§2777 Fiscal Provisions Relating to Foreign Military Sales Credits

Summary

Cash payments under sections 2761, 2762, and 2769, and advances under 2763, must be used only to pay suppliers (including the military departments) or to refund buyers. They cannot be used to fund credits or guarantees. Money repaid by foreign governments or international organizations for credits under 2763, proceeds from selling debt instruments under 2764(b) (except the part kept as a reserve for guaranty claims), and other collections like fees and interest must be sent to the Treasury’s miscellaneous receipts. If the reserve under 2764(c) is paid out to cover a claim on a loan guaranteed under 2764, then any amounts received from a foreign government or international organization after that payment for that claim must be put back into that reserve, merged with it, and used the same way as other reserve funds.