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10 U.S.C. § 4974 — Fees charged and collected
Federal law — U.S. Code and appendices · legal_authorities
Page 2937
TITLE 10—ARMED FORCES
§ 4974
Pub. L. 104–61, title VIII, § 8075, Dec. 1, 1995, 109 Stat.
665.
§ 4972. Transferability
A guarantee issued under this subchapter shall
be fully and freely transferable.
(Added Pub. L. 104–106, div. A, title XIII,
§ 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540a; re-
numbered § 4972, Pub. L. 116–283, div. A, title
XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
Editorial Notes
AMENDMENTS
2021—Pub. L. 116–283 renumbered section 2540a of this
title as this section.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
§ 4973. Limitations
(a) TERMS AND CONDITIONS OF LOAN GUARAN-
TEES.—In issuing a guarantee under this sub-
chapter for a medium-term or long-term loan,
the Secretary may not offer terms and condi-
tions more beneficial than those that would be
provided to the recipient by the Export-Import
Bank of the United States under similar cir-
cumstances in conjunction with the provision of
guarantees for nondefense articles and services.
(b) LOSSES ARISING FROM FRAUD OR MISREPRE-
SENTATION.—No payment may be made under a
guarantee issued under this subchapter for a loss
arising out of fraud or misrepresentation for
which the party seeking payment is responsible.
(c) NO
RIGHT
OF
ACCELERATION.—The Sec-
retary of Defense may not accelerate any guar-
anteed loan or increment, and may not pay any
amount, in respect of a guarantee issued under
this subchapter, other than in accordance with
the original payment terms of the loan.
(Added Pub.
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Page 2937
TITLE 10—ARMED FORCES
§ 4974
Pub. L. 104–61, title VIII, § 8075, Dec. 1, 1995, 109 Stat.
665.
§ 4972. Transferability
A guarantee issued under this subchapter shall
be fully and freely transferable.
(Added Pub. L. 104–106, div. A, title XIII,
§ 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540a; re-
numbered § 4972, Pub. L. 116–283, div. A, title
XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
Editorial Notes
AMENDMENTS
2021—Pub. L. 116–283 renumbered section 2540a of this
title as this section.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
§ 4973. Limitations
(a) TERMS AND CONDITIONS OF LOAN GUARAN-
TEES.—In issuing a guarantee under this sub-
chapter for a medium-term or long-term loan,
the Secretary may not offer terms and condi-
tions more beneficial than those that would be
provided to the recipient by the Export-Import
Bank of the United States under similar cir-
cumstances in conjunction with the provision of
guarantees for nondefense articles and services.
(b) LOSSES ARISING FROM FRAUD OR MISREPRE-
SENTATION.—No payment may be made under a
guarantee issued under this subchapter for a loss
arising out of fraud or misrepresentation for
which the party seeking payment is responsible.
(c) NO
RIGHT
OF
ACCELERATION.—The Sec-
retary of Defense may not accelerate any guar-
anteed loan or increment, and may not pay any
amount, in respect of a guarantee issued under
this subchapter, other than in accordance with
the original payment terms of the loan.
(Added Pub. L. 104–106, div. A, title XIII,
§ 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540b; re-
numbered § 4973, Pub. L. 116–283, div. A, title
XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
Editorial Notes
AMENDMENTS
2021—Pub. L. 116–283 renumbered section 2540b of this
title as this section.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
§ 4974. Fees charged and collected
(a) EXPOSURE FEES.—The Secretary of Defense
shall charge a fee (known as ‘‘exposure fee’’) for
each guarantee issued under this subchapter.
(b) AMOUNT OF EXPOSURE FEE.—To the extent
that the cost of the loan guarantees under this
subchapter is not otherwise provided for in ap-
propriations Acts, the fee imposed under sub-
section (a) with respect to a loan guarantee
shall be fixed in an amount that is sufficient to
meet potential liabilities of the United States
under the loan guarantee.
(c) PAYMENT TERMS.—The fee under subsection
(a) for each guarantee shall become due as the
guarantee is issued. In the case of a guarantee
for a loan which is disbursed incrementally, and
for which the guarantee is correspondingly
issued incrementally as portions of the loan are
disbursed, the fee shall be paid incrementally in
proportion to the amount of the guarantee that
is issued.
(d) ADMINISTRATIVE FEES.—(1) The Secretary
of Defense shall charge a fee for each guarantee
issued under this subchapter to reflect the addi-
tional administrative costs of the Department of
Defense that are directly attributable to the ad-
ministration of the program under this sub-
chapter. Such fees shall be credited to a special
account in the Treasury. Amounts in the special
account shall be available, to the extent and in
amounts provided in appropriations Acts, for
paying the costs of administrative expenses of
the Department of Defense that are attributable
to the loan guarantee program under this sub-
chapter.
(2)(A) If for any fiscal year amounts in the spe-
cial account established under paragraph (1) are
not available (or are not anticipated to be avail-
able) in a sufficient amount for administrative
expenses of the Department of Defense for that
fiscal year that are directly attributable to the
administration of the program under this sub-
chapter, the Secretary may use amounts cur-
rently available for operations and maintenance
for
Defense-wide
activities,
not
to
exceed
$500,000 in any fiscal year, for those expenses.
(B) The Secretary shall, from funds in the spe-
cial account established under paragraph (1), re-
plenish operations and maintenance accounts
for amounts expended under subparagraph (A) as
soon as the Secretary determines practicable.
(Added Pub. L. 104–106, div. A, title XIII,
§ 1321(a)(1), Feb. 10, 1996, 110 Stat. 476, § 2540c;
amended Pub. L. 106–398, § 1 [[div. A], title X,
§ 1081(a)], Oct. 30, 2000, 114 Stat. 1654, 1654A–284;
renumbered § 4974, Pub. L. 116–283, div. A, title
XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
Editorial Notes
AMENDMENTS
2021—Pub. L. 116–283 renumbered section 2540c of this
title as this section.
2000—Subsec. (d). Pub. L. 106–398 designated existing
provisions as par. (1) and added par. (2).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106–398, § 1 [[div. A], title X, § 1081(b), (c)], Oct.
30, 2000, 114 Stat. 1654, 1654A–284, provided that:
Page 2938
TITLE 10—ARMED FORCES
§ 4975
‘‘(b) EFFECTIVE
DATE.—Paragraph (2) of section
2540c(d) of title 10, United States Code [now 10 U.S.C.
4974(d)(2)], as added by subsection (a), shall take effect
on October 1, 2000.
‘‘(c) LIMITATION PENDING SUBMISSION OF REPORT.—The
Secretary of Defense may not exercise the authority
provided by paragraph (2) of section 2540c(d) of title 10,
United States Code [now 10 U.S.C. 4974(d)(2)], as added
by subsection (a), until the Secretary submits to Con-
gress a report on the operation of the Defense Export
Loan Guarantee Program under [former] subchapter V
of chapter 148 of title 10, United States Code [see chap-
ter 385 of this title]. The report shall include the fol-
lowing:
‘‘(1) A discussion of the effectiveness of the loan
guarantee program in furthering the sale of United
States defense articles, defense services, and design
and construction services to nations that are speci-
fied in section 2540(b) of such title [now 10 U.S.C.
4971(b)], to include a comparison of the loan guar-
antee program with other United States Government
programs that are intended to contribute to the sale
of United States defense articles, defense services,
and design and construction services and other com-
parisons the Secretary determines to be appropriate.
‘‘(2) A discussion of the requirements and resources
(including personnel and funds) for continued admin-
istration of the loan guarantee program by the De-
fense Department, to include—
‘‘(A) an itemization of the requirements nec-
essary and resources available (or that could be
made available) to administer the loan guarantee
program for each of the following entities: the De-
fense Security Cooperation Agency, the Depart-
ment of Defense International Cooperation Office,
and other Defense Department agencies, offices, or
activities as the Secretary may specify; and
‘‘(B) for each such activity, agency, or office, a
comparison of the use of Defense Department per-
sonnel exclusively to administer, manage, and over-
see the program with the use of contracted com-
mercial entities to administer and manage the pro-
gram.
‘‘(3) Any legislative recommendations that the Sec-
retary believes could improve the effectiveness of the
program.
‘‘(4) A determination made by the Secretary of De-
fense indicating which Defense Department agency,
office, or other activity should administer, manage,
and oversee the loan guarantee program to increase
sales of United States defense articles, defense serv-
ices, and design and construction services, such de-
termination to be made based on the information and
analysis provided in the report.’’
§ 4975. Definitions
In this subchapter:
(1) The terms ‘‘defense article’’, ‘‘defense
services’’, and ‘‘design and construction serv-
ices’’ have the meanings given those terms in
section 47 of the Arms Export Control Act (22
U.S.C. 2794).
(2) The term ‘‘cost’’, with respect to a loan
guarantee, has the meaning given that term in
section 502 of the Congressional Budget and
Impoundment Control Act of 1974 (2 U.S.C.
661a).
(Added Pub. L. 104–106, div. A, title XIII,
§ 1321(a)(1), Feb. 10, 1996, 110 Stat. 477, § 2540d; re-
numbered § 4975, Pub. L. 116–283, div. A, title
XVIII, § 1873(b), (c)(1), Jan. 1, 2021, 134 Stat. 4290.)
Editorial Notes
AMENDMENTS
2021—Pub. L. 116–283 renumbered section 2540d of this
title as this section.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2021 AMENDMENT
Amendment by Pub. L. 116–283 effective Jan. 1, 2022,
with additional provisions for delayed implementation
and applicability of existing law, see section 1801(d) of
Pub. L. 116–283, set out as a note preceding section 3001
of this title.
SUBCHAPTER
II—CRITICAL
INFRASTRUC-
TURE PROTECTION LOAN GUARANTEES
Sec.
4981.
Establishment of loan guarantee program.
4982.
Fees charged and collected.
4983.
Administration.
4984.
Transferability, additional limitations, and
definition.
4985.
Reports.
§ 4981. Establishment of loan guarantee program
(a) ESTABLISHMENT.—In order to meet the na-
tional security objectives in section 4811(a) of
this title, the Secretary of Defense shall estab-
lish a program under which the Secretary may
issue guarantees assuring lenders against losses
of principal or interest, or both principal and in-
terest, for loans made to qualified commercial
firms to fund, in whole or in part, any of the fol-
lowing activities:
(1) The improvement of the protection of the
critical infrastructure of the commercial
firms.
(2) The refinancing of improvements pre-
viously made to the protection of the critical
infrastructure of the commercial firms.
(b) QUALIFIED COMMERCIAL FIRMS.—For pur-
poses of this section, a qualified commercial
firm is a company or other business entity (in-
cluding a consortium of such companies or other
business entities, as determined by the Sec-
retary) that the Secretary determines—
(1) conducts a significant level of its re-
search, development, engineering, and manu-
facturing activities in the United States;
(2) is a company or other business entity the
majority ownership or control of which is by
United States citizens or is a company or
other business of a parent company that is in-
corporated in a country the government of
which—
(A) encourages the participation of firms
so owned or controlled in research and devel-
opment consortia to which the government
of that country provides funding directly or
provides funding indirectly through inter-
national organizations or agreements; and
(B) affords adequate and effective protec-
tion for the intellectual property rights of
companies
incorporated
in
the
United
States;
(3) provides technology products or services
critical to the operations of the Department of
Defense;
(4)
meets
standards
of
prevention
of
cyberterrorism applicable to the Department
of Defense; and
(5) agrees to submit the report required
under section 4985 of this title.
(c) LOAN LIMITS.—The maximum amount of
loan principal guaranteed during a fiscal year
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment.—** In order to meet the national security objectives in [section 4811(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section4811/a&num=0&edition=prelim), the Secretary of Defense shall establish a program under which the Secretary may issue guarantees assuring a lender against losses of principal or interest, or both principal and interest, arising out of the financing of the sale or long-term lease of defense articles, defense services, or design and construction services to a country referred to in subsection (b).
**(b) Covered Countries.—** The authority under subsection (a) applies with respect to the following countries:
(1) A member nation of the North Atlantic Treaty Organization (NATO).
(2) A country designated as of March 31, 1995, as a major non-NATO ally pursuant to [section 2350a(i)(3) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title10-section2350a/i/3&num=0&edition=prelim), as in effect on that date.
(3) A country in Central Europe that, as determined by the Secretary of State—
(A) has changed its form of national government from a nondemocratic form of government to a democratic form of government since October 1, 1989; or
(B) is in the process of changing its form of national government from a nondemocratic form of government to a democratic form of government.
(4) A noncommunist country that was a member nation of the Asia Pacific Economic Cooperation (APEC) as of October 31, 1993.
**(c) Authority Subject to Provisions of Appropriations.—** The Secretary may guarantee a loan under this subchapter only to such extent or in such amounts as may be provided in advance in appropriations Acts.
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4971
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Federal law — U.S. Code and appendices · legal_authorities
Page 2936
TITLE 10—ARMED FORCES
§ 4971
Amendment by section 1872(a)(11) of Pub. L. 116–283
effective Jan. 1, 2022, with additional provisions for de-
layed implementation and applicability of existing law,
see section 1801(d) of Pub. L. 116–283, set out as a note
preceding section 3001 of this title.
EFFECTIVE DATE
Pub. L. 101–510, div. A, title VIII, § 814(b), Nov. 5, 1990,
104 Stat. 1597, provided that: ‘‘Section 2417 of title 10,
United States Code [now 10 U.S.C. 4961], as added by
subsection (a), shall apply with respect to fiscal year
1991 and each fiscal year thereafter.’’
CHAPTER 389—LOAN GUARANTEE
PROGRAMS
Subchapter
Sec.
I.
Defense Export Loan Guarantees ..........
4971
II.
Critical Infrastructure Protection Loan
Guarantees .........................................
4981
SUBCHAPTER I—DEFENSE EXPORT LOAN
GUARANTEES
Sec.
4971.
Establishment of loan guarantee program.
4972.
Transferability.
4973.
Limitations.
4974.
Fees charged and collected.
4975.
Definitions.
§ 4971. Establishment of loan guarantee program
(a) ESTABLISHMENT.—In order to meet the na-
tional security objectives in section 4811(a) of
this title, the Secretary of Defense shall estab-
lish a program under which the Secretary may
issue guarantees assuring a lender against losses
of principal or interest, or both principal and in-
terest, arising out of the financing of the sale or
long-term lease of defense articles, defense serv-
ices, or design and construction services to a
country referred to in subsection (b).
(b) COVERED COUNTRIES.—The authority under
subsection (a) applies with respect to the fol-
lowing countries:
(1) A member nation of the North Atlantic
Treaty Organization (NATO).
(2) A country designated as of March 31, 1995,
as a major non-NATO ally p
Source: Supplied 2024 U.S. Code historical extraction · 10 U.S.C. § 4971
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Exposure Fees.—** The Secretary of Defense shall charge a fee (known as “exposure fee”) for each guarantee issued under this subchapter.
**(b) Amount of Exposure Fee.—** To the extent that the cost of the loan guarantees under this subchapter is not otherwise provided for in appropriations Acts, the fee imposed under subsection (a) with respect to a loan guarantee shall be fixed in an amount that is sufficient to meet potential liabilities of the United States under the loan guarantee.
**(c) Payment Terms.—** The fee under subsection (a) for each guarantee shall become due as the guarantee is issued. In the case of a guarantee for a loan which is disbursed incrementally, and for which the guarantee is correspondingly issued incrementally as portions of the loan are disbursed, the fee shall be paid incrementally in proportion to the amount of the guarantee that is issued.
**(d) Administrative Fees.—**
(1) The Secretary of Defense shall charge a fee for each guarantee issued under this subchapter to reflect the additional administrative costs of the Department of Defense that are directly attributable to the administration of the program under this subchapter. Such fees shall be credited to a special account in the Treasury. Amounts in the special account shall be available, to the extent and in amounts provided in appropriations Acts, for paying the costs of administrative expenses of the Department of Defense that are attributable to the loan guarantee program under this subchapter.
(2)
(A) If for any fiscal year amounts in the special account established under paragraph (1) are not available (or are not anticipated to be available) in a sufficient amount for administrative expenses of the Department of Defense for that fiscal year that are directly attrib
Source: Supplied U.S. Code snapshot — release unconfirmed · 10 U.S.C. § 4974
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Federal law — U.S. Code and appendices · legal_authorities
At the written request of a Senator, the Director shall, to the extent practicable, prepare an estimate of the direct costs of a Federal intergovernmental mandate contained in an amendment of such Senator.
Source: Supplied U.S. Code snapshot — release unconfirmed · 2 U.S.C. § 661a
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Federal law — U.S. Code and appendices · legal_authorities
Page 212
TITLE 2—THE CONGRESS
§ 661
1 So in original. Probably should be capitalized.
pared to the authorization level for the last
year in which authorization of appropriations
is already provided.
(Pub. L. 93–344, title IV, § 428, as added Pub. L.
104–4, title I, § 101(a)(2), Mar. 22, 1995, 109 Stat.
59.)
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE
Section effective Jan. 1, 1996, or on the date 90 days
after appropriations are made available as authorized
under section 1516 of this title, whichever is earlier, and
applicable to legislation considered on and after such
date, see section 110 of Pub. L. 104–4, set out as a note
under section 1511 of this title.
SUBCHAPTER III—CREDIT REFORM
§ 661. Purposes
The purposes of this subchapter are to—
(1) measure more accurately the costs of
Federal credit programs;
(2) place the cost of credit programs on a
budgetary basis equivalent to other Federal
spending;
(3) encourage the delivery of benefits in the
form most appropriate to the needs of bene-
ficiaries; and
(4) improve the allocation of resources
among credit programs and between credit and
other spending programs.
(Pub. L. 93–344, title V, § 501, as added Pub. L.
101–508, title XIII, § 13201(a), Nov. 5, 1990, 104
Stat. 1388–610.)
Editorial Notes
PRIOR PROVISIONS
A prior section 661, Pub. L. 93–344, title VI, § 606, July
12, 1974, 88 Stat. 325, directed that Budget Committees
of House and Senate study, on a continuing basis, any
provisions of law which exempt agencies or programs
from inclusion in the budget and make recommenda-
tions from time to time with regard to terminating or
modifying such provisions, prior to repeal by Pub. L.
99–177, title II, §§ 223, 275(a)(1), Dec. 12, 1985, 99 Stat.
1060, 1100, effective Dec. 12
Source: Supplied 2024 U.S. Code historical extraction · 2 U.S.C. § 661a
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Federal law — U.S. Code and appendices · legal_authorities
For purposes of this chapter, the term—
(1) “excess defense article” has the meaning provided by [section 2403(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2403/g&num=0&edition=prelim);
(2) “value” means, in the case of an excess defense article, except as otherwise provided in [section 2761(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2761/a&num=0&edition=prelim), not less than the greater of—
(A) the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying such article, plus the scrap value; or
(B) the market value, if ascertainable;
(3) “defense article”, except as provided in paragraph (7) of this section, means, with respect to a sale or transfer by the United States under the authority of this chapter or any other foreign assistance or sales program of the United States—
(A) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war,
(B) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of making military sales,
(C) any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage, construction, transportation, operation, or use of any article listed in this paragraph, and
(D) any component or part of any article listed in this paragraph,
but does not include merchant vessels or (as defined by the Atomic Energy Act of 1954 [[42 U.S.C. 2011](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section2011&num=0&edition=prelim) et seq.]) source material (except uranium depleted in the isotope 235 which is incorporated in defense articles so
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2794
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Federal law — U.S. Code and appendices · legal_authorities
Page 1272
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2793
1977—Subsec. (b). Pub. L. 95–92 substituted provisions
relating to criteria for recovery of charges for adminis-
trative expenses calculated under section 2761(e)(1)(A)
of this title, for provisions relating to reimbursement
from amounts received for sales under sections 2761 and
2762 of this title of administrative expenses incurred by
a United States government department or agency in
carrying out functions under this chapter for the ben-
efit of any foreign country.
1976—Pub. L. 94–329 designated existing provisions as
subsec. (a) and added subsec. (b).
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.
§ 2793. Other provisions unaffected
No provision of this chapter shall be construed
as modifying in any way the provisions of the
Atomic Energy Act of 1954, as amended [42
U.S.C. 2011 et seq.], or section 8677 of title 10.
(Pub. L. 90–629, ch. 4, § 44, Oct. 22, 1968, 82 Stat.
1327; Pub. L. 115–232, div. A, title VIII, § 809(f),
Aug. 13, 2018, 132 Stat. 1842.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in text, was in the original
‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82
Stat. 1321, which is classified principally to this chap-
ter. For complete classification of this Act to the Code,
see Short Title note set out under section 2751 of this
title and Tables.
The Atomic Energy Act of 1954, as amended, referred
to in text, is act Aug. 1, 1946, ch. 724, as add
Source: Supplied 2024 U.S. Code historical extraction · 22 U.S.C. § 2794
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