§2777 — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

Money received under sections 2761, 2762, and 2769, and advances under section 2763, must only be used to pay suppliers (including the military departments) or to refund purchasers. That money cannot be used to finance loans, credits, or guarantees. Repayments from foreign governments or international organizations for credits made under section 2763, proceeds from selling debt instruments under section 2764(b) (except any part that must be held as a reserve for guaranty claims under 2764(b)), and other collections like fees and interest must go into the Treasury’s miscellaneous receipts. If the reserve under section 2764(c) is used to pay a claim on a guaranteed loan, later payments from the foreign government or international organization for that claim must be put back into that reserve, merged with it, and used for any purpose the reserve allows.

Title 22, §2777

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)Cash payments received under section 2761, 2762, and 2769 of this title and advances received under section 2763 of this title shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties.

(b)Amounts received from foreign governments and international organizations as repayments for credits extended pursuant to section 2763 of this title, amounts received from the disposition of instruments evidencing indebtedness under section 2764(b) of this title (excluding such portion of the sales proceeds as may be required at the time of disposition to be obligated as a reserve for payment of claims under guaranties issued pursuant to section 2764(b) of this title, which sums are made available for such obligations), and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.

(c)Notwithstanding the provisions of subsection (b), to the extent that any of the funds constituting the reserve under section 2764(c) of this title are paid out for a claim arising out of a loan guaranteed under section 2764 of this title, amounts received from a foreign government or international organization after the date of such payment, with respect to such claim, shall be credited to such reserve, shall be merged with the funds in such reserve, and shall be available for any purpose for which funds in such reserve are available.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1980—Subsec. (a). Pub. L. 96–533, § 105(e)(1), inserted reference to section 2769 of this title. Subsec. (c). Pub. L. 96–533, § 104(b), added subsec. (c). 1973—Subsec. (b). Pub. L. 93–189 inserted provisions relating to indebtedness under section 2764(b) of this title and exclusions of portions of the sales proceeds required at the time of disposition as a reserve for payment of claims under guaranties issued under section 2764(b) of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title.

§2777 Fiscal provisions relating to foreign military sales credits