
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: 22USC2311]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
              SUBCHAPTER II--MILITARY ASSISTANCE AND SALES
 
                      Part II--Military Assistance
 
Sec. 2311. General authority


(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 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 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] 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) of this section, 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) of this section; 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.

(Pub. L. 87-195, pt. II, Sec. 503, Sept. 4, 1961, 75 Stat. 435; Pub. L. 
88-633, Sec. 201(a), Oct. 7, 1964, 78 Stat. 1011; Pub. L. 89-171, pt. 
II, Sec. 201(a), Sept. 6, 1965, 79 Stat. 656; Pub. L. 90-137, pt. II, 
Sec. 201(b), Nov. 14, 1967, 81 Stat. 455; Pub. L. 93-189, Sec. 12(b)(1), 
Dec. 17, 1973, 87 Stat. 720; Pub. L. 96-533, title I, Sec. 112(a), Dec. 
16, 1980, 94 Stat. 3138; Pub. L. 97-113, title I, Secs. 109(c), 110(c), 
Dec. 29, 1981, 95 Stat. 1526; Pub. L. 99-83, title I, Sec. 123(a), Aug. 
8, 1985, 99 Stat. 205; Pub. L. 100-461, title V, Sec. 586(a), Oct. 1, 
1988, 102 Stat. 2268-50.)

                       References in Text

    The Arms Export Control Act, referred to in subsec. (a)(3), is Pub. 
L. 90-629, Oct. 22, 1968, 82 Stat. 1320, as amended, which is classified 
principally to chapter 39 (Sec. 2751 et seq.) of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 2751 of this title and Tables.
    This chapter, referred to in subsec. (c)(2)(B), was in the original 
``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as 
amended, known as the Foreign Assistance Act of 1961. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 2151 of this title and Tables.

                          Codification

    A guaranty provision, formerly subsec. (e) of this section, was 
renumbered section 525(a) of Pub. L. 87-195 by Pub. L. 90-137, pt. II, 
Sec. 201(b)(3), Nov. 14, 1967, 81 Stat. 455, and classified to section 
2345(a) of this title and repealed by Pub. L. 90-629, ch. 4, Sec. 45(a), 
Oct. 22, 1968, 82 Stat. 1327.


                               Amendments

    1988--Subsec. (a). Pub. L. 100-461 inserted in last sentence ``or 
from funds made available on a non-repayable basis under section 23 of 
the Arms Export Control Act'' after ``under paragraph (3)'' and ``(other 
than the Coast Guard)'' after ``Armed Forces of the United States''.
    1985--Subsec. (a). Pub. L. 99-83 inserted sentence relating to 
pricing of sales wholly paid from transferred funds.
    1981--Subsec. (a)(3). Pub. L. 97-113, Sec. 110(c), substituted 
``country'' for ``specified in section 2312(a)(1) of this title, within 
the dollar limitations of that section''.
    Subsec. (b)(5). Pub. L. 97-113 substituted provision respecting 
payment of restoration or replacement costs for defense articles on loan 
for provision for making such a loan only if arrangements were made with 
the agency making the loan for reimbursement in the event the article 
was lost or destroyed while on loan, the reimbursement of which was to 
be made first out of any funds available to carry out this part and 
based on the depreciated value of the article at the time of loss or 
destruction.
    1980--Subsec. (a)(3). Pub. L. 96-533 added par. (3).
    1973--Pub. L. 93-189 designated existing provisions as subsec. (a), 
struck out references to making financial contributions to multilateral 
programs for the acquisition or construction of facilities for 
collective defense and providing financial assistance for expenses 
incident to participation by the United States government in regional or 
collective defense organizations, and added subsecs. (b) and (c).
    1967--Subsec. (a). Pub. L. 90-137, Sec. 201(b)(1), substituted ``or 
grant'' for ``, lease, sale, exchange, grant, or any other means''.
    Subsec. (d). Pub. L. 90-137, Sec. 201(b)(2), substituted a period 
for ``; and''.
    Subsec. (e). Pub. L. 90-137, Sec. 201(b)(3), struck out subsec. (e) 
which related to the guaranty and insuring against political and credit 
risks in connection with credit sales for defense articles and services 
procured in the United States. See Codification note above.
    1965--Subsec. (b). Pub. L. 89-171 struck out ``in foreign 
countries'' after ``facilities''.
    1964--Subsec. (e). Pub. L. 88-633 added subsec. (e).


                    Effective Date of 1988 Amendment

    Section 586(c) of Pub. L. 100-461 provided that: ``This section 
[amending this section] shall be effective on October 1, 1989.''


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-83 effective Oct. 1, 1985, see section 1301 
of Pub. L. 99-83, set out as a note under section 2151-1 of this title.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.


                   Reports to Congressional Committees

    Section 301 of Pub. L. 100-461 provided: ``That the Committees on 
Appropriations shall be furnished on March 1 of each year a complete 
report of the status of military assistance funds appropriated by this 
or any future Act committed for the payment of any sales under the Arms 
Export Control Act [22 U.S.C. 2751 et seq.] as regards the individual 
sale, item description, and estimated sales price.''


                     Findings by Secretary of State

    The Secretary of State, in the implementation of the functions 
delegated to him under section 2314(a)(1), (4), and (e) of this title, 
was authorized by section 1-701(e)(1) of Ex. Ord. No. 12163, Sept. 29, 
1979, 44 F.R. 56678, eff. Oct. 1, 1979, set out as a note under section 
2381 of this title, to find, in the case of a proposed transfer of a 
defense article or a related training or a related defense service by a 
foreign country or international organization to a foreign country or 
international organization not otherwise eligible under subsec. (a) of 
this section, whether the proposed transfer would strengthen the 
security of the United States and promote world peace.


 Review of Military Assistance Program; Reduction and Elimination Plan; 
                          Submittal to Congress

    Pub. L. 93-559, Sec. 17, Dec. 30, 1974, 88 Stat. 1800, which set 
forth provisions respecting review of military assistance program and 
submittal to Congress of plan for reduction and elimination, was 
repealed by Pub. L. 95-384, Sec. 29(c)(4), Sept. 26, 1978, 92 Stat. 747.

                  Section Referred to in Other Sections

    This section is referred to in sections 2321j, 2394, 2761, 2764, 
2765 of this title.
