Title 10 — Armed ForcesRelease 119-73not60
§4973 Limitations
Title 10 › Subtitle Subtitle A— General Military Law › Part V— ACQUISITION › Subpart I— Defense Industrial Base › Chapter 389— LOAN GUARANTEE PROGRAMS › Subchapter I— DEFENSE EXPORT LOAN GUARANTEES › § 4973
Summary
When the Secretary guarantees a medium-term or long-term loan, the terms cannot be better than what the Ex‑Im Bank would offer for similar nondefense deals. No payment is allowed for losses from fraud or false statements by the person asking, and the Defense Secretary may not speed up or change the loan’s original payment terms.
Full Legal Text
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.
Legislative History
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.
Reference
Citations & Metadata
Citation
10 U.S.C. § 4973
Title 10 — Armed Forces
Last Updated
Apr 3, 2026
Release point: 119-73not60