View all text of Subchapter VI [§ 2796 - § 2796d]
§ 2796d. Loan of materials, supplies, and equipment for research and development purposes
(a) Loan or gift transactions; written agreement; covered programs
(1) Except as provided in subsection (c), the Secretary of Defense may loan to a country that is a NATO or major non-NATO ally materials, supplies, or equipment for the purpose of carrying out a program of cooperative research, development, testing, or evaluation. The Secretary may accept as a loan or a gift from a country that is a NATO or major non-NATO ally materials, supplies, or equipment for such purpose.
(2) Each loan or gift transaction entered into by the Secretary under this section shall be provided for under the terms of a written agreement between the Secretary and the country concerned.
(3) A program of testing or evaluation for which the Secretary may loan materials, supplies, or equipment under this section includes a program of testing or evaluation conducted solely for the purpose of standardization, interchangeability, or technical evaluation if the country to which the materials, supplies, or equipment are loaned agrees to provide the results of the testing or evaluation to the United States without charge.
(b) Reimbursement of consumed materials, etc.
The materials, supplies, or equipment loaned to a country under this section may be expended or otherwise consumed in connection with any testing or evaluation program without a requirement for reimbursement of the United States if the Secretary—
(1) determines that the success of the research, development, test, or evaluation depends upon expending or otherwise consuming the materials, supplies, or equipment loaned to the country; and
(2) approves of the expenditure or consumption of such materials, supplies, or equipment.
(c) Prohibitions
(d) “NATO ally” defined
(Pub. L. 90–629, ch. 6, § 65, as added Pub. L. 100–456, div. A, title X, § 1003(a), Sept. 29, 1988, 102 Stat. 2038; amended Pub. L. 102–25, title VII, § 705(d)(2), Apr. 6, 1991, 105 Stat. 120; Pub. L. 104–164, title I, § 147(a)(3)(B), July 21, 1996, 110 Stat. 1435.)