§ 2771. — Military sales authorizations and ceilings.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 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.
