§ 2763.
(a)
Financing procurement of defense articles and services, and design and construction services
The President is authorized to finance the procurement of defense articles, defense services, and design and construction services by friendly foreign countries and international organizations, on such terms and conditions as he may determine consistent with the requirements of this section. Notwithstanding any other provision of law, and subject to the regular notification requirements of the Committees on Appropriations, the authority of this section may be used to provide financing to Israel and Egypt for the procurement by leasing (including leasing with an option to purchase) of defense articles from United States commercial suppliers, not including Major Defense Equipment (other than helicopters and other types of aircraft having possible civilian application), if the President determines that there are compelling foreign policy or national security reasons for those defense articles being provided by commercial lease rather than by government-to-government sale under this chapter.
(c)
Interest rate; definitions
(1)
The President shall charge interest under this section at such rate as he may determine, except that such rate may not be less than 5 percent per year.
(2)
For purposes of financing provided under this section—
(A)
the term “concessional rate of interest” means any rate of interest which is less than market rates of interest; and
(B)
the term “market rate of interest” means any rate of interest which is equal to or greater than the current average interest rate (as of the last day of the month preceding the financing of the procurement under this section) that the United States Government pays on outstanding marketable obligations of comparable maturity.
(f)
Audit of certain private firms
For each fiscal year, the Secretary of Defense, as requested by the Director of the Defense Security Assistance Agency, shall conduct audits on a nonreimbursable basis of private firms that have entered into contracts with foreign governments under which defense articles, defense services, or design and construction services are to be procured by such firms for such governments from financing under this section.
(h)
Limitation on use of funds for direct commercial contracts
Of the amounts made available for a fiscal year to carry out this section, not more than $100,000,000 for such fiscal year may be made available for countries other than Israel and Egypt for the purpose of financing the procurement of defense articles, defense services, and design and construction services that are not sold by the United States Government under this chapter.
([Pub. L. 90–629], ch. 2, § 23, Oct. 22, 1968, [82 Stat. 1324]; [Pub. L. 93–559, § 45(a)(2)], Dec. 30, 1974, [88 Stat. 1813]; [Pub. L. 94–329, title II, § 208(a)], June 30, 1976, [90 Stat. 739]; [Pub. L. 96–533, title I, § 105(b)(3)], Dec. 16, 1980, [94 Stat. 3134]; [Pub. L. 99–83, title I, § 102], Aug. 8, 1985, [99 Stat. 195]; [Pub. L. 100–202, § 101(e) [title V, § 572]], Dec. 22, 1987, [101 Stat. 1329–131], 1329–176; [Pub. L. 101–513, title V, § 580], Nov. 5, 1990, [104 Stat. 2045]; [Pub. L. 104–164, title I, § 102(a)]–(c), July 21, 1996, [110 Stat. 1422].)