
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: 22USC2344]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
              SUBCHAPTER II--MILITARY ASSISTANCE AND SALES
 
                    Part III--Foreign Military Sales
 
Sec. 2344. Reimbursements


(a) Separate fund account; transfers to such account

    Whenever funds made available for use under subchapter II of this 
chapter have been or are used to furnish military assistance on cash or 
credit terms, United States dollar repayments, including dollar proceeds 
derived from the sale of foreign currency repayments to any agency or 
program of the United States Government, receipts received from the 
disposition of evidences of indebtedness and charges (including fees and 
premiums) or interest collected shall be credited to a separate fund 
account, and shall be available until expended solely for the purpose of 
financing sales and guaranties, including the overhead costs thereof, 
and, notwithstanding any provision of law relating to receipts and 
credits accruing to the United States Government, repayments in foreign 
currency may be used to carry out subchapter II of this chapter. Such 
amounts of the appropriations made available under subchapter II of this 
chapter (including unliquidated balances of funds heretofore obligated 
for financing sales and guarantees) as may be determined by the 
President shall be transferred to, and merged with, the separate fund 
account.

(b) Termination of account; special account for discharge of Federal 
        liabilities and obligations; general fund for excess moneys

    (1) The special fund account established under subsection (a) of 
this section shall terminate as of the end of June 30, 1968, or on such 
earlier date as may be selected by the President.
    (2) Upon the termination of such fund account pursuant to paragraph 
(1), all of the assets of such fund account (including loans and other 
payments receivable) shall be transferred to a special account in the 
Treasury, which special account shall be available solely for the 
purpose of discharging outstanding liabilities and obligations of the 
United States arising out of credit sales agreements entered into, and 
guaranties issued, under subchapter II of this chapter prior to June 30, 
1968. Any moneys in such special account in excess of the aggregate 
United States dollar amount of such liabilities and obligations shall be 
transferred from time to time to the general fund of the Treasury.

(Pub. L. 87-195, pt. II, Sec. 524, formerly Sec. 508, Sept. 4, 1961, 75 
Stat. 437; Pub. L. 89-171, pt. II, Sec. 201(e), Sept. 6, 1965, 79 Stat. 
657; Pub. L. 89-583, pt. II, Sec. 201(c), Sept. 19, 1966, 80 Stat. 803; 
renumbered Sec. 524 and amended Pub. L. 90-137, pt. II, Sec. 201(h), 
Nov. 14, 1967, 81 Stat. 456; Pub. L. 90-629, ch. 4, Sec. 45(a), Oct. 22, 
1968, 82 Stat. 1327.)


     References to Subchapter II Deemed To Exclude Certain Parts of 
                              Subchapter II

    References to subchapter II of this chapter are deemed to exclude 
parts IV (Sec. 2346 et seq.), VI (Sec. 2348 et seq.), and VIII 
(Sec. 2349aa et seq.) of subchapter II, and references to subchapter I 
of this chapter are deemed to include such parts. See section 202(b) of 
Pub. L. 92-226, set out as a note under section 2346 of this title, and 
sections 2348c and 2349aa-5 of this title.

                          Codification

    Section was formerly classified to section 2316 of this title.


                               Amendments

    1968--Subsec. (b)(3). Pub. L. 90-629 repealed provisions of par. (3) 
which related to appropriations for financing sales, dollar value 
payments, general fund for payments, and exempt transactions, and is now 
covered by section 2763 of this title.
    1967--Pub. L. 90-137 designated existing provisions as subsec. (a) 
and added subsec. (b).
    1966--Pub. L. 89-583 provided for transfer to and merger with the 
separate fund account of such amounts of available appropriations 
(including unliquidated balances of funds heretofore obligated for 
financing sales and guarantees) as is determined by the President.
    1965--Pub. L. 89-171 inserted ``receipts received from the 
disposition of evidences of indebtedness and charges (including fees and 
premiums) or interest collected'' and substituted ``have been or are 
used'' for ``are used'' and ``financing sales and guaranties, including 
the overhead costs thereof'' for ``furnishing further military 
assistance on cash or credit terms.''


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-629 effective July 1, 1968, see section 41 
of Pub. L. 90-629, set out as an Effective Date note under section 2751 
of this title.


                            Savings Provision

    Determinations, authorizations, regulations, orders, contracts, 
agreements, and other actions issued, undertaken, or entered into under 
authority of any provision of former subsec. (b)(3) of this section as 
continuing in full force and effect until modified by appropriate 
authority, see section 46 of Pub. L. 90-629, set out as a note under 
former section 2341 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.


   Increases in Military Assistance Programs; Reports to Congress on 
                       Presidential Determinations

    Pub. L. 91-194, title I, Sec. 100, Feb. 9, 1970, 84 Stat. 7, in 
part, limited increases in the military assistance program for any 
country to twenty per cent of the amount justified to Congress unless 
the President determined that such an increase was essential to the 
national interest of the United States and reported such determination 
to the Congress within thirty days after each such determination.
    Similar provisions were contained in Pub. L. 90-249, title I, 
Sec. 100, Jan. 2, 1968, 81 Stat. 937; Pub. L. 90-581, title I, Sec. 100, 
Oct. 17, 1968, 82 Stat. 1138.


     Expenditures by Underdeveloped Countries for Weapons Systems; 
             Presidential Determination; Report to Congress

    Pub. L. 91-194, title I, Sec. 119, Feb. 9, 1970, 84 Stat. 10, 
directed the President to withhold economic assistance in an amount 
equivalent to the amount spent by any underdeveloped country for the 
purchase of sophisticated weapons systems from any country other than 
certain enumerated countries, unless the President determined that such 
a purchase was important to the national security of the United States 
and reported such determination to Congress within thirty days after 
each such determination.
    Similar provisions were contained in Pub. L. 90-249, title I, 
Sec. 119, Jan. 2, 1968, 81 Stat. 940; Pub. L. 90-581, title I, Sec. 119, 
Oct. 17, 1968, 82 Stat. 1141.


    Arms Races and Weapons Systems Restraints; Prohibitions Against 
  Diversion of Resources for Economic and Agricultural Development to 
                            Military Purposes

    Pub. L. 91-194, title I, Sec. 120, Feb. 9, 1970, 84 Stat. 10, 
provided that:
    ``(a) In order to restrain arms races and proliferation of 
sophisticated weapons, and to ensure that resources intended for 
economic development are not diverted to military purposes, the 
President shall take into account before furnishing development loans, 
Alliance loans, or supporting assistance to any country under this Act 
[Pub. L. 91-194], and before making sales under the Agricultural Trade 
Development and Assistance Act of 1954, as amended [section 1691 et seq. 
of Title 7, Agriculture]:
        ``(1) the percentage of the recipient or purchasing country's 
    budget which is devoted to military purposes,
        ``(2) the degree to which the recipient or purchasing country is 
    using its foreign exchange resources to acquire military equipment; 
    and
        ``(3) the amount spent by the recipient or purchasing country 
    for the purchase of sophisticated weapons systems, such as missile 
    systems and jet aircraft for military purposes, from any country.
    ``(b) The President shall report annually to the Speaker of the 
House of Representatives and the Committee on Foreign Relations of the 
Senate his actions in carrying out this provision.''
