§4973 — Title 10 Armed Forces | U.S. Code

§4973 Limitations

Title 10 › Subtitle Subtitle A— - General Military Law › Part PART V— - ACQUISITION › Subpart Subpart I— - Defense Industrial Base › Chapter CHAPTER 389— - LOAN GUARANTEE PROGRAMS › Subchapter SUBCHAPTER I— - DEFENSE EXPORT LOAN GUARANTEES › § 4973

Last updated Apr 6, 2026|Official source

Summary

When the Secretary issues a guarantee for a medium- or long-term loan, the terms must not be better than what the Export‑Import Bank would give for similar nondefense guarantees. If the loss happened because the person asking for payment committed fraud or lied, they cannot be paid. The Secretary of Defense cannot speed up the loan or change payments; any payment must follow the loan’s original schedule.

Title 10, §4973

Armed Forces — Source: USLM XML via OLRC

(a)In issuing a guarantee under this subchapter for a medium-term or long-term loan, the Secretary may not offer terms and conditions more beneficial than those that would be provided to the recipient by the Export-Import Bank of the United States under similar circumstances in conjunction with the provision of guarantees for nondefense articles and services.

(b)No payment may be made under a guarantee issued under this subchapter for a loss arising out of fraud or misrepresentation for which the party seeking payment is responsible.

(c)The Secretary of Defense may not accelerate any guaranteed loan or increment, and may not pay any amount, in respect of a guarantee issued under this subchapter, other than in accordance with the original payment terms of the loan.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Pub. L. 116–283 renumbered section 2540b of this title as this section.

Statutory Notes and Related Subsidiaries

Effective Date

of 2021 AmendmentAmendment by Pub. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Pub. L. 116–283, set out as a note preceding section 3001 of this title.