10 U.S.C. § 4973: Limitations

Summary

When guaranteeing medium- or long-term loans, the Secretary must not give loan deals that are better than what the Export-Import Bank of the United States would offer for similar nondefense goods and services. The government will not pay under a guarantee for losses caused by fraud or misrepresentation that the person asking for the payment is responsible for. The Secretary of Defense may not speed up a guaranteed loan or change its payment schedule and may only make payments that follow the loan’s original terms.

Title 10, §4973

Armed Forces, Source: USLM XML via OLRC

(a)Terms and Conditions of Loan Guarantees.—

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)Losses Arising From Fraud or Misrepresentation.—

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)No Right of Acceleration.—

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.

§4973 Limitations