c(d) of title 10, United States Code, as added by subsection 
(a), until the Secretary submits to Congress a report on the operation 
of the Defense Export Loan Guarantee Program under subchapter V of 
chapter 148 of title 10, United States Code. The report shall include 
the following:
        ``(1) A discussion of the effectiveness of the loan guarantee 
    program in furthering the sale of United States defense articles, 
    defense services, and design and construction services to nations 
    that are specified in section 2540(b) of such title, to include a 
    comparison of the loan guarantee program with other United States 
    Government programs that are intended to contribute to the sale of 
    United States defense articles, defense services, and design and 
    construction services and other comparisons the Secretary determines 
    to be appropriate.
        ``(2) A discussion of the requirements and resources (including 
    personnel and funds) for continued administration of the loan 
    guarantee program by the Defense Department, to include--
            ``(A) an itemization of the requirements necessary and 
        resources available (or that could be made available) to 
        administer the loan guarantee program for each of the following 
        entities: the Defense Security Cooperation Agency, the 
        Department of Defense International Cooperation Office, and 
        other Defense Department agencies, offices, or activities as the 
        Secretary may specify; and
            ``(B) for each such activity, agency, or office, a 
        comparison of the use of Defense Department personnel 
        exclusively to administer, manage, and oversee the program with 
        the use of contracted commercial entities to administer and 
        manage the program.
        ``(3) Any legislative recommendations that the Secretary 
    believes could improve the effectiveness of the program.
        ``(4) A determination made by the Secretary of Defense 
    indicating which Defense Department agency, office, or other 
    activity should administer, manage, and oversee the loan guarantee 
    program to increase sales of United States defense articles, defense 
    services, and design and construction services, such determination 
    to be made based on the information and analysis provided in the 
    report.''
