
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: 22USC2796d]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
    SUBCHAPTER VI--LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR 
              COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES
 
Sec. 2796d. Loan of materials, supplies, and equipment for 
        research and development purposes
        

(a) Loan or gift transactions; written agreement; covered programs

    (1) Except as provided in subsection (c) of this section, the 
Secretary of Defense may loan to a country that is a NATO or major non-
NATO ally materials, supplies, or equipment for the purpose of carrying 
out a program of cooperative research, development, testing, or 
evaluation. The Secretary may accept as a loan or a gift from a country 
that is a NATO or major non-NATO ally materials, supplies, or equipment 
for such purpose.
    (2) Each loan or gift transaction entered into by the Secretary 
under this section shall be provided for under the terms of a written 
agreement between the Secretary and the country concerned.
    (3) A program of testing or evaluation for which the Secretary may 
loan materials, supplies, or equipment under this section includes a 
program of testing or evaluation conducted solely for the purpose of 
standardization, interchangeability, or technical evaluation if the 
country to which the materials, supplies, or equipment are loaned agrees 
to provide the results of the testing or evaluation to the United States 
without charge.

(b) Reimbursement of consumed materials, etc.

    The materials, supplies, or equipment loaned to a country under this 
section may be expended or otherwise consumed in connection with any 
testing or evaluation program without a requirement for reimbursement of 
the United States if the Secretary--
        (1) determines that the success of the research, development, 
    test, or evaluation depends upon expending or otherwise consuming 
    the materials, supplies, or equipment loaned to the country; and
        (2) approves of the expenditure or consumption of such 
    materials, supplies, or equipment.

(c) Prohibitions

    The Secretary of Defense may not loan to a country under this 
section any material if the material is a strategic and critical 
material and if, at the time the loan is to be made, the quantity of the 
material in the National Defense Stockpile (provided for under section 
98b of title 50) is less than the quantity of such material to be 
stockpiled, as determined by the President under section 98b(a) of title 
50.

(d) ``NATO ally'' defined

    For purposes of this section, the term ``NATO ally'' means a member 
country of the North Atlantic Treaty Organization (other than the United 
States).

(Pub. L. 90-629, ch. 6, Sec. 65, as added Pub. L. 100-456, div. A, title 
X, Sec. 1003(a), Sept. 29, 1988, 102 Stat. 2038; amended Pub. L. 102-25, 
title VII, Sec. 705(d)(2), Apr. 6, 1991, 105 Stat. 120; Pub. L. 104-164, 
title I, Sec. 147(a)(3)(B), July 21, 1996, 110 Stat. 1435.)


                               Amendments

    1996--Subsec. (d). Pub. L. 104-164 struck out ``or major non-NATO'' 
after ``NATO'' and ``or a foreign country other than a member nation of 
NATO designated as a major non-NATO ally under section 2350a(i)(3) of 
title 10'' after ``(other than the United States)''.
    1991--Subsec. (d). Pub. L. 102-25 substituted ``section 2350a(i)(3) 
of title 10'' for ``section 2767a of this title''.
