View all text of Subchapter I [§ 4971 - § 4975]
§ 4971. Establishment of loan guarantee program
(a)Establishment.—In order to meet the national security objectives in section 4811(a) of this title, the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or long-term lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b).
(b)Covered Countries.—The authority under subsection (a) applies with respect to the following countries:
(1) A member nation of the North Atlantic Treaty Organization (NATO).
(2) A country designated as of March 31, 1995, as a major non-NATO ally pursuant to section 2350a(i)(3) of this title, as in effect on that date.
(3) A country in Central Europe that, as determined by the Secretary of State—
(A) has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or
(B) is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government.
(4) A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.
(c)Authority Subject to Provisions of Appropriations.—The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.
(Added Pub. L. 104–106, div. A, title XIII, § 1321(a)(1), Feb. 10, 1996, 110 Stat. 475, § 2540; amended Pub. L. 108–375, div. A, title X, § 1084(d)(21), Oct. 28, 2004, 118 Stat. 2062; renumbered § 4971 and amended Pub. L. 116–283, div. A, title XVIII, §§ 1873(b), (c)(1), 1883(b)(2), Jan. 1, 2021, 134 Stat. 4290, 4294.)