§ 2796. — Leasing authority.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2796]
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. 2796. Leasing authority
(a) Preconditions
The President may lease defense articles in the stocks of the
Department of Defense to an eligible foreign country or international
organization if--
(1) he determines that there are compelling foreign policy and
national security reasons for providing such articles on a lease
basis rather than on a sales basis under this chapter;
(2) he determines that the articles are not for the time needed
for public use;
(3) the President first considers the effects of the lease of
the articles on the national technology and industrial base,
particularly the extent, if any, to which the lease reduces the
opportunities of entities in the national technology and industrial
base to sell new equipment to the country or countries to which the
articles are leased; and
(4) the country or international organization has agreed to pay
in United States dollars all costs incurred by the United States
Government in leasing such articles, including reimbursement for
depreciation of such articles while leased, the costs of restoration
or replacement if the articles are damaged while leased, and, if the
articles are lost or destroyed while leased--
(A) in the event the United States intends to replace the
articles lost or destroyed, the replacement cost (less any
depreciation in the value) of the articles; or
(B) in the event the United States does not intend to
replace the articles lost or destroyed, an amount not less than
the actual value (less any depreciation in the value) specified
in the lease agreement.
The requirement of paragraph (4) shall not apply to leases entered into
for purposes of cooperative research or development, military exercises,
or communications or electronics interface projects. The President may
waive the requirement of paragraph (4) for reimbursement of depreciation
for any defense article which has passed three-quarters of its normal
service life if the President determines that to do so is important to
the national security interest of the United States. The President may
waive the requirement of paragraph (4) with respect to a lease which is
made in exchange with the lessee for a lease on substantially reciprocal
terms of defense articles for the Department of Defense, except that
this waiver authority--
(A) may be exercised only if the President submits to the
Committee on Foreign Affairs and the Committee on Appropriations of
the House of Representatives and the Committee on Foreign Relations
and the Committee on Appropriations of the Senate, in accordance
with the regular notification procedures of those Committees, a
detailed notification for each lease with respect to which the
authority is exercised; and
(B) may be exercised only during the fiscal year \1\ the current
fiscal year and only with respect to one country, unless the
Congress hereafter provides otherwise.
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\1\ So in original. The words ``the fiscal year'' probably should
not appear.
The preceding sentence does not constitute authorization of
appropriations for payments by the United States for leased articles.
(b) Duration; termination
(1) Each lease agreement under this section shall be for a fixed
duration which may not exceed (A) five years, and (B) a specified period
of time required to complete major refurbishment work of the leased
articles to be performed prior to the delivery of the leased articles,
and shall provide that, at any time during the duration of the lease,
the President may terminate the lease and require the immediate return
of the leased articles.
(2) In this subsection, the term ``major refurbishment work'' means
work for which the period of performance is 6 months or more.
(c) Applicable statutory authorities
Defense articles in the stocks of the Department of Defense may be
leased or loaned to a foreign country or international organization only
under the authority of this subchapter or chapter 2 of part II of the
Foreign Assistance Act of 1961 [22 U.S.C. 2311 et seq.], and may not be
leased to a foreign country or international organization under the
authority of section 2667 of title 10.
(Pub. L. 90-629, ch. 6, Sec. 61, as added Pub. L. 97-113, title I,
Sec. 109(a), Dec. 29, 1981, 95 Stat. 1524; amended Pub. L. 99-500,
Sec. 147, Oct. 18, 1986, 100 Stat. 1783-351, and Pub. L. 99-591,
Sec. 147, Oct. 30, 1986, 100 Stat. 3341-354; Pub. L. 100-202,
Sec. 101(e) [title V, Sec. 556], Dec. 22, 1987, 101 Stat. 1329-131,
1329-170; Pub. L. 100-461, title V, Sec. 552, Oct. 1, 1988, 102 Stat.
2268-35; Pub. L. 101-167, title V, Sec. 550, Nov. 21, 1989, 103 Stat.
1235; Pub. L. 101-513, title V, Sec. 546, Nov. 5, 1990, 104 Stat. 2019;
Pub. L. 102-145, Sec. 118, as added Pub. L. 102-266, Sec. 102, Apr. 1,
1992, 106 Stat. 93; Pub. L. 102-391, title V, Sec. 544, Oct. 6, 1992,
106 Stat. 1672; Pub. L. 103-87, title V, Sec. 524, Sept. 30, 1993, 107
Stat. 952; Pub. L. 103-236, title VII, Sec. 731(e), Apr. 30, 1994, 108
Stat. 503; Pub. L. 103-306, title V, Sec. 524, Aug. 23, 1994, 108 Stat.
1632; Pub. L. 104-107, title V, Sec. 524, Feb. 12, 1996, 110 Stat. 729;
Pub. L. 104-164, title I, Secs. 146, 153(a), July 21, 1996, 110 Stat.
1434, 1440; Pub. L. 104-208, div. A, title I, Sec. 101(c) [title V,
Sec. 524], Sept. 30, 1996, 110 Stat. 3009-121, 3009-149; Pub. L. 105-
118, title V, Sec. 524, Nov. 26, 1997, 111 Stat. 2412; Pub. L. 105-277,
div. A, Sec. 101(d) [title V, Sec. 524], Oct. 21, 1998, 112 Stat. 2681-
150, 2681-177; Pub. L. 107-228, div. B, title XII, Sec. 1233, Sept. 30,
2002, 116 Stat. 1433.)
References in Text
The Foreign Assistance Act of 1961, referred to in subsec. (c), is
Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended. Chapter 2 of
part II of that Act is classified generally to part II (Sec. 2311 et
seq.) of subchapter II of this chapter. For complete classification of
this Act to the Code, see Short Title note set out under section 2151 of
this title and Tables.
Codification
Amendment by Pub. L. 102-145 is based on section 545 of H.R. 2621,
One Hundred Second Congress, 1st Session, as passed by the House of
Representatives on June 19, 1991, which was enacted into law by Pub. L.
102-145, Sec. 118, as added by Pub. L. 102-266, Sec. 102, Apr. 1, 1992,
106 Stat. 93. Section 118 of Pub. L. 102-145 provided that the authority
and conditions provided in such section 545 shall be applicable to funds
appropriated by Pub. L. 102-145 (and are hereby enacted) in lieu of the
authority and conditions provided in section 546 of Pub. L. 101-513. See
1990, 1991, and 1992 Amendment notes below.
Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
Amendments
2002--Subsec. (b). Pub. L. 107-228 designated existing provisions as
par. (1), substituted ``which may not exceed (A) five years, and (B) a
specified period of time required to complete major refurbishment work
of the leased articles to be performed prior to the delivery of the
leased articles,'' for ``of not to exceed five years'', and added par.
(2).
1998--Subsec. (a). Pub. L. 105-277 substituted ``the current fiscal
year'' for ``1998'' in par. (B).
1997--Subsec. (a). Pub. L. 105-118 substituted ``1998'' for ``1997''
in par. (B).
1996--Subsec. (a). Pub. L. 104-164, Sec. 153(a), struck out ``, or
to any defense article which has passed three-quarters of its normal
service life.'' after ``electronics interface projects'' in second
sentence and inserted after second sentence ``The President may waive
the requirement of paragraph (4) for reimbursement of depreciation for
any defense article which has passed three-quarters of its normal
service life if the President determines that to do so is important to
the national security interest of the United States.''
Pub. L. 104-208 substituted ``1997'' for ``1996'' in par. (B).
Pub. L. 104-107 substituted ``1996'' for ``1995'' in par. (B).
Subsec. (a)(4). Pub. L. 104-164, Sec. 146, substituted ``and, if the
articles are lost or destroyed while leased--
``(A) in the event the United States intends to replace the
articles lost or destroyed, the replacement cost (less any
depreciation in the value) of the articles; or
``(B) in the event the United States does not intend to replace
the articles lost or destroyed, an amount not less than the actual
value (less any depreciation in the value) specified in the lease
agreement'' for ``and the replacement cost (less any depreciation in
the value) of the articles if the articles are lost or destroyed
while leased''.
1994--Subsec. (a). Pub. L. 103-306 substituted ``1995'' for ``1994''
in par. (B).
Pub. L. 103-236 struck out ``and'' at end of par. (2), added par.
(3), redesignated former par. (3) as (4), and substituted ``paragraph
(4)'' for ``paragraph (3)'' in two places in provisions following par.
(4).
1993--Subsec. (a). Pub. L. 103-87 substituted ``1994'' for ``1993''
in par. (B).
1992--Subsec. (a). Pub. L. 102-391 substituted ``1993'' for ``1992''
in par. (B).
Pub. L. 102-266 added Pub. L. 102-145, Sec. 118. See 1991 Amendment
note below.
1991--Subsec. (a). Pub. L. 102-145, Sec. 118, as added by Pub. L.
102-266, substituted ``1992'' for ``1991'' in par. (B). See Codification
note above.
1990--Subsec. (a). Pub. L. 101-513 substituted ``1991'' for ``1990''
in par. (B).
1989--Subsec. (a). Pub. L. 101-167 substituted ``1990'' for ``1989''
in par. (B).
1988--Subsec. (a). Pub. L. 100-461 substituted ``1989'' for ``1988''
in par. (B).
1987--Subsec. (a). Pub. L. 100-202 substituted ``1988'' for ``1987''
in par. (B).
1986--Subsec. (a). Pub. L. 99-500 and Pub. L. 99-591 inserted
provision authorizing the President to waive the requirements of par.
(3) with respect to a lease which is made in exchange with the lessee
for a lease on substantially reciprocal terms of defense articles for
the Department of Defense and providing exceptions to such waiver
authority.
Change of Name
Committee on Foreign Affairs of House of Representatives treated as
referring to Committee on International Relations of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.
Effective Date of 1996 Amendment
Section 153(b) of Pub. L. 104-164 provided that: ``The third
sentence of section 61(a) of the Arms Export Control Act, as added by
subsection (a)(2) [22 U.S.C. 2796(a)], shall apply only with respect to
a defense article leased on or after the date of the enactment of this
Act [July 21, 1996].''
Delegation of Functions
Functions of President under this section delegated to Secretary of
Defense by section 1(r) of Ex. Ord. No. 11958, Jan. 18, 1977, 42 F.R.
4311, as amended, set out as a note under section 2751 of this title.
Section Referred to in Other Sections
This section is referred to in section 2291c of this title.
