22 U.S.C. § 2763 — Credit sales

(a) Financing procurement. The President may finance friendly foreign countries' and international organizations' procurement of defense articles, defense services, and design and construction services on terms and conditions consistent with this section. Subject to regular notification requirements of the Appropriations Committees, this authority may finance Israel's and Egypt's leasing, including leasing with an option to buy, of defense articles from United States commercial suppliers. It may not finance Major Defense Equipment, except helicopters and other aircraft with possible civilian uses. The President must decide that compelling foreign-policy or national-security reasons require commercial leasing instead of a government-to-government sale under this chapter. (b) Repayment period. The President must require repayment in United States dollars within no more than 12 years after the United States Government signs the loan agreement with the country or organization, unless a statute specifically allows that recipient a longer period. (c) Interest and definitions. (1) The President must charge interest at a chosen rate, but not less than 5 percent per year. (2) For financing under this section: (A) “concessional rate of interest” means an interest rate below market rates; and (B) “market rate of interest” means a rate equal to or above the current average interest rate, on the last day of the month before financing, that the United States Government pays on marketable obligations of comparable maturity. (d) Participations in credits. When a law refers to credits extended under this section, it is treated as also referring to participations in those credits. This section does not define the quoted term “participations in credits.” (e) Payments on earlier credits or loans. (1) A foreign country may use funds made available under this section to pay principal and interest it owes the United States Government on earlier credits under this section or earlier loans guaranteed under section 2764, subject to paragraph (2). (2) Those funds may not be used to prepay that principal or interest under paragraph (1). (f) Audits of private firms. Each fiscal year, at the request of the Defense Security Assistance Agency Director, the Secretary of Defense must audit, without reimbursement, private firms that have contracts with foreign governments to procure defense articles, defense services, or design and construction services for those governments using financing under this section. (g) Cash-flow-financing notifications. (1) For each country or organization approved for cash-flow financing under this section, any letter of offer and acceptance or other purchase agreement, and any amendment, for more than $100,000,000 of defense articles, services, or design and construction services financed wholly or partly with funds under this chapter or the Foreign Assistance Act of 1961 must be sent to the congressional committees specified in section 634A(a) of that Act using that section's reprogramming-notification procedures. (2) “Cash flow financing” has the meaning in section 2765(d). (h) Limit on direct commercial contracts. Of the amounts made available in a fiscal year under this section, no more than $100,000,000 may be made available that year for countries other than Israel and Egypt to finance procurement of articles, services, and design and construction services not sold by the United States Government under this chapter.