22 U.S.C. § 2777 — Fiscal provisions relating to foreign military sales credits

(a) Permissible uses of cash payments under sections 2761, 2762, 2763, and 2769. Cash payments received under sections 2761, 2762, and 2769 of this title, and advances received under section 2763 of this title, may be used only to pay suppliers, including the military departments, and to refund purchasers. They may not be used to finance credits or guaranties.

(b) Transfer of funds to miscellaneous receipts of Treasury. Amounts received from foreign governments and international organizations as repayments for credits extended under section 2763 of this title, amounts received from disposing of instruments that show indebtedness under section 2764(b) of this title, and other collections, including fees and interest, must be transferred to the Treasury’s miscellaneous receipts. This does not include the part of the sales proceeds that may be required at the time of disposition to be obligated as a reserve for paying claims under guaranties issued under section 2764(b) of this title. Those reserved sums are available for those obligations.

(c) Credit of funds to reserve under section 2764(c). Despite subsection (b), if any funds in the reserve under section 2764(c) of this title are paid out for a claim arising from a loan guaranteed under section 2764 of this title, amounts received from a foreign government or international organization after that payment, concerning that claim, must be credited to the reserve. Those amounts must be combined with the reserve’s other funds and may be used for any purpose for which the reserve’s funds are available.