Title 22Foreign Relations and IntercourseRelease 119-73

§2796d Loan of materials, supplies, and equipment for research and development purposes

Title 22 › Chapter CHAPTER 39— - ARMS EXPORT CONTROL › Subchapter SUBCHAPTER VI— - LEASES OF DEFENSE ARTICLES AND LOAN AUTHORITY FOR COOPERATIVE RESEARCH AND DEVELOPMENT PURPOSES › § 2796d

Last updated Apr 6, 2026|Official source

Summary

The Secretary of Defense can lend materials, supplies, or equipment to a NATO or major non‑NATO ally for joint research, development, testing, or evaluation. The Secretary can also accept the same kinds of items as gifts from those allies. Every loan or gift must be written down in an agreement. Testing done only to standardize or check interchangeability is allowed if the ally gives the test results to the United States at no cost. Items lent may be used up or destroyed without paying the United States back if the Secretary decides it is needed and approves it. The Secretary must not lend strategic and critical materials when the National Defense Stockpile is below the level the President requires under section 98b of title 50. A “NATO ally” means a NATO member country other than the United States.

Full Legal Text

Title 22, §2796d

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)(1)Except as provided in subsection (c), 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)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)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)For purposes of this section, the term “NATO ally” means a member country of the North Atlantic Treaty Organization (other than the United States).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

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”.

Reference

Citations & Metadata

Citation

22 U.S.C. § 2796d

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73