
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2771]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
                SUBCHAPTER III--MILITARY EXPORT CONTROLS
 
Sec. 2771. Military sales authorizations and ceilings


(a) Authorization for foreign military sales credit and guarantee 
        program

    There are authorized to be appropriated to the President to carry 
out this chapter $5,371,000,000 for fiscal year 1986 and $5,371,000,000 
for fiscal year 1987. Credits may not be extended under section 2763 of 
this title in an amount, and loans may not be guaranteed under section 
2764(a) of this title in a principal amount, which exceeds any maximum 
amount which may be established with respect to such credits or such 
loan guarantees in legislation appropriating funds to carry out this 
chapter. Unobligated balances of funds made available pursuant to this 
section are hereby authorized to be continued available by 
appropriations legislation to carry out this chapter.

(b) Aggregate ceilings on credit sales; availability at concessional 
        rates of interest

    (1) The total amount of credits extended under section 2763 of this 
title shall not exceed $5,371,000,000 for fiscal year 1986 and 
$5,371,000,000 for fiscal year 1987.
    (2) Of the aggregate amount of financing provided under this 
section, not more than $553,900,000 for fiscal year 1986 and not more 
than $553,900,000 for fiscal year 1987 may be made available at 
concessional rates of interest. If a country is released from its 
contractual liability to repay the United States Government with respect 
to financing provided under this section, such financing shall not be 
considered to be financing provided at concessional rates of interest 
for purposes of the limitation established by this paragraph.

(c) Interest rates

    Loans available under section 2763 of this title shall be provided 
at rates of interest that are not less than the current average market 
yield on outstanding marketable obligations of the United States of 
comparable maturities.

(Pub. L. 90-629, ch. 3, Sec. 31, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 
91-672, Sec. 2, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 92-226, pt. IV, 
Sec. 401(a), (b), Feb. 7, 1972, 86 Stat. 32; Pub. L. 93-189, Sec. 25(5), 
(6), Dec. 17, 1973, 87 Stat. 730; Pub. L. 93-559, Sec. 45(a)(6), (7), 
Dec. 30, 1974, 88 Stat. 1815; Pub. L. 94-329, title II, Sec. 210(a)-
(c)(1), June 30, 1976, 90 Stat. 740; Pub. L. 95-92, Sec. 19, Aug. 4, 
1977, 91 Stat. 623; Pub. L. 95-384, Sec. 20, Sept. 26, 1978, 92 Stat. 
741; Pub. L. 96-92, Sec. 17(a), Oct. 29, 1979, 93 Stat. 708; Pub. L. 96-
533, title I, Secs. 104(d), 105(b)(3), 106(a)-(c), Dec. 16, 1980, 94 
Stat. 3133-3136; Pub. L. 97-113, title I, Sec. 105, Dec. 29, 1981, 95 
Stat. 1521; Pub. L. 98-151, Sec. 101(b)(2), Nov. 14, 1983, 97 Stat. 969, 
970; Pub. L. 99-83, title I, Sec. 101(a), (b), Aug. 8, 1985, 99 Stat. 
193; Pub. L. 101-513, title V, Sec. 596(c), Nov. 5, 1990, 104 Stat. 
2062; Pub. L. 104-164, title I, Secs. 101, 104(b)(2)(C), July 21, 1996, 
110 Stat. 1422, 1427.)


                               Amendments

    1996--Subsec. (c). Pub. L. 104-164, Sec. 101, amended subsec. (c) 
generally. Prior to amendment, subsec. (c) read as follows: ``For fiscal 
year 1986 and fiscal year 1987, the principal amount of credits provided 
under section 2763 of this title at market rates of interest with 
respect to Greece, the Republic of Korea, the Philippines, Portugal, 
Spain, Thailand, and Turkey shall (if and to the extent each country so 
desires) be repaid in not more than twenty years, following a grace 
period of ten years on repayment of principal.''
    Subsec. (d). Pub. L. 104-164, Sec. 104(b)(2)(C), struck out subsec. 
(d) which read as follows: ``The aggregate acquisition cost to the 
United States of excess defense articles ordered by the President in any 
fiscal year after fiscal year 1976 for delivery to foreign countries or 
international organizations under the authority of chapter 2 of part II 
of the Foreign Assistance Act of 1961 or pursuant to sales under this 
chapter may not exceed $250,000,000 (exclusive of ships and their 
onboard stores and supplies transferred in accordance with law, and of 
any defense articles with respect to which the President submits a 
certification under section 2776(b) of this title.).''
    1990--Subsec. (d). Pub. L. 101-513 inserted ``, and of any defense 
articles with respect to which the President submits a certification 
under section 2776(b) of this title.'' after ``law''.
    1985--Subsec. (a). Pub. L. 99-83, Sec. 101(a), substituted 
provisions authorizing appropriations of $5,371,000,000 for fiscal years 
1986 and 1987, for provisions authorizing appropriations of $800,000,000 
for fiscal years 1982 and 1983.
    Subsec. (b). Pub. L. 99-83, Sec. 101(b), amended subsec. (b) 
generally, substituting provisions relating to maximum amount of credits 
authorized for fiscal years 1986 and 1987 and maximum amounts of such 
credits available at concessional rates of interest for such years, for 
provisions relating to maximum amounts of credits (or participations in 
credits) and loans guaranteed for fiscal years 1982 and 1983, and 
credit, etc., programs with respect to specific countries.
    Subsec. (c). Pub. L. 99-83, Sec. 101(b), amended subsec. (c) 
generally, substituting provisions relating to extended repayment terms 
for credits provided for fiscal years 1986 and 1987, for provisions 
relating to funds made available for fiscal year 1984 to finance 
procurement of defense articles, etc., by Israel.
    1983--Subsec. (b)(3). Pub. L. 98-151 amended par. (3) generally, 
substituting provisions authorizing not less than $1,700,000,000 for 
fiscal year 1984 as available to Israel, of which not less than 
$850,000,000 shall be available as credits under section 2763 of this 
title, and provisions relating to availability of funds part of the 
total aggregate credit ceiling made available to Israel, for provisions 
authorizing not less than $1,400,000,000 for the fiscal years 1982 and 
1983 as available to Israel, of which not less than $550,000,000 for 
each year shall be available as credits.
    Subsec. (b)(5). Pub. L. 98-151 substituted ``1984'' for ``1982 and 
for the fiscal year 1983''.
    Subsec. (b)(6). Pub. L. 98-151 amended par. (6) generally, inserting 
provisions relating to availability to Egypt for fiscal year 1984 of not 
less than $900,000,000 of the total principal amount of loans 
guaranteed, and substituting provisions authorizing not less than 
$465,000,000 for fiscal year 1984, for provisions authorizing not less 
than $200,000,000 for fiscal years 1982 and 1983.
    Subsec. (c). Pub. L. 98-151 substituted provisions relating to 
applicability to fiscal year 1984, for provisions relating to 
applicability to fiscal years 1982 and 1983, and substituted 
``$850,000,000'' for ``$550,000,000''.
    1981--Subsec. (a). Pub. L. 97-113, Sec. 105(a), substituted 
``$800,000,000 for the fiscal year 1982 and $800,000,000 for the fiscal 
year 1983'' for ``$500,000,000 for the fiscal year 1981''.
    Subsec. (b). Pub. L. 97-113, Sec. 105(b), prescribed in par. (1) 
$800,000,000 limit on credits for fiscal years 1982 and 1983, striking 
out $500,000,000 limit for fiscal year 1981, in par. (2) $3,269,525,000 
limit on total principal amount of guaranteed loans for fiscal years 
1982 and 1983, striking out $2,616,000,000 limit for fiscal year 1981, 
and in par. (3) $1,400,000,000 minimum for Israel in fiscal years 1982 
and 1983, the same sum made available for fiscal year 1981, including 
requirement of $550,000,000 minimum of such funds for such fiscal years 
as credits under section 2763 of this title, striking out requirement 
for Israeli use of $200,000,000 of available funds only for relocation 
costs from the Sinai, and added pars. (4) to (7).
    Subsec. (c). Pub. L. 97-113, Sec. 105(c)(1)-(3), substituted 
``fiscal year 1982 and for the fiscal year 1983'' for ``fiscal year 
1981'', ``$550,000,000'' for ``$500,000,000'', and ``each such year'' 
for ``such year''.
    1980--Subsec. (a). Pub. L. 96-533, Secs. 104(d), 106(a), placed a 
limit on extension of credits and loan guaranties not to exceed amount 
established in appropriation of funds to carry out this chapter and 
substituted ``$500,000,000 for the fiscal year 1981'' for ``$673,500,000 
for the fiscal year 1980''.
    Subsec. (b). Pub. L. 96-533, Sec. 106(b), in revising subsec. (b), 
substituted par. (1) and (2) limits on amount of credits or 
participations in credits and loan guaranties for fiscal year 1981 in 
amounts of $500,000,000 and $2,616,000,000 for prior combined sum 
limited to $2,235,000,000 for fiscal year 1980 and substituted par. (3) 
earmarking minimum of $1,400,000,000 only for Israel for fiscal year 
1981, including availability of $200,000,000 for costs associated with 
relocation of Israeli forces from the Sinai for prior prescription of 
minimum sum of $1,000,000,000 as available only for Israel.
    Subsec. (c). Pub. L. 96-533, Secs. 105(b)(3), 106(c), substituted 
``defense articles, defense services, and design and construction 
services'' for ``defense articles and defense services'' in two places, 
``1981'' for ``1980'' in two places, and ``$500,000,000'' for ``one-
half''.
    1979--Subsec. (a). Pub. L. 96-92, Sec. 17(a)(1), substituted 
``$673,500,000 for the fiscal year 1980'' for ``$682,000,000 for the 
fiscal year 1978 and $674,300,000 for the fiscal year 1979''.
    Subsec. (b). Pub. L. 96-92, Sec. 17(a)(2), substituted 
``$2,235,000,000 for the fiscal year 1980, of which'' for 
``$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the 
fiscal year 1979, of which amount for each such year''.
    Subsec. (c). Pub. L. 96-92, Sec. 17(a)(3), substituted ``fiscal year 
1980'' for ``fiscal year 1979''.
    Subsec. (d). Pub. L. 96-92, Sec. 17(a)(4), substituted 
``$250,000,000'' for ``$150,000,000''.
    1978--Subsec. (a). Pub. L. 95-384, Sec. 20(a), substituted 
``$682,000,000 for the fiscal year 1978 and $674,300,000 for the fiscal 
year 1979'' for ``$677,000,000 for the fiscal year 1978''.
    Subsec. (b). Pub. L. 95-384, Sec. 20(b), substituted 
``$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the 
fiscal year 1979, of which amount for each such year'' for 
``$2,102,350,000 for the fiscal year 1978, of which''.
    Subsec. (c). Pub. L. 95-384, Sec. 20(c), substituted ``fiscal year 
1979'' for ``fiscal year 1978''.
    Subsec. (d). Pub. L. 95-384, Sec. 20(d), substituted 
``$150,000,000'' for ``$100,000,000''.
    1977--Subsec. (a). Pub. L. 95-92, Sec. 19(1), substituted 
``$677,000,000 for the fiscal year 1978'' for ``$1,039,000,000 for the 
fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 
1977''.
    Subsec. (b). Pub. L. 95-92, Sec. 19(2), substituted ``$2,102,350,000 
for the fiscal year 1978'' for ``$2,374,700,000 for the fiscal year 
1976, of which not less than $1,500,000,000 shall be available only for 
Israel, and shall not exceed $2,022,100,000 for the fiscal year 1977''.
    Subsec. (c). Pub. L. 95-92, Sec. 19(3), substituted ``year 1978'' 
for ``years 1976 and 1977'' and struck out ``each'' before ``such 
year''.
    1976--Subsec. (a). Pub. L. 94-329, Sec. 210(a), substituted 
provisions authorizing appropriations not to exceed $1,039,000,000 for 
the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 
1977, for provisions authorizing appropriations not to exceed 
$405,000,000 for the fiscal year 1975.
    Subsec. (b). Pub. L. 94-329, Sec. 210(b), substituted provisions 
setting out the foreign military sales credit ceiling of $2,374,700,000 
for the fiscal year 1976, of which not less than $1,500,000,000 shall be 
available only for Israel, and $2,022,100,000 for the fiscal year 1977, 
of which not less than $1,000,000,000 shall be available only for 
Israel, for provisions setting out such ceiling of $872,500,000 for the 
fiscal year 1975, of which amount not less than $300,000,000 shall be 
available to Israel only, and struck out provisions relating to 
obligation of $100,000,000 for financing procurement of defense articles 
and services by Israel and for release of Israel from contractual 
liability to repay United States Government for the defense article and 
services so financed.
    Subsecs. (c), (d). Pub. L. 94-329, Sec. 210(c)(1), added subsecs. 
(c) and (d).
    1974--Subsec. (a). Pub. L. 93-559, Sec. 45(a)(6), substituted 
``$405,000,000 for the fiscal year 1975'' for ``$325,000,000 for the 
fiscal year 1974''.
    Subsec. (b). Pub. L. 93-559, Sec. 45(a)(7), substituted 
``$872,500,000 for the fiscal year 1975'' for ``$730,000,000 for the 
fiscal year 1974'' and provided for obligation of $100,000,000 for 
financing procurement of defense articles and defense services by Israel 
and for release of Israel from contractual liability to repay the United 
States Government for the defense articles and defense services so 
financed.
    1973--Subsec. (a). Pub. L. 93-189, Sec. 25(5), substituted provision 
authorizing appropriation of not more than $325,000,000 for the fiscal 
year 1974, for provision authorizing appropriation of not more than 
$400,000,000 for the fiscal year 1972.
    Subsec. (b). Pub. L. 93-189, Sec. 25(6), substituted provisions 
setting out the foreign military sales credit ceiling of $730,000,000 
for the fiscal year 1974, of which amount not less than $300,000,000 
shall be made available to Israel, for provisions setting out such 
ceiling of $550,000,000 for the fiscal year 1972, of which amount not 
less than $300,000,000 shall be made available to Israel, and such 
amount to exclude credits covered by guaranties issued under section 
2764(b) of this title.
    1972--Subsec. (a). Pub. L. 92-226, Sec. 401(a), substituted 
provision authorizing appropriation of not more than $400,000,000 for 
the fiscal year 1972, for provisions authorizing appropriation of not 
more than $250,000,000 for each of the fiscal years 1970 and 1971.
    Subsec. (b). Pub. L. 92-226, Sec. 401(b), substituted provisions 
setting out the foreign military sales credit ceiling of $550,000,000 
for the fiscal year 1972, of which amount not less than $300,000,000 
shall be made available to Israel, for provisions setting out such 
ceiling of $340,000,000 for the fiscal years 1970 and 1971.
    1971--Subsec. (a). Pub. L. 91-672, Sec. 2(1), substituted provisions 
authorizing appropriation of not more than $250,000,000 for each of the 
fiscal years 1970 and 1971 for provisions authorizing appropriation of 
not more than $296,000,000 for the fiscal year 1969.
    Subsec. (b). Pub. L. 91-672, Sec. 2(2), substituted provisions 
setting out the foreign military sales credit ceiling of $340,000,000 
for the fiscal years 1970 and 1971 for provisions setting out such 
ceiling of $296,000,000 for the fiscal year 1969.


                    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.


   Ceilings on Loans for Greece, Sudan, and Turkey, Fiscal Year 1980; 
        Repayment Period; Grace Period for Repayment of Principal

    Section 17(b) of Pub. L. 96-92 provided that: ``Of the principal 
amount of loans guaranteed for the fiscal year 1980 under section 24 of 
the Arms Export Control Act [section 2764 of this title]--
        ``(1) with respect to Turkey, not to exceed $50,000,000,
        ``(2) with respect to Greece, not to exceed $42,000,000, and
        ``(3) with respect to Sudan, not to exceed $25,000,000,
shall be repaid in not less than 20 years, following a grace period of 
10 years on repayment of principal.''

                  Section Referred to in Other Sections

    This section is referred to in sections 2442, 3402 of this title.
