22 U.S.C. § 2771 — Military sales authorizations and ceilings

Page 1227 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2771 sold, pursuant to subsection (a) of this section only if (1) the end item to which the articles apply is to be procured for the armed forces of a friendly country or international organiza- tion, (2) the articles would be supplied to the prime contractor as government-furnished equipment or materials if the end item were being procured for the use of the United States Armed Forces, and (3) the articles and services are available only from United States Govern- ment sources or are not available to the prime contractor directly from United States commer- cial sources at such times as may be required to meet the prime contractor’s delivery schedule. (c) ‘‘Defense articles’’ and ‘‘defense services’’ de- fined For the purpose of this section, the terms ‘‘de- fense articles’’ and ‘‘defense services’’ mean de- fense articles and defense services as defined in section 2794(3) and (4) of this title. (Pub. L. 90–629, ch. 2B, § 30, as added Pub. L. 97–392, § 1, Dec. 29, 1982, 96 Stat. 1962; amended Pub. L. 101–165, title IX, § 9097, Nov. 21, 1989, 103 Stat. 1150.) Editorial Notes AMENDMENTS 1989—Subsec. (a). Pub. L. 101–165 inserted ‘‘either (i)’’ after ‘‘such a company’’ in first sentence and inserted before period at end of first sentence ‘‘or (ii) in the case of ammunition parts subject to subsection (b) of this section, using commercial practices which restrict ac- tual delivery directly to a friendly foreign country or international organization pursuant to approval under section 2778 of this title’’. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of the President under this section, see section 1(d) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as a note under section 2751 of this title. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637. SUBCHAPTER II–C—EXCHANGE OF TRAINING AND RELATED SUPPORT § 2770a. Exchange of training and related sup- port (a) Authorization; eligibility; scope Subject to subsection (b), the President may provide training and related support to military and civilian defense personnel of a friendly for- eign country or an international organization. Such training and related support shall be pro- vided by a Secretary of a military department and may include the provision of transportation, food services, health services, and logistics and the use of facilities and equipment. (b) Reciprocal arrangements; reimbursement Training and related support may be provided under this section only pursuant to an agree- ment or other arrangement providing for the provision by the recipient foreign country or international organization, on a reciprocal basis, of comparable training and related sup- port to military and civilian personnel under the jurisdiction of the Secretary of the military department providing the training and related support under this section. Such reciprocal training and related support must be provided within a reasonable period of time (which may not be more than one year) of the provision of training and related support by the United States. To the extent that a foreign country or international organization to which training and related support is provided under this sec- tion does not provide such comparable training and related support to the United States within a reasonable period of time, that country or international organization shall be required to reimburse the United States for the full costs of the training and related support provided by the United States. (c) Regulations Training and related support under this sec- tion shall be provided under regulations pre- scribed by the President. (d) Report to Congress Not later than February 1 of each year, the President shall submit to the Congress a report on the activities conducted pursuant to this sec- tion during the preceding fiscal year, including the estimated full costs of the training and re- lated support provided by the United States to each country and international organization and the estimated value of the training and related support provided to the United States by that country or international organization. (Pub. L. 90–629, ch. 2C, § 30A, as added Pub. L. 99–83, title I, § 116, Aug. 8, 1985, 99 Stat. 201.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as an Effective Date of 1985 Amend- ment note under section 2151–1 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of the President under this section, see section 1(d) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as a note under section 2751 of this title. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637. SUBCHAPTER III—MILITARY EXPORT CONTROLS § 2771. Military sales authorizations and ceilings (a) Authorization for foreign military sales credit and guarantee program There are authorized to be appropriated to the President to carry out this chapter $5,371,000,000 for fiscal year 1986 and $5,371,000,000 for fiscal year 1987. Credits may not be extended under section 2763 of this title in an amount, and loans may not be guaranteed under section 2764(a) of this title in a principal amount, which exceeds any maximum amount which may be established with respect to such credits or such loan guaran- Page 1228 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2771 tees in legislation appropriating funds to carry out this chapter. Unobligated balances of funds made available pursuant to this section are hereby authorized to be continued available by appropriations legislation to carry out this chapter. (b) Aggregate ceilings on credit sales; avail- ability at concessional rates of interest (1) The total amount of credits extended under section 2763 of this title shall not exceed $5,371,000,000 for fiscal year 1986 and $5,371,000,000 for fiscal year 1987. (2) Of the aggregate amount of financing pro- vided under this section, not more than $553,900,000 for fiscal year 1986 and not more than $553,900,000 for fiscal year 1987 may be made available at concessional rates of interest. If a country is released from its contractual liability to repay the United States Government with re- spect to financing provided under this section, such financing shall not be considered to be fi- nancing provided at concessional rates of inter- est for purposes of the limitation established by this paragraph. (c) Interest rates Loans available under section 2763 of this title shall be provided at rates of interest that are not less than the current average market yield on outstanding marketable obligations of the United States of comparable maturities. (Pub. L. 90–629, ch. 3, § 31, Oct. 22, 1968, 82 Stat. 1324; Pub. L. 91–672, § 2, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 92–226, pt. IV, § 401(a), (b), Feb. 7, 1972, 86 Stat. 32; Pub. L. 93–189, § 25(5), (6), Dec. 17, 1973, 87 Stat. 730; Pub. L. 93–559, § 45(a)(6), (7), Dec. 30, 1974, 88 Stat. 1815; Pub. L. 94–329, title II, § 210(a)–(c)(1), June 30, 1976, 90 Stat. 740; Pub. L. 95–92, § 19, Aug. 4, 1977, 91 Stat. 623; Pub. L. 95–384, § 20, Sept. 26, 1978, 92 Stat. 741; Pub. L. 96–92, § 17(a), Oct. 29, 1979, 93 Stat. 708; Pub. L. 96–533, title I, §§ 104(d), 105(b)(3), 106(a)–(c), Dec. 16, 1980, 94 Stat. 3133–3136; Pub. L. 97–113, title I, § 105, Dec. 29, 1981, 95 Stat. 1521; Pub. L. 98–151, § 101(b)(2), Nov. 14, 1983, 97 Stat. 969, 970; Pub. L. 99–83, title I, § 101(a), (b), Aug. 8, 1985, 99 Stat. 193; Pub. L. 101–513, title V, § 596(c), Nov. 5, 1990, 104 Stat. 2062; Pub. L. 104–164, title I, §§ 101, 104(b)(2)(C), July 21, 1996, 110 Stat. 1422, 1427.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (a), was in the original ‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables. AMENDMENTS 1996—Subsec. (c). Pub. L. 104–164, § 101, amended sub- sec. (c) generally. Prior to amendment, subsec. (c) read as follows: ‘‘For fiscal year 1986 and fiscal year 1987, the principal amount of credits provided under section 2763 of this title at market rates of interest with respect to Greece, the Republic of Korea, the Philippines, Por- tugal, Spain, Thailand, and Turkey shall (if and to the extent each country so desires) be repaid in not more than twenty years, following a grace period of ten years on repayment of principal.’’ Subsec. (d). Pub. L. 104–164, § 104(b)(2)(C), struck out subsec. (d) which read as follows: ‘‘The aggregate acqui- sition cost to the United States of excess defense arti- cles ordered by the President in any fiscal year after fiscal year 1976 for delivery to foreign countries or international organizations under the authority of chapter 2 of part II of the Foreign Assistance Act of 1961 or pursuant to sales under this chapter may not ex- ceed $250,000,000 (exclusive of ships and their onboard stores and supplies transferred in accordance with law, and of any defense articles with respect to which the President submits a certification under section 2776(b) of this title.).’’ 1990—Subsec. (d). Pub. L. 101–513 inserted ‘‘, and of any defense articles with respect to which the Presi- dent submits a certification under section 2776(b) of this title.’’ after ‘‘law’’. 1985—Subsec. (a). Pub. L. 99–83, § 101(a), substituted provisions authorizing appropriations of $5,371,000,000 for fiscal years 1986 and 1987, for provisions authorizing appropriations of $800,000,000 for fiscal years 1982 and 1983. Subsec. (b). Pub. L. 99–83, § 101(b), amended subsec. (b) generally, substituting provisions relating to max- imum amount of credits authorized for fiscal years 1986 and 1987 and maximum amounts of such credits avail- able at concessional rates of interest for such years, for provisions relating to maximum amounts of credits (or participations in credits) and loans guaranteed for fis- cal years 1982 and 1983, and credit, etc., programs with respect to specific countries. Subsec. (c). Pub. L. 99–83, § 101(b), amended subsec. (c) generally, substituting provisions relating to extended repayment terms for credits provided for fiscal years 1986 and 1987, for provisions relating to funds made available for fiscal year 1984 to finance procurement of defense articles, etc., by Israel. 1983—Subsec. (b)(3). Pub. L. 98–151 amended par. (3) generally, substituting provisions authorizing not less than $1,700,000,000 for fiscal year 1984 as available to Israel, of which not less than $850,000,000 shall be avail- able as credits under section 2763 of this title, and pro- visions relating to availability of funds part of the total aggregate credit ceiling made available to Israel, for provisions authorizing not less than $1,400,000,000 for the fiscal years 1982 and 1983 as available to Israel, of which not less than $550,000,000 for each year shall be available as credits. Subsec. (b)(5). Pub. L. 98–151 substituted ‘‘1984’’ for ‘‘1982 and for the fiscal year 1983’’. Subsec. (b)(6). Pub. L. 98–151 amended par. (6) gen- erally, inserting provisions relating to availability to Egypt for fiscal year 1984 of not less than $900,000,000 of the total principal amount of loans guaranteed, and substituting provisions authorizing not less than $465,000,000 for fiscal year 1984, for provisions author- izing not less than $200,000,000 for fiscal years 1982 and 1983. Subsec. (c). Pub. L. 98–151 substituted provisions re- lating to applicability to fiscal year 1984, for provisions relating to applicability to fiscal years 1982 and 1983, and substituted ‘‘$850,000,000’’ for ‘‘$550,000,000’’. 1981—Subsec. (a). Pub. L. 97–113, § 105(a), substituted ‘‘$800,000,000 for the fiscal year 1982 and $800,000,000 for the fiscal year 1983’’ for ‘‘$500,000,000 for the fiscal year 1981’’. Subsec. (b). Pub. L. 97–113, § 105(b), prescribed in par. (1) $800,000,000 limit on credits for fiscal years 1982 and 1983, striking out $500,000,000 limit for fiscal year 1981, in par. (2) $3,269,525,000 limit on total principal amount of guaranteed loans for fiscal years 1982 and 1983, strik- ing out $2,616,000,000 limit for fiscal year 1981, and in par. (3) $1,400,000,000 minimum for Israel in fiscal years 1982 and 1983, the same sum made available for fiscal year 1981, including requirement of $550,000,000 min- imum of such funds for such fiscal years as credits under section 2763 of this title, striking out require- ment for Israeli use of $200,000,000 of available funds only for relocation costs from the Sinai, and added pars. (4) to (7). Subsec. (c). Pub. L. 97–113, § 105(c)(1)–(3), substituted ‘‘fiscal year 1982 and for the fiscal year 1983’’ for ‘‘fiscal Page 1229 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2771 year 1981’’, ‘‘$550,000,000’’ for ‘‘$500,000,000’’, and ‘‘each such year’’ for ‘‘such year’’. 1980—Subsec. (a). Pub. L. 96–533, §§ 104(d), 106(a), placed a limit on extension of credits and loan guaran- ties not to exceed amount established in appropriation of funds to carry out this chapter and substituted ‘‘$500,000,000 for the fiscal year 1981’’ for ‘‘$673,500,000 for the fiscal year 1980’’. Subsec. (b). Pub. L. 96–533, § 106(b), in revising subsec. (b), substituted par. (1) and (2) limits on amount of credits or participations in credits and loan guaranties for fiscal year 1981 in amounts of $500,000,000 and $2,616,000,000 for prior combined sum limited to $2,235,000,000 for fiscal year 1980 and substituted par. (3) earmarking minimum of $1,400,000,000 only for Israel for fiscal year 1981, including availability of $200,000,000 for costs associated with relocation of Israeli forces from the Sinai for prior prescription of minimum sum of $1,000,000,000 as available only for Israel. Subsec. (c). Pub. L. 96–533, §§ 105(b)(3), 106(c), sub- stituted ‘‘defense articles, defense services, and design and construction services’’ for ‘‘defense articles and de- fense services’’ in two places, ‘‘1981’’ for ‘‘1980’’ in two places, and ‘‘$500,000,000’’ for ‘‘one-half’’. 1979—Subsec. (a). Pub. L. 96–92, § 17(a)(1), substituted ‘‘$673,500,000 for the fiscal year 1980’’ for ‘‘$682,000,000 for the fiscal year 1978 and $674,300,000 for the fiscal year 1979’’. Subsec. (b). Pub. L. 96–92, § 17(a)(2), substituted ‘‘$2,235,000,000 for the fiscal year 1980, of which’’ for ‘‘$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the fiscal year 1979, of which amount for each such year’’. Subsec. (c). Pub. L. 96–92, § 17(a)(3), substituted ‘‘fiscal year 1980’’ for ‘‘fiscal year 1979’’. Subsec. (d). Pub. L. 96–92, § 17(a)(4), substituted ‘‘$250,000,000’’ for ‘‘$150,000,000’’. 1978—Subsec. (a). Pub. L. 95–384, § 20(a), substituted ‘‘$682,000,000 for the fiscal year 1978 and $674,300,000 for the fiscal year 1979’’ for ‘‘$677,000,000 for the fiscal year 1978’’. Subsec. (b). Pub. L. 95–384, § 20(b), substituted ‘‘$2,152,350,000 for the fiscal year 1978 and $2,085,500,000 for the fiscal year 1979, of which amount for each such year’’ for ‘‘$2,102,350,000 for the fiscal year 1978, of which’’. Subsec. (c). Pub. L. 95–384, § 20(c), substituted ‘‘fiscal year 1979’’ for ‘‘fiscal year 1978’’. Subsec. (d). Pub. L. 95–384, § 20(d), substituted ‘‘$150,000,000’’ for ‘‘$100,000,000’’. 1977—Subsec. (a). Pub. L. 95–92, § 19(1), substituted ‘‘$677,000,000 for the fiscal year 1978’’ for ‘‘$1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977’’. Subsec. (b). Pub. L. 95–92, § 19(2), substituted ‘‘$2,102,350,000 for the fiscal year 1978’’ for ‘‘$2,374,700,000 for the fiscal year 1976, of which not less than $1,500,000,000 shall be available only for Israel, and shall not exceed $2,022,100,000 for the fiscal year 1977’’. Subsec. (c). Pub. L. 95–92, § 19(3), substituted ‘‘year 1978’’ for ‘‘years 1976 and 1977’’ and struck out ‘‘each’’ before ‘‘such year’’. 1976—Subsec. (a). Pub. L. 94–329, § 210(a), substituted provisions authorizing appropriations not to exceed $1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977, for provisions au- thorizing appropriations not to exceed $405,000,000 for the fiscal year 1975. Subsec. (b). Pub. L. 94–329, § 210(b), substituted provi- sions setting out the foreign military sales credit ceil- ing of $2,374,700,000 for the fiscal year 1976, of which not less than $1,500,000,000 shall be available only for Israel, and $2,022,100,000 for the fiscal year 1977, of which not less than $1,000,000,000 shall be available only for Israel, for provisions setting out such ceiling of $872,500,000 for the fiscal year 1975, of which amount not less than $300,000,000 shall be available to Israel only, and struck out provisions relating to obligation of $100,000,000 for financing procurement of defense articles and services by Israel and for release of Israel from contractual li- ability to repay United States Government for the de- fense article and services so financed. Subsecs. (c), (d). Pub. L. 94–329, § 210(c)(1), added sub- secs. (c) and (d). 1974—Subsec. (a). Pub. L. 93–559, § 45(a)(6), substituted ‘‘$405,000,000 for the fiscal year 1975’’ for ‘‘$325,000,000 for the fiscal year 1974’’. Subsec. (b). Pub. L. 93–559, § 45(a)(7), substituted ‘‘$872,500,000 for the fiscal year 1975’’ for ‘‘$730,000,000 for the fiscal year 1974’’ and provided for obligation of $100,000,000 for financing procurement of defense arti- cles and defense services by Israel and for release of Israel from contractual liability to repay the United States Government for the defense articles and defense services so financed. 1973—Subsec. (a). Pub. L. 93–189, § 25(5), substituted provision authorizing appropriation of not more than $325,000,000 for the fiscal year 1974, for provision author- izing appropriation of not more than $400,000,000 for the fiscal year 1972. Subsec. (b). Pub. L. 93–189, § 25(6), substituted provi- sions setting out the foreign military sales credit ceil- ing of $730,000,000 for the fiscal year 1974, of which amount not less than $300,000,000 shall be made avail- able to Israel, for provisions setting out such ceiling of $550,000,000 for the fiscal year 1972, of which amount not less than $300,000,000 shall be made available to Israel, and such amount to exclude credits covered by guaran- ties issued under section 2764(b) of this title. 1972—Subsec. (a). Pub. L. 92–226, § 401(a), substituted provision authorizing appropriation of not more than $400,000,000 for the fiscal year 1972, for provisions au- thorizing appropriation of not more than $250,000,000 for each of the fiscal years 1970 and 1971. Subsec. (b). Pub. L. 92–226, § 401(b), substituted provi- sions setting out the foreign military sales credit ceil- ing of $550,000,000 for the fiscal year 1972, of which amount not less than $300,000,000 shall be made avail- able to Israel, for provisions setting out such ceiling of $340,000,000 for the fiscal years 1970 and 1971. 1971—Subsec. (a). Pub. L. 91–672, § 2(1), substituted provisions authorizing appropriation of not more than $250,000,000 for each of the fiscal years 1970 and 1971 for provisions authorizing appropriation of not more than $296,000,000 for the fiscal year 1969. Subsec. (b). Pub. L. 91–672, § 2(2), substituted provi- sions setting out the foreign military sales credit ceil- ing of $340,000,000 for the fiscal years 1970 and 1971 for provisions setting out such ceiling of $296,000,000 for the fiscal year 1969. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. CEILINGS ON LOANS FOR GREECE, SUDAN, AND TURKEY, FISCAL YEAR 1980; REPAYMENT PERIOD; GRACE PE- RIOD FOR REPAYMENT OF PRINCIPAL Pub. L. 96–92, § 17(b), Oct. 29, 1979, 93 Stat. 709, pro- vided that: ‘‘Of the principal amount of loans guaran- teed for the fiscal year 1980 under section 24 of the Arms Export Control Act [section 2764 of this title]— ‘‘(1) with respect to Turkey, not to exceed $50,000,000, ‘‘(2) with respect to Greece, not to exceed $42,000,000, and ‘‘(3) with respect to Sudan, not to exceed $25,000,000, shall be repaid in not less than 20 years, following a grace period of 10 years on repayment of principal.’’ Page 1230 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2772 § 2772. Repealed. Pub. L. 102–429, title I, § 112(e), Oct. 21, 1992, 106 Stat. 2195 Section, Pub. L. 90–629, ch. 3, § 32, Oct. 22, 1968, 82 Stat. 1325, prohibited certain military export financing by Export-Import Bank. § 2773. Restraint in arms sales to Sub-Saharan Africa It is the sense of the Congress that the prob- lems of Sub-Saharan Africa are primarily those of economic development and that United States policy should assist in limiting the development of costly military conflict in that region. There- fore, the President shall exercise restraint in selling defense articles and defense services, and in providing financing for sales of defense arti- cles and defense services, to countries in Sub- Saharan Africa. (Pub. L. 90–629, ch. 3, § 33, Oct. 22, 1968, 82 Stat. 1325; Pub. L. 91–672, § 3, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 92–226, pt. IV, § 401(c), (d), Feb. 7, 1972, 86 Stat. 32; Pub. L. 93–189, § 25(7)–(9), Dec. 17, 1973, 87 Stat. 731; Pub. L. 93–559, § 45(a)(8), Dec. 30, 1974, 88 Stat. 1815; Pub. L. 96–92, § 18, Oct. 29, 1979, 93 Stat. 709.) Editorial Notes AMENDMENTS 1979—Pub. L. 96–92 substituted provisions respecting restraint in arms sales to Sub-Saharan Africa for provi- sions imposing regional ceilings on foreign military sales to African countries and Presidential waiver and report thereof to Congress. 1974—Subsec. (a). Pub. L. 93–559, § 45(a)(8)(A), (B), re- pealed subsec. (a) which prescribed a ceiling of $150,000,000 in each fiscal year on the total amount of military assistance, credits, participations in credits, guaranteed loans, and loans and sales under section 7307 of Title 10, for Latin American countries, and re- designated subsec. (b) as (a). Subsec. (b). Pub. L. 93–559, § 45(a)(8)(B), (C), added sub- sec. (b) and redesignated former subsec. (b) as (a). 1973—Subsec. (a). Pub. L. 93–189, § 25(7), struck out ref- erence to cash sales pursuant to sections 2761 and 2762 of this title reference to exclusion of credits covered by guaranties issued under section 2764(b) of this title, and reference to the face amount of contracts of guaranty issued under section 2764(a) and (b) of this title, in- serted reference to the principal amount of loans guar- anteed under section 2764(a) of this title, and sub- stituted ‘‘$150,000,000’’ for ‘‘$100,000,000’’. Subsec. (b). Pub. L. 93–189, § 25(8), struck out reference to cash sales pursuant to sections 2761 and 2762 of this title, reference to exclusion of credits covered by guar- anties issued under section 2764(b) of this title, and ref- erence to the face amount of contracts of guaranty issued under section 2764(a) and (b) of this title, and in- serted reference to the principal amount of loans guar- anteed under section 2764(a) of this title. Subsec. (c). Pub. L. 93–189, § 25(9), struck out subsec. (c) which provided for Presidential waiver of limita- tions on amounts authorized under this section and set forth geographical limitations on the aggregate amounts of military assistance to be made available and percentage deviations from such ceiling amounts. 1972—Subsec. (a). Pub. L. 92–226, § 401(c), substituted ‘‘$100,000,000’’ for ‘‘$75,000,000’’. Subsec. (c). Pub. L. 92–226, § 401(d), substituted provi- sions for waiver of limitations when overriding require- ments of the national security of the United States jus- tify waiver for prior provisions for such a waiver when important to the security of the United States, re- quired a written report with reasons for findings and statement in detail of expenditures when in excess of applicable geographical limitations, and prescribed per- centage limitation for exceeding aggregate of geo- graphical ceiling limitation. 1971—Subsec. (a). Pub. L. 91–672, § 3(1), made fiscal year 1969 ceiling of $75,000,000 for Latin American coun- tries a continuing ceiling applicable in each fiscal year. Subsec. (b). Pub. L. 91–672, § 3(2), made fiscal year 1969 ceiling of $40,000,000 for African countries a continuing ceiling applicable in each fiscal year. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. § 2774. Foreign military sales credit standards The President shall establish standards and criteria for credit and guaranty transactions under sections 2763 and 2764 of this title in ac- cordance with the foreign, national security, and financial policies of the United States. (Pub. L. 90–629, ch. 3, § 34, Oct. 22, 1968, 82 Stat. 1325.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of the President under this section, with certain conditions, see section 1(h) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as a note under section 2751 of this title. Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637. § 2775. Foreign military sales to less developed countries (a) When the President finds that any eco- nomically less developed country is diverting development assistance furnished pursuant to the Foreign Assistance Act of 1961, as amended [22 U.S.C. 2151 et seq.], or sales under the Food for Peace Act, as amended [7 U.S.C. 1691 et seq.], to military expenditures, or is diverting its own resources to unnecessary military expenditures, to a degree which materially interferes with its development, such country shall be immediately ineligible for further sales and guarantees under sections 2761, 2762, 2763, and 2764 of this title, until the President is assured that such diver- sion will no longer take place. (b) Repealed. Pub. L. 93–559, § 45(a)(5), Dec. 30, 1974, 88 Stat. 1814. (Pub. L. 90–629, ch. 3, § 35, Oct. 22, 1968, 82 Stat. 1325; Pub. L. 93–559, § 45(a)(5), Dec. 30, 1974, 88 Stat. 1814; Pub. L. 110–246, title III, § 3001(b)(1)(A), (2)(T), June 18, 2008, 122 Stat. 1820, 1821.) Editorial Notes REFERENCES IN TEXT The Foreign Assistance Act of 1961, as amended, re- ferred to in subsec. (a), is Pub. L. 87–195, Sept. 4, 1961,