22 U.S.C. § 2764 — Guaranties
submitted 58 years ago by Pub. L. 90-629 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 347 words · no verdicts yet
The President may guarantee certain United States businesses and entities against political and credit risks when they finance credit sales of defense-related items and services to friendly recipients. The section also permits sales and guarantees of recipient promissory notes and establishes rules for the guaranty reserve.
(a) Guarantees against nonpayment risks. The President may guarantee an individual, corporation, partnership, or other juridical entity doing business in the United States against political and credit risks of nonpayment arising from financing credit sales of defense articles, defense services, and design and construction services to friendly countries and international organizations. United States Government agencies are excluded, except the Federal Financing Bank. Fees must be charged for these guarantees. (b) Promissory notes. The President may sell to such an individual, corporation, partnership, or entity, with the same Federal-agency exclusion, promissory notes issued by friendly countries and international organizations as evidence of their repayment obligations to the United States for credit sales financed under section 2763. The President may guarantee payment of those notes. (c) Guaranty Reserve Fund and claims. Funds obligated under this section before December 16, 1980, that make up one reserve for paying claims under guarantees issued here may remain available for this section after that date. On or after August 8, 1985, that reserve may be called the “Guaranty Reserve Fund.” Funds provided for necessary expenses under sections 2763 and 2311 may pay claims when the Fund does not have enough money. For any law that prohibits or limits the availability of funds under this chapter, whenever a guarantee is issued, the guaranteed loan's principal amount is treated as funds made available for use under this chapter. Every guarantee issued under this section is backed by the full faith and credit of the United States.
The President may guarantee any individual, corporation, partnership, or other juridical entity doing business in the United States (excluding United States Government agencies other than the Federal Financing Bank) against political and credit risks of nonpayment arising out of their financing of credit sales of defense articles, defense services, and design and construction services to friendly countries and international organizations. Fees shall be charged for such guaranties.
The President may sell to any individual, corporation, partnership, or other juridical entity (excluding United States Government agencies other than the Federal Financing Bank) promissory notes issued by friendly countries and international organizations as evidence of their obligations to make repayments to the United States on account of credit sales financed under section 2763 of this title, and may guarantee payment thereof.
Funds obligated under this section before December 16, 1980, which constitute a single reserve for the payment of claims under guaranties issued under this section shall remain available for expenditure for the purposes of this section on and after that date. That single reserve may, on and after August 8, 1985, be referred to as the “Guaranty Reserve Fund”. Funds provided for necessary expenses to carry out the provisions of section 2763 of this title and of section 2311 of this title may be used to pay claims on the Guaranty Reserve Fund to the extent that funds in the Guaranty Reserve Fund are inadequate for that purpose. For purposes of any provision in this chapter or any other Act relating to a prohibition or limitation on the availability of funds under this chapter, whenever a guaranty is issued under this section, the principal amount of the loan so guaranteed shall be deemed to be funds made available for use under this chapter. Any guaranties issued hereunder shall be backed by the full faith and credit of the United States.
Source credit: (Pub. L. 90–629, ch. 2, § 24, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 93–189, § 25(4), Dec. 17, 1973, 87 Stat. 730; Pub. L. 93–559, § 45(a)(3), (4), Dec. 30, 1974, 88 Stat. 1814; Pub. L. 96–533, title I, §§ 104(a), 105(b)(3), Dec. 16, 1980, 94 Stat. 3132, 3134; Pub. L. 99–83, title I, § 106(b), (c), Aug. 8, 1985, 99 Stat. 196; Pub. L. 100–71, title I, July 11, 1987, 101 Stat. 409.)
- 1968Enacted · Pub. L. 90-629 · 82 Stat. 1324
- 1973Amended · Pub. L. 93-189 · 87 Stat. 730
- 1974Amended · Pub. L. 93-559 · 88 Stat. 1814
- 1980Amended · Pub. L. 96-533 · 94 Stat. 3132, 3134
- 1985Amended · Pub. L. 99-83 · 99 Stat. 196
- 1987Amended · Pub. L. 100-71 · 101 Stat. 409
A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-629 on 1968-10-22.
all 0 arguments · sorted by: best
no arguments yet — make the first case